Tutor Perini Corp (TPC) 2009 Q4 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Q4 2009 Tutor Perini Corporation earnings conference call. My name is Glen, and I will be your operator for today. (Operator Instructions). I'd now like to turn the conference over to your host for today, Mr. Kenneth Burk, Executive Vice President and Chief Financial Officer. Please proceed.

Good afternoon, everyone. Thanks for joining us on Tutor Perini's fourth-quarter 2009 conference call. With us today is our President, Robert Band. Ronald Tutor, our Chairman and CEO, is attending a meeting with a customer and will be joining the call for closing comments and Q&A.

Before we start, I would like to remind our listeners that our comments today will contain forward-looking statements, including statements about future guidance. Management may also make additional forward-looking statements in response to your questions. These types of written and oral disclosures are made pursuant to the safe harbor provision contained in the Private Securities Litigation Reform Act of 1995.

Investors are cautioned that such forward-looking statements involve risk and uncertainties that can cause actual results to differ materially from anticipated results. The Company cautions that any such forward-looking statements are based upon assumptions that the Company believes are reasonable, but that are subject to a wide range of risk, and actual results may differ materially. These risks and uncertainties are disclosed in detail in our filings with the SEC, including Tutor Perini's Annual Report on Form 10-K for the fiscal year ended December 31, 2008; our definitive proxy statement filed on April 17, 2009; as well as in today's news release.

Our statements on this call are made as of today, February 25, 2010, and the Company undertakes no obligation to update any of these forward-looking statements contained in the call, whether as a result of new information, future events, changes in expectations or otherwise.

With those formalities out of the way, it is my pleasure to turn the call over to Bob Band.

Thanks, Ken. Good afternoon, everyone, and thank you for joining us on the call today. This quarter, we continued to generate momentum in our civil group, with 16% growth in civil backlog and a 41% increase in civil revenues, up from the third quarter.

For the year, we have nearly doubled the civil backlog from $528 million to $1 billion at the end of 2009. With increased focus on our civil business, we have positioned the Company for long-term growth and have a more diversified base of business in both the public and private sectors, achieving a good balance between building and civil markets.

Our backlog of uncompleted construction work at December 31, 2009, was $4.3 billion. New awards for this quarter include a $215 million tunnel in Caldecott, California, and a $48 million project for another phase of work for an existing solar panel manufacturing client in California.

Currently, we have approximately $1 billion of pending awards for which we have received positive indication from our clients, who have designated us as their preferred contractor. Due to continuing challenges for some customers to get project financing, we removed approximately $600 million from pending awards during the quarter and put them back in our prospects category. The breakdown of pending awards is $495 million in healthcare, $257 million in education, and $166 million in hospitality and gaming, and $84 million in other categories. We expect approximately 90% of these projects to enter backlog this year.

As we look ahead to 2010, our civil business is expected to provide us with the best growth opportunities. We estimate that more than 40% of our operating income in 2010 will come from our civil group. This is up from 21% in 2009. We estimate the size of our prospective opportunities in our civil infrastructure target market for roads, bridges and mass transit projects to be $24.3 billion for 2010. The breakdown is $6.3 billion in bridges, $7.5 billion in highways, $7.5 billion in mass transit and $3 billion in other categories.

There are over 50 projects included in our prospects list that have an estimated value greater than $100 million each.

In spite of the sluggishness in the nonresidential building markets, there are some signs of economic recovery. Project financing remains the biggest issue for most of the building market. For the building group, we have identified and are attracting approximately $11.4 billion in targeted projects, most of which could be bid and awarded in 2010.

A significant portion of this market is in the public sector, including corrections, education, municipal office and transportation buildings. For example, the correctional facility market, both public and private, has heated up, with estimates of 200,000 beds to be built over the next five years. Additionally, healthcare, industrial buildings, and gaming and hospitality outside of Nevada will present opportunities for us this year.

