- Strong year-to-date operating cash flow of $174.0 million
through September 30, 2024
- Expecting record full-year 2024 operating cash flow in the
range of $425 million to $575 million
- Planning to utilize anticipated strong 2024 cash collections
to prepay $100 million to $150 million of Term Loan B debt by
December 31, 2024 ($50 million of which has already been prepaid in
Q4 2024), with further prepayments of $50 million to $75 million
expected in Q1 2025
- Record backlog of $14.0 billion at the end of Q3 2024, up
35% compared to the end of Q2 2024 and substantially higher than
the previous record of $11.6 billion set in Q1 2019, with the
potential for significant further growth by year-end pending
owners' decisions and awards for various large projects
- The Company's considerable progress in resolving seven of
its largest disputed matters is expected to generate approximately
$180 million of future operating cash flow, however these
resolutions also resulted in net charges that drove a diluted loss
of $1.92 per share in Q3 2024
- Expecting to return to profitability in 2025, with even
stronger earnings anticipated in 2026 and beyond
Tutor Perini Corporation (the "Company") (NYSE: TPC), a leading
civil, building and specialty construction company, reported
results today for the third quarter of 2024. The Company generated
$174.0 million of cash from operating activities in the first nine
months of 2024. As previously announced, the Company expects to
generate new record operating cash flow for the full year of 2024
in the range of $425 million to $575 million from collections
related to project execution activities for new and existing
projects, as well as from the resolution of various disputed
matters. This would represent the third consecutive year that the
Company has generated record operating cash flow. The Company also
anticipates continued strong operating cash flow in 2025.
With the significant operating cash flow expected in the fourth
quarter of 2024, the Company anticipates prepaying $100 million to
$150 million of its outstanding Term Loan B debt prior to December
31, 2024. Of this amount, $50 million has already been prepaid in
the fourth quarter. The Company also estimates that it will prepay
an additional $50 million to $75 million of the Term Loan B debt in
the first quarter of 2025 with cash generated from operations.
Revenue for the third quarter of 2024 was $1.1 billion, up
slightly compared to the third quarter of 2023. The growth was
primarily driven by increased project execution activities on
various Building and Civil segment projects in California and New
York, as well as certain Civil segment projects in the Northern
Mariana Islands and British Columbia, largely offset by the impact
of certain current-quarter net charges discussed below.
Loss from construction operations for the third quarter of 2024
was $106.8 million compared to a loss of $12.6 million for the same
period in 2023. Net loss attributable to the Company for the third
quarter of 2024 was $100.9 million, or a $1.92 diluted loss per
share ("EPS"), compared to net loss attributable to the Company of
$36.9 million, or a $0.71 diluted loss per share, for the third
quarter of 2023. The higher loss was primarily due to previously
announced net charges now totaling approximately $152 million
($111.6 million after tax, or $2.13 per diluted share) that the
Company recorded in the third quarter of 2024 related to the
resolution of various matters, including seven of its largest
outstanding disputed balances.
The financial impacts of those resolutions masked otherwise
solid operational performance in the third quarter of 2024, driven
by increased project execution activities in the Building and Civil
segments. While the net charges resulted in a net loss for the
third quarter of 2024, these resolutions are expected to result in
a substantial net cash inflow to the Company of approximately $180
million, most of which is anticipated to be received in the fourth
quarter of 2024.
The Company's loss from construction operations for the third
quarter of 2024 was also negatively impacted by $16.5 million
($0.23 per diluted share) of share-based compensation expense, as
compared to $3.5 million ($0.05 per diluted share) in the third
quarter of 2023. The higher expense in the current-year period was
primarily due to a substantial increase in the Company’s stock
price during 2024, which increased the expense recognized for
certain long-term incentive compensation awards with payouts that
are indexed to the Company's stock price.
