Tutor Perini(US:TPC)2019-11-06 22:07Financial Performance - Consolidated revenue for Q3 2019 was $1.2 billion, up from $1.1 billion in Q3 2018, while revenue for the nine months ended September 30, 2019, remained at $3.3 billion[165]. - Income from construction operations for Q3 2019 was $47.9 million, compared to $47.3 million in Q3 2018; however, there was a loss of $270.9 million for the nine months ended September 30, 2019, primarily due to a $379.9 million goodwill impairment charge[166]. - Adjusted income from construction operations for the nine months ended September 30, 2019, was $109.0 million, excluding the goodwill impairment charge[166]. - Diluted earnings per share for Q3 2019 was $0.38, while the loss per share for the nine months was $6.01, compared to earnings of $0.42 and $0.68 for the same periods in 2018[168]. Awards and Backlog - Consolidated new awards for Q3 2019 totaled $0.7 billion, down from $0.9 billion in Q3 2018, while total new awards for the nine months were $4.9 billion, up from $4.5 billion in the same period last year[169]. - Consolidated backlog as of September 30, 2019, was $10.9 billion, a 17% increase from $9.3 billion at December 31, 2018, and a 28% increase from $8.5 billion at September 30, 2018[170]. - The Civil segment accounted for approximately 55% of the backlog, with significant projects including the $1.4 billion Purple Line Section 3 Stations project and the $350 million Table Mountain Hotel and Casino project[170]. - New awards in the Civil segment totaled $293 million and $2.1 billion for the three and nine months ended September 30, 2019, compared to $346 million and $1.6 billion for the same periods in 2018[186]. - Backlog for the Civil segment was $5.9 billion as of September 30, 2019, up 28% from $4.7 billion as of September 30, 2018[187]. - New awards in the Building segment totaled $199 million and $1.6 billion for the three and nine months ended September 30, 2019, compared to $493 million and $1.8 billion for the same periods in 2018[191]. - Backlog for the Building segment was $2.7 billion as of September 30, 2019, up 25% from $2.1 billion as of September 30, 2018[192]. - Backlog for the Specialty Contractors segment was $2.3 billion as of September 30, 2019, up 31% from $1.7 billion as of September 30, 2018[198]. Segment Performance - Civil segment revenue for the three and nine months ended September 30, 2019 increased by 22% and 21%, respectively, compared to the same periods in 2018, driven by increased project execution activities[182]. - Adjusted income from construction operations for the Civil segment increased by 23% and 48% for the three and nine months ended September 30, 2019, respectively, compared to the same periods in 2018[183]. - Building segment revenue for the three and nine months ended September 30, 2019 decreased by 9% and 8%, respectively, compared to the same periods in 2018[188]. - Adjusted income from construction operations for the Building segment decreased by 15% and 27% for the three and nine months ended September 30, 2019, respectively, compared to the same periods in 2018[189]. - Specialty Contractors segment revenue for the three months ended September 30, 2019 increased by 6% compared to the same period in 2018, while revenue for the nine months decreased by 15%[194]. Tax and Financial Ratios - The effective tax rate for Q3 2019 was 17.3%, compared to 22.5% in Q3 2018; the nine-month effective tax rate was 11.0%, down from 26.2% in the prior year[167]. - The leverage ratio under the 2017 Credit Facility was 2.64 to 1.00, well below the required maximum of 3.50 to 1.00[212]. - The fixed charge coverage ratio was 3.45 to 1.00, exceeding the required minimum of 1.25 to 1.00[212]. Cash Flow and Working Capital - Cash and cash equivalents increased to $207.1 million as of September 30, 2019, up from $116.1 million as of December 31, 2018[204]. - Net cash provided by operating activities for the nine months ended September 30, 2019, was $111.4 million, with $222.9 million generated in the third quarter[205]. - The increase in cash provided by operating activities compared to the same period in 2018 was $146.1 million, primarily due to favorable timing of payments and changes in accounts payable[206]. - Cash used for investing activities was $66.1 million for the first nine months of 2019, compared to $58.5 million in the same period of 2018[207]. - Net cash provided by financing activities was $48.3 million for the first nine months of 2019, primarily due to increased net borrowings of $66.1 million[208]. - Working capital as of September 30, 2019, was $1.7 billion, with a current assets to current liabilities ratio of 1.88[209]. - Restricted cash and investments totaled $74.0 million as of September 30, 2019, compared to $61.9 million as of December 31, 2018[204]. Future Outlook - The company anticipates continued growth driven by long-term capital spending plans, with approximately $200 billion in funding approved for transportation projects in various states[174]. - The outlook for growth remains favorable, particularly in the Civil and Specialty Contractors segments, despite potential delays in project commencements and completions[174]. - The company had no material changes in contractual obligations from the previous year[213].