Las Vegas continues to be a depressed market for new construction work. The Fontainebleau property is in the process of being sold through bankruptcy proceedings through a development team led by [Cowell Icon]. MGM CityCenter opened in December. We're in the process of closing out open commercial issues, which are expected to be finalized in second quarter. Cosmopolitan will be completed later in 2010, and to date we have not experienced any funding issue on either project.

As for Management Services, we are finally beginning to see some of the larger proposal opportunities in Guam surface, which should contribute to new work awards in a more meaningful way in the second half of 2010. The strategic realignment of US forces, including the relocation of 8000 US Marines and their dependents from Okinawa to Guam, is starting to generate project opportunities for the Company.

Our team has submitted its proposal to the US Navy for a $4 billion indefinite delivery/indefinite quantity, ID/IQ, construction project. And the Navy intends to award at least three ID/IQ contracts covering a base year and four one-year option periods. Work under these contracts will include wharf repairs and construction, aircraft parking aprons, taxiways, runways and hangars, as well as general and special-purpose buildings. Selection is anticipated, again, for early 2010.

In addition, separate competitive construction opportunities on Guam for infrastructure utilities, housing, medical, education and other facilities are anticipated throughout 2010, '11 and beyond. For example, the [Memiso] program, which is the Japanese government-funded portion of the construction program on Guam, is expected to exceed $2.5 billion.

Prospects for new work in Iraq and Afghanistan continue on a limited and very competitive basis. On the other hand, Perini Management Services was recently awarded a $400 million multiple award Task Order contract for comprehensive technical design-build and construction services for all US Fish and Wildlife Service's regional and central offices and other bureaus within the Department of the Interior. At least a dozen requests for proposals have been received to date from the US Fish and Wildlife Services and US Geological Services under this Task Order contract. And today, we received our first task order award from this contract. We are tracking US Departments of State and Defense projects expected to be bid in 2010, as well as private work through sureties and multinational clients.

Now Ken will give you the financial details for the quarter.

Thank you, Bob. Our net income was $32.5 million for the fourth quarter of 2009 as compared to a net loss of $163 million for the fourth quarter of '08. Excluding a $202.8 million after-tax noncash impairment charge related to valuation of goodwill and other intangible assets, the fourth quarter of 2008 net income would have been $39.9 million.

For financial comparison purposes, I will provide our fourth-quarter 2008 results excluding the impact of the impairment charge I just mentioned. Diluted earnings per share were $0.66 for the fourth quarter of 2009 as compared to $0.79 for the fourth quarter of 2008. We ended the fourth quarter with a backlog of $4.3 billion.

The breakdown by business group of our backlog at December 31, '09, is as follows -- the building group, $3.1 billion; civil, $1 billion; Management Services, $182.9 million. The breakdown of the total building group backlog by major end market type is as follows -- hospitality and gaming, $783.8 million; transportation facilities, $737.1 million; healthcare, $713.3 million; municipal buildings, $460.8 million; education, $105.7 million; industrial, $255.9 million; and other building markets, $69.3 million.

The civil group backlog breakdown is as follows -- Mass transit, $457.8 million; highways, $319.5 million; and bridges, $181.9 million, with an other category at $42.3 million. Management Services backlog is predominantly all government contracts.

In the fourth quarter of 2009, revenues were $1.1 billion, a decrease from $1.6 billion reported in the fourth quarter a year ago. On a reportable segment basis, revenues from our building group were $908.2 million, a decrease of 34.6% from $1.4 billion in the fourth quarter of '08. The projects at CityCenter and Cosmopolitan reached their peak and earned revenues during 2008, which would explain the decrease.

Revenues from our civil group were $102.5 million, which decreased by 13.1% from $117.9 million reported in the fourth quarter of '08. The decrease is due to the completion of Tutor-Saliba civil projects in California during the fourth quarter of '08.

Management Services revenues were $71.5 million, which decreased 25.1% from $95.5 million reported in the fourth quarter of '08. The decrease is due to the completion of a significant portion of our work in Iraq.

Our total gross profit decreased 20.5% to $87.6 million from $110.2 million in the fourth quarter of '08. This decrease is due to a $12.5 million write-down against the receivable from Fountainebleu and a lower volume of earned revenues during the period.

General and administrative expenses were $44.9 million, up fractionally from $44.8 million in the fourth quarter of '08. We expect a lower run rate in G&A going forward as we work off and move past one-time charges for severance and other integration-related costs experienced during the period.

We had income from construction operations of $42.7 million in the fourth quarter of '09 compared to $65.4 million in the fourth quarter of '08. Breaking down income from construction operations by group, our civil group income from construction operations was $3.6 million in the fourth quarter of '09, a decrease of $10.9 million from $14.5 million in the fourth quarter of '08. The decrease is primarily due to favorable close-out performance on three Tutor-Saliba civil projects in California during the fourth quarter of '08. In addition, the overhead during the fourth quarter of '09 was underabsorbed as new contracts awarded in the third and fourth quarter of '09 are beginning to ramp up.

Building income from construction operations for the quarter was $35.3 million, a decrease of 11.1% from $39.7 million in the fourth quarter of '08. This decrease was primarily due to the write-down for the Fountainebleu bankruptcy matter, partially -- which is also partially offset by higher profit margins from public works projects in our backlog.

Management Services income from construction operations was $15.1 million in the fourth quarter of '09, a decrease of 15.1% from $17.7 million in the fourth quarter of '08. This decrease, again, is due to the completion of work in Iraq.

Other income and expense was an expense of $1.3 million in the fourth quarter of '09 compared to income of $2.9 million in the fourth quarter of 2008. This is due primarily to lower interest earnings on available cash invested and other acquisition-related costs in 2009.

Interest expense decreased to $1.4 million in the fourth quarter of '09 from $2.4 million in the fourth quarter of '08. This is due primarily to lower average interest rates on debt balance during the fourth quarter of '09.

The provision for income taxes was $7.5 million compared to $26 million in the fourth quarter of '08. The provision was adjusted in the fourth quarter of '09 for a favorable variance in permanent tax liability differences from current and prior years. The incremental benefit to diluted EPS was $0.09 for the fourth quarter based on a tax rate of 37.5%.

Now, looking at our balance sheet at December 31, '09, our working capital stood at $303.1 million, up from $225 million at December 31, '08. This represents a current ratio of 1.23 to 1. As of December 31, '09, we had $348.3 million in cash and cash equivalents compared to $386.2 million at December 31, 2008. The decrease in our cash balance during '09 is due to normal completion of work and the timing of billings on the startup of new projects, as well as we had $37 million of investments in property and equipment and $29.1 million of cash received from financing activities. For the fourth quarter of '09, operating cash flow was $26 million.

At December 31, '09, long-term debt stood at $84.8 million, excluding the current portion, and we had $241 million under our credit facilities. In January of 2010, we amended our existing credit facility in order to increase our available borrowing capacity, which we intend to use for general working capital needs and potential acquisitions.

Stockholders' equity increased $150 million to $1.3 billion from $1.1 billion at December 31, '08, which was primarily due to the net income recorded during the period. We believe that our current financial position and credit arrangements provide us with adequate resources to meet our working capital requirements for executing existing and new projects.

Looking forward, our guidance for 2010 has been lowered from the ranges previously provided. Revenues are estimated to be in the range of $3.4 billion to $3.9 billion, and diluted earnings per share are estimated to be in the range to $2 to $2.20 per share. The ranges reflect our current view of new work prospects that could enter our backlog and be converted to revenue and profits this year.

Of our existing backlog, we estimate that approximately $3 billion in revenues will be earned this year. Our tax rate is estimated to be at 36.5% for 2010.

