TPC - Earnings call transcript Q1 2019 | Tutor Perini Corporation

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Operator

Good day, ladies and gentlemen and welcome to the Tutor Perini Corporation First Quarter 2019 Earnings Conference Call. My name is Tim and I will be your coordinator for today. [Operator Instructions] I will now turn the conference over to your host for today Mr. Jorge Casado, Vice President of Investor Relations. Please proceed.

Jorge Casado

you participation. thank and everyone for your Hello,

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

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

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

Ronald Tutor

for Thanks, us. thank joining Jorge. and Good afternoon you

a of $XX.X year-over-year. quarterly first ever which XXXX the Our of quarter in strongest record $X.X billion awards, of new XX% awards an new increase new of backlog volume featured resulted billion, of

over hospitality and over project in which backlog million; million Authority book-to-burn to X.XX. Transit was Gaming million; California, but included and across new million the Oklahoma, was undisclosed, and contributed New major and York Culver broad-based Other Choctaw the of by again and segment at the is specific billion Backlog X project Casino valued $X.X $XXX in Line our Segment growth $XXX York civil the is New project that for awards gaming in $XXX Purple Hotel Stations in well which ratio the Los Arkansas. segments the of quarter once particularly all the was award growth in driven X $XXX the well robust a Our the Southland in quarter in and Angeles Resort Line the City. value for Casino

segment’s an the record backlog been that’s level. stands Specialty’s high, in Civil is perspective, and all-time XX a now Building highest our segment’s approaching backlog years, while at For the is backlog

of Civil and Specialty backlog X/X comprised nearly of our is Importantly, total project. higher margin

services as we next across backlog that are continuingly In environment margins large projects, opportunities later Accordingly, addition, the will as fuel all sustained with we our revenue demand project pipeline demand other earnings evidenced backlog the segments. this very several of over various growth pursue significant come. to the should growth, large and years significant that believe continues for market combined and by our improved year strong the continue strong construction operating increase

finally at that We federal implement $X government now are being is long-awaited optimistic program, a bandied will the their about level. agree infrastructure trillion upon and which

that is However, significant I manner trillion any adds states, levels, the an to the and at we local forcing struggling completely know add the agencies industry in federal by investment currently counties public, amount to seeding which that’s $X by up, out they don’t speak, however, to and be and built. to pressure will private with creative as federal keep with work just of Summary, more accurate. the money reach which work record government,

Phase on $XXX consequently a format we mentioned is will simply the triple York the year we X courthouse Jersey. New looking Control in and Lift Communications replacement; booked both As Miami; Culver are airport of of projects $XXX and far at a million Florida. larger West Raritan bidding Train because Florida; awarded. ship large million efforts a million at which to California addition million, civil phases that facility and York project Angeles they we in have more larger, At $XXX Santa Avenue of Specialty California, wherein I similar and and $X.X The complex Line segment competitors the $XXX we primarily in Other Expressway fewer addition, million billion which we in City, of June, million cantilever Florida, $XXX our River is $X.X New on in Ana in a Hudson in portal and but end New billion replacement Xth tunnel healthcare Yards, PX bids Amtrak in a all X are New this million $XXX in Building terminal, in awards. their focusing include Los MTA the mechanical very Brooklyn-Queens pursuing billion in PX; recently previously, total billion to bridge; is projects, built Bridge and cruise having already via present higher Texas, electrical X in $X were the segment’s bidding and $X projects exceeds line, $XXX opportunities more swing Contractors City, bidding cargo million $XXX three York, be to much bridge secondarily $XXX The a margins. than already; of million; banding

Los civil We York specialty in both Angeles operations. continue and strong demand groups our as see to well on New very as our

pit Section construction key will first Angeles begin contribute as shaft Work City X excavate tunnel to extension our the certain the I segment. feet of literally Civil projects Century quarter progressing and the is with the in east. tunnel on that Purple X,XXX we in Next, results, launch review starting Line Los

