Tutor Perini Reports Fourth Quarter and Full Year 2023 Results
-
Record operating cash flow of
$308.5 million in 2023, up 49% compared to the prior record of$207.0 million in 2022 -
Term Loan B was paid down by an additional
$91 million onFebruary 23, 2024 , earlier than required -
Backlog increased 28% year-over-year to
$10.2 billion , providing visibility for strong revenue growth -
Backlog is expected to continue to grow significantly in 2024 and 2025, as the Company is tracking more than
$32 billion of near-term opportunities over this period -
Senior Notes refinancing is underway, with transaction expected to be completed by the end of
April 2024 -
Establishing initial EPS guidance for 2024 in the range of
$0.85 to$1.10
Loss from construction operations for 2023 was
The Company generated a record
Backlog as of
“We delivered a second consecutive year of record operating cash flow and grew our backlog substantially in 2023,” remarked
Outlook and Guidance
The Company continues to experience high demand for its services, supported by substantial funding in place at the state and local levels, as well as the
Based on its assessment of the current market and business outlook, the Company anticipates double-digit revenue growth in 2024 and a return to positive earnings, with substantially stronger earnings expected in 2025 and 2026. The Company is establishing its initial EPS guidance for 2024 at a range of
The Company is working to refinance its Senior Notes due in 2025 and anticipates that it will complete a refinancing transaction by the end of
Fourth Quarter 2023 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 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; 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; risks related to our international operations, such as uncertainty of
|
||||||||||||||||
Consolidated Statements of Operations |
||||||||||||||||
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Quarter Ended
|
|
Year Ended
|
||||||||||||
(in thousands, except per common share amounts) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
REVENUE |
|
$ |
1,021,471 |
|
|
$ |
906,648 |
|
|
$ |
3,880,227 |
|
|
$ |
3,790,755 |
|
COST OF OPERATIONS |
|
|
(972,552 |
) |
|
|
(943,498 |
) |
|
|
(3,739,603 |
) |
|
|
(3,761,143 |
) |
GROSS PROFIT (LOSS) |
|
|
48,919 |
|
|
|
(36,850 |
) |
|
|
140,624 |
|
|
|
29,612 |
|
General and administrative expenses |
|
|
(71,393 |
) |
|
|
(60,561 |
) |
|
|
(255,221 |
) |
|
|
(234,376 |
) |
LOSS FROM CONSTRUCTION OPERATIONS |
|
|
(22,474 |
) |
|
|
(97,411 |
) |
|
|
(114,597 |
) |
|
|
(204,764 |
) |
Other income, net |
|
|
4,758 |
|
|
|
1,618 |
|
|
|
17,200 |
|
|
|
6,732 |
|
Interest expense |
|
|
(21,315 |
) |
|
|
(19,927 |
) |
|
|
(85,157 |
) |
|
|
(69,638 |
) |
LOSS BEFORE INCOME TAXES |
|
|
(39,031 |
) |
|
|
(115,720 |
) |
|
|
(182,554 |
) |
|
|
(267,670 |
) |
Income tax benefit |
|
|
2,953 |
|
|
|
28,051 |
|
|
|
54,957 |
|
|
|
75,098 |
|
NET LOSS |
|
|
(36,078 |
) |
|
|
(87,669 |
) |
|
|
(127,597 |
) |
|
|
(192,572 |
) |
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS |
|
|
11,451 |
|
|
|
5,248 |
|
|
|
43,558 |
|
|
|
17,437 |
|
NET LOSS ATTRIBUTABLE TO TUTOR PERINI CORPORATION |
|
$ |
(47,529 |
) |
|
$ |
(92,917 |
) |
|
$ |
(171,155 |
) |
|
$ |
(210,009 |
) |
BASIC LOSS PER COMMON SHARE |
|
$ |
(0.91 |
) |
|
$ |
(1.80 |
) |
|
$ |
(3.30 |
) |
|
$ |
(4.09 |
) |
DILUTED LOSS PER COMMON SHARE |
|
$ |
(0.91 |
) |
|
$ |
(1.80 |
) |
|
$ |
(3.30 |
) |
|
$ |
(4.09 |
) |
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
||||||||
BASIC |
|
|
52,024 |
|
|
|
51,505 |
|
|
|
51,845 |
|
|
|
51,324 |
|
DILUTED |
|
|
52,024 |
|
|
|
51,505 |
|
|
|
51,845 |
|
|
|
51,324 |
|
|
||||||||||||||||||||||||||
Segment Information |
||||||||||||||||||||||||||
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Reportable Segments |
|
|
|
|
|
|
||||||||||||||||||
(in thousands) |
|
Civil |
|
Building |
|
Specialty
|
|
Total |
|
|
Corporate |
|
|
Consolidated
|
||||||||||||
Quarter ended |
|
|
|
|
|
|
|
|
||||||||||||||||||
Total revenue |
$ |
493,641 |
|
$ |
383,168 |
|
$ |
186,034 |
|
$ |
1,062,843 |
|
|
$ |
— |
|
|
$ |
1,062,843 |
|
||||||
Elimination of intersegment revenue |
|
(34,263 |
) |
|
(7,073 |
) |
|
(36 |
) |
|
(41,372 |
) |
|
|
— |
|
|
|
(41,372 |
) |
||||||
Revenue from external customers |
$ |
459,378 |
|
$ |
376,095 |
|
$ |
185,998 |
|
$ |
1,021,471 |
|
|
$ |
— |
|
|
$ |
1,021,471 |
|
||||||
Income (loss) from construction operations |
$ |
28,301 |
|
$ |
(7,289 |
) |
$ |
(24,113 |
) |
$ |
(3,101 |
) |
|
$ |
(19,373 |
) |
(a) |
$ |
(22,474 |
) |
||||||
Capital expenditures |
$ |
4,669 |
|
$ |
216 |
|
$ |
159 |
|
$ |
5,044 |
|
|
$ |
2,319 |
|
|
$ |
7,363 |
|
||||||
Depreciation and amortization(b) |
$ |
9,932 |
|
$ |
572 |
|
$ |
589 |
|
$ |
11,093 |
|
|
$ |
2,151 |
|
|
$ |
13,244 |
|
||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Quarter ended |
|
|
|
|
|
|
|
|
||||||||||||||||||
Total revenue |
$ |
478,806 |
|
$ |
345,320 |
|
$ |
140,229 |
|
$ |
964,355 |
|
|
$ |
— |
|
|
$ |
964,355 |
|
||||||
Elimination of intersegment revenue |
|
(39,246 |
) |
|
(18,388 |
) |
|
(73 |
) |
|
(57,707 |
) |
|
|
— |
|
|
|
(57,707 |
) |
||||||
Revenue from external customers |
$ |
439,560 |
|
$ |
326,932 |
|
$ |
140,156 |
|
$ |
906,648 |
|
|
$ |
— |
|
|
$ |
906,648 |
|
||||||
Income (loss) from construction operations |
$ |
9,071 |
|
$ |
(2,287 |
) |
$ |
(85,558 |
) |
$ |
(78,774 |
) |
|
$ |
(18,637 |
) |
(a) |
$ |
(97,411 |
) |
||||||
Capital expenditures |
$ |
11,116 |
|
$ |
1,360 |
|
$ |
343 |
|
$ |
12,819 |
|
|
$ |
4,152 |
|
|
$ |
16,971 |
|
||||||
Depreciation and amortization(b) |
