Fluor(FLR) - 2022 Q2 - Quarterly Report

Part I: Financial Information Financial Statements The company's Q2 2022 revenue declined to $3.3 billion, yet net earnings turned positive to $66 million, with a key accounting change reclassifying certain businesses to continuing operations Condensed Consolidated Statement of Operations (Unaudited) | (in millions, except per share amounts) | 3ME June 30, 2022 | 3ME June 30, 2021 | 6ME June 30, 2022 | 6ME June 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $3,299 | $3,684 | $6,422 | $7,031 | | Gross Profit | $115 | $88 | $237 | $181 | | Operating Profit (Loss) | $106 | $(76) | $201 | $(108) | | Net Earnings (Loss) from Cont Ops attributable to Fluor | $66 | $(83) | $114 | $(168) | | Net Earnings (Loss) attributable to Fluor | $66 | $(115) | $114 | $(201) | | Diluted EPS from Cont Ops | $0.38 | $(0.62) | $0.66 | $(1.23) | Condensed Consolidated Balance Sheet (Unaudited) | (in millions) | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Total Current Assets | $4,642 | $5,181 | | Total Assets | $6,525 | $7,089 | | Total Current Liabilities | $3,126 | $3,614 | | Total Liabilities | $4,831 | $5,522 | | Total Equity | $1,694 | $1,567 | Condensed Consolidated Statement of Cash Flows (Unaudited) | (in millions) | 6ME June 30, 2022 | 6ME June 30, 2021 | | :--- | :--- | :--- | | Operating Cash Flow | $(133) | $(154) | | Investing Cash Flow | $77 | $0 | | Financing Cash Flow | $(54) | $655 | | Increase (Decrease) in Cash | $(135) | $512 | - In Q1 2022, the Stork and remaining AMECO businesses were reclassified from Discontinued Operations to Continuing Operations, reversing a $63 million impairment expense[39] - In Q2 2022, NuScale became a publicly traded company, though Fluor continues to control and consolidate NuScale[40] Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) Revenue declined due to project completions and award delays, while segment profit increased, and the backlog decreased to $19.5 billion Segment Performance Summary (in millions) | Segment | Revenue (6ME 2022) | Revenue (6ME 2021) | Segment Profit (6ME 2022) | Segment Profit (6ME 2021) | | :--- | :--- | :--- | :--- | :--- | | Energy Solutions | $2,505 | $2,310 | $119 | $111 | | Urban Solutions | $1,964 | $2,405 | $23 | $(38) | | Mission Solutions | $1,140 | $1,460 | $86 | $89 | | Other | $813 | $856 | $(5) | $(6) | | Total | $6,422 | $7,031 | $223 | $156 | Backlog by Segment (in millions) | Segment | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Energy Solutions | $8,421 | $9,324 | | Urban Solutions | $7,711 | $7,048 | | Mission Solutions | $1,863 | $2,562 | | Other | $1,524 | $1,866 | | Total Backlog | $19,519 | $20,800 | - Total new awards for Q2 2022 were $3.55 billion, more than double the $1.70 billion in Q2 2021[134] - The company believes its liquidity is sufficient for the next 12 months, with $785 million available for borrowing under its credit facility as of June 30, 2022[161][162] - Operating cash flow for the first six months of 2022 was an outflow of $133 million, impacted by working capital increases on large projects[167][169] Quantitative and Qualitative Disclosures about Market Risk No material changes to market risk were reported for the first six months of 2022 - There have been no material changes to market risk during the 2022 Period, with disclosures from the 2021 10-K remaining relevant[188] Controls and Procedures Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of the end of the period[189] - No changes to internal control over financial reporting (ICFR) occurred during the quarter that materially affected or are likely to materially affect ICFR[190] Part II: Other Information Legal Proceedings The company faces various legal proceedings but expects no material adverse effect, with a key shareholder lawsuit settlement pending approval - The company is party to legal proceedings in the ordinary course of business but does not expect a material adverse financial effect[62][196] - A proposed settlement in a shareholder class-action lawsuit is pending final court approval, with a hearing scheduled for November 2022[64] - The company continues to cooperate with ongoing SEC and Department of Justice (DOJ) investigations related to charges recorded in the second quarter of 2019[75] Risk Factors No material changes to risk factors have been reported since the 2021 Annual Report - There have been no material changes from the risk factors as disclosed in the 2021 10-K[198] Unregistered Sales of Equity Securities and Use of Proceeds The company did not repurchase any equity securities during the quarter, with over 10.5 million shares remaining under its buyback plan - The company did not purchase any of its equity securities during the quarter ended June 30, 2022[201] - As of June 30, 2022, 10,513,093 shares may yet be purchased under the company's publicly announced plan[201] Mine Safety Disclosures No mine safety disclosures were reported for the period - None[202] Exhibits This section lists all filed exhibits, including required CEO/CFO certifications and Inline XBRL financial data - The report includes certifications from the CEO and CFO as required by the Sarbanes-Oxley Act (Exhibits 31.1, 31.2, 32.1, 32.2)[205] - Inline XBRL financial data files are filed as exhibits[205]