Massachusetts
(State or other jurisdiction of incorporation or organization)
|
1-6314
(Commission file number)
|
04-1717070
(I.R.S. Employer Identification No.)
|
Item 9.01.
|
Financial Statements and Exhibits.
|
(a)
|
Financial statements of businesses acquired.
|
(b)
|
Pro forma financial information.
|
(d)
|
Exhibits.
|
Exhibit No.
|
|
Description
|
|
Consent of Independent Auditors
|
|
|
Audited financial statements of Lunda as of December 31, 2010 and 2009, and for the years ended December 31, 2010, 2009 and 2008
|
|
|
Unaudited financial statements of Lunda as of June 30, 2011 and for the six months ended June 30, 2011 and June 30, 2010
|
|
|
Unaudited pro forma condensed combined financial statements as of and for the six months ended June 30, 2011, and for the year ended December 31, 2010
|
Tutor Perini Corporation
|
|
Dated: September 16, 2011
|
By: /s/Kenneth R. Burk
|
Kenneth R. Burk
Executive Vice President and Chief Financial Officer
|
As of December 31, 2010 and 2009 and for the Years Ended December 31, 2010, 2009, and 2008 |
Table of Contents
|
|
Independent Auditor's Report | 1 |
Financial Statements
|
|
Balance Sheets
|
2
|
Statements of Income
|
4
|
Statements of Stockholders' Equity
|
5
|
Statements of Cash Flows
|
7
|
Notes to Financial Statements
|
9
|
Assets
|
2010
|
2009
|
||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 88,648,973 | $ | 95,012,802 | ||||
Marketable securities available for sale
|
109,974,993 | 56,674,415 | ||||||
Contracts receivable:
|
||||||||
Current estimates
|
12,322,375 | 21,228,283 | ||||||
Retentions
|
8,197,752 | 6,696,118 | ||||||
Related parties
|
4,163,661 | 740,807 | ||||||
Costs and estimated earnings in excess of billings
|
3,231,440 | 3,462,786 | ||||||
Supplies and materials
|
7,949,621 | 13,066,822 | ||||||
Prepaid expenses and other
|
1,955,218 | 232,891 | ||||||
Total current assets
|
236,444,033 | 197,114,924 | ||||||
Advances to and equity in joint ventures
|
1,486,782 | 3,836,879 | ||||||
Property and equipment:
|
||||||||
Land
|
1,696,099 | 1,696,099 | ||||||
Buildings
|
5,589,402 | 5,347,632 | ||||||
Construction equipment
|
92,761,342 | 90,126,017 | ||||||
Office equipment
|
1,255,853 | 1,253,585 | ||||||
Totals
|
101,302,696 | 98,423,333 | ||||||
Less - Accumulated depreciation
|
76,643,578 | 70,909,606 | ||||||
Net property and equipment
|
24,659,118 | 27,513,727 | ||||||
TOTAL ASSETS
|
$ | 262,589,933 | $ | 228,465,530 |
Liabilities and Stockholders' Equity
|
2010
|
2009
|
||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 6,564,865 | $ | 5,450,212 | ||||
Payable to subcontractors:
|
||||||||
Current estimates
|
6,618,896 | 3,596,498 | ||||||
Retentions
|
4,837,451 | 5,449,151 | ||||||
Billings in excess of costs and estimated earnings
|
11,053,944 | 28,057,635 | ||||||
Payroll and related taxes and benefits
|
4,768,449 | 4,875,347 | ||||||
Other accrued expenses
|
7,466,992 | 8,772,469 | ||||||
Distributions payable
|
214,493 | 2,557,201 | ||||||
Total current liabilities
|
41,525,090 | 58,758,513 | ||||||
Stockholders' equity:
|
||||||||
Common stock - $100 stated value:
|
||||||||
Authorized - 30,000 shares
|
||||||||
Issued and outstanding - 22,328 shares
|
2,232,800 | 2,232,800 | ||||||
Additional paid-in capital
|
424,243 | 424,243 | ||||||
Retained earnings
|
200,393,330 | 154,071,747 | ||||||
Accumulated other comprehensive income
|
18,014,470 | 12,978,227 | ||||||
Total stockholders' equity
|
221,064,843 | 169,707,017 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 262,589,933 | $ | 228,465,530 |
Years Ended December 31, 2010, 2009 and 2008 |
2010
|
2009
|
2008
|
||||||||||
Contract revenue
|
$ | 356,404,826 | $ | 352,143,834 | $ | 342,047,596 | ||||||
Cost of Contract Revenue
|
273,693,546 | 292,087,406 | 283,311,094 | |||||||||
Gross profit
|
82,711,280 | 60,056,428 | 58,736,502 | |||||||||
General and Administrative Expenses
|
8,544,658 | 7,928,776 | 7,758,514 | |||||||||
Income from operations
|
74,166,622 | 52,127,652 | 50,977,988 | |||||||||
Other income (expense):
|
||||||||||||
Interest and dividend income
|
2,815,569 | 2,454,068 | 2,772,910 | |||||||||
Insurance adjustments
|
744,562 | 1,539,372 | 1,002,940 | |||||||||
Miscellaneous income
|
1,011,073 | 707,033 | 1,455,991 | |||||||||
Equity in income from joint ventures
|
2,701,330 | 375,296 | 5,762,945 | |||||||||
Net gain (loss) on asset and investment sales
|
1,782,720 | (339,732 | ) | (10,058,968 | ) | |||||||
Interest expense
|
0 | 0 | (130 | ) | ||||||||
Total other income (expense)
|
9,055,254 | 4,736,037 | 935,688 | |||||||||
Net income
|
$ | 83,221,876 | $ | 56,863,689 | $ | 51,913,676 |
Years Ended December 31, 2010, 2009 and 2008 |
Retained Earnings
|
Accumulated
|
|||||||||||||||||||||||||||||||
Additional
|
Accumulated
|
Other
|
Other
|
Total
|
||||||||||||||||||||||||||||
Common Stock
|
Paid-In
|
Adjustments
|
Retained
|
Comprehensive
|
Stockholders'
|
|||||||||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Account
|
Earnings
|
Totals
|
Income (Loss)
|
Equity
|
|||||||||||||||||||||||||
Balances at January 1, 2008
|
22,328 | $ | 2,232,800 | $ | 424,243 | $ | 100,322,453 | $ | 8,349,184 | $ | 108,671,637 | $ | 2,324,055 | $ | 113,652,735 | |||||||||||||||||
Comprehensive income (loss):
|
||||||||||||||||||||||||||||||||
Net income
|
0 | 0 | 0 | 51,913,676 | 0 | 51,913,676 | 0 | 51,913,676 | ||||||||||||||||||||||||
Unrealized losses on securities available for sale, net of reclassification adjustment
|
0 | 0 | 0 | 0 | 0 | 0 | (2,682,963 | ) | (2,682,963 | ) | ||||||||||||||||||||||
Total comprehensive income
|
49,230,713 | |||||||||||||||||||||||||||||||
Distributions to stockholders
|
0 | 0 | 0 | (28,971,673 | ) | 0 | (28,971,673 | ) | 0 | (28,971,673 | ) | |||||||||||||||||||||
Balances at December 31, 2008
|
22,328 | 2,232,800 | 424,243 | 123,264,456 | 8,349,184 | 131,613,640 | (358,908 | ) | 133,911,775 | |||||||||||||||||||||||
Comprehensive income (loss):
|
||||||||||||||||||||||||||||||||
Net income
|
0 | 0 | 0 | 56,863,689 | 0 | 56,863,689 | 0 | 56,863,689 | ||||||||||||||||||||||||
Unrealized gains on securities available for sale, net of reclassification adjustment
|
0 | 0 | 0 | 0 | 0 | 0 | 13,337,135 | 13,337,135 | ||||||||||||||||||||||||
Total comprehensive income
|
70,200,824 | |||||||||||||||||||||||||||||||
Distributions to stockholders
|
0 | 0 | 0 | (34,405,582 | ) | 0 | (34,405,582 | ) | 0 | (34,405,582 | ) | |||||||||||||||||||||
Balances at December 31, 2009
|
22,328 | 2,232,800 | 424,243 | 145,722,563 | 8,349,184 | 154,071,747 | 12,978,227 | 169,707,017 |
Years Ended December 31, 2010, 2009 and 2008 |
Retained Earnings
|
Accumulated
|
|||||||||||||||||||||||||||||||
Additional
|
Accumulated
|
Other
|
Other
|
Total
|
||||||||||||||||||||||||||||
Common Stock
|
Paid-In
|
Adjustments
|
Retained
|
Comprehensive
|
Stockholders'
|
|||||||||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Account
|
Earnings
|
Totals
|
Income (Loss)
|
Equity
|
|||||||||||||||||||||||||
Balances at December 31, 2009
|
||||||||||||||||||||||||||||||||
(Carried Forward)
|
22,328 | $ | 2,232,800 | $ | 424,243 | $ | 145,722,563 | $ | 8,349,184 | $ | 154,071,747 | $ | 12,978,227 | $ | 169,707,017 | |||||||||||||||||
Comprehensive income (loss):
|
||||||||||||||||||||||||||||||||
Net income
|
0 | 0 | 0 | 83,221,876 | 0 | 83,221,876 | 0 | 83,221,876 | ||||||||||||||||||||||||
Unrealized gains on securities available for sale, net of reclassification adjustment
|
0 | 0 | 0 | 0 | 0 | 0 | 5,036,243 | 5,036,243 | ||||||||||||||||||||||||
Total comprehensive income
|
88,258,119 | |||||||||||||||||||||||||||||||
Distributions to stockholders
|
0 | 0 | 0 | (36,900,293 | ) | 0 | (36,900,293 | ) | 0 | (36,900,293 | ) | |||||||||||||||||||||
Balances at December 31, 2010
|
22,328 | $ | 2,232,800 | $ | 424,243 | $ | 192,044,146 | $ | 8,349,184 | $ | 200,393,330 | $ | 18,014,470 | $ | 221,064,843 |
Years Ended December 31, 2010, 2009 and 2008 |
2010
|
2009
|
2008
|
||||||||||
Increase (decrease) in cash and cash equivalents:
|
||||||||||||
Cash flows from operating activities:
|
||||||||||||
Net income
|
$ | 83,221,876 | $ | 56,863,689 | $ | 51,913,676 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Provision for depreciation
|
7,608,466 | 7,619,410 | 7,331,757 | |||||||||
Net loss (gain) on asset and investment sales
|
(1,782,719 | ) | 339,732 | 10,058,968 | ||||||||
Equity in income from joint venture
|
(3,201,330 | ) | (375,296 | ) | (5,762,945 | ) | ||||||
Changes in operating assets and liabilities:
|
||||||||||||
Contracts receivable
|
3,981,420 | (398,767 | ) | 2,386,425 | ||||||||
Costs and estimated earnings in excess of billings
|
231,346 | (366,912 | ) | 927,235 | ||||||||
Supplies and materials
|
5,117,201 | 6,647,832 | (3,694,756 | ) | ||||||||
Prepaid expenses and other
|
(1,722,327 | ) | 67,763 | 63,207 | ||||||||
Accounts payable
|
1,457,483 | (5,982,740 | ) | (1,536,069 | ) | |||||||
Payable to subcontractors
|
2,410,698 | (77,838 | ) | 223,836 | ||||||||
