Tutor Perini(TPC)2025-02-27 22:05Financial Performance - Consolidated revenue for 2024 was $4.3 billion, up 12% from $3.9 billion in 2023, driven by growth in the Building and Civil segments[113]. - Loss from construction operations decreased to $103.8 million in 2024 from $114.6 million in 2023, primarily due to a net increase in project execution activities totaling $93.2 million[115]. - The effective income tax rate for 2024 was 29.3%, a slight decrease from 30.1% in 2023[125]. - The company generated record cash flow from operations of $503.5 million in 2024, utilizing part of it to repay $245.3 million of Term Loan B debt[126]. - Net cash provided by operating activities for 2024 was $503.5 million, a 63% increase from $308.5 million in 2023, marking the highest cash flow since the 2008 merger[159]. Awards and Backlog - Consolidated new awards in 2024 reached $12.8 billion, significantly higher than $6.1 billion in 2023, with major projects including the $3.76 billion Manhattan Jail project[127]. - Consolidated backlog as of December 31, 2024, was $18.7 billion, an 84% increase from $10.2 billion at the end of 2023, setting a new all-time record[128]. - Approximately $4.5 billion, or 24% of the backlog as of December 31, 2024, is expected to be recognized as revenue in 2025[129]. - New awards in the Civil segment totaled $6.7 billion in 2024, significantly up from $1.7 billion in 2023[137]. - New awards in the Building segment reached $4.5 billion in 2024, compared to $3.3 billion in 2023[143]. - New awards in the Specialty Contractors segment totaled $1.7 billion in 2024, up from $1.1 billion in 2023[150]. Segment Performance - Civil segment revenue for 2024 was $2,118.9 million, a 12% increase from $1,883.9 million in 2023[133]. - Income from construction operations in the Civil segment decreased by $60.3 million to $138.3 million in 2024, primarily due to unfavorable adjustments related to arbitration decisions and legal rulings[134]. - Building segment revenue increased by 24% to $1,617.6 million in 2024, driven by healthcare and educational facility projects[140]. - Loss from construction operations in the Building segment improved to $24.1 million in 2024 from a loss of $91.2 million in 2023[141]. - Specialty Contractors segment revenue decreased by 15% to $590.4 million in 2024, mainly due to reduced project activities[147]. - Loss from construction operations in the Specialty Contractors segment improved to $103.3 million in 2024 from a loss of $144.8 million in 2023[148]. Cash and Debt Management - As of December 31, 2024, cash and cash equivalents increased to $455.1 million from $380.6 million in 2023, with cash available for corporate purposes rising to $265.6 million[158]. - The company utilized $245.3 million of its record cash flow in 2024 to repay outstanding Term Loan B, with an additional voluntary repayment of $121.9 million in Q1 2025[157]. - Working capital as of December 31, 2024, was $1.0 billion, with a current assets to current liabilities ratio of 1.41, down from 1.66 in 2023[164]. - Net cash used in investing activities in 2024 was $40.7 million, primarily for capital expenditures of $37.4 million, compared to $78.2 million in 2023[162]. - Net cash used in financing activities for 2024 was $393.3 million, driven by a $354.6 million net repayment of debt, including the redemption of 2017 Senior Notes[163]. - The company issued $400.0 million in 11.875% Senior Notes in April 2024, with interest payable semi-annually starting October 2024[166]. - The average borrowing rates for the Term Loan B and the Revolver in 2024 were approximately 10.0% and 11.8%, respectively[176]. - As of December 31, 2024, the company had an unused borrowing capacity of $170.0 million under the Revolver[174]. - The First Lien Net Leverage Ratio was (.56) to 1.00 as of December 31, 2024, well below the required maximum of 2.25:1.00[177]. - The company has debt obligations totaling $556.1 million, with $24.1 million due in 2025, and interest payments of $221.1 million, of which $53.4 million are due in 2025[180]. - The company reported operating lease obligations of $67.1 million, with $11.0 million due in 2025[180]. Financial Risks and Accounting Policies - The company conducted its annual goodwill impairment test in the fourth quarter of 2024 and determined that goodwill was not impaired, as the estimated fair value of the Civil reporting unit exceeded its net book value significantly[191]. - The company recognizes revenue for claims as variable consideration in accordance with ASC 606, with estimates based on anticipated performance and available information[182]. - The company evaluates joint ventures to determine if they qualify as variable interest entities (VIEs) and consolidates them if it is the primary beneficiary[185]. - The company has limited warranties for work performed, with warranty periods typically extending for a limited duration following substantial completion of projects[180]. - The company assesses its joint ventures at inception to determine if they meet the qualifications of a VIE, considering factors such as equity investment and voting rights[184]. - The company has made claims against customers for costs incurred in excess of current contract provisions, which are recognized as variable consideration[182].