Management Remarks
Ronald Tutor, Chairman and Chief Executive Officer, commented,
“We have tremendous momentum with several large new project wins in
the third quarter that resulted in a new record backlog of $14
billion. This backlog provides us a solid foundation upon which we
expect to build a profitable, multi-year revenue stream, with the
potential for significant continued growth over the next few months
as we look to finalize the contract for the multi-billion-dollar
Manhattan Jail, as we announced this morning, and pursue other
large projects. We are pleased to put many of our largest disputes
behind us, and expect to return to profitability in 2025, with even
stronger earnings anticipated in 2026 and beyond, as various newer
projects progress to advanced design and enter the construction
phase.”
Gary Smalley, President, added, “We are on track to shatter our
previous annual operating cash flow record this year due to strong
anticipated cash collections from new and existing projects, as
well as from recent dispute resolutions. We have already paid down
$50 million of our Term Loan B debt in the fourth quarter, and we
plan to utilize the record cash flow to further deleverage our
balance sheet, delivering on what we previously indicated would be
a key capital allocation objective. These are truly exciting times
for Tutor Perini and we expect to continue generating significant
cash flow, reducing debt, and winning new major projects to ensure
a much brighter future than ever before.”
Backlog Update
As noted above, backlog grew to $14.0 billion as of September
30, 2024, up 35% compared to $10.4 billion as of June 30, 2024,
setting a new record for the Company that far exceeded its previous
record backlog of $11.6 billion reported for the first quarter of
2019. The Civil and Building segments were the primary contributors
to the new awards activity in the third quarter of 2024.
The largest new awards and contract adjustments during the third
quarter of 2024 included:
- $1.66 billion mass-transit project in Hawaii;
- $1.1 billion water conveyance tunnel project in New York;
- $1 billion-plus healthcare campus project in California;
- $138 million of additional funding for certain mass-transit
projects in California; and
- $113 million military facility project in Guam.
In the fourth quarter of 2024, the Company announced the
following:
- The multi-billion-dollar Manhattan Jail project in New York,
for which a joint venture led by the Company has been identified as
the Apparent Selected Proposer; and
- $330.6 million (with up to $230 million of options) for the
award of the Apra Harbor Waterfront Repairs project in Guam.
In addition, the Company is anticipating owners' decisions and
potential awards in the fourth quarter of 2024 for other large
projects that it has recently bid or will be bidding on shortly,
including the $1.5 billion Newark AirTrain and the $550 million
Raritan River Bridge Replacement. The Company also plans to bid on
the $2.2 billion Midtown Bus Terminal Replacement project in New
York during the first quarter of 2025.
Outlook and Guidance
As previously announced on October 21, 2024, the Company
withdrew its 2024 guidance due to the adverse earnings impact of
the net charges recorded in the third quarter of 2024 related to
several dispute resolutions as described above. The Company expects
a return to profitability in 2025 and anticipates issuing its
initial guidance for 2025 in February, when it reports its results
for the full year of 2024.
Third Quarter 2024 Conference Call
The Company will host a conference call at 2:00 PM Pacific Time
on Wednesday, November 6, 2024, to discuss the third 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 on the website
shortly after the call.