I will now ask to see if Ron Tutor has joined the call for his closing comments before we open it up to Q&A. Okay, I'll make a few comments here on his behalf, and then we will open it up for Q&A.

We enter 2010 a more integrated company, capable of leveraging our resources across all of our operations as we execute our strategy to grow our civil group and be a more vertically integrated company.

We will generate more momentum with our civil group this year and capitalize on core strengths in the building group as we work our way through current economic pressures. I believe that 2010 will be the beginning of a multiyear buildup in Guam as the US military construction program gets off the ground. We've placed a greater emphasis on earning higher margins and will perform an increasing share of work with our own forces in the future.

We like our geographic position and will be fully prepared to capture our share of new work as the economy improves through the course of this year.

That concludes our prepared remarks, and I would like to open it up for questions. And then if Mr. Tutor is able to join our call, then he may have some additional comments. So if it's okay, we will interrupt Q&A for that purpose.

(Operator Instructions). Richard Paget, Morgan Joseph.

So with the delta in guidance, what was the biggest change? Was it your pending awards that you took out? Was that the biggest change? Was it you didn't get some awards in the fourth quarter that you thought you might, or was it just bidding has slowed down a little bit?

It's Ken Burk. I would say the biggest reason is really related to bidding of new business and our success, also combined with some delay in receiving indication of new proposals. The pending award change that we mentioned really did not have an impact on us. Those were projects that we had hoped to see financing come together. We've had them, as you may know, for several quarters on our list, and we just felt that it didn't look like it was going to happen in the near term and decided that we would just put it in our prospects category.

Okay. And then one of your competitors this morning was talking about bidding on the Guam package, and they are a group of US-based companies. Have you seen a lot more competition for that particular contract, that you are seeing a lot more non-Guam-based companies try and get in on that piece of business?

This is Bob Band. There have been a lot of companies that have shown an interest in the work in Guam. However, remember, Guam is at the very tail end of a very long logistics chain. And Black Construction is very well positioned with a sizable workforce, a sizable equipment fleet and effectively supplies and warehousing already on the island and in use. So in order for someone to have a credible proposal, they must somehow figure out how to link these logistics challenges. We feel we're in very, very good position for this work.

Okay. And then just to make sure I understand how this contracts should go forward from here, is that the military is going to designate a couple contractors who are qualified, and then bid the packages out to those specific groups?

Well, that's just on the multiple award contract. Yes. They said they would designate at least three and then they will compete the work out. They have the ability to just source it directly to contractors, but typically they compete it.

Okay. And then that 2014 deadline, it seems that's getting closer and closer. Do you think once they designate the various contractors that they're going to accelerate some of these awards?

I would say there will be a mad dash to get a lot of the work out on the street, right.

Steven Fisher, UBS.

I'm just wondering, as a follow-up on Guam, has the military confirmed that they will award contracts while there is some, I guess, uncertainty as to the Japanese plans for their part of it?

Well, there's already proposal requests on the street for parts of it, which include the Japanese funding. So, yes, I think the project is moving ahead.

And sorry, can you just repeat, what are the next most immediate contracts under that program that you expect to be awarded?

Well, actually, we even have an outstanding proposal that has already been submitting, other than the ID/IQ proposal we're waiting to hear on that, which is an electrical project on Guam. So I would say there will be several projects that will be tendered under the Japanese-funded portion, sooner rather than later.

Okay. And then on the civil side, you talked about the large volume of prospects out there. Can you give us a sense of what actual bids you have outstanding?

It's Ken Burk. As you probably know, most all of the bids are public bids and are very quick in terms of the bidding process, being a bid that day and an opening of the bid results that day. So there really aren't any open proposals in the civil category of that nature.

We do have some design-build proposals, some public/private opportunities we're looking at. And I'm not aware of any particular pending outcome on those programs at this particular moment, but those could have a longer tail in terms of actually being in the running, and it may take a number of months before we know, though I think the shorter answer is there is really no open proposals at this particular stage.