Billings in excess of costs and estimated earnings
|
(17,003,691 | ) | 4,299,078 | 4,162,958 | ||||||||
Payroll and related taxes and benefits
|
(106,898 | ) | 800,407 | (548,370 | ) | |||||||
Other accrued expenses
|
(1,272,058 | ) | 6,520,892 | (120,982 | ) | |||||||
Total adjustments
|
(4,282,409 | ) | 19,093,561 | 13,491,264 | ||||||||
Net cash provided by operating activities
|
78,939,467 | 75,957,250 | 65,404,940 | |||||||||
Cash flows from investing activities:
|
||||||||||||
Proceeds from sale of marketable securities
|
9,344,002 | 12,326,828 | 54,511,225 | |||||||||
Purchases of marketable securities
|
(55,972,184 | ) | (15,671,031 | ) | (75,469,476 | ) | ||||||
Proceeds from sale of equipment
|
239,272 | 432,002 | 517,516 | |||||||||
Purchases of property and equipment
|
(5,222,812 | ) | (7,164,413 | ) | (7,880,482 | ) | ||||||
Distribution from joint ventures
|
5,551,427 | 0 | 10,133,334 | |||||||||
Net cash used in investing activities
|
(46,060,295 | ) | (10,076,614 | ) | (18,187,883 | ) |
Years Ended December 31, 2010, 2009 and 2008 |
2010
|
2009
|
2008
|
||||||||||
Increase (decrease) in cash and cash equivalents: (continued)
|
||||||||||||
Cash flows from financing activities:
|
||||||||||||
Distributions to stockholders
|
$ | (39,243,001 | ) | $ | (34,981,520 | ) | $ | (30,224,282 | ) | |||
Net increase (decrease) in cash and cash equivalents
|
(6,363,829 | ) | 30,899,116 | 16,992,775 | ||||||||
Cash and cash equivalents at beginning
|
95,012,802 | 64,113,686 | 47,120,911 | |||||||||
Cash and cash equivalents at end
|
$ | 88,648,973 | $ | 95,012,802 | $ | 64,113,686 | ||||||
Noncash investing and financing activities:
|
||||||||||||
Equipment additions from asset distribution of joint venture
|
$ | 0 | $ | 4,133 | $ | 542,651 | ||||||
Equipment additions included in accounts payable at year-end
|
43,603 | 419,852 | 65,565 | |||||||||
Stockholder distributions included in distributions payable
|
214,493 | 2,557,201 | 3,133,139 | |||||||||
Change in unrealized gain (loss) on marketable securities
|
5,036,243 | 13,337,135 | (2,682,963 | ) |
As of December 31, 2010 and 2009 and for the Years Ended December 31, 2010, 2009, and 2008
|
Note 1
|
Summary of Significant Accounting Policies
|
As of December 31, 2010 and 2009 and for the Years Ended December 31, 2010, 2009, and 2008
|
Note 1
|
Summary of Significant Accounting Policies (Continued)
|
As of December 31, 2010 and 2009 and for the Years Ended December 31, 2010, 2009, and 2008
|
Note 1
|
Summary of Significant Accounting Policies (Continued)
|
As of December 31, 2010 and 2009 and for the Years Ended December 31, 2010, 2009, and 2008
|
Note 1
|
Summary of Significant Accounting Policies (Continued)
|
As of December 31, 2010 and 2009 and for the Years Ended December 31, 2010, 2009, and 2008
|
Note 2
|
Costs and Estimated Earnings on Uncompleted Contracts
|
2010
|
2009
|
|||||||
Costs incurred on uncompleted contracts
|
$ | 171,145,793 | $ | 221,144,764 | ||||
Estimated earnings
|
8,317,316 | 20,180,682 | ||||||
179,463,109 | 241,325,446 | |||||||
Less - Billings to date
|
187,285,613 | 265,920,295 | ||||||
$ | (7,822,504 | ) | $ | (24,594,849 | ) |
2010
|
2009
|
|||||||
Costs and estimated earnings in excess of billings
|
$ | 3,231,440 | $ | 3,462,786 | ||||
Billings in excess of costs and estimated earnings
|
(11,053,944 | ) | (28,057,635 | ) | ||||
$ | (7,822,504 | ) | $ | (24,594,849 | ) |
As of December 31, 2010 and 2009 and for the Years Ended December 31, 2010, 2009, and 2008
|
Note 3
|
Marketable Securities
|
Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Estimated Fair Value
|
|||||||||||||
2010
|
||||||||||||||||
Money market funds
|
$ | 28,903,237 | $ | 0 | $ | 0 | $ | 28,903,237 | ||||||||
Common stock funds
|
27,532,595 | 16,830,410 | 162,294 | 44,200,711 | ||||||||||||
Bond funds
|
35,524,691 | 1,905,350 | 558,996 | 36,871,045 | ||||||||||||
$ | 91,960,523 | $ | 18,735,760 | $ | 721,290 | $ | 109,974,993 | |||||||||
2009
|
||||||||||||||||
Money market funds
|
$ | 1,447,037 | $ | 0 | $ | 0 | $ | 1,447,037 | ||||||||
Common stock funds
|
25,625,894 | 11,467,478 | 139,444 | 36,953,928 | ||||||||||||
Bond funds
|
16,623,257 | 1,676,064 | 25,871 | 18,273,450 | ||||||||||||
$ | 43,696,188 | $ | 13,143,542 | $ | 165,315 | $ | 56,674,415 |
2010
|
2009
|
2008
|
||||||||||
Proceeds
|
$ | 9,344,002 | $ | 12,326,828 | $ | 54,511,225 | ||||||
Gross realized gains
|
$ | 2,300,370 | $ | 743,741 | $ | 516,971 | ||||||
Gross realized losses
