Tutor Perini Corporation (NYSE:TPC) Q4 2018 Earnings Conference Call Transcript

Feb 27, 2019 • 05:00 pm ET

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Tutor Perini Corporation (NYSE:TPC) Q4 2018 Earnings Conference Call Transcript

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Presentation
Executive
Ronald N. Tutor

the next three-to-five years.

We continue to be selective and disciplined in our bidding approach, as I've said previously. There are significantly more major civil works projects hitting the bid pipeline than we have the physical ability to man, the computation is limited at best, so we are selectively choosing those projects that give us the best opportunity to succeed.

As I've said previously, quite frankly, there are so few companies with the resources and experience to successfully undertake these projects that it's an interesting phenomenon facing the civil works industry today. And we have both the track record and the reputation of successfully executing these projects.

We will be bidding in the next 60 days the $400 million Eighth Avenue train control project similar to the Culver line we were awarded a $250 million earlier this year. Both projects are a part of the major works that New York City Transit continues to undertake to modify their antiquated signal systems throughout the entire transit system. If that were not enough in New York, we were recently appraised of the Mayor of New York City committing to a $52 billion infrastructure refurbishment program that will take place over the next four years.

Further, other large upcoming civil bids that we are committed to bid within our organization are: the $3.5 billion bus depot for the Port Authority of New York and New Jersey in downtown Manhattan; the $2 billion Brooklyn-Queens expressway in New York City; the $1.4 billion Portal swing bridge replacement in New Jersey; and $1.5 billion ...

Executive
Gary G. Smalley

Where are those ones for LaGuardia? The (inaudible).

Executive
Ronald N. Tutor

There are two feeder lines, one each at LaGuardia and at New York.

Executive
Gary G. Smalley

People movers.

Executive
Ronald N. Tutor

They're called people movers. They are $1.5 billion each and those will also hit the street I believe by the end of 2014.

Since the civil opportunities far outweigh our capacity, we will have to be selective in those we pursue. The Building segment's larger opportunities include: two convention center projects, one in Los Angeles, another in Las Vegas, collectively valued at $1.2 billion; a $700 million airport cargo facility called the Airglades Perishable Air Cargo Complex; and a $300 million project in Miami. There is a $300 million Los Angeles Civic Center P3 and a $250 million Healthcare project in California. More importantly, the Building segment has already $1 billion of pending awards that we expect to enter into backlog in 2019, including the Choctaw Resort & Casino expansion and two other hospitality and gaming projects. The Specialty Contractors segment is in the process of bidding over $500 million of mechanical and electrical projects in the next two to three months, and the bidding pipeline is robust to a point of again testing our capacities in that arena.

Next, I will provide some details on the more significant projects that contributed to our fourth quarter results, beginning with the Civil segment. On the West Coast, we continue to ramp up our work on Purple Line Section 2