EX-99.1 2 tpc-20170807xex99_1.htm EX-99.1 Exhibit 991_Press_Release_Q2_2017_Taxonomy2016

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News Release



Tutor Perini Reports Second Quarter Results



·

New awards of $1.6 billion in Q2 2017; $3.7 billion of new awards in first half of 2017

·

Backlog at $7.6 billion, up 21% compared with backlog at the end of 2016

·

56% of backlog now comprised of higher-margin Civil projects



LOS ANGELES – (BUSINESS WIRE) – August 7, 2017 – Tutor Perini Corporation (NYSE: TPC), a leading civil, building and specialty construction company, today reported results for the three months ended June 30, 2017. Revenue for the second quarter of 2017 was $1.2 billion, consistent with the revenue for the second quarter of last year. Income from construction operations was $34.0 million for the second quarter of 2017 compared to $48.8 million for the comparable period last year. The decrease in income from construction operations for the second quarter of 2017 was primarily due to unfavorable project adjustments recorded on certain mechanical projects in New York. The decrease was partially offset by increased activity related to certain mass-transit projects in California and New York. The current year period included a $37.0 million legal settlement that was recorded in other income. Net income attributable to Tutor Perini Corporation for the second quarter of 2017 was $30.1 million, or $0.59 per diluted share, compared to $21.4 million, or $0.43 per diluted share for the second quarter of 2016.



Backlog as of June 30, 2017 was $7.6 billion, up 21% compared to $6.2 billion as of December 31, 2016. New awards and adjustments to contracts in process totaled $1.6 billion in the second quarter of 2017 and $3.7 billion in the first six months of 2017, well outpacing revenue in both periods. The Civil segment was the major contributor to new award activity in the first half of 2017. Significant new awards in the second quarter of 2017 included the I-74 bridge project in Iowa valued at $323 million, the East Side Access CQ33 mass-transit project in New York valued at $292 million, two healthcare building projects in California collectively valued at $154 million, additional scope of work valued at $97 million for a technology office project in California, additional scope of work valued at $97 million for the Hudson Yards Platform project, the Henry Hudson Bridge design-build project in New York valued at $82 million and the MD4 highway improvements project in Maryland valued at $78 million.



“Our backlog grew again this quarter as a result of the strong market demand we have been pointing to for some time,” commented Ronald Tutor, Chairman and Chief Executive Officer. Tutor continued, “Our increased backlog and continued success in winning new projects reflects the underlying strength of our business. This, combined with the benefits we anticipate to come from the FAST Act, California’s SB1 transportation bill and several large voter-approved transportation funding measures, provides increased confidence in our outlook for growth and improved profitability. While our second quarter operating results did not meet our expectations, we are well positioned for improved results in the upcoming quarters.”



Outlook and Guidance



Based on the current backlog and market outlook, the Company is affirming its guidance for 2017, with revenue expected to be in excess of $5.5 billion and diluted earnings per share (EPS) expected in the range of $2.10 to $2.40. As previously noted in our earnings releases for the fourth quarter and full year 2016, and for the first quarter of

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2017, we anticipate that our 2017 earnings will be weighted towards the second half of the year, consistent with the cyclicality of the Company’s business.



Second Quarter Conference Call



The Company will host a conference call at 2:00 PM Pacific Time on Monday, August 7, 2017, to discuss the second quarter 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. To listen to the webcast, please visit the Company's website at least 15 minutes prior to the start of the call to register and to download and install any necessary software. For those unable to participate during the live call, the webcast will be available for replay shortly after the call on the website.





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 clients 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 the planning and scheduling of the 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). We are known for our major complex building project commitments, as well as our capacity to perform large and complex transportation and heavy civil construction for government agencies and private clients throughout the world.