On the international side, we have two outstanding proposals in Afghanistan. We're waiting to hear who the selected contractor is. They're best-value proposals, so they take longer to sort out. We have a proposal into the Coast Guard for their multiyear ID/IQ contract. That was proposed on a second time, following the results of a protest. And we also have a SEED project connected with that Coast Guard proposal.

Great. And so it sounds like, at least as far as the first quarter is concerned, we may not see any Caldecott Tunnel or JFK airport type projects this quarter?

No, I wouldn't say that. I know if Ron were on the call, he would certainly describe how busy we are in bidding and estimating work. I know we just talked this morning and talked about that we have four major bids that are being prepared for the month of March. So I think that we could still have some exciting news.

Sure. Any one of those could be awarded.

Okay, that's good. And then just on the -- you mentioned the closeout of the MGM CityCenter. What might that entail? Could that entail some incentives that might get booked, or could there be profit adjustments downward or some of both? What should we just be expecting there?

It's Ken. I think the way we're approaching this is we're working very closely with MGM in settling out all of the GMPs that were part of the agreement. We're working through remaining punch lists, and obviously we're looking at working out final payment arrangements.

So I would tell you that we have a position that we think is reasonable today. So I wouldn't be -- we're not in a position where we could predict an outcome up or down. I will tell you, however, that there are no additional incentives that are out there per our contract. That's not in the cards, and it was not originally part of our contract to begin with.

Okay. And then just lastly here, do you have any projects in backlog that are I guess kind of on hold, or would that just be stuff that is in the pending awards?

Well, it's a good question, Steve. Again, it's Ken Burk. We do have some projects that are in what we call a preconstruction activity mode that are in backlog that could take some time. As you probably recall, we talked about healthcare. Healthcare can have an extended preconstruction phase to it that could last several months of programming before the full work of revenue recognition, for example, would start.

The pending awards are a totally separate category. Those are classified as work that we have been identified as the preferred contractor, but we still haven't negotiated a final contract.

Okay, that's helpful. I'll get back in queue.

John Rogers, DA Davidson.

If we could go back just a second to the civil earnings in the quarter, and Ken, you mentioned that there were some higher costs involved there because margins dropped down a little bit or quite a bit, and I'm just trying to -- but you're expecting a pretty healthy ramp going into 2010. Is that just the project schedule, or maybe you could walk us through that a little bit more?

Yes, that's a good question, and actually, I'm glad you asked it, John. Basically, there was not additional costs. So that's not -- there weren't any particular project issues or anything like that. So there's no additional costs.

What we have here, and it was similar, to a lesser degree, in the third quarter, is really the ramping up of the civil business overall. And so that's why I made the comment earlier that we have in effect an underabsorbed overhead that needs to be balanced with the influx of new business to be earned.

So in other words, we view it as a timing item. We've ramped -- we are in the process of ramping up the projects that we were awarded in the third and fourth quarter. For example, JFK runway was essentially shut down during the winter months, but it's going to have a very, very aggressive and heavy schedule that will start -- I think March 12 is the date, which will give you an indication. And a lot of this lumpiness over a period of a couple of quarters will work itself out and be what we believe on target with our expectations in terms of margin.

Okay.

Does that help at all, John?

It does. It sounds like -- that implies, then, that at least the first quarter of 2010 will be similarly overhead to be absorbed?

Well, it could be, and we don't, as you know, give guidance for the quarters. But it's certainly possible, but we still are maintaining our guidance in terms of our expectations on margins, operating margins. It is just -- the other thing, back to the fourth-quarter comparison, John, we had three very good projects at Tutor-Saliba. We had the runway project, we had I-80, and we had a pier job in Long Beach that all three contributed very nice profits near the end of the project.

