- Strong operating cash flow of $98.3 million in Q1 2024, up
361% compared to $21.3 million in Q1 2023
- Revenue of $1.05 billion in Q1 2024, up 35% compared to Q1
2023
- Diluted earnings per share ("EPS") of $0.30 in Q1 2024
compared to diluted loss per share of $0.95 in Q1 2023
- Backlog grew to $10.0 billion, up 26% year-over-year;
anticipating continued strong backlog growth in 2024 and
2025
- Strengthened balance sheet with debt refinancing
Tutor Perini Corporation (the “Company”) (NYSE: TPC), a leading
civil, building and specialty construction company, reported
results today for the first quarter of 2024. The Company generated
$98.3 million of cash from operating activities in the first
quarter of 2024, up 361% compared to $21.3 million for the same
period of 2023. The operating cash flow for the first quarter of
2024 was the Company's second-highest result of any first quarter
since the 2008 merger between Tutor-Saliba Corporation and Perini
Corporation. The strong operating cash flow was driven by solid
collection activities, including approximately $50 million of
collections that were associated with certain recently concluded
settlement negotiations or dispute resolutions. The Company
continues to anticipate strong operating cash generation over the
remainder of 2024 and in 2025.
Revenue was $1.05 billion, up 35% compared to $776.3 million for
the first quarter of last year. The strong growth was primarily
driven by increased project execution activities on two
mass-transit projects in California (one in the Civil segment and
one in the Building segment) and a Building segment detention
facility project in New York.
Income from construction operations for the first quarter of
2024 was $48.8 million, an improvement of $130.7 million compared
to loss from construction operations of $81.9 million for the same
period in 2023. The substantial improvement was principally due to
the absence of certain significant prior-year unfavorable
adjustments, as well as contributions related to the increased
project execution activities discussed above. Net income
attributable to the Company for the first quarter of 2024 was $15.8
million, or $0.30 of diluted EPS, compared to net loss attributable
to the Company of $49.2 million, or a $0.95 loss per diluted share,
for the first quarter of 2023.
Backlog grew to $10.0 billion as of March 31, 2024, up 26%
compared to $7.9 billion as of March 31, 2023. The Building and
Civil segments were the primary contributors to the new award
activity in the first quarter of 2024. The most significant new
awards and contract adjustments in the first quarter of 2024
included a $243 million health care facility project in California;
a $73 million airport hangar project in Florida; $66 million of
additional funding for several other health care projects in
California; $55 million for three U.S. Navy projects in Diego
Garcia; and $52 million of additional funding for three
mass-transit projects in California.
As previously disclosed, in February 2024 the Company paid down
its Term Loan B by $91 million using available cash on hand that it
had accumulated — a payment that was made more than one month
earlier than required. Subsequently, in April 2024, the Company
completed a successful debt refinancing, issuing $400 million of
11.875% senior notes due in 2029. The Company will use the proceeds
of this transaction combined with $100 million of available cash on
hand in early May 2024 to redeem all $500 million of its 6.875%
senior notes due in 2025. In addition, subject to the redemption of
the Company's 6.875% senior notes and the satisfaction of other
customary closing conditions, the maturity of the Company's
revolving credit facility will be extended to 2027.
Outlook and Guidance
The Company is focused on continuing to drive shareholder value
through its disciplined approach to project bidding and execution,
profitable revenue growth and continued strong cash flow. Over the
near term, the Company plans to use excess cash to further reduce
debt by paying down the remaining balance of the Term Loan B.
Ronald Tutor, Chairman and Chief Executive Officer, remarked,
“We delivered great results that were better than expected for the
first quarter of 2024, including solid revenue growth and
profitability in our Civil and Building segments, strong backlog
growth compared to the prior year, and the second-highest operating
cash flow result of any first quarter since 2008. We continue to
anticipate that our backlog will grow significantly later this year
and in 2025, as we pursue and expect to capture our share of
various large project opportunities amid a very strong, multi-year
demand environment supported by federal, state and local government
funding sources, and limited competition for many of the larger
projects.”
Based on the Company's year-to-date results in 2024 and the
current outlook for the remainder of the year, the Company is
affirming its 2024 EPS guidance and still expects EPS to be in the
range of $0.85 to $1.10.
First Quarter 2024 Conference Call
The Company will host a conference call at 2:00 PM Pacific Time
on Thursday, April 25, 2024, to discuss the first quarter 2024
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. 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, building and
specialty construction company offering diversified general
contracting and design-build services to private customers 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 planning and scheduling of
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).
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, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, 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: unfavorable outcomes
of existing or future litigation or dispute resolution proceedings
against us or customers (project owners, developers, general
contractors, etc.), subcontractors or suppliers, as well as failure
to promptly recover significant working capital invested in
projects subject to such matters; revisions of estimates of
contract risks, revenue or costs, economic factors such as
inflation, the timing of new awards, or the pace of project
execution, which has resulted and may continue to result in losses
or lower than anticipated profit; increased competition and failure
to secure new contracts; contract requirements to perform extra
work beyond the initial project scope, which has and in the future
could result in disputes or claims and adversely affect our working
capital, profits and cash flows; risks and other uncertainties
associated with estimates and assumptions used to prepare our
financial statements; a significant slowdown or decline in economic
conditions, such as those presented during a recession; failure to
meet contractual schedule requirements, which could result in
higher costs and reduced profits or, in some cases, exposure to
financial liability for liquidated damages and/or damages to
customers, as well as damage to our reputation; failure to meet our
obligations under our debt agreements (especially in a high
interest rate environment); inability to attract and retain our key
officers, and to adequately plan for their succession, and hire and
retain personnel required to execute and perform on our contracts;
possible systems and information technology interruptions and
breaches in data security and/or privacy; an inability to obtain
bonding, which could have a negative impact on our operations and
results; the impact of inclement weather conditions and other
events outside of our control on projects; risks related to our
international operations, such as uncertainty of U.S. government
funding, as well as economic, political, regulatory and other
risks, including risks of loss due to acts of war, labor
conditions, and other unforeseeable events in countries where we do
business, which could adversely affect our revenue and earnings;
decreases in the level of government spending for infrastructure
and other public projects; downgrades in our credit ratings; client
cancellations of, or reductions in scope under, contracts reported
in our backlog; risks related to government contracts and related
procurement regulations; failure of our joint venture partners to
perform their venture obligations, which could impose additional
financial and performance obligations on us, resulting in reduced
profits or losses and/or reputational harm; violations of the U.S.
Foreign Corrupt Practices Act and similar worldwide anti-bribery
laws; significant fluctuations in the market price of our common
stock, which could result in substantial losses for stockholders
and potentially subject us to securities litigation; public health
crises, such as COVID-19, which have adversely impacted, and could
in the future adversely impact, our business, financial condition
and results of operations by, among other things, delaying the
timing of project bids and/or awards and the timing of dispute
resolutions and associated collections; physical and regulatory
risks related to climate change; impairment of our goodwill or
