Tutor Perini Corp. (TPC, Financial) filed Quarterly Report for the period ended 2009-09-30.
Tutor Perini Corporation formerly Perini Corporation is a leading construction services company offering diversified general contracting construction management and design/build services to private clients and public agencies throughout the world. The Company offers general contracting preconstruction planning and project management services including the planning and scheduling of the manpower equipment materials and subcontractors required for a project. It offers 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. It also offers self-performed construction services including excavation concrete forming and placement steel erection electrical and mechanical services plumbing and HVAC. Tutor Perini Corporation is headquartered in Framingham Massachusetts. Tutor Perini Corp. has a market cap of $907 million; its shares were traded at around $18.69 with a P/E ratio of 5.5 and P/S ratio of 0.1.
Income from construction operations decreased by $9.8 million (or 18.7%). Income from construction operations (excluding corporate) decreased by $3.7 million (or 6.5%). Building income from construction operations increased by $3.6 million (or 10.2%) due primarily to an improvement in gross margin in 2009 as a result of an increase in revenues from public works projects during the period. Civil construction income from operations decreased by $3.7 million (or 37.0%) due to favorable performance on a civil infrastructure job that occurred in the third quarter of 2008 that did not occur during the same period in 2009. Also contributing to the decrease was higher general and administrative expenses due to the inclusion of a partial quarter of Tutor-Saliba in 2008 as compared to a full quarter in 2009. Management services income from operations decreased by $3.6 million (or 29.8%) primarily due to favorable performance on a military base in Afghanistan that occurred in the third quarter of 2008 that did not occur during the same period in 2009. Corporate general and administrative expenses increased due to a partial quarter of Tutor-Saliba corporate general and administrative expenses in 2008 as well as acquisition costs and expenses related to the merger and integration of Tutor-Saliba, which reduced income from construction operations by $6.1 million. On a pro forma basis, including Tutor-Saliba, income from construction operations was $46.8 million for the three months ended September 30, 2008.
Other income decreased by $2.2 million, from $2.7 million in 2008 to $0.5 million in 2009, due primarily to a $2.1 million decrease in interest income from lower average interest rates and a lower average investment balance in 2009. Interest expense increased by $0.9 million, from $1.1 million in 2008 to $2.0 million in 2009, due primarily to the increase in debt relating to the financing of transportation equipment and a temporary increase in borrowing under our revolving credit facility during 2009. The provision for income taxes decreased by $5.5 million, from $19.8 million in 2008 to $14.3 million in 2009. The effective income tax rate for the third quarter of 2009 was 34.8%, as compared to 36.7% for the third quarter of 2008. The effective income tax rate reflects an adjustment between the tax provision and the tax return for the prior year.
Revenues increased by $ 12.4 million to $4,069.8 million, gross profit increased by $77.4 million, income from construction operations increased by $35.1 million, and net income increased by $16.8 million (or 19.1%) to $104.6 million in 2009. The performance in the first nine months of 2009 reflects improved profit contributions in all segments, due in part to the addition of projects from the merger of Tutor-Saliba and acquisition of Keating. Basic earnings per common share were $2.15 for the first nine months of 2009, compared to $3.01 for the first nine months of 2008. Diluted earnings per common share were $2.13 for the first nine months of 2009, compared to $2.96 in the first nine months of 2008. The reductions in earnings per share reflect the increase in the number of common shares outstanding as a result of the merger with Tutor-Saliba.
Income from construction operations increased by $35.1 million (or 26.2%). Income from construction operations (excluding corporate) increased by $49.9 million (or 33.4%). Building income from construction operations increased by $8.1 million (or 7.2%) primarily due to an improvement in gross margin in 2009 as a result of an increase in revenues from public works projects during the period. Civil construction income from operations increased by $27.1 million (or 199.3%) due primarily to the increased revenues discussed above. Management services income from operations increased by $14.7 million (or 62.0%) due primarily to the increased revenues discussed above. Corporate general and administrative expenses increased due to a full nine months of Tutor-Saliba corporate general and administrative expenses in 2009 as well as acquisition costs and expenses related to the merger and integration of Tutor-Saliba, which reduced income from construction operations by $14.8 million. On a pro forma basis, including Tutor-Saliba, income from construction operations was $173.8 million for the nine months ended September 30, 2008.
During 2009, we used $52.1 million in cash to fund operating activities. The negative cash flow from operating activities is primarily due to the timing of receivables on certain large projects. We also used $30.0 million in cash to fund investing activities, principally for the purchase of property to be used in our building and management services segments, and also to fund the $44.8 million acquisition of Keating. These investing cash outflows were partly offset by a cash balance of $37.9 million recorded in connection with the acquisition of Keating. We received $31.6 million in cash from financing activities, primarily from a $35.0 million note collateralized by transportation equipment owned by us and two notes totaling $9.7 million to finance the property acquisitions in Guam. The $125.0 million of cash borrowed under the Revolving Facility in the first half of 2009 was repaid in July 2009. As a result of the activities described above, our cash balance decreased by $50.5 million during the first nine months of 2009.
