Tutor Perini(US:TPC)2019-08-10 03:35Financial Data and Key Metrics Changes - The company reported a revenue of $1.1 billion for Q2 2019, slightly up from the previous year, but impacted by project delays [33] - Gross profit for Q2 2019 was $101 million, down 15% year-over-year, with a gross margin of 9% [35] - Adjusted net income attributable to the company was $9 million or $0.18 per diluted share, compared to $24.9 million or $0.49 per diluted share in the same quarter last year [46] Business Line Data and Key Metrics Changes - Civil segment revenue was $474 million, up 18% year-over-year, benefiting from newer projects [33] - Building segment revenue was $428 million, lower than the previous year due to timing of revenue recognition [34] - Specialty Contractors segment reported an adjusted loss of $4 million, compared to an operating income of $7 million in the same quarter last year [41] Market Data and Key Metrics Changes - The company finished the quarter with a backlog of $11.4 billion, up 31% year-over-year, indicating strong market demand [12] - Approximately 75% of the total backlog is comprised of higher-margin specialty and civil work [12] Company Strategy and Development Direction - The company remains focused on improving the performance of its Specialty Contractors group, with a new executive appointed to stabilize operations [10][42] - The long-term outlook for revenue growth and increased earnings is positive, particularly with a backlog represented by higher-margin civil projects [57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future despite the impairment charge and project delays, citing a strong market demand for construction services [6][55] - The company anticipates significant cash flow improvements in the second half of 2019, driven by the reduction of unbilled receivables and project execution [50][59] Other Important Information - The company took a non-cash goodwill impairment charge in Q2 2019 due to a decline in stock price, which does not affect cash flows or financial strength [5][31] - The company is actively negotiating and settling claims and change orders, with expectations of significant collections in the near future [25][93] Q&A Session Summary Question: Were the adjusted results only adjusted for the goodwill charges? - The adjusted results were only adjusted for the goodwill, with all other items reported in accordance with GAAP [65] Question: How much did the weather impact the Newark project? - The weather caused approximately $60 million of deferred revenue, with 93 days of excess weather delays reported [67] Question: What is the confidence level regarding the High-Speed Rail project? - Management expressed confidence that the right-of-ways will be handed over by September, allowing for significant project progress [85] Question: What difficulties has the Specialty group encountered? - The Specialty group has faced performance issues, and management expects the new executive to stabilize operations over the next few months [88]