|
$ | 664,217 | $ | 1,912,900 | $ | 11,039,479 |
As of December 31, 2010 and 2009 and for the Years Ended December 31, 2010, 2009, and 2008
|
Note 4
|
Fair Value Measurements
|
As of December 31, 2010 and 2009 and for the Years Ended December 31, 2010, 2009, and 2008
|
Note 4
|
Fair Value Measurements (Continued)
|
December 31, 2010
|
||||||||||||||||
Recurring Fair Value Measurements Using
|
||||||||||||||||
Assets
Measured at |
Quoted Prices in
Active Markets for |
Significant
Other |
Significant
Unobservable |
|||||||||||||
Assets:
|
||||||||||||||||
Money market funds
|
$ | 28,903,237 | $ | 28,903,237 | $ | 0 | $ | 0 | ||||||||
Common stock funds
|
44,200,711 | 0 | 44,200,711 | 0 | ||||||||||||
Bond funds
|
36,871,045 | 0 | 36,871,045 | 0 | ||||||||||||
$ | 109,974,993 | $ | 28,903,237 | $ | 81,071,756 | $ | 0 |
As of December 31, 2010 and 2009 and for the Years Ended December 31, 2010, 2009, and 2008
|
Note 4
|
Fair Value Measurements (Continued)
|
December 31, 2009
|
||||||||||||||||
Recurring Fair Value Measurements Using
|
||||||||||||||||
Assets
Measured at |
Quoted Prices in
Active Markets for |
Significant
Other |
Significant
Unobservable |
|||||||||||||
Assets:
|
||||||||||||||||
Money market funds
|
$ | 1,447,037 | $ | 1,447,037 | $ | 0 | $ | 0 | ||||||||
Common stock funds
|
36,953,928 | 0 | 36,953,928 | 0 | ||||||||||||
Bond funds
|
18,273,450 | 0 | 18,273,450 | 0 | ||||||||||||
$ | 56,674,415 | $ | 1,447,037 | $ | 55,227,378 | $ | 0 |
Note 5
|
Supplies and Materials
|
Supplies and materials consist of the following:
|
||||||||
2010
|
2009
|
|||||||
At current cost:
|
||||||||
Sheet piling
|
$ | 4,312,296 | $ | 10,829,123 | ||||
Other piling
|
2,970,123 | 1,589,930 | ||||||
Miscellaneous
|
667,202 | 647,769 | ||||||
Totals
|
$ | 7,949,621 | $ | 13,066,822 |
As of December 31, 2010 and 2009 and for the Years Ended December 31, 2010, 2009, and 2008
|
Note 6
|
Advances to and Equity in Joint Ventures
|
|
The Company has an interest in seven joint ventures which were formed to complete certain contracts with the Wisconsin and Minnesota Departments of Transportation. The Company's interest in each joint venture is as follows:
|
|
●
|
33 1/3% interest in Marquette Constructors, LLC
|
|
●
|
33 1/3% interest in LHS Constructors
|
|
●
|
40% interest in ALS, a joint venture
|
|
●
|
50% interest in Arrowhead 35 Constructors, LLC
|
|
●
|
50% interest in Lunda/Ames, a joint venture
|
|
●
|
33 1/3% interest in Milwaukee Constructors, LLC
|
|
●
|
33 1/3% interest in Wisconsin Constructors, LLC
|
2010
|
2009
|
|||||||
Marquette Constructors, LLC
|
$ | 38,096 | $ | 3,597,871 | ||||
LHS Constructors
|
37,388 | 39,280 | ||||||
ALS
|
238,983 | 199,728 | ||||||
Arrowhead 35 Constructors, LLC
|
142,523 | 0 | ||||||
Lunda/Ames
|
548,543 | 0 | ||||||
Milwaukee Constructors, LLC
|
479,373 | 0 | ||||||
Wisconsin Constructors, LLC
|
1,876 | 0 | ||||||
$ | 1,486,782 | $ | 3,836,879 |
As of December 31, 2010 and 2009 and for the Years Ended December 31, 2010, 2009, and 2008
|
Note 6
|
Advances to and Equity in Joint Ventures (Continued)
|
As of December 31, 2010 and 2009 and for the Years Ended December 31, 2010, 2009, and 2008
|
Note 7
|
Short-Term Borrowing Arrangements
|
Note 8
|
Retirement Plans
|
Note 9
|
Other Comprehensive Income
|
As of December 31, 2010 and 2009 and for the Years Ended December 31, 2010, 2009, and 2008
|
Note 10
|
Self-Insurance
|
Note 11
|
Related-Party Transactions
|
Note 12
|
Major Customers
|
As of December 31, 2010 and 2009 and for the Years Ended December 31, 2010, 2009, and 2008
|
Note 12
|
Major Customers (Continued)
|
Note 13
|
Stock Transfer Agreement
|
Note 14
|
Commitment
|
Note 15
|
Concentration of Credit Risk
|
As of December 31, 2010 and 2009 and for the Years Ended December 31, 2010, 2009, and 2008
|
Note 16
|
Subsequent Events
|
As of June 30, 2011 and for the Six Month Periods Ended June 30, 2011 and 2010 |
Financial Statements
|
|
Balance Sheet
|
1
|
Statements of Income
|
3
|
Statement of Stockholders' Equity
|
4
|
Statements of Cash Flows
|
5
|
Notes to Financial Statements
|
7
|
Assets
|
||||
Current assets:
|
||||
Cash and cash equivalents
|
$ | 13,432,482 | ||
Contracts receivable:
|
||||
Current estimates
|
29,768,810 | |||
Retentions
|
9,866,542 | |||
Related parties
|
5,127,305 | |||
Costs and estimated earnings in excess of billings
|
8,031,440 | |||
Supplies and materials
|
6,947,778 | |||
Prepaid expenses and other
|
1,683,003 | |||
Total current assets
|
74,857,360 | |||
