Tutor Perini Corporation
Tutor Perini Corporation (the "Company") is a leading civil and building construction company offering diversified general contracting and design/build services to private clients and public agencies throughout the world. We have provided construction services since 1894 and have established a strong reputation within our markets by executing large complex projects on time and within budget while adhering to strict quality control measures.
We offer general contracting, pre-construction planning and comprehensive project management services, including the planning and scheduling of the manpower, equipment, materials and subcontractors required for a project. We also offer self-performed construction services including excavation, concrete forming and placement, steel erection, electrical and mechanical services, plumbing and HVAC. We are known for our major complex building project commitments as well as our capacity to perform large and complex transportation and heavy civil construction for government agencies and private clients throughout the world.
Third Quarter and Nine Month Results
Revenues from construction operations were $1.2 billion for the third quarter of 2011, as compared to revenues of $731.8 million for the third quarter of 2010. Net income was $35.5 million for the third quarter of 2011, as compared to net income of $30.9 million for the third quarter of 2010. Diluted earnings per common share were $0.74 for the third quarter of 2011, as compared to diluted earnings per common share of $0.65 for the third quarter of 2010.
Revenues from construction operations were $2.6 billion for the first nine months of 2011, as compared to revenues of $2.5 billion for the first nine months of 2010. Net income was $62.1 million for the first nine months of 2011, as compared to net income of $84.6 million for the first nine months of 2010. Diluted earnings per common share were $1.30 for the first nine months of 2011, as compared to diluted earnings per common share of $1.73 for the first nine months of 2010.
The increase in operating results from the third quarter of 2010 primarily reflects the contributions from acquisitions the Company has completed over the past 12 months, offset by the substantial completion of successful large public works projects in the Building and Civil segments.
Operating results decreased from the first nine months of 2010 due primarily to the substantial completion of large public works projects in the Building and Civil segments offset by contributions from the acquisitions the Company has recently closed.
At September 30, 2011, working capital was $682.0 million, an increase of $89.1 million from $592.9 million at December 31, 2010. The Company had $165.0 million available to borrow under the revolving credit facility. The Company believes its financial position and credit arrangements are sufficient to support the Company’s current backlog and anticipated new work.
Backlog at $6.4 billion
The backlog of uncompleted construction work at September 30, 2011 was $6.4 billion, an increase of $1.4 billion from backlog reported at June 30, 2011 and an increase of $2.1 billion from $4.3 billion reported at December 31, 2010. The $1.4 billion net increase is attributable to backlog acquired through acquisitions of $1.6 billion, and new awards and adjustments to contracts in process, which added $1.0 billion, offset by revenue earned during the quarter. Additions to new work during the third quarter of 2011 include a $143 million highway interchange reconstruction project in Maryland, a $93 million office building in northern California, a $70 million educational facility in Philadelphia, and a $60 million overhead coverage protection facility in Iraq.
Outlook
The Company is refining its guidance for 2011 revenues to an estimated range of $3.6 to $3.8 billion and diluted earnings per common share to an estimated range of $2.00 to $2.10 per share. Ronald Tutor, Chairman and CEO, said: “Our overall results for the quarter reflect the benefits from recent acquisitions. As we progress with the integration of our recent acquisitions, we are actively capitalizing on new market opportunities to enhance our margins. We believe the combined company is well positioned for growth as the U.S. economy begins to recover.”
Civil Group
Our Civil Group is comprised of the operations of Tutor-Saliba Corporation, Tutor Perini Corporation, Cherry Hill Construction, Inc., Lunda Construction Company, and Frontier-Kemper Constructors and is engaged in public works construction throughout the U.S., including the repair, replacement and reconstruction of public infrastructure such as highways, bridges and mass transit systems. We have been active in civil construction since 1894 and believe we are expert at managing large, complex civil construction projects. Our corporate integrity, financial strength and outstanding record of performance on challenging civil works projects pre-qualifies us for projects in situations where smaller, less diversified contractors are unable to do so. This is a competitive advantage that makes us an attractive partner on the largest infrastructure projects and prestigious DBOM (design-build-operate-maintain) contracts, which combine the nation's top contractors with engineering firms, equipment manufacturers and project development consultants in a competitive bid selection process to execute highly sophisticated public works projects.
Building Group
The Tutor Perini Building Group is comprised of Perini Building Company, Inc., Tutor-Saliba Corporation, James A. Cummings, Inc., Rudolph and Sletten, Inc., Keating Building Corporation, and Anderson Companies and focuses on large, complex projects in the hospitality and gaming, sports and entertainment, educational, transportation and healthcare markets. We believe our success results from our proven philosophy, "Building Relationships on Trust," and our ability to manage large, complex projects with aggressive fast-track schedules, elaborate designs and advanced systems while providing accurate budgeting and strict quality control. Although price is a key competitive factor, our strong reputation, long-standing customer relationships and significant level of repeat and referral business have enabled us to achieve our leading position. Our reputation for completing projects on time is a significant competitive advantage in the building market, as any delay in project completion may result in significant loss of revenues for the owner.
Specialty Contractors Group
Our Specialty Contractors Group is comprised of Five Star Electric, Fisk Electric, WDF, Desert Mechanical, Nagelbush Mechanical, and Superior Gunite and serves to complement and enhance our mechanical and electrical capabilities. The Specialty Contractors group has a sizable presence in New York, Texas and California and partners with other Tutor Perini companies throughout the United States.
Management Services Group
Comprised of Perini Management Services Inc. (PMSI) and Black Construction, the Tutor Perini Management Services Group provides diversified construction and design-build services to the U.S. military and government agencies, surety companies and multi-national corporations. PMSI and Black are well known for their ability to plan and execute rapid response assignments and multi-year contracts through diversified construction and design-build abilities. We have consistently demonstrated superior performance on competitively bid or negotiated multi-year, multi-trade, task order and ID/IQ (Indefinite Delivery/Indefinite Quantity) construction programs.
We have been selected by the federal government for significant projects related to defense and reconstruction projects in Iraq and Afghanistan. Black Construction Corporation of Guam is one of the most successful contractors in Guam and the Western Pacific.
The Management Services Group is also under agreement with major North American surety companies to provide rapid response, contract completion services. Upon notification from the surety of a contractor bond default, we provide management or general contracting services to fulfill the contractual and financial obligations of the surety.