And again, this is part of the lumpiness of the business, which is why we really try and steer clear of trying to predict a quarter. It's hard enough just to get a year. But these are the kind of things that can play out.

Now, that being said, over time and over a stretch of three to four quarters, we feel pretty confident that that earnings stream will actually level out and achieve the type of targets that we've given.

Okay. And then just on the Fountainebleu charge that you had there, the $12 million, that was all in the building segment?

Yes.

Okay. And Cosmopolitan, you said scheduled to finish in the third quarter?

We didn't say that, but we think it will be the end of 2010. We're still working very closely with Deutsche Bank and their related companies in terms of really just nailing everything down. But we believe it will be finished by the end of this year.

Okay. And then finally, just relative to your cash position, how much -- to operate the business as you see it right now, how much working capital do you need?

We could push the replay button on this question, couldn't we, John? I think we maintain, and Bob can jump in, that we feel that $200 million working capital with our size of backlog and operation is adequate to do what we need to do. Obviously, we have maintained a position of a very strong balance sheet because we really are focused on growing our civil business and carrying forward that way.

So I can't really give you a definitive answer other than we've always kind of maintained that $150 million to $200 million range as a reasonable level under the circumstances. Bob, do you want to add anything to that?

And that's true. And then, of course, the acquisitions -- we have made acquisitions running as high as $50 million-plus each. So we typically finance those out of cash or a revolving credit arrangement. So I would say we're not outside the realm of being in a safe working capital position.

Okay. I was just trying to figure out how much might be left over for acquisitions or other opportunities.

Well, you know that we did increase our line of credit by $50 million. And we are looking at acquisitions opportunistically. We don't have, obviously, anything to report today, but we do have that in mind as we move forward. Of course, we will see how the market plays out through the course of this year.

Okay. And then lastly, if I could, any comments or thoughts on what you're seeing in terms of pricing in the market?

Pricing for -- what pricing?

Well, bid pricing on projects. I know that World Trade Center project was a little more competitive, and just any change in the market from your perspective?

I'll tell you frankly we have anticipated correctly that it's a very aggressively priced market right now. We're not wavering from our margin targets. We're pretty careful monitoring the pricing that goes on. And if a market gets priced to a point where we think it's too cheap to play in, we will move on to another market. That's typically how we look at it.

Okay. All right, I appreciate the color. Thank you.

Avi Fisher, BMO Capital Markets.

Ken, what was the value of that backlog on hold or in pre-construction activity mode?

We haven't reported that. It's not as -- I will just say that we haven't -- it's not a significant number in terms of the component of our $4.3 billion.

Okay. So it's less than 10%, or no comment?

No comment.

Okay. And just so I understand, Richard asked a question about the expectations for guidance. And as I understood it, you said the change in guidance was because of expectations of backlog that was going to enter the pipeline. Is that associated with the $600 million that you removed from pending awards?

No, I think I'd answered that, but I will mention it again. The $600 million was related to a couple of prospects that we had identified, that they had asked us to do the project, but ran into some of their own challenges getting them financed and dealing with some other owner-related issues.

So it wasn't that particular event that gave rise to our change in guidance. It really is about the amount of new business that we were able to book through the last quarter or two of '09 and what's transpired through the first few months of 2010.

And is that on -- is there any segment where that is really most dramatic, either -- is it in the private markets, the public markets?

Well, I would say that certainly the private market continues to be challenged, as we've indicated about financing. The credit markets have still been very challenging for customers to be able to get their projects financed. We have seen a number of competitive bidding events that have taken place. We bid the World Trade Center project a few weeks ago, and we were not successful. That was a 500 -- I think the winning bid was $542 million. So we would have loved to have won that job, and that certainly would have played nicely into 2010.

Okay, that's helpful. So it really -- and you had indicated in your prepared comments, I think Bob did, the percent of revenues you expected to come from civil?

No, Bob made a comment that operating income -- the contribution from civil to operating income is expected to be over 40% this year.

