Business Wire | Nov 4, 2020 04:15PM EST

Tutor Perini Reports Strong Third Quarter 2020 Results

Nov. 04, 2020

LOS ANGELES--(BUSINESS WIRE)--Nov. 04, 2020--Tutor Perini Corporation (the "Company") (NYSE: TPC), a leading civil, building and specialty construction company, reported results today for the third quarter of 2020. Revenue was $1.4 billion, the highest revenue of any quarter in more than ten years and up 21% compared to $1.2 billion for the third quarter of last year. The Company experienced double-digit revenue growth across all segments with only an immaterial impact from the COVID-19 pandemic in the third quarter of 2020. The growth was driven by increased activities on various large infrastructure projects that continue progressing, including the California High-Speed Rail project, the Minneapolis Southwest Light Rail Transit project, Newark Airport Terminal One and the Purple Line projects in Los Angeles.

Income from construction operations for the third quarter of 2020 was $83.0 million, the highest third-quarter result since the merger in 2008 and up 73% compared to $47.9 million for the third quarter of last year. Net income attributable to the Company for the third quarter of 2020 was $36.8 million, or $0.72 per diluted share, compared to $19.3 million, or $0.38 per diluted share, for the third quarter of 2019. The significant growth in income from construction operations for the third quarter of 2020 was principally due to contributions from various large infrastructure projects. The strong increase in net income and EPS was also driven by a nominal tax expense in the third quarter of 2020, which primarily resulted from benefits associated with the Coronavirus Aid, Relief, and Economic Security ("CARES") Act.

Third quarter 2020 backlog remained solid at $9.2 billion compared to $10.0 billion for the second quarter of 2020. Backlog declined sequentially as a result of strong revenue that outpaced new awards in the quarter. New awards totaled $0.6 billion and included $121 million for the Company's share of the South Coast Light Rail project in Massachusetts, $75 million of additional funding for various building projects in California, a $54 million mixed-use building project in California and a $47 million military facilities project in Guam. The Company has submitted several bids and proposals for new large projects and multiple-award government contracts that are pending customers' decisions and contract awards expected in the coming months. In addition, the Company anticipates bidding on several other significant projects later this year and during the first half of 2021, and expects that backlog will continue to support strong revenue growth.

The Company generated $72.7 million of operating cash in the third quarter of 2020. Through the first nine months of 2020, the Company generated $131.0 million of operating cash, the highest nine-month result since the merger in 2008 and an increase of 18% compared to $111.4 million generated through the first nine months of 2019. Strong cash contributions driven by increased project execution activities on certain higher-margin projects were enhanced by progress made on the resolution and collection of certain disputed balances. Barring any significant impact on cash flows from the COVID-19 pandemic, the Company still anticipates that substantial cash collections associated with large projects and ongoing dispute resolution efforts will contribute to strong operating cash flow throughout the remainder of 2020 and beyond.

Outlook and Guidance

"Our results were outstanding for the third quarter and first nine months of 2020, reflecting double-digit growth that is being driven by large infrastructure projects. Our operating cash flow for the quarter was excellent, as anticipated, and our year-to-date cash flow set a new record since our merger in 2008. Furthermore, our Civil and Building segments are performing extremely well and delivering solid operating results," remarked Ronald Tutor, Chairman and Chief Executive Officer. Tutor added, "The impacts of the COVID-19 pandemic lessened in the third quarter and are not materially impacting our business at this time, though we will continue to monitor developments and adjust our operations as necessary."

As mentioned above, the COVID-19 pandemic had an immaterial impact on the Company's results for the third quarter of 2020. Through the first nine months of 2020, we estimate that the COVID-19 impacts to revenue, income from construction operations and EPS were approximately $230 million, $15 million and $0.21, respectively. The vast majority of the Company's projects, especially in the Civil segment, have been designated as essential business, which has allowed the Company to continue its work on those projects. However, due to the fluidity of the COVID-19 pandemic, the Company is unable at this time to accurately predict the pandemic's future impact on the Company's business, financial condition or performance. Nonetheless, based on the Company's results to date in 2020 and its 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 $2.10.