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 and Section 21E of the Securities Exchange Act of 1934, 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, the Company’s ability to win new contracts and convert backlog into revenue; the Company's ability to successfully and timely complete construction projects; increased competition and failure to secure new contracts; the outcomes of pending or future litigation, arbitration or other dispute resolution proceedings and the timing of related collections; the potential delay, suspension, termination or reduction in scope of construction projects; the continuing validity of the underlying assumptions and estimates of total forecasted project revenues, costs and profits and project schedules; the availability of borrowed funds on terms acceptable to the Company; failure to meet our obligations under our debt agreements; the ability to retain certain

2

 

 

members of management; the ability to obtain surety bonds to secure the Company’s performance under certain construction contracts; possible labor disputes or work stoppages within the construction industry; changes in federal and state appropriations for infrastructure projects and the impact of changing economic conditions on federal, state and local funding for infrastructure projects; possible changes or developments in international or domestic political, social, economic, business, industry, market and regulatory conditions or circumstances; failure to comply with laws and regulations related to government contracts; actions taken or not taken by third parties, including the Company’s customers, suppliers, business partners and competitors and legislative, regulatory, judicial and other governmental authorities and officials; impairments of our goodwill or other indefinite-lived intangible assets; possible systems and information technology disruptions; the impact of inclement weather conditions on projects; 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, 2016 filed with the Securities and Exchange Commission on February 23, 2017. 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.



Contact:



Tutor Perini Corporation
Jorge Casado, 818-362-8391
Vice President, Investor Relations & Corporate Communications

www.tutorperini.com 





 

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Tutor Perini Corporation

Condensed Consolidated Statements of Operations

Unaudited



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended June 30,

 

Six Months Ended June 30,

(in thousands, except per share data)

2017

 

2016

 

2017

 

2016



 

 

 

 

 

 

 

 

 

 

 

Revenue

$

 1,247,274 

 

$

 1,308,130 

 

$

 2,364,635 

 

$

 2,393,499 



 

 

 

 

 

 

 

 

 

 

 

Cost of operations

 

 (1,144,436)

 

 

 (1,198,360)

 

 

 (2,159,078)

 

 

 (2,178,637)



 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 102,838 

 

 

 109,770 

 

 

 205,557 

 

 

 214,862 



 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

 (68,793)

 

 

 (60,941)

 

 

 (134,495)

 

 

 (125,911)



 

 

 

 

 

 

 

 

 

 

 

INCOME FROM CONSTRUCTION OPERATIONS

 

 34,045 

 

 

 48,829 

 

 

 71,062 

 

 

 88,951 



 

 

 

 

 

 

 

 

 

 

 

Other income, net

 

 40,990 

 

 

 2,485 

 

 

 41,406 

 

 

 3,166 

Interest expense

 

 (22,519)

 

 

 (15,534)

 

 

 (38,083)

 

 

 (29,614)



 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 52,516 

 

 

 35,780 

 

 

 74,385 

 

 

 62,503 



 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 (19,883)

 

 

 (14,419)

 

 

 (27,988)

 

 

 (25,743)



 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

 32,633 

 

 

 21,361 

 

 

 46,397 

 

 

 36,760 



 

 

 

 

 

 

 

 

 

 

 

LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

 (2,537)

 

 

 —

 

 

 (2,537)

 

 

 —



 

 

 

 

 

 

 

 

 

 

 

NET INCOME ATTRIBUTABLE TO TUTOR PERINI CORPORATION

$

 30,096 

 

$

 21,361 

 

$

 43,860 

 

$

 36,760 



 

 

 

 

 

 

 

 

 

 

 

BASIC EARNINGS PER COMMON SHARE

$

 0.61 

 

$

 0.43 

 

$

 0.89 

 

$

 0.75 



 

 

 

 

 

 

 

 

 

 

 

DILUTED EARNINGS PER COMMON SHARE

$

 0.59 

 

$

 0.43 

 

$

 0.86 

 

$

 0.74 



 

 

 

 

 

 

 

 

 

 

 

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:

 

 

 

 

 

 

 

 

 

 

 

BASIC

 

 49,735 

 

 

 49,131 

 

 

 49,510 

 

 

 49,105 

DILUTED

 

 50,755 

 

 

 49,561 

 

 

 50,853 

 

 

 49,423 

    

4

 

