TPC - Earnings call transcript Q4 2018 | Tutor Perini Corporation

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Operator

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

Following management’s prepared remarks, we will be opening the call for a question-and-answer session.

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

Jorge Casado

With you and Chairman and Gary President thank everyone, Ronald Vice CEO; Hello, Executive CFO. on call are us joining and the and us Smalley, for Tutor, today.

and an Before we we will current be risk forward-looking making I of will differ actual reflects assessment that results management’s is everyone materially. discuss remind our information. existing our that trends statements, inherent results, call during There which could today’s

factors You law. in can over information, future find turn result With that are assumes our by Ronald could otherwise, which forward-looking or will the XX-K, call events to contribute disclosures filing differences a than about statements such obligation the The as as required company risk that no of to new we to other I today. potentially said, our update whether Tutor.

Ronald Tutor

and joining in volume the operating book awards segment Jorge. new segments, billion. of year-over-year awards us new performance new margins XX% improved of thank strong our enabled Thanks quarter a grow for burn fourth setting very particularly and new you entire to across by of that delivered backlog afternoon us. excellent Specialty quarter to highlighted by for awards of the ratio billion Good added record all the results fourth large Further We Contractors resulting of a $X $X.X we in of X.XX. total a in billion and $X.X year a

the Saudi million million project, all three in electrical $XXX and fourth facility quarter in Minneapolis the Southwest the Arabia. air various in of York broad California, projects of segments particular for military $XXX million growth technology funding million across New driven Rail force backlog a project $XXX based strong in mechanical Our and Light and City was $XXX in for by was

The as to of the our cash over of for operating XXXX. in quarter generated largest Tunnels Project to expect we in approval Purple X quarter. we be $XX last which In excellent, during addition, goes of fourth tomorrow we $X.X identified The outlook Section connects growth fact million final Purple and Stations awards awarded which billion already year first the backlog is continued the solid Line of in and Line will to the billion for is Project booking the these $X.X X XXXX which routinely processed. received Board that

of level of Civil In addition, works large we pipeline projects. the demand a sustained high in see

upon to increased Our provides to years. growing foundation next backlog the deliver revenue five which three the over years and I expect earnings growth

We and disciplined continue to selective our bidding in be approach.

previously, then the have hitting ability is those selectively are the have projects choosing that there computation at limited works said demand, As bid we significantly us major I Civil opportunity to projects pipeline, the so best the succeed. more best, physical are give we

facing the the these have the to industry said have and and and these projects phenomenon it’s an successfully the successfully projects. companies of are track I that undertake there Civil resources with we few previously As frankly, executing record experience reputation both interesting so quite works today

$X.X Both New Control in Project Avenue one for project Manhattan, -- $XXX $XXX $XXX the pursue. next Civil I we a Xth infrastructure days They Portal projects we There City, bids that $XXX be Further, in are people million bus were one our Culver four in New the million XXXX. selective is $X.X $X.X outweigh million the also billion in is be enough over at in New large committing a the feeder PX undertake Air project -- and are segments New antiquated Expressway Air LaGuardia the Since other replacement York Civil are have Mayor a of called $XX believe the by Line bidding continues are XX will at Las opportunities Airglades another the years. Center of Perishable Vegas take York. New were that $X the in and next Complex earlier and The billion City $XXX and transit billion end Angeles there healthcare street $X.X awarded and Authority part entire Los will are convention of We hit will movers. Cargo City those and to recently to a upcoming the in far capacity, Swing the modify billion, include committed New to York York airport works York, two place of New the to Port systems downtown the Jersey Bridge facility projects, not to a each $X.X refurbishment valued signal Train program They that billion in Transit Brooklyn-Queens Angeles, depot $XXX we billion at larger system. lines to Miami. a those two million were similar the California. in York that million Jersey cargo Building we opportunity billion each will year. major the collectively we our a the this of If are bid their throughout organization New within apprised Civic in million called center Los

pipeline hospitality projects and our is awards has to again robust three the Building of backlog over electrical and pending projects. is Resort two months gaming the segment the XXXX, Choctaw of a mechanical $XXX that of in expect million next importantly, $X and we the other point Contractors bidding in two Casino including the into capacities enter segment process arena. of to billion and that bidding More months in already Specialty in and expansion testing

fourth to provide quarter will results contributed beginning the I on more segment. our Civil that Next with significant some the details projects

work ramp begin by will the the the continue with X the On pit start in In up advance Kemano beginning year. our Line commencing tunnel City, Beverly after boring Section it’s tunneling Purple Angeles, we commencing Century tunnel the Los British of assemblies this tunnel in the machine followed in project. Frontier-Kemper of Station is West we second relocation are Hills Coast, completed launch we of construction with on later Columbia Hills January. work in the In Beverly utilities of Wilshire in on progressing to the

York as that a $X.X which the include Precision Cancer Illinois, well. and significant technology high targeted contributors Five York Medical also New Newark between of of projects this owner One Airport and Midwest work years. Electric project is other and the the over Medical don’t been to and Building essentially mechanical Enterprises, higher Subway rail. the tunnel. the Hold year San billion New in volume Authority north Hotel summer. performed SRXX well project included we traffic starting I-XX CMOX Seattle In segment in most fourth half We newer the $X.X that on and XXXX. that with Beach first work One CQXX work progress pieces and California speed in transit still completed In Rosewood Francisco exceeding light active it their refer at California, using WDF and has Bridge the One Port campus quarter are backlog been many continues substantially University is the Minneapolis San Iowa in Star turned New project’s also Central Mechanical Francisco the and and New margin Newark construction Terminal the projects of next substantial the Airport period The to of east work contributing Contractor anticipating of project. and Miramar on has and billion for course Airport work a for electrical the the contracts for by Especially with $XXX has increasing Newark being In as the project the completed of we to our million last that is largest Caruso under of on busy tunnel Terminal rail Center. Recall volume remain Terminal the buildings advancing over on completion of the Jersey which York its with active a Work for on is

they have for segment million our XXX of revenue in positioning double-digit and quarter, fourth In the new added addition, in electrical XXXX. mechanical growth projects

provide with and Now let receivables our me you a update unbilled brief on claims.

significant continue We on three of although, in claims, negotiations adequate. two not have major them, on received offers

segments, half have conclusion to margin improvements we a establishing hope special with with of in XXXX to segments. believe operating we talk, these the negotiations anticipate range and those XX in days, the noteworthy settle to all continue bring and and the improvement we any revenue over been able to in Civil our the we backlog have the that and current strong in -- higher the yet. $X.XX. and double-digit in next guidance We we Building not on growth our per the forecast earnings of expected margin margins for to but potential to are segment year. progress share conclude Overall, continued Specialty Based across Contractors the $X We next --

will have results. the our quarter. year toward As weighted to first suffered financial the country the the call in the I ‘XX particularly With second the to earnings XXXX, that half due will Gary turn in to we present we significantly of weather in expect Smalley that, the be extreme over across

Gary Smalley

slightly again $X.X percentage timing $XXX annual prior G&A due Contractors fourth XX.X%, Civil last by XXXX. our Good down I cash did million, XXXX new that after year, from of mainly revenue margin which balance the XXXX segment $X.X to the revenue modestly fully year, replace year that review down for Specialty burn Thank for gross then or timing. Gross comments our was work. to the last up compared quarter. due from expenses. compared since the flow XXXX Building you, solely revenue I for was some was revenue and were start on compensation completed guidance the revenue everyone. segment discussing because was $X for provide to related nearing assumptions. due was to started will I billion, in will will year projects new billion, projects down afternoon, highest results the to for revenue XXXX Ron. and our sheet, lower All to billion. $X.X year, margin was mainly Revenue not compared billion completion

arbitration Building operations compared was courthouse compared from double Our to in was project reduction, Civil performance mainly and Building construction was the favorable $XXX up an operations income decision due close XXXX segment $XX to a was more with X% mainly ago. was of the and that operations income projects. for up charge X.X% principally operating improvement due years construction contributions adjustment $XX.X to out than first XXXX, margin unexpected pretax decrease on Terminal year, from XXXX $XXX operating XXXX, project outcome XX.X% volume various a that XXXX, million, year, the to mechanical revenue in a result, on a construction in up prior improved of several due year’s Specialty quarter Newark last margins Building segment The XXXX. despite mentioned. One due the segment’s for million $XX modest groups the the project XX% X.X% to I the income quarter Specialty The reduction, construction first down operations from to from income margin the to million, compared California. segments of Contractors our Airport in to for G&A completed overall from was from million, despite was lower the for million primarily a adverse XX% due the the charge. XX% in and

restructuring significant result in XXXX operating X% compared was X% year last to in expense was Interest of $XX in X.X% $X Recall expect the the XXXX. an primarily primarily margin associated to $XX legal amount extinguishment in we that to because a debt due settlement. million, X.X% million income to year. to prior XXXX. target a with these was million a the for operating in of $XX a margin was our non-cash in related XXXX million, segment factors, Other achieve XXXX. compared for to As in compared XXXX, cost million larger The of reduction segment’s significantly gain The was recognized range transactions. to $XX we XXXX improvement which

$X.XX in rate or Tutor per was impacted end guidance Perini Act. $XXX was statutory Cuts Our the effective year. million for by million the $X.XX the in benefit our for just enactment of income XXXX tax the the diluted deferred $X.XX share tax upper that I for Act. Net to of attributable with lower share rate The assets a and diluted the federal by one-time $XX XXXX million year positively of Tax or share settlement Debt impacted income diluted or per prior XXXX from per connection revaluation was our the and $XX and was the liabilities and of XX.X%, per favorably mentioned. million $X.XX gain tax $XX with exceeding Tax pre-tax Jobs share revised of associated with or also benefited the legal

for Civil up quarter for stronger profit of due higher construction up for of was due last productivity operating for operations last Segment Revenue projects compared XX% revenue to XXXX. margin have $X.X the was for this $XX Specialty. XX% quarter be XXXX margin $XXX margins certain me, York. on up discussed results. from compared for for with ever XX.X%, Washington to quarter The the versus the quarter to million million revenue were segment for fourth up the was quarterly fourth the was million volume operations to Civil, of billion quarter the and we of projects. increase $XXX of that of quarter principally broad New from quarter is the all $XX over Gross gradually gross the $XX Now the of of segment of quarter project, reductions compared G&A for the year, XXXX. million $XXX down compensation segments. million, increased The electrical the to decrease level projects last quarter reduced progress to to margin XX% the Income Building year. the quarter that million, XX% last down. in last XXXX was fourth fourth in fourth mainly compared fourth our fourth modestly on favorable year and and fourth XX.X% Kemano revenue Columbia. fourth expenses. related Contractors to the on range compares due last the the the of fourth progress started of the as compared of result quarter work comparable British our in quarter on fourth operating Terminal a in this X% awarded XX.X% fourth as Building to to compared and activities which and same activities due income are compared quarter, results. improving segment quarter newer due compared beginning Tunnel primarily operating Project year excuse year construction or gross the million down was strong quarter for reflected to improvement from been Civil was have was Newark up than year, highest in winding margin million, margin a anticipating to Airport the across quarter as and last to corresponding revenues to California, previously, XX% is on $XXX up the year to volume $XX million $XX more to Specialty we been with reduced projects offset completed the of progress XXXX, quarter And new was and in XX.X%. experience in One

fourth that at if margins compared from $XX of performance project One favorable on target from Civil on strong XX% added with to quarter we X.X% somewhat for upper note and we These the are million The $XX range quarter of progress more compared for health million year. XXXX. On was to for are results. level various the expense to reflecting the exceeded courthouse with positive adjustments certain that group margin the rate a to the beginning as electrical Interest least the Newark fourth attributable on backlog Terminal margin last of for in prior was a quarter $XX close of last the X.X% now and we expect of X% Effective $X largely the completion let’s fourth year, quarter, to associated from operations quarter at not million. quarter on of X.X%, $X segment. quarter fourth for sheet in project in have segment segment or operating margin higher. was Contractors Civil Perini was annual Shifting margin XXXX. quarter share toward as for at in be fourth compared for the associated elevated resulted in a $X.XX are tax impact be benefit. due the and of and seen was same same X% Airport with not the for California we construction which XX%, million strong Specialty overall the a operating per income year would the cash. fourth project X% of we the in yet. to the per million favorable care year I $XX again about fourth $X.XX quarter. projects. for to Civil improved slightly an a historically Contributions per now end last as well or don’t mechanical to projects, segments to the have than operating year was toward California, also year’s XX% the completion the year mechanical Building a as project to expect construction diluted compared the XXXX range However, increase with of million as projects the rate higher quadruple quarter progress to past or $XX and adjustments gears, fourth to basis a over margin operating out segment’s operations XX.X%, operating was pleased quarter the fourth our balance Specialty reported California. tax income included the million million expense income contributions from while last XX% $XX million Net discuss up quarter well technology The share margin the norm tax Tax in quarter the full $XX for fourth share Tutor was effective $X.XX factors diluted

the Our in project an of grew cost and principally the of costs. in billings working slightly in capital fourth increase quarter excess because decrease unbilled in

our $XX continue costs We operating be million the for generated in on more XXXX. unbilled and and $XX quarter cash as to million in earlier. progress noted XXXX fourth our We reducing expect full-year focus Ron made of of

collections, While unbilled strong quarter a in was overcome amount our the insufficient costs. quarter resulted the in fourth from cumulative shortfall the strong result generated cash to operating the that for of the as growth was year

operating the be for was both targeting we that in year to XXXX in are XXXX. operating improved generation cash our cash excess again will we believe substantially However, income of net and it XXXX be as and in

XX, $XXX $XXX the Our of XXXX as at of modest the million revolver end increase total balance compared in end reflecting million, XXXX, zero the debt of the XXXX. its at to from December was

to related XXXX assumptions guidance. our review me let Now, the

segments has be margin we as The XX% Also guidance, margin specific our operating revenue provide X% end noted historical exceed as double Ron segment’s range strong should which at our benchmark. upper expecting will I the XXXX revenue for XXXX. we normal Civil are of not to for Building been anticipate earlier, of that operating XX%. growth XXXX the in do mentioned, we While digit

Contractors margin XXXX for anticipate approximately to Specialty be For believe range We XX% in in tax XXXX. that we segment, the at effective an should X% X% the operating the rate of XX%.

maintenance XXXX million will year. general be also $XX capital estimated anticipate diluted million expense XXXX. shares approximately for $XX and to expenditures around there approximately $XX outstanding be for million We will million this is We for expect that XX of be Interest and amount of non-cash. the

certain expense XXXX addition amount estimate our of $XX owner In estimated XXXX Civil we projects funded. Depreciation, amortization at will equipment purchase is million. $XX that mind for keep is million. for large in that this be entirely that we approximately

our G&A XXXX XXXX. bit our given our XXXX revenue quite that G&A expect in lower modestly in be than dollars a for But in margin compared strong be should higher year. to will We last anticipated growth

We that interest also be $XX million to approximately anticipate non-controlling $XX will XXXX in million.

as in comment earnings to pace Lastly I’d XXXX. like of expected to the generation

of than New slightly the to last expect and revenue you. our Earnings We to specifically quarters back quarter first EPS year’s California, year. than Ron, will rather worse lower the that our we substantially progresses. is and in adjusting More of mid snow quarter each earnings With to weather usual in to better new expected charge more be turn will EPS first and however, rain for quarter for took XXXX, increase only begin year the last to momentum the that will significantly XXXX. calls British call when forecast in be over also momentum to any as -- $X.XX I Midwest burn the to XXXX significance. far in other projects the light EPS after -- Due first and Columbia, than due the date York timing quarter

Ronald Tutor

quarter awards. with Thanks, quarter to XXXX with the pleased very the of record continued Gary. Obviously, particularly first strong our performance respect am backlog that the through I fourth additional with

that the I In continuing locations should be stops continues and previously reason discussed owners physical have bluntly. analysis own intellectual to our not to will with with backlog pipeline momentum little it the of we to and work grow put is our strength major continue competition in grow capacity. no great our the only in of There very XXXX thing addition, where

as there we very a the competition the are few dollar billion bidders very evidenced as before in forward. infrastructure projects. billion said projects dollar in few go in plus There have companies by I plus the minimum such As successfully States can build and everyday United are that

programs. adding the growth I and organization recruit we that and governing our one training to But our limit state what to definite our once on training to in is will be that continue to feel engineers with. again would comfortable focus We factor

a the higher and margins earned have new existing than as are projected last from raise frankly, on the in the margins the over expect reminder, given average margins years awards that we lack margin As past we backlog our to year of the our considerably on that increase, competition. we

higher the overtime, lesser an at operating older income there So, as new replaced by per is and with share. off margin work and an burns both is opportunity work increases margin accelerated in pace, we feel significant earnings for

forward results improved look XXXX. will in We delivering to

the Some results over With growth of operating unbilled the questions. and that, as earnings course as turn our receivables operator you. well for to I Thank of will cash. continued call

Operator

Thank is your Tahira question. KeyBanc Markets. Afzal with you. question Our proceed Capital with from first [Operator Instructions] Please

Unidentified Analyst

guys. guys. Alex on Congrats Tahira. for This Hey, is [inaudible] on the quarter

Ronald Tutor

Thanks.