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Tutor Perini Corporation formerly Perini Corporation is a leading construction services company offering diversified general contracting construction management and design/build services to private clients and public agencies throughout the world. The Company offers general contracting preconstruction planning and project management services including the planning and scheduling of the manpower equipment materials and subcontractors required for a project. It offers 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. It also offers self-performed construction services including excavation concrete forming and placement steel erection electrical and mechanical services plumbing and HVAC. Tutor Perini Corporation is headquartered in Framingham Massachusetts. Tutor Perini Corp. has a market cap of $907 million; its shares were traded at around $18.69 with a P/E ratio of 5.5 and P/S ratio of 0.1.
Highlight of Business Operations:
Revenues decreased by $243.8 million to $1,168.8 million, gross profit decreased by $0.1 million, income from construction operations decreased by $9.8 million, and net income decreased by $7.4 million (or 21.8%) to $26.7 million. These revenue and profit decreases primarily reflect the completion of projects and a lower volume of new work. Basic earnings per common share were $0.55 for the third quarter of 2009, compared to $1.03 for the third quarter of 2008. Diluted earnings per common share were $0.54 for the third quarter of 2009, compared to $1.01 for the third quarter of 2008. The reductions in earnings per share reflect the decrease in net income and the increase in the number of common shares outstanding as a result of the merger with Tutor-Saliba.Income from construction operations decreased by $9.8 million (or 18.7%). Income from construction operations (excluding corporate) decreased by $3.7 million (or 6.5%). Building income from construction operations increased by $3.6 million (or 10.2%) due primarily to an improvement in gross margin in 2009 as a result of an increase in revenues from public works projects during the period. Civil construction income from operations decreased by $3.7 million (or 37.0%) due to favorable performance on a civil infrastructure job that occurred in the third quarter of 2008 that did not occur during the same period in 2009. Also contributing to the decrease was higher general and administrative expenses due to the inclusion of a partial quarter of Tutor-Saliba in 2008 as compared to a full quarter in 2009. Management services income from operations decreased by $3.6 million (or 29.8%) primarily due to favorable performance on a military base in Afghanistan that occurred in the third quarter of 2008 that did not occur during the same period in 2009. Corporate general and administrative expenses increased due to a partial quarter of Tutor-Saliba corporate general and administrative expenses in 2008 as well as acquisition costs and expenses related to the merger and integration of Tutor-Saliba, which reduced income from construction operations by $6.1 million. On a pro forma basis, including Tutor-Saliba, income from construction operations was $46.8 million for the three months ended September 30, 2008.
Other income decreased by $2.2 million, from $2.7 million in 2008 to $0.5 million in 2009, due primarily to a $2.1 million decrease in interest income from lower average interest rates and a lower average investment balance in 2009. Interest expense increased by $0.9 million, from $1.1 million in 2008 to $2.0 million in 2009, due primarily to the increase in debt relating to the financing of transportation equipment and a temporary increase in borrowing under our revolving credit facility during 2009. The provision for income taxes decreased by $5.5 million, from $19.8 million in 2008 to $14.3 million in 2009. The effective income tax rate for the third quarter of 2009 was 34.8%, as compared to 36.7% for the third quarter of 2008. The effective income tax rate reflects an adjustment between the tax provision and the tax return for the prior year.
Revenues increased by $ 12.4 million to $4,069.8 million, gross profit increased by $77.4 million, income from construction operations increased by $35.1 million, and net income increased by $16.8 million (or 19.1%) to $104.6 million in 2009. The performance in the first nine months of 2009 reflects improved profit contributions in all segments, due in part to the addition of projects from the merger of Tutor-Saliba and acquisition of Keating. Basic earnings per common share were $2.15 for the first nine months of 2009, compared to $3.01 for the first nine months of 2008. Diluted earnings per common share were $2.13 for the first nine months of 2009, compared to $2.96 in the first nine months of 2008. The reductions in earnings per share reflect the increase in the number of common shares outstanding as a result of the merger with Tutor-Saliba.
Income from construction operations increased by $35.1 million (or 26.2%). Income from construction operations (excluding corporate) increased by $49.9 million (or 33.4%). Building income from construction operations increased by $8.1 million (or 7.2%) primarily due to an improvement in gross margin in 2009 as a result of an increase in revenues from public works projects during the period. Civil construction income from operations increased by $27.1 million (or 199.3%) due primarily to the increased revenues discussed above. Management services income from operations increased by $14.7 million (or 62.0%) due primarily to the increased revenues discussed above. Corporate general and administrative expenses increased due to a full nine months of Tutor-Saliba corporate general and administrative expenses in 2009 as well as acquisition costs and expenses related to the merger and integration of Tutor-Saliba, which reduced income from construction operations by $14.8 million. On a pro forma basis, including Tutor-Saliba, income from construction operations was $173.8 million for the nine months ended September 30, 2008.
During 2009, we used $52.1 million in cash to fund operating activities. The negative cash flow from operating activities is primarily due to the timing of receivables on certain large projects. We also used $30.0 million in cash to fund investing activities, principally for the purchase of property to be used in our building and management services segments, and also to fund the $44.8 million acquisition of Keating. These investing cash outflows were partly offset by a cash balance of $37.9 million recorded in connection with the acquisition of Keating. We received $31.6 million in cash from financing activities, primarily from a $35.0 million note collateralized by transportation equipment owned by us and two notes totaling $9.7 million to finance the property acquisitions in Guam. The $125.0 million of cash borrowed under the Revolving Facility in the first half of 2009 was repaid in July 2009. As a result of the activities described above, our cash balance decreased by $50.5 million during the first nine months of 2009.
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