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 impacts 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; 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; 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; an inability to obtain bonding, which
could have a negative impact on our operations and results;
possible systems and information technology interruptions and
breaches in data security and/or privacy; 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; the impact of inclement weather
conditions, disasters and other catastrophic 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; increased competition and failure
to secure new contracts; a significant slowdown or decline in
economic conditions, such as those presented during a recession;
decreases in the level of federal, state and local government
spending for infrastructure and other public projects; client
cancellations of, or reductions in scope under, contracts reported
in our backlog; risks related to government contracts and related
procurement regulations; 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; 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;
failure to meet our obligations under our debt agreements
(especially in a high interest rate environment); downgrades in our
credit ratings; 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
September 30,
Nine Months Ended
September 30,
(in thousands, except per common share
amounts)
2024
2023
2024
2023
REVENUE
$
1,082,816
$
1,060,705
$
3,259,273
$
2,858,756
COST OF OPERATIONS
(1,108,644
)
(1,009,792
)
(3,052,773
)
(2,767,051
)
GROSS PROFIT (LOSS)
(25,828
)
50,913
206,500
91,705
General and administrative expenses(a)
(80,979
)
(63,479
)
(224,008
)
(183,828
)
LOSS FROM CONSTRUCTION
OPERATIONS
(106,807
)
(12,566
)
(17,508
)
(92,123
)
Other income, net
4,487
2,967
15,636
12,442
Interest expense
(21,223
)
(20,313
)
(63,614
)
(63,842
)
LOSS BEFORE INCOME TAXES
(123,543
)
(29,912
)
(65,486
)
(143,523
)
Income tax benefit
33,941
4,086
19,355
52,004
NET LOSS
(89,602
)
(25,826
)
(46,131
)
(91,519
)
LESS: NET INCOME ATTRIBUTABLE TO
NONCONTROLLING INTERESTS
11,260
11,070
38,159
32,107
NET LOSS ATTRIBUTABLE TO TUTOR PERINI
CORPORATION
$
(100,862
)
$
(36,896
)
$
(84,290
)
$
(123,626
)
BASIC LOSS PER COMMON SHARE
$
(1.92
)
$
(0.71
)
$
(1.61
)
$
(2.39
)
DILUTED LOSS PER COMMON SHARE
$
(1.92
)
$
(0.71
)
$
(1.61
)
$
(2.39
)
WEIGHTED-AVERAGE COMMON SHARES
OUTSTANDING:
BASIC
52,408
51,994
52,276
51,784
DILUTED
52,408
51,994
52,276
51,784
____________________________
(a)
General and administrative
expenses for the three and nine months ended September 30, 2024
include share-based compensation expense of $16.5 million ($12.1
million after tax, or $0.23 per diluted share) and $39.0 million
($28.6 million after tax, or $0.55 per diluted share),
respectively. General and administrative expenses for the three and
nine months ended September 30, 2023 include share-based
compensation expense of $3.5 million ($2.5 million after tax, or
$0.05 per diluted share) and $9.1 million ($6.6 million after tax,
or $0.13 per diluted share), respectively. The higher expense in
the 2024 periods was primarily due to a substantial increase in the
Company’s stock price during 2024, which increased the expense
recognized for certain long-term incentive compensation awards with
payouts that are indexed to the Company's stock price.
Tutor Perini
Corporation
Segment Information
Unaudited
Reportable Segments
(in thousands)
Civil
Building
Specialty
Contractors
Total
Corporate
Consolidated
Total
Three Months Ended September 30,
2024
Total revenue
$
569,080
$
457,141
$
101,206
$
1,127,427
$
—
$
1,127,427
Elimination of intersegment revenue
(23,185
)
(21,426
)
—
(44,611
)
—
(44,611
)
Revenue from external customers
$
545,895
$
435,715
$
101,206
$
1,082,816
$
—
$
1,082,816
Loss from construction operations
$
(12,545
)
$
(3,895
)
$
(56,911
)
$
(73,351
)(a)
$
(33,456
)(b)
$
(106,807
)
Capital expenditures
$
4,237
$
238
$
53
$
4,528
$
2,386
$
6,914
Depreciation and amortization(c)
$
10,718
$
579
$
569
$
11,866
$
1,644
$
13,510
Three Months Ended September 30,
2023
Total revenue
$
543,776
$
368,244
$
174,933
$
1,086,953
$
—
$
1,086,953
Elimination of intersegment revenue
(23,282
)
(2,795
)
(171
)
(26,248
)
—
(26,248
)
Revenue from external customers
$
520,494
$
365,449
$
174,762
$
1,060,705
$
—
$
1,060,705
Income (loss) from construction
operations
$
46,889
$
123
$
(38,429
)
$
8,583
(d)
$
(21,149
)(b)
$
(12,566
)
Capital expenditures
$
11,941
$
241
$
391
$
12,573
$
2,394
$
14,967
Depreciation and amortization(c)
$
7,698
$
743
$
615
$
9,056
$
2,175
$
11,231
____________________________
(a)
During the three months ended
September 30, 2024, the Company’s loss from construction operations
was impacted by unfavorable adjustments of $101.6 million ($74.5
million after tax, or $1.42 per diluted share) related to an
unexpected adverse arbitration decision on a legacy dispute related
to a completed Civil segment bridge project in California, which
the Company will appeal; $20.0 million ($14.7 million after tax, or
$0.28 per diluted share) related to a settlement on a legacy
dispute related to a completed Building segment government facility
project in Florida; $17.7 million ($13.0 million after tax, or
$0.25 per diluted share) due to an unfavorable judgment on a
completed Specialty Contractors segment mass-transit project in
California; and $11.5 million ($8.4 million after tax, or $0.16 per
diluted share) due to an unfavorable arbitration ruling on a
completed Specialty Contractors segment mass-transit project in New
York. The period was also impacted by a favorable adjustment of
$18.4 million ($13.5 million after tax, or $0.26 per diluted share)
due to a settlement of a claim associated with a completed Civil
segment highway tunneling project in the Western United States.
(b)
Consists primarily of corporate
general and administrative expenses. Corporate general and
administrative expenses for the three months ended September 30,
2024 and 2023 included share-based compensation expense of $16.5
million ($12.1 million after tax, or $0.23 per diluted share) and
$3.5 million ($2.5 million after tax, or $0.05 per diluted share),
respectively. The increase in share-based compensation expense in
the third quarter of 2024 was primarily due to a substantial
increase in the Company’s stock price during the period, which
impacted the fair value of liability-classified awards. These
awards are remeasured at fair value at the end of each reporting
period with the change recognized in earnings.
(c)
Depreciation and amortization is
included in income (loss) from construction operations.
(d)
During the three months ended
September 30, 2023, the Company’s income (loss) from construction
operations was adversely impacted by $16.9 million ($12.3 million
after tax, or $0.24 per diluted share) of unfavorable non-cash
adjustments due to changes in estimates on the Specialty
Contractors segment’s electrical and mechanical scope of a
transportation project in the Northeast associated with changes in
the expected recovery on certain unapproved change orders resulting
from ongoing negotiations, $14.0 million ($10.9 million after tax,
or $0.21 per diluted share) of unfavorable adjustments on the same
transportation project in the Northeast, split evenly between the
Civil and Building segments, primarily due to the settlement of
certain change orders, changes in estimates due to recent
negotiations and incremental cost incurred during project closeout,
and a $9.4 million ($6.8 million after tax, or $0.13 per diluted
share) unfavorable adjustment due to ongoing negotiations and an
anticipated settlement on a completed Specialty Contractors segment
mass-transit project in California. During the third quarter of
2023, the Company reached a settlement that impacted multiple
components of a Civil segment mass-transit project in California,
which included the resolution of certain ongoing disputes and
increased the expected profit from work to be performed in the
future. The settlement resulted in an unfavorable non-cash
adjustment of $23.2 million ($16.8 million after tax, or $0.32 per
diluted share) to one component of the project that is nearing
completion, partially offset by a favorable adjustment of $8.8
million ($7.0 million after tax, or $0.13 per diluted share) on the
other component of the project that has substantial scope of work
remaining. As a result of the settlement, the net unfavorable
impact to the period from these two adjustments is expected to be
mitigated by the increased profit generated from future work on the
project.
