Tutor Perini(US:TPC)2023-03-16 02:38Financial Data and Key Metrics Changes - The company reported a revenue of $3.8 billion for 2022, down 18% compared to 2021, primarily due to a lack of major new awards and delays caused by the COVID-19 pandemic [20][21] - The diluted loss per share for 2022 was $4.09, including a loss of $1.80 per share for the fourth quarter [5][30] - Operating cash flow reached a record $207 million, the highest since the merger in 2008, driven by solid collection activities [5][20] Business Line Data and Key Metrics Changes - Civil segment revenue was $1.7 billion, down 17% from 2021 [21] - Building segment revenue was $1.2 billion, down 13% from the prior year [21] - Specialty Contractors segment revenue was $813 million, down 27% [21] - Loss from construction operations for 2022 was $205 million, compared to income of $227 million in 2021 [24] Market Data and Key Metrics Changes - The year-end backlog was $7.9 billion, down modestly from 2021 but not recovered from pre-pandemic levels of over $10 billion [6][8] - The company anticipates significant potential awards exceeding $3 billion, including projects in New York City and California [8][9] Company Strategy and Development Direction - The company is focusing on resolving unapproved change orders and claims to improve cash flow [6][18] - A new strategic approach to collections has been implemented, particularly in the Specialty Contractors segment in New York, to expedite cash collections and reduce legal expenses [10][11] - The company is increasingly selective in project pursuits, emphasizing risk diversification and improved contractual terms [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2023, anticipating revenue growth and a gradual return to profitability [6][18] - The company expects strong demand for services due to funding from the Bipartisan Infrastructure Fund, which should enable the commencement of large projects [15][34] - Management highlighted that the pandemic's impact is receding, and the court systems are reopening, which is expected to improve future project opportunities [38] Other Important Information - The company plans to make a significant cash paydown of $44 million on its Term Loan B by April 7, 2023 [32] - Corporate G&A expenses for 2022 were $62 million, compared to $58 million in 2021 [26] Q&A Session Summary Question: Future projects outside California and New York - Management indicated they evaluate opportunities nationwide but face challenges in nonunion areas like the Southeast [37] Question: Will the $11 billion in low bids come back? - Management confirmed that these projects are expected to return, albeit delayed, and they are actively pursuing recompete opportunities [39] Question: Debt repayment status - Management confirmed no debt repayment has occurred since the end of Q4, but a mandatory $44 million payment is due soon [41]