Tutor Perini Reports Second Quarter 2024 Results
-
Strong operating cash flow of
$53.1 million in Q2 2024 and$151.4 million in the first six months of 2024 -
Revenue of
$1.1 billion in Q2 2024, up 10% compared to Q2 2023 -
Backlog of
$10.4 billion at the end of Q2 2024, up modestly compared to the end of Q1 2024; anticipating continued strong backlog growth in 2024 and 2025 -
Affirming 2024 EPS guidance in range of
$0.85 to$1.10
Revenue for the second quarter of 2024 was
Income from construction operations for the second quarter of 2024 was
Backlog grew to
Outlook and Guidance
“We generated strong operating cash flow in the second quarter, and our operating cash flow for the first half of 2024 was our second-highest result for the first six months of any year,” remarked
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
Second 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; 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
|
||||||||||||||||
Condensed Consolidated Statements of Operations |
||||||||||||||||
Unaudited |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
(in thousands, except per common share amounts) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
REVENUE |
|
$ |
1,127,470 |
|
|
$ |
1,021,751 |
|
|
$ |
2,176,457 |
|
|
$ |
1,798,051 |
|
COST OF OPERATIONS |
|
|
(1,010,392 |
) |
|
|
(956,790 |
) |
|
|
(1,944,129 |
) |
|
|
(1,757,259 |
) |
GROSS PROFIT |
|
|
117,078 |
|
|
|
64,961 |
|
|
|
232,328 |
|
|
|
40,792 |
|
General and administrative expenses |
|
|
(76,585 |
) |
|
|
(62,573 |
) |
|
|
(143,029 |
) |
|
|
(120,349 |
) |
INCOME (LOSS) FROM CONSTRUCTION OPERATIONS |
|
|
40,493 |
|
|
|
2,388 |
|
|
|
89,299 |
|
|
|
(79,557 |
) |
Other income, net |
|
|
5,838 |
|
|
|
3,058 |
|
|
|
11,149 |
|
|
|
9,475 |
|
Interest expense |
|
|
(23,084 |
) |
|
|
(22,016 |
) |
|
|
(42,391 |
) |
|
|
(43,529 |
) |
INCOME (LOSS) BEFORE INCOME TAXES |
|
|
23,247 |
|
|
|
(16,570 |
) |
|
|
58,057 |
|
|
|
(113,611 |
) |
Income tax (expense) benefit |
|
|
(7,278 |
) |
|
|
(194 |
) |
|
|
(14,586 |
) |
|
|
47,918 |
|
NET INCOME (LOSS) |
|
|
15,969 |
|
|
|
(16,764 |
) |
|
|
43,471 |
|
|
|
(65,693 |
) |
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS |
|
|
15,157 |
|
|
|
20,770 |
|
|
|
26,899 |
|
|
|
21,037 |
|
NET INCOME (LOSS) ATTRIBUTABLE TO TUTOR PERINI CORPORATION |
|
$ |
812 |
|
|
$ |
(37,534 |
) |
|
$ |
16,572 |
|
|
$ |
(86,730 |
) |
BASIC EARNINGS (LOSS) PER COMMON SHARE |
|
$ |
0.02 |
|
|
$ |
(0.72 |
) |
|
$ |
0.32 |
|
|
$ |
(1.68 |
) |
DILUTED EARNINGS (LOSS) PER COMMON SHARE |
|
$ |
0.02 |
|
|
$ |
(0.72 |
) |
|
$ |
0.31 |
|
|
$ |
(1.68 |
) |
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
||||||||
BASIC |
|
|
52,327 |
|
|
|
51,803 |
|
|
|
52,210 |
|
|
|
51,678 |
|
DILUTED |
|
|
52,848 |
|
|
|
51,803 |
|
|
|
52,682 |
|
|
|
51,678 |
|
|
||||||||||||||||||||
Segment Information |
||||||||||||||||||||
Unaudited |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
Reportable Segments |
|
|
|
|
||||||||||||||||
(in thousands) |
Civil |
Building |
Specialty C ontractors |
Total |
|
Corporate |
|
Consolidated T otal |
||||||||||||
Three Months Ended |
|
|
|
|
|
|
|
|
||||||||||||
Total revenue |
$ |
577,519 |
|
$ |
433,797 |
|
$ |
163,066 |
|
$ |
1,174,382 |
|
|
$ |
— |
|
|
$ |
1,174,382 |
|