In with Wilshire by $XXX Columbia, the we Midwest, the bridge segment’s Montecito, large which York begin utilities with As project start well The New Miramar and in and commenced significantly assembled, Terminal machines by coupled View October. the Rail course, New are the most City, Newark project. their In this be the CSXXX British Minneapolis the our campus Silicon should in medical technology shaft to Beverly latter completion framing, into Newark the Airport X Subway September, the The included is as two which Terminal In active CMO a Boulevard part Beach in New in progressing New Resort the Hills, in Jersey work Side East launch boring Building mine contributors will Camino the Northeast. staging Rosewood balance in remains on just In Hospital City, Southwest in steel of project, year. begin X the a Mountain on has to on second Kemano’s has of tunnel pilots most El Valley, contract the soldier California. building are Frontier-Kemper million is complete launch Lunda the and York active our Light and to pit expect X, lowered preparing Jersey. I-XX sites as significant completes, office November. tunnel integrated we would of to relocate setting the Airport expect on which preparing Access

we current revenue margins reaffirming share XXXX. this and awarded of earnings on many including Line by mid-June, later year across at backlog on larger outlook, activities guidance Once for X based ramp-up end significant we anticipated higher we Purple significant growth of expect are believe and the the Purple segments to will the our $X and which projects, segment, year our again May all Stations be Line those Given $X.XX. X or the XXXX of per

weighted ramp-up financial because results. As be With of I half. timing activities, present to the expected our the that, towards call Gary over Smalley a details of the are project reminder, significantly turn our the second of to the to earnings

Gary Smalley

buildings, are In large compared recall Thank start results represents in modestly we confidential by completion. $XXX discussing contributed not is to the Northern sheet, quarter, technology building a our during especially first was and the first results project very to first Revenue you, some this of This those projects, to quarter afternoon, completed products year, newer due certain XXXX. because guidance that have to a assumptions. then completed revenue on of I revenue challenge last significantly older by cash results half down will commentary but year, or timing. year. our replace million, California the fully that in nearing everyone. from That half particular, solely project replace primarily our Ron. balance did for Good flow the the followed for last from

Additionally, and $XXX year, compared down XX% project that due to more timing expenses. newer to course the contribute We XXXX last million year-over-year, year, quarter first the relatively are compared projects favorable and X.X%. impacts reflecting both to meaningfully. respectively, the anticipate every decrease $XXX ramping are Revenue a of of year, from quarter This quarter that Street of of first was over projects quarter G&A X.X% accelerating partially is gross the favorable by up and the impacted project Specialty these last to to with within newer revenue quarter up Building mainly for communicated quarter same contributions million, various starting technology that and million, segment year case to certain was Civil of the of the Building year. typically another weather, margin projects to projects Gross slightly and segment the and we civil compensation-related revenue first since was due segment impact in was the newer of first those corresponding segments the work. some the and due burn California a to up. the for The million, for as XX% down quarter from lower especially $XX of compared was of larger the gross quarter are was all previously our have and profit now quarter XXXX adverse to Civil segment building offset are the million revenue $XXX of beginning the our year. for The Contractors segments weakest first weather in good $XX year is compared our last Midwest. of for the first margin for accelerating

million for quarter the was from for of year’s compared construction as by Building have same Our $X XX.X% that quarter million projects year. and due of first already in well the which million. segment’s first contributions Recall last unfavorable to was operations first up and from in $X in of Building first the year year well year. to from a project, $XX lower was strong contributions solid was $XX last contributions technology time. as X.X% construction some and for ramping the were completed California year, I associated quarter. quarter, margin the from XXXX. results volumes $X first million higher-margin quarter quarter other quarter just underway in nearing year compared unfavorable are quarter last adjustment the operating volume. adverse about was to $XX operations impacted X.X% the with segment’s was been operations as this mainly to projects certain This positive income civil to for mentioned prior for year income margin decision X.X% far segment completed year’s a large that compared the million to compared adjustment million unexpected quarter this last of to up of quarter operating the that for particularly year was quarter on The million, first is $X of driven from first that I civil resulted results higher an project of that margin of for a strong as last The quarter last segment so substantially construction last principally completion for for very first for in mentioned the same a by Civil arbitration segment the income first the loss the compared first due quarter