Third Quarter 2020 Conference Call

The Company will host a conference call at 2:00 PM Pacific Time on Wednesday, November 4, 2020, to discuss the third quarter 2020 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, statementsregarding 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 impact of the COVID-19 pandemic and related events that are beyond our control, including possible effects on our business and operations, customers and suppliers, and employees, contractors and subcontractors, which could affect adversely our projects and the geographic regions in which we conduct business; a significant slowdown or decline in economic conditions; 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 or adversely affecting our working capital, profits and cash flows; 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; client cancellations of, or reductions in scope under, contracts reported in our backlog; 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; decreases in the level of government spending for infrastructure and other public projects; 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; increased competition and failure to secure new contracts; failure to meet our obligations under our debt agreements; impairment of our goodwill or other indefinite-lived intangible assets; 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; possible systems and information technology interruptions, including due to cyberattack, systems failures or other similar events; the impact of inclement weather conditions on projects; failure to comply with laws and regulations related to government contracts; potential dilutive impact of our Convertible Notes in our EPS calculation; downgrades in our credit ratings; 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; 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, 2019 filed on February 26, 2020 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 Operations

Unaudited



? Three Months Ended Nine Months Ended September 30, September 30,

(in thousands,except per 2020 2019 2020 2019 common shareamounts)

REVENUE $ 1,442,091 $ 1,189,345 $ 3,969,247 $ 3,273,107

COST OF (1,317,176 ) (1,074,282 ) (3,615,498 ) (2,968,631 ) OPERATIONS

GROSS PROFIT 124,915 115,063 353,749 304,476

General andadministrative (41,894 ) (67,120 ) (165,805 ) (195,474 ) expenses

Goodwill - - - (379,863 ) impairment

INCOME (LOSS)FROM 83,021 47,943 187,944 (270,861 ) CONSTRUCTIONOPERATIONS

Other income (8,048 ) 1,674 (8,364 ) 2,996 (expense)

Interest expense (25,613 ) (17,305 ) (58,513 ) (51,252 )

INCOME (LOSS)BEFORE INCOME 49,360 32,312 121,067 (319,117 ) TAXES

Income tax(expense) (37 ) (5,591 ) (14,747 ) 35,121 benefit

NET INCOME 49,323 26,721 106,320 (283,996 ) (LOSS)

LESS: NET INCOMEATTRIBUTABLE TO 12,504 7,408 33,421 17,577 NONCONTROLLINGINTERESTS

NET INCOME(LOSS)ATTRIBUTABLE TO $ 36,819 $ 19,313 $ 72,899 $ (301,573 ) TUTOR PERINICORPORATION

BASIC EARNINGS(LOSS) PER $ 0.72 $ 0.38 $ 1.44 $ (6.01 ) COMMON SHARE

DILUTED EARNINGS(LOSS) PER $ 0.72 $ 0.38 $ 1.43 $ (6.01 ) COMMON SHARE

WEIGHTED-AVERAGECOMMON SHARES OUTSTANDING:

BASIC 50,787 50,279 50,598 50,201

DILUTED 51,241 50,582 51,004 50,201

Tutor Perini Corporation

Segment Information

Unaudited

?

?

Reportable Segments

(in thousands)

Civil

Building

SpecialtyContractors

Total

Corporate

ConsolidatedTotal

Three Months Ended September 30, 2020

Total revenue

$

723,324

$

552,823

$

322,091

$

1,598,238

$

-

$

1,598,238

Elimination of intersegment revenue

(111,328

)

(44,683

)

(136

)

(156,147

)

-

(156,147

)

Revenue from external customers

$

611,996

$

508,140

$

321,955

$

1,442,091

$

-

$

1,442,091

Income (loss) from construction operations

$

70,237

$

15,815

$

9,700

$

95,752

(a)

$

(12,731

)

(b)

$

83,021

Capital expenditures

$

10,996

$

438

$

224

$

11,658

$

352

$

12,010

Depreciation and amortization(c)

$

26,659

$

419

$

1,002

$

28,080

$

2,778

$

30,858

Three Months Ended September 30, 2019

Total revenue

$

591,884

$

421,241

$

249,453

$

1,262,578

$

-

$

1,262,578

Elimination of intersegment revenue

(67,338

)

(5,895

)

-

(73,233

)

-

(73,233

)

Revenue from external customers

$

524,546

$

415,346

$

249,453

$

1,189,345

$

-

$

1,189,345

Income (loss) from construction operations

$

50,695

$

7,580

$

7,247

$

65,522

$

(17,579

)

(b)

$

47,943

Capital expenditures

$

22,497

$

144

$

325

$

22,966

$

365

$

23,331

Depreciation and amortization(c)

$

11,953

$

495

$

1,018

$

13,466

$

2,761

$

16,227

Tutor Perini Corporation

Segment Information

Unaudited

?

? Reportable Segments

(in Civil Building Specialty Total Corporate Consolidatedthousands) Contractors Total

Three Months Ended September 30, 2020

Total $ 723,324 $ 552,823 $ 322,091 $ 1,598,238 $ - $ 1,598,238 revenue

Eliminationof (111,328 ) (44,683 ) (136 ) (156,147 ) - (156,147 ) intersegmentrevenue

Revenue fromexternal $ 611,996 $ 508,140 $ 321,955 $ 1,442,091 $ - $ 1,442,091 customers

Income(loss) from $ 70,237 $ 15,815 $ 9,700 $ 95,752 ^ $ (12,731 ) ^ $ 83,021 construction (a) (b)operations

Capital $ 10,996 $ 438 $ 224 $ 11,658 $ 352 $ 12,010 expenditures

Depreciationand $ 26,659 $ 419 $ 1,002 $ 28,080 $ 2,778 $ 30,858 amortization^(c)



Three Months Ended September 30, 2019

Total $ 591,884 $ 421,241 $ 249,453 $ 1,262,578 $ - $ 1,262,578 revenue

Eliminationof (67,338 ) (5,895 ) - (73,233 ) - (73,233 ) intersegmentrevenue

Revenue fromexternal $ 524,546 $ 415,346 $ 249,453 $ 1,189,345 $ - $ 1,189,345 customers

Income(loss) from $ 50,695 $ 7,580 $ 7,247 $ 65,522 $ (17,579 ) ^ $ 47,943 construction (b)operations

Capital $ 22,497 $ 144 $ 325 $ 22,966 $ 365 $ 23,331 expenditures

Depreciationand $ 11,953 $ 495 $ 1,018 $ 13,466 $ 2,761 $ 16,227 amortization^(c)

(a)

During the three months ended September 30, 2020, income (loss) from construction operations was positively impacted by $19.6 million (a favorable after-tax impact of $14.1 million, or $0.28 per diluted share) as a result of a favorable arbitration decision related to a dispute in the Specialty Contractors segment. This favorable impact was largely offset by an adverse impact of $15.2 million (an unfavorable after-tax impact of $10.9 million, or $0.21 per diluted share) due to an unfavorable legal ruling pertaining to a mechanical project in California in the Specialty Contractors segment.

(b)

Consists primarily of corporate general and administrative expenses.

(c)

Depreciation and amortization is included in income (loss) from construction operations.

During the three months ended September 30, 2020, income (loss) from construction operations was positively impacted by $19.6 million (a favorable after-tax impact of $14.1 million, or $0.28 per diluted share) as a result of a favorable arbitration decision related to a dispute in the(a) Specialty Contractors segment. This favorable impact was largely offset by an adverse impact of $15.2 million (an unfavorable after-tax impact of $10.9 million, or $0.21 per diluted share) due to an unfavorable legal ruling pertaining to a mechanical project in California in the Specialty Contractors segment.

(b) Consists primarily of corporate general and administrative expenses.

(c) Depreciation and amortization is included in income (loss) from construction operations.

Tutor Perini Corporation

Segment Information (continued)

Unaudited

?

Reportable Segments

(in thousands)

Civil

Building

SpecialtyContractors

Total

Corporate

ConsolidatedTotal

Nine Months Ended September 30, 2020

Total revenue

$

1,948,095

$

1,548,223

$

839,040

$

4,335,358

$

-

$

4,335,358

Elimination of intersegment revenue

(280,494

)

(85,298

)

(319

)

(366,111

)

-

(366,111

)

Revenue from external customers

$

1,667,601

$

1,462,925

$

838,721

$

3,969,247

$

-

$

3,969,247

Income (loss) from construction operations

$

181,756

$

37,120

$

6,591

$

225,467

(a)

$

(37,523

)

(b)

$

187,944

Capital expenditures

$

41,139

$

636

$

952

$

42,727

$

669

$

43,396

Depreciation and amortization(c)

$

67,050

$

1,274

$

2,990

$

71,314

$

8,320

$

79,634

?

