Tutor Perini(US:TPC)2023-03-15 21:09Financial Performance - Consolidated revenue for 2022 was $3.8 billion, a decrease of 29% from $5.3 billion in 2020[108]. - Loss from construction operations for 2022 was $204.8 million, compared to income of $226.8 million in 2021[109]. - Diluted loss per common share for 2022 was $4.09, compared to diluted earnings per share of $1.79 in 2021[117]. - Corporate general and administrative expenses increased to $62.2 million in 2022 from $58.0 million in 2021, primarily due to higher compensation-related expenses[147]. - Other income, net increased by $4.7 million in 2022 to $6.7 million, primarily due to interest earned on federal income tax receivable balances[148]. - Net cash provided by operating activities was $207.0 million in 2022, a significant increase of $355.5 million compared to net cash used in operating activities of $148.5 million in 2021[154]. - Cash and cash equivalents rose to $259.4 million as of December 31, 2022, compared to $202.2 million as of December 31, 2021[153]. - Working capital decreased to $1.7 billion with a current assets to current liabilities ratio of 1.87 as of December 31, 2022, down from $2.1 billion and a ratio of 2.17 in 2021[158]. Backlog and Awards - The company's consolidated backlog as of December 31, 2022, was $7.9 billion, down 29% from a record level of $11.2 billion at the end of 2019[107]. - Consolidated new awards in 2022 totaled $3.5 billion, down from $4.5 billion in 2021[118]. - Significant new awards in 2022 included $466 million for a mass-transit project in California and $260 million for the Eagle Mountain - Woodfibre Gas Pipeline project in Canada[118]. - The company has several pending significant new projects with contract awards expected in 2023 totaling a combined value that could exceed $3 billion[120]. - As of December 31, 2022, approximately $4 billion, or 45%, of the company's backlog is expected to be recognized as revenue in 2023[121]. Segment Performance - The Civil segment's revenue for 2022 was $1,734.9 million, a decrease of 17% compared to 2021, primarily due to reduced project execution activities[128]. - New awards in the Civil segment totaled $1.6 billion in 2022, down from $1.9 billion in 2021[132]. - The Building segment's revenue for 2022 was $1,242.6 million, a decrease of 13% compared to 2021[135]. - New awards in the Building segment totaled $1.2 billion in 2022, compared to $2.0 billion in 2021[138]. - The Specialty Contractors segment's revenue for 2022 was $813.3 million, a decrease of 27% compared to 2021[141]. - The loss from construction operations in the Specialty Contractors segment was $168.0 million in 2022, compared to a loss of $10.0 million in 2021[142]. - Backlog for the Civil segment was $4.4 billion as of December 31, 2022, slightly down from $4.6 billion as of December 31, 2021[134]. - Backlog for the Building segment was $2.2 billion as of December 31, 2022, down from $2.3 billion as of December 31, 2021[140]. - Backlog for the Specialty Contractors segment was $1.3 billion as of December 31, 2022, down from $1.4 billion as of December 31, 2021[146]. Tax and Interest Rates - The effective income tax rate for 2022 was 28.1%, compared to 16.0% for 2021[117]. - The effective income tax rate increased to 28.1% in 2022 from 16.0% in 2021, influenced by earnings attributable to noncontrolling interests and state income taxes[150]. - The average borrowing rates for the Term Loan B and the Revolver were approximately 6.7% and 8.8%, respectively, as of December 31, 2022[162]. - If short-term floating interest rates on these borrowings were to change by 0.50%, interest expense would increase or decrease by approximately $2.1 million over the next twelve months[180]. Debt and Cash Flow - The company has debt obligations totaling $972.4 million, with $70.3 million due in 2023, and interest payments of $240.8 million, of which $71.3 million are due in 2023[170]. - As of December 31, 2022, the company had approximately $422.4 million in borrowings with variable interest rates, down from $453.9 million in 2021[180]. - Net cash used in investing activities was $65.6 million in 2022, primarily for capital expenditures totaling $59.8 million[156]. - The Company expects a prepayment of $44.0 million on the Term Loan B in the second quarter of 2023 due to generating "excess" cash flow in 2022[161]. Operational Strategies - The company implemented a new collections strategy in 2022 to expedite settlements and reduce legal expenses, impacting income from construction operations[112]. - The company expects to make substantial progress in resolving disputes and unapproved change orders in 2023 and beyond[106]. Accounting and Goodwill - The company recognizes revenue for claims as variable consideration in accordance with ASC 606, with estimates based on anticipated performance and available information[169]. - Goodwill was not impaired during the fourth quarter of 2022, as the estimated fair value of the Civil reporting unit exceeded its net book value significantly[178]. - The company evaluates joint ventures to determine if they qualify as variable interest entities (VIEs) and consolidates them if it is the primary beneficiary[172]. - The company uses the cost-to-cost method for recognizing contract revenue, measuring progress based on the ratio of contract costs incurred to total estimated costs[167]. - The company has historically not incurred material costs from warranty claims, which typically extend for a limited duration following substantial completion of projects[168]. - The impairment evaluation process for goodwill involves significant judgment regarding revenue growth rates, profitability levels, and discount rates[176].