Good morning and thank you for joining the Tetra Tech Earnings Call. By now, you should have received a copy of the press release. If you have not, please contact the company's corporate office at 626-351-4664. As a reminder, Tetra Tech is also simulcasting this presentation with slides in the Investors section of its website at www.tetratech.com. This call is being recorded at the request of Tetra Tech, and this broadcast is the copyrighted property of Tetra Tech. Any rebroadcast of this information in whole or part without the prior written permission of Tetra Tech is prohibited. With us today from management are Dan Batrack, Chairman and Chief Executive Officer; and Steve Burdick, Chief Financial Officer. They will provide a brief overview of the results and will then open up the call for questions. I would like to direct your attention to the Safe Harbor statement on page 1 of today's presentation. Today's discussion contains forward-looking statements about future growth and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including the risks described in Tetra Tech's periodic reports filed with the SEC. Except as required by law, Tetra Tech takes no obligation to update its forward-looking statements. In addition, since management will be presenting some non-GAAP financial measures as references, the appropriate GAAP financial reconciliations are posted in the Investors section of Tetra Tech's website. At this time, I would like to inform you that all participants are in a listen-only mode. At the request of the company, we will open the conference up for questions-and-answers after the presentation. With that, I would now like to turn the call over to Dan Batrack. Please go ahead, Mr. Batrack.

Great. Thank you very much, Hillary. And good morning and welcome to our fourth quarter and fiscal year 2018 earnings conference call. We had a very strong fourth quarter hitting new all-time highs for our ongoing operating income and earnings per share with record orders driving backlog to over $2.6 billion for the first time ever for the company. For the full 2018 fiscal year, we also achieved new records for revenue, net revenue, operating income and earnings per share, and for the first time generating over $2.9 billion in revenue. Strong orders that drove our backlog to these record levels in the fourth quarter were broad-based across our markets including government, commercial, state and local and our international work. It's this momentum and the strong demand for Tetra Tech services that gives us excellent visibility for 2019 and beyond. We are focused on the future and confident that the leading science solutions that we provide for essential services in water, environment and infrastructure are highly differentiated and highly valued in the markets that we serve. I'll now provide an overview of our quarterly and annual results and also provide a business outlook for us for 2019, while Steve Burdick, our Chief Financial Officer, will provide additional details on our financial performance and capital allocation for the company. We had a very strong quarter achieving new record highs for operating income and earnings per share for ongoing operations. For our fourth quarter, our revenue from ongoing operations was $747 million, up 3% from the prior year. Our net revenue was $564 million, up 6% from the prior year which generated an operating income of $62 million, up 9% from last year, resulting in a diluted earnings per share of $0.75 for the quarter, which is up 19% from the prior…

Okay. Thank you, Dan. So I do want to point out that in the appendix of this earnings presentation, you can find a full reconciliation of our GAAP results presented on this financial overview slide if you're following along to our ongoing results, which Dan addressed previously. And now, turning to our financial results for the quarter. As Dan just highlighted, revenue, operating income and EPS for the fourth quarter 2018 were quite strong. The fiscal 2018 fourth quarter revenue of $739 million and net revenue of $553 million, increased when compared to the revenue of $735 million and net revenue of $534 million in the fourth quarter of fiscal 2017. These revenue increases came from our continued focus on high-end differentiated services, which do have higher margins. In addition, after you take into account the third quarter divestiture of our field services operations, the relative fourth quarter increases were higher with revenue up 5% over last year and net revenue up 8%. From an ongoing perspective, we saw an increase in operating income of 9% and EPS of 19% compared to last year. Our GAAP results for revenue, operating income and earnings per share includes a $0.16 non-cash charge due to a settlement of a claim, which is highlighted and reconciled in the appendix of this presentation. This was an old claim on a fixed price contract related to a multi-year construction project, which had been completed in late 2014. This non-cash fourth quarter charge resulted in a final resolution that provided a net cash receipt for receivables owed to us. Now for the fourth quarter, cash flow provided by operations totaled $109.4 million. The fourth quarter is typically a strong cash generator, which is not only the case this year, but I want to point out, this was…

Great. Thank you very much, Steve. As we enter fiscal year 2019, we expect strong growth across all four of our major customer sectors. In fiscal year 2019, we expect Tetra Tech's international revenue to grow at a 10% rate. Our international growth will be driven by regional infrastructure services and engineering design work, primarily in Australia and Canada. We expect our U.S. Federal work to be almost a third of our overall business and grow at a 5% rate for the year. This increase in our federal work is supported by our strong backlog, which will convert to a revenue for our civilian, Department of Defense, and our international development related services. We expect our U.S. state and local work to continue to be a growth market for us, overall being up 5% year-on-year, even with the difficult comparisons with this last year's extraordinary hurricane events. That actually contributed quite significantly to our revenues. Our underlying municipal water infrastructure work is expected to be up approximately 15% year-over-year, continuing on its industry-leading performance in this market. And finally, our U.S. Commercial work is expected to grow at a 5% rate with increases in revenues for industrial water treatment, environmental clean-up programs and specialized renewable energy services. I'd like to give a brief highlight to some of these end markets and types of projects that are actually driving our growth as we go into 2019. And I like to start with the U.S. Federal government. The U.S. Federal government is a major long-term client of Tetra Tech's. We think of this client overall in three major areas, the first being the Department of Defense, the second being civilian agencies, and the third being the U.S. State Department or its component of the U.S. Agency for International Development. For the Department…

The question-and-answer session will begin now. The first question comes from Tahira Afzal with KeyBanc.

Hi, Dan. Congratulations to you and your team on another good quarter.

Thank you very much, Tahira.

So, Dan, I know that you've set guidance conservatively that's worked out pretty well for you and do the areas that seem sensibly conservative are around some of the storm revenues and it come back in oil and gas. Can you at the same timeframe what those opportunities could be if we did see those emerge and help your numbers into next year?

Well, I think you have identified the two areas that we have been cautious, you could say conservative going into 2019. I'm going to work on these backwards as you listed them between storm and oil and gas. Oil and gas, we've been very cautious with respect to the timing and the magnitude of the curve (23:13) of the markets. We have seen it a bit more consistent here in the United States. So we have seen our U.S. oil and gas work which we primarily are focused on the midstream continue to increase at a nice steady predictable rate. And so we have built that predictability and forecast into our plan. But the Canadian oil and gas work, we've seen actually be quite slow. We've actually seen a number of areas where it's become more competitive. Price points have become more aggressive, in other words, how low will you go? And we're not focused on chasing it to the bottom. And so we have elected to remain quite disciplined, which has left it much more uncertain as to the contribution in 2019. So that's primarily – we've not included much for the Canadian oil and gas recovery. Now, certainly if that did recover, and if you looked at the contribution, if you went back four years or five years, no doubt, it was structurally a different time, but it contributed probably approximately $200 million in revenue and a significant amount in earnings. And in fact, if that came back to even half that level it would push our performance to above the high end of our own guidance, just that one item, and primarily associated with the Canadian oil and gas. But we do remain cautious. You're right. We've been conservative on it. And I like to use the…

Got it. Then while you were speaking, I was doing the math. Seems like you've been conservative, comfortably 15% plus versus the midpoint of your guidance. Would that be kind of the right way to think about it?

You could think of it that way. We certainly had people do that calculation. And as always, we're going to be very focused on meeting or beating what we're estimating. But these are increases, as I shared during my prepared remarks, in every one of our end markets. So I certainly wouldn't call it being overly cautious, because we are forecasting increases in all of our end markets. But I do believe that some could be quite strong, given some favorable activities during the first quarter in the year.

The next question is from Ryan Connors with Boenning & Scattergood. Ryan Michael Connors - Boenning & Scattergood: Great. Thanks for taking my question. I wanted to dive into the backlog just a little bit, Dan. You kind of – you danced around this in a couple different ways. But I wonder if you could just more directly address the composition of the backlog in terms of the mix and the type of margin profile we should expect as that gets delivered.

The backlog has generally reflected the revenues that we have. So take a look at the partitioning of the revenues per year. Backlog would follow it with a bit more emphasis on our federal government. So while federal government is about 30%, backlog is a bit more than that. And commercial, since it's a bit shorter in some instances, almost a book and burn on the commercial, it would be a bit smaller. So if you use the – if you took about a 15% increase on the 30%, so if you put about 35%, 37% on government and then you took the same reduction on commercial, that would be a reflection of the partitioning or the makeup of the backlog. As far as the overall... Ryan Michael Connors - Boenning & Scattergood: Got it. Okay.

Yeah. And as far as the overall margins embedded, we had a really good year in the Government Services Group, no doubt capped by the fourth quarter. But I would say, on a good year or I should kind of – I hate to call it middle of the road. Maybe middle of the road for us would be a good year by many standards. But about a 13% margin is about what our forecast would be in the Government Services Group. And that would be embedded in the backlog, which is what causes us to actually predict or forecast or guide our revenue and income numbers from the backlog. CIG, or the Commercial International, while it was lower this last year in 2018, we actually think it will move into double digits and be between 10% and 11%. And that's what's embedded in the backlog, and that's what we would expect to achieve in 2019. Ryan Michael Connors - Boenning & Scattergood: Got it. That's exactly what I was looking for. Great detail. My other question just has to do with you talk about the sustainable design. Obviously, that discipline is growing fast. You talked about tripling year-over-year. But can you size that in any way for us in terms of when that becomes – starts to really move the needle? And then also, my understanding of that is that really is across your different customers, that type of activity happening everywhere? Or is that just more of a commercial thing?

It's mostly commercial right now. We have some state and local, but it's really been mostly commercial. And we've grown it quickly, I think, on a run rate, because we're still picking up to this level. So on a run rate, if you used our last quarter, we're probably getting closer to about $200 million a year. So that's sort of the number. It's beginning to get significant. So that's on a total – and by the way, that's not on a net revenue, that's on a total revenue basis. But on $3 billion so, what, about 7%. So it's actually getting to the point of contributing. It is higher margins. And we are just beginning to actually move that capability into our federal clients, because we have plenty of contract capacity. We do think the margins would moderate a bit under the federal rate structures that we have, being cost plus and some T&M that are established that are very low risk with respect to the federal client. So we would have top line growth that could actually be increased significantly. And of course, there might be some trade-off or moderation on margin. So that's a trade-off that we're going to take a look at. But we would not grow the top line at the federal level at the expense of the growth that we're having on the commercial. So it would be incremental on top. So I'd like to see it this next year get to be 10% of the entire company's business, which would forecast a 50% increase from $200 million to $300 million, would put it at about 10%. Might – I don't know if we're going to hit that in 2019, but certainly we're headed that direction. Ryan Michael Connors - Boenning & Scattergood: Got it. And then one last one from me. Just talking about, I guess more of a risk factor but what – obviously, a lot of talk about accelerating wage growth in the U.S. economy. Your assets walk out the doors every night. It's a people business. So talk about how you're managing against that in terms of costs.

It's a great question. With unemployment here in the U.S. down to around 3%, we're really sensitive to it. But it is an interesting market in that we have not seen appreciable wage pressures by the professionals in the categories that we're working in. We've actually seen a net – I don't know what I'll call – migration into the company through the disruption and consolidation of a lot of the other competitors and peers in the marketplace. It may be a short-term effect of all this consolidation. I think those that we've seen in – as consolidators, I'll use two words. We're consolidating and then we're initiating cost synergies, which is code for we're getting rid of a lot of folks which makes a huge amount of technical staff available. And it is interesting the best and brightest are not the ones being let go but the ones leaving on their own and going to another location that they would look – they'd be more stable. And we've been a huge recipient of that. And that's obviously helped, I think, as far as supply and demand create more supply, so it hasn't actually caused increase in our direct cost base. So we are sensitive to it but it's not been a big issue. And just one note, while salaries are what you're referring to, much of Tetra Tech's compensation at the senior engineer and management executive level is around performance and equity participation. And so when you take salary while we would be at market, when you actually add in performance compensation annually which is bonus and participation in equity. Coming to Tetra Tech, generally puts them at the best spot as far as overall compensation in the marketplace. Ryan Michael Connors - Boenning & Scattergood: Got it. Okay. That's good stuff. Thanks. Thanks again for your time.

Great. Thank you, Ryan.

Your next question comes from Andy Wittmann with Baird. Andrew John Wittmann - Robert W. Baird & Co., Inc.: Super. Great. Thanks for taking my questions. I'm going to – I wanted to dig in a little bit on the cash and the balance sheet here. Usually, when you guys settle a claim like it was recognized in this quarter in the CIG segment, there's usually some compromise and you guys get cash. I think, Steve, you might have mentioned that in your prepared remarks. Did you quantify that and was that received? Was that cash on that claim settlement received at the end of the fourth quarter or is that still part of the 85 days that's outstanding?

It was – so to answer your question, it was part of the 85 days outstanding at the end of the quarter. We did resolve the issue in the fourth quarter, and we did receive the cash in the first quarter. Andrew John Wittmann - Robert W. Baird & Co., Inc.: Okay. And was it – how did it relate to the 10.6 charge? Was it – can you give us like the size of that?

We actually received – yeah. So the charge was the difference between what we had booked and what we actually received. So we did receive – it'll be somewhere between $15 million and $20 million. Andrew John Wittmann - Robert W. Baird & Co., Inc.: Okay. Great. And then just – I guess as it relates to that and the other 10 days of the $80 million opportunity, I think last time you guys commented on this, a lot of that was tied up in the RCM segment to kind of wind down. You guys are getting real close there. Maybe, Steve, just an update on kind of the negotiations on the RCM tied-up cash and do you think that fiscal 2019 is the year where we get some of that in there?

So I think we have – for the RCM segment, we have taken our backlog down to zero. We have wound down the projects that were there for the last four years or five years finally. And we do have a handful, maybe six contracts that are still outstanding where we do have claims out there. We would like to resolve those sooner versus later. But as you see with this last claim that was just resolved, it took over four years to resolve. And so these things will – they are and we are focused on resolving those. We'd like to resolve them in the fall in the next year. But in all probability, they'll probably go beyond that. Andrew John Wittmann - Robert W. Baird & Co., Inc.: Okay. Well, despite that, your leverage levels still kind of well under your targets now. You didn't – it was kind of conspicuous that this is the first quarter where the company didn't come in and do the normal $25 million in stock buyback. Dan, I'm going to look to you for a little bit of coverage here. I mean, obviously, you increased the size that kind of gives us a sense that the board wants you to do a little bit more. You didn't in the quarter. What does that tell us about kind of what you're thinking in the quarter and why didn't you participate when it had been so programmatic in the past and how do we think about this going forward? And maybe even more specifically, I mean, with the company kind of deleveraging, returning over 50% of the cash flow this year, why isn't that the template to return more like 50% rather than the 30% on a go-forward basis?

