Tutor Perini Reports First Quarter 2024 Results
-
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
Revenue was
Income from construction operations for the first quarter of 2024 was
Backlog grew to
As previously disclosed, in
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.
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
First 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 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
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||||||||
Condensed Consolidated Statements of Operations |
||||||||
Unaudited |
||||||||
|
|
|
|
|
||||
|
Three Months Ended
|
|||||||
(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 |
|
|
||||||||||||||||||||
Segment Information |
||||||||||||||||||||
Unaudited |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
Reportable Segments |
|
|
|
|
||||||||||||||||
(in thousands) |
Civil |
Building |
Specialty Contractors |
Total |
|
Corporate |
|
Consolidated Total |
||||||||||||
Three Months Ended |
|
|
|
|
|
|
|
|
||||||||||||
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 |
|
|
|
|
|
|
|
|
||||||||||||
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 |
(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 |
|
||||||||
Condensed Consolidated Balance Sheets |
||||||||
Unaudited |
||||||||
(in thousands, except share and per share amounts) |
|
As of |
|
As of |
||||
ASSETS |
||||||||
CURRENT ASSETS: |
|
|
|
|
||||
Cash and cash equivalents ( |
|
$ |
358,304 |
|
|
$ |
380,564 |
|
Restricted cash |
|
|
14,749 |
|
|
|
14,116 |
|
Restricted investments |
|
|
130,499 |
|
|
|
130,287 |
|
Accounts receivable ( |
|
|
1,057,229 |
|
|
|
1,054,014 |
|
Retention receivable ( |
|
|
550,224 |
|
|
|
580,926 |
|
Costs and estimated earnings in excess of billings ( |
|
|
1,156,571 |
|
|
|
1,143,846 |
|
Other current assets ( |
|
|
199,138 |
|
|
|
217,601 |
|
Total current assets |
|
|
3,466,714 |
|
|
|
3,521,354 |
|
PROPERTY AND EQUIPMENT ("P&E"), net of accumulated depreciation of |
|
|
438,605 |
|
|
|
441,291 |
|
|
|
|
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 ( |
|
|
600,190 |
|
|
|
466,545 |
|
Retention payable ( |
|
|
227,731 |
|
|
|
223,138 |
|
Billings in excess of costs and estimated earnings ( |
|
|
1,002,268 |
|
|
|
1,103,530 |
|
Accrued expenses and other current liabilities ( |
|
|
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 |
|
|
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 ( |
|
|
— |
|
|
|
— |
|
Common stock - authorized 112,500,000 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 |
|
|
|||||||
Condensed Consolidated Statements of Cash Flows |
|||||||
Unaudited |
|||||||
Three Months Ended |
|||||||
(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 |
|
|
|
(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 |
|
|
Backlog Information |
Unaudited |
(in millions) |
|
Backlog at
|
|
New Awards in the Three Months Ended
|
|
Revenue Recognized in the Three Months Ended
|
|
Backlog at
|
|||||
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/
Vice President, Investor Relations & Corporate Communications
www.tutorperini.com
Source: