Business Wire | May 5, 2021 04:15PM EDT

Tutor Perini Reports First Quarter 2021 Results

May 05, 2021

LOS ANGELES--(BUSINESS WIRE)--May 05, 2021--Tutor Perini Corporation (the "Company") (NYSE: TPC), a leading civil, building and specialty construction company, reported results today for the first quarter of 2021. Revenue was $1.21 billion compared to $1.25 billion for the first quarter of last year, as reduced activities on Building segment projects were mostly offset by increased volume on Specialty Contractors segment projects. Despite the slightly lower revenue, income from construction operations for the first quarter of 2021 was $49.7 million, up 5% compared to $47.2 million for the first quarter of last year. The increase was primarily driven by a shift toward higher-margin projects within the Civil segment, including favorable contributions from projects in California and Guam. Net income attributable to the Company for the first quarter of 2021 was $16.0 million, or $0.31 per diluted share, compared to $17.4 million, or $0.34 per diluted share, for the first quarter of 2020. The decrease in net income attributable to the Company, and correspondingly EPS, was principally driven by a higher effective tax rate in the current period compared to the same quarter last year.

First quarter 2021 backlog remained solid at $8.1 billion compared to $8.3 billion at the end of 2020. As anticipated, backlog declined as a result of revenue that modestly outpaced new awards in the quarter. New awards totaled $1.0 billion and included a $269 million government building facility in California, more than $220 million for various civil projects in the Midwest and $120 million of additional funding for a mass-transit project in California. The Company now anticipates booking the previously announced $478 million LAX Airport Metro Connector project into backlog in the second quarter of 2021. The Company also anticipates bidding on several large projects this year and during the first half of 2022, and expects backlog growth to resume in the second half of 2021 to levels that will continue to support future revenue growth.

Outlook and Guidance

"Overall, we delivered solid first-quarter results that were modestly ahead of expectations," commented Ronald Tutor, Chairman and Chief Executive Officer. Tutor continued, "We are currently bidding several large projects, with a large stream of other significant bids expected to occur later this year and continuing well into next year. We look forward to winning our share of these opportunities and resuming strong backlog growth in the second half of this year. We are also encouraged by the Biden Administration's strong focus on infrastructure investments and the potential for substantial federal infrastructure spending on the horizon, which would further bolster our already positive long-term business outlook."

Based on the Company's year-to-date results in 2021 and the 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 $2.20.

First Quarter 2021 Conference Call

The Company will host a conference call at 2:00 PM Pacific Time on Wednesday, May 5, 2021, to discuss the first quarter 2021 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 COVID-19 pandemic, which has adversely impacted, and could continue to adversely impact, our business, financial condition and results of operations; 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 and adversely affecting our working capital, profits and cash flows; a significant slowdown or decline in economic conditions; 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; increased competition and failure to secure new contracts; decreases in the level of government spending for infrastructure and other public projects; 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; client cancellations of, or reductions in scope under, contracts reported in our backlog; possible systems and information technology interruptions, including due to cyberattack, systems failures or other similar events; 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 and/or reputational harm; economic, political, regulatory 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; the impact of inclement weather conditions on projects; risks related to government contracts and related procurement regulations; violations of the U.S. Foreign Corrupt Practices Act and similar worldwide anti-bribery laws, which could result in unanticipated losses; adverse health events, such as an epidemic or a pandemic; failure to meet our obligations under our debt agreements; downgrades in our credit ratings; impairment of our goodwill or other indefinite-lived intangible assets; 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, 2020 filed on February 24, 2021 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 Income

Unaudited



? Three Months Ended March 31,

(in thousands, except per common share amounts) 2021 2020

REVENUE $ 1,207,595 $ 1,250,729

COST OF OPERATIONS (1,097,140 ) (1,139,649 )

GROSS PROFIT 110,455 111,080

General and administrative expenses (60,751 ) (63,853 )

INCOME FROM CONSTRUCTION OPERATIONS 49,704 47,227

Other income, net 175 481

Interest expense (17,810 ) (16,436 )

INCOME BEFORE INCOME TAXES 32,069 31,272

Income tax expense (6,964 ) (5,134 )

NET INCOME 25,105 26,138

LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING 9,071 8,767 INTERESTS

NET INCOME ATTRIBUTABLE TO TUTOR PERINI $ 16,034 $ 17,371 CORPORATION

BASIC EARNINGS PER COMMON SHARE $ 0.31 $ 0.35

DILUTED EARNINGS PER COMMON SHARE $ 0.31 $ 0.34

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:

BASIC 50,913 50,338

DILUTED 51,348 50,836

Tutor Perini Corporation

Segment Information

Unaudited

?

?

Reportable Segments

(in thousands)

Civil

Building

Specialty Contractors

Total

Corporate

Consolidated Total

Three Months Ended March 31, 2021

Total revenue

$

583,144

$

457,170

$

324,948

$

1,365,262

$

-

$

1,365,262

Elimination of intersegment revenue

(107,569

)

(49,937

)

(161

)

(157,667

)

-

(157,667

)

Revenue from external customers

$

475,575

$

407,233

$

324,787

$

1,207,595

$

-

$

1,207,595

Income (loss) from construction operations

$

50,105

$

11,216

$

1,324

$

62,645

$

(12,941

)

(a)

$

49,704

Capital expenditures

$

9,564

$

73

$

145

$

9,782

$

53

$

9,835

Depreciation and amortization(b)

$

22,713

$

432

$

959

$

24,104

$

2,770

$

26,874

Three Months Ended March 31, 2020

Total revenue

$

580,087

$

505,082

$

282,452

$

1,367,621

$

-

$

1,367,621

Elimination of intersegment revenue

(93,458

)

(23,318

)

(116

)

(116,892

)

-

(116,892

)

Revenue from external customers

$

486,629

$

481,764

$

282,336

$

1,250,729

$

-

$

1,250,729

Income (loss) from construction operations

$

46,121

$

3,516

$

8,279

$

57,916

$

(10,689

)

(a)

$

47,227

Capital expenditures

$

11,192

$

12

$

473

$

11,677

$

16

$

11,693

Depreciation and amortization(b)

$

18,616

$

427

$

993

$

20,036

$

2,775

$

22,811

Tutor Perini Corporation

Segment Information

Unaudited

?

? Reportable Segments

(in Civil Building Specialty Total Corporate Consolidatedthousands) Contractors Total

Three MonthsEnded March 31, 2021

Total $ 583,144 $ 457,170 $ 324,948 $ 1,365,262 $ - $ 1,365,262 revenue

Eliminationof (107,569 ) (49,937 ) (161 ) (157,667 ) - (157,667 )intersegmentrevenue

Revenue fromexternal $ 475,575 $ 407,233 $ 324,787 $ 1,207,595 $ - $ 1,207,595 customers

Income(loss) from $ 50,105 $ 11,216 $ 1,324 $ 62,645 $ (12,941 ) ^ $ 49,704 construction (a)operations

Capital $ 9,564 $ 73 $ 145 $ 9,782 $ 53 $ 9,835 expenditures

Depreciationand $ 22,713 $ 432 $ 959 $ 24,104 $ 2,770 $ 26,874 amortization^(b)



Three MonthsEnded March 31, 2020

Total $ 580,087 $ 505,082 $ 282,452 $ 1,367,621 $ - $ 1,367,621 revenue

Eliminationof (93,458 ) (23,318 ) (116 ) (116,892 ) - (116,892 )intersegmentrevenue

Revenue fromexternal $ 486,629 $ 481,764 $ 282,336 $ 1,250,729 $ - $ 1,250,729 customers

Income(loss) from $ 46,121 $ 3,516 $ 8,279 $ 57,916 $ (10,689 ) ^ $ 47,227 construction (a)operations

Capital $ 11,192 $ 12 $ 473 $ 11,677 $ 16 $ 11,693 expenditures

Depreciationand $ 18,616 $ 427 $ 993 $ 20,036 $ 2,775 $ 22,811 amortization^(b)

(a)

Consists primarily of corporate general and administrative expenses.

(b)

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

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

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

Tutor Perini Corporation

Condensed Consolidated Balance Sheets

Unaudited

(in thousands, except share and per share amounts)

As of March 31,2021

As of December 31,2020

ASSETS

CURRENT ASSETS:

Cash and cash equivalents ($91,768 and $105,735 related to variable interest entities ("VIEs"))

$

318,720

$

374,289

Restricted cash

82,086

77,563

Restricted investments

74,062

78,912

Accounts receivable ($78,924 and $86,012 related to VIEs)

1,368,892

1,415,063

Retainage receivable ($129,050 and $122,335 related to VIEs)

661,382

648,441

Costs and estimated earnings in excess of billings ($55,315 and $39,846 related to VIEs)

1,255,992

1,236,734

Other current assets ($49,182 and $51,746 related to VIEs)

236,943

249,455

Total current assets

3,998,077

4,080,457

PROPERTY AND EQUIPMENT ("P&E"), net of accumulated depreciation of $452,904 and $434,294 (net P&E of $8,526 and $12,840 related to VIEs)

478,338

489,217

GOODWILL

205,143

205,143

INTANGIBLE ASSETS, NET

116,472

123,115

OTHER ASSETS

147,977

147,685

TOTAL ASSETS

$

4,946,007

$

5,045,617

LIABILITIES AND EQUITY

CURRENT LIABILITIES:

Current maturities of long-term debt, net of unamortized discount and debt issuance costs totaling $941 and $2,040

$

101,020

$

100,188

Accounts payable ($81,694 and $116,461 related to VIEs)

716,326

794,611

Retainage payable ($28,027 and $26,439 related to VIEs)

318,692

315,135

Billings in excess of costs and estimated earnings ($332,704 and $362,427 related to VIEs)

818,757

839,222

Accrued expenses and other current liabilities ($6,838 and $9,595 related to VIEs)

176,264

215,207

Total current liabilities

2,131,059

2,264,363

LONG-TERM DEBT, less current maturities, net of unamortized discount and debt issuance costs totaling $19,478 and $20,209

924,651

925,277

DEFERRED INCOME TAXES

82,950

82,966

OTHER LONG-TERM LIABILITIES

235,266

230,066

TOTAL LIABILITIES

3,373,926

3,502,672

COMMITMENTS AND CONTINGENCIES

EQUITY

Stockholders' equity:

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

-

-

Common stock - authorized 112,500,000 shares ($1 par value), issued and outstanding 50,937,607 and 50,827,205 shares

50,938

50,827

Additional paid-in capital

1,127,624

1,127,385

Retained earnings

438,419

422,385

Accumulated other comprehensive loss

(47,356

)

(46,741

)

Total stockholders' equity

1,569,625

1,553,856

Noncontrolling interests

2,456

(10,911

)

TOTAL EQUITY

1,572,081

1,542,945

TOTAL LIABILITIES AND EQUITY

$

4,946,007

$

5,045,617

Tutor Perini Corporation

Condensed Consolidated Balance Sheets

Unaudited

(in thousands, except share and per share As of March As ofamounts) 31, December 31, 2021 2020



ASSETS

CURRENT ASSETS:

Cash and cash equivalents ($91,768 and $105,735 $ 318,720 $ 374,289 related to variable interest entities ("VIEs"))

Restricted cash 82,086 77,563

Restricted investments 74,062 78,912

Accounts receivable ($78,924 and $86,012 1,368,892 1,415,063 related to VIEs)

Retainage receivable ($129,050 and $122,335 661,382 648,441 related to VIEs)

Costs and estimated earnings in excess of 1,255,992 1,236,734 billings ($55,315 and $39,846 related to VIEs)

Other current assets ($49,182 and $51,746 236,943 249,455 related to VIEs)

Total current assets 3,998,077 4,080,457

PROPERTY AND EQUIPMENT ("P&E"), net ofaccumulated depreciation of $452,904 and 478,338 489,217 $434,294 (net P&E of $8,526 and $12,840 relatedto VIEs)

GOODWILL 205,143 205,143

INTANGIBLE ASSETS, NET 116,472 123,115

OTHER ASSETS 147,977 147,685

TOTAL ASSETS $ 4,946,007 $ 5,045,617



LIABILITIES AND EQUITY

CURRENT LIABILITIES:

Current maturities of long-term debt, net ofunamortized discount and debt issuance costs $ 101,020 $ 100,188 totaling $941 and $2,040

Accounts payable ($81,694 and $116,461 related 716,326 794,611 to VIEs)

Retainage payable ($28,027 and $26,439 related 318,692 315,135 to VIEs)

Billings in excess of costs and estimatedearnings ($332,704 and $362,427 related to 818,757 839,222 VIEs)

Accrued expenses and other current liabilities 176,264 215,207 ($6,838 and $9,595 related to VIEs)

Total current liabilities 2,131,059 2,264,363

LONG-TERM DEBT, less current maturities, net ofunamortized discount and debt issuance costs 924,651 925,277 totaling $19,478 and $20,209

DEFERRED INCOME TAXES 82,950 82,966

OTHER LONG-TERM LIABILITIES 235,266 230,066

TOTAL LIABILITIES 3,373,926 3,502,672

COMMITMENTS AND CONTINGENCIES

EQUITY

Stockholders' equity:

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

Common stock - authorized 112,500,000 shares($1 par value), issued and outstanding 50,938 50,827 50,937,607 and 50,827,205 shares

Additional paid-in capital 1,127,624 1,127,385

Retained earnings 438,419 422,385

Accumulated other comprehensive loss (47,356 ) (46,741 )

Total stockholders' equity 1,569,625 1,553,856

Noncontrolling interests 2,456 (10,911 )

TOTAL EQUITY 1,572,081 1,542,945

TOTAL LIABILITIES AND EQUITY $ 4,946,007 $ 5,045,617

Tutor Perini Corporation

Condensed Consolidated Statements of Cash Flows

Unaudited

?

