• Backlog of $7.0 billion, up 24% compared to $5.6 billion at end of FY2012
  
• FY2013 diluted EPS of $1.80, up 23% compared to adjusted diluted EPS $1.46 in FY2012
  
• FY2014 guidance: Revenue $4.5 billion to $5.0 billion; diluted EPS $2.20 to $2.40
  

SYLMAR, Calif.--(BUSINESS WIRE)-- Tutor Perini Corporation (NYSE: TPC) (the “Company”), a leading civil and building construction company, today reported results for the fourth quarter and fiscal year ended December 31, 2013.

Fourth-Quarter and Fiscal 2013 Results

Revenues were $1,099.3 million and $4,175.7 million for the fourth quarter and fiscal 2013, respectively, compared to $1,114.2 million and $4,111.5 million for the same periods last year. Income from construction operations was $70.2 million and $203.8 million for the fourth quarter and fiscal 2013, respectively, compared to $60.7 million and a loss from construction operations of $221.8 million for the same periods last year. Net income was $33.3 million and $87.3 million for the fourth quarter and fiscal 2013, respectively, compared to $41.6 million and a net loss of $265.4 million for the same periods last year. Diluted earnings per share (EPS) were $0.68 and $1.80 for the fourth quarter and fiscal 2013, respectively, compared to $0.86 and a diluted loss per share of $5.59 for the same periods last year.

On an adjusted basis, net income and diluted EPS for the fourth quarter of 2012 were $31.9 million and $0.66, respectively. Adjustments for the fourth quarter of 2012 included a $12.7 million tax benefit associated with the $376.6 million goodwill and intangible asset impairment charge which the Company recognized in the second quarter of 2012 and a $5.0 million pre-tax ($3.0 million after-tax) charge related to an adverse jury verdict received in December 2012. For fiscal 2012, adjusted net income was $70.3 million, or $1.46 per diluted share. Fiscal 2012 adjustments included the impairment charge and related $50.2 million tax benefit together with a $2.7 million realized loss on the sale of certain auction rate securities and $3.6 million in discrete tax adjustments recorded in the first quarter of 2012. Net income and diluted EPS excluding these adjustments are non-GAAP financial measures, which are discussed below and are reconciled to the most directly comparable GAAP measures in the financial tables attached hereto.

Revenues decreased 1.3% in the fourth quarter primarily due to activity last year on Hurricane Sandy related projects in New York. Revenues increased 1.6% in fiscal 2013 primarily as a result of activity on certain hospitality and gaming projects as well as the start-up of projects at Hudson Yards in New York. The decrease in net income for the fourth quarter was primarily related to impairment charge tax benefits taken in 2012. The increase in fiscal 2013 net income was primarily driven by the impairment charge taken in 2012. Excluding the impairment charge and other discrete items discussed above, the increases in net income for both the fourth quarter and fiscal 2013 were primarily driven by strong operating performance in the Civil segment.

The Company generated $61.8 million and $50.7 million of cash from operating activities in the fourth quarter and fiscal 2013, respectively, compared to the use of $40.0 million and $67.9 million in the same periods last year. Cash generation in fiscal 2013 was primarily driven by increased net income and a payment received related to a legal settlement, offset by cash paid for interest and taxes and a payment made in 2013 related to an adverse jury verdict rendered in late 2012. At December 31, 2013, working capital was $787.4 million, an increase of $39.8 million from $747.6 million at December 31, 2012. The Company believes its financial position and available borrowing under existing credit arrangements are sufficient to support the Company’s current backlog and anticipated new work.

Backlog Increased to $7.0 Billion

The backlog of uncompleted construction work at December 31, 2013 was $7.0 billion, an increase of $1.4 billion from $5.6 billion reported at December 31, 2012. Revenue earned during the fourth quarter partially offset a continued strong volume of new awards and adjustments to contracts in process, which together added approximately $1.2 billion. Significant additions to backlog in the fourth quarter included the $510 million platform project at Hudson Yards in New York City, the Company’s approximately $200 million share of the St. Croix Crossing bridge project connecting Oak Park Heights, Minnesota and St. Joseph, Wisconsin, a $61 million mixed-use building development project in New Orleans, Louisiana, and a $41 million landfill closure and sewer improvements project in Guam.

Importantly, while the backlog only includes approximately $220 million related to the Hudson Yards South Tower and 500 W. 30^th Street projects in New York due to the customer’s direct contracts with certain subcontractors, the Company is earning a construction management fee based on the total construction value of approximately $860 million, as well as its normal profit margin on certain self-performed components.