other indefinite-lived intangible assets; the exertion of influence
over the Company by our chairman and chief executive officer due to
his position and significant ownership interest; 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, 2023
filed on February 28, 2024 and in other reports that we file with
the Securities and Exchange Commission from time to time. 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 common share
amounts)
2024
2023
REVENUE
$
1,048,987
$
776,300
COST OF OPERATIONS
(933,736
)
(800,469
)
GROSS PROFIT (LOSS)
115,251
(24,169
)
General and administrative expenses
(66,445
)
(57,776
)
INCOME (LOSS) FROM CONSTRUCTION
OPERATIONS
48,806
(81,945
)
Other income, net
5,311
6,417
Interest expense
(19,307
)
(21,513
)
INCOME (LOSS) BEFORE INCOME
TAXES
34,810
(97,041
)
Income tax (expense) benefit
(7,308
)
48,112
NET INCOME (LOSS)
27,502
(48,929
)
LESS: NET INCOME ATTRIBUTABLE TO
NONCONTROLLING INTERESTS
11,742
267
NET INCOME (LOSS) ATTRIBUTABLE TO TUTOR
PERINI CORPORATION
$
15,760
$
(49,196
)
BASIC EARNINGS (LOSS) PER COMMON
SHARE
$
0.30
$
(0.95
)
DILUTED EARNINGS (LOSS) PER COMMON
SHARE
$
0.30
$
(0.95
)
WEIGHTED-AVERAGE COMMON SHARES
OUTSTANDING:
BASIC
52,092
51,551
DILUTED
52,515
51,551
Tutor Perini
Corporation
Segment Information
Unaudited
Reportable Segments
(in thousands)
Civil
Building
Specialty
Contractors
Total
Corporate
Consolidated
Total
Three Months Ended March 31,
2024
Total revenue
$
502,822
$
422,176
$
164,880
$
1,089,878
$
—
$
1,089,878
Elimination of intersegment revenue
(30,657
)
(10,234
)
—
(40,891
)
—
(40,891
)
Revenue from external customers
$
472,165
$
411,942
$
164,880
$
1,048,987
$
—
$
1,048,987
Income (loss) from construction
operations
$
70,743
$
16,120
$
(18,312
)
$
68,551
(a)
$
(19,745
)
(b)
$
48,806
Capital expenditures
$
8,131
$
217
$
303
$
8,651
$
1,783
$
10,434
Depreciation and amortization(c)
$
10,254
$
585
$
598
$
11,437
$
2,145
$
13,582
Three Months Ended March 31,
2023
Total revenue
$
378,224
$
229,291
$
196,748
$
804,263
$
—
$
804,263
Elimination of intersegment revenue
(28,354
)
362
29
(27,963
)
—
(27,963
)
Revenue from external customers
$
349,870
$
229,653
$
196,777
$
776,300
$
—
$
776,300
Income (loss) from construction
operations
$
18,012
$
(70,209
)
$
(12,448
)
$
(64,645
)
(d)
$
(17,300
)
(b)
$
(81,945
)
Capital expenditures
$
15,065
$
2,017
$
444
$
17,526
$
270
$
17,796
Depreciation and amortization(c)
$
6,981
$
457
$
619
$
8,057
$
2,351
$
10,408
________________________________
(a)
During the three months ended March 31,
2024, the Company’s income (loss) from construction operations was
impacted by an unfavorable adjustment of $12.0 million ($8.8
million, or $0.17 per diluted share, after tax) due to an
arbitration ruling that only provided a partial award to the
Company pertaining to a completed Specialty Contractors segment
electrical project in New York, as well as by a favorable
adjustment of $10.2 million ($7.5 million, or $0.14 per diluted
share, after tax) on a Civil segment mass-transit project in
California related to a dispute resolution and associated expected
cost savings.
(b)
Consists primarily of corporate general
and administrative expenses.
(c)
Depreciation and amortization is included
in income (loss) from construction operations.
(d)
During the three months ended March 31,
2023, the Company’s income (loss) from construction operations was
unfavorably impacted by an adverse legal ruling on a completed
mixed-use project in New York, which resulted in a non-cash,
pre-tax charge of $83.6 million ($60.1 million, or $1.17 per
diluted share, after-tax), of which $72.2 million impacted the
Building segment and $11.4 million impacted the Specialty
Contractors segment, as well as an unfavorable adjustment of $28.0
million ($22.2 million, or $0.43 per diluted share, after tax) for
a Civil segment mass-transit project in California, resulting from
the successful negotiation of significant lower margin (and lower
risk) change orders which increased the project’s overall estimated
profit but reduced the project’s percentage of completion and
overall margin percentage as of March 31, 2023.
