TPC - Earnings call transcript Q4 2020 | Tutor Perini Corporation

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Operator

Good day, ladies and gentlemen and welcome to the Tutor Perini Corporation Fourth Quarter 2020 Earnings Conference Call. My name is Alex 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.

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

Jorge Casado

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

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

of You can The could otherwise, or XX-K differences most find obligation as our risk as new than today. law. factors other result forward-looking Form assumes company disclosures in information, by potentially that about update future which recent filing whether to such events contribute are required no we to statements, our a

will addition, with of also in are discussing the section be our certain call, non-GAAP the earnings reconciliations Investor that I'll call Tutor. posted earlier website. our and turn today's release, issued In to measures. financial over which said, incorporated Relations is appropriate SEC, we and Ronald today during GAAP we in The With financial the which filed

Ronald Tutor

your Jorge. in and you you, participation. strong thank Thank very We XXXX. all afternoon a for had Good year

of Our we well as as project presented worked offices challenges both teams and work our navigated in or setting. job sites, our case well by effectively the year COVID-XX home through from the and at throughout home the offices

many and cash both despite were any higher significant of project available labor and scheduled productivity, results Gary and and essentially lack and of reduction delivered other resulted per which to many of manpower, a year were our Tutor, delays efficiency, guidance share, our the XX% work their achieved great results at projects XX% of all operating of than for in we with for Most results COVID because, earnings that flow, merger XXXX productivity income operating short to these since labor projects exceeded workforce. financial XXXX. Our impressively, impacts times, by or highlighted Perini relating as negative as which in COVID-XX of and we detail $X.XX financial from Saliba, deferral of in field record will later. our record were

were of incremental to which much be recover the the However, our as of million, costs owners estimated $XX we're excess seeking to costs. from recoverable in

-- and XX% segments, by the Sections tunnels, the strong totaled Purple contracts Authority Jersey, in year-over-year Our across and $X including several building Light Newark large and X revenue specialty. with which civil as as civil as all Casino Terminal projects, we Los Angeles the Airport Choctaw particularly, one X, in Division billion X of Resort Line New Lines as four projects in Purple double-digit XX as progressed after growth in and for and and well both was The grew large such X of on Oklahoma. Rail, virtually Minneapolis the excess Port well Southwest in XX% growth work driven year XXXX MTA growth substantial

gaming project a project unnamed in large and and also in Another technology hospitality California. large building California

and programs that the with well projects they to behind our at worst remain advance optimistic widespread existing up of to in vaccinations that COVID-XX scale pace. significant and are now especially we continuing an us, approved accelerating cautiously All are are hopefully XXXX, is of occurring

was results. of to sense in our will highlight hopeful that of a Operating $XXX We another getting bid. year, this available to of and both back normalcy; half start the are workplace XXXX of second greater in the income by million we work

again was of year. of in that arbitration well $XXX it our also continue I collecting, will as merger higher beyond, compared last solid up with cash since million believe amount our results on I merger. expectations a of and XXXX large favorable strong on as years same the costs. of progress a XXXX. for cash consistent impairment of flow and which since any resumption we as anticipated The to infrastructure years projects, a As the to that the XX operating to impacted any ruling more continued on progress large as of a significantly in in result cash the take associated a verdict. charge resolution the record revenue mentioned, as project, highest result XXXX, of with increased flow we to on generated well mentioned charge, led dispute highest adverse was margin the severely increase driven The were cash projects, major was a well same was the Also year. for aforementioned collections to disputed address continued dispute produce settlement the civil and environment SR normalized by healthy We by recall by goodwill driven as a was XXXX our were required We results the jury

XXXX Our I at end it end billion the -- quarter At at the was the I'm to backlog $X.X third down. was of billion third get of quarter XXXX. okay, the the compared end of of $X.X sorry,

to cause pushed caused it funding was major inability to to later uncertainty. to resulted XXXX which temporary as large work and COVID-XX revenant which maintain years I'll speak referred very to projects, same four with continued from source, Right us projects certainly taken and -- the Minneapolis and created of lately has significant as on with as Rail. A XXXX Light substantial backlog whole provides in the Los the Speed was customers' revenue once turn stability seven had in again our High the over it and California next MTA, the Angeles of Rail, includes such new pandemic array impact earlier those a backlog XXXX, simply our pushed our backlog, impacts Our awards end the our to and growth.