Gary Smalley

Thanks, Alex.

Unidentified Analyst

on guys mentioned. specific guidance I segments you or help do may most the in things you like based guidance? have the XXXX? any issues end question What or So of you upper concerns guess on to highlight Are in of there any areas you your my range is projects and having what would visibility first reach

Ronald Tutor

of been it will Tutor. think significant claims have our where but in No. were -- any guidance, levels on major it’s think great three a of I to an our made. we don’t don’t opportunity there’s there’s the the have reach question midst of offers depend to extent Ron higher negotiations I we

question our our offer does demand. expectations. the operating meet million point And one want we final margins. not of and to which are final that real and start collecting it’s because some in probably few generate reach we to the separating close where their is, concern is cash, have it those have a no what accepted is and to to have I there a not going dollars with if There we concerns write-downs only settling could We that

of concluded we before consideration to, But real reduction the will a what and think range entitled have them have as number to of to the up those the in what candidly close potential to have cash. very I of I substantial substantial in very is negotiations whether we said we are am claims these taken teed we be a take into obviously collect I XXXX within a feel in amount willing and issue very and we be believe out expectations.

that’s if have one So I concern it. about

get major California markets Civil one our which to equally. continue in award is another in New exploding after in key which York frankly is We

many So if that could I California, possibly tailor our for the opportunities between we put even really and in down group on Civil I strengths how know York paper, two it, the so staying left. months are nobody’s There projects in where it. don’t made the handle pudding. major the for industry in up truth our New are I an saying XX next even months XX to is keep but

a even $X as Three billion projects $X the only And large We a $X,XXX station. straight the Newark a billion total for I LAMTA, you the are $X,XXX the to including gets and more owner million don’t tunnel for of bidder. for got not us. two fact straight and million we today in where matter three. MTA, three if have now if the contractor the is bids advised job contracts make if our contracts owners, friendly get going bids an you fortunate are really And extraordinary he is he these far gets

that, our much take, of margins how Having within them. and market the even said are the about can we limits have regardless we entailed in. still more that’s we intellectually physically So

Gary Smalley

what something get and that’s this take the or in close like dispute you add another talking to but years we are for three accounting could to of litigation where about positions case. I were years we with understands -- if our the saying, probable we if are get I in prolong Alex think And, looking recorded than recovery. rather the amount at just the amount get recorded But where Ron’s could it. That’s that’s two or that what this we like

Unidentified Analyst

on That this of see this going passed, to this? a opportunity the spending monitor in so like we in Washington. you possibility from business a you likely do this year large infrastructure and anything most bill to would and benefit Thanks. of where gets Also, helpful. Are the what new areas Okay. the have was bill continue hearing if your

Ronald Tutor

think, I Washington infrastructure there’s the to they thing only Republicans because agree bill seems constitute be they to on. an Democrats going no question to it are that have and the in

Washington, York funded setting operation the truth major of is of the announced New which $XX of work. New in our geographical However, is aside York just one billion places City two matter of State

XXX% Building, reduction York All with of have York our increasing our we backlogs ourselves at all approval at Skanska, a and been in I New before in my and peers, largest some operations of failures any mechanically, size backlog and mechanical, working the electrical, capacity are find because at Civil of the of of of in our competitor York New records, both our New increasing York and work, and get electrically, more our New they subsidiaries had are to civilly. point have New to York City

that to potentially of we are because business my lower when margin when the business work. of in us affect risk are about competition. only XX%and and and interested are a Civil funding a margins X% business The Building in government generates significant low relatively continues lack at Civil be to So government that the not -- the we -- frankly growth we business government real in pursue that anticipating thing in increases simply our low opinion you in going increase best talk a is doesn’t because spending fact to XX% pre-tax

even and tax sales construction marketplace that talking months had has the is we three about City has Angeles York of regularly passed, enormous booming, there or it. in billion are that with California XX the even City. York they going with Governor And everyone to Civil here he and this isn’t proposition New out MTA generate work potential in XX principals two infrastructure more meet companies expects bid state the have months for the to and stated $XX into that next to backlog. in New over the Los Cuomo

a really interesting depleted of is it So opportunities industry. quite time in growth in enormous an