$ |
6,932 |
|
$ |
452 |
|
$ |
559 |
|
$ |
7,943 |
|
|
$ |
2,367 |
|
|
$ |
10,310 |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Reportable Segments |
|
|
|
|
|
|
||||||||||||||||||||
(in thousands) |
Civil |
|
Building |
|
Specialty
|
|
Total |
|
|
Corporate |
|
|
Consolidated
|
|||||||||||||
Year ended |
|
|
|
|
|
|
|
|
||||||||||||||||||
Total revenue |
$ |
1,971,194 |
|
$ |
1,302,636 |
|
$ |
694,038 |
|
$ |
3,967,868 |
|
|
$ |
— |
|
|
$ |
3,967,868 |
|
||||||
Elimination of intersegment revenue |
|
(87,329 |
) |
|
(97 |
) |
|
(215 |
) |
|
(87,641 |
) |
|
|
— |
|
|
|
(87,641 |
) |
||||||
Revenue from external customers |
$ |
1,883,865 |
|
$ |
1,302,539 |
|
$ |
693,823 |
|
$ |
3,880,227 |
|
|
$ |
— |
|
|
$ |
3,880,227 |
|
||||||
Income (loss) from construction operations |
$ |
198,609 |
|
$ |
(91,206 |
) |
$ |
(144,822 |
) |
$ |
(37,419 |
) |
|
$ |
(77,178 |
) |
(a) |
$ |
(114,597 |
) |
||||||
Capital expenditures |
$ |
41,318 |
|
$ |
3,932 |
|
$ |
1,250 |
|
$ |
46,500 |
|
|
$ |
6,453 |
|
|
$ |
52,953 |
|
||||||
Depreciation and amortization(b) |
$ |
31,685 |
|
$ |
2,227 |
|
$ |
2,445 |
|
$ |
36,357 |
|
|
$ |
8,872 |
|
|
$ |
45,229 |
|
||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||
Year ended |
|
|
|
|
|
|
|
|
||||||||||||||||||
Total revenue |
$ |
1,956,968 |
|
$ |
1,305,468 |
|
$ |
813,531 |
|
$ |
4,075,967 |
|
|
$ |
— |
|
|
$ |
4,075,967 |
|
||||||
Elimination of intersegment revenue |
|
(222,086 |
) |
|
(62,897 |
) |
|
(229 |
) |
|
(285,212 |
) |
|
|
— |
|
|
|
(285,212 |
) |
||||||
Revenue from external customers |
$ |
1,734,882 |
|
$ |
1,242,571 |
|
$ |
813,302 |
|
$ |
3,790,755 |
|
|
$ |
— |
|
|
$ |
3,790,755 |
|
||||||
Income (loss) from construction operations |
$ |
21,123 |
|
$ |
7,166 |
|
$ |
(168,019 |
) |
$ |
(139,730 |
) |
|
$ |
(65,034 |
) |
(a) |
$ |
(204,764 |
) |
||||||
Capital expenditures |
$ |
49,819 |
|
$ |
2,333 |
|
$ |
2,545 |
|
$ |
54,697 |
|
|
$ |
5,083 |
|
|
$ |
59,780 |
|
||||||
Depreciation and amortization(b) |
$ |
51,123 |
|
$ |
1,713 |
|
$ |
2,098 |
|
$ |
54,934 |
|
|
$ |
9,430 |
|
|
$ |
64,364 |
|
(a) |
Consists primarily of corporate general and administrative expenses. |
|
(b) |
Depreciation and amortization is included in income (loss) from construction operations. |
|
||||||||
Consolidated Balance Sheets |
||||||||
|
||||||||
|
|
As of |
||||||
(in thousands, except share and per share amounts) |
|
|
2023 |
|
|
|
2022 |
|
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents ( |
|
$ |
380,564 |
|
|
$ |
259,351 |
|
Restricted cash |
|
|
14,116 |
|
|
|
14,480 |
|
Restricted investments |
|
|
130,287 |
|
|
|
91,556 |
|
Accounts receivable ( |
|
|
1,054,014 |
|
|
|
1,171,085 |
|
Retention receivable ( |
|
|
580,926 |
|
|
|
585,556 |
|
Costs and estimated earnings in excess of billings ( |
|
|