Elimination of intersegment revenue |
|
(31,031 |
) |
|
(15,931 |
) |
|
50 |
|
|
(46,912 |
) |
|
|
— |
|
|
|
(46,912 |
) |
Revenue from external customers |
$ |
546,488 |
|
$ |
417,866 |
|
$ |
163,116 |
|
$ |
1,127,470 |
|
|
$ |
— |
|
|
$ |
1,127,470 |
|
Income (loss) from construction operations |
$ |
75,587 |
|
$ |
5,047 |
|
$ |
(7,846 |
) |
$ |
72,788 |
(a) |
$ |
(32,295 |
)(b) |
$ |
40,493 |
|
||
Capital expenditures |
$ |
9,479 |
|
$ |
68 |
|
$ |
(30 |
) |
$ |
9,517 |
|
|
$ |
1,401 |
|
|
$ |
10,918 |
|
Depreciation and amortization(c) |
$ |
10,727 |
|
$ |
585 |
|
$ |
574 |
|
$ |
11,886 |
|
|
$ |
2,120 |
|
|
$ |
14,006 |
|
|
|
|
|
|
|
|
|
|
||||||||||||
Three Months Ended |
|
|
|
|
|
|
|
|
||||||||||||
Total revenue |
$ |
555,553 |
|
$ |
321,933 |
|
$ |
136,323 |
|
$ |
1,013,809 |
|
|
$ |
— |
|
|
$ |
1,013,809 |
|
Elimination of intersegment revenue |
|
(1,430 |
) |
|
9,409 |
|
|
(37 |
) |
|
7,942 |
|
|
|
— |
|
|
|
7,942 |
|
Revenue from external customers |
$ |
554,123 |
|
$ |
331,342 |
|
$ |
136,286 |
|
$ |
1,021,751 |
|
|
$ |
— |
|
|
$ |
1,021,751 |
|
Income (loss) from construction operations |
$ |
105,407 |
|
$ |
(13,831 |
) |
$ |
(69,832 |
) |
$ |
21,744 |
(d) |
$ |
(19,356 |
)(b) |
$ |
2,388 |
|
||
Capital expenditures |
$ |
9,643 |
|
$ |
1,458 |
|
$ |
256 |
|
$ |
11,357 |
|
|
$ |
1,470 |
|
|
$ |
12,827 |
|
Depreciation and amortization(c) |
$ |
7,074 |
|
$ |
455 |
|
$ |
622 |
|
$ |
8,151 |
|
|
$ |
2,195 |
|
|
$ |
10,346 |
|
______________________________ | ||
(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 |
||||||||||||||||||||
Unaudited |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
Reportable Segments |
|
|
|
|
||||||||||||||||
(in thousands) |
Civil |
Building |
Specialty C ontractors |
Total |
|
Corporate |
|
Consolidated T otal |
||||||||||||
Six Months Ended |
|
|
|
|
|
|
|
|
||||||||||||
Total revenue |
$ |
1,080,341 |
|
$ |
855,973 |
|
$ |
327,946 |
|
$ |
2,264,260 |
|
|
$ |
— |
|
|
$ |
2,264,260 |
|
Elimination of intersegment revenue |
|
(61,688 |
) |
|
(26,165 |
) |
|
50 |
|
|
(87,803 |
) |
|
|
— |
|
|
|
(87,803 |
) |
Revenue from external customers |
$ |
1,018,653 |
|
$ |
829,808 |
|
$ |
327,996 |
|
$ |
2,176,457 |
|
|
$ |
— |
|
|
$ |
2,176,457 |
|
Income (loss) from construction operations |
$ |
146,330 |
|
$ |
21,167 |
|
$ |
(26,158 |
) |
$ |
141,339 |
(a) |
$ |
(52,040 |
)(b) |
$ |
89,299 |
|
||
Capital expenditures |
$ |
17,610 |
|
$ |
285 |
|
$ |
273 |
|
$ |
18,168 |
|
|
$ |
3,184 |
|
|
$ |
21,352 |
|
Depreciation and amortization(c) |
$ |
20,981 |
|
$ |
1,170 |
|
$ |
1,172 |
|
$ |
23,323 |
|
|
$ |
4,265 |
|
|
$ |
27,588 |
|
|
|
|
|
|
|
|
|
|
||||||||||||
Six Months Ended |
|
|
|
|
|
|
|
|
||||||||||||
Total revenue |
$ |
933,777 |
|
$ |
551,224 |
|
$ |
333,071 |
|
$ |
1,818,072 |
|
|
$ |
— |
|
|
$ |
1,818,072 |
|
Elimination of intersegment revenue |
|
(29,784 |
) |
|
9,771 |
|
|
(8 |
) |
|
(20,021 |
) |
|
|
— |
|
|
|
(20,021 |
) |
Revenue from external customers |
$ |
903,993 |
|
$ |
560,995 |
|
$ |
333,063 |
|
$ |
1,798,051 |
|
|
$ |
— |
|
|
$ |
1,798,051 |
|
Income (loss) from construction operations |
$ |
123,419 |
|
$ |
(84,040 |
) |
$ |
(82,280 |
) |
$ |
(42,901 |
)(d) |
$ |
(36,656 |
)(b) |
$ |
(79,557 |
) |
||
Capital expenditures |
$ |
24,708 |
|
$ |
3,475 |
|
$ |
700 |
|