Tutor Perini
Corporation
Segment Information
(continued)
Unaudited
Reportable Segments
(in thousands)
Civil
Building
Specialty
Contractors
Total
Corporate
Consolidated
Total
Nine Months Ended September 30,
2024
Total revenue
$
1,649,421
$
1,313,114
$
429,152
$
3,391,687
$
—
$
3,391,687
Elimination of intersegment revenue
(84,873
)
(47,591
)
50
(132,414
)
—
(132,414
)
Revenue from external customers
$
1,564,548
$
1,265,523
$
429,202
$
3,259,273
$
—
$
3,259,273
Income (loss) from construction
operations
$
133,785
$
17,272
$
(83,069
)
$
67,988
(a)
$
(85,496
)(b)
$
(17,508
)
Capital expenditures
$
21,847
$
523
$
326
$
22,696
$
5,570
$
28,266
Depreciation and amortization(c)
$
31,699
$
1,749
$
1,741
$
35,189
$
5,909
$
41,098
Nine Months Ended September 30,
2023
Total revenue
$
1,477,553
$
919,468
$
508,004
$
2,905,025
$
—
$
2,905,025
Elimination of intersegment revenue
(53,066
)
6,976
(179
)
(46,269
)
—
(46,269
)
Revenue from external customers
$
1,424,487
$
926,444
$
507,825
$
2,858,756
$
—
$
2,858,756
Income (loss) from construction
operations
$
170,308
$
(83,917
)
$
(120,709
)
$
(34,318
)(d)
$
(57,805
)(b)
$
(92,123
)
Capital expenditures
$
36,649
$
3,716
$
1,091
$
41,456
$
4,134
$
45,590
Depreciation and amortization(c)
$
21,753
$
1,655
$
1,856
$
25,264
$
6,721
$
31,985
____________________________
(a)
During the nine months ended
September 30, 2024, the Company’s income (loss) from construction
operations was impacted by unfavorable adjustments of $101.6
million ($74.5 million after tax, or $1.43 per diluted share) in
the third quarter related to an unexpected adverse arbitration
decision on a legacy dispute related to a completed Civil segment
bridge project in California, which the Company will appeal; $20.0
million ($14.7 million after tax, or $0.28 per diluted share) in
the third quarter related to a settlement on a legacy dispute
related to a completed Building segment government facility project
in Florida; $17.7 million ($13.0 million after tax, or $0.25 per
diluted share) in the third quarter due to an unfavorable judgment
on a completed Specialty Contractors segment mass-transit project
in California; $12.4 million ($9.1 million after tax, or $0.17 per
diluted share) in the second quarter due to the impact of a
settlement on two completed Civil segment highway projects in the
Northeast; and $12.0 million ($8.8 million after tax, or $0.17 per
diluted share) in the first quarter 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; and $11.5 million ($8.4 million after tax, or $0.16 per
diluted share) in the third quarter due to an unfavorable
arbitration ruling on a completed Specialty Contractors segment
mass-transit project in New York. The period was also impacted by
favorable adjustments of $18.4 million ($13.5 million after tax, or
$0.26 per diluted share) in the third quarter due to a settlement
of a claim associated with a completed Civil segment highway
tunneling project in the Western United States and $10.2 million
($7.5 million after tax, or $0.14 per diluted share) in the first
quarter 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. Corporate general and
administrative expenses for the nine months ended September 30,
2024 and 2023 included share-based compensation expense of $39.0
million ($28.6 million after tax, or $0.55 per diluted share) and
$9.1 million ($6.6 million after tax, or $0.13 per diluted share),
respectively. The increase in share-based compensation expense in
the current-year period was primarily due to a substantial increase
in the Company’s stock price during the period, which impacted the
fair value of liability-classified awards. These awards are
remeasured at fair value at the end of each reporting period with
the change recognized in earnings.
(c)
Depreciation and amortization is
included in income (loss) from construction operations.
