• New awards of $2.1 billion; the largest volume of quarterly new awards in nearly four years
• Backlog at $7.2 billion, with 54% of backlog now comprised of higher-margin Civil projects
• Affirming 2017 guidance: revenue in excess of $5.5 billion; diluted EPS of $2.10 to $2.40

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, 2017. Revenue for the first quarter of 2017 was $1,117.4 million, up 3% compared to the first quarter of last year. Income from construction operations was $37.0 million for the first quarter of 2017 compared to $40.1 million for the comparable period last year. Net income for the first quarter of 2017 was $13.8 million, or $0.27 per diluted share, compared to $15.4 million, or $0.31 per diluted share, for the first quarter of 2016. The decrease in both income from construction operations and net income was primarily due to the relative impact of certain Civil and Building segment projects in New York and in the Midwest that are nearing completion or are substantially complete and the timing of new projects that are ramping up. The decrease was partially offset by increased activity on certain Civil projects on the West Coast. In addition, higher than expected rainfall in California during the first quarter of 2017 slowed the progress on certain Civil and Building segment projects, resulting in an impact of approximately $0.05 per diluted share that we expect will be made up later in the year.

Backlog as of March 31, 2017 was $7.2 billion, up 15% compared to $6.2 billion as of December 31, 2016. New awards and adjustments to contracts in process totaled $2.1 billion in the first quarter of 2017. Significant new awards included the previously announced $1.4 billion Purple Line Extension Section 2 joint venture project for the Los Angeles County Metropolitan Transportation Authority, three mechanical contracts in New York City collectively valued at $104 million and an $80 million military facility project in Saudi Arabia.

The unbilled cost balance was essentially flat in the first quarter of 2017 compared to the fourth quarter of 2016. However, the Company remains on track to meet its previously stated goals to reduce unbilled costs and improve operating cash generation throughout the remainder of 2017 and in 2018.

The Company successfully completed a comprehensive debt refinancing in April 2017, effectively replacing $300 million of 7.625% senior notes due in 2018 with $500 million of new 6.875% senior notes due in 2025. The Company used some of the proceeds from the issuance of the new senior notes to pay off its former term loan. In addition, the Company replaced its former $300 million revolving credit facility with a new $350 million revolving credit facility under more favorable terms, including modestly lower interest rates. The increased liquidity that resulted from this refinancing will help fund any working capital needs for the significant number of project opportunities that management sees over the next several years, especially in the Civil segment.

“We booked $2.1 billion of new awards into backlog in the first quarter of 2017, which represented the highest volume of new awards for any quarter in nearly four years,” remarked Ronald Tutor, Chairman and Chief Executive Officer. Tutor continued, “Close to three-fourths of the total award value booked in the quarter was in our higher-margin Civil segment, indicative of the unprecedented civil project opportunities that we are seeing. We have also booked or been informed that we will be awarded contracts for approximately $774 million of new Civil segment projects in the first month of the second quarter and expect that the number and size of these opportunities will increase even further over time as substantial new funding for infrastructure projects is released. In addition, our operating results for the first quarter were consistent with our expectations.”

Outlook and Guidance

Based on the current backlog and market outlook, the Company is affirming its guidance for 2017, with revenue expected to be in excess of $5.5 billion and diluted earnings per share (EPS) expected in the range of $2.10 to $2.40. As previously noted in our earnings release for the fourth quarter and full year 2016, earnings in 2017 are anticipated to be 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 3, 2017, 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 site work, concrete forming and placement, steel erection, electrical, mechanical, plumbing and heating, ventilation and air conditioning (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.

Forward-Looking Statements

The statements contained in this Release, including those set forth in the section “Outlook and Guidance,” 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. While 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; increased competition and failure to secure new contracts; 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 construction projects; 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; failure to meet our obligations under our debt agreements; the ability to retain certain members of management; the ability to obtain surety bonds to secure the Company’s 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; failure to comply with laws and regulations related to government contracts; 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; impairments of our goodwill or other indefinite-lived intangible assets; possible systems and information technology disruptions; 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, 2016 filed with the Securities and Exchange Commission on February 23, 2017. 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.

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Source: Tutor Perini Corporation