-
Income from construction operations of $40.1 million, double that
of Q1 2015
-
Diluted EPS of $0.31, triple the results of Q1 2015
-
Backlog of $8.2 billion, up 9% compared to $7.5 billion at Q4 2015;
largest backlog since Q3 2008
-
Cash flow from operations of $15.9 million; strongest first quarter
result in eight years
LOS ANGELES--(BUSINESS WIRE)--
Tutor Perini Corporation (NYSE: TPC), a leading civil and building
construction company, today reported results for the three months ended
March 31, 2016. Revenue for the first quarter of 2016 was $1,085.4
million, up modestly compared to the first quarter of last year. Income
from construction operations was $40.1 million for the first quarter of
2016 compared to $20.1 million for the comparable period last year. Net
income for the first quarter of 2016 was $15.4 million, or $0.31 per
diluted share, compared to $5.1 million, or $0.10 per diluted share, for
the first quarter of 2015. The strong increase in both income from
construction operations and net income was primarily due to increased
revenue in the Building segment, improved operating performance in both
the Building and Civil segments, and lower general and administrative
expenses.
Backlog as of March 31, 2016 was $8.2 billion, up 9% compared to $7.5
billion as of December 31, 2015. New awards and adjustments to contracts
in process were $1.8 billion in the first quarter of 2016. Significant
new awards included the previously announced $663 million East Side
Access CM007 mass-transit project for the Metropolitan Transportation
Authority in New York and the $285 million Pechanga Resort and Casino
expansion project in California. In addition, the Company booked its
share of more than $150 million of additional contract scope for the
California High-Speed Rail project.
The Company is on track with its previously stated goals to generate
improved operating cash and reduce unbilled costs. Cash flow from
operations was $15.9 million for the first quarter of 2016, the
strongest first quarter operating cash flow in eight years. The unbilled
cost balance decreased almost $50 million in the first quarter of 2016,
the largest quarterly reduction in more than eight years. The Company
expects to build upon the progress made in the first quarter throughout
the remainder of 2016 and 2017.
“I am pleased with our strong first quarter results. We delivered
significantly improved earnings and operating cash while also booking
higher new awards than in any quarter in nearly three years. With our
near-record backlog and numerous sizeable bidding opportunities, we
remain confident in our ability to achieve solid growth and
profitability this year,” commented Ronald Tutor, Chairman and Chief
Executive Officer.
Outlook and Guidance
Based on the current backlog and market outlook, the Company is
affirming its guidance for 2016, with revenue expected to be in the
range of $5.1 billion to $5.6 billion and diluted earnings per share
(EPS) in the range of $1.90 to $2.20. As previously indicated in our
earnings release for the fourth quarter of 2015 and fiscal year 2015,
earnings in 2016 are expected to be more heavily weighted towards the
second half of the year, consistent with the cyclicality of the
Company’s business.
First Quarter Conference Call
The Company will host a conference call at 2:00 PM Pacific Time on
Wednesday, May 4, 2016, to discuss the first quarter results. To
participate in the conference call, please dial 877-407-8293 five to ten
minutes prior to the scheduled time. International callers should dial
+1-201-689-8349.
The conference call will be webcast live over the Internet and can be
accessed by all interested parties on Tutor Perini's website at www.tutorperini.com.
To listen to the webcast, please visit the Company's website at least
fifteen minutes prior to the start of the call to register and to
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 the website.
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 win new contracts and
convert backlog into revenue; the Company's ability to successfully and
timely complete construction projects; the outcomes of pending or future
litigation, arbitration or other dispute resolution proceedings and the
timing of related collections; 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 revenues, costs and profits and project schedules;
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; 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; the impact of inclement weather conditions on projects;
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, 2015 filed with the Securities and Exchange Commission on
February 29, 2016. 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.