building the in we of many continue decline that bid to XXXX those through may we solicitations booked major should this XXXX speak approximately of and and federal various we have several new for which contract significantly which New in street, Texas, Recently, million in XXXX. projects, first projects delays domestic submitted and the awards. for for the half and facilities are million Florida, seeing mass potential These another proposals $X.X expect of We backlog multi-award those for as on million year. the $XX back several for billion of various in second are backlog in million increase adjustments for We the government were electrical continue, I will now decisions tracking awards $XXX -- to and awards electrical half in contracts million coming projects customer the projects included California, $XXX that various but in contract government $XXX transit later, and projects, and new projects York. $XXX and pending

addition, on proposing projects we In other year. and various bidding anticipate this substantial

example, and to its by million. XXX% delayed the high of Black Island we will large subsidiary bidding the for Guam the million the which values will history over military finally Northern getting been -- be Los in in projects is Mariana previous exceed of for the backlog Construction, any Airport Authority number which March, in $XXX has times. our Metropolitan Angeles, in a For LAX Transit Metro Connector $XXX

project, Terminal awarded million be XXXX. quarter bid We are in which third believe X we also the the pursuing of $X.X will JFK and

this New Terminal In Project repackaged expected for quarter the Newark elevated automated curdle for to We Southern on Airport mover Inglewood finally been year. received as strongly this propose later Jersey quarter. that in and of year. billion success the are in our we of for that third and billion by be in authority rebid it's well-qualified due a we port last project experience to to Honolulu on year California, reasons we the $X.X $X.X anticipate low the the that given Port the moving funding, third being owner and is X. and is to proposed $X positioned project people which billion Rail on the a working bidding Project budgetary appears with expected had Also Bridge $X.X announced bidder, the sometime forward billion Furthermore,

on of In Valley number segment led Santa $X that be will totaled addition, $X in $X Transportation the the billion. large of a Clara Authority billion contracts qualifications approximately from of the that we're billion by tunnel midst a very

former In That contractor new $X.X on later addition, as we're the project. the billion the this qualifying in for Maryland the project of that process go of opportunity summer. departure in will proposal following Line Purple a

in having $X.X recently on advancing now is the Landside process military second Finally, billion a Report. their period not That the JFK project Project. in were half base which billion Train, $X Fernando the Penn East Santa Light of rail $X.X year. Air a Metro San Terminal of Access North the Airport million Bus Florida $X.X billion the bids Dunbarton $XXX Newark the Authority Bridge valued Air the Project. York, billion Environmental $X large same for in corridor include is Transit Newport [ph] the in draft $X horizon comment bidding the enough MTA. billion in Development we're and California, in excess Assessment Port billion Ana Roadway $X New XX-day project, LA the The entered Airport on All Corridor, $X.X billion, of Station LaGuardia West Northern Valley The the New and Train billion the Project Rail in York, which of

number which long agencies $XX of coming projects our these is go significant opportunity, in next forward. Federal majority at go a the XX all, over their civil that major we out bid $XX billion the building $XX this nine billion that in will the months. to $X.X once once of and and of ways saying irregardless, to is concluded, Bailout tracking all revenue these elements we're months, billion that funded is projects key in of of are going One currently refinancing shortfall are to these In over trillion approximately six projects and the that sources of year still of will feel of these near-term next a and project

and the with past, delays that for that great contracting prospective Of said has I much our projects. reflected what of to remains the bidding I have volume awards the provides general and COVID-XX in specialty customer pursue for despite our presented. challenges will funding repeatedly level, divisions, resulting course, the opportunities it in an demand by work unprecedented as project namely, at reiterate

is Biden approves investment now civil four under Trump government Our pipeline the likely of talked been at further. administration is to the forefront Once of the even infrastructure the for opportunities ministration. grow the about years awaited that's long federal large program

