Tutor Perini Corporation (NYSE:TPC) Q3 2019 Earnings Conference Call - Final Transcript

Nov 06, 2019 • 05:00 pm ET

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Tutor Perini Corporation (NYSE:TPC) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Tutor Perini Corporation Third Quarter 2019 Earnings Conference Call. My name is Kevin, and I'll be your coordinator for today. At this time, all participants are in a listen-only mode. Following management's prepared remarks, we'll 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 call over to our host for today, Mr. Jorge Casado, Vice President of Investor Relations. Please proceed.

Executive
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 are based on 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 can be found in our unaudited investors report, which is posted in the Investor Relations section of our website.

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

Executive
Ronald N. Tutor

Thank you, Jorge. Good afternoon, and thank you all for joining us. As you saw in our earnings release and as we had expected and hoped, our operating cash generation was extraordinary in the third quarter setting a new quarterly record that shattered the previous record by 38%. Our strong cash flow was driven by significant collections associated with several settlements, which we discussed during our last earnings call as well by progress made toward resolving other disputes and overall effective management of our working capital as we continue advancing our larger projects.

Of course, I'm pleased with the progress we have made on cash generation and expect that operating cash to be strong again in the fourth quarter and particularly strong in 2020 the next year. Despite the fact that our third quarter earnings were reduced once again by weather, delays on Newark, owner milestone delays on Purple Line Section 2 and a delayed start on the Minneapolis Southwest Rail, I still remain confident in our ability to achieve the lower end of our 2019 earnings projections. In addition, significant negotiations have taken place in the first three quarters of 2019, including the previously announced resolve of all delays to date and the immediate payment for those delays on the high-speed rail.

Furthermore, we are negotiating significant changes that have been added to the project by the owner, with the extension of over 12 miles of intrusion barrier walls as