$ |
28,883 |
|
|
$ |
1,740 |
|
|
$ |
30,623 |
|
Depreciation and amortization(c) |
$ |
14,055 |
|
$ |
912 |
|
$ |
1,241 |
|
$ |
16,208 |
|
|
$ |
4,546 |
|
|
$ |
20,754 |
|
______________________________ | ||
(a) |
During the six months ended |
|
(b) |
Consists primarily of corporate general and administrative expenses. Corporate general and administrative expenses for the six months ended |
|
(c) |
Depreciation and amortization is included in income (loss) from construction operations. |
|
(d) |
During the six months ended |
|
||||||||
Condensed Consolidated Balance Sheets |
||||||||
Unaudited |
||||||||
(in thousands, except share and per share amounts) |
|
As of 2 024 |
|
As of 2 023 |
||||
ASSETS |
||||||||
CURRENT ASSETS: |
|
|
|
|
||||
Cash and cash equivalents ( |
|
$ |
267,072 |
|
|
$ |
380,564 |
|
Restricted cash |
|
|
12,417 |
|
|
|
14,116 |
|
Restricted investments |
|
|
134,182 |
|
|
|
130,287 |
|
Accounts receivable ( |
|
|
1,087,369 |
|
|
|
1,054,014 |
|
Retention receivable ( |
|
|
546,668 |
|
|
|
580,926 |
|
Costs and estimated earnings in excess of billings ( |
|
|
1,160,710 |
|
|
|
1,143,846 |
|
Other current assets ( |
|
|
187,822 |
|
|
|
217,601 |
|
Total current assets |
|
|
3,396,240 |
|
|
|
3,521,354 |
|
PROPERTY AND EQUIPMENT ("P&E"), net of accumulated depreciation of |
|
|
434,371 |
|
|
|
441,291 |
|
|
|
|
205,143 |
|
|
|
205,143 |
|
INTANGIBLE ASSETS, NET |
|
|
67,187 |
|
|
|
68,305 |
|
DEFERRED INCOME TAXES |
|
|
67,284 |
|
|
|
74,083 |
|
OTHER ASSETS |
|
|
123,523 |
|
|
|
119,680 |
|
TOTAL ASSETS |
|
$ |
4,293,748 |
|
|
$ |
4,429,856 |
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
||||||||
CURRENT LIABILITIES: |
|
|
|
|
||||
Current maturities of long-term debt |
|
$ |
18,602 |
|
|
$ |
117,431 |
|
Accounts payable ( |
|
|
622,776 |
|
|
|
466,545 |
|
Retention payable ( |
|
|
223,962 |
|
|
|
223,138 |
|
Billings in excess of costs and estimated earnings ( |
|
|
987,447 |
|
|
|
1,103,530 |
|
Accrued expenses and other current liabilities ( |
|
|
207,877 |
|
|
|
214,309 |
|
Total current liabilities |
|
|
2,060,664 |
|
|
|
2,124,953 |
|
LONG-TERM DEBT, less current maturities, net of unamortized discount and debt issuance costs totaling |
|
|
657,835 |
|
|
|
782,314 |
|
OTHER LONG-TERM LIABILITIES |
|
|
259,132 |
|
|
|
238,678 |
|
TOTAL LIABILITIES |
|
|
2,977,631 |
|
|
|
3,145,945 |
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
||||
EQUITY |
|
|
|
|
||||
Stockholders' equity: |
|
|
|
|
||||
Preferred stock - authorized 1,000,000 shares ( |
|
|
— |
|
|
|
— |
|
Common stock - authorized 112,500,000 shares ( |
|
|
52,389 |
|
|
|
52,025 |
|
Additional paid-in capital |
|
|
1,148,074 |
|
|
|
1,146,204 |
|
Retained earnings |
|
|
149,718 |
|
|
|
133,146 |
|
Accumulated other comprehensive loss |
|
|
(40,226 |
) |
|
|
(39,787 |
) |
Total stockholders' equity |
|
|
1,309,955 |
|
|
|
1,291,588 |
|
Noncontrolling interests |
|
|
6,162 |
|
|
|
(7,677 |
) |
TOTAL EQUITY |
|
|
1,316,117 |
|
|
|
1,283,911 |
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
4,293,748 |
|
|
$ |
4,429,856 |
|
|
|||||||
Condensed Consolidated Statements of Cash Flows |
|||||||
Unaudited |
|||||||
Six Months Ended |
|||||||
(in thousands) |
2024 |
|
2023 |
||||
Cash Flows from Operating Activities: |
|
|
|
||||
