TPC - Earnings call transcript Q1 2018 | Tutor Perini Corporation

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Operator

Good day, ladies and gentlemen, and welcome to the Tutor Perini Corporation First Quarter 2018 Earnings Conference Call. My name is Tim, and I will be your coordinator for today. [Operator Instructions] As a reminder, this conference call is being recorded for replay purposes. I would now like to turn the conference over to your host, Mr. Jorge Casado, Vice President of Investor Relations. proceed. Please

Jorge Casado

and Thank are joining CEO; Ronald Smalley, Vice everyone. on With and all Executive call the Tutor, President you day, us. for us Gary Good CFO. Chairman and

law. Tutor actual quarter Please There Before we that during Tutor. most call, risk about risk update the turn is potentially disclosures Perini's of reflect an a differences. will we as Ronald existing I refer which our future for to remind With such over whether otherwise, call making statements, current by everyone inherent The statements, today's assumes factors result forward-looking Chairman and results, results be that, management's to could XX-K discuss materially. XX-Q obligation I that or will trends and to could contribute information, first CEO, differ new than our events no will assessments to our of as recent and that company other forward-looking information. required filings

Ronald Tutor

years believe contribute bookings X to which and in contractor segments. and backlog early of breaking volume Thanks, work, the years new start-up resulted total of largest awards our joining was new driver The we quarter XX% month. the literally, commencing previously design-build Civil, over the up us largest it ratio in notably announced excellent strong X.X. Jorge. is follow. immediately had book-to-burn in ground currently and Airport was Specialty high that gentlemen, totaled virtually first will We than $X.X strong backlog XX%, results and Newark the thank our We for X project, order and XX% quarterly It and more and of year-over-year growth corresponding a in record $X.X billion our next of very lump-sum a for a resulted billion, awards billion Good Building and of year-over-year. today. The XX% that Terminal of X $X.X this an ladies starting new award you, afternoon,

I experiencing occurred you of of has favorable strong agencies' usual, plan growth our would XXXX state has direct purported any of have impacts really result anticipated been independent backlog and measures a been spending As ahead that the and remind we funding. local federal since

Airport and revenue compared Terminal year California of York, in from significantly our importantly, Iowa half Newark ramp the first last profit as Purple better earlier X, the We this year in more a projects accounting New our X, years that later Bridge including than new quarter, Now results, while on backlog share weaker-than-expected related unfortunately the in essentially per unexpected late were our ago. this decision The impressive quarter, X subcontractor that results due larger negative in there an projects dispute last to year and that year's comparing Civil awards we York bridge segment decision first other Line this and CQXX quarter we completed were the New to results be this quarter certain to earnings year's arbitration were When a we notified Rail, April. substantially had over some of project expected anticipate first than we of lower first had quarter experienced as to second contribution year, the portion. I-XX certain that this High-Speed up results. for should

and pace of numerous activities, very say of no activities high I shows and accelerating said bidding I've before, times remains As activities. sign when

line light bidder project of a into for Green million. quarter. of award is consists Lunda continues project winning XX next the Contract and Metro in of rail a thereafter. new stations. $XXX involves days, bid the with - bridges, new and two project to to with anticipated of was of in success the venture major transit the by large second tunnels and rail transportation the XX Last project cut led Southwest starting shortly This joint regional Construction, cover week, subsidiary, low construction our approximately XX.X in Midwest civil light infrastructure, Our miles Highway XX the Minneapolis extension the XX

of year. the low should week, Angeles the Frontier-Kemper, Purple the submitted Westwood day the we're also next Water and Line April, our our within Los project awarded tunnel Angeles results the bid we relate bid, be Furthermore, tunnels X On that billion Department at which - in expecting portion the Power from bid and with same XX approximately Angeles, day. Los $XXX hear within any two June to excuse the stations, tunnel we tunnel start last of VA days tunneling and of stations, a million was should subsidiary, on Los for the million literally Extension together the XX, Furthermore, this in $X.X project. to bid and $XXX in will me,