1,143,846 |
|
|
|
1,377,528 |
|
Other current assets ( |
|
|
217,601 |
|
|
|
179,215 |
|
Total current assets |
|
|
3,521,354 |
|
|
|
3,678,771 |
|
PROPERTY AND EQUIPMENT: |
|
|
|
|
||||
Land |
|
|
44,127 |
|
|
|
44,433 |
|
Building and improvements |
|
|
132,639 |
|
|
|
124,429 |
|
Construction equipment |
|
|
613,166 |
|
|
|
590,089 |
|
Other equipment |
|
|
185,530 |
|
|
|
181,649 |
|
|
|
|
975,462 |
|
|
|
940,600 |
|
Less accumulated depreciation |
|
|
(534,171 |
) |
|
|
(505,512 |
) |
Total property and equipment, net ( |
|
|
441,291 |
|
|
|
435,088 |
|
|
|
|
205,143 |
|
|
|
205,143 |
|
INTANGIBLE ASSETS, NET |
|
|
68,305 |
|
|
|
70,542 |
|
DEFERRED INCOME TAXES |
|
|
74,083 |
|
|
|
15,910 |
|
OTHER ASSETS |
|
|
119,680 |
|
|
|
137,346 |
|
TOTAL ASSETS |
|
$ |
4,429,856 |
|
|
$ |
4,542,800 |
|
LIABILITIES AND EQUITY |
||||||||
CURRENT LIABILITIES: |
|
|
|
|
||||
Current maturities of long-term debt |
|
$ |
117,431 |
|
|
$ |
70,285 |
|
Accounts payable ( |
|
|
466,545 |
|
|
|
495,345 |
|
Retention payable ( |
|
|
223,138 |
|
|
|
246,562 |
|
Billings in excess of costs and estimated earnings ( |
|
|
1,103,530 |
|
|
|
975,812 |
|
Accrued expenses and other current liabilities ( |
|
|
214,309 |
|
|
|
179,523 |
|
Total current liabilities |
|
|
2,124,953 |
|
|
|
1,967,527 |
|
LONG-TERM DEBT, less current maturities, net of unamortized discount and debt issuance costs totaling |
|
|
782,314 |
|
|
|
888,154 |
|
DEFERRED INCOME TAXES |
|
|
956 |
|
|
|
4,649 |
|
OTHER LONG-TERM LIABILITIES |
|
|
237,722 |
|
|
|
240,486 |
|
TOTAL LIABILITIES |
|
|
3,145,945 |
|
|
|
3,100,816 |
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
||||
EQUITY |
|
|
|
|
||||
Stockholders' equity: |
|
|
|
|
||||
Preferred stock – authorized 1,000,000 shares ( |
|
|
— |
|
|
|
— |
|
Common stock – authorized 112,500,000 shares ( |
|
|
52,025 |
|
|
|
51,521 |
|
Additional paid-in capital |
|
|
1,146,204 |
|
|
|
1,140,933 |
|
Retained earnings |
|
|
133,146 |
|
|
|
304,301 |
|
Accumulated other comprehensive loss |
|
|
(39,787 |
) |
|
|
(47,037 |
) |
Total stockholders' equity |
|
|
1,291,588 |
|
|
|
1,449,718 |
|
Noncontrolling interests |
|
|
(7,677 |
) |
|
|
(7,734 |
) |
TOTAL EQUITY |
|
|
1,283,911 |
|
|
|
1,441,984 |
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
4,429,856 |
|
|
$ |
4,542,800 |
|
|
||||||||
Consolidated Statements of Cash Flows |
||||||||
|
||||||||
Year Ended |
||||||||
(in thousands) |
|
2023 |
|
|
|
2022 |
|
|
Cash Flows from Operating Activities: |
|
|
|
|||||
Net loss |
$ |
(127,597 |
) |
|
$ |
(192,572 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|||||
Depreciation |
|
42,992 |
|
|
|
49,838 |
|
|
Amortization of intangible assets |
|
2,237 |
|
|
|
14,526 |
|
|
Share-based compensation expense |
|
12,259 |
|
|
|
9,065 |
|
|
