- Revenue of $1.21 billion compared to $1.25 billion in Q1
2020
- Income from construction operations of $49.7 million, up 5%
over prior year, driven by a shift toward higher-margin projects
within the Civil segment
- Diluted earnings per share (“EPS”) of $0.31 compared to
$0.34 in Q1 2020
- Backlog remains solid at $8.1 billion, with 59% comprised of
higher-margin Civil projects
- Affirming 2021 EPS guidance of $1.80 to $2.20
Tutor Perini Corporation (the “Company”) (NYSE: TPC), a leading
civil, building and specialty construction company, reported
results today for the first quarter of 2021. Revenue was $1.21
billion compared to $1.25 billion for the first quarter of last
year, as reduced activities on Building segment projects were
mostly offset by increased volume on Specialty Contractors segment
projects. Despite the slightly lower revenue, income from
construction operations for the first quarter of 2021 was $49.7
million, up 5% compared to $47.2 million for the first quarter of
last year. The increase was primarily driven by a shift toward
higher-margin projects within the Civil segment, including
favorable contributions from projects in California and Guam. Net
income attributable to the Company for the first quarter of 2021
was $16.0 million, or $0.31 per diluted share, compared to $17.4
million, or $0.34 per diluted share, for the first quarter of 2020.
The decrease in net income attributable to the Company, and
correspondingly EPS, was principally driven by a higher effective
tax rate in the current period compared to the same quarter last
year.
First quarter 2021 backlog remained solid at $8.1 billion
compared to $8.3 billion at the end of 2020. As anticipated,
backlog declined as a result of revenue that modestly outpaced new
awards in the quarter. New awards totaled $1.0 billion and included
a $269 million government building facility in California, more
than $220 million for various civil projects in the Midwest and
$120 million of additional funding for a mass-transit project in
California. The Company now anticipates booking the previously
announced $478 million LAX Airport Metro Connector project into
backlog in the second quarter of 2021. The Company also anticipates
bidding on several large projects this year and during the first
half of 2022, and expects backlog growth to resume in the second
half of 2021 to levels that will continue to support future revenue
growth.
Outlook and Guidance
“Overall, we delivered solid first-quarter results that were
modestly ahead of expectations,” commented Ronald Tutor, Chairman
and Chief Executive Officer. Tutor continued, “We are currently
bidding several large projects, with a large stream of other
significant bids expected to occur later this year and continuing
well into next year. We look forward to winning our share of these
opportunities and resuming strong backlog growth in the second half
of this year. We are also encouraged by the Biden Administration's
strong focus on infrastructure investments and the potential for
substantial federal infrastructure spending on the horizon, which
would further bolster our already positive long-term business
outlook.”
Based on the Company’s year-to-date results in 2021 and the
current outlook for the remainder of the year, the Company is
affirming its EPS guidance and still expects EPS to be in the range
of $1.80 to $2.20.
First Quarter 2021 Conference Call
The Company will host a conference call at 2:00 PM Pacific Time
on Wednesday, May 5, 2021, to discuss the first quarter 2021
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. 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 customers 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 planning and scheduling of
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 customers 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, 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: the COVID-19
pandemic, which has adversely impacted, and could continue to
adversely impact, our business, financial condition and results of
operations; revisions of estimates of contract risks, revenue or
costs, the timing of new awards or the pace of project execution,
which may result in losses or lower than anticipated profit;
unfavorable outcomes of existing or future litigation or dispute
resolution proceedings against 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; the
requirement to perform extra, or change order, work resulting in
disputes or claims and adversely affecting our working capital,
profits and cash flows; a significant slowdown or decline in
economic conditions; risks and other uncertainties associated with
assumptions and estimates used to prepare financial statements;
inability to retain key members of our management, to hire and
retain personnel required to complete projects or implement
succession plans for key officers; increased competition and
failure to secure new contracts; decreases in the level of
government spending for infrastructure and other public projects;
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; client cancellations of, or reductions in
scope under, contracts reported in our backlog; possible systems
and information technology interruptions, including due to
cyberattack, systems failures or other similar events; failure of
our joint venture partners to perform their venture obligations,
which could impose additional financial and performance obligations
on us, resulting in reduced profits or losses and/or reputational
harm; economic, political, regulatory and other risks, including
civil unrest, security issues, labor conditions, corruption and
other unforeseeable events in countries where we do business,
resulting in unanticipated losses; the impact of inclement weather
conditions on projects; risks related to government contracts and
related procurement regulations; violations of the U.S. Foreign
Corrupt Practices Act and similar worldwide anti-bribery laws,
which could result in unanticipated losses; adverse health events,
such as an epidemic or a pandemic; failure to meet our obligations
under our debt agreements; downgrades in our credit ratings;
impairment of our goodwill or other indefinite-lived intangible
assets; uncertainty from the expected discontinuance of the London
Interbank Offered Rate and transition to any other interest rate
benchmark; 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, 2020 filed on February 24, 2021 and in
other reports that we file with the Securities and Exchange
Commission from time to time. 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.
Tutor Perini
Corporation
Condensed Consolidated
Statements of Income
Unaudited
Three Months Ended March
31,
(in thousands, except per common share
amounts)
2021
2020
REVENUE
$
1,207,595
$
1,250,729
COST OF OPERATIONS
(1,097,140
)
(1,139,649
)
GROSS PROFIT
110,455
111,080
General and administrative expenses
(60,751
)
(63,853
)
INCOME FROM CONSTRUCTION
OPERATIONS
49,704
47,227
Other income, net
175
481
Interest expense
(17,810
)
(16,436
)
INCOME BEFORE INCOME TAXES
32,069
31,272
Income tax expense
(6,964
)
(5,134
)
NET INCOME
25,105
26,138
LESS: NET INCOME ATTRIBUTABLE TO
NONCONTROLLING INTERESTS
9,071
8,767
NET INCOME ATTRIBUTABLE TO TUTOR PERINI
CORPORATION
$
16,034
$
17,371
BASIC EARNINGS PER COMMON SHARE
$
0.31
$
0.35
DILUTED EARNINGS PER COMMON
SHARE
$
0.31
$
0.34
WEIGHTED-AVERAGE COMMON SHARES
OUTSTANDING:
BASIC
50,913
50,338
DILUTED
51,348
50,836
Tutor Perini
Corporation
Segment Information
Unaudited
Reportable Segments
(in thousands)
Civil
Building
Specialty Contractors
Total
Corporate
Consolidated Total
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
)
(a)
$
49,704
Capital expenditures
$
9,564
$
73
$
145
$
9,782
$
53
$
9,835
Depreciation and amortization(b)
$
22,713
$
432
$
959
$
24,104
$
2,770
$
26,874
Three Months Ended March 31,
2020
Total revenue
$
580,087
$
505,082
$
282,452
$
1,367,621
$
—
$
1,367,621
Elimination of intersegment revenue
(93,458
)
(23,318
)
(116
)
(116,892
)
—
(116,892
)
Revenue from external customers
$
486,629
$
481,764
$
282,336
$
1,250,729
$
—
$
1,250,729
Income (loss) from construction
operations
$
46,121
$
3,516
$
8,279
$
57,916
$
(10,689
)
(a)
$
47,227
Capital expenditures
$
11,192
$
12
$
473
$
11,677
$
16
$
11,693
Depreciation and amortization(b)
$
18,616
$
427
$
993
$
20,036
$
2,775
$
22,811
(a)
Consists primarily of corporate general
and administrative expenses.
(b)
Depreciation and amortization is included
in income (loss) from construction operations.
Tutor Perini
Corporation
Condensed Consolidated Balance
Sheets
Unaudited
(in thousands, except share and per share
amounts)
As of March 31,
2021
As of December 31,
2020
ASSETS
CURRENT ASSETS:
Cash and cash equivalents ($91,768 and
$105,735 related to variable interest entities (“VIEs”))
$
318,720
$
374,289
Restricted cash
82,086
77,563
Restricted investments
74,062
78,912
Accounts receivable ($78,924 and $86,012
related to VIEs)
1,368,892
1,415,063
Retainage receivable ($129,050 and
$122,335 related to VIEs)
661,382
648,441
Costs and estimated earnings in excess of
billings ($55,315 and $39,846 related to VIEs)
1,255,992
1,236,734
Other current assets ($49,182 and $51,746
related to VIEs)
236,943
249,455
Total current assets
3,998,077
4,080,457
PROPERTY AND EQUIPMENT ("P&E"),
net of accumulated depreciation of $452,904 and $434,294 (net
P&E of $8,526 and $12,840 related to VIEs)
478,338
489,217
GOODWILL
205,143
205,143
INTANGIBLE ASSETS, NET
116,472
123,115
OTHER ASSETS
147,977
147,685
TOTAL ASSETS
$
4,946,007
$
5,045,617
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt, net
of unamortized discount and debt issuance costs totaling $941 and
$2,040
$
101,020
$
100,188
Accounts payable ($81,694 and $116,461
related to VIEs)
716,326
794,611
Retainage payable ($28,027 and $26,439
related to VIEs)
318,692
315,135
Billings in excess of costs and estimated
earnings ($332,704 and $362,427 related to VIEs)
818,757
839,222
Accrued expenses and other current
liabilities ($6,838 and $9,595 related to VIEs)
176,264
215,207
Total current liabilities
2,131,059
2,264,363
LONG-TERM DEBT, less current
maturities, net of unamortized discount and debt issuance costs
totaling $19,478 and $20,209
924,651
925,277
DEFERRED INCOME TAXES
82,950
82,966
OTHER LONG-TERM LIABILITIES
235,266
230,066
TOTAL LIABILITIES
3,373,926
3,502,672
COMMITMENTS AND CONTINGENCIES
EQUITY
Stockholders' equity:
Preferred stock - authorized 1,000,000
shares ($1 par value), none issued
—
—
Common stock - authorized 112,500,000
shares ($1 par value), issued and outstanding 50,937,607 and
50,827,205 shares
50,938
50,827
Additional paid-in capital
1,127,624
1,127,385
Retained earnings
438,419
422,385
Accumulated other comprehensive loss
(47,356
)
(46,741
)
Total stockholders' equity
1,569,625
1,553,856
Noncontrolling interests
2,456
(10,911
)
TOTAL EQUITY
1,572,081
1,542,945
TOTAL LIABILITIES AND EQUITY
$
4,946,007
$
5,045,617
Tutor Perini
Corporation
Condensed Consolidated
Statements of Cash Flows
Unaudited
Three Months Ended March
31,
(in thousands)
2021
2020
Cash Flows from Operating
Activities:
Net income
$
25,105
$
26,138
Adjustments to reconcile net income to net
cash used in operating activities:
Depreciation
20,231
16,999
Amortization of intangible assets
6,643
5,812
Share-based compensation expense
2,448
4,244
Change in debt discounts and deferred debt
issuance costs
2,017
3,486
Deferred income taxes
95
2,474
(Gain) loss on sale of property and
equipment
20
(461
)
Changes in other components of working
capital
(108,385
)
(90,884
)
Other long-term liabilities
5,027
1,061
Other, net
95
(2,876
)
NET CASH USED IN OPERATING
ACTIVITIES
(46,704
)
(34,007
)
Cash Flows from Investing
Activities:
Acquisition of property and equipment
(9,835
)
(11,693
)
Proceeds from sale of property and
equipment
457
583
Investments in securities
(2,910
)
(9,696
)
Proceeds from maturities and sales of
investments in securities
6,870
6,211
NET CASH USED IN INVESTING
ACTIVITIES
(5,418
)
(14,595
)
Cash Flows from Financing
Activities:
Proceeds from debt
74,251
348,688
Repayment of debt
(75,939
)
(283,915
)
Cash payments related to share-based
compensation
(1,236
)
(694
)
Distributions paid to noncontrolling
interests
—
(13,500
)
Contributions from noncontrolling
interests
4,000
—
NET CASH PROVIDED BY FINANCING
ACTIVITIES
1,076
50,579
Net increase (decrease) in cash, cash
equivalents and restricted cash
(51,046
)
1,977
Cash, cash equivalents and restricted
cash at beginning of period
451,852
202,101
Cash, cash equivalents and restricted
cash at end of period
$
400,806
$
204,078
Tutor Perini
Corporation
Backlog Information
Unaudited
(in millions)
Backlog at December 31,
2020
New Awards in the Three Months
Ended March 31, 2021(a)
Revenue in the Three Months
Ended March 31, 2021
Backlog at March 31,
2021
Civil
$
4,783.6
$
457.0
$
(475.6
)
$
4,765.0
Building
1,702.3
344.2
(407.2
)
1,639.3
Specialty Contractors
1,859.8
157.5
(324.8
)
1,692.5
Total
$
8,345.7
$
958.7
$
(1,207.6
)
$
8,096.8
(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/20210505005916/en/
Tutor Perini Corporation Jorge Casado, 818-362-8391 Vice
President, Investor Relations & Corporate Communications
www.tutorperini.com
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