Nine Months Ended September 30, 2019

Total revenue

$

1,516,623

$

1,291,043

$

664,279

$

3,471,945

$

-

$

3,471,945

Elimination of intersegment revenue

(184,925

)

(13,913

)

-

(198,838

)

-

(198,838

)

Revenue from external customers

$

1,331,698

$

1,277,130

$

664,279

$

3,273,107

$

-

$

3,273,107

Income (loss) from construction operations

$

(72,032

)

$

6,903

$

(160,036

)

$

(225,165

)

(d)

$

(45,696

)

(b)

$

(270,861

)

Capital expenditures

$

60,948

$

349

$

558

$

61,855

$

822

$

62,677

Depreciation and amortization(c)

$

31,608

$

1,495

$

3,143

$

36,246

$

8,295

$

44,541

Tutor Perini Corporation

Segment Information (continued)

Unaudited



? Reportable Segments

(in Civil Building Specialty Total Corporate Consolidatedthousands) Contractors Total

Nine Months Ended September 30, 2020

Total revenue $ 1,948,095 $ 1,548,223 $ 839,040 $ 4,335,358 $ - $ 4,335,358

Eliminationof (280,494 ) (85,298 ) (319 ) (366,111 ) - (366,111 ) intersegmentrevenue

Revenue fromexternal $ 1,667,601 $ 1,462,925 $ 838,721 $ 3,969,247 $ - $ 3,969,247 customers

Income (loss)from $ 181,756 $ 37,120 $ 6,591 $ 225,467 ^ $ (37,523 ) ^ $ 187,944 construction (a) (b)operations

Capital $ 41,139 $ 636 $ 952 $ 42,727 $ 669 $ 43,396 expenditures

Depreciationand $ 67,050 $ 1,274 $ 2,990 $ 71,314 $ 8,320 $ 79,634 amortization^(c)

?

Nine Months Ended September 30, 2019

Total revenue $ 1,516,623 $ 1,291,043 $ 664,279 $ 3,471,945 $ - $ 3,471,945

Eliminationof (184,925 ) (13,913 ) - (198,838 ) - (198,838 ) intersegmentrevenue

Revenue fromexternal $ 1,331,698 $ 1,277,130 $ 664,279 $ 3,273,107 $ - $ 3,273,107 customers

Income (loss)from $ (72,032 ) $ 6,903 $ (160,036 ) $ (225,165 ) ^ $ (45,696 ) ^ $ (270,861 ) construction (d) (b)operations

Capital $ 60,948 $ 349 $ 558 $ 61,855 $ 822 $ 62,677 expenditures

Depreciationand $ 31,608 $ 1,495 $ 3,143 $ 36,246 $ 8,295 $ 44,541 amortization^(c)

(a)

During the nine months ended September 30, 2020, income (loss) from construction operations was adversely impacted by $15.2 million (an unfavorable after-tax impact of $10.9 million, or $0.21 per diluted share) in the third quarter of 2020 due to an unfavorable legal ruling pertaining to a mechanical project in California in the Specialty Contractors segment, as well as by $13.2 million (an unfavorable after-tax impact of $9.5 million, or $0.19 per diluted share) in the second quarter of 2020 due to an adverse arbitration ruling pertaining to an electrical project in New York in the Specialty Contractors segment. These adverse impacts were mostly offset by $19.6 million (a favorable after-tax impact of $14.1 million, or $0.28 per diluted share) in the third quarter of 2020 as a result of a favorable arbitration decision related to a dispute in the Specialty Contractors segment.

(b)

Consists primarily of corporate general and administrative expenses.

(c)

Depreciation and amortization is included in income (loss) from construction operations.

(d)

During the nine months ended September 30, 2019, the Company recorded a non-cash goodwill impairment charge of $379.9 million in income (loss) from construction operations (an unfavorable after-tax impact of $329.5 million, or $6.56 per diluted share) resulting from an interim impairment test the Company performed as of June 1, 2019.

During the nine months ended September 30, 2020, income (loss) from construction operations was adversely impacted by $15.2 million (an unfavorable after-tax impact of $10.9 million, or $0.21 per diluted share) in the third quarter of 2020 due to an unfavorable legal ruling pertaining to a mechanical project in California in the Specialty Contractors segment, as well as by $13.2 million (an unfavorable after-tax impact of $9.5(a) million, or $0.19 per diluted share) in the second quarter of 2020 due to an adverse arbitration ruling pertaining to an electrical project in New York in the Specialty Contractors segment. These adverse impacts were mostly offset by $19.6 million (a favorable after-tax impact of $14.1 million, or $0.28 per diluted share) in the third quarter of 2020 as a result of a favorable arbitration decision related to a dispute in the Specialty Contractors segment.