|
|
|
Tutor Perini Corporation
|
|
Condensed Consolidated Statements of Operations
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
(in thousands, except per share data)
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
1,085,369
|
|
|
$
|
1,066,465
|
|
|
|
|
|
|
|
|
|
Cost of operations
|
|
|
|
(980,277
|
)
|
|
|
(975,706
|
)
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
105,092
|
|
|
|
90,759
|
|
|
|
|
|
|
|
|
|
General and administrative expenses
|
|
|
|
(64,970
|
)
|
|
|
(70,675
|
)
|
|
|
|
|
|
|
|
|
INCOME FROM CONSTRUCTION OPERATIONS
|
|
|
|
40,122
|
|
|
|
20,084
|
|
|
|
|
|
|
|
|
|
Other income (expense), net
|
|
|
|
682
|
|
|
|
(754
|
)
|
|
Interest expense
|
|
|
|
(14,080
|
)
|
|
|
(11,125
|
)
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
26,724
|
|
|
|
8,205
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
|
(11,324
|
)
|
|
|
(3,079
|
)
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
$
|
15,400
|
|
|
$
|
5,126
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER COMMON SHARE
|
|
|
$
|
0.31
|
|
|
$
|
0.11
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER COMMON SHARE
|
|
|
$
|
0.31
|
|
|
$
|
0.10
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:
|
|
|
|
|
BASIC
|
|
|
|
49,079
|
|
|
|
48,747
|
|
|
DILUTED
|
|
|
|
49,285
|
|
|
|
49,543
|
|
|
|
|
|
|
|
|
|
Tutor Perini Corporation
|
|
Segment Information
|
|
Unaudited
|
|
|
|
|
Reportable Segments
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
|
|
|
|
|
|
|
Consolidated
|
|
(in thousands)
|
|
|
Civil
|
|
Building
|
|
Contractors
|
|
Totals
|
|
Corporate
|
|
|
Total
|
|
Three Months Ended March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
|
$
|
367,501
|
|
|
$
|
487,994
|
|
|
$
|
281,773
|
|
|
$
|
1,137,268
|
|
|
$
|
—
|
|
|
|
$
|
1,137,268
|
|
|
Elimination of intersegment revenue
|
|
|
|
(31,643
|
)
|
|
|
(20,256
|
)
|
|
|
—
|
|
|
|
(51,899
|
)
|
|
|
—
|
|
|
|
|
(51,899
|
)
|
|
Revenue from external customers
|
|
|
$
|
335,858
|
|
|
$
|
467,738
|
|
|
$
|
281,773
|
|
|
$
|
1,085,369
|
|
|
$
|
—
|
|
|
|
$
|
1,085,369
|
|
|
Income from construction operations
|
|
|
$
|
33,665
|
|
|
$
|
12,450
|
|
|
$
|
9,413
|
|
|
$
|
55,528
|
|
|
$
|
(15,406
|
)
|
(a)
|
|
$
|
40,122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
|
$
|
392,876
|
|
|
$
|
416,063
|
|
|
$
|
293,017
|
|
|
$
|
1,101,956
|
|
|
$
|
—
|
|
|
|
$
|
1,101,956
|
|
|
Elimination of intersegment revenue
|
|
|
|
(18,202
|
)
|
|
|
(17,233
|
)
|
|
|
(56
|
)
|
|
|
(35,491
|
)
|
|
|
—
|
|
|
|
|
(35,491
|
)
|
|
Revenue from external customers
|
|
|
$
|
374,674
|
|
|
$
|
398,830
|
|
|
$
|
292,961
|
|
|
$
|
1,066,465
|
|
|
$
|
—
|
|
|
|
$
|
1,066,465
|
|
|
Income from construction operations
|
|
|
$
|
30,593
|
|
|
$
|
(2,279
|
)
|
|
$
|
10,524
|
|
|
$
|
38,838
|
|
|
$
|
(18,754
|
)
|
(a)
|
|
$
|
20,084
|
|
|
|
|
(a) Consists primarily of corporate general and administrative
expenses.
|
|
|
|
|
|
Tutor Perini Corporation
|
|
Condensed Consolidated Balance Sheets
|
|
Unaudited
|
|
|
|
(in thousands, except share and per share amounts)
|
|
|
March 31, 2016
|
|
December 31, 2015
|
|
ASSETS
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
90,582
|
|
|
$
|
75,452
|
|
|
Restricted cash
|
|
|
|
49,158
|
|
|
|
45,853
|
|
|
Accounts receivable, including retainage
|
|
|
|
1,615,661
|
|
|
|
1,473,615
|
|
|
Costs and estimated earnings in excess of billings
|
|
|
|
858,356
|
|
|
|
905,175
|
|
|
Deferred income taxes
|
|
|
|
26,550
|
|
|
|
26,306
|
|
|
Other current assets
|
|
|
|
91,990
|
|
|
|
108,844
|
|
|
Total current assets
|
|
|
|
2,732,297
|
|
|
|
2,635,245
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
519,890
|
|
|
|
523,525
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
585,006
|
|
|
|
585,006
|
|
|
Intangible assets, net
|
|
|
|
95,654
|
|
|
|
96,540
|
|
|
Other
|
|
|
|
198,635
|
|
|
|
196,361
|
|
|
Total assets
|
|
|
$
|
4,131,482
|
|
|
$
|
4,036,677
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
Current maturities of long-term debt
|
|
|
$
|
99,970
|
|
|
$
|
88,917
|
|
|
Accounts payable, including retainage
|
|
|
|
1,005,906
|
|
|
|
937,464
|