(d)
During the nine months ended
September 30, 2023, the Company’s income (loss) from construction
operations was 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 after tax, or $1.16
per diluted share) in the first quarter, of which $72.2 million
impacted the Building segment and $11.4 million impacted the
Specialty Contractors segment; $57.0 million ($41.4 million after
tax, or $0.80 per diluted share) of unfavorable non-cash
adjustments due to changes in estimates on the Specialty
Contractors segment’s electrical and mechanical scope of a
transportation project in the Northeast associated with changes in
the expected recovery on certain unapproved change orders resulting
from ongoing negotiations; $27.5 million ($21.4 million after tax,
or $0.41 per diluted share) of unfavorable adjustments on the same
transportation project in the Northeast, split evenly between the
Civil and Building segments, primarily due to the settlement of
certain change orders, changes in estimates due to recent
negotiations and incremental cost incurred during project closeout;
net favorable adjustments of $25.6 million ($20.3 million after
tax, or $0.39 per diluted share) for a Civil segment mass-transit
project in California that resulted from changes in estimates due
to improved performance; a non-cash charge of $25.1 million ($18.2
million after tax, or $0.35 per diluted share) in the second
quarter of 2023 that resulted from an adverse legal ruling on a
Specialty Contractors segment educational facilities project in New
York; and a $9.4 million ($6.8 million after tax, or $0.13 per
diluted share) unfavorable adjustment in the third quarter due to
ongoing negotiations and an anticipated settlement on a completed
Specialty Contractors segment mass-transit project in California.
During the third quarter of 2023, the Company reached a settlement
that impacted multiple components of a Civil segment mass-transit
project in California, which included the resolution of certain
ongoing disputes and increased the expected profit from work to be
performed in the future. The settlement resulted in an unfavorable
non-cash adjustment of $23.2 million ($16.8 million after tax, or
$0.32 per diluted share) to one component of the project that is
nearing completion, partially offset by a favorable adjustment of
$8.8 million ($7.0 million after tax, or $0.14 per diluted share)
on the other component of the project that has substantial scope of
work remaining. As a result of the settlement, the net unfavorable
impact to the period from these two adjustments is expected to be
mitigated by the increased profit generated from future work on the
project.
Tutor Perini
Corporation
Condensed Consolidated Balance
Sheets
Unaudited
(in thousands, except share and per share
amounts)
As of September 30,
2024
As of December 31,
2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents ($135,688 and
$173,118 related to variable interest entities (“VIEs”))
$
287,403
$
380,564
Restricted cash
13,994
14,116
Restricted investments
135,493
130,287
Accounts receivable ($107,158 and $84,014
related to VIEs)
1,310,683
1,054,014
Retention receivable ($166,568 and
$161,187 related to VIEs)
549,736
580,926
Costs and estimated earnings in excess of
billings ($76,698 and $58,089 related to VIEs)
966,251
1,143,846
Other current assets ($20,421 and $26,725
related to VIEs)
188,220
217,601
Total current assets
3,451,780
3,521,354
PROPERTY AND EQUIPMENT ("P&E"),
net of accumulated depreciation of $559,333 and $534,171 (net
P&E of $25,476 and $35,135 related to VIEs)
427,053
441,291
GOODWILL
205,143
205,143
INTANGIBLE ASSETS, NET
66,628
68,305
DEFERRED INCOME TAXES
111,367
74,083
OTHER ASSETS
124,530
119,680
TOTAL ASSETS
$
4,386,501
$
4,429,856
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt
$
25,724
$
117,431
Accounts payable ($35,486 and $24,160
related to VIEs)
651,676