as such, COVID-XX again the infrastructure a those military island and existing our unable pandemic continues the pent-up growth as incredible growth such backlog unparalleled customer of which that strong the are large given once realize the underestimated where of predict the certain are or total is on the accurately of of Perini We them X with and our size several completing third uncertainties bill is boom is infrastructure well-positioned on more Tutor anything, we XXXX. nearing continued government over end. growth, government. West from the where remarkable. our X very on the anticipate currently and large projects billion, impacts the our Coast to the that completion very civil funding a the however, presents in $X fact bids CMO quarter quarter this for in demand fourth from Terminal and that future Newark combination likelihood the multiyear is benefit be accurately in from list situation to business. So, federal If and year fluid of is projects we XXXX just of Guam, we Offsetting published revenue the the to impact increased particular over its emphasis

pursuing we several and in prospective West the on awarded XXXX. As mentioned Northeast, large expected be Coast, Guam, to are in and that are and bid projects earlier, XXXX

we words, get sufficient can revenue reductions those be to to completing marketplace, the work However, In back with dominate the magnitude of incremental may we expected not works. so increases timing revenue need projects. offset the associated out the in major continue to other and

establishing our a financial at reasons, these estimating $X.XX to we're XXXX. outlook, we and for XXXX are taking for cautious, our EPS For but our initial Accordingly, based and of approach business guidance on a practical market range $X.XX. performance assessment current this year

And call be large the to the previous in of As well are heavily year, the second in earnings with as to in to as our the years, expected you. financial results. over of XXXX Smalley turn weighted I'll project anticipated business the Thank present activities, that, due our to typical timing half seasonality. details more of Gary

Gary Smalley

will I for XXXX balance afternoon cash I'll you, on our Good after comments as Ron. Thank provide I which flow then the start review our year, as our the quarter. will discussing results some fourth guidance by assumptions. and well sheet everyone.

segment comparisons reconciliation XXXX our charge. in As to more for most we XX% provided construction of in pre-impairment Accordingly, electrical of XXXX results well various loss $XXX operations, and XXXX in projects on mass principally a that a Ron to tax our of Rail for compared well non-GAAP billion, to revenue and non-GAAP due $X.X net various associated in be to $X.X activities measures. nearly well XXXX, applicable in adjusted primarily as year. discussing despite execution million. that due projects, as project year, comparable to and execution $X.X as are growth billion, our only the of operating have that that increased results, for projects GAAP Income the the including Line Building Civil XX% charge adjusted a significant to XXXX Revenue basis on billion, XX-K, by the COVID-XX Specialty in a the segment the hotel was to for mechanical exclude to increased driven or apply mentioned revenue certain segment $X.X for activities took others. impact execution Light reminder, we release California, financial overall period was transit XX% project Northeast during project the and measures benefit from and with grew XX% any to California. meaningful. activities that our increased comparison goodwill and These results impairment project earnings as EPS will revenue increased as XXXX construction with projects grew had casino in XXXX operations $X billion year-over-year other reference on the to billion, Oklahoma California. I so income, XXXX as Purple the in adjusted income LA, up from measures impacts

$XX a line the substantially from construction driven Contractors' margin substantially XXXX Ron an verdict charge compared in $XX of was million, projects infrastructure year income in better the on material segment in expenses, income in $XX other loss margin Tunnel XXXX our As also with Other a XXXX the of gain driven the was and individually from and reduction prior was I related for to lower debt million, merger margin in expense to that to to result increased by increased up progressing. despite a up not almost XXXX. disputes that tax rate the from was the million expenses on transactions are million, infrastructure effective legal was The operating adjusted XXXX entirely margin the by in property from to not in compared construction travel XX line XX% $XX an record since million expense high COVID-XX with net year, certain the margin XX.X%, net of related driven XXXX tax in August Ron but to the was XXXX. well reduced or large as effective are benefit loss $XX expense was projects. reflects in XXXX. on of net million, still in projects increase and to XX.X% which X.X%, prior of net adverse compared XXXX million higher by our operating the corresponding sale due for we compared tax extinguishment was ASR despite Interest from segment resulted The favorable The XXXX reported for as on than X.X%, and or from business construction primarily Building XXXX well XXXX income Corporate and million, XXXX jury the $XXX of income non-cash to operations in in primarily of in income volume a million equipment. income that restructuring the mostly operating was healthy for to XXXX. both while completed income mentioned, past volume operations, million resolution and operating XXXX Income result XXXX of COVID-XX million amount Specialty costs both certain tax operations of appealing other differential that construction $XX due operations construction were from a unfavorable The The NOL. XX% impact, acquisitions, due expectations to to expense was related noted, pretax absence rate the compared with with adjusted compensation in $XX for was aggregate, increase the pandemic. certain is when in XXXX, tax pertaining higher XXXX. our income as contributions for in the an as G&A realized with was XX.X% the Seattle primarily $XX million strong expectations. corresponding XXXX the compared income $XXX of rate segment expense Project. operations of $XX Civil to the XXXX. $X

XX%. the previous NOL the forward. allowed benefit attributable rules This the losses which the generated up Net rate the carrying to Act, XX was carry under may tax statutory tax back when of XX% share, under charge. income NOL by only was tax that XXXX or such us due the million year. of XXXX $XXX our Tutor in guidance Perini to to benefit NOL $X.XX allowed back the rather carried SR the recall the years, The exceeded diluted EPS five current XXXX federal of earnings in than may You rate was we're rate differential years realize whereas CARES for to per be tax be to to

about improvement results related the In Our highly $XXX charge $X.XX of XXXX loss to per a compared that of loss to profitable you dramatic negative million the of when estimated attributable that impressive December again adjusted in with a the million an a we've $XX XXXX spoken a pretax times, more are unfavorable share. XXXX, was XX consider was adverse jury XXXX SR Perini COVID-XX XXXX an appealing. couple even share. impact impact verdict $X.XX that and EPS net on includes of project Tutor from EPS $X.XX to included we per adjusted

million Now, the mostly and SR increase project construction to due Revenue we compared for was the on for of was the million, million, segment of execution Building, reduction fourth fourth of of offset fourth to the activities and Contractor charge and by quarter large billion, in an the with and activities and growth margins from that quarter. G&A XXXX, the execution in XXXX, compared Civil electrical execution $XXX up quarter also technology same Civil, Specialty Specialty XXXX $XXX for Income increased Building, year, for quarter the by project segment quarter mostly project, for $XX was were for with project revenue an $XXX segment year-over-year. due compared of activities for Building Specialty quarter increase projects quarter X.X%, associated revenue to increased in hospitality to XX respectively. of on XX% revenue XX% operating of X.X%, the partially primarily the million was was due the Northeast. mechanical the to operations project both year California the breakdown segment the the XX% $XX revenue $XX million by was million, last XXXX, gaming segment to $X.X took fourth but and results. for XXXX. quarter up Civil Fourth corporate XX%, fourth large the $XX XX% fourth and million California. $XX in million driven Contractors, prior of same a increased quarter of for a absence quarter

segment. with still to performance Building Civil We but margin segments, are Specialty deliver in work pleased seeing do have and we Contractors the improved profitability we're consistent to from the

of million quarter adjusted higher reduction As G&A to tax lower B quarter net quarter benefit fourth mentioned, result a by period. lower compared the certain $XX per per $XX mostly the charge. SR partially the XXXX the last a the compensation results of EPS fourth other for or $X.XX to of for $XX or a disappointing of loss Tutor for XXXX, fourth I of fourth quarter modestly to expenses. quarter share $X.XX average expense. fourth compared attributable well adjusted due to expense WITH expenses, result just the XX, debt quarter last $XX the our to tax for which XXXX. term fourth to balance loss income share, quarter compared Perini million XXXX of for $XX $X as of XXXX as was million by the same corporate expense course, new the of benefit reported attributable Perini $X.XX for a primarily $XX Interest in was by related was, quarter we to were higher Net miscellaneous million that diluted of year Tax interest the was million, SR XX% million for quarter Tutor XXXX. for Again, driven impacted the Income year, in that negatively of increase the compared million, due offset non-cash to loan of XX same of fourth was expense as

discuss another of which our gears was operating XXXX shift let's highlight certainly results. and Now cash,

operating in driven overall. of that million, higher solid various new which efforts goal and to execution five XXXX. operating this noted, the last set by million strong increased our projects, again goal our we excess up project time It compared XX% XXXX, for record the year in merger to record. high in result, generation The fourth for Ron so, margin is which XXXX We achieved the cash generating a done and previous income was beyond. achieve and the generation year of expect we've annual marks was collection $XXX net on activities $XXX years cash was as cash last since Our is which

the that year, the the We before plan at is we using that still Turning end maturity date sheet, now during replacing June remaining $XX flat million our our of XXXX, retire debt million, notes the restricted this balance balance XXXX. the outstanding of to – that a or no revolver essentially convertible was million our XXXX with our of of net of to refinanced XX, Note repurchase B. at a our to in as against XXXX of purpose. credit third debt December facility $XXX $XXX the approximately the Term had quarter and we this end compared aside $XXX set cash Recall former $XXX million borrowings Loan of million new for revolver. already

Ron earlier, current we assessment guidance business stated $X.XX $X.XX range As of our on are market and our based XXXX to the outlook. EPS in initiating

Ronald Tutor

Gary, $X.XX to $X.XX.

Gary Smalley

$X.XX right. for federal of conditions $X.XX. appropriately we uncertainties remaining this COVID-XX this the That's local anticipated market and seeing funding including at supplemental the time, range are timing We uncertain by the state customers. presented and Ron. Yes, to considers believe

expected million is approximately me expected million, million with be million. and the amortization $XXX anticipated is million. So in to provide will which expense to closing, XXXX to XXXX approximately assumptions $XXX be be for be you Depreciation of $X Interest expense $XX about to non-cash. guidance. $XXX is expense let for G&A

anticipated average anticipated Ron, finally, diluted turn to And approximately to to is to million. to interest expenditures Weighted Our outstanding to Non-controlling shares XX% $XX call capital be effective approximately back for income million XX tax are $XX expected million. million the be approximately is rate over that, I'll expected to million. XX%. be you. $XX are to With approximately $XX for be XXXX XXXX

Ronald Tutor

a strong our by income, digit despite course, the now across company flow. margins begin all, impacts very that COVID-XX on had and double recap operating to We To Thanks, record results XXXX segment, of particularly Gary. that reduced. beginning record we programs underscored in optimistic just all should were widespread strong segments; revenue are underway and civil at with strong abate, future that to be remain cash the operating our growth is COVID-XX pandemics vaccination

the we with said, customer as likelihood from extremely federal increased In is benefit funding combined to find of ourselves overdue. targeted strong demand, addition, well positioned that the I've substantial, long infrastructure

backlog perspective with projects growth that term numerous a confidence our with together us bidding success. and be and provides Our again once long large will

for future. our obvious, projects not reiterate the will most Finally, this and very I we limited of the competition large change the very that that expectation pursuing, are into

it succeed. infrastructure over Our for to And operators the will in Thank most questions. complex I is marketplace and to opportunity the where the we turn that we to key largest projects country, we believe have you. best the

Operator

question-and-answer conducting time, with comes from Instructions] this be Thielman question session. Our At D.A. will we Davidson. first a proceed. Please [Operator Brent

Brent Thielman

range. picked jobs margins these that And I'm got that about Great. that right realistic is how you get to some But it in you've past, of I show above in up target see projects. reflected some the you've Thank the of to you. point XXXX, wondering, kind some that within now? you've might talked in you just versus up Ron, got what of to civil know XX% that that XX% have guidance in

Ronald Tutor

projects. some of You're very asking large or can all respond to listed question only our I own There's I The guidance. five six. is, me to thing, our

four you X And as remind or of CM double-digit years G&A offices. in XX, about And up them these them categorize margins sector, them which of margins have go we've XX% all and it end all of three will the York by talk civil New I'll rest of I XX% of talked the would all that the in about. high we the the And of The when finishes will on balance net May. that falls remaining. with civil that Terminal XXXX that's margin the category. conclude into high and that in exception April

of So you better job the of the at dealing. indication we're give margins level level that'll a

Brent Thielman

work and how in picked Okay. to to that – pretty quickly a And can up lot after this you you? then, some guess earnings material, of you're I up Is lot work. I need going know for XXXX? of ramp in Guam a

Ronald Tutor

this Ramping gross million just been making average in the out, remarkable. old year and has I year million. island X days the on doing And to our up own Saliba million an Tutor- now since XXX has Guam we to XXX profit XXth Guam were been dramatically, probably and from XX XXXX. and year dominant of million, is

I of that this think operation where our Guam, the work government have a revenue $XX I public a our between Black exceeded net record growth profit and it's Indian a million. we exceeded and Garcia million in large $XXX the before and believe end of Ocean, the Diego in and year operation taxes matter with

Guam this virtually government tripled with has incredible margin, array spending. revenue in up So continues go and to and of

that enough If five bottom our where billion I it the bid you become world, a would In in strong have a has where has not of that, ago, presence, or of had to said years a over four list such. very XXXX. to government area impact remember, big I said line, published certainly it's dollars we've so the

Brent Thielman

that to work, clarity any related these whether know also to just new question, bid of wonderful agencies to seen more things I bill. it's of table, forward? Last some back know, brings this way this some in terms Okay. an the you've around sense, guess, in to infrastructure it just in the delays moving is And clarity getting of you

Ronald Tutor

those most a since civil and talked combination, owners to I I of regularly. from major Well, to a we're think anywhere XX it's dozen projects, tracking

to the the around has delays in with pandemic. uncertainty Some do

number now Some overall funded. funding. they has I'm then the discovering of following delays a we speak, are as days a number from the within in will And of be government. XXX next the them believe

the to continue continue only means happening, I they're million, put $XXX as with are. to projects a those in documents. demean our million, mega not these what's So $XXX We're undated that me, And And we're billion funded. routine up. pre-qual. dollars. line to in not And million qualification of to about jobs excess hate we if talking they And they're jobs. But I'm projects $XXX to in talking big

that going of this remain there's that by third plus we the in billion to infrastructure to So year. major work category very beginning award quarter be optimistic

Brent Thielman

Thank Ron. you, Okay.

Ronald Tutor

You’re welcome.

Operator

is question proceed. with Steven Please UBS. from next Our Fisher

Steven Fisher

lot, a and difficult nice very in a job year. Thanks

on? burning off of on Are Just discussion, of year-over-year, And guess, could I just half year-over-year. this that do and these picking get that, is quarter And you the up XXXX second versus think is like really half to backlog, Certainly are the the last yet? the going of the the down the you that to of first that you revenue if what to line trend year depends hasn't think guys hit of year go should second backlog terms you're projects of half of the of the up that in How this understand the trying work? then half year year? trying in of the in just presume some it still thinking in we third kind be year decline and that? were progression see kind as about that first how that's we awarded

Gary Smalley

won't part you Ron, mind Yeah. hit last revenue and the you part. do if I’ll the

So for now less we're a essentially year, first Steve, part entire mostly right but for trending latter little than of year half for the looking flat the the flat, year. revenue the the of is what at flat

that's the with and over projection. that be new our to uncertainties think But we in probably right part conservative the tell of south in the now overall awards you but now. and uncertainties, of and for flat flat bit quarters relatively I latter we're we right is can guidance about the really, flat, trying little are trending what year from noted year most quite a where

Ronald Tutor

Steven, the a speak at a looking proposing the don't Gary even see turning only, before quarter. in any I’ll did well, to as year because contracts third flat I we're impact. price

owners be the billion fourth quarter. bid projects four talking to they they're where awarded However, I engage I’m funded. in and know regularly the of third in that quarter, by and the personally will They will $XX

So the won't costs part the see when latter quarter following to revenues you're I first and of think right. say till quarter, we'll third see absolutely We fourth the and year. begin and significant I

earnings it's revenue profitable I the will accordingly and where a you don't work work, that excellent So, replace we think bottom XXXX, line an in uptick if you backlog see hard significant to have to the of in be we'll although grow because continue finish.

So I to just look this be for year flat. flat revenue --

year I awards a of this the we basis as big year. next out, be as think our but earnings be solid, upswing will again next pointed would

Steven Fisher

and we that. look just the that play about terms cash flow, Appreciate calendar you clear. very guess of of in what's think have out? is I And year this That how adjudication should might that the like Okay.

Ronald Tutor

speak, will the But certain not of until strong cash aware and chosen continue will settlements to, that we to flow. significant be for obvious for way. will I see that the had reason I've me number very leading to they’re XXXX a final I a look that excuse this executed by be all flow this we the settlements are of not -- no You collections reasons settled cash owners. significant contribute finally significant very XXXX stages, to or as to year And in speak our with have exceed that XXXX.

Steven Fisher

the specialty XXX the to still up couple Okay, to done kind corner basis those still a mentioned do think get at you there, points? side, what you of you've great. that extent then some margins turned work do having and And what to lastly, to be now has on

Ronald Tutor

And the and the back years appropriate it. impacted that of earnings. XX XX and really guide course, claims margin, to settle literally been cleaning an is making those old continue what happening We to we But is go ago up, X%. settling have they X% margin believe the we and haven't

review contracts that ending four years, the As past, the claims haven't acquired that's problems the old that has write-downs out all have they litigations margin. we it. really old up affected high to existing closing collections, five the and of been last cleaning and It's caused the in been with the

group. on old that what year victor, their does the making up the this of much muddy end be in they're of problem. the should is really very So is nearing the new This specialty what the work, to clean costs, against which

this So in negative year, And a number that uptick significant I'm hope in you'll the up an will group. year of those this claims think get whatever takes. I it old be specialty cleaned

Steven Fisher

lot. a Thanks Perfect.

Operator

is Rygiel from Riley Alex Our with proceed. final FBR. question Please B.

Alex Rygiel

you. dollars it that? potential big Ron, light competition. especially you available, bit federal mentioned for last deeper be of Can a years limited cycle. late Clearly, party Thank the we should in in more and you back all to or they how they're than about XXXX appears dig today compete of sort being stimulus a back, But really few into don't competition XXXX? and back of do XXXX? and think you Or rushing calendar until with XXXX think come in sort think to the immediately? Do come you you little

Ronald Tutor

will I took. this, a and back will and you'll ability come of will Well, a number low come no the let have seen me There's capacity think firm in, I aware speak believer, player. Skanska better will come back the prices. issues I'm to they those they one again. impact digested size think the will And tremendous in they they major back a in drive those they to as their that a I as have Once leaping be come in, they believe they've of losses Everybody's competitor. marketplace, times. And say. to and have back losses a I then understanding. you was

a got and much the deliver care cost low to bidder, billion how these hard have you on have Becho see potential are we're what people you if have -- Because see peers my may you them bid, largest at and to After ability left and others Fluor player. one still and of US. In I the organization losses I infrastructure these bidder you in and program. is there's angry. taken dollar given one in world And less for the think role. they're don't I to Their if only here Kiewit be care you cost taking the got and and have, got to so today, projects the role. can't the estimate. dollar a care the are marketplace. facts of like have that me ourselves, The say business, don't and the don't to of being Skanska, technical It's organization. compete. years. And haven't. makes They all the major still this projects. money think and the can't to expect I then cannot a talent role. anyone you it the I in they count hand, be our produce results they the that's a my trillion the don't Certainly, plus in I the their will you take see hear them been you significant is industry don't competitors back isn't Kiewit playing And to you money not at lifetime, in difficult. This Europeans less XX shakeup don't for And fact. a a taking I risk not I there. transparent and the remember don't

Alex Rygiel

improve? that to little expand upon you pricing continue next and feel the a risk Do to over two bit to years contract you, more. if And can as

Ronald Tutor

Two contrary, we all downright Why I take, Quite used the you're We discussions unless in with risks. take the don't an to should our owner. place take the imposed things risk? take stupid. owner

both option is make level We contractor, to contracts risk and place acceptable a intelligent or risk. risks if they we These You don't and either budge don't or the is to of the bid bid. be on a price job won't particularly assuming or us. parties, Or day such fair desirable simply it's shifting the the are equitable risk we an have longer at to one. owner the it of we risks The no over.

Alex Rygiel

helpful. Thank you. Very

Operator

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

Ronald Tutor

us. of you all was Until thank enjoy being news. It you. the good and bearer indulging great for we call the a next call, Thank

Operator

concludes This conference. today's

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

Tutor Perini (TPC) 25 Feb 212020 Q4 Earnings call transcript