Three Months Ended March 31,

(in thousands)

2021

2020

Cash Flows from Operating Activities:

Net income

$

25,105

$

26,138

Adjustments to reconcile net income to net cash used in operating activities:

Depreciation

20,231

16,999

Amortization of intangible assets

6,643

5,812

Share-based compensation expense

2,448

4,244

Change in debt discounts and deferred debt issuance costs

2,017

3,486

Deferred income taxes

95

2,474

(Gain) loss on sale of property and equipment

20

(461

)

Changes in other components of working capital

(108,385

)

(90,884

)

Other long-term liabilities

5,027

1,061

Other, net

95

(2,876

)

NET CASH USED IN OPERATING ACTIVITIES

(46,704

)

(34,007

)

?

Cash Flows from Investing Activities:

Acquisition of property and equipment

(9,835

)

(11,693

)

Proceeds from sale of property and equipment

457

583

Investments in securities

(2,910

)

(9,696

)

Proceeds from maturities and sales of investments in securities

6,870

6,211

NET CASH USED IN INVESTING ACTIVITIES

(5,418

)

(14,595

)

?

Cash Flows from Financing Activities:

Proceeds from debt

74,251

348,688

Repayment of debt

(75,939

)

(283,915

)

Cash payments related to share-based compensation

(1,236

)

(694

)

Distributions paid to noncontrolling interests

-

(13,500

)

Contributions from noncontrolling interests

4,000

-

NET CASH PROVIDED BY FINANCING ACTIVITIES

1,076

50,579

?

Net increase (decrease) in cash, cash equivalents and restricted cash

(51,046

)

1,977

Cash, cash equivalents and restricted cash at beginning of period

451,852

202,101

Cash, cash equivalents and restricted cash at end of period

$

400,806

$

204,078

Tutor Perini Corporation

Condensed Consolidated Statements of Cash Flows

Unaudited

? Three Months Ended March 31,

(in thousands) 2021 2020

Cash Flows from Operating Activities:

Net income $ 25,105 $ 26,138

Adjustments to reconcile net income to net cash used in operating activities:

Depreciation 20,231 16,999

Amortization of intangible assets 6,643 5,812

Share-based compensation expense 2,448 4,244

Change in debt discounts and deferred debt issuance 2,017 3,486 costs

Deferred income taxes 95 2,474

(Gain) loss on sale of property and equipment 20 (461 )

Changes in other components of working capital (108,385 ) (90,884 )

Other long-term liabilities 5,027 1,061

Other, net 95 (2,876 )

NET CASH USED IN OPERATING ACTIVITIES (46,704 ) (34,007 )

?

Cash Flows from Investing Activities:

Acquisition of property and equipment (9,835 ) (11,693 )

Proceeds from sale of property and equipment 457 583

Investments in securities (2,910 ) (9,696 )

Proceeds from maturities and sales of investments in 6,870 6,211 securities

NET CASH USED IN INVESTING ACTIVITIES (5,418 ) (14,595 )

?

Cash Flows from Financing Activities:

Proceeds from debt 74,251 348,688

Repayment of debt (75,939 ) (283,915 )

Cash payments related to share-based compensation (1,236 ) (694 )

Distributions paid to noncontrolling interests - (13,500 )

Contributions from noncontrolling interests 4,000 -

NET CASH PROVIDED BY FINANCING ACTIVITIES 1,076 50,579

?

Net increase (decrease) in cash, cash equivalents (51,046 ) 1,977 and restricted cash

Cash, cash equivalents and restricted cash at 451,852 202,101 beginning of period

Cash, cash equivalents and restricted cash at end of $ 400,806 $ 204,078 period

Tutor Perini Corporation

Backlog Information

Unaudited

?

(in millions)

Backlog atDecember 31, 2020

New Awards in the Three Months Ended March 31, 2021(a)

Revenue in the Three Months Ended March 31, 2021

Backlog at March 31, 2021

Civil

$

4,783.6

$

457.0

$

(475.6

)

$

4,765.0

Building

1,702.3

344.2

(407.2

)

1,639.3

Specialty Contractors

1,859.8

157.5

(324.8

)

1,692.5

Total

$

8,345.7

$

958.7

$

(1,207.6

)

$

8,096.8

Tutor Perini Corporation

Backlog Information

Unaudited

?

New Awards in Backlog at the Revenue in the Backlog at(in millions) December 31, Three Months Three Months March 31, 2020 Ended Ended 2021 March 31, March 31, 2021 2021^(a)

Civil $ 4,783.6 $ 457.0 $ (475.6 ) $ 4,765.0

Building 1,702.3 344.2 (407.2 ) 1,639.3

Specialty 1,859.8 157.5 (324.8 ) 1,692.5 Contractors

Total $ 8,345.7 $ 958.7 $ (1,207.6 ) $ 8,096.8

(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/20210505005916/en/

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