Business Segments

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Business Segments

Business Segments

The Company offers general contracting, pre-construction planning and comprehensive project management services, including planning and scheduling of manpower, equipment, materials and subcontractors required for the timely completion of a project in accordance with the terms and specifications contained in a construction contract. The Company also offers self-performed construction services: site work, concrete forming and placement, steel erection, electrical, mechanical, plumbing, and HVAC (heating, ventilation and air conditioning). As described below, the Company’s business is conducted through three segments: Civil, Building and Specialty Contractors. These segments are determined based on how the Company’s Chairman and Chief Executive Officer (chief operating decision maker) aggregates business units when evaluating performance and allocating resources.

The Civil segment specializes in public works construction and the replacement and reconstruction of infrastructure. The contracting services provided by the Civil segment include construction and rehabilitation of highways, bridges, tunnels, mass-transit systems, military defense facilities, and water management and wastewater treatment facilities.

The Building segment has significant experience providing services for private and public works customers in a number of specialized building markets, including: hospitality and gaming, transportation, health care, commercial offices, government facilities, sports and entertainment, education, correctional facilities, biotech, pharmaceutical, industrial and technology.

The Specialty Contractors segment specializes in electrical, mechanical, plumbing, HVAC and fire protection systems for a full range of civil and building construction projects in the industrial, commercial, hospitality and gaming, and mass-transit end markets. This segment provides the Company with unique strengths and capabilities that allow the Company to position itself as a full-service contractor with greater control over scheduled work, project delivery, and cost and risk management.

To the extent that a contract is co-managed and co-executed among segments, the Company allocates the share of revenues and costs of the contract to each segment to reflect the shared responsibilities in the management and execution of the project.

The following tables set forth certain reportable segment information relating to the Company’s operations for the three months ended March 31, 2022 and 2021:

	Reportable Segments
(in thousands)	Civil		Building		Specialty Contractors		Total			Corporate			Consolidated Total
Three Months Ended March 31, 2022
Total revenue	$	460,742	$	355,978	$	230,864	$	1,047,584		$	—		$	1,047,584
Elimination of intersegment revenue	(69,947)		(25,330)		(153)		(95,430)			—			(95,430)
Revenue from external customers	$	390,795	$	330,648	$	230,711	$	952,154		$	—		$	952,154
Income (loss) from construction operations	$	(967)	$	9,464	$	(3,894)	$	4,603	(a)	$	(14,510)	(b)	$	(9,907)
Capital expenditures	$	11,175	$	2	$	638	$	11,815		$	213		$	12,028
Depreciation and amortization(c)	$	17,000	$	401	$	502	$	17,903		$	2,335		$	20,238
Three Months Ended March 31, 2021
Total revenue	$	583,144	$	457,170	$	324,948	$	1,365,262		$	—		$	1,365,262
Elimination of intersegment revenue	(107,569)		(49,937)		(161)		(157,667)			—			(157,667)
Revenue from external customers	$	475,575	$	407,233	$	324,787	$	1,207,595		$	—		$	1,207,595
Income (loss) from construction operations	$	50,105	$	11,216	$	1,324	$	62,645		$	(12,941)	(b)	$	49,704
Capital expenditures	$	9,564	$	73	$	145	$	9,782		$	53		$	9,835
Depreciation and amortization(c)	$	22,713	$	432	$	959	$	24,104		$	2,770		$	26,874

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(a)During the three months ended March 31, 2022, the Company’s income (loss) from construction operations was negatively impacted by $25.5 million (an after-tax impact of $18.3 million, or $0.36 per diluted share) due to an adverse legal ruling on a dispute related to a Civil segment bridge project in New York and $17.6 million (an after-tax impact of $13.9 million, or $0.27 per diluted share) on a Civil segment mass-transit project in California, which resulted from the successful negotiation of significant lower margin (and lower risk) change orders that increased the project’s overall estimated profit but reduced the project’s percentage of completion and overall margin percentage.

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

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

A reconciliation of segment results to the consolidated income (loss) before income taxes is as follows:

	Three Months Ended March 31,
(in thousands)	2022		2021
Income (loss) from construction operations	$	(9,907)	$	49,704
Other income, net	3,697		175
Interest expense	(16,492)		(17,810)
Income (loss) before income taxes	$	(22,702)	$	32,069

Total assets by segment were as follows:

(in thousands)	As of March 31, 2022		As of December 31, 2021
Civil	$	3,419,911	$	3,310,648
Building	969,388		980,989
Specialty Contractors	629,886		631,710
Corporate and other(a)	(227,027)		(198,449)
Total assets	$	4,792,158	$	4,724,898

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(a)Consists principally of cash, equipment, tax-related assets and insurance-related assets, offset by the elimination of assets related to intersegment revenue.