California, collectively, X, and we $XXX $XXX of hospitality numerous bridge confident Phase projects bidding Southern million, very other we $XXX low were health in the approximately and over million Bridge in government River New $XXX the near-term just bidder we prospective on are yard The at projects in improvement segment's million thereafter. swing the Lift opportunities The are building million $XXX worth the a These the the replacement daily New April, This care and Broadway a Jersey, late in the million in replacement X York. project courthouse $XXX we summer. were the significant most Newark some results This gaming a major Harlem project as learned in include building people following in million. Building Harry competitive Bridge month, the $XXX price various in we $XXX from California at begin of Nice bridges those and work for to our terminal on are we our speak. York will million. opportunities focused project that and million with continuing $XX civil approximately category. to New mover. in tunnel We adjacent portable station and this LaGuardia await million Also numerous And also rehabilitation the train Maryland are to

have Specialty pending In States the the previously contracts. proceed. complex $XXX We as meaning Sandy award awards segment, notice literally million mechanical with closure the at any million Contractors speak. the program United building a day Baroque of anticipates Northeastern are those in we the and The our to booking $XXX in various WDF, waiting New Houses subsidiary, York announced recovering

Building Group to million addition, a In with award to Star Building our at billion, we have Electric and Civil WDF. million contract the electrical one Contractors to groups at projects. and Five contract our their larger demand, group a to to on and mechanical Newark and continues Overall, $XXX Group Specialty experience $XX continues $X.X mechanical support terminal our strong electrical of the awarded

particularly be as forward. And anticipate Contractors the profitable projects larger projects and New fewer pursue, in very selective a to which as reminder, we moving more Specialty to continue We York. working on but

the major follow. project toward Francisco and progressing locations. quarter substantial we the most Now SFMTA with the work during Purple first on rail California, are San I'll Line the with X. major San The notable the in fourth in of a California Civil completed, work completion Subway; High-speed commissioning was we projects in progressing executed the course, High-Speed XXXX project group's of testing drivers portion that Central Francisco continues Rail discuss the revenue of Section multiple In to excavation is and and quarter.

Pennsylvania. commissioning nearing most tunnel was We're civil the as and project it contributor commence busy Building the projects, that in first manner California, and technology in year the build delays certainly fall. In other thought. in is soon after balance the New we office traffic group the the system with into this with importantly California, as the first CQXX. experiencing of That complete. other the in the its certain And is. and in in the the group that know progress mechanical Line for June easements CMOX, in in work namely an The quarter project what and the issues launch on SRXX phase on Lunda CSXXX Maryland still to the largest of is tunnels various as to project Northern various permit this and us The projects, the we be now which, making However, the the final and well up York, and is work we right-of-way Section on come. Purple bid years Century projects larger starts testing complete in project ramping the the Side aim Midwest, I-XX in dramatically focused City, all to was East with as increasing primarily will open will large of on continued segment course, Civil the and that X June to don't virtually completion, for Seattle. in electrical for Access Excavation quarter

Building While this downtick it, this the segment's that large or replaced contributed other or has in their of this our see Having modest to project was quarter in largest we size was profitability said revenue that, was contributor, its revenue Sletten either projects Rudolph so year-over-year Group three two the substantially jobs too, the no year and that a with so of first year. the lower one decline. revenue

included electrical X Electric's Cortlandt as the major the to progress work the as Tower commenced Contractors has a SRXX schedule. Seattle. stated A Fisk's with Hotel Philadelphia quarter in and that Yards we immediately of in the Finally, and Station very work well strict segment, and the Terminal continues Live! as and operation Street work And, schedule the Casino in to Specialty May, W It's Star Maryland we construction In in on Five project for on Hudson Transit Airport up in as course, and Transbay major gearing commitment completion. are a previously, first CSXXX our contributors Center speak on Newark toward CMOX.

first of bids tunnel. another Purple of The we the hope waiting the Line experienced III Building billion, II April, building of MTA. Phase as week. results be a I $X ended million we're first of does to published within expect notice our I believe might XXXX III any with the quarter of tunnels not As million, and I last segment's is mentioned we up award on weeks worth XX% backlog the the waiting awards day $X.X we compared Phase I billion go for add currently first $X the to to and of adjustments new backlog $XXX first The totaled Phase Los resulting a $XXX for Angeles We're billion, in quarter next to two year. a quarter total the which in would of said June. which, the million, course, should include the low we of record earlier, are previously by bid $X.X in

to backlog, of California addition Newark for and $XXX to Airport the York. F resulting awards other health the $XXX are first as In New XXXX totaling of Specialty Based project of I booked the $XX project a for XX% billion funding office funding Star's New increased contributor project care PATH million Five maintaining building in in Star's Newark awards million to market as of than added quarter well in same technology and another segment $XX Contractors outlook civil $X.X was as million Terminal and our in $XXX the The year. Authority, York WDF adjustments and in the and million earlier, billion, and compared awards, additional $XXX pending over $XX of The current stated we Northern the the E tunnels on government including last $X totaling project, new California major adjustments, a segments Five booked more guidance. backlog, million California. million million our and this for up campus large backlog quarter, in awards Transit of on course,

we expect to the I'll XXXX results. maintain per the the financial turn to for and of range share - earnings details With in the $X.XX. $X.XX the of diluted expect over our that, Gary We will call

Gary Smalley

to and execution are projects projects. larger projects million Contractors new the and later the followed yet revenue quarter that Thank Lower was results are afternoon, first Building discussing start our reduced generating in as first revenues guidance $XXX that as expected last our for million and with will due from everyone. The volume same I year's also activity nearing $X on for Ron compared of project first delays and and previously and certain nearing Good electrical of the that in for Building York for or their assumptions. Building life some not activities flow quarter the year. our segment balance reduced decrease due project, Contractors also comments volume completion. quarter. execution that consistent are were revenue the last are was revenue a the earlier Specialty project of were New SRXX you, completion, Civil newer awards the sheet, which projects modestly as quarter cash million, Specialty on on while by the primarily billion, Segment mentioned to the and completion first various timing other Ron. $XXX segment awarded compared segments, last down $XXX and Revenue well of this project to is quarter Civil, respectively. was nearing mentioned, Civil year various in reasons completed resulted cycle by expected revenue lower quarter to

expenses, the those well for XXXX. $X retention Loss million of to for of reminder, certain last the Ron a all slightly several first was the XXXX mentioned decision ramp well the comparable increased expected attributable decrease was project income operations bridge for The growth the G&A compared quarter so excuse result project increase quarter from a Airport the year and executives. was to compensation-related outcome due revenue mass related me, operations million largely to including construction from as mainly the was of year. a the The the as arbitration later as up the pretax year. $XX to construction in to quarter projects quarter unexpected million $XX.X to as we first $XX Newark that to lower anticipate charge strong As - we as to first well as larger volume. are as transit took key of the large this of of the million, compared up large

we charge us to reflect unfavorable arbitration first noted, received April. unexpected for rules decision late the As Ron this Accounting in our quarter results. events required subsequent in

corresponding As Civil of factors, was a $X these margin X.X%. income operations of operating a with result construction from segment million

X.X% last quarter. up year, We various primarily lower should our to and the effective pretax there, approximately first to projects newer We million, projects, segment next segment quarter projects the Contractors quarter year XX acceleration same expected the California. to X% benefit for favorable higher-margin large quarter points reduced on of XX.X% million. quarter, low-bid of a the expect to effective XX% as and same Building segment given for prior earlier. the tax based of various with earlier. segment quarter. income first up volume first to $XX two anticipated ramp been million, Building Specialty quarter of last compared of on and year's X.X% first tax year's at tax to million, normalized on Interest construction which XXXX, care the this from group of our that year more $X recognize the mentioned in margin loss first projects Ron Civil quarter the $XX We operating that segment's was million mainly first the XX.X% projects health up compared quarter the to $X operating quarter remain to start-up expense have income that $X return compared XXXX, from Contractors operations reflects $X construction to operations basis million various was than prior for that Consequently, both income rate margin the comparable the of an level operating the tax segment's including mentioned Specialty we expense to believe the prior periods due pending electrical was and due performance was rate operating the the compared the improve signaling. compared of to down margin to and X.X% we this was X% in end normally range as year.

$X.XX expect loss the was the Perini the rules. or tax as the XX% attributable by year, the $XX to of rate statutory new first million new diluted be income net net We the quarter project to share to volume. timing-related tax or charge, certain federal impact offset to of around Net XX% year. continue million to to same project well and XX% the attributable the of lower loss company the quarter effective deductions million to decrease for tax per for as $XX.X The rate $X.XX income Tutor diluted compared $XX share our by per impacted the reflecting last due for largely was which

now and and gears sheet balance cash. about shift talk Let's our operating

working the due quarter first accounts a our significant of in capital payable. slightly XXXX, project grew to in Our primarily decrease

quarter, start cost for million as increase Operating apparent is last for a completion. throughout $XX cost as due to increased of billings toward Although again in some actual has it to positions income was incurred this of expect slightly cost, in becoming this as our usage XXXX our and two of in to and due target for these was once of quarter, unbilled unbilled business and the well excess cost quarter larger quarter advanced of committed we and first XXXX. significantly as and usage closer our excess net quarter, Cash normal the to of to billings cash of projects the mentioned last reductions the anticipate of net the in half seasonality this full usage for reducing larger second unbilled billings payments. cost billings. as us year. certain compared our in first usage our that both generation same excess decreased our be certain of We XXXX Despite excess past been meaningful cash additional in cash advance anticipate or remain our million for to in due generation in the have unbilled quarter $XX this for of the on continue year quarter The to cash operating projects years. to in cost cost collections typical year and the the strong timing increase

from at Our million in quarter. XXXX, to million its seasonally March reflecting 'XX, the of compared cash an expected X XX, our as first balance $XXX total of in revolver was increase to at end quarter the $XXX low debt year-end due the

for was of calculated the to XXXX us our trailing X.X below first quarter require be ratio leverage a the of under over Our XXXX. requirements XX-month covenants period X.XX bank that for

Finally, latest assumptions related let some guidance. me discuss our of to our XXXX

we second full Civil growth the revenue Contractors consistent half with anticipate should And the and the particularly still year. year, our expect XXXX for strong the For in we in segments, which revenue Building be segment. of Specialty

in the and XX% Civil the X% both operating For the the of in indicated the margin XX% XXXX, rest operating have past. Building be margin the should be range, we to should segment's segment's in to range, as X.X%

For toward operating I reach our Contractors the by lower the as margin range of X% that just should is end X% mentioned. our XXXX, we that expectation normally Specialty anticipate, segment, the end to of

range previously, to noted EPS are of guidance maintaining for our we XXXX $X.XX. in Ron As the $X.XX

substantially we Keep our our our earnings in the that for quarter a and of results. projects second expect of million quarter back XXXX segments the generation to X legal will toward recognized continue EPS guidance of $X.XX XXXX XXXX related due mind of in to each for $XX settlement. to weighted growth fills that our typical half first We in seasonality EPS second be

effective of As XX% XX% noted rate anticipate an earlier, and XXXX. tax between for still we

million of million. expect XX outstanding, this depreciation expenditures noncash. diluted expense of million estimated Capital amount, expense and and of be million to continue also $XX will shares now million and $XX $XX $XX around We amortization approximately interest at

basis a anticipating will a lower expect that margin will we but of a G&A in G&A in our As the when reminder, be we as are that XXXX XXXX. on basis increase on compared modestly result growth XXXX a to dollar

Also $XX cash to anticipate as approximately years. million will for also interest compared in exceed $XX earlier, XXXX it two million as XXXX non-controlling has net operating should in to to million our that $X We the noted income, in increase past XXXX.

for keep in quarterly in specific the quarter, Although the recorded timing first the impacts of in not the we that, second we positive do turn I the for expect settlement call keep mentioned. project guidance, that legal quarter that just the With Ron, in the over back we of experienced that year, last quarter. mind some that mind you I'll we same questions. provide second large Also to

Ronald Tutor

Gary. Thanks,

the strength of Our continue speak me, together improved we long-term market profitability excuse and that the opportunities gives - our with me to. record continued confidence backlog for current growth

substantial year low-bid work. that the low months think bidder civil first amount is that of by were X awarded enough, high-margin, the evidenced this we was Building and I work in of of interestingly either lump-sum, work or and/or either all this

this experienced So normal billion those was in call we shortfall year significant have awards, low answers. will our to operator as profit and Building to our awards increase backlog substance obtain the results us the $X fact, significantly over our usual put we contract beyond the a of in that, really approximate performance to Specialty. margins had and addition we the that of the stronger bids I I expect expected fortuitous believe Despite more questions that profit quarter, the work backlog. and forth turn should result budgets. mix and this of to enable for continue in to this our the With of year

Operator

comes first of Our question Brent Thielman Instructions] D. of Davidson. line A. [Operator from the

Brent Thielman

in just keep the outlook. full head of obviously, sort here a my that this months better around confidence it keeping picked couple that keeping you is to want even of a more like, since of year? got of the and arbitration want ago? $X.XX. work timing more quarter you this expect down - work just that end the the to backflow drill the because in up Or $X.XX you've little I year ruling backlog Ron, are versus the visibility to schedule is Look, more, I of you didn't some

Ronald Tutor

to this we another in virtually additional starts Metro by six expect in the this to lump-sum shortfall our work the design-build what that, two, the compete profitability. significant civil be we the in work knowledge, year profits, for it's mode civil in I'm where revenue high-margin generally add And Newark, in all that two starts started in spoke unfortunate $X share we rail confident Well, arbitration only shortly other bidder. feel place Angeles $X took were in in of additional and with One, Certainly. the the of was project that And it to but to that L.A. loss, that make in basis. immediately. months cost York, billion that we I are be our billion extremely awards bridge new there thought in tunnel that bidder you also one award of market. shortfall high-margin might in award. be size where one backlog, was that compensated or really get and I to I work traditional award ability to we the To and the, literally, bidder, namely, to our work and were low unexpected whatever Minneapolis the New the April, light continue remaining Los in and what is over immediately; to whatever work buildings will arbitration work up the awarded instead suffered wait

tunnel $XXX phase. second earlier, As a have I we million said

very confident. are We

that. these expect confident behind our beat competition, to billion-plus within We to it, next $X contract continue the do stations where of and contract. we Right we have that mirror both hear Remembering that we significantly we be the week. will prior

of jobs our all and the large So And end to I series of way you a the I'm profitability. to I'm believe We're roll. really that continue telling looking the records break at will on year. very a backlog

Brent Thielman

and Okay. Building. the Newark then I Civil, one part job, one That's - know Ron, it's encouraging. And part

what excess carry reason site, think might of that in On the sees? a there Building that to is typically segment margins

Ronald Tutor

That virtually civil-level the with was across that will competition. a hard bid tell no I has money project you margins board.

Brent Thielman

just your And were on I expectations? of Are those then whether seeing a guess, question Okay. you to the improve? mechanical the results specialty, lastly going performance realm is subsidiaries just within

Ronald Tutor

last disappointing them. I and with what's continue meet were is happening to year, They

far, Some of because we by we've is in has work their biggest All profitability the very work awarded worn and finally out. negative I backlog years and their know from dictate estimates and their high-margin. ago X review margins. them contributor I X the are, and

So from all profitable the major profitable, only extremely are awards, contract Star million they $XXX as it mildly, - put Five not to the $XX these awarded we to take bridge we was was us million wander let not their do WDF. mind for We point. that I'll on bids. essentially, did other contractor, relied any and other from the your any And

with don't work. even to to that marketplace this But make adding anticipated. truly course, and me. So mean to take a we to of high-margin place. think be the execute That, continue I has kind that could does with still to everything not is we have an progress is going as we backlog work as good the eye-opener mean, of our

Operator

from comes KeyBanc of question Sean the Capital Markets. next of Eastman Our line

Sean Eastman

you, just just how some on conditions And way First guys this here? the drawing of I this do your purely just robust you it continuing here. and It's momentum think into one gaining just Clearly, is and how you in? backlog. guys going building lot think just for wanted a one, really next Ron. to is have experience, keep wonder is last? conditions you you are are backlog can high-level your notable long Or you quarter. And TPC Do the on states the been. really in high-level longer to what market thoughts much you I seeing get share