466,545
Retention payable ($18,276 and $22,841
related to VIEs)
226,033
223,138
Billings in excess of costs and estimated
earnings ($361,866 and $439,759 related to VIEs)
1,052,007
1,103,530
Accrued expenses and other current
liabilities ($16,813 and $18,206 related to VIEs)
276,690
214,309
Total current liabilities
2,232,130
2,124,953
LONG-TERM DEBT, less current
maturities, net of unamortized discount and debt issuance costs
totaling $30,020 and $11,000
655,706
782,314
OTHER LONG-TERM LIABILITIES
266,976
238,678
TOTAL LIABILITIES
3,154,812
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 52,434,803 and
52,025,497 shares
52,435
52,025
Additional paid-in capital
1,148,196
1,146,204
Retained earnings
48,856
133,146
Accumulated other comprehensive loss
(35,984
)
(39,787
)
Total stockholders' equity
1,213,503
1,291,588
Noncontrolling interests
18,186
(7,677
)
TOTAL EQUITY
1,231,689
1,283,911
TOTAL LIABILITIES AND EQUITY
$
4,386,501
$
4,429,856
Tutor Perini
Corporation
Condensed Consolidated
Statements of Cash Flows
Unaudited
Nine Months Ended September
30,
(in thousands)
2024
2023
Cash Flows from Operating
Activities:
Net loss
$
(46,131
)
$
(91,519
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation
39,421
30,308
Amortization of intangible assets
1,677
1,677
Share-based compensation expense
38,961
9,103
Change in debt discounts and deferred debt
issuance costs
5,887
2,992
Deferred income taxes
(39,396
)
(61,146
)
(Gain) loss on sale of property and
equipment
555
(5,077
)
Changes in other components of working
capital
172,298
296,839
Other long-term liabilities
4,376
(2,976
)
Other, net
(3,678
)
610
NET CASH PROVIDED BY OPERATING
ACTIVITIES
173,970
180,811
Cash Flows from Investing
Activities:
Acquisition of property and equipment
(28,266
)
(45,590
)
Proceeds from sale of property and
equipment
2,941
9,006
Investments in securities
(25,783
)
(17,986
)
Proceeds from maturities and sales of
investments in securities
23,812
11,134
NET CASH USED IN INVESTING
ACTIVITIES
(27,296
)
(43,436
)
Cash Flows from Financing
Activities:
Proceeds from debt
642,833
702,427
Repayment of debt
(842,127
)
(758,473
)
Cash payments related to share-based
compensation
(3,257
)
(737
)
Distributions paid to noncontrolling
interests
(12,400
)
(26,500
)
Contributions from noncontrolling
interests
87
4,500
Debt issuance, extinguishment and
modification costs
(25,093
)
(500
)
NET CASH USED IN FINANCING
ACTIVITIES
(239,957
)
(79,283
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
(93,283
)
58,092
Cash, cash equivalents and restricted
cash at beginning of period
394,680
273,831
Cash, cash equivalents and restricted
cash at end of period
$
301,397
$
331,923
Tutor Perini
Corporation
Backlog Information
Unaudited
(in millions)
Backlog at June 30,
2024
New Awards in the
Three Months Ended September
30, 2024(a)
Revenue Recognized in
the
Three Months Ended
September 30, 2024
Backlog at September
30, 2024
Civil
$
4,364.6
$
3,076.2
$
(545.8
)
$
6,895.0
Building
4,188.7
1,385.1
(435.8
)
5,138.0
Specialty Contractors
1,865.6
227.8
(101.2
)
1,992.2
Total
$
10,418.9
$
4,689.1
$
(1,082.8
)
$
14,025.2
(in millions)
Backlog at December 31,
2023
New Awards in the
Nine Months Ended September
30, 2024(a)
Revenue Recognized in
the
Nine Months Ended
September 30, 2024
Backlog at September
30, 2024
Civil
$
4,240.6
$
4,218.9
$
(1,564.5
)
$
6,895.0
Building
4,177.5
2,226.1
(1,265.6
)
5,138.0
Specialty Contractors
1,740.3
681.1
(429.2
)
1,992.2
Total
$
10,158.4
$
7,126.1
$
(3,259.3
)
$
14,025.2
____________________________
(a)
New awards consist of the
original contract price of projects added to 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/20241106899343/en/
Tutor Perini Corporation Jorge Casado, 818-362-8391 Vice
President, Investor Relations & Corporate Communications
www.tutorperini.com
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