Tutor Perini Reports Third Quarter 2024 Results
-
Strong year-to-date operating cash flow of
$174.0 million throughSeptember 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 byDecember 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
With the significant operating cash flow expected in the fourth quarter of 2024, the Company anticipates prepaying
Revenue for the third quarter of 2024 was
Loss from construction operations for the third quarter of 2024 was
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
The Company's loss from construction operations for the third quarter of 2024 was also negatively impacted by
Management Remarks
Backlog Update
As noted above, backlog grew to
The largest new awards and contract adjustments during the third quarter of 2024 included:
-
$1.66 billion mass-transit project inHawaii ; -
$1.1 billion water conveyance tunnel project inNew York ; -
$1 billion -plus healthcare campus project inCalifornia ; -
$138 million of additional funding for certain mass-transit projects inCalifornia ; and -
$113 million military facility project inGuam .
In the fourth quarter of 2024, the Company announced the following:
-
The multi-billion-dollar
Manhattan Jail project inNew 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 inGuam .
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
Outlook and Guidance
As previously announced on
Third Quarter 2024 Conference Call
The Company will host a conference call at
The conference call will be webcast live over the Internet and can be accessed by all interested parties on
About
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
|
||||||||||||||||
Condensed Consolidated Statements of Operations |
||||||||||||||||
Unaudited |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
(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 |
|
||||||||||||||||||||||||||
Segment Information |
||||||||||||||||||||||||||
Unaudited |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Reportable Segments |
|
|
|
|
||||||||||||||||||||||
(in thousands) |
Civil |
Building |
Specialty Contractors |
Total |
|
Corporate |
|
Consolidated Total |
||||||||||||||||||
Three Months Ended |
|
|
|
|
|
|
|
|
||||||||||||||||||
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 |
|
|
|
|
|
|
|
|
||||||||||||||||||
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 |
|
(b) |
Consists primarily of corporate general and administrative expenses. Corporate general and administrative expenses for the three months ended |
|
(c) |
Depreciation and amortization is included in income (loss) from construction operations. |
|
(d) |
During the three months ended |
|
||||||||||||||||||||||||||
Segment Information (continued) |
||||||||||||||||||||||||||
Unaudited |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Reportable Segments |
|
|
|
|
||||||||||||||||||||||
(in thousands) |
Civil |
Building |
Specialty Contractors |
Total |
|
Corporate |
|
Consolidated Total |
||||||||||||||||||
Nine Months Ended |
|
|
|
|
|
|
|
|
||||||||||||||||||
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 |
|
|
|
|
|
|
|
|
||||||||||||||||||
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 |
|
(b) |
Consists primarily of corporate general and administrative expenses. Corporate general and administrative expenses for the nine months ended |
|
(c) |
Depreciation and amortization is included in income (loss) from construction operations. |
|
(d) |
During the nine months ended |
|
||||||||
Condensed Consolidated Balance Sheets |
||||||||
Unaudited |
||||||||
(in thousands, except share and per share amounts) |
|
As of |
|
As of |
||||
ASSETS |
||||||||
CURRENT ASSETS: |
|
|
|
|
||||
Cash and cash equivalents ( |
|
$ |
287,403 |
|
|
$ |
380,564 |
|
Restricted cash |
|
|
13,994 |
|
|
|
14,116 |
|
Restricted investments |
|
|
135,493 |
|
|
|
130,287 |
|
Accounts receivable ( |
|
|
1,310,683 |
|
|
|
1,054,014 |
|
Retention receivable ( |
|
|
549,736 |
|
|
|
580,926 |
|
Costs and estimated earnings in excess of billings ( |
|
|
966,251 |
|
|
|
1,143,846 |
|
Other current assets ( |
|
|
188,220 |
|
|
|
217,601 |
|
Total current assets |
|
|
3,451,780 |
|
|
|
3,521,354 |
|
PROPERTY AND EQUIPMENT ("P&E"), net of accumulated depreciation of |
|
|
427,053 |
|
|
|
441,291 |
|
|
|
|
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 ( |
|
|
651,676 |
|
|
|
466,545 |
|
Retention payable ( |
|
|
226,033 |
|
|
|
223,138 |
|
Billings in excess of costs and estimated earnings ( |
|
|
1,052,007 |
|
|
|
1,103,530 |
|
Accrued expenses and other current liabilities ( |
|
|
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 |
|
|
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 ( |
|
|
— |
|
|
|
— |
|
Common stock - authorized 112,500,000 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 |
|
|
||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||
Unaudited |
||||||||
Nine Months Ended |
||||||||
(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 |
|
|
|
|
(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 |
) |
|
|
|
(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 |
|
|
||||||||||||||||
Backlog Information |
||||||||||||||||
Unaudited |
||||||||||||||||
(in millions) |
Backlog at
|
|
New Awards in the
Three Months Ended
|
|
Revenue Recognized in the
T
hree Months Ended
|
|
Backlog at
|
|||||||||
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
|
|
New Awards in the
Nine Months Ended
|
|
Revenue Recognized in the
N
ine Months Ended
|
|
Backlog at
|
|||||||||
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/
Vice President, Investor Relations & Corporate Communications
www.tutorperini.com
Source: