Tutor Perini Earnings 2020-06-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

tpc-20200630x10q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________

Commission File Number: 1-6314

Tutor Perini Corporation

(Exact Name of Registrant as Specified in its Charter)


MASSACHUSETTS		04-1717070
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

15901 OLDEN STREET, SYLMAR, CALIFORNIA		91342-1093
(Address of Principal Executive Offices)		(Zip Code)

(818) 362-8391

(Registrant’s Telephone Number, Including Area Code)

None

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $1.00 par value

TPC

The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☒	Accelerated filer ☐
Non-accelerated filer ☐	Smaller reporting company ☐
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of common stock, $1.00 par value per share, of the registrant outstanding at July 22, 2020 was 50,771,288.

Table of Contents

TUTOR PERINI CORPORATION AND SUBSIDIARIES

TABLE OF CONTENTS


			Page Numbers
Part I.	Financial Information:
	Item 1.	Financial Statements:
		Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2020 and 2019 (Unaudited)	3
		Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2020 and 2019 (Unaudited)	4
		Condensed Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019 (Unaudited)	5
		Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2020 and 2019 (Unaudited)	6
		Notes to Condensed Consolidated Financial Statements (Unaudited)	7
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	31
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	40
	Item 4.	Controls and Procedures	40
Part II.	Other Information:
	Item 1.	Legal Proceedings	40
	Item 1A.	Risk Factors	41
	Item 4.	Mine Safety Disclosures	42
	Item 5.	Other Information	42
	Item 6.	Exhibits	42
	Signature		43

Table of Contents

PART I. – FINANCIAL INFORMATION

Item 1. Financial Statements

TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

UNAUDITED



	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands, except per common share amounts)	2020		2019		2020		2019
REVENUE	$	1,276,427	$	1,125,275	$	2,527,156	$	2,083,762
COST OF OPERATIONS		(1,158,673)		(1,024,332)		(2,298,322)		(1,894,349)
GROSS PROFIT		117,754		100,943		228,834		189,413
General and administrative expenses		(60,058)		(62,797)		(123,911)		(128,354)
Goodwill impairment		—		(379,863)		—		(379,863)
INCOME (LOSS) FROM CONSTRUCTION OPERATIONS		57,696		(341,717)		104,923		(318,804)
Other income (expense)		(797)		900		(316)		1,322
Interest expense		(16,464)		(17,522)		(32,900)		(33,947)
INCOME (LOSS) BEFORE INCOME TAXES		40,435		(358,339)		71,707		(351,429)
Income tax (expense) benefit		(9,576)		42,900		(14,710)		40,712
NET INCOME (LOSS)		30,859		(315,439)		56,997		(310,717)
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS		12,150		5,091		20,917		10,169
NET INCOME (LOSS) ATTRIBUTABLE TO TUTOR PERINI CORPORATION	$	18,709	$	(320,530)	$	36,080	$	(320,886)
BASIC EARNINGS (LOSS) PER COMMON SHARE	$	0.37	$	(6.38)	$	0.71	$	(6.40)
DILUTED EARNINGS (LOSS) PER COMMON SHARE	$	0.37	$	(6.38)	$	0.71	$	(6.40)
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:
BASIC		50,667		50,224		50,502		50,161
DILUTED		50,935		50,224		50,885		50,161

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Table of Contents

TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

UNAUDITED



	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2020		2019		2020		2019
NET INCOME (LOSS)	$	30,859	$	(315,439)	$	56,997	$	(310,717)

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Defined benefit pension plan adjustments		424		331		847		661
Foreign currency translation adjustments		1,655		810		(2,358)		1,158
Unrealized gain in fair value of investments		1,306		686		1,848		1,359
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX		3,385		1,827		337		3,178

COMPREHENSIVE INCOME (LOSS)		34,244		(313,612)		57,334		(307,539)
LESS: COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS		13,004		5,248		19,751		10,428
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO TUTOR PERINI CORPORATION	$	21,240	$	(318,860)	$	37,583	$	(317,967)

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Table of Contents

TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

UNAUDITED



	As of June 30,		As of December 31,
(in thousands, except share and per share amounts)	2020		2019

ASSETS
CURRENT ASSETS:
Cash and cash equivalents ($92,056 and $103,850 related to variable interest entities ("VIEs"))	$	182,599	$	193,685
Restricted cash		8,892		8,416
Restricted investments		75,382		70,974
Accounts receivable ($129,081 and $91,090 related to VIEs)		1,586,560		1,354,519
Retainage receivable ($98,304 and $89,132 related to VIEs)		581,495		562,375
Costs and estimated earnings in excess of billings ($26,392 and $22,764 related to VIEs)		1,149,103		1,123,544
Other current assets ($55,286 and $58,128 related to VIEs)		222,392		197,473
Total current assets		3,806,423		3,510,986
PROPERTY AND EQUIPMENT ("P&E"), net of accumulated depreciation of $417,575 and $388,147 (net P&E of $34,669 and $49,919 related to VIEs)		504,722		509,685
GOODWILL		205,143		205,143
INTANGIBLE ASSETS, NET		140,674		155,270
OTHER ASSETS		106,641		104,693
TOTAL ASSETS	$	4,763,603	$	4,485,777

LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt, net of unamortized discount and debt issuance costs totaling $11,911 and $0	$	320,790	$	124,054
Accounts payable ($110,676 and $93,848 related to VIEs)		770,515		682,699
Retainage payable ($19,589 and $13,967 related to VIEs)		278,045		252,181
Billings in excess of costs and estimated earnings ($434,608 and $422,847 related to VIEs)		962,446		844,389
Accrued expenses and other current liabilities ($16,212 and $25,402 related to VIEs)		209,576		206,533
Total current liabilities		2,541,372		2,109,856
LONG-TERM DEBT, less current maturities, net of unamortized discount and debt issuance costs totaling $5,190 and $23,343		515,629		710,422
DEFERRED INCOME TAXES		41,329		35,686
OTHER LONG-TERM LIABILITIES		201,132		199,288
TOTAL LIABILITIES		3,299,462		3,055,252
COMMITMENTS AND CONTINGENCIES (NOTE 11)
EQUITY
Stockholders' equity:
Preferred stock - authorized 1,000,000 shares ($1 par value), none issued		—		—
Common stock - authorized 75,000,000 shares ($1 par value), issued and outstanding 50,771,288 and 50,278,816 shares		50,771		50,279
Additional paid-in capital		1,124,672		1,117,972
Retained earnings		350,071		313,991
Accumulated other comprehensive loss		(40,597)		(42,100)
Total stockholders' equity		1,484,917		1,440,142
Noncontrolling interests		(20,776)		(9,617)
TOTAL EQUITY		1,464,141		1,430,525
TOTAL LIABILITIES AND EQUITY

Price	13.16	EPS	-5
Shares	51	P/E	-3
MCap	666	P/FCF	6
Net Debt	623	EBIT	-212
TEV	1,289	TEV/EBIT	-6
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-06-30	Filed 2020-07-29
10-Q	2020-03-31	Filed 2020-05-06
10-K	2019-12-31	Filed 2020-02-26
10-Q	2019-09-30	Filed 2019-11-06
10-Q	2019-06-30	Filed 2019-08-08
10-Q	2019-03-31	Filed 2019-05-08
10-K	2018-12-31	Filed 2019-02-27
10-Q	2018-09-30	Filed 2018-11-07
10-Q	2018-06-30	Filed 2018-08-07
10-Q	2018-03-31	Filed 2018-05-09
10-K	2017-12-31	Filed 2018-02-27
10-Q	2017-09-30	Filed 2017-11-09
10-Q	2017-06-30	Filed 2017-08-07
10-Q	2017-03-31	Filed 2017-05-03
10-K	2016-12-31	Filed 2017-02-23
10-Q	2016-09-30	Filed 2016-11-02
10-Q	2016-06-30	Filed 2016-08-02
10-Q	2016-03-31	Filed 2016-05-04
10-K	2015-12-31	Filed 2016-02-29
10-Q	2015-09-30	Filed 2015-11-16
10-Q	2015-06-30	Filed 2015-08-06
10-Q	2015-03-31	Filed 2015-05-07
10-K	2014-12-31	Filed 2015-02-26
10-Q	2014-09-30	Filed 2014-11-05
10-Q	2014-06-30	Filed 2014-08-05
10-Q	2014-03-31	Filed 2014-05-07
10-K	2013-12-31	Filed 2014-02-24
10-Q	2013-09-30	Filed 2013-11-04
10-Q	2013-06-30	Filed 2013-08-09
10-Q	2013-03-31	Filed 2013-05-02
10-K	2012-12-31	Filed 2013-02-25
10-Q	2012-09-30	Filed 2012-11-02
10-Q	2012-06-30	Filed 2012-08-07
10-Q	2012-03-31	Filed 2012-05-04
10-K	2011-12-31	Filed 2012-03-02
10-Q	2011-09-30	Filed 2011-11-07
10-Q	2011-06-30	Filed 2011-08-05
10-Q	2011-03-31	Filed 2011-05-06
10-K	2010-12-31	Filed 2011-03-07
10-Q	2010-09-30	Filed 2010-11-05
10-Q	2010-06-30	Filed 2010-08-06
10-Q	2010-03-31	Filed 2010-05-10
10-K	2009-12-31	Filed 2010-03-01

8-K	2020-07-29	Earnings, Exhibits
8-K	2020-05-20
8-K	2020-05-06
8-K	2020-02-26
8-K	2019-12-13
8-K	2019-11-06
8-K	2019-09-24
8-K	2019-09-17
8-K	2019-09-10
8-K	2019-08-08
8-K	2019-08-05
8-K	2019-05-24
8-K	2019-05-08
8-K	2019-03-28
8-K	2019-02-27
8-K	2018-11-07
8-K	2018-08-07
8-K	2018-05-25
8-K	2018-05-09
8-K	2018-02-27
8-K	2018-01-05

EX-3.1	tpc-20200630xex3_1.htm
EX-31.1	tpc-20200630xex31_1.htm
EX-31.2	tpc-20200630xex31_2.htm
EX-32.1	tpc-20200630xex32_1.htm
EX-32.2	tpc-20200630xex32_2.htm
EX-95	tpc-20200630xex95.htm

TPC 10Q Quarterly Report

Tutor Perini Earnings 2020-06-30