(b) Consists primarily of corporate general and administrative expenses.

(c) Depreciation and amortization is included in income (loss) from construction operations.

During the nine months ended September 30, 2019, the Company recorded a non-cash goodwill impairment charge of $379.9 million in income (loss) from(d) construction operations (an unfavorable after-tax impact of $329.5 million, or $6.56 per diluted share) resulting from an interim impairment test the Company performed as of June 1, 2019.

Tutor Perini Corporation

Condensed Consolidated Balance Sheets

Unaudited

(in thousands, except share and per share amounts)

As of September 30,2020

As of December 31,2019

ASSETS

CURRENT ASSETS:

Cash and cash equivalents ($104,955 and $103,850 related to variable interest entities ("VIEs"))

$

348,366

$

193,685

Restricted cash

80,974

8,416

Restricted investments

75,475

70,974

Accounts receivable ($106,085 and $91,090 related to VIEs)

1,565,909

1,354,519

Retainage receivable ($110,794 and $89,132 related to VIEs)

621,414

562,375

Costs and estimated earnings in excess of billings ($39,147 and $22,764 related to VIEs)

1,180,215

1,123,544

Other current assets ($56,504 and $58,128 related to VIEs)

239,614

197,473

Total current assets

4,111,967

3,510,986

PROPERTY AND EQUIPMENT ("P&E"), net of accumulated depreciation of $424,065 and $388,147 (net P&E of $17,634 and $49,919 related to VIEs)

485,861

509,685

GOODWILL

205,143

205,143

INTANGIBLE ASSETS, NET

131,391

155,270

OTHER ASSETS

107,894

104,693

TOTAL ASSETS

$

5,042,256

$

4,485,777

LIABILITIES AND EQUITY

CURRENT LIABILITIES:

Current maturities of long-term debt, net of unamortized discount and debt issuance costs totaling $3,115 and $0

$

99,504

$

124,054

Accounts payable ($101,034 and $93,848 related to VIEs)

811,987

682,699

Retainage payable ($22,864 and $13,967 related to VIEs)

296,200

252,181

Billings in excess of costs and estimated earnings ($413,659 and $422,847 related to VIEs)

911,378

844,389

Accrued expenses and other current liabilities ($12,581 and $25,402 related to VIEs)

233,241

206,533

Total current liabilities

2,352,310

2,109,856

LONG-TERM DEBT, less current maturities, net of unamortized discount and debt issuance costs totaling $20,934 and $23,343

921,519

710,422

DEFERRED INCOME TAXES

58,416

35,686

OTHER LONG-TERM LIABILITIES

200,714

199,288

TOTAL LIABILITIES

3,532,959

3,055,252

COMMITMENTS AND CONTINGENCIES

EQUITY

Stockholders' equity:

Preferred stock - authorized 1,000,000 shares ($1 par value), none issued

-

-

Common stock - authorized 112,500,000 and 75,000,000 shares ($1 par value), issued and outstanding 50,827,205 and 50,278,816 shares

50,827

50,279

Additional paid-in capital

1,125,455

1,117,972

Retained earnings

386,890

313,991

Accumulated other comprehensive loss

(39,816

)

(42,100

)

Total stockholders' equity

1,523,356

1,440,142

Noncontrolling interests

(14,059

)

(9,617

)

TOTAL EQUITY

1,509,297

1,430,525

TOTAL LIABILITIES AND EQUITY

$

5,042,256

$

4,485,777

Tutor Perini Corporation

Condensed Consolidated Balance Sheets

Unaudited

(in thousands, except share and per share As of September As of Decemberamounts) 30, 31, 2020 2019

ASSETS

CURRENT ASSETS:

Cash and cash equivalents ($104,955 and$103,850 related to variable interest $ 348,366 $ 193,685 entities ("VIEs"))

Restricted cash 80,974 8,416

Restricted investments 75,475 70,974

Accounts receivable ($106,085 and $91,090 1,565,909 1,354,519 related to VIEs)

Retainage receivable ($110,794 and $89,132 621,414 562,375 related to VIEs)

Costs and estimated earnings in excess ofbillings ($39,147 and $22,764 related to 1,180,215 1,123,544 VIEs)