Advances to and equity in joint ventures
|
2,709,810 | |||
Property and equipment:
|
||||
Land
|
1,696,099 | |||
Buildings
|
5,523,564 | |||
Construction equipment
|
93,401,889 | |||
Office equipment
|
1,174,569 | |||
Totals
|
101,796,121 | |||
Less - Accumulated depreciation
|
79,364,310 | |||
Net property and equipment
|
22,431,811 | |||
TOTAL ASSETS
|
$ | 99,998,981 |
Liabilities and Stockholders' Equity
|
||||
Current liabilities:
|
||||
Accounts payable
|
$ | 14,245,680 | ||
Payable to subcontractors:
|
||||
Current estimates
|
13,595,028 | |||
Retentions
|
6,093,456 | |||
Billings in excess of costs and estimated earnings
|
17,288,295 | |||
Payroll and related taxes and benefits
|
6,490,453 | |||
Other accrued expenses
|
1,920,621 | |||
Total current liabilities
|
59,633,533 | |||
Stockholders' equity:
|
||||
Common stock - $100 stated value:
|
||||
Authorized - 30,000 shares
|
||||
Issued and outstanding - 22,328 shares
|
2,232,800 | |||
Additional paid-in capital
|
424,243 | |||
Retained earnings
|
37,708,405 | |||
Total stockholders' equity
|
40,365,448 | |||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 99,998,981 |
Six Month Periods Ended June 30, 2011 and 2010 |
2011
|
2010
|
|||||||
Contract revenue
|
$ | 155,154,332 | $ | 158,722,681 | ||||
Cost of Contract Revenue
|
129,111,057 | 113,117,248 | ||||||
Gross profit
|
26,043,275 | 45,605,433 | ||||||
General and Administrative Expenses
|
4,206,888 | 3,662,990 | ||||||
Income from operations
|
21,836,387 | 41,942,443 | ||||||
Other income (expense):
|
||||||||
Interest and dividend income
|
1,272,560 | 941,463 | ||||||
Insurance adjustments
|
39,591 | 0 | ||||||
Miscellaneous income
|
575,634 | 634,777 | ||||||
Nonrecurring expenses
|
(5,667,411 | ) | 0 | |||||
Equity in income from joint ventures
|
1,223,028 | 1,842,875 | ||||||
Net gain on asset and investment sales
|
18,033,846 | 1,273,161 | ||||||
Total other income (expense)
|
15,477,248 | 4,692,276 | ||||||
Net income
|
$ | 37,313,635 | $ | 46,634,719 |
Six Month Periods Ended June 30, 2011 |
Retained Earnings
|
Accumulated
|
|||||||||||||||||||||||||||||||
Additional
|
Accumulated
|
Other
|
Other
|
Total
|
||||||||||||||||||||||||||||
Common Stock
|
Paid-In
|
Adjustments
|
Retained
|
Comprehensive
|
Stockholders'
|
|||||||||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Account
|
Earnings
|
Total
|
Income (Loss)
|
Equity
|
|||||||||||||||||||||||||
Balances at January 1, 2011
|
22,328 | $ | 2,232,800 | $ | 424,243 | $ | 192,044,146 | $ | 8,349,184 | $ | 200,393,330 | $ | 18,014,470 | $ | 221,064,843 | |||||||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||||||
Net income - Six months ended June 30, 2011
|
0 | 0 | 0 | 37,313,635 | 0 | 37,313,635 | 0 | 37,313,635 | ||||||||||||||||||||||||
Reclassification adjustment on securities available for sale
|
0 | 0 | 0 | 0 | 0 | 0 | (18,014,470 | ) | (18,014,470 | ) | ||||||||||||||||||||||
Total comprehensive income
|
19,299,165 | |||||||||||||||||||||||||||||||
Distributions to stockholders
|
0 | 0 | 0 | (199,998,560 | ) | 0 | (199,998,560 | ) | 0 | (199,998,560 | ) | |||||||||||||||||||||
Balances at June 30, 2011
|
22,328 | $ | 2,232,800 | $ | 424,243 | $ | 29,359,221 | $ | 8,349,184 | $ | 37,708,405 | $ | 0 | $ | 40,365,448 |
Six Month Periods Ended June 30, 2011 and 2010 |
|
2011
|
2010
|
||||||
Increase (decrease) in cash and cash equivalents:
|
||||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$ | 37,313,635 | $ | 46,634,719 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Provision for depreciation
|
3,623,847 | 3,822,375 | ||||||
Net gain on asset and investment sales
|
(18,033,846 | ) | (1,200,008 | ) | ||||
Equity in income from joint ventures
|
(1,223,028 | ) | (1,842,875 | ) | ||||
Changes in operating assets and liabilities:
|
||||||||
Contracts receivable
|
(20,078,869 | ) | 745,902 | |||||
Costs and estimated earnings in excess of billings
|
(4,800,000 | ) | (11,933,528 | ) | ||||
Supplies and materials
|
1,001,843 | 1,468,299 | ||||||
Prepaid expenses and other
|
272,215 | 28,476 | ||||||
Accounts payable
|
7,198,274 | 8,700,690 | ||||||
Payable to subcontractors
|
8,232,137 | (110,369 | ) | |||||
Billings in excess of costs and estimated earnings
|
6,234,351 | (23,509,126 | ) | |||||
Payroll and related taxes and benefits
|
1,722,004 | 3,087,446 | ||||||
Other accrued expenses
|
(5,556,758 | ) | 2,857,758 | |||||
Total adjustments
|
(21,407,830 | ) | (17,884,960 | ) | ||||
Net cash provided by operating activities
