Tutor Perini Reports Third Quarter 2018 Results

November 7, 2018

LOS ANGELES--(BUSINESS WIRE)--Nov 7, 2018--Tutor Perini Corporation (NYSE: TPC), a leading civil, building and specialty construction company, today reported results for the three months ended September 30, 2018. Revenue for the third quarter of 2018 was $1.1 billion, down 6% compared to $1.2 billion for the third quarter of last year. The decrease was driven by the completion of a large technology office project in California. Revenue and income from construction operations for the third quarter of 2018 were both lower than expected due to continued delays on certain projects, including the California High-Speed Rail project, and because revenue generated from project execution activities for new projects starting up did not fully offset reduced revenue from projects that have completed or are nearing completion. As a result, income from construction operations for the third quarter of 2018 was $47.3 million, down 4% compared to $49.1 million for the same quarter of last year. Net income attributable to the Company for the third quarter of 2018 was $21.3 million, or $0.42 per diluted share, compared to $23.6 million, or $0.47 per diluted share, for the same quarter of 2017.

Backlog as of September 30, 2018 remained strong at $8.5 billion, up 14% compared to $7.5 billion as of September 30, 2017. New awards and adjustments to contracts in process totaled $948 million in the third quarter of 2018. Significant new awards included more than $262 million of additional funding for various building projects in California, a $121 million tunneling project in California, an $82 million aircraft maintenance facility and hangar project in Guam, and a $68 million industrial facility revitalization project in Mississippi. The Company still anticipates a contract award for the previously announced $800 million Minneapolis Southwest Light Rail Transit project, for which it was the low bidder earlier this year. Also, in the past week, the Company was selected to design and build a large new hospitality and gaming project and was the low bidder for the $253 million Culver Line Communications-Based Train Control project in New York. Finally, the Company expects to book approximately $100 million of new mechanical projects in New York City in the fourth quarter of 2018.

Cash flow from operations for the third quarter of 2018 was $27.6 million as a result of favorable collections.

Ronald Tutor, Chairman and Chief Executive Officer, said, “Contributions from the California High-Speed Rail project since mid-year have shifted more significantly than anticipated due to the owner’s continuing inability to deliver the right-of-ways and easements critical to our construction efforts. The impact of this shift, combined with the timing of contributions from certain other projects, is that a significant amount of our revenue and earnings has moved from 2018 to 2019 and 2020. These factors together with our growing, higher-margin backlog, sizeable pending awards and exploding pipeline of bidding opportunities should result in significantly greater earnings in both 2019 and 2020.”

Outlook and Guidance

Based on the Company’s results to date and its current expectations for the remainder of this year, the Company is lowering its guidance for 2018, with diluted earnings per share (EPS) now expected in the range of $1.50 to $1.65.

Third Quarter Conference Call

The Company will host a conference call at 2:00 PM Pacific Time on Wednesday, November 7, 2018, to discuss the third quarter 2018 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. To listen to the webcast, please visit the Company’s website at least 15 minutes prior to the start of the call to register and to download and install any necessary software. 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 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 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 clients 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, inaccurate estimates of contract risks, revenue or costs, the timing of new awards or the pace of project execution; unfavorable outcomes of existing or future litigation or dispute resolution proceedings against project owners, 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, which may adversely affect our working capital, profits and cash flows; actual results that could differ from the assumptions and estimates used to prepare financial statements; increased competition and failure to secure new contracts; client cancellations of, or reductions in scope under, contracts reported in our backlog; a significant slowdown or decline in economic conditions; 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; impairment of our goodwill or other indefinite-lived intangible assets; failure to meet our obligations under our debt agreements; inability to retain key members of our management, to hire and retain personnel required to complete projects or implement succession plans for key officers; the impact of inclement weather; 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; decreases in the level of government spending for infrastructure and other public projects; possible systems and information technology interruptions; failure to comply with laws and regulations related to government contracts; conversion of our outstanding Convertible Notes that could dilute ownership interests of existing stockholders and could adversely affect the market price of our common stock; the potential dilutive impact of our Convertible Notes in our diluted earnings per share calculation; economic, political 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; 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, 2017 filed on February 27, 2018 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.

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CONTACT: Tutor Perini Corporation

Jorge Casado, 818-362-8391

Vice President, Investor Relations & Corporate Communications




SOURCE: Tutor Perini Corporation

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PUB: 11/07/2018 04:15 PM/DISC: 11/07/2018 04:15 PM


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