Well, I think, first of all, with respect to the deployment of the last bit of the previous $200 million, it was just a matter of timing with respect to renewing the $200 million. So, we were simply focused on both the size and the timeframe that would be approved by the board. So, it should be nothing unusual. We have been returning. We've had two sets that we essentially have completed of $200 million buyback and have just entered into the third one. Essentially, we've been buying back on a linear basis $25 million a quarter for essentially will be moving into our fifth year. And I would expect no material change there. But I will say that the reason we wouldn't make that number substantially higher, as far as an announcement at the outset is we do want to keep the flexibility to invest our capital to growing the company and maintaining and expanding our number one positions not just here in the United States, not just in Canada, moving very quickly in Australia to those positions, but there's other geographies and technical service areas that we would like to bring on the best and brightest in the entire industry. And what that means is acquisitions and M&A. And so we do want to keep plenty of flexibility. We can we can deploy this $200 million that was just announced on – at this call and our earnings release yesterday. And still do a substantial sizable amount of M&A to keep us at the forefront in the markets that we compete in. So our leverage is down to 0.5. I know our target is between 1 and 2, with great comfort even between 2 and 3, which we haven't seen, I guess, ever. But we'd be quite comfortable there because those types of leverages would just be temporal as we move into a more competitive position into even bigger markets. So don't expect to see it at 0.5. If for some reason the right acquisitions at the right disciplined price point are not available, look for us to use buyback as the lever that would return more capital to the shareholders. But the reason for that 30% at least coming into the year is to give us flexibility to deploy that capital for other firms to come join us. Andrew John Wittmann - Robert W. Baird & Co., Inc.: Okay. Appreciate the commentary on all of that and how you're thinking about it. I think I'll leave it there and thank you very much.

Yeah. Thank you, Andy.

The next question is from Noelle Dilts with Stifel. Noelle Christine Dilts - Stifel, Nicolaus & Co., Inc.: Hi, thanks. Good morning.

Good morning. Noelle Christine Dilts - Stifel, Nicolaus & Co., Inc.: Just expanding on that last point around your interest in potential M&A. Could you expand upon some of the geographies that are of most interest to you as well as some of the market verticals? And then, given your leverage position at this point, would you be looking to do sort of a bigger deal, à la coffee, (39:52) or more of kind of roll-up of smaller operations?

Yes. So as you just mentioned, there's two areas that we focus on. One is geographic expansion; two, support existing clients that we have that are performing work and asking us to perform work in new areas that we don't have a material presence or to expand to offer services into large markets that were not, so that's the geographic expansion and the other is expanding verticals for services where we're at. So let me start with the more niche, niche-y, which is the rollup, so services that we would like to expand here in the United States where we have a significant presence. We're over 300 offices in the U.S. We have over 9,000 people in the U.S., providing high-end consulting and engineering and there's areas that we need to expand and that will make us even more competitive. We've done very, very well on the emergency response and being really a market leader on the front-end of the consulting and evaluation of the disaster activities sort of from the one month to one year after event takes place. But we really would like to expand and follow that with our clients all the way through, providing additional services which are program management and the final detailed design and selection of the recovery efforts that would make the cities and counties and coastlines more resilient. So we would like to bring in here in the United States additional vertical capability on the consulting and engineering side for program management and long-term resiliency design work that we have a lot of capability in-house, but we would like to add additional clients, capabilities and resources here in the U.S. So you could refer to that as a rollup, I would say, expanding our – the verticals in that. So that's a…

With the – in the U.S. Commercial, it's actually pretty broad for us. Oil and gas, if you went back four years or five years, was a much bigger part of our U.S. Commercial business. It's actually pulled back as it has for, I believe, everyone. So our U.S. Commercial is industrial. So we work for the automotive, we work for the aerospace, we work for the manufacturing sectors, we work for commercial utilities. And so a lot of the renewable energy work we do, both for on and offshore wind, solar and others are actually for commercial developers. So it's actually a pretty significant portion. And as I'd mentioned on an earlier question, sustainable building design has actually moved up quite quickly. And most of that work is actually on the commercial sector. So while we are focused on oil and gas and ride that back up in the U.S. as it recovers and actually builds, it is still a pretty small part relatively speaking of the business. Now, what we're doing for the oil and gas is almost – it's heavily, I wanted to say, almost exclusively. But it is a great majority of the midstream work, so it's routing, it's right of way clearance, it's the feasibility study for geotechnical, tunneling, crossing of wetlands, the environmental permitting, and we actually will do it all the way through the design. We do some construction – it's actually not construction, environmental oversight – not construction oversight but environmental oversight. When the pipeline owners actually do the construction with a separate constructor, we'll do the environmental oversight for compliance for water quality, storm water, endangered species, biological diversity issues such as plants. And then coal ash, because of this current administration's de-emphasis on enforcement and focusing, we're doing a little bit in that area. But it has actually been an area that has suffered under the new administration from the priorities from the previous administration. So it has been very de minimis. And if you went back three years or four years, you'd hear us have been quite bullish on it, based on economic investment requirements. But that has materially changed in the past couple years. So that is not one of the key drivers for us. It is a market we support. There are health and safety and priorities that individual corporations are making. But as far as a regulatory driver, that has actually decreased quite significantly. Noelle Christine Dilts - Stifel, Nicolaus & Co., Inc.: Thanks. That's helpful.