Ronald Tutor

organizations, where of think States York, are Obviously, major offices, Our the of profits and have are of those et influence two New infrastructure cetera. I it's and biggest in biggest two spheres don't we California ending. and America. revenue and the producers major revenue

particularly said significantly, it's industry, last to foreign unfortunately, and like the it competition continues the I've for standing the our as up. of to diminish And ramp syndrome. our think to continues struggled almost have diminish many where previously I ones. And peers man

to an $X,XXX,XXX,XXX course, only light There bidder will to Newark. only increase continue in but cannot we industry On so two market over in has in we XX reflected, or For we of be. The hard competition position its markets. that maintain last million today, New were on XX in roles is $XXX And little those were example, our the bidders. very I years. bid, very our California, our harsh changed pricing and believe is and probably and has been participants the the York one that rail both of rebid,

Sean Eastman

That's it is your inflation, that doesn't on this about? that something rising worry And And construction like a what's discussion more but broadly, cost on if terms Is we've you I does at based not great. seem laid commentary, mean, what you've seen concern, XXXX costs. your this guidance now, more biggest worry And out? of in point just hitting become concern? maybe a

Ronald Tutor

question try components. to in Let all that its me hit complex

the U.S. review matter the where every it of part million it it. in its and inflation, [heavily]. risks with associated over I The review our and and was Anything manage impacts is the on first engage question bids major $XXX Candidly, estimate I no

there's be, it's cetera, our cost We include look and inflation for as don't plywood, just we any attitude large think the scenario a fuel, risk. of the possible buyer at on that inflation lumber we if might market a whether et we very take labor, simply what materials, pressure all in believe products. Our company, fuel, inflationary conditions worst we're labor, remembering

question the think, our work and and Now we've high and biggest we know at and challenge settle we continue greatest understand if our to the aggressive executive biggest I risk? up to prudence bidding exhausted core be margins, is level management that ask you project me, will what slow down we what when sign to in begin As our on have. dictates and sizable

year. but judgment. way referred up, biggest It's I We're may think sometime calls the that we're this not it I've previously. yet, to my in be them signing there

Sean Eastman

And for one last for one quick me Gary.

big settling given guys, settlement, pretty to we remain second reducing what with wanted is you given in this give dispute I how it write-downs? Should quarter May background some half quarter? be to happened on confident that be the be still settlements just and part those that concerned of other expected? to that dispute around given relates could Just just this you you those we see disputes future saw us a unbilled reductions. And ask we'll this what

Gary Smalley

positions Sean, saw is one very in all take They're learned that one lesson us We top independent. counsel all in carefully, mutually determining elsewhere. litigation. one that would help a is and This of There's they're we always in to that is - not Well, anything positions. we this evaluate Look, legal use our every we exclusive. risk thing. there our

we compared one historically, litigation. in we success resolved during and was that that one have. the our in good the record particular expect feel positions. that did about to We think, turn case this But out us in the be book the We everyone Typically, This in the we're apply. take to positions else We we unexpected, was our overall, of things the caught of leader quarter. conservative we believe because are. track that are diligence not to guard. Our we don't industry, we the in think we continue these off care it that type

No litigation projects. fronts how tell of at it that honestly again? feel happen course, you, not are same both would things good the the of progressing at it do in could claims one on So we other couldn't. least, Well, time, it But could. about

Operator

Instructions] the Fisher of Our comes UBS. [Operator next Steven line from question of

Steven Fisher

you first what upcoming the reflect and how when legal in relative they size we've on us seen to follow-up And cases be what in next the arbitration, through walk to potential are can to might quarter? kind just of the resolved? Just

Ronald Tutor

The next that's set with really even insurance significant mediation company manages carriers event is for on we unless August, have a that. the to the postpone believe I SRXX tunnel. insurance our

million that for As you We policy. the benefit think that is $XXX the have coming. insurance million such, we've of. something paid policy $XX as think we know, got a We we

the share that do eminent. from so until to I they deny the common: experience, to will mediation you're steps. companies, insurance what premiums in And claims on year courthouse collect the they any they're space. believe and in trial guide That's set starts obligated is before the up do one that's they I step end for biggest. and that the thing So August. believe And as of my

all Secondly, completion highway Island our more owes district for culpable litigate the to knowledgeable. close-out due contract. we XXXX state involved signed you booked. back I think is stalled turned quarter us, think to They we've should I don't don't our Long existing claim I'm said world, or was took to in X unless in paying of job LIE owe you've paid - all you. it back a effect. the and Long goes love unfortunately, and that Island of in get said, don't job. a we We the front trier again. believe certainly the the of what us, state to personally money around you for fourth went post but the state they where we the claim, and I the to the claim can a and and literally we're the paid you delays genuinely what worked generate care for that is in gave got days. then not would the litigate I entitlements, do you as In And it than got us we I a Albany that, speak,

guess, the process And with I a There one. would that that are New we York School and are New of about confident smaller very York million, million, $XXX that waste lawyers. with closer toward understand, we having and as owe to claims the to Those of in Roosevelt the and took we're with Authority, City So DEP. Jamaica a negotiation on $XXX well number how claims exchanges of tunnels probably over, being the that we entitlements, they the there discussions the million mechanisms $XX various are the where discussions are let's agree. million, CMOX we the to $X those, are way The dollars all money you admitting are of We we're having we are and on job. we and upwards of the work time be station, can large in discussing to all resolve claims we saying Continental all cost owner. XX from kind namely that the of you, station without settlement XXst WDF, must stages resolve claim

push between continue we'll whether this optimism of have a and hope are closure. and a year, all and we to year. not coming is number place, significant that that or Now we we would well-meaning see why December, takes level But those May amount namely, to to this fruition, that bring dollar

we go continuous we've which of one Another of the in course, job completion place. discussions, acceptance of were We're and is, the immediately to took Caltrans, based that negotiation that had all for Shasta on talks Bridge can which in now. so

lot hope be a a discussed year, all in this of end there will let's money that's So And very major positive being by results. the position. of

Steven Fisher

what only execution investors I but helpful, large Newark, hard a project you're the mention in And that know you on airport did And on hard project. fixed-price the on Ron. like bid. nervous the would say lot That's about bidder, that it and riding seems is Northeast? bid to this are you it's

Ronald Tutor

particularly [Yours billion. way. bid exceed $X very this over And it put always profits. truly] we is don't to runs those jobs, let's large our they're fail when Well, just

exceeded XX I probably terminal. all managed thumb difficult built met in billion our $X years, the a than profit. the airport my about think, jobs anyone. range, straightforward terminals Newark. It's they in more There's we nothing if steel under We or last of frame X

way great it see exceed We we I've reason will every step life have our I myself to shouldn't profitability. only margin writing personally we it. yours me, to to there I excellent And pleased. on that We're the don't, will If be because And meet got blame of cost. very any can't we or see be do. a truly for the of

Steven Fisher

looked Okay. Gary, loss I happened And of that's a It clean-ups had just for a Perini. Tutor the there? feel quick here. especially equipment. like uncommon on What couple sale like you of

Gary Smalley

we We and can had get. venture the - and it some was [indiscernible]. some sold anyway so it equipment, a we - the of there was sold joint But price was that best equipment

that loss, but huge experience. wasn't right, a it is - something normally it So we you're don't

Ronald Tutor

XX the equipment just on last our lose In years, we experiences over don't sales.

However, bears what point, on always joint that job. sole in When that as you I'm afraid we're venture that enough job equipment. of write-off, our require whatever it. have partners at in you put you Frontier-Kemper to liquidate owner And the the majority you money particular that's that market control don't a means on and and the sell happened the the

Steven Fisher

it's that precisely. working timing? in But I then quarter? positive pinpoint And know it more it. turned that is Got second to Gary, year has capital, the later the Or hard in

Gary Smalley

just year, we excess, won it's a as just I and also and we opportunities we these in to Steve, then of expect of amount cost Newark being think such more with - expect in excess other some to later such that the that jobs the the that large some these bid on lump-sum the in billings billings on. get

We expect those to allow us to advance-build those projects.

to shortly up, soon away, to expect right others as the thereafter, ramp that turn. Newark So those as we start

second, start quarter, a there. to see late movement you'll I third So maybe early think

Operator

for conference management no the of conference. to like turn I to further closing questions would portion are There back the of now over audio the remarks.

Ronald Tutor

joining Thank answer were we Hopefully, you. you, onward your upward. to able everyone, for and questions, we us. move and Thank

Operator

today's for concludes your participation. Thank you conference. This

disconnect your at may your this rest day. of You Have time. lines wonderful a

Tutor Perini (TPC) 9 May 182018 Q1 Earnings call transcript