TPC - Earnings call transcript Q3 2018 | Tutor Perini Corporation

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Operator

Good day, ladies and gentlemen, and welcome to the Tutor Perini Corporation Third Quarter 2018 Earnings Conference Call. My name is Rob, and I will be your coordinator for today. At this time, all participants are in a listen-only mode.

Following managements prepared remarks we will be opening the call for question-and-answer.

As a reminder, this conference call is being recorded for replay purposes. now Mr. conference will host to I today for Instructions] turn over the your [Operator Vice of Casado, Jorge President Investor Relations. Please proceed.

Jorge Casado

Hello, for and your participation. all thank you

and President Joining Smalley, today are Tutor, and us Ronald Executive CFO. and CEO; Vice Chairman Gary

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

Ronald Tutor

Thank Good for and afternoon, joining us. should thank I you, say morning, you Jorge. good or

easements, project results Rail and County. progress the the agency the revenue delays by fourth as High-Speed caused Terminal X consistent share High-Speed meaningfully as certain again, for Iowa production these X, Purple the and below for with stations, to, Fresno Lines per earnings in ramps CQXX XXXX, including rebuild improved with primarily agreed we'll third field will I quarter so fact quarter. that operating our the contribute and slower-than-expected should reached the expect significantly delays on that we're continued project us expectations be due in that Our I-XX more California and can current force, in its their results revenue getting impact project us, our behind build finally up. came X confirm once right-of-ways the in that That We management. Newark continue and they Bridge through base. the to Rail, largely executed by year-end, tunneling and commitments And and projects, see I've Airport again, we

High-Speed contract was set in with approximately to The value billion the adjusted is to $XXX of next Rail approximately at currently bill contract instance, XXXX. of million two X,XXX,XXX,XXX For original the March over years. remaining complete $X

of So backlog double-digit will XX% up to the of third compared essentially, To more the we project quarter contract two positive, with the billion with growth, remaining revenue the at years to end, backlog quarter almost the original another run last total had year. at $X.X bill. quarter year-over-year

growth be ratio New backlog with businesses explode, at U.S. for to three projects segments, very group Civil million years. reflected through our Our which notification August awaiting who year-to-date the favorable Rail, Communications-Based further submitted the the as is for low of was well our strengthening of were billion this York the which potential infrastructure York the the as Line bidder funding City project million and the Authority. on economy a we its in project, next of building the City $XXX $X.X X backlog, across Minneapolis three. Sletten all Transit healthy $X.X California Light demand our over Line joint continues Southwest for continuing the broad-based provide is an A only I of federal our $XXX bid on awaiting on are quarter and backlog that in release, to our record week, the Setting which And on which the sitting Metropolitan the later. we Culver further driven low details across bidder in will and is volume to significant team of Purple reminder market Earlier Rudolph segment, is as various for award all strong XXXX. new New continues awards was to very it a billion, the by as the several waiting in venture to trend are X.XX funding by increases end and obvious Train long-term as of aside book-to-burn we well continues over be Control and

fourth mechanical In million addition, of WDF, of our in the new expects in something add range project their to awards backlog. to $XXX New the subsidiary, York quarter City to contract book

Los in Some Anderson, we facility at million very selective facility of the industrial Black subsidiary, and County for Roy expansion we remain Perini Lauderdale million that Building $XX Project third include and Guam the and million bidding be Angeles Airport $XX continue project in in and larger in for opportunities for million Mississippi Corporation. a Angeles bidding. to significant Tutor our Frontier-Kemper, booked in our maintenance for the Construction, Los project new quarter and $XXX tunnel a awards the aircraft Fort $XX disciplined

Our owners pursuit focused are larger opportunities. efforts supporting complex with projects on

Hudson of Some civil Ana Portal in include project. Transit million billion the Maryland, phases Swing Control replacement in Bridge of and for Angeles West bids Communication-Based million built, Xth X we $X Bridge Harry Jersey, $XXX in billion Avenue Yards, the Los Train the line $XXX Nice opportunities Authority, Santa business New the $X.X larger $XXX first Metropolitan which Amtrak our our million the Tunnel which midyear XXXX, the replacement at Phase two

University potential York East of projects million project and well gaming bids Garage $XXX District Friday, as In The November, XX the million million JFK at November. project a runway the the hospital $XXX of the California. now addition, on segment's $XXX million on the New $XXX Coast include and educational building of $XXX million City Sanitation a X at on larger and as opportunities hospitality Table gaming Building Mountain and a

$X In awards in with the has we've of the Vancouver. New In our on addition, out for are In million Civil Kemano progressing Building we Terminal contract CMXXX and our X New will building than New billion Transit $X.X discuss and the of billion that New active third project. I process projects Frontier-Kemper included in on York Airport a California, or as pending of Northeast the project CQXX north in a office, active next – Authority, are their City and more beginning the $XXX building results, region, in ground that York the hospitality our most building a In contract of Also, on selected bidding to more civil high-speed we are Jersey. various been renovation the Jersey. in segment segment. some X the contributed quarter both significant well negotiations. in British has been breaking negotiations gaming and Columbia, Tunnel of project rail Newark work as

Lunda and to the that will with completion I-XX, project commencing on XXXX end of rail, be South XXXX, awaits have Midwest, of finally which XXXX Bridge continues hopefully on an Minneapolis quarter of is first to In final the the and projected the work XXXX award XXXX. accepted of substantially the on work by DOT Washington tunnel in SRXX in the is as project the and finally, open And complete Seattle, earlier, in into and easements and of in achieved should deferred its been going performed and probably XXXX, the significant release delays out XXXX. significantly, done XXXX we ramp As where in The in to the complete quarter, and expecting owner work XXXX up of forward quarter complete I imminent. pointed all adequate expected the first has XXXX. in first the to spite highway XXXX, the right-of-ways January and through early part our to of traffic been with between should

in as as for and care contributors work El the two at Village in the the Miramar Terminal, the California, our more Mixed-Use Five Center completion projects other Camino Pacific Palisades and health office Montecito, major Beach Health. incidentally mechanical and the in building third WDF. to Silicon subsidiaries, Medical For – course, California which of concludes in Cancer segment, Building subcontracted in quarter million of of for Southern Newark the California, integrated project two billion Rosewood the $X.X Kaiser technology medical contributors campus Electric electrical Other Airport were wholly-owned than project Valley, Hospital, new aforementioned Building and significant includes a include Star $XXX Sutter Precision UCSF well project the

While to newer, and heavily project due the particularly decline revenue to the as compared as largely notable year, XXXX. is in differences experienced a quarter Specialty of third commence was anticipated legacy the a segment have same timing larger projects in completed volume work to high-margin it Contractors or various quarter last complete substantially

speak me let unbilled claims. to Now and receivables our

we would Shasta pending with a have very California hope November out resolve have payment We that XX November project XX that will where follow. mediation, dispute. have commitment to strong – Bridge agreed mediation of on We to evidenced they the an a the DOT that resolve with will

turn we Transit subway remainder of very of are projecting a St. request to with namely now in to agreed Furthermore, guidance board Based to by earnings in for $X.XX close dispute Croix range means as expected XXXX New the on the over the change on on Minnesota, bridge In current Gary. our significant for the XXXX, issues of in of review Authority the results settlement are of per CMXXX crossing December. and of our the With are we those this call that with of quarter an addition, we for I'll midst we're that, date Frontier-Kemper resolving – project. fourth as diluted settlement and very filed $X.XX. expectations in lowering year, a share to the York a the

Gary Smalley

to factor technology a our Thank California remarks and some revenue from due not you, execution was the quarter many discuss last did projects on projects balance as single compared then The offset year. of contributing third or billion was I completion. office about The billion quarter new was our in of $X.X reduction decrease completed afternoon, I'll nearing project in in from guidance. calls. to significant overall we of that results, that flow provide cash sheet, Revenue third the for an decline project revenue $X.X Ron, third prior first quarter our activities the everyone. good the will most have large have times reduced completion to fully spoken brief

Civil, mentioned, and continuing segment was a third in year, an Civil with delays Building the $XX same with Contractors due operations the the and last to the on project compared was quarter lower Civil construction due as X.X%. high-speed Ron third Kemano electrical the was the decline quarter the due project, Contractors overall lower quarter of activities segment the Bridge Income $XXX compared to nearing third X% year New last on is segment The to million, on revenue G&A the revenues to that $XX respectively, for down was reduced segment line was Verrazano in compared down on and up. Columbia of and that Specialty I were last segments. revenue reduced addition, up Building compared expenses. Segment to Tunnel lower volume revenue principally XXXX. in operating wrapping quarter, revenue of million quarter. up operations just Specialty project quarter mainly primarily construction York the quarter projects the reduced million, completion. project, for revenue rail X% which result X% from the increased project third office margin mentioned. by of third for was and X% million, year $XXX are income compensation-related the $XXX of the was York, third million equivalent completed million, technology $XX partially in decrease because the from to the higher in for New offset on activities quarter certain activities British to Newark was Airport of In

X% year's been was slightly lower slightly margin third we previously, segment. rate the to level was quarter to the rate Tax us. of technology The also the versus segment completed operations was office operating was operating reflecting compared third margin third awarded last year. than expectations of to in quarter, $X year, from same third operating was in expense $XX reported $XX Specialty effective opportunities lower segment contributions segment's gradually $X been quarter Contractors margins comparable for Building at quarter that the for year. resulted is for with last million X.X% in quarter. this of which have construction and better the million and we've The increase we for the the that As the pointing million, expense which lower XX.X% of we acceptable we and last quarter construction $X largely to range this expect last the quarter volumes. year, million X.X% same tax project the compared profit XX.X% our year's prior the the last quarter. million to income $XX decrease discussed recently due reflects compared Newark, quarter third X% X.X% in about million, income margin for to end before of million, margins of and see Interest the for X.X% of was have This from operations $XX expense tax an an of with the year. quarter third effective as to tax for from

third compared to year. of third XX% diluted quarter our $X.XX loss million federal year certain XX% let's our $X.XX deductions. will rate, Shifting that be Tutor for XX%, around Net the by for was operating the gears, attributable diluted impact income million Perini $XX reflecting or sheet tax offset share share the the and expect per for rate cash. the of of discuss $XX statutory to per to We effective quarter or full the last tax balance

because unbilled capital in Our the as billings costs in working receivables. course, third accounts our to both unbilled receivable of costs slightly what an or increase in of quarter, and refer principally, of project excess we, grew of

of With largely billings. and billings these advanced increase by with in increases our offset an excess cost

still larger unbilled declined increase this of as we our certain in on was, that unbilled toward of the quarter of some of same We six our Although XXXX in and was for key costs still expect million of completion. cash as dates to focused year. $XX in generation quarter advanced our and third help these positions generated and have the unbilled larger our excess reducing quarter be on to costs to incurred to quarters both million Ron advance the income cash remain targeting increased, in on fourth billings net in XXXX operating some noted, cash strong with of consecutive that costs increase our hope XXXX projects it year a $XX to the XXXX. projects unbilled due due closer again, regard. we costs, have are last of flow the compared have will We horizon operating in for The in close costs We is past this quarter net in as the actual have billings. excess additional

It million September reflecting Our XXXX, to total XX, the at XXXX, from year-end. was debt in $XXX same million $XXX as third as end less end of should at of balance zero increase at of the be debt than compared of year. its total $XX last quarter revolver an the end million our that of our the of XXXX quarter was the noted

fourth and related assumptions our for the guidance. segment's the be normal Now of range Civil quarter to margin Civil be XXXX remain the for review will margin operating XXXX. XXXX the if that in operating let or will segment's XX% better. should anticipate margin in range, of not segment's We latest me in that revised XXXX The the this X% higher, Building XXXX both to XX% and

expected to For but in X% XXXX. that improve Specialty segment, lower margin range end the the should X% the is continue Contractors at the to believe of near-term, operating the in we

rate XXXX. mentioned, of XX% As an to we I effective earlier, for anticipate tax XX%

million million XXXX be be being to shares for due $XX million $XX civil are will Capital Interest expenditures to expect expected of now to year equipment for around also now certain to this the about there million purchases amount approximately expense We approximately non-cash. for of million newer XX.X that be is projects. diluted $XX with $XX estimated outstanding.

and I the now purchases As million. fully have are expense said $XX large funded in past, Depreciation by equipment these projects. estimated is the at amortization

$XX to will or was our the our and now non-controlling be that, flat finally, year be we in expect that G&A year. year, over will turn slightly compared With either back lower to XXXX you. $XX it call that G&A last We Ron, this approximately will margin last million And than dollars I'll anticipate million. that to modestly interest be

Ronald Tutor

and Gary, with guidance missed our while earnings Thanks, for we disappointed the year. certainly are the reduced

far by backlog of is the disappointment of the we projects enormity the outweighed quality Our have. and that

that frankly, are before the and pending, to beyond. awards With of overwhelming the look prospects level as we XXXX us, and

this Tutor future. view for me Let how and we be particularly the about this story the is long-term really granular as Perini

First, have and it prior explosion our backlog bidding there capacity since there fewer has both, shortage the project our reason on will able extraordinary was level that plus capability this jobs no on see backlog significant continue calls, human been executive in record in billion at end both and engineering the year, number we is Moreover, these even to by reduction the why indicated not and of execute of growing. another capital the companies, and the and backlog to and due we be and to of of the a our $X growth this On the levels. projects. management at a project ceiling I project expect

team our resumes join and challenge, continues from be who issue experienced an want the now enjoyed people, we growth in prospects number our of with best capable this While are as finding self a are unprecedented they the inundated Tutor to company. believe Perini to

backlog our our any earlier increased interview, into our growth our are change limits earning and Said they continue stated. I I people and abated, I people continue challenges As to continue aboard, way allow that that attitude which our we that, them to my can previous us another beyond bring begin will contemplated. beyond integrate ceiling be that and these company, to have and can

are a award on competition our considerably margins that terms, backlog where in in to increase new our margin project year now continues backlog ago. over higher are already we continuing the last year the In healthy margins simple the on than to the average, diminish. constituted industry an Secondly,

So years by an and continuing at and been been growth and I with have our there increase for XX we've become determined will projects in stands to cannot work significant for the starting XXXX exploding in be for accelerated a such, that major our income, work margins this reason as that with and in of higher-margin consistent period over strengthening unprecedented that, where years replaced old the than has earnings is burns the it of when we industry. pleased we Therefore, new and off its earnings time business you. during formula exploding I'll with Thank the have combine With a growth only over pace, as we enhanced recall operating as pipeline share. we and operators in brighter call continuing for a the our is future believe, questions. resources, today. our And human look our industry to to I'm forward. it extremely of such, as turn per

Operator

you. Thank

now D.A. [Operator First session. the will question Please Davidson. be line of conducting with We your Brent from Thielman comes a Instructions] question. question-and-answer proceed with

Brent Thielman

Thanks. afternoon. Great. Good

Ronald Tutor

afternoon. Good

Brent Thielman

of up fall trying I in... as had. be high-speed this the permitting just work level you've projects of to with same or have awarded other issues, starts to start Ron, to guess, did jobs the large I'm the any been of comfortable the some other sort the

Ronald Tutor

the we've a all award that their within souls, is to months. four-year the us and bid XX acquired gave awards. prior right-of-ways contract would All project, easements on ever acquired to and projects, the a job they the easements right-of-way had that acquire contract they where not at they XX the first right-of-ways schedule only bless time other and the This

and probably right-of-way we about sit and for easements. the waiting XX%. to we're And XX% still we're later, at five Here years

paying us, from overcome appears that the will the to an between of those continued right-of-way during issue give project We and XXXX it damaging I right-of-way they the issues, no, right-of-way but the bid overcome December last in we got very no loss revenue to be shifts is, XXXX bid we're half and shifted two profits where that an forward. over particularly to they and revenue end and matter those have work it, earning XXXX how can't and of million they stated good my it To And years could doubles, contract time. of years not is additional of the on today news in projects future. into finalize year. XXXX you harangues, when costs, lose because two and venture periods it idea our it and they shifted XXXX of So this is the But there on other earnings and $XXX no these period you of that of based January. each very at meetings joint with two been couldn't in revenue are, good simply overcome when course, and years, of out from of didn't of are easements and our to the end years The you how will reluctant just periods XXXX. a shifted earnings and time good us the the all kind it

Brent Thielman

the And get flow year? some you helpful. for then cash of talked that's Or you outlook couple of about a key there it? pieces to to the to are the sort of the need collections Okay, do moving

Gary Smalley

have get is collections cash there Gary. to certainly do in these what we if not flow but to some is. our far talked would large target this Ron We we that No, improved we get need of achieve order No, don't. about,

Brent Thielman

guess, the on then, for I line costs the unbilled are update to? attached jobs, increases and time Okay, just large any those to completion lastly,

Ronald Tutor

Department Shasta of she'd reach got from Director of in with settlement us. like finally job The Transportation global a California to We is stating a writing, letter the over. the

us the that XX. we'll claim. mediation demand know on is the Tuesday don't very entitled, the that just they it's We any on recognize, over have And give Caltrans that we're I us question money they make of there a significant to matter whole. Thursday think we with do

bridge a or orders, And believe that have potentially change for will in conclusion final we to but that we're on next not their of adjudicated entitled more a is on agreed they've $XX been million set midst to job $XX Tutor a that significant And very in come the value. set very large Minneapolis on Perini. a yet of issues changes of conclusion that million is addition, In week. this we

somewhere addition to New the the review a In findings for the agreed of board that, midst we we're to us. one agreed is think the won't very that have both of And find But transit and in CMXXX another the which of our no by us project, review York disputes on by which abide parties large get disputes probably of board. million, dent to chance significant claims, there's we big they will to pushed settled back next a next of we've million although year. year. $X million and claims, are of of in April March end number mission very they done $X number these a a a it, to don't conclusion be on Meanwhile, a much $X between by of and the put and

Gary Smalley

A then the or been I causing add, that up to further should lot growth already projects be are that of in we've our question. growth just costs, if declining because this up. And the your could have wrapped unbilled this wrapping experienced

contributors to less So of that those and they're increase. less

Brent Thielman

you. Thank it. Got

Operator

the from B. of comes with question next The Please proceed your Riley Alex questions. FBR. Rygiel with line

Alexander Rygiel

Good evening, gentlemen.

Ronald Tutor

Hi Alex.

Alexander Rygiel

couple questions. a Ron, of

of P&L Airport coming the And Newark talk the about of Line First, Purple award? line the for can through you then time project? on timing us revenue the the update

Ronald Tutor

although Sure. don't Line did the venture I awarded Tutor-Saliba X tunnels with you a We we recall. we're joint to inform at in-house million $XXX Purple Frontier-Kemper.

Monday. week X a Purple for interview are going We're We Line $X,XXX,XXX,XXX now stations. our from awaiting

Rail waiting fund our the are And the ongoing. Light in the federal share. bidders. and pretty simply wait We of rest prior optimistic see, but that million optimistic the are on But Line X about their to were agree awards And other and should Purple learn Christmas $XXX very stations. we for to government that. we're have is straightforward two there We'll Minneapolis to to a

Alexander Rygiel

of And then project? airport the timeline York the New

Ronald Tutor

me. Excuse

steel erection August We September New York started, by for scheduled we're end airport, in We commenced the concourse the completion, or elected foundations. a on major north believe we've the we're steel of job summer mode, November. the a at end fully And be the is of year. next pouring XXXX. of will

Alexander Rygiel

for the you in Gary, time quarter to based can to the without fourth fourth revenue uptick margin help quarter. implied appreciate big the in of the I'm quarter hard outlook getting a a us upon the EPS back contribution kind the quarter? third pretty the fourth from directionally And revenue having guidance in

So in is lot so, major And increase you contributors a that the of that quarter? the revenue to to correct going if is that through fourth can two or run one increase?