York. in I income earlier more decrease earlier, favorable operations by Specialty contribute will electrical contributions by The on to segment’s was Contractors $X adjustments year. we As loss primarily were reported the which mechanical and first we driven in our related positively year. projects last other large unfavorable new offset to closeout several in York. volume $X electrical of quarter recently building that from million New reduction in mainly on operating quarter income same the construction the were awarded, have and later expect mentioned of compared New certain mechanical million mentioned Lower of to performance projects results a the in projects

XXXX Star we York Five on Line New project various expect and from the compared weak in Interest balance quarter the Terminal, of X% Specialty projects a work year targeting range City and increase higher significant quarter this X% margin public prior was $XX increase the particular, year’s revolver stronger same activity an and primarily We Newark the projects, and the the Culver million segment WDF, period. on over rate including of of year. The of first quarter, the because first the of Authority other to the as million contributions $XX Despite Specialty later remainder expense to average the this quarter in some new last this the Housing interest year. Contractors the agencies. for for still in mechanical segment performance during was to are operating year Electric compared

or rate increase % higher income for effective the first small in same in items, the Our share million resulted will tax compared recognition to quarter a approximately rate of gears quarter The of attributable and quarter quarter the the this which quarter. the shift XX.X% our XXXX due for for XXXX. compared effective balance discuss rate or was a the caused $X.XX of of of diluted diluted XX.X% $X.XX per the to loss loss unfavorable loss XXXX. Net year’s of loss first to now the $XX some of and pretax immaterial I for is per to share fairly large operating nonrecurring period sheet $XXX,XXX for from the Perini first relatively cash. Tutor first

of first in of capital X% to handful due in because an of working projects. increase Our collections on the the timing quarter receivable accounts grew project primarily a

the especially year. have our pain accelerating a will so felt first impact is quarter incentive and receive in $XXX And cash the up mind positive we because say, the we We as We comp in the on lot year, also negotiation that still substantial and quarter earlier. or and than year to cash are that area be cash try net customers operating so quarter. cash XXXX we both due cost settlement, this change Also year, primarily revenue various in compared and the was of we targeting payments operating cash order in these that last that working that our is has payments. first the that lot first and this and at of for in still and shift of in and and in of disputes, of continue as always of some it lower let’s it’s significant position is the first a improved year. also of there expect to we rest will flow reducing quarter XXXX. lower December income be the be to keep in in our quarters. we driven I year, this operating to a to to be Keep quarter mentioned cash investments ramp-ups It’s we and capital. a ramping in unbilled other that report the the will expect for payments cash of accelerate progress operating that in claims any mind focused a this two of And tax the a be the payment, excess our of later positive year used we million end of, sometimes part to in to because This instead have in of single due somewhat through contributors

capital an Our as to of total that million supported needs $XXX million reflecting first our quarter. March debt XXXX, working revolver the of XX, end our $XXX in balance at was the increase XXXX, compared during

trailing down term, for otherwise of XX leverage that our from at of ended eliminating the week, that set Our XX. months the the debt to agreement leverage was ratio occurred have amended ratio X.XX. X.XX credit compliance for the thus step March to the X.X this we earlier remainder Note as would credit X.XX facility XXst March maximum

the see, did terms better in later, of previous Instead adjustments a us the to market, handful reaffirmed for none the can below change. the be required rate not outstanding, Note any non-controlling tax we effective in growth made, do represents comfortably the based cushion, funding for expecting amend backlog. would expense, also facility our without as a on us guidance the quarter, facility leverage the you amendment current the have amortization need reset to that guidance. of providing were depreciation credit number assumptions should typical we it not As the so the short-term level including related leverage interests. shares of ratio allows X.X the CapEx, which expense, a of change the at amendment and ratio covenants. been the changed, year, other interest but previously with increased have A definitional any Ron while Earlier, of our needed credit record did to we’re and G&A

reiterate this regarding mentioned the year. will Ron earnings I of what quarterly Lastly, pace

we due the discussed While the back compared in results I’ll the projects. project to results we ups to you. previously quarters, substantially various With we second ramp expect to improved for turn to over quarter, better and the that, call fourth Ron, large third anticipate quarter report as on first do, the typically