|
|
Billings in excess of costs and estimated earnings
|
|
|
|
285,582
|
|
|
|
288,311
|
|
|
Accrued expenses and other current liabilities
|
|
|
|
160,964
|
|
|
|
159,016
|
|
|
Total current liabilities
|
|
|
|
1,552,422
|
|
|
|
1,473,708
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, less current maturities
|
|
|
|
725,763
|
|
|
|
728,767
|
|
|
Deferred income taxes
|
|
|
|
274,232
|
|
|
|
273,310
|
|
|
Other long-term liabilities
|
|
|
|
138,734
|
|
|
|
140,665
|
|
|
Total liabilities
|
|
|
|
2,691,151
|
|
|
|
2,616,450
|
|
|
|
|
|
|
|
|
|
CONTINGENCIES AND COMMITMENTS
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY:
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock– authorized 1,000,000 shares ($1 par value), none
issued
|
|
|
|
—
|
|
|
|
—
|
|
|
Common stock - authorized 75,000,000 shares ($1 par value),
issued and outstanding 49,072,710 shares
|
|
|
|
49,073
|
|
|
|
49,073
|
|
|
Additional paid-in capital
|
|
|
|
1,039,070
|
|
|
|
1,035,516
|
|
|
Retained earnings
|
|
|
|
393,203
|
|
|
|
377,803
|
|
|
Accumulated other comprehensive loss
|
|
|
|
(41,015
|
)
|
|
|
(42,165
|
)
|
|
Total stockholders' equity
|
|
|
|
1,440,331
|
|
|
|
1,420,227
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
4,131,482
|
|
|
$
|
4,036,677
|
|
|
|
|
|
|
|
|
|
Tutor Perini Corporation
|
|
Condensed Consolidated Statements of Cash Flows
|
|
Unaudited
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
(in thousands)
|
|
|
2016
|
|
2015
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
15,400
|
|
|
$
|
5,126
|
|
|
Adjustments to reconcile net income to net cash from operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
14,496
|
|
|
|
10,594
|
|
|
Share-based compensation expense
|
|
|
|
3,647
|
|
|
|
9,159
|
|
|
Deferred income taxes
|
|
|
|
(155
|
)
|
|
|
—
|
|
|
(Gain) loss on sale of property and equipment
|
|
|
|
285
|
|
|
|
(276
|
)
|
|
Other long-term liabilities
|
|
|
|
(4,061
|
)
|
|
|
2,381
|
|
|
Other non-cash items
|
|
|
|
1,399
|
|
|
|
(2,227
|
)
|
|
Changes in other components of working capital
|
|
|
|
(15,067
|
)
|
|
|
(27,081
|
)
|
|
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
|
|
|
|
15,944
|
|
|
|
(2,324
|
)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
Acquisition of property and equipment excluding financed purchases
|
|
|
|
(4,812
|
)
|
|
|
(5,691
|
)
|
|
Proceeds from sale of property and equipment
|
|
|
|
939
|
|
|
|
798
|
|
|
Change in restricted cash
|
|
|
|
(3,305
|
)
|
|
|
277
|
|
|
NET CASH USED IN INVESTING ACTIVITIES
|
|
|
|
(7,178
|
)
|
|
|
(4,616
|
)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from debt
|
|
|
|
299,785
|
|
|
|
280,200
|
|
|
Repayment of debt
|
|
|
|
(287,484
|
)
|
|
|
(262,112
|
)
|
|
Issuance of common stock and effect of cashless exercise
|
|
|
|
—
|
|
|
|
(773
|
)
|
|
Debt issuance costs
|
|
|
|
(5,937
|
)
|
|
|
—
|
|
|
NET CASH PROVIDED BY FINANCING ACTIVITIES
|
|
|
|
6,364
|
|
|
|
17,315
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
|
15,130
|
|
|
|
10,375
|
|
|
Cash and cash equivalents at beginning of year
|
|
|
|
75,452
|
|
|
|
135,583
|
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
90,582
|
|
|
$
|
145,958
|
|
|
|
|
|
|
Tutor Perini Corporation
|
|
Backlog Information
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
New Awards in the
|
|
Recognized in the
|
|
|
|
|
|
Backlog at
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Backlog at
|
|
(in millions)
|
|
December 31, 2015
|
|
March 31, 2016(a)
|
|
March 31, 2016
|
|
March 31, 2016
|
|
Civil
|
|
$
|
2,743.7
|
|
$
|
938.3
|
|
$
|
(335.9)
|
|
$
|
3,346.1
|
|
Building
|
|
|
2,780.4
|
|
|
562.0
|
|
|
(467.7)
|
|
|
2,874.7
|
|
Specialty Contractors
|
|
|
1,941.0
|
|
|
279.2
|
|
|
(281.8)
|
|
|
1,938.4
|
|
Total
|
|
$
|
7,465.1
|
|
$
|
1,779.5
|
|
$
|
(1,085.4)
|
|
$
|
8,159.2
|
|
|
|
|
|
(a) New awards consists of the original contract price of projects
added to our backlog plus or minus subsequent changes to the
estimated total contract price of existing contracts.
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160504006460/en/
Source: Tutor Perini Corporation