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

Feb 27, 2019 • 05:00 pm ET


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


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Good day, ladies and gentlemen, and welcome to the Tutor Perini Corporation Fourth Quarter and Full Year 2018 Earnings Conference Call. My name is Sherry 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 call is being recorded for replay purposes. (Operator Instructions)

I will now turn the conference over to your host for today, Mr. Jorge Casado, Vice President of Investor Relations. Please proceed.

Jorge Casado

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

Before we discuss our results, I will remind everyone that during today's call, we will be making forward-looking statements, which reflect management's current assessment of existing trends and information. There is an inherent risk that our actual results could differ materially. You can find our disclosures about risk factors that could potentially contribute to such differences in our 10-K, which we are filing today. The Company assumes no obligation to update forward-looking statements whether as a result of new information, future events or otherwise, other than as required by law.

With that said, I will turn the call over to Ronald Tutor.

Ronald N. Tutor

Thanks, Jorge. Good afternoon and thank you for joining us. We delivered excellent fourth quarter results highlighted by strong operating margins across all segments, particularly improved performance in the Specialty Contractors segment and a very large volume of new awards that enabled us to grow our backlog by 28% year-over-year, setting a new record of $9.3 billion. Further, we added $2 billion of new awards in the fourth quarter and a total of $6.5 billion of new awards for the entire year, resulting in a book-to-burn ratio of 1.45.

Our strong backlog growth in the fourth quarter was broad based across all three segments and was driven in particular by the $800 million Minneapolis Southwest Light Rail project, $245 million of funding for a technology project in California, $244 million of various electrical and mechanical projects in New York City, and a $100 million military facility for the air force in Saudi Arabia.

In addition, we generated solid operating cash of $56 million in the fourth quarter. The outlook for continued backlog growth in 2019 is excellent as we expect to and in fact are booking over $2.5 billion of identified awards during the first quarter of 2019. The largest of these is the $1.4 billion Purple Line Section 3 stations project which connects to the already awarded Purple Line 3 tunnels project which we received last year, and that goes to the Board for final approval tomorrow, which will be routinely processed. In addition, we see a sustained high level of demand in the pipeline of large civil works projects. Our growing backlog provides the upon which I expect to deliver revenue growth and increased earnings over