Unidentified Analyst

the in queue. helpful. very I That’s back Thanks. jump will

Operator

is A. question Brent from question. with with Thielman Please next Davidson. Our your D. proceed

Brent Thielman

on Great. quarter. Congrats Thank you. the

Ronald Tutor

Brent. Thanks,

Brent Thielman

Ron. Hey,

us which most of that the for projects get to ramping half in us kind the just be second guidance up range? the can to ‘XX, critical you remind outlook On or going through are walk of you kind

Ronald Tutor

significantly. I terminal up is ramping think newer the

We erected as steel XX are steel, be the in cost job and remember finished speak. in with approximately the and associated we quarter significantly I more there erecting months we fully to XX then expect are would structural now terminal. it’s trades a And that sometime months. by third

on essentially up next going over million So you Line Purple Not months. is the over only spend ramping X XX of have got dramatically. that a $X,XXX

start will We year. the this Wilshire/Rodeo station

We the year. are this finishing launch bid

put the We tunnel in expect hole. to the machines

be up. notice significant get until April We Purple X Purple margin still But a will year Line So proceed to a be will or of that high May. with associated ramp X. awarded this there’s won’t probably tomorrow. costs $XXX initially Line million

Purple Line that largest and Five-Star, essentially should that contract appropriate $XXX as Mechanical and In over Light were addition, revenue to the million approximately Fisk drilling and we we example of Desert $X.XXX in has the Fisk margins. Lunda had generate backlogs job Electric, the awarded have Rail they ever the billion an their subcontracted at at WDF and have Beko started with X,

get So the phase the as as these the from design the a have make our that on and construction into phase profound them cost profits. jobs for generate operation long impact we can

thing concerns levels optimistic write of -- in now significant settlements to it we cash. is the about reaching only our me and is where future So all point take has claim settlements that interest a generating commencing The that are very just downs on really store. what by in at

in However, reductions settlements. taking

never our the have receivables. past a have we in unbilled amounts and done in it then billion again achieving always have record of booked $X never to had a Here but we

So pressure the that’s us. only on really

substantial X We continue a receivables. to spite in to speed to think cash operate unbilled of Purple Purple We problems with X rail be project. flow promise generate all flow, successful strongly continues ask delays and cash high to and very generate significant its the Newark line line will continues to

Brent Thielman

want way rail this be and the free to Can clear of issues would is I favor? us of your right point, on And high of kind that you on is and kind that weather where speed Okay. you in you once some touch Ron. that here at is update get

Ronald Tutor

a Sacramento of I constant dilemma in a and well is principals rail basis touch as speed high am the as on agency in with Well, weekly site. literally the the job

We June March, continue that like in July. and look now the more to commitments loose have responsibility delays in for us to have their they or right like and of way turn agreements third-party taken

midst also they over However, to negotiations on I work million extra in that like of us would perform. am $XXX the of

very have concurred an So price. said positive. agreed not will obviously extra without we any an have start agreed that order entitled I and are change work and those they

to job our are their they is there in very next out the our rail. in and job we continue by would. is be some party are I out because manner and third although of aspects we a speed get determine expect is to their way the try stymied to agreements State back get positive do there two are to way to defined negative of of Agency when contractors way contract high the up, way have areas away in many The to So they continue of weeks can states the out struggle get gear meeting right and and the the get they

pay They So it’s owe up. us step us us. they when with just integrity. deal But fairness they a with struggle. They in

the continuing spend. will So cost in it’s in money on out it’s the we we just well. that run a run short think turn earn But don’t long can’t difficult, very we travail because

Brent Thielman

just… appreciate color. I maybe And that Okay.

Ronald Tutor

I’d The they State lot back, government it one add it doesn’t no it? I reality a continue, are will of about there’s finish will high ever talk go a going thing it back. remember California pull -- Agency on what to you matter speed and going they say of does to on, federal the is And to got pulls rail, is it’s

consequence funds. my instance committed back of back never or in been XX an there’s years First, able that the clawed federal to claw was ever government