 





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tutor Perini Corporation

Segment Information

Unaudited



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Reportable Segments

 

 

 

 

 

 



 

 

 

 

Specialty

 

 

 

 

 

Consolidated

(in thousands)

Civil

 

Building

 

Contractors

 

Total

 

Corporate

 

Total

Three Months Ended June 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

$

 538,552 

 

$

 508,769 

 

$

 281,857 

 

$

 1,329,178 

 

$

 —

 

$

 1,329,178 

Elimination of intersegment revenue

 

 (65,970)

 

 

 (15,934)

 

 

 —

 

 

 (81,904)

 

 

 —

 

 

 (81,904)

Revenue from external customers

$

 472,582 

 

$

 492,835 

 

$

 281,857 

 

$

 1,247,274 

 

$

 —

 

$

 1,247,274 

Income from construction operations

$

 58,144 

 

$

 5,736 

 

$

 (14,007)

 

$

 49,873 

 

$

 (15,828)

(a)

$

 34,045 

Capital expenditures

$

 1,850 

 

$

 104 

 

$

 286 

 

$

 2,240 

 

$

 271 

 

$

 2,511 

Depreciation and amortization (b)

$

 5,236 

 

$

 513 

 

$

 1,193 

 

$

 6,942 

 

$

 2,820 

 

$

 9,762 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

$

 504,930 

 

$

 546,157 

 

$

 318,902 

 

$

 1,369,989 

 

$

 —

 

$

 1,369,989 

Elimination of intersegment revenue

 

 (39,223)

 

 

 (22,636)

 

 

 —

 

 

 (61,859)

 

 

 —

 

 

 (61,859)

Revenue from external customers

$

 465,707 

 

$

 523,521 

 

$

 318,902 

 

$

 1,308,130 

 

$

 —

 

$

 1,308,130 

Income from construction operations

$

 45,056 

 

$

 13,223 

 

$

 5,413 

 

$

 63,692 

 

$

 (14,863)

(a)

$

 48,829 

Capital expenditures

$

 3,545 

 

$

 81 

 

$

 119 

 

$

 3,745 

 

$

 124 

 

$

 3,869 

Depreciation and amortization (b)

$

 12,447 

 

$

 549 

 

$

 1,263 

 

$

 14,259 

 

$

 2,887 

 

$

 17,146 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Reportable Segments

 

 

 

 

 

 



 

 

 

 

Specialty

 

 

 

 

 

Consolidated

(in thousands)

Civil

 

Building

 

Contractors

 

Total

 

Corporate

 

Total

Six Months Ended June 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

$

 905,363 

 

$

 1,019,936 

 

$

 597,553 

 

$

 2,522,852 

 

$

 —

 

$

 2,522,852 

Elimination of intersegment revenue

 

 (128,206)

 

 

 (30,011)

 

 

 —

 

 

 (158,217)

 

 

 —

 

 

 (158,217)

Revenue from external customers

$

 777,157 

 

$

 989,925 

 

$

 597,553 

 

$

 2,364,635 

 

$

 —

 

$

 2,364,635 

Income from construction operations

$

 90,032 

 

$

 10,977 

 

$

 755 

 

$

 101,764 

 

$

 (30,702)

(a)

$

 71,062 

Capital expenditures

$

 7,417 

 

$

 148 

 

$

 293 

 

$

 7,858 

 

$

 325 

 

$

 8,183 

Depreciation and amortization (b)

$

 21,554 

 

$

 1,031 

 

$

 2,385 

 

$

 24,970 

 

$

 5,788 

 

$

 30,758 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

$

 872,431 

 

$

 1,034,151 

 

$

 600,675 

 

$

 2,507,257 

 

$

 —

 

$

 2,507,257 

Elimination of intersegment revenue

 

 (70,866)

 

 

 (42,892)

 

 

 —

 

 

 (113,758)

 

 

 —

 

 

 (113,758)

Revenue from external customers

$

 801,565 

 

$

 991,259 

 

$

 600,675 

 

$

 2,393,499 

 

$

 —

 

$

 2,393,499 

Income from construction operations

$

 78,721 

 

$

 25,673 

 

$

 14,826 

 

$

 119,220 

 

$

 (30,269)

(a)

$

 88,951 

Capital expenditures

$

 7,157 

 

$

 302 

 

$

 744 

 

$

 8,203 

 

$

 478 

 

$

 8,681 

Depreciation and amortization (b)

$

 20,531 

 

$

 1,106 

 

$

 2,568 

 

$

 24,205 

 

$

 5,751 

 

$

 29,956 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)  Consists primarily of corporate general and administrative expenses.

(b)  Depreciation and amortization is included in income from construction operations.







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Tutor Perini Corporation

Condensed Consolidated Balance Sheets

Unaudited



 

 

 

 

 

(in thousands, except share and per share amounts)

June 30, 2017

 

December 31, 2016

ASSETS

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

Cash and cash equivalents ($37,445 and $0 related to variable interest
entities ("VIEs"))

$

 172,927 

 

$

 146,103 

Restricted cash

 

 52,051 

 

 

 50,504 

Accounts receivable ("AR") including retainage of $602,581 and $569,391
(AR of $56,912 and $0 related to VIEs)

 

 1,838,359 

 

 

 1,743,300 

Costs and estimated earnings in excess of billings

 

 850,634 

 

 

 831,826 

Other current assets

 

 77,736 

 

 

 66,023 

Total current assets

 

 2,991,707 

 

 

 2,837,756 



 

 

 

 

 

Property and equipment, net of accumulated depreciation
of $339,045 and $313,783

 

 456,001 

 

 

 477,626 

Goodwill

 

 585,006 

 

 

 585,006 

Intangible assets, net

 

 91,226 

 

 

 92,997 

Other assets

 

 40,926 

 

 

 45,235 

TOTAL ASSETS

$

 4,164,866 

 

$

 4,038,620 



 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

Current maturities of long-term debt

$

 30,333 

 

$

 85,890 

Accounts payable ("AP") including retainage of $274,045 and $258,294
(AP of $57,888 and $0 related to VIEs)

 

 899,284 

 

 

 994,016 

Billings in excess of costs and estimated earnings ($30,293 and
$0 related to VIEs)

 

 339,808 

 

 

 331,112 

Accrued expenses and other current liabilities

 

 176,148 

 

 

 107,925 

Total current liabilities

 

 1,445,573 

 

 

 1,518,943 



 

 

 

 

 

Long-term debt, less current maturities, net of unamortized discounts
and debt issuance costs totaling $57,434 and $56,072

 

 832,327 

 

 

 673,629 

Deferred income taxes

 

 131,292 

 

 

 131,007 

Other long-term liabilities

 

 155,810 

 

 

 162,018 

TOTAL LIABILITIES

 

 2,565,002 

 

 

 2,485,597 



 

 

 

 

 

CONTINGENCIES AND COMMITMENTS

 

 

 

 

 



 

 

 

 

 

EQUITY:

 

 

 

 

 

Stockholders' Equity

 

 

 

 

 

Preferred stock – authorized 1,000,000 shares ($1 par value),
none issued

 

 —

 

 

 —

Common stock - authorized 75,000,000 shares ($1 par value),
issued and outstanding 49,760,256 and 49,211,353 shares

 

 49,760 

 

 

 49,211 

Additional paid-in capital

 

 1,075,637 

 

 

 1,075,600 

Retained earnings

 

 517,485 

 

 

 473,625 

Accumulated other comprehensive loss

 

 (44,305)

 

 

 (45,413)

Total Stockholders Equity

 

 1,598,577 

 

 

 1,553,023 

Noncontrolling interests

 

 1,287 

 

 

 —

TOTAL STOCKHOLDERS' EQUITY

 

 1,599,864 

 

 

 1,553,023 



 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

 4,164,866 

 

$

 4,038,620 

    

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Tutor Perini Corporation

Condensed Consolidated Statements of Cash Flows

Unaudited



 

 

 

 