Ronald Tutor

margins are positive X about today talked we X demand in been higher Thanks, the past and in of Gary. bolsters of on record have the in last recap, the due for revenue our continued projects our the and to higher especially To growth backlog is in backlog with obviously awards than this for longer have they competition, and to the arena. and future the outlook margin term, civil specialty the quarter literally our limited The year significant our first new work and years. backlog majority increased vast and significant the trajectory earnings

negotiate backlog, current to we cash addition, erode. in to execute share claims order disputes we are and on and our a continuing of we settle various continue pursue significant win order our diligently the substantial to In and collect change effectively and as endeavors

the dealing added X we can over past any, to receivables backlog of claims enormous add addition, that have years, limited, In are I the or if substance with. virtually we unbilled

making of will the arbitration, we another about And we conclude have we impacts handedly just kind concluded to litigation, one necessary. both that effective of summer. are are So by think are we we result, which a win as

our We for has try our settle. are of large a that on mediation our second state second asked with claim to largest to mediation on owners one

the court cases We If settlement year, these the midst either of to this and by of amount certainly in of to a will are hold we hold, dates litigation, and concluded cases force significant mediation them consequence. level the these the be discussions resolve on end or in try as and year court. mediations of next

However, said music, with before, current date, serious it or I’ve sooner but get as to courthouse optimistic. to our haven’t the first any to paid explain got face system, unfortunately, negotiations differ and any our time a public a the postpone and excuse for they place of later, takes trier all judicial on having who excuse happen. fact agencies court why to I what the us they we usually am steps

but I’ve the turn Thank the As my of knowledge with best operator to follow. give can’t happening. to questions I of will I call the said what’s over And you that, you. pinpoint, previously, your for

Operator

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

Tahira Afzal

seeing momentum are in backlog and the on Thank Obviously, side lot you. Hi, of that you success the a market. the brand testament is name your really to and Ron. a

start point to a start. do continues changes? you patchy group at have if we some specialty and looking the seeing have had issues. need company structurally you At to execution make obviously, The what However,

Ronald Tutor

structurally do of mean I a number changes. changes? have by What made make you

Tahira Afzal

for a group, business specialty really argue investor part of? not what be can your at need would argue is that EV wanted and your to should but to credibility low, to you whether doing otherwise, obviously of maybe And suggest of example, backlog look more I exceptionally and is well. lost would you I the Well, of that’s get sense

Ronald Tutor

the last lost I part.

that? credibility about something and up leading said to You investor

Tahira Afzal

EV you right, you backlog, mean just at if I look to based your on... would Yes. argue

Ronald Tutor

to backlog? What

Tahira Afzal

am to seem translate the currently... not that does suggest And I confidence people backlog earnings. Ron, valuation, that your into have Basically will

Ronald Tutor

done is profits, turning backlog of dignify into be that won’t prerogative. course successful answer don’t since if our I an it your that with see in we Well, all you have way, but that’s

Tahira Afzal

the I enough. Thank will queue. you. hop into Fair back

Operator

& line next comes questions. the proceed Our of Rygiel your from question of Please Alex with Company. FBR

Alex Rygiel

Gary, quarter. and Ron fantastic Congratulations.

Ronald Tutor

Thank you.

Alex Rygiel

talk backlog margin us X backlog margin last grown on the in about grown looks that’s The or little through over the versus Ron, P&L? today what a has perception in bit versus has of marketplace the perspective you marketplace to your give in like tremendously. today years? coming your can pricing maybe pricing the the And X the some margin

Ronald Tutor

be X the to to on say be, and $X from probably up XX% years totally our the jobs. margins and I’d major candid, to that’s were X plus shouldn’t I of ago work, billion all XX%, all

said, we bidders Newark on X. successes X. Line As years. business bidders have been X ongoing We have for Purple in had the Purple on on Line other no We I subway had our Terminal. competition the X frankly, And XX

stations. significantly. our So, New these don’t New very tunnels subway candidly, and I as our significantly don’t with City raised and beneficiary And hasn’t think to continue that. in grow jobs we’re and to in And have both margins. do belowground in the their any fees large industry we qualifications the think anybody raised capacity York the competition of And we’ve they York, we