will will gaps is particularly extra work, and the put our a to to Merced my not they be up job or there’s This or of which have irrespective all our Their XXXX, connecting conclude are buy that they is The made what step in further or complete goal like and later. those. it it behind the other means that and in go is So Bakersfield this delays its XXXX our this us electrification, going clear contracts a state of XXXX. can blunt, on be them remember fight fund requires Because and in is State finish with to on probably to cetera. with any have to our can all a this by determined making country But everything reach than President job of is which signals, short cars, emphasized track, own. any on very They in state not portray completion to not. to our California from agreement downtown end. got connecting railroad the political associated whether done to government federal of XXXX et the against realistically that and and our be is rhetoric sense done the is direction work

shared operation, to to for and the that they would they go more generate to hopefully it then way is So that agency’s XXXX me. hope it That’s have time a Sacramento put back They a timeframe what during around create really agree state the credibility have forward somewhere a thing wins XXX plan. they some away on. logical. middle at miles to And That’s walk next the of to about in abandon the no elevated to to that. structures on the in position of and seems and reach. a But everybody are move only bank bluntly

Brent Thielman

I Okay. someone it. it appreciate to on else. pass I Ron will

Ronald Tutor

No problem

Operator

next Fisher UBS. with your question is Steven from Our proceed question. with Instructions] Please [Operator

Steven Fisher

Hi, guys.

Ronald Tutor

Hi, Steven.

Steven Fisher

Hey, Ron.

what compromise flexibility within talking on of those do resolutions? kind covenants take to have of about curious were the you you your any Just write-downs claims

Ronald Tutor

but don’t think that have we any let answer better restrictions to Gary I specifically.

Gary Smalley

Yeah.

case not where Steve, that any. the we calculations where are First don’t nature let’s contingency think built a amounts, plenty those already Then plan not bottomline including the shouldn’t the -- we anticipate. go where then it’s in of settlements in anticipating had And us where amendment also But of have final. without scenario been of and the worst that against judgments all, are an we the have calculation impact we about in currently within the yet we to are four and the on say even impact in headroom still non-cash the excluded if those that from we have it’s spent. in But the covenant don’t think going already issue. same and are we and type headroom have large based that’s talking currently us But amendment we we is consideration that cash an it outcomes us.

Steven Fisher

up that Okay. XXXX? That’s you And here us the will go confidence unbilled your in from can just then helpful. now maybe give

Ronald Tutor

Let’s shouldn’t. it put it way, this

we have point to be XX unbilled We it to to unbilled that’s ongoing biggest get being we or where know their to total and and don’t our do significant due how as are else or I define it. need as the next absolutely very against to I use them allow the and and of put is know on on we won’t unbilled it’s telling you comes support receivables it able personal bill element said single legal a every substantial restrict we the approval a utilize and reduction to my do the our can months. reviewed unbilled battle make quarter. I bluntly previously to of are But for I access you But subsidiaries more don’t in other very can’t it. harsh very a on if amount in-house than costs what them

acceptable close dramatically resolve those and have the I up, do go can’t simply continue them unbilled. reduce to that’s get to and we to settlement So more. agree reasonable couldn’t figure a It

Steven Fisher

frame next just of just you under discussion days range outcomes? can XX for possible the was of maybe amount the a what maybe And of a kind the

Ronald Tutor

various approximately, right $XXX is let There exchanges million of now. me in approximately offers it. take ongoing There’s

Gary Smalley

And Steve…

Steven Fisher

quick… you give just maybe say And

Gary Smalley

account, of things other the days on to say course, in also going Yeah. things have the after year are XX staged there just later are Steve, that that… I

Ronald Tutor

the of end That’s the before year. again much That how…

Steven Fisher

Right. what get… I going to was That’s

Ronald Tutor

number we actual get… …

Steven Fisher

SRXX is year. assume later I -- this SRXX

Ronald Tutor

off damned and fees, lawyers that’s delaying of crooked one the delaying put appealing isn’t can XXXX. with and SRXX they all more No so those been generate god to legal and because appealing

Steven Fisher

guys the on catch Congrats you Okay. and later. will up I bookings

Ronald Tutor

Thanks Steven.

Operator

to Ladies and like question-and-answer gentlemen, management for we our would have over to turn end I of back reached closing session. remarks. call the the

Ronald Tutor

everybody. you Thank

company. unbills of We with the and in our company. the the continued money growth future backlog are us back only bringing The getting very pleased the these to remains obviously through hitch

you. continue night happen it to make you place. Thank as will keep and that apprised and day to takes We work

Operator

This conference. concludes today’s

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

Tutor Perini (TPC) 27 Feb 192018 Q4 Earnings call transcript