 



Six Months Ended June 30,

(in thousands)

2017

 

2016

Cash flows from operating activities:

 

 

 

 

 

Net income

$

 46,397 

 

$

 36,760 

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

 

 

 

 

 

Depreciation

 

 28,987 

 

 

 28,185 

Amortization of intangible assets

 

 1,771 

 

 

 1,771 

Share-based compensation expense

 

 10,420 

 

 

 6,959 

Change in debt discounts and deferred debt issuance costs

 

 11,950 

 

 

 3,348 

Deferred income taxes

 

 (1)

 

 

 (371)

(Gain) loss on sale of property and equipment

 

 (349)

 

 

 204 

Other long-term liabilities

 

 (2,801)

 

 

 (3,811)

Other non-cash items

 

 1,785 

 

 

 1,200 

Changes in other components of working capital 

 

 (132,779)

 

 

 (69,669)

NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES

 

 (34,620)

 

 

 4,576 



 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

Acquisition of property and equipment excluding financed purchases

 

 (8,183)

 

 

 (8,681)

Proceeds from sale of property and equipment

 

 1,336 

 

 

 1,092 

Investments in securities restricted in use

 

 (9,297)

 

 

 —

Change in restricted cash

 

 (1,547)

 

 

 (3,599)

NET CASH USED IN INVESTING ACTIVITIES

 

 (17,691)

 

 

 (11,188)



 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

Issuance of convertible notes

 

 —

 

 

 200,000 

Proceeds from debt

 

 1,276,457 

 

 

 711,092 

Repayment of debt

 

 (1,171,954)

 

 

 (871,654)

Issuance of common stock and effect of cashless exercise

 

 (10,809)

 

 

 —

Distributions paid to noncontrolling interests

 

 (2,500)

 

 

 —

Contributions from noncontrolling interests

 

 1,250 

 

 

 —

Debt issuance costs

 

 (13,309)

 

 

 (14,656)

NET CASH PROVIDED BY FINANCING ACTIVITIES

 

 79,135 

 

 

 24,782 



 

 

 

 

 

Net increase in cash and cash equivalents

 

 26,824 

 

 

 18,170 

Cash and cash equivalents at beginning of period

 

 146,103 

 

 

 75,452 

Cash and cash equivalents at end of period

$

 172,927 

 

$

 93,622 

  

  

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Tutor Perini Corporation

Backlog Information

Unaudited



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

Revenue

 

 

 



 

 

 

New Awards in the

 

Recognized in the

 

 

 



Backlog at

 

Three Months Ended

 

Three Months Ended

 

Backlog at

(in millions)

March 31, 2017

 

June 30, 2017(a)

 

June 30, 2017

 

June 30, 2017

Civil

$

 3,865.7 

 

$

 847.5 

 

$

 (472.6)

 

$

 4,240.6 

Building

 

 1,750.3 

 

 

 550.9 

 

 

 (492.8)

 

 

 1,808.4 

Specialty Contractors

 

 1,554.5 

 

 

 238.9 

 

 

 (281.9)

 

 

 1,511.5 

Total

$

 7,170.5 

 

$

 1,637.3 

 

$

 (1,247.3)

 

$

 7,560.5 



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

Revenue

 

 

 



 

 

 

New Awards in the

 

Recognized in the

 

 

 



Backlog at

 

Six Months Ended

 

Six Months Ended

 

Backlog at

(in millions)

December 31, 2016

 

June 30, 2017(a)

 

June 30, 2017

 

June 30, 2017

Civil

$

 2,672.1 

 

$

 2,345.7 

 

$

 (777.2)

 

$

 4,240.6 

Building

 

 1,981.2 

 

 

 817.1 

 

 

 (989.9)

 

 

 1,808.4 

Specialty Contractors

 

 1,573.8 

 

 

 535.3 

 

 

 (597.6)

 

 

 1,511.5 

Total

$

 6,227.1 

 

$

 3,698.1 

 

$

 (2,364.7)

 

$

 7,560.5 



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

(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.

  

  

8