|
15,905,805 | 28,749,759 | ||||||
Cash flows from investing activities:
|
||||||||
Proceeds from sale of marketable securities
|
131,298,465 | 5,910,213 | ||||||
Purchases of marketable securities
|
(21,385,979 | ) | (51,370,625 | ) | ||||
Proceeds from sale of equipment
|
93,643 | 194,117 | ||||||
Purchases of property and equipment
|
(915,372 | ) | (1,877,626 | ) | ||||
Advances to joint venture
|
0 | (500,000 | ) | |||||
Net cash provided by (used in) investing activities
|
109,090,757 | (47,643,921 | ) |
Six Month Periods Ended June 30, 2011 and 2010 |
Increase (decrease) in cash and cash equivalents: (continued)
|
2011
|
2010
|
||||||
Cash flows from financing activities:
|
||||||||
Distributions to stockholders
|
$ | (200,213,053 | ) | $ | (10,051,499 | ) | ||
Net decrease in cash and cash equivalents
|
(75,216,491 | ) | (28,945,661 | ) | ||||
Cash and cash equivalents at beginning
|
88,648,973 | 95,012,802 | ||||||
Cash and cash equivalents at end
|
$ | 13,432,482 | $ | 66,067,141 | ||||
Noncash investing and financing activities:
|
||||||||
Equipment additions included in accounts payable
|
$ | 536,531 | $ | 839,446 | ||||
Change in unrealized loss on marketable securities
|
(18,014,470 | ) | (3,662,253 | ) |
Note 1
|
Summary of Significant Accounting Policies
|
Note 1
|
Summary of Significant Accounting Policies (Continued)
|
Note 1
|
Summary of Significant Accounting Policies (Continued)
|
Note 2
|
Costs and Estimated Earnings on Uncompleted Contracts
|
Costs incurred on uncompleted contracts
|
$ | 237,021,771 | ||
Estimated earnings
|
21,676,519 | |||
258,698,290 | ||||
Less - Billings to date
|
267,955,145 | |||
$ | (9,256,855 | ) | ||
Included in the accompanying balance sheet at June 30, 2011, under the following captions:
|
||||
Costs and estimated earnings in excess of billings
|
$ | 8,031,440 | ||
Billings in excess of costs and estimated earnings
|
(17,288,295 | ) | ||
$ | (9,256,855 | ) |
Note 3
|
Marketable Securities
|
2011
|
2010
|
|||||||
Proceeds
|
$ | 131,298,465 | $ | 5,910,213 | ||||
Gross realized gains
|
$ | 20,019,267 | $ | 1,573,824 | ||||
Gross realized losses
|
$ | 2,067,304 | $ | 337,239 |
Note 3
|
Marketable Securities (Continued)
|
Note 4
|
Supplies and Materials
|
At current cost:
|
||||
Sheet piling
|
$ | 3,744,520 | ||
Other piling
|
2,371,821 | |||
Miscellaneous
|
831,437 | |||
Totals
|
$ | 6,947,778 |
Note 5
|
Advances to and Equity in Joint Ventures
|
|
●
|
33 1/3% interest in Marquette Constructors, LLC
|
|
●
|
33 1/3% interest in LHS Constructors
|
|
●
|
40% interest in ALS, a joint venture
|
|
●
|
50% interest in Arrowhead 35 Constructors, LLC
|
|
●
|
50% interest in Lunda/Ames, a joint venture
|
|
●
|
33 1/3% interest in Milwaukee Constructors, LLC
|
|
●
|
33 1/3% interest in Wisconsin Constructors, LLC
|
Note 5
|
Advances to and Equity in Joint Ventures (Continued)
|
Marquette Constructors, LLC
|
$ | 39,019 | ||
LHS Constructors
|
37,345 | |||
ALS
|
238,982 | |||
Arrowhead 35 Constructors, LLC
|
167,909 | |||
Lunda/Ames
|
1,724,451 | |||
Milwaukee Constructors, LLC
|
461,107 | |||
Wisconsin Constructors, LLC
|
40,997 | |||
$ | 2,709,810 |
Note 5
|
Advances to and Equity in Joint Ventures (Continued)
|
Note 6
|
Short-Term Borrowing Arrangements
|
Note 7
|
Retirement Plans
|
Note 8
|
Self-Insurance
|
Note 8
|
Self-Insurance (Continued)
|
Note 9
|
Related-Party Transactions
|
Note 10
|
Major Customers
|
Note 11
|
Stock Transfer Agreement
|
Note 12
|
Commitment
|
Note 13
|
Concentration of Credit Risk
|
Note 14
|
Subsequent Event
|
|
•
|
the accompanying notes to the unaudited pro forma condensed combined financial statements;
|
|
•
|
the separate historical unaudited financial statements of the Company as of and for the six months ended June 30, 2011 included in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2011, which are incorporated by reference herein;
|
|
•
|
the separate historical audited financial statements of the Company as of and for the fiscal year ended December 31, 2010 included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010, which are incorporated by reference herein;
|
|
•
|
the separate historical unaudited financial statements of Lunda as of and for the six months ended June 30, 2011, which are included in the exhibits to this form 8-K/A; and
|
|
•
|
the separate historical audited financial statements of Lunda as of and for the fiscal year ended December 31, 2010, which are included in the exhibits to this form 8-K/A.