Outlook and Guidance

Reflecting on the Company’s results, Ronald Tutor , Chairman and Chief Executive Officer, remarked, “Tutor Perini had a very good year in 2013 capped by strong fourth-quarter profit, cash generation, and backlog. The Company has successfully transitioned the business into one which is now solidly driven by our Civil and Specialty Contracting groups.” Tutor continued, “Fiscal 2014 is already off to a great start as we continue growing our backlog with several large recently announced new contracts. Our guidance reflects our expectations for improved growth and profitability in 2014, and our large backlog together with a significant volume of pending awards provides increased confidence for a favorable multi-year outlook.”

Based on the current market outlook and expectations, the Company is introducing its fiscal 2014 guidance for revenue in the range of $4.5 billion to $5.0 billion and diluted EPS in the range of $2.20 to $2.40. As is typical in our business, our earnings in 2014 are expected to be weighted towards the second half of the year.

Non-GAAP Financial Measures

To supplement our consolidated financial statements presented based on accounting principles generally accepted in the United States of America (“GAAP”), we sometimes use non-GAAP measures of income from operations, net income, EPS and other measures that we believe are appropriate to enhance an overall understanding of our historical financial performance and future prospects. The Company is providing these measures to provide additional information to facilitate the comparison of past and present operations, and they are among the indicators management uses as a basis for evaluating its financial performance as well as for forecasting future periods. For these reasons, management believes these non-GAAP measures can be useful operating performance measures to be considered by investors, potential investors, and others. These measures are not intended to replace the presentation of our financial results in accordance with GAAP, and they should be considered in addition to, and not in lieu of, our GAAP results. The non-GAAP financial measures that we provide may not be comparable to other similarly titled measures of other companies. A table reconciling reported income/loss from construction operations, net income/loss, and diluted earnings/loss per share under GAAP to adjusted income from operations, net income and diluted EPS in 2012 is attached.

Fourth-Quarter Conference Call

The Company will host a conference call at 2:00 PM Pacific Time on Monday, February 24, 2014, to discuss the fourth-quarter and fiscal 2013 results. To participate in the conference call, please dial (877) 415-3183 and enter the passcode 32049009 five to ten minutes prior to the scheduled time. International callers should dial +1 (857) 244-7326 and enter the passcode 32049009.

The conference call will be webcasted live over the internet and can be accessed on Tutor Perini's website at www.tutorperini.com. To listen to the webcast, please visit Tutor Perini's website at least fifteen minutes prior to the start of the call to register, download, and install any necessary software. For those unable to participate during the live call, the webcast will be available for replay shortly after the call on Tutor Perini's website for 90 days.

About Tutor Perini Corporation

Tutor Perini Corporation is a leading civil and building construction company offering diversified general contracting and design-build services to private clients and public agencies throughout the world. We have provided construction services since 1894 and have established a strong reputation within our markets by executing large complex projects on time and within budget while adhering to strict quality control measures. We offer general contracting, pre-construction planning, and comprehensive project management services, including the planning and scheduling of the manpower, equipment, materials, and subcontractors required for a project. We also offer self-performed construction services including excavation, concrete forming and placement, steel erection, electrical and mechanical services, plumbing, and HVAC. We are known for our major complex building project commitments as well as our capacity to perform large and complex transportation and heavy civil construction for government agencies and private clients throughout the world.

The statements contained in this Release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including without limitation, statements regarding the Company’s expectations, hopes, beliefs, intentions or strategies regarding the future and statements regarding future guidance or estimates and non-historical performance. These forward-looking statements are based on the Company’s current expectations and beliefs concerning future developments and their potential effects on the Company. The Company’s expectations, beliefs and projections are expressed in good faith and the Company believes there is a reasonable basis for them. There can be no assurance that future developments affecting the Company will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the Company) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the Company's ability to successfully and timely complete construction projects; the Company’s ability to win new contracts and convert backlog into revenue; the Company’s ability to realize the anticipated economic and business benefits of its acquisitions and its strategy to assemble and operate a Specialty Contractors business segment; the potential delay, suspension, termination, or reduction in scope of a construction project; the continuing validity of the underlying assumptions and estimates of total forecasted project revenue, costs and profits and project schedules; the outcomes of pending or future litigation, arbitration or other dispute resolution proceedings; the availability of borrowed funds on terms acceptable to the Company; the ability to retain certain members of management; the ability to obtain surety bonds to secure its performance under certain construction contracts; possible labor disputes or work stoppages within the construction industry; changes in federal and state appropriations for infrastructure projects and the impact of changing economic conditions on federal, state and local funding for infrastructure projects; possible changes or developments in international or domestic political, social, economic, business, industry, market and regulatory conditions or circumstances; and actions taken or not taken by third parties, including the Company’s customers, suppliers, business partners, and competitors and legislative, regulatory, judicial and other governmental authorities and officials; and other risks and uncertainties discussed under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2013 filed with the Securities and Exchange Commission on February 24, 2014. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Source: Tutor Perini Corporation