up beginning come tunnels, those and to take X, out work Line go they to by hold. Purple is It the now to finally billion Rail Ours stations, has is California worth margins to of equates billion been of been which although X minimum X X work successful, just over because be come release, to delays able very will into of and $X Line our play next because is as Purple XX%. $ ramping stymied work, Purple High-Speed beginning Line we’ll worth it’s

balance begin margins higher should those to our sheet. hit So

additional And we presence. as we addition, this And XX% achieved. jobs, will profit the because Specialty very significant and have where bid these contractor In simply a team. margins those a be XX% is on them exceed

and problem integral north. last supporting has prime our strategies, billion are question and are our to margins So contracts the higher $X our Specialty take and $X been been billion replaced our significant part our one success and have roles virtually they but management I all lady’s very comments, that a has headaches, respond its projects, at group an of bidding over the been might other in in of wherein than and they

So, although, yes, doing all spin our as projections, now the is resolve they and be cash all caused rid they thing try do behind since the flow to all people can met extremely foolish And most most are thing have them off. issues haven’t to could position finally past, we to we’ve they of of less well weathered we today drains us. foolish or worst we the the get them replaced the the are in that would negative,

even I resolved we them didn’t commit the claims resolve reason happen. us they it So a claims, claims. isn’t it behind the of me should because at took to a what opinion, way have, Part they receivables. push was write-downs to took going And quarter because my and tremendous to for number these the time, the to will there was eliminating is the execute we we in those we I continue settle felt unbilled worth that figures, first And same putting write-downs as in though are. of the

to we would any progress, continue us make slower albeit So, much like. than of

diatribe. the for sorry, and there getting are We

question? Next

Alex Rygiel

tight we have broadly. market very a Ron, labor and

your increasing we size. record adding workforce risk think cost going should pretty backlog. to labor you’re How be about to substantial have associated structure? workforce You with Clearly, the

Ronald Tutor

we jobs. get, these on and Well, $X theory interestingly do not we effective operate that $X $X billion get billion the on and bigger we more enough, billion the cost

cost So men. frankly, since jobs $XXX and have we biggest labor less of he as and ran the on all you manage as think X,XXX hedge anybody get we men is naive. I’ve men efficient our And thinks intelligently instead payroll, can than million work, men jobs million as X,XXX bigger, XXX effectively $XXX the our because XXX

ask only are of everywhere of which in get can my that life, The have union people thing office, going Florida truth a country, I our honesty, address to is, we’ve we’re entire you we the say and believe I where you always the Mississippi the So, our as of neither to with and exception grown, additional all contractor workmen? this it in one me, office such always a largest, impact Perini. operations, on as got union our to talk any hire men need to continues trained the ramp work. union don’t many as out present people apprenticeship people they of small don’t of and every unions. do their we’ve train building contractor, country’s the one But Tutor and to people. through many this the In They’re nice, up programs I

one the people. to thing the we’ve never get experienced inability is So,

our very We qualified have But from crafts time-to-time get they we busy. in less we’ve that certain accordingly. the locations capable hedge less had labor and when way adjusted to is simple, very

not now. San we realistically, future? will subway $X in next the year. see biggest problem, Could Francisco be, I’ve as It’s in Francisco. possible. have San as finishing that More sometime job it available are a be our our certainly don’t I before, problem staff We’ll billion So, said

year, have made will high-speed by Same out. in next of peel into certain York. subway thing with to rail certain be where I jobs in the New are We could end strides people hopefully,

qualifying So, we we achieve, biggest capable people we’ll work, have and some simply for biggest fully don’t once margin do capacity, have but to that with, hire the contracted to continue work being train our this that’s of new recruit and to the the we’re the do we issue stop can to The only convinced, of worry. single difference regardless people I’m my bidding. is and and

Alex Rygiel

in is look segments, of revenue next three a it the quarters, And kind over how it? and Does on in growth as lumpier to quarter pacing Gary, function XQ, fairly the it the XQ it step think smoothly one across should about segments in Is by growth quick accelerating versus XQ? of one question be then we well? other? smooth

Gary Smalley

Yes.

