Tutor Perini Corporation (NYSE:TPC) Q2 2019 Earnings Conference Call - Final Transcript

Aug 08, 2019 • 05:00 pm ET


Tutor Perini Corporation (NYSE:TPC) Q2 2019 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Tutor Perini Corporation Second Quarter 2019 Earnings Conference Call. My name is Doug, and I'll be your coordinator for today. [Operator Instructions]

I would now like to 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 your participation today. Joining us on the call are Ronald Tutor, Chairman and CEO; and Gary Smalley, Executive Vice President and CFO. Before we discuss our results, I'll 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 most recent 10-K, which was filed on February 27, 2019.

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. In addition, during today's call, we will be discussing certain non-GAAP financial measures. The appropriate GAAP financial reconciliations are incorporated in our earnings release, which we issued earlier today and filed with the SEC, and which is also posted in the Investor Relations section of our website. 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. As you saw on our earnings release, we were required to take a non-cash goodwill impairment charge in the second quarter triggered by a sustained decrease in our stock price that has occurred since our first-quarter earnings release in May of this year. While the impairment is significant in size, it is not the result of our contract execution or in any way indicative of our business outlook. I don't like having to deal with the impairment charge, but I'm as positive about the future of our business as I have ever been.

We remain in an -- advantageous competitive position with the same strong market demand for our services as reflected in our significant new awards over the past year, our near-record backlog and the extraordinary number of new project opportunities. I would reiterate that goodwill impairment charge was strictly driven by the dramatic downturn in our stock price. That impairment charge once again has no effect on our cash flows, our financial strength or our ability to execute our existing working backlog or compete for future opportunities.

Excluding the impairment job, our second quarter results were negatively impacted by significant delays on certain projects, specifically those major one being owner-driven delays continuing on California High-Speed Rail and significant weather impacts, rain and wind, on the Newark Airport Terminal One in New Jersey, which have shifted the timing of revenue and profit contributions forward into the fourth quarter this year and into 2020. Despite various commitments rendered by high-speed rail over the last three years,