Net income (loss) |
$ |
43,471 |
|
|
$ |
(65,693 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
||||
Depreciation |
|
26,470 |
|
|
|
19,636 |
|
Amortization of intangible assets |
|
1,118 |
|
|
|
1,118 |
|
Share-based compensation expense |
|
22,437 |
|
|
|
5,637 |
|
Change in debt discounts and deferred debt issuance costs |
|
4,366 |
|
|
|
2,005 |
|
Deferred income taxes |
|
5,969 |
|
|
|
(68,256 |
) |
(Gain) loss on sale of property and equipment |
|
595 |
|
|
|
(5,038 |
) |
Changes in other components of working capital |
|
49,150 |
|
|
|
188,761 |
|
Other long-term liabilities |
|
1,188 |
|
|
|
(2,152 |
) |
Other, net |
|
(3,351 |
) |
|
|
1,632 |
|
NET CASH PROVIDED BY OPERATING ACTIVITIES |
|
151,413 |
|
|
|
77,650 |
|
|
|
|
|||||
Cash Flows from Investing Activities: |
|
|
|
||||
Acquisition of property and equipment |
|
(21,352 |
) |
|
|
(30,623 |
) |
Proceeds from sale of property and equipment |
|
1,434 |
|
|
|
6,758 |
|
Investments in securities |
|
(22,073 |
) |
|
|
(14,521 |
) |
Proceeds from maturities and sales of investments in securities |
|
17,979 |
|
|
|
9,227 |
|
|
|
(24,012 |
) |
|
|
(29,159 |
) |
|
|
|
|||||
Cash Flows from Financing Activities: |
|
|
|
||||
Proceeds from debt |
|
597,900 |
|
|
|
537,500 |
|
Repayment of debt |
|
(800,819 |
) |
|
|
(571,332 |
) |
Cash payments related to share-based compensation |
|
(2,194 |
) |
|
|
(284 |
) |
Distributions paid to noncontrolling interests |
|
(12,400 |
) |
|
|
(15,250 |
) |
Contributions from noncontrolling interests |
|
— |
|
|
|
2,000 |
|
Debt issuance, extinguishment and modification costs |
|
(25,079 |
) |
|
|
(497 |
) |
|
|
(242,592 |
) |
|
|
(47,863 |
) |
|
|
|
|||||
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
(115,191 |
) |
|
|
628 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
394,680 |
|
|
|
273,831 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
279,489 |
|
|
$ |
274,459 |
|
|
||||||||||||||||
Backlog Information |
||||||||||||||||
Unaudited |
||||||||||||||||
(in millions) |
|
Backlog at M arch 31, 2024 |
|
New Awards in the T hree Months Ended J une 30, 2024(a) |
|
Revenue Recognized in the T hree Months Ended J une 30, 2024 |
|
Backlog at J une 30, 2024 |
||||||||
Civil |
|
$ |
4,096.6 |
|
$ |
814.5 |
|
$ |
(546.5 |
) |
|
$ |
4,364.6 |
|||
Building |
|
|
4,169.9 |
|
|
|
436.7 |
|
|
|
(417.9 |
) |
|
|
4,188.7 |
|
Specialty Contractors |
|
|
1,715.7 |
|
|
|
313.0 |
|
|
|
(163.1 |
) |
|
|
1,865.6 |
|
Total |
|
$ |
9,982.2 |
|
|
$ |
1,564.2 |
|
|
$ |
(1,127.5 |
) |
|
$ |
10,418.9 |
|
(in millions) |
|
Backlog at D ecember 31, 2023 |
|
New Awards in the S ix Months Ended J une 30, 2024(a) |
|
Revenue Recognized in the S ix Months Ended J une 30, 2024 |
|
Backlog at J une 30, 2024 |
||||||||
Civil |
|
$ |
4,240.6 |
|
|
$ |
1,142.7 |
|
|
$ |
(1,018.7 |
) |
|
$ |
4,364.6 |
|
Building |
|
|
4,177.5 |
|
|
|
841.0 |
|
|
|
(829.8 |
) |
|
|
4,188.7 |
|
Specialty Contractors |
|
|
1,740.3 |
|
|
|
453.3 |
|
|
|
(328.0 |
) |
|
|
1,865.6 |
|
Total |
|
$ |
10,158.4 |
|
|
$ |
2,437.0 |
|
|
$ |
(2,176.5 |
) |
|
$ |
10,418.9 |
|
______________________________ | ||
(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/20240801443540/en/
Vice President, Investor Relations & Corporate Communications
www.tutorperini.com
Source: