Perini Corporation (NYSE:PCR), a leading building, civil
construction and construction management company, today reported
results for the third quarter ended September 30, 2005. Third
Quarter Results Net income was $6.0 million for the third quarter
of 2005, as compared to third quarter net income of $6.4 million in
2004. Diluted earnings per common share were $0.22 for the third
quarter of 2005, as compared to $0.25 for the third quarter of
2004. Revenues from construction operations were $380.3 million for
the third quarter of 2005, compared to revenues of $467.7 million
reported for the third quarter of 2004. The third quarter of 2005
operating results reflect a decrease in revenues, most notably in
the building segment, due primarily to the shift in timing of new
work awards in the hospitality and gaming markets into later in
2005 and 2006. This decrease was offset by higher gross margins
experienced by all of the Company's business segments. Also,
general and administrative expenses increased for the third quarter
of 2005 from the comparable period in 2004 due to the inclusion of
Cherry Hill Construction, Inc. acquired in January 2005 and an
increase in compensation expense relating to the amortization of
certain restricted stock awards granted in the second half of 2004.
Robert Band, President and Chief Operating Officer, stated that,
"We are pleased to report a profitable performance for the third
quarter of 2005. We have continued to convert the pending awards
and new work opportunities to contracts achieving a record backlog
of $3.33 billion, which represents a 189% increase in backlog of
work on hand as compared to December 31, 2004. In addition to the
$1.94 billion of new awards added during the third quarter of 2005,
the Company recently announced the award of the $463 million
expansion of the Foxwoods Resort Casino. We continue to work
closely with MGM Mirage to finalize the construction plans and
contracts for Project CityCenter in Las Vegas, which would add in
excess of $3.0 billion if signed into backlog. Given the strong
internal growth along with the recent acquisitions of Cherry Hill
Construction and Rudolph and Sletten, we are anticipating a strong
fourth quarter of 2005." Nine Month Results For the first nine
months of 2005, net income was $18.0 million, as compared to $29.8
million for the first nine months of 2004. Diluted earnings per
common share were $0.66 for the first nine months of 2005, as
compared to $1.16 for the first nine months of 2004. The results
for the first nine months of 2004 reflect a lower than normal tax
rate due to the realization of a portion of the federal tax benefit
not recognized in prior years. Assuming an effective income tax
rate of 39%, pro forma net income for the nine months ended
September 30, 2004 would have been $21.2 million. Similarly, pro
forma diluted earnings per common share for the nine months ended
September 30, 2004 would have been $0.81. Please refer to Table 1
at the end of this press release for a reconciliation of reported
net income in accordance with generally accepted accounting
principles to pro forma net income. Revenues from construction
operations totaled $1,130.3 million for the first nine months of
2005, compared to revenues of $1,443.9 million reported for the
first nine months of 2004. Backlog at $3.33 Billion The backlog of
uncompleted construction work at September 30, 2005 was $3.33
billion, a 189% increase compared to $1.15 billion at December 31,
2004. The September 30, 2005 backlog includes new contract awards
added during the third quarter of 2005 totaling $1.94 billion and
including approximately $1.54 billion of hotel and casino work in
Las Vegas, $185 million of additional work in Iraq, $65 million of
bridge rehabilitation work in New Jersey, and $66 million of other
civil projects in the mid-Atlantic region. The $3.3 billion in
backlog at September 30, 2005 excludes the recently announced $463
million contract for the expansion of the Foxwoods Resort Casino in
southeastern Connecticut, the previously announced award of Project
CityCenter in Las Vegas with an estimated value in excess of $3.0
billion for which contracts have not been signed and the estimated
$945 million in the backlog of Rudolph and Sletten. Adjusted for
these items and assuming the contracts for Project CityCenter are
signed, the Company's backlog as of September 30, 2005 would have
been approximately $7.7 billion. Financial Condition Remains Strong
in 2005 The Company's financial condition remained strong at
September 30, 2005. Working capital increased from $178.0 million
at December 31, 2004 to $183.0 million at September 30, 2005. The
Company's solid base of shareholders' equity totaling $195.9
million at September 30, 2005 and the financial strength of the
Company's balance sheet and availability under its amended credit
facility adequately supports Perini's growing backlog. Outlook As a
result of the strong contract awards received in the third quarter
of 2005 the Company affirms previously released 2005 revenue
guidance in the range of $1.5 to $1.6 billion and narrows the
diluted earnings per share guidance to $0.95 to $1.05. The diluted
earnings per share guidance does not include the expected favorable
impact of approximately $0.09 per share from the settlement with
certain holders of our $21.25 Preferred Stock. Looking ahead to
2006, as a result of the new and pending awards and the acquisition
of Rudolph and Sletten, the Company expects a strong contribution
from its building segment. In addition, the Company anticipates
continued improvement from its civil segment and another year of
profitable operations from its management services segment. The
Company's initial guidance for 2006 revenues is in the range of
$2.6 to $2.8 billion with diluted earnings per share ranging from
$1.30 to $1.45. About Perini Corporation Perini Corporation is a
leading construction services company offering diversified general
contracting, construction management 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, preconstruction
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 sitework, concrete
forming and placement and steel erection. We are known for our
hospitality and gaming industry projects, sports and entertainment,
educational, and healthcare facilities as well as large and complex
civil construction projects and construction management services to
U.S. military and government agencies. Non-GAAP Measures To