Change in debt discounts and deferred debt issuance costs |
|
5,458 |
|
|
|
3,697 |
|
|
Deferred income taxes |
|
(64,820 |
) |
|
|
(79,449 |
) |
|
(Gain) loss on sale of property and equipment |
|
(5,016 |
) |
|
|
145 |
|
|
Changes in other components of working capital |
|
428,910 |
|
|
|
390,424 |
|
|
Other long-term liabilities |
|
3,754 |
|
|
|
14,317 |
|
|
Other, net |
|
10,294 |
|
|
|
(3,020 |
) |
|
NET CASH PROVIDED BY OPERATING ACTIVITIES |
|
308,471 |
|
|
|
206,971 |
|
|
|
|
|
|
|||||
Cash Flows from Investing Activities: |
|
|
|
|||||
Acquisition of property and equipment |
|
(52,953 |
) |
|
|
(59,780 |
) |
|
Proceeds from sale of property and equipment |
|
10,062 |
|
|
|
8,599 |
|
|
Investments in securities |
|
(48,351 |
) |
|
|
(23,948 |
) |
|
Proceeds from maturities and sales of investments in securities |
|
12,997 |
|
|
|
9,493 |
|
|
|
|
(78,245 |
) |
|
|
(65,636 |
) |
|
|
|
|
|
|||||
Cash Flows from Financing Activities: |
|
|
|
|||||
Proceeds from debt |
|
712,324 |
|
|
|
693,757 |
|
|
Repayment of debt |
|
(773,999 |
) |
|
|
(732,101 |
) |
|
Cash payments related to share-based compensation |
|
(969 |
) |
|
|
(1,734 |
) |
|
Distributions paid to noncontrolling interests |
|
(46,500 |
) |
|
|
(47,386 |
) |
|
Contributions from noncontrolling interests |
|
2,000 |
|
|
|
8,688 |
|
|
Debt issuance, extinguishment and modification costs |
|
(2,233 |
) |
|
|
(124 |
) |
|
|
|
(109,377 |
) |
|
|
(78,900 |
) |
|
|
|
|
|
|||||
Net increase in cash, cash equivalents and restricted cash |
|
120,849 |
|
|
|
62,435 |
|
|
Cash, cash equivalents and restricted cash at beginning of year |
|
273,831 |
|
|
|
211,396 |
|
|
Cash, cash equivalents and restricted cash at end of year |
$ |
394,680 |
|
|
$ |
273,831 |
|
|
|||||||||||||
Backlog Information |
|||||||||||||
Unaudited |
|||||||||||||
|
|
|
|
|
|
|
|
||||||
(in millions) |
|
Backlog at
|
|
New Awards in the
|
|
Revenue Recognized
|
|
Backlog at
|
|||||
Civil |
|
$ |
4,529.6 |
|
$ |
170.4 |
|
$ |
(459.4 |
) |
|
$ |
4,240.6 |
Building |
|
|
4,340.1 |
|
|
213.5 |
|
|
(376.1 |
) |
|
|
4,177.5 |
Specialty Contractors |
|
|
1,780.2 |
|
|
146.1 |
|
|
(186.0 |
) |
|
|
1,740.3 |
Total |
|
$ |
10,649.9 |
|
$ |
530.0 |
|
$ |
(1,021.5 |
) |
|
$ |
10,158.4 |
|
|
|
|
|
|
|
|
||||||
(in millions) |
|
Backlog at
|
|
New Awards in the
|
|
Revenue Recognized
|
|
Backlog at
|
|||||
Civil |
|
$ |
4,416.3 |
|
$ |
1,708.2 |
|
$ |
(1,883.9 |
) |
|
$ |
4,240.6 |
Building |
|
|
2,223.6 |
|
|
3,256.4 |
|
|
(1,302.5 |
) |
|
|
4,177.5 |
Specialty Contractors |
|
|
1,289.2 |
|
|
1,144.9 |
|
|
(693.8 |
) |
|
|
1,740.3 |
Total |
|
$ |
7,929.1 |
|
$ |
6,109.5 |
|
$ |
(3,880.2 |
) |
|
$ |
10,158.4 |
(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/20240228767188/en/
Vice President, Investor Relations & Corporate Communications
www.tutorperini.com
Source: