Tutor Perini 2Q14 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Backlog mix

“We ended the quarter with a backlog of $7.8 billion, up $1.2 billion compared to the second quarter last year. Our backlog mix is now 48% Civil, 26% Building and 26% Specialty. Our pending awards at the end of the second quarter were $4.2 billion, down slightly from $4.3 billion at the first quarter due to several large projects awarded.”

Cost to build some buildings

“Our Building Group had new awards and adjustments in the second quarter totaling $647 million. The largest awards included the $255 million Panorama Tower in Miami, Florida; the $120 million Broadway Plaza retail development project in California; and the $113 million Scarlet Pearl Casino Resort project in Mississippi. The Building Group’s backlog was $2 billion, up $275 million compared to the first quarter”

67m for dam excavation, 267 m for runway reconstruction

“The largest civil order book was the $67 million John Hart dam excavation and tunneling project in British Columbia, Canada. As I mentioned earlier, in the first week of July, Tutor Perini was awarded a contract by the Port Authority of New York and New Jersey valued at $267 million for runway reconstruction at the JFK International Airport.”

Specialty contractor project examples

“Significant new awards included 3 large electrical subcontracts totaling $104 million for Five Star Electric related to the Hudson Yards platform, a multi-unit residential tower and a mixed-use building all in New York; as well as a $26 million heating, ventilating and air conditioning project for WDF on a multi-unit residential tower, also in New York City.”

No end in sight to major civil works projects

“For our Civil Group, we continue to see a strong $10 billion pipeline of prospective work to be bid and awarded over the next 12 months. We are absolutely bidding the maximum of our physical capacity with what seems to be no end in sight in major civil works.”

Litigation in Boston and with MGM

“we’re in day-to-day continued to be negotiations and discussions with MGM and the insurance companies on a possible resolve of MGM CityCenter. We have a trial starting date of September 22 or thereabouts. So obviously, it’s coming down to the short strokes. I can’t really say whether there’s a high potential settlement in the offing or not, but it’s getting down to very short periods of time. Other than those 2 issues, I can’t really recall any pending litigation that might take place in the second half of the year.”

NYC is the most explosive market in the country

“New York City, which right now is the most explosive market in the United States, where it seems that, every day, another major project goes out to bid with very, very definitive lack of capacity.”

Capacity constraints in civil business

” think, nationally, the Civil business is growing with such leaps and bounds, there’s definitely capacity constraints, which the next step leads to better margins.”