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Tutor Perini Corp. Reports Operating Results (10-Q)

November 05, 2010 | About:
10qk

10qk

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Tutor Perini Corp. (TPC) filed Quarterly Report for the period ended 2010-09-30.

Tutor Perini Corp. has a market cap of $1.1 billion; its shares were traded at around $23.51 with a P/E ratio of 10.3 and P/S ratio of 0.2. Tutor Perini Corp. had an annual average earning growth of 17.9% over the past 10 years.TPC is in the portfolios of David Dreman of Dreman Value Management, John Buckingham of Al Frank Asset Management, Inc., Private Capital of Private Capital Management, Steven Cohen of SAC Capital Advisors.

Highlight of Business Operations:

Our backlog of uncompleted construction work at September 30, 2010 was approximately $4.0 billion compared to $4.3 billion at December 31, 2009. Additions to new work during the third quarter of 2010 include a $300 million casino in New York, a $25 million power plant in California and a $23 million educational facilities project in Arizona. The decrease in our backlog reflects the fluctuations and timing of the completion of existing work and awards of new work between quarters. While our overall backlog decreased during the third quarter of 2010, we have pending awards and prospects for both public and private sector customers that could enter backlog in the near future.

For the three months ended September 30, 2010, we recorded Revenues of $731.8 million, Income from Construction Operations of $50.0 million and Net Income of $30.9 million. Diluted earnings per common share were $0.65 for the third quarter of 2010, compared to $0.54 for the third quarter of 2009.

Overall Revenues decreased by $437.0 million (or 37.4%), from $1,168.8 million in 2009 to $731.8 million in 2010. This decrease was due primarily to a $497.2 million (or 48.9%) decrease in our Building segment revenues, from $1,017.8 million in 2009 to $520.6 million in 2010, resulting from the substantial completion of large hospitality and gaming work during 2009, which contributed approximately $453.9 million of revenues to the Building segment during the three months ended September 30, 2009, as well as other declines in revenues in the private nonresidential building markets due to continued financing challenges facing some of our customers in our Building segment. Civil segment revenues increased by $97.3 million (or 134.0%), from $72.6 million in 2009 to $169.9 million in 2010, due to an increased number of projects under construction in the metropolitan New York area which were awarded during 2009. Management Services segment revenues decreased by $37.1 million (or 47.3%), from $78.4 million in 2009 to $41.3 million in 2010, due primarily to the substantial completion of U.S. military facilities in Iraq and an airport runway in Guam.

Overall Income from Construction Operations increased by $7.5 million (or 17.6%), from $42.5 million in the third quarter of 2009 to $50.0 million in the third quarter of 2010, due primarily to an increase in our civil segment partially offset by decreases in our Building and Management Services segments. Civil segment income from construction operations increased by $21.0 million (or 333.3%), from $6.3 million in the third quarter of 2009 to $27.3 million in the third quarter of 2010, due primarily to the increase in revenues discussed above coupled with favorable performance on those projects. Building segment income from construction operations decreased by $10.6 million (or 27.3%), from $38.8 million in the third quarter of 2009 to $28.2 million in third quarter of 2010, due primarily to the substantial completion of large hospitality and gaming work during 2009. However, our Building segment achieved an increase in operating margin due to a higher mix of public works projects in 2010 and by increasing the amount of our self-performed work. Management Services income from construction operations decreased by $5.6 million (or 65.9%), from $8.5 million in the third quarter of 2009 to $2.9 million in the third quarter of 2010, due primarily to the decrease in revenues discussed above.

On a consolidated basis, Other Income (Expense), net was comparable between periods with a decrease of $0.1 million (or 20.0%), from $0.5 million in the third quarter of 2009 to $0.4 million in the third quarter of 2010. Consolidated Interest Expense decreased by $0.4 million (or 20.0%), from $2.0 million in the third quarter of 2009 to $1.6 million in the third quarter of 2010. This decrease was primarily due to a reduction in borrowings under our credit facility during the third quarter of 2010 as compared to the third quarter of 2009. Our consolidated Provision for Income Taxes increased by $3.5 million (or 24.5%), from $14.3 million in the third quarter of 2009 to $17.8 million in the third quarter of 2010, due primarily to the increase in pretax income between the periods.

For the nine months ended September 30, 2010, we recorded Revenues of $2,511.3 million, Income from Construction Operations of $140.0 million and Net Income of $84.6 million. Diluted earnings per common share were $1.73 for the first nine months of 2010, compared to $2.13 for the first nine months of 2009.

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