Perini Corporation (NYSE: PCR), a leading building, civil
construction and construction management company, today reported
record results for the third quarter ended September 30, 2008. The
Company also refines guidance for full year 2008 and lowered
guidance for 2009 due to current challenges in the credit markets.
Third Quarter Results Net income was $34.1 million, as compared to
net income of $24.0 million for the third quarter of 2007. Diluted
earnings per common share were $1.01, as compared to $0.87 for the
third quarter of 2007. Revenues from construction operations were
$1.41 billion for the quarter, compared to revenues of $1.24
billion for the third quarter of 2007. The increase in revenues is
primarily due to an increased volume of work in the hospitality and
gaming market in Las Vegas. Perini�s acquisition of Tutor-Saliba
Corporation was completed on September 8, 2008 and the above
results include one month of operating results for the combined
company. Robert Band, President and Chief Operating Officer, said:
�We are pleased to report another record quarter for both revenues
and net income, again led by our building and management services
segments and an improved profit contribution from our civil
segment. We continue to benefit in the marketplace from our ability
to complete complex projects on time and on budget. We look forward
to the contribution that Tutor-Saliba will make in all of our
operating segments.� Nine Month Results For the first nine months
of 2008, net income was $87.8 million, as compared to net income of
$74.2 million for the first nine months of 2007. Diluted earnings
per common share were $2.96 for the first nine months of 2008, as
compared to $2.71 for the first nine months of 2007. Revenues from
construction operations were $4.06 billion for the first nine
months of 2008, compared to revenues of $3.38 billion for the first
nine months of 2007. The increase in revenues is primarily due to
an increased volume of work in the hospitality and gaming,
healthcare and office building markets in Las Vegas and California.
Backlog at $8.3 billion The backlog of uncompleted construction
work as of September 30, 2008 was $8.3 billion, an increase of $700
million from the $7.6 billion backlog reported on December 31,
2007. The September 30, 2008 backlog includes approximately $1.2
billion of backlog, before elimination of intercompany amounts,
added in the third quarter of 2008 due to the acquisition of
Tutor-Saliba. The September 30, 2008 backlog also includes new
contract awards and adjustments to contracts in process added
during the third quarter of 2008 totaling approximately $1.95
billion, including a $1.2 billion contract to build the new
Terminal 3 at McCarran International Airport in Las Vegas and
approximately $193 million of additional work in the hospitality
and gaming market in Las Vegas. The Company�s management services
segment added $360 million of new awards primarily for work in
Iraq, including continued overhead cover protection projects and a
runway project in Guam. The Company�s civil segment was awarded a
$73 million contract for a new roadway project in Virginia.
Financial Condition Remains Strong in 2008 The Company�s financial
condition remains strong. As of September 30, 2008, working capital
decreased to $254.9 million from $293.5 million at December 31,
2007. The decrease was primarily due to the classification of
$100.3 million of the Company�s investments in auction-rate
securities as long-term investments. In addition, the Company has
$137 million available to borrow under its credit facility and an
additional $111.3 million available to borrow under its temporary
supplementary credit facility as of September 30, 2008. The Company
believes its financial position and credit arrangements are
sufficient to support the Company�s substantial backlog and planned
acquisitions. Outlook Guidance for the full year of 2008 is
estimated to be within the ranges previously provided. Revenues are
estimated to be in the range of $5.6 to $5.8 billion and diluted
earnings per share are estimated to be in the range of $3.55 to
$3.65 per share. Based on current economic conditions, including
the challenges in credit markets that some customers are
experiencing, the Company believes there will be delays in new
construction starts in 2009 that will likely impact its financial
results for next year. Accordingly, the Company is lowering its
full-year 2009 guidance for revenues from a range of $7.3 to $7.8
billion to an estimated range of $6 to $6.5 billion and diluted
earnings per share from a range of $4.00 to $4.20 per share to an
estimated range of $2.80 to $3.00 per share. Beyond 2009, the
Company is still evaluating the longer term impacts and will defer
providing a growth target until more data is available. The Company
is currently in the process of its annual impairment testing to
assess the potential amount of impairment, if any, of the value of
goodwill and indefinite-lived intangible assets initially recorded
in connection with the September 2008 acquisition of Tutor-Saliba.
The 2008 earnings estimate, noted above, does not reflect the
impact of any impairment charge, should it be determined that one
is required. Ronald Tutor, Chairman and Chief Executive Officer of
Perini, said: �The hospitality and gaming markets in the United
States and the building market in Dubai are experiencing delays in
their plans to start new construction in 2009. However, we remain
optimistic that the U.S. government will recognize the need to
accelerate spending in public works building and civil
infrastructure projects. We are well positioned to capture our
share of opportunities when this happens.� Third Quarter Conference
Call The Company will host a conference call at 4:30 PM Eastern
Time on Thursday, November 6, 2008, to discuss the Company�s third
quarter 2008 results. To participate in the conference call, please
dial the following number five to ten minutes prior to the
scheduled conference call time: (800) 299-8538 and enter the pass
code 45494891. International callers should dial (617) 786-2902 and
enter the pass code 45494891. If you are unable to participate in
the call at this time, a replay will be available on Thursday,
November 6 at 5:30 PM Eastern Time, through Thursday, November 13
at midnight Eastern Time. To access the replay dial (888) 286-8010
and enter the conference ID number 34190939. International callers
should dial (617) 801-6888 and enter the same conference ID number
34190939. 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, steel erection, and electrical and
mechanical, plumbing and HVAC. We are known for our hospitality and
gaming industry projects, municipal offices, 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, strategies
regarding the future and statements regarding future guidance 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. 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 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 ability to realize the
expected synergies resulting from the transaction with Tutor-Saliba
in the amounts of in the timeframe anticipated and the ability to
integrate Tutor-Saliba�s businesses into those of Perini in a
timely and cost-efficient manner. 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 For
the Nine Months Ended Sept. 30, Ended Sept. 30, 2008 � 2007 2008 �
2007 Revenues: Building $ 1,294,331 $ 1,145,092 $ 3,757,041 $
3,084,676 Civil 74,069 63,025 192,773 183,256 Management services �
44,235 � � 34,549 � � 107,544 � � 113,710 � TOTAL REVENUES $
1,412,635 � $ 1,242,666 � $ 4,057,358 � $ 3,381,642 � � Gross
profit $ 85,507 $ 63,895 $ 223,067 $ 186,694 General and
administrative expenses � 33,244 � � 30,396 � � 89,241 � � 79,734 �
Income from construction operations 52,263 33,499 133,826 106,960
Other income, net 2,657 4,425 6,697 9,581 Interest expense � (1,044
) � (406 ) � (1,793 ) � (1,527 ) Income before income taxes 53,876
37,518 138,730 115,014 Provision for income taxes � (19,770 ) �
(13,507 ) � (50,914 ) � (40,772 ) NET INCOME $ 34,106 � $ 24,011 �
$ 87,816 � $ 74,242 � � � BASIC EARNINGS PER COMMON SHARE $ 1.03 �
$ 0.89 � $ 3.01 � $ 2.77 � � DILUTED EARNINGS PER COMMON SHARE $
1.01 � $ 0.87 � $ 2.96 � $ 2.71 � � Weighted average common shares
outstanding: Basic 33,077 26,936 29,145 26,763 Effect of dilutive
stock options, warrants and restricted stock units outstanding �
530 � � 622 � � 545 � � 591 � Diluted � 33,607 � � 27,558 � �
29,690 � � 27,354 � Selected Balance Sheet Data (Unaudited) (In
Thousands of Dollars) � Sept. 30, December 31, 2008 2007 Total
assets $ 3,384,028 $ 1,654,115 Working capital $ 254,890 $ 293,521
Long-term debt, less current maturities $ 48,996 $ 13,358
Stockholders' equity $ 1,346,314 $ 368,334
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