|
Tutor Perini Corporation
(historical)
|
Lunda
(historical)
|
Pro Forma Adjustments
|
Note 2
|
Pro Forma Combined
|
|||||||||||||
ASSETS
|
|||||||||||||||||
Cash and Cash Equivalents
|
$ | 420,978 | $ | 13,432 | $ | (149,935 | ) |
(a)
|
$ | 284,475 | |||||||
Restricted Cash
|
32,443 | - | - | 32,443 | |||||||||||||
Accounts Receivable
|
1,021,270 | 44,763 | 2,710 |
(e)
|
1,068,743 | ||||||||||||
Costs and Estimated Earnings in Excess of Billings
|
215,117 | 8,031 | - | 223,148 | |||||||||||||
Deferred Income Taxes
|
11,440 | - | - | 11,440 | |||||||||||||
Other Current Assets
|
52,860 | 8,631 | - | 61,491 | |||||||||||||
Total Current Assets
|
1,754,108 | 74,857 | (147,225 | ) | 1,681,740 | ||||||||||||
Advances to and Equity in Joint Ventures
|
- | 2,710 | (2,710 | ) |
(e)
|
- | |||||||||||
Long-term Investments
|
88,129 | - | - | 88,129 | |||||||||||||
Property and Equipment, net
|
424,869 | 22,432 | 8,304 |
(f)
|
455,605 | ||||||||||||
Other Assets:
|
|||||||||||||||||
Goodwill
|
691,077 | - | 117,216 |
(b)
|
808,293 | ||||||||||||
Intangible Assets, net
|
160,206 | - | 26,600 |
(b)
|
186,806 | ||||||||||||
Other
|
20,968 | - | - | 20,968 | |||||||||||||
$ | 3,139,357 | $ | 99,999 | $ | 2,185 | $ | 3,241,541 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|||||||||||||||||
Current Maturities of Long-term Debt
|
$ | 32,413 | $ | - | $ | - | $ | 32,413 | |||||||||
Accounts Payable
|
630,178 | 33,934 | - | 664,112 | |||||||||||||
Billings in Excess of Costs and Estimated Earnings
|
295,013 | 17,288 | - | 312,301 | |||||||||||||
Accrued Expenses
|
97,111 | 8,412 | - | 105,523 | |||||||||||||
Total Current Liabilities
|
1,054,715 | 59,634 | - | 1,114,349 | |||||||||||||
Long-term Debt, less current maturities
|
605,969 | - | 21,750 |
(c)
|
627,719 | ||||||||||||
Deferred Income Taxes
|
83,598 | - | - | 83,598 | |||||||||||||
Other Long-term Liabilities
|
48,040 | - | 20,800 |
(g)
|
68,840 | ||||||||||||
Contingencies and Commitments
|
|||||||||||||||||
Stockholders’ Equity:
|
|||||||||||||||||
Common Stock
|
47,286 | 2,233 | (2,233 | ) |
(d)
|
47,286 | |||||||||||
Additional Paid-in Capital
|
992,546 | 424 | (424 | ) |
(d)
|
992,546 | |||||||||||
Retained Earnings
|
343,154 | 37,708 | (37,708 | ) |
(d)
|
343,154 | |||||||||||
Accumulated Other Comprehensive loss
|
(35,951 | ) | - | - | (35,951 | ) | |||||||||||
Total Stockholders’ Equity
|
1,347,035 | 40,365 | (40,365 | ) | 1,347,035 | ||||||||||||
$ | 3,139,357 | $ | 99,999 | $ | 2,185 | $ | 3,241,541 |
Tutor Perini Corporation
(historical)
|
Lunda (historical)
|
Pro Forma Adjustments
|
Note 2
|
Pro Forma Combined
|
|||||||||||||
Revenues
|
$ | 1,435,147 | $ | 155,154 | $ | 8,403 |
(p)
|
$ | 1,598,704 | ||||||||
Cost of Operations
|
1,285,474 | 129,111 | 650 |
(h)
|
1,422,500 | ||||||||||||
312 |
(q)
|
||||||||||||||||
6,953 |
(p)
|
||||||||||||||||
Gross Profit
|
149,673 | 26,043 | 488 | 176,204 | |||||||||||||
General and Administrative Expenses
|
94,125 | 4,207 | (219 | ) |
(i)
|
98,340 | |||||||||||
227 |
(p)
|
||||||||||||||||
INCOME FROM CONSTRUCTION OPERATIONS
|
55,548 | 21,836 | 480 | 77,864 | |||||||||||||
Equity in Income from Joint Ventures
|
1,223 | (1,223 | ) |
(p)
|
- | ||||||||||||
Other Income (Expense), net
|
785 | 14,255 | (17,952 | ) |
(n)
|
1,700 | |||||||||||
(1,055 | ) |
(o)
|
|||||||||||||||
5,667 |
(m)
|
||||||||||||||||
Interest Expense
|
(14,407 | ) | - | (548 | ) |
(j)
|
(14,955 | ) | |||||||||
Income before Income Taxes
|