supplement our unaudited consolidated financial statements
presented on a generally accepted accounting principles (GAAP)
basis, we sometimes use non-GAAP measures of net income, earnings
per share and other measures that we believe are appropriate to
enhance an overall understanding of our historical financial
performance and future prospects. The non-GAAP results, which are
adjusted to exclude certain costs, expenses, gains and losses from
the comparable GAAP measures, are an indication of our baseline
performance before gains, losses or other charges that are
considered by management to be outside of our core operating
results. These non-GAAP results are among the indicators management
uses as a basis for evaluating our financial performance as well as
for forecasting future periods. For these reasons, management
believes these non-GAAP measures can be useful to investors,
potential investors and others. The presentation of this additional
information is not meant to be considered in isolation or as a
substitute for net income or earnings per share prepared in
accordance with GAAP. The statements contained in this Release 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. These
forward-looking statements are based on the Company's current
expectations and beliefs concerning future developments and their
potential effects on the Company. There can be no assurance that
future developments affecting the Company will be those anticipated
by the Company. 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 successfully and timely complete construction projects,
the ability of the Company to convert MGM Project CityCenter and
other pending awards to backlog, the Company's ability to
successfully complete the integration of Rudolph and Sletten, the
risk that the Company will incur unanticipated costs related to the
acquired operations or not realize expected revenues, synergies and
cost savings, the potential delay, suspension, termination, or
reduction in scope of a construction project; the continuing
validity of the underlying assumptions and estimates of total
forecasted project revenues, costs and profits and project
schedules; the outcomes of pending or future litigation,
arbitration or other dispute resolution proceedings; the
availability of borrowed funds on terms acceptable to the Company;
the ability to retain certain members of management; the ability to
obtain surety bonds to secure its performance under certain
construction contracts; possible labor disputes or work stoppages
within the construction industry; changes in federal and state
appropriations for infrastructure projects; possible changes or
developments in worldwide or domestic political, social, economic,
business, industry, market and regulatory conditions or
circumstances; and 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. 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. -0- *T Perini Corporation (NYSE) Summary of Consolidated
Earnings (Unaudited) (In Thousands of Dollars) For the Three Months
For the Nine Months Ended Sept. 30, Ended Sept. 30,
------------------- ----------------------- 2005 2004 2005 2004
--------- --------- ----------- ----------- Construction Revenues:
Building $246,976 $346,602 $719,415 $1,008,112 Civil 77,860 46,665
191,956 110,470 Management services 55,478 74,476 218,880 325,273
--------- --------- ----------- ----------- TOTAL CONSTRUCTION
REVENUES $380,314 $467,743 $1,130,251 $1,443,855 =========
========= =========== =========== Gross profit $24,872 $23,633
$72,211 $70,892 General and administrative expenses 14,710 12,912
40,982 31,720 --------- --------- ----------- ----------- Income
from construction operations 10,162 10,721 31,229 39,172 Other
income (expense), net 29 (688) (638) (3,939) Interest expense (418)
(198) (1,091) (506) --------- --------- ----------- -----------
Income before income taxes 9,773 9,835 29,500 34,727 Provision for
income taxes (a) (3,821) (3,405) (11,538) (4,900) ---------
--------- ----------- ----------- NET INCOME $5,952 $6,430 $17,962
$29,827 Less: Dividends accrued on Preferred Stock (297) (297)
(891) (891) --------- --------- ----------- ----------- Total
available for common stockholders $5,655 $6,133 $17,071 $28,936
========= ========= =========== =========== BASIC EARNINGS PER
COMMON SHARE $0.22 $0.26 $0.67 $1.24 ========= =========
=========== =========== DILUTED EARNINGS PER COMMON SHARE $0.22
$0.25 $0.66 $1.16 ========= ========= =========== ===========
Weighted average common shares outstanding: Basic 25,541 23,906
25,392 23,376 Effect of dilutive stock options, warrants and
restricted stock units outstanding 495 1,006 623 1,550 ---------
--------- ----------- ----------- Diluted 26,036 24,912 26,015
24,926 --------- --------- ----------- ----------- (a) The
lower-than-normal tax rate reflected in the provision for income
taxes for the nine months ended September 30, 2004 is due to the
realization of a portion of the federal tax benefit not recognized
in prior years due to certain accounting limitations. Selected
Balance Sheet Data (Unaudited) (In Thousands of Dollars) September
30, December 31, 2005 2004 ------------- ------------ Total assets
$618,013 $654,265 Working capital $183,021 $178,029 Long-term debt,
less current maturities $17,429 $8,608 Stockholders' equity
$195,936 $174,034 Perini Corporation (NYSE) Table 1 Reconciliation
of Reported Net Income to Pro Forma Net Income (A) (Unaudited) (In
Thousands of Dollars) Nine Months Ended Sept. 30, 2004
-------------- Reported net income $29,827 Plus: Provision for
income taxes 4,900 -------------- Income before income taxes 34,727
Provision for income taxes assuming a 39% effective rate 13,544
-------------- Pro forma net income $21,183 Less: Dividends accrued
on Preferred Stock (891) -------------- Pro forma total available
for common stockholders $20,292 ============== Pro forma basic
earnings per common share $0.87 ============== Pro forma diluted
earnings per common share $0.81 ============== Weighted average
common shares outstanding: Basic 23,376 Effect of dilutive stock
options, warrants and restricted stock units outstanding 1,550
-------------- Diluted 24,926 (A) The calculation of pro forma net
income and pro forma earnings per common share assumes an effective
tax rate of 39% which more closely approximates the Company's
effective tax rate on a prospective basis. *T
Perini (NYSE:PCR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Perini (NYSE:PCR)
Historical Stock Chart
From Jul 2023 to Jul 2024