these So, acceleration with and With And your be ramping X on QX to larger up. projects Specialty. being up, look first reflective be question, of That you I dramatically but Ron by at more would for respect or the segment is more of and pace what gradual, had is if that being Alex, QX the more going the is breakdown Civil really mentioned. to Building I going to well. described segment, to company the

Alex Rygiel

much. very Congratulations. you Thank

Gary Smalley

you. thank Well

Operator

Davidson. comes Instructions] of with Karimi the [Operator line proceed next question your Please of D.A. Zane question. Our from

Zane Karimi

This Hi for Zane, afternoon. on Brent. is good

Gary Smalley

Zane, hear we can’t well. really you

a maybe closer talk please? phone, could a little get to you If little the louder,

Zane Karimi

Okay. How about this?

Ronald Tutor

better. Much

Gary Smalley

Thank great. That’s you. That’s great.

Zane Karimi

one Okay. this on Brent God, afternoon. got for I that done. Zane,

changed a earnings off, you’re the to couple little last later the than reported? better And of you any some when ago drive projects First months that line time has visibility this on guys expecting those a big on year? of the start-up of

Ronald Tutor

I so. don’t think

think that initial schedule and tunnels starting the with up tunnel is $X.X the Line Purple the X, fairly and January by year I somewhere ramping drive this dramatically December station between to close in next billion year.

in at of High-speed being We’re get starting work for Beverly delays. station, is XX that’s stalled beginning basically next Boulevard rail after our months Wilshire again, over the days. the starting with to to work, back

together. all it’s think I coming

Newark, steel be the erecting think across terminal should November. I erected October, by entire which the we’re terminal,

if going the follow those that revenue where So, these that and contract a size months. not tilt of associated the revenue costs with be it’s within full ensue on all within already building significant should most with projects of and up X to the going next they’re

Zane Karimi

April? in that how work subsiding? spanning really then weather through the some And you has last are good the on guys of March it you ramping this weather And with up, now this are following weather how impacted at the guys you looking Civil margins, with And west, and Great. quarter? not

Ronald Tutor

hear Did you? you quite didn’t say renting, I

Zane Karimi

with of that The projects... on weather and up to ramping regards some

Ronald Tutor

marginal York, in New always temperatures operation. snows is our weather where Ramping. of with more California the X, bad you but gets XX In New and operations, Jersey our and weather inches rain, even both in not so Midwest our so a might bad realistically, and is guess, where impact, Wisconsin to west, freezing has weather bridge Minnesota as highway in it as the it’s in it really

answer impact for in bad than other what sunny the norm this If And back typical. any it’s you’re ceased. see relatively So, I already east it we’re we believe at, May an looking it’s and it’s or sunny, different and any is think don’t than and weather the that’s not, the winter. don’t weather and

on tilt City New work. full New York going we’re and So, all Jersey

and hit be So, issue don’t this New the to year unless I expect for it really of somehow, we is and get an weather say rest Year. can’t Thanksgiving I between

Zane Karimi

Thank you. I the appreciate time.

Ronald Tutor

Sure.

Operator

next question UBS. of Fisher Steven Please the from with of line your Our question. proceed comes

Steven Fisher

Good guys. Thanks. afternoon

Ronald Tutor

Hi Steven.

Steven Fisher

the the and Gary, if clarify margin the was could statement how Wondering, the Ron. Specialty adjustment the would much and be quarter, that profitability in Hi, without just closeout maybe that quarter? what profit in in you

Gary Smalley

was it about Yes, more it have couple Steve. I at would’ve closeout, this would up up gone the the of way, look X.X% X.X%. one than about a and it’s But would margin margin for quarter gone the them.

determine quarter So, between I gives think can that which the quarter... first year’s this construction you our from difference last most operations, with income of comparing first you

Ronald Tutor

$XX million. It’s over

Gary Smalley

Is is mostly that Delta that.

difference that of year-over-year delta million $XX delta, most million $XX had and to is that. due we So,

Ronald Tutor

have would would’ve been settlements a without the of Essentially, same within loss The Specialty or of group the of million been profit $X adverse approximately claims gain take. give in $X the million. amount loss the

was So, it $XX swing. million

Steven Fisher

Got to be again, you’ve able that’s to that line taken then the settlement? you. collect basically right on cash And

Ronald Tutor

there what were no call, smaller of claims I I’d a intention of, that had Well, number litigating.

it that million, want didn’t Typically, just They made to to I no of million. kind investing at litigate them, looked them. work to get So, don’t spend lawyers. sense and $X I capital when $X

wouldn’t with closed we as And out certain put ones. focused good called larger we and owners. settlements, the I but have settled us behind on we So, them them

Steven Fisher

Gary then the was bit pull QX year. saying cash were of of like forward of a into maybe you cash there again, last sounded clarifying the disappointing a And just, commentary But on fourth on also flow, the flow. was Okay. it quarter kind

to figure figure why So, I going but to out trying cash I as on, said what’s flow. going trying I’m better here the it goes know better? really isn’t in you on it’s year get And just to guess really out the

Gary Smalley

Well, the fourth flow. we had year, million $XX of last quarter cash

And $XX we’re fourth cash we was a flow are solid So, year, with quarter, because wanted the million. that but positive. for we in slightly disappointed higher still the

Steven Fisher

guidance? just the and you weighing Okay. of takes just seems bookings were but on wondering, weaker expected the Because bit year the are the how on than like the kind guidance, confidence quarter maybe the quarter, framing in And better. a puts was and the of maybe it it

start? you sort guidance, you in would or confident sort not this of you’re say upper more the net at the So, it slower for had now been of basically would than have or end expected beating been

Gary Smalley

There And going some confidence on was year. as takes. puts it the had and the before, and we we always are the some I Steve. feel as we is And did, puts same into think takes. same our

Ronald Tutor

and might add, always I try I be not be. to Also, blunt supposed to though am even sometimes I direct

had to earnings the we been that were assuming quarter made within in necessary. budget. take the set that taken, write-downs course I would affected the those money that the first write-downs contained these quarter, But of per those, I took of exceeded have achieve allowances they our Some reality the first would share the I first certain we order when in of settlement quarter not and collect adversely

So level we me finish still place we there’s the within significant we’ve though taken would quarter, in took a first believe of And that to in earnings. our allowed nothing won’t lead in that hits still we’re even what area. that’s

Steven Fisher

QX, backlog, margin. then healthy on to could mean margins not just even here? obviously Civil from a build the quarter? XX.X% if based margin expect you the Got it. And something for Just in that the for that’s you that’s on and I frame pretty is

Ronald Tutor

significant because is very how billion east and think, highway In in the should Company better work amount the do of is York the New I our We large Lunda, weighed plus Civil. margin back $X our a XX.X% contract. in explained work, by I earlier, down significant

million, and bread to However, the jobs. as $XXX $XXX what $XX maybe butter still and XX% compete, high-single in and our the would million, to million up $XXX call we we million, bread butter $XXX million the million, $XX laboring in we’re digit,

significant the be more larger move in as will it. will of it jobs, more much we However, go up because there

$X.XXX billion with ramping stations into work well Purple Line then For change Purple we million, now We’ve billion, and added orders We which right have $X,XXX million. $X.X tunnels Terminal significantly, high-speed day. at at at is at million. up. every and $XXX have X start its $X,XXX X X and added example, Newark at being Line Purple We’ve rail Line growing

So, do X.X total in billion we our have yet, X, X, math. X, plus, $X X margins. X Civil $X billion or jobs $X of is billion backlogs of over almost significant $XX it’s our the $X you billion better billion backlog, That with

been, Our had The that’s we the of billion and backlog X lack and caused high-speed the was it’s And last contained jobs. as this within where right-of-way remember, is X margins are. of years. easements job transitions, That’s $X delays constant billion lack only $X it the it where the all as with is is and Because profitable owners rail. ago years permits. of by suffered over

So, just which all is ramp so revenue, effect necessary. work, impact the and new to of beginning is new have beginning this and to up all just

Steven Fisher

Ron thanks Terrific

Operator

conference. of to the At to management portion this turn conference time, there back over audio like closing would questions the remarks. I over no for further are the

Ronald Tutor

call. the time. Enjoyed the you next Talk to everybody. you, Thank

Operator

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

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

Tutor Perini (TPC) 9 May 192019 Q1 Earnings call transcript