Perini Corporation Announces Q1 2007 Results
May 08 2007 - 4:00PM
Business Wire
Perini Corporation (NYSE:PCR), a leading building, civil
construction and construction management company, today reported
results for the first quarter ended March 31, 2007. First Quarter
Results Revenues from construction operations were $987.4 million
for the first quarter of 2007, compared to revenues of $612.8
million for the first quarter of 2006. The increase in revenues is
primarily due to an increased volume of work in the hospitality and
gaming market as a result of the significant new contract awards
received in the latter half of 2005 which are now well into the
construction phase. Net income was $22.7 million for the first
quarter of 2007, as compared to net income of $8.1 million for the
first quarter of 2006. Diluted earnings per common share were $0.84
for the first quarter of 2007, as compared to $0.30 for the first
quarter of 2006. Robert Band, President and Chief Operating
Officer, stated that, �We are pleased to report a strong
performance for the first quarter of 2007, led by our building and
management services segments. The increase in our revenues and
profit primarily reflects the conversion of our substantial
building segment backlog into revenues and profit as anticipated,
and an exceptionally strong management services segment performance
resulting in a significant contribution to our first quarter
operating results. In addition, our backlog of $8.6 billion remains
near its all-time record level. Given the visibility provided from
this backlog, we continue to look forward to what we anticipate
will be a record year in 2007 for revenues and earnings per share.�
Backlog at $8.6 Billion The backlog of uncompleted construction
work at March 31, 2007 was $8.6 billion, up from the $8.5 billion
backlog reported at December 31, 2006. The March 31, 2007 backlog
includes new contract awards added during the first quarter of 2007
totaling approximately $1.1 billion, which includes approximately
$580 million of additional work in the hospitality and gaming
market in Las Vegas, as well as approximately $435 million of
various new awards at Rudolph and Sletten including the healthcare,
high-tech and office building markets. Financial Condition Remains
Strong in 2007 The Company�s financial condition remained strong at
March 31, 2007. Working capital increased to $203.4 million at
March 31, 2007, from $194.0 million at December 31, 2006. The
Company improved its solid base of shareholders� equity to $271.3
million at March 31, 2007. In addition, the Company has $113.5
million available to borrow under its new expanded credit facility
at March 31, 2007. The Company believes its strong financial
position and credit arrangements are more than adequate to support
its substantial backlog. Outlook Based on the strong first quarter
performance, the Company increases its guidance for 2007 revenues
from a range of $3.8 to $4.0 billion to a range of $4.0 to $4.2
billion, and diluted earnings per share from a range of $2.00 to
$2.20 to a range of $2.40 to $2.60. 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, 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 sitework, concrete forming and placement and steel
erection. We are known for our hospitality and gaming industry
projects, sports and entertainment, educational, transportation,
healthcare, biotech, pharmaceutical and high-tech facilities, as
well as large and complex civil construction projects and
construction management services to U.S. military and government
agencies. 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 Company�s ability to convert backlog into revenue; 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. Perini Corporation
(NYSE) Summary of Consolidated Earnings (Unaudited) (In Thousands
of Dollars) � For the Three Months Ended March 31, 2007� 2006�
Revenues: Building $ 886,855� $ 483,722� Civil 57,103� 70,734�
Management services 43,398� 58,307� TOTAL REVENUES $ 987,356� $
612,763� � Gross profit $ 57,897� $ 32,322� General and
administrative expenses 25,157� 17,871� Income from construction
operations 32,740� 14,451� Other income, net 2,356� 423� Interest
expense (690) (947) Income before income taxes 34,406� 13,927�
Provision for income taxes (11,753) (5,837) NET INCOME $ 22,653� $
8,090� � Less: Dividends accrued on Preferred Stock -� (98) Total
available for common stockholders $ 22,653� $ 7,992� � BASIC
EARNINGS PER COMMON SHARE $ 0.85� $ 0.31� � DILUTED EARNINGS PER
COMMON SHARE $ 0.84� $ 0.30� � Weighted average common shares
outstanding: Basic 26,638� 26,092� Effect of dilutive stock
options, warrants and restricted stock units outstanding 482� 544�
Diluted 27,120� 26,636� Selected Balance Sheet Data (Unaudited) (In
Thousands of Dollars) � March 31, December 31, 2007� 2006� Total
assets $ 1,268,675� $ 1,195,992� Working capital $ 203,443� $
193,952� Long-term debt, less current maturities $ 16,414� $
34,135� Stockholders' equity $ 271,292� $ 243,859�
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