Tutor Perini
Corporation
Condensed Consolidated Balance
Sheets
Unaudited
(in thousands, except share and per share
amounts)
As of March 31,
2024
As of December 31,
2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents ($171,727 and
$173,118 related to variable interest entities (“VIEs”))
$
358,304
$
380,564
Restricted cash
14,749
14,116
Restricted investments
130,499
130,287
Accounts receivable ($51,822 and $84,014
related to VIEs)
1,057,229
1,054,014
Retention receivable ($154,951 and
$161,187 related to VIEs)
550,224
580,926
Costs and estimated earnings in excess of
billings ($72,566 and $58,089 related to VIEs)
1,156,571
1,143,846
Other current assets ($22,155 and $26,725
related to VIEs)
199,138
217,601
Total current assets
3,466,714
3,521,354
PROPERTY AND EQUIPMENT ("P&E"),
net of accumulated depreciation of $546,716 and $534,171 (net
P&E of $33,813 and $35,135 related to VIEs)
438,605
441,291
GOODWILL
205,143
205,143
INTANGIBLE ASSETS, NET
67,746
68,305
DEFERRED INCOME TAXES
69,737
74,083
OTHER ASSETS
122,462
119,680
TOTAL ASSETS
$
4,370,407
$
4,429,856
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt
$
21,109
$
117,431
Accounts payable ($23,199 and $24,160
related to VIEs)
600,190
466,545
Retention payable ($22,011 and $22,841
related to VIEs)
227,731
223,138
Billings in excess of costs and estimated
earnings ($425,410 and $439,759 related to VIEs)
1,002,268
1,103,530
Accrued expenses and other current
liabilities ($10,572 and $18,206 related to VIEs)
191,909
214,309
Total current liabilities
2,043,207
2,124,953
LONG-TERM DEBT, less current
maturities, net of unamortized discount and debt issuance costs
totaling $9,389 and $11,000
780,058
782,314
OTHER LONG-TERM LIABILITIES
243,908
238,678
TOTAL LIABILITIES
3,067,173
3,145,945
COMMITMENTS AND CONTINGENCIES
EQUITY
Stockholders' equity:
Preferred stock - authorized 1,000,000
shares ($1 par value), none issued
—
—
Common stock - authorized 112,500,000
shares ($1 par value), issued and outstanding 52,284,162 and
52,025,497 shares
52,284
52,025
Additional paid-in capital
1,146,008
1,146,204
Retained earnings
148,906
133,146
Accumulated other comprehensive loss
(40,162
)
(39,787
)
Total stockholders' equity
1,307,036
1,291,588
Noncontrolling interests
(3,802
)
(7,677
)
TOTAL EQUITY
1,303,234
1,283,911
TOTAL LIABILITIES AND EQUITY
$
4,370,407
$
4,429,856
Tutor Perini
Corporation
Condensed Consolidated
Statements of Cash Flows
Unaudited
Three Months Ended March
31,
(in thousands)
2024
2023
Cash Flows from Operating
Activities:
Net income (loss)
$
27,502
$
(48,929
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation
13,023
9,849
Amortization of intangible assets
559
559
Share-based compensation expense
5,524
3,071
Change in debt discounts and deferred debt
issuance costs
1,806
1,004
Deferred income taxes
3,494
(86,265
)
Gain on sale of property and equipment
(227
)
(4,975
)
Changes in other components of working
capital
47,173
148,182
Other long-term liabilities
790
(2,256
)
Other, net
(1,370
)
1,088
NET CASH PROVIDED BY OPERATING
ACTIVITIES
98,274
21,328
Cash Flows from Investing
Activities:
Acquisition of property and equipment
(10,434
)
(17,796
)
Proceeds from sale of property and
equipment
628
6,540
Investments in securities
(12,045
)
(386
)
Proceeds from maturities and sales of
investments in securities
11,530
4,755
NET CASH USED IN INVESTING
ACTIVITIES
(10,321
)
(6,887
)
Cash Flows from Financing
Activities:
Proceeds from debt
—
259,500
Repayment of debt
(100,188
)
(238,101
)
Cash payments related to share-based
compensation
(1,440
)
(123
)
Distributions paid to noncontrolling
interests
(7,400
)
(8,500
)
Contributions from noncontrolling
interests
—
2,000
Debt issuance, extinguishment and
modification costs
(552
)
(407
)
NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES
(109,580
)
14,369
Net increase (decrease) in cash, cash
equivalents and restricted cash
(21,627
)
28,810
Cash, cash equivalents and restricted
cash at beginning of period
394,680
273,831
Cash, cash equivalents and restricted
cash at end of period
$
373,053
$
302,641
Tutor Perini
Corporation
Backlog Information
Unaudited
(in millions)
Backlog at
December 31, 2023
New Awards in the
Three Months Ended
March 31, 2024(a)
Revenue Recognized in
the
Three Months Ended
March 31, 2024
Backlog at
March 31, 2024
Civil
$
4,240.6
$
328.2
$
(472.2
)
$
4,096.6
Building
4,177.5
404.3
(411.9
)
4,169.9
Specialty Contractors
1,740.3
140.3
(164.9
)
1,715.7
Total
$
10,158.4
$
872.8
$
(1,049.0
)
$
9,982.2
______________________________________________________
(a)
New awards consist 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: https://www.businesswire.com/news/home/20240425223754/en/
Tutor Perini Corporation Jorge Casado, 818-362-8391 Vice
President, Investor Relations & Corporate Communications
www.tutorperini.com
Tutor Perini (NYSE:TPC)
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