Other current assets ($56,504 and $58,128 239,614 197,473 related to VIEs)

Total current assets 4,111,967 3,510,986

PROPERTY AND EQUIPMENT ("P&E"), net ofaccumulated depreciation of $424,065 and 485,861 509,685 $388,147 (net P&E of $17,634 and $49,919related to VIEs)

GOODWILL 205,143 205,143

INTANGIBLE ASSETS, NET 131,391 155,270

OTHER ASSETS 107,894 104,693

TOTAL ASSETS $ 5,042,256 $ 4,485,777

LIABILITIES AND EQUITY

CURRENT LIABILITIES:

Current maturities of long-term debt, netof unamortized discount and debt issuance $ 99,504 $ 124,054 costs totaling $3,115 and $0

Accounts payable ($101,034 and $93,848 811,987 682,699 related to VIEs)

Retainage payable ($22,864 and $13,967 296,200 252,181 related to VIEs)

Billings in excess of costs and estimatedearnings ($413,659 and $422,847 related to 911,378 844,389 VIEs)

Accrued expenses and other currentliabilities ($12,581 and $25,402 related to 233,241 206,533 VIEs)

Total current liabilities 2,352,310 2,109,856

LONG-TERM DEBT, less current maturities,net of unamortized discount and debt 921,519 710,422 issuance costs totaling $20,934 and $23,343

DEFERRED INCOME TAXES 58,416 35,686

OTHER LONG-TERM LIABILITIES 200,714 199,288

TOTAL LIABILITIES 3,532,959 3,055,252

COMMITMENTS AND CONTINGENCIES

EQUITY

Stockholders' equity:

Preferred stock - authorized 1,000,000 - - shares ($1 par value), none issued

Common stock - authorized 112,500,000 and75,000,000 shares ($1 par value), issued 50,827 50,279 and outstanding 50,827,205 and 50,278,816shares

Additional paid-in capital 1,125,455 1,117,972

Retained earnings 386,890 313,991

Accumulated other comprehensive loss (39,816 ) (42,100 )

Total stockholders' equity 1,523,356 1,440,142

Noncontrolling interests (14,059 ) (9,617 )

TOTAL EQUITY 1,509,297 1,430,525

TOTAL LIABILITIES AND EQUITY $ 5,042,256 $ 4,485,777

Tutor Perini Corporation

Condensed Consolidated Statements of Cash Flows

Unaudited

?

Nine Months Ended September 30,

(in thousands)

2020

2019

Cash Flows from Operating Activities:

Net income (loss)

$

106,320

$

(283,996

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Goodwill impairment

-

379,863

Depreciation

55,755

41,884

Amortization of intangible assets

23,879

2,657

Share-based compensation expense

10,722

14,331

Change in debt discount and deferred debt issuance costs

18,960

9,790

Deferred income taxes

22,137

(48,318

)

Gain on sale of property and equipment

(2,609

)

(1,799

)

Changes in other components of working capital

(107,786

)

(7,148

)

Other long-term liabilities

3,899

3,979

Other, net

(309

)

122

NET CASH PROVIDED BY OPERATING ACTIVITIES

130,968

111,365

?

Cash Flows from Investing Activities:

Acquisition of property and equipment

(43,396

)

(62,677

)

Proceeds from sale of property and equipment

13,320

4,300

Investment in securities

(22,692

)

(18,790

)

Proceeds from maturities and sales of investments in securities

19,901

11,078

NET CASH USED IN INVESTING ACTIVITIES

(32,867

)

(66,089

)

?

Cash Flows from Financing Activities:

Proceeds from debt

1,183,012

649,139

Repayment of debt

(1,004,259

)

(583,039

)

Cash payments related to share-based compensation

(1,697

)

(2,363

)

Distributions paid to noncontrolling interests

(37,217

)

(21,500

)

Contributions from noncontrolling interests

-

6,519

Debt issuance, extinguishment and modification costs

(10,701

)

(504

)

NET CASH PROVIDED BY FINANCING ACTIVITIES

129,138

48,252

?