41,926 | 37,314 | (14,631 | ) | 64,609 | ||||||||||||
(Provision) Credit for Income Taxes
|
(15,303 | ) | - | 5,589 |
(k)
|
(23,968 | ) | ||||||||||
(14,254 | ) |
(l)
|
|||||||||||||||
NET INCOME (LOSS)
|
$ | 26,623 | $ | 37,314 | $ | (23,296 | ) | $ | 40,641 | ||||||||
BASIC EARNINGS PER COMMON SHARE
|
$ | 0.56 | $ | 0.86 | |||||||||||||
DILUTED EARNINGS PER COMMON SHARE
|
$ | 0.56 | $ | 0.85 | |||||||||||||
Weighted Average Common Shares Outstanding:
|
|||||||||||||||||
BASIC
|
47,142 | 47,142 | |||||||||||||||
DILUTED
|
47,911 | 47,911 |
Tutor Perini Corporation
(historical)
|
Lunda (historical)
|
Pro Forma Adjustments
|
Note 2
|
Pro Forma Combined
|
|||||||||||||
Revenues
|
$ | 3,199,210 | $ | 356,405 | $ | 12,980 |
(p)
|
$ | 3,568,595 | ||||||||
Cost of Operations
|
2,861,362 | 273,694 | 1,300 |
(h)
|
3,146,948 | ||||||||||||
624 |
(q)
|
||||||||||||||||
9,968 |
(p)
|
||||||||||||||||
Gross Profit
|
337,848 | 82,711 | 1,088 | 421,647 | |||||||||||||
General and Administrative Expenses
|
165,536 | 8,545 | 311 |
(p)
|
174,392 | ||||||||||||
INCOME FROM CONSTRUCTION OPERATIONS
|
172,312 | 74,166 | 777 | 247,255 | |||||||||||||
Equity in Income from Joint Ventures
|
2,701 | (2,701 | ) |
(p)
|
- | ||||||||||||
Other Income (Expense), net
|
(2,280 | ) | 6,354 | (2,133 | ) |
(o)
|
1,941 | ||||||||||
Interest Expense
|
(10,564 | ) | - | (6,548 | ) |
(j)
|
(17,112 | ) | |||||||||
Income before Income Taxes
|
159,468 | 83,221 | (10,605 | ) | 232,084 | ||||||||||||
(Provision) Credit for Income Taxes
|
(55,968 | ) | - | 4,051 |
(k)
|
(83,707 | ) | ||||||||||
(31,790 | ) |
(l)
|
|||||||||||||||
NET INCOME (LOSS)
|
$ | 103,500 | $ | 83,221 | $ | (38,344 | ) | $ | 148,377 | ||||||||
BASIC EARNINGS PER COMMON SHARE
|
$ | 2.15 | $ | 3.08 | |||||||||||||
DILUTED EARNINGS PER COMMON SHARE
|
$ | 2.13 | $ | 3.05 | |||||||||||||
Weighted Average Common Shares Outstanding:
|
|||||||||||||||||
BASIC
|
48,111 | 48,111 | |||||||||||||||
DILUTED
|
48,649 | 48,649 |
|
1.
|
Basis of Pro Forma Presentation
|
Amount
|
||||
(In thousands)
|
||||
Cash consideration
|
$ | 149,935 | ||
Seller Notes
|
21,750 | |||
Fair value of contingent consideration
|
20,800 | |||
Total purchase price consideration
|
$ | 192,485 |
Weighted Average
|
|||||
(in thousands)
|
Amount
|
Useful Life
|
|||
Identifiable assets acquired and liabilities assumed:
|
|||||
Cash and Cash Equivalents
|
$ | 13,432 | |||
Accounts Receivable
|
47,473 | ||||
Other Assets
|
16,662 | ||||
Property and Equipment
|
30,736 | ||||
Identifiable Intangible Assets:
|
|||||
Contract backlog
|
3,900 |
3 years
|
|||
Trade name
|
22,700 | ||||
Goodwill
|
117,216 | ||||
Total assets acquired
|
252,119 | ||||
Current liabilities
|
59,634 | ||||
Other Long-term Liabilities
|
- | ||||
Total purchase price
|
$ | 192,485 |
|
•
|
increased scale and greater diversification of our business;
|
|
•
|
entry into additional high growth and high-margin markets and projects;
|
|
•
|
additional management depth and enhanced management capabilities;
|
|
•
|
enhanced civil business operations, due to the complementary and synergistic strengths of the two companies in civil market segments;
|
|
•
|
greater opportunities to win new, substantial contracts to drive accelerated growth;
|
|
•
|
ability to use the strength of the Company’s balance sheet to win additional large civil and public works projects that required surety capacity in excess of what Lunda was able to obtain; and
|
|
•
|
opportunities to realize significant synergies.
|