Thank you, Noelle.

The next question is from Tate Sullivan, Maxim Group.

Thank you. I think it was the last quarter, not the most recent slide presentation, on emerging contaminant opportunity. Is there an update on that opportunity? Or is there a specific announcement from the government we should be looking for? Can you update on that progress, please?

Yeah. Emerging contaminants is actually a – is a growing area. We identified it last quarter on one of the slides that we identified that as a specific growing area and priority for – primarily for the Department of Defense, not just the federal government. And a lot of it has been chemicals, the acronyms are referred to as PFOS and PFAS, which are really byproducts of the components used in fire retardants that have impacted groundwater. And while the states and local health agencies and the U.S. EPA are actually working through – the U.S. Environmental Protection Agency are working through cleanup levels that would be protective of human health, we've seen the Department of Defense move forward. We identified $20 billion of new individual programs that are moving forward. It hasn't waned. It hasn't gone away. It's just something that we're continuing to pursue and actually perform on. And we can provide more updates. But we don't see any new special announcement that will come out of the federal government. This is just part of their ongoing priority to protect both the enlisted and the military force with respect to exposure of the drinking water and the surrounding communities around the bases that have been impacted.

Okay. Thank you for that detail. And can you give -I think it was also the prior quarter where you mentioned on delays in the government releasing task orders. Can you give an example of how that timeline works usually?

Well, last quarter, I talked about backlog had been relatively flat for Tetra Tech. Now, we did have an all-time record in the third quarter, revenue was at an all-time. Things were very busy. Backlog was relatively flat. And my comment was that the U.S. Federal government really had not gone from having its budgets passed and appropriations approved to releasing projects and releasing task orders and we did see that actually happen in the fourth quarter. Now, it wasn't – it was not a tsunami or tidal wave or anything like that. It was the federal government is not in and of itself what drove the backlog to a new all-time high with orders. But it – we did actually see meaningful release now as to what we had been forecasting. And so I think there's a lot more that can come out just to release and expend the budgets that had been approved and authorized by the federal government. This is the earliest appropriation and approval for the 19 components of the budget that we've seen in over 20 years. So, it's the best visibility we've had in the federal government going forward. So, yes, fourth quarter was much better from their authorization to their release. And actually, if that continues here through most of 2019 in a more regular manner, that would also help us drive not only our backlog to even higher levels but that would then translate into revenues and help drive us to the top end of our guidance.

Okay. Thank you very much for that detail. Have a great rest of the day.

Thank you very much, Tate.

This will conclude the Q&A session. I will now turn the conference back over to Dan Batrack to conclude.

Well, thank you very much, Hillary, and thank you all for your insightful questions and your interest in Tetra Tech. I'll tell you here at the company we're excited and really looking forward to fiscal year 2019. We're already a month and a week into it and we're off to a fast start and we really look forward to speaking with you again next quarter to give you an update on how we've started in the first quarter of our fiscal year 2019. I hope you all have a great rest of the week and I'll talk to you on next quarter. Bye.

Ladies and gentlemen, this concludes our conference for today. Thank you all for participating and have a nice day. All parties may disconnect now.