Ronald Tutor

is This Ron.

some same contributors biggest high-speed experienced the rail, results. of One we've where delayed is positive that

contributing significant the with all very It's Line to appropriate which are on units, significant but pop margins in probably, scale think, Rail Newark, I the fourth supportive two one and Excavation are a Purple the at and X, all is ones most Another We of the are started High-Speed quarter. steel deliveries. big California a of Purple the that Line, revenues that generating excavation. number just we're were already across November. in major

Alexander Rygiel

much. Thank you very

Operator

you. Thank

the proceed is with Please Afzal question. next your Our question from with Tahira KeyBanc. line of

Tahira Afzal

as Hi at folks. you list Ron, seen? that Or you've if cautious your sort issues clean more very forward? on it away? projects is right-of-way similar are Or out you list, a have look going of prospect you staying are

Ronald Tutor

take another I project Everything that's has advance. not very issues. do sites, would in in has to XXX we're months, XX on and right-of-way year, done it in owners different and reluctant and right-of-way right-of-way finish, says be the The we're procured gives looking XX long, no have miles they're acquisitions to us the schedule start now the fifth yet. that they'll at

suicide. about the although get XXXX XXXX. that's and job XXXX and into the damages, XXXX will taking fair very think failure. would is you has make over formula you and public anticipated paying think a our I make the can for in world still profits owner moving Now In for we its that how And been paid money

Tahira Afzal

makes element power terms about there decision you And whether perhaps, commentary. be what forward, your alluding Can shrinking as this I sense. That going pull your on that implies back? Skanska's the announcement risk pretty what for U.S. to really going – go similar a prepared And you forward. in could Sorry. companies in and talk you're that Obviously, really big big forward? guess, pricing of other

Ronald Tutor

be And risks bid simply a share billion than for will they taken it's of only build our really as civil and difficulties U.S. we is those operation. their cease any as States has $X think but design bidding are what the market but billion-dollar country. And specific, places, apparent, be work. of and large way all position in least, the They're next dramatically they've billion, not such, know enjoy, There not years, plus performing jobs. United billion in long-term, over good fairly Swedish-owned contractors such and that of we $X about at every in back. Well, pulled on going our they three very very to successfully we think, They're to I announcements, we large peers, we in the day, more take of think, $X isn't other many market. capable very the a to had $X these best in factor PX. period see They've that Skanska

post restricted And those, major all of that trying of billions of the a than U.S. over competitors, foreign looking you one leaves other So than each dollars projects marketplace, remember, of worse which to have tens build financial to very in order is guarantees. our build country. to other, the and

to of the can If surety matter work let's that's the and work. the a from nature, requires size financial prequalify not restrictive enough, guarantees just not with saying, a you and it's It were of step-up generate do similar big and that enough. So companies. you

Construction same Skanska So was the of the the minute, well. where built. those competition it opted example as last do the be reiterate, had not prequalified, a bad. of Newark us and obviously, at of a to and the literally only marketplace advertised $X,XXX,XXX,XXX, bidder is And to the restricted and such bidder well should project is, very the at very bid Again, heavily prequalified and is as would opted terminal Turner project we the a only company, the we're we because that German I minute Company, classic remain to subsidiary as very last on not that awarded that were

margin So bodes well us us in those of very significantly I for can't things for see don't think, that get I discipline. remain. better And how

Tahira Afzal

as is? Got the out any and for to step Ron. Travelers, there? can LaGuardia current Or have frustrated contractors help chance just it, you the let us perform project you And

Ronald Tutor

LaGuardia. financial regularly far We to we their we're than port the really building Lead, than we were lead. lead better their but talk port $XXX the million low Newark. them bidder And less according gave And terms Skanska, with PX on or million financial were our because the $XXX

their sigh would relief, breathe own such they you So they matter when don't well are that's be of were of a in schedule there. the done. a you awarded get traumatic until tell I a think it it you always from had you I almost and did, And the But you it's job, and have angry contract, to very unfortunately, because to always but everything what nightmare jobs are business you'd knew behind no and schedule. that's you that believe difficult one be travelers got And a experiencing an those of I public. keep that I'll all beginning build, it, would

Tahira Afzal

for Thank time. you your

Ronald Tutor

all. at Not

Operator

line from next Please Instructions] question. UBS. question coming with Steven Fisher of the proceed [Operator The will your with be

Steven Fisher

Good guys. Hi afternoon.

Ronald Tutor

Steven. Hi

Steven Fisher

margins I Or clarify XX%. quarter? just Was this Can solely it why Gary, for to single-digits they a related fourth to there? you Civil count said high-speed underutilization bounce things Hi. the down just were back XX% really rail? other were the know quarter would the you in their

Gary Smalley

That's right? it said a when X.X%, big I expect And we look, end part that XX%, being down, XX% the it, And higher them of of Steve. was range. to

we're would trying telling also We but hope you. with range, what we're exceed conservative to to that be

fourth margins should think healthy be quarter we very in So Civil.