Net increase in cash, cash equivalents and restricted cash

227,239

93,528

Cash, cash equivalents and restricted cash at beginning of period

202,101

119,863

Cash, cash equivalents and restricted cash at end of period

$

429,340

$

213,391

Tutor Perini Corporation

Condensed Consolidated Statements of Cash Flows

Unaudited

? Nine Months Ended September 30,

(in thousands) 2020 2019

Cash Flows from Operating Activities:

Net income (loss) $ 106,320 $ (283,996 )

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Goodwill impairment - 379,863

Depreciation 55,755 41,884

Amortization of intangible assets 23,879 2,657

Share-based compensation expense 10,722 14,331

Change in debt discount and deferred debt 18,960 9,790 issuance costs

Deferred income taxes 22,137 (48,318 )

Gain on sale of property and equipment (2,609 ) (1,799 )

Changes in other components of working capital (107,786 ) (7,148 )

Other long-term liabilities 3,899 3,979

Other, net (309 ) 122

NET CASH PROVIDED BY OPERATING ACTIVITIES 130,968 111,365

?

Cash Flows from Investing Activities:

Acquisition of property and equipment (43,396 ) (62,677 )

Proceeds from sale of property and equipment 13,320 4,300

Investment in securities (22,692 ) (18,790 )

Proceeds from maturities and sales of 19,901 11,078 investments in securities

NET CASH USED IN INVESTING ACTIVITIES (32,867 ) (66,089 )

?

Cash Flows from Financing Activities:

Proceeds from debt 1,183,012 649,139

Repayment of debt (1,004,259 ) (583,039 )

Cash payments related to share-based (1,697 ) (2,363 ) compensation

Distributions paid to noncontrolling interests (37,217 ) (21,500 )

Contributions from noncontrolling interests - 6,519

Debt issuance, extinguishment and modification (10,701 ) (504 ) costs

NET CASH PROVIDED BY FINANCING ACTIVITIES 129,138 48,252

?

Net increase in cash, cash equivalents and 227,239 93,528 restricted cash

Cash, cash equivalents and restricted cash at 202,101 119,863 beginning of period

Cash, cash equivalents and restricted cash at $ 429,340 $ 213,391 end of period

Tutor Perini Corporation

Backlog Information

Unaudited

?

(in millions)

Backlog atJune 30, 2020

New Awards in the

Three Months Ended September 30, 2020(a)

Revenue in the

Three Months Ended September 30, 2020

Backlog at September 30, 2020

Civil

$

5,536.9

$

282.2

$

(612.0

)

$

5,207.1

Building

2,278.5

186.4

(508.1

)

1,956.8

Specialty Contractors

2,183.2

156.9

(322.0

)

2,018.1

Total

$

9,998.6

$

625.5

$

(1,442.1

)

$

9,182.0

?

(in millions)

Backlog at December 31, 2019

New Awards in the Nine Months Ended September 30, 2020(a)

Revenue in the

Nine Months Ended September 30, 2020

Backlog at September 30, 2020

Civil

$

6,037.2

$

837.5

$

(1,667.6

)

$

5,207.1

Building

2,790.3

629.4

(1,462.9

)

1,956.8

Specialty Contractors

2,393.6

463.2

(838.7

)

2,018.1

Total

$

11,221.1

$

1,930.1

$

(3,969.2

)

$

9,182.0

Tutor Perini Corporation

Backlog Information

Unaudited

?

New Awards in Revenue in the the Backlog at Three Months Backlog at(in millions) June 30, Three Months Ended September 30, 2020 Ended September 30, 2020 September 30, 2020 2020^(a)

Civil $ 5,536.9 $ 282.2 $ (612.0 ) $ 5,207.1

Building 2,278.5 186.4 (508.1 ) 1,956.8

Specialty 2,183.2 156.9 (322.0 ) 2,018.1 Contractors

Total $ 9,998.6 $ 625.5 $ (1,442.1 ) $ 9,182.0

?

New Awards in Revenue in the Backlog at the Backlog at(in millions) December 31, Nine Months Nine Months September 30, 2019 Ended Ended 2020 September 30, September 30, 2020^(a) 2020

Civil $ 6,037.2 $ 837.5 $ (1,667.6 ) $ 5,207.1

Building 2,790.3 629.4 (1,462.9 ) 1,956.8

Specialty 2,393.6 463.2 (838.7 ) 2,018.1 Contractors

Total $ 11,221.1 $ 1,930.1 $ (3,969.2 ) $ 9,182.0

(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/20201104005605/en/

CONTACT: Tutor Perini Corporation Jorge Casado, 818-362-8391 Vice President, Investor Relations & Corporate Communications www.tutorperini.com