Steven Fisher

come to collect think, then million. of a in to of I by amount. at frame this down investors the quite nearly costs that of down see you'd And like want really I really get need it to And year level excess the was, start $XXX the Okay. here. collections mean, would billings to just to potential just the even bigger

can of are something next half that it, Or two collect XXXX? sort this second be the call three XXXX I that million is of the you quarters? chances thinking into and magnitude, the So couple within what $XXX should of guess, we to that more about for

Ronald Tutor

of dent it by XXXX. quarter the of before the in second end We make the kind expect to – in that

Steven Fisher

just Okay. And of... terms in

Ronald Tutor

global in they're the three to us. I you know says, meet want I letter We immediately reach Well want to across, our until our a tell take approval that the trying see "I going lead they the We owe and weeks." we we to uncertainty. will I from to of pay agency, entire what realistic. board want a they But to and me, Director that, since always one of be and claim, believe owners, to say money. that's it know you I'm get our they it for know settlement.

Steven Fisher

it. know don't much changes I need perspective? make but new the there? Or then, covenant where from a for earnings I you Gary, you Any the revised outlook Got leave have this, how you that does to cover if missed do there? year And

Gary Smalley

covenants. Steve, were a quarter. last No, with the we're close fine We little

forward. have We quarter. clearance And don't we lot a any more problem this foresee going

Steven Fisher

Can there? the numbers you us just gives

Gary Smalley

me what to a see at next what the they second the do But Give cue. quarter. you out. look we You in the see, for we I are it you months XX locate going tell is

at after we're yes, were And the quarter. X.X to continue have where we provide – we were at at, And this to leverage even this improve with point. – to that after we auditors. ratio, respect We X.XX to we the

be We X.X. less have than to

Steven Fisher

providing a about guidance, time year a next next more able have year's is that control. question Okay. this would obviously, be know conservative we in earnings guys Ron, know lastly, just this mainly such And the ago, reductions, to then and of a be of lot And, we'll nevertheless... an aiming you call, we your ask I But I the you're to guidance guidance. the out avoid these typically of process because guidance. be And

Ronald Tutor

Still the same.

Steven Fisher

things control? things do process of How your that – going factor are how year experience out into you of your another forward having with do of these you had types now

Ronald Tutor

but process company, in other very earnings fact, a construction such million EPS. are, like per ours your for till decapitates earnings the private a question. world which $XXX difficult sector, year, company public That's project project wouldn't good us for because next in we if a just your significantly, any it for a months, you up revenue in of kill earnings as is deferred world our going the care delaying It year, share defers thing a public in if because access are and the an eight the you simple a six,

I day back capital, and settlements If will. but I'm telling which if I every that have truth margins hedge levels and constant thing can small it point backlogs, significantly and major put delays, credibility it's only take collections a do, I you a question is allowing it higher record and to to for in it's safe we more that way here because either higher backlog, the got way allowing it the yet for at the which is there, I and anguish we then should be know haircuts I of I'm I'm And increasing all because So we our a than mind-boggling earnings I and my face, margins. such do, to and

say, it do challenging, better something job it's Let's simply got gets very a we of. just to but

Gary Smalley

at. We've get spoken a meeting. or on with to about And it certainly of something the we'll trying out it are describe this and year. Board park about very you It's at hopefully, We've it that – want lot. to however, head are of the or spoken we plan and we recently strategic internally aware for to next a our get better

Steven Fisher

guys. End Great. Thanks of Q&A

Operator

and Thank Tutor have would the the for session. end like you. turn to back we to gentlemen, of reached I Ladies call closing remarks. question-and-answer Ron the

Ronald Tutor

for Thank the time, to see you. we'll Until you, us. next everyone listening

Operator

you. Thank gentlemen, and concludes today's Ladies conference. this

your at lines your and thank disconnect time, this participation. may for we You you

Tutor Perini (TPC) 10 Nov 182018 Q3 Earnings call transcript