Over 40%.

Yes, which -- comparing it to '09 at 21% of operating income for 2009.

I got it. Okay. And again, John asked about the Fountainebleu write-down. That's all in building. So if we back that out, we get about a 5.3% EBIT margin in the building segment. Does that sound about right?

I don't have it calculated right in front of me, but I'm sure the math will work very clearly (multiple speakers) $12.5 million out.

Right. Are there any -- and I'm just trying to back out other one-time items. Were there any other ones in the quarter, or is that really it?

Well, I think the two that really are clear is the tax provision adjustment, which I went ahead and gave the $0.09, because I didn't want to make it too difficult to be able to get to with an assumed tax rate. And then the Fountainebleu, I mean, we obviously have had continued success in some of our projects, like with Management Services. We've had the continuation of just good performance, nothing that would strike out.

I did mention that we have worked through our integration and transactional costs from '09. We don't expect those to be repeated. I think we've held our $10 million to $12 million of run rate G&A improvement year over year. We still have that as our objective. And we believe we will hit that.

Okay. And you said you were maintaining your guidance on the civil segment margins. What are those again?

Well, I think we've said that we expect them to be in the double digits. We've said a couple of things, in the -- over 10%. We've also been quoted as saying 2.5 to 3 times what we see in the building business.

We're maintaining that objective, and we're quite happy with the projects that we have bid in the third and fourth quarter, starting with JFK and the Caldecott and Shasta, to name a few, and also the Greenwich Corridor Station for the World Trade Center. We're very, very happy with those project awards and their profit contribution that we expect to happen this year.

Thanks. And you mentioned that there was a first Task Order on the -- I think the Department of Interior [may talk today]. What is the value of that?

That is a small one, Avi. That's a remediation of an existing building. It's very small. But the significance of it is, it's really the beginning of a program of work, which as you know will spread over four years and will contribute we hope the full amount of the contract to us.

And while I have you, Bob, any Task Orders yet on the Coast Guard [META]?

The Coast Guard was -- they went out and asked for essentially a best and final based on the guidelines that were laid down by the GAO under a protest filed by one of the proposal offers that was not successful. So that's still under consideration right now.

Were you the low bid on that before the protest?

They had announced I think the award to five contractors, and we were one of the five. And then it was -- there was a protest. And after some -- I think it was about 100 days, the GAO sustained the protest, and the Coast Guard went out and essentially amended its solicitation. And we've already resubmitted. So we're waiting to hear.

Okay, thanks. And I just have just a very few quick more questions. In terms of backlog, what is the value of the Cosmopolitan remaining in backlog?

I don't have the exact number in front of me, but it's the lion's share of the gaming piece that I referred to earlier.

Okay. And McCarran, is that south of $1 billion yet, or --

Is it south of $1 billion?

Well, what's the value of that in backlog, I guess?

It represents the lion's share of the backlog breakout for end market that I gave you.

For --

For the transportation facilities.

Got you. And then the courthouse in San Francisco -- or San Diego?

That's San Bernardino. That is still in preconstruction phases, so there's not really much burned off on that job.

And the JFK runway, that is a very aggressive schedule, right? Is that all burning off in second quarter and third quarter?

Not necessarily. I don't remember exactly the schedule. But the original estimated completion date is in '11. So I think that we will see how it goes with weather and other circumstances. But again, we're very happy with the job and are looking forward to the ramp-up that's going to occur in a few weeks.

I asked a lot of questions. I appreciate your time. And Ken, you don't read Ron's script quite the way he does, so let's get him back next time.

Thank you, Avi. I will accept that as your criticism.

Richard Paget, Morgan Joseph.

Just a quick follow-up on John's question.

This is Ron Tutor. I tried to get in about five minutes ago and I've been run around by this conference call operator.

Okay. Well, I was just criticized for not doing a very good job on closing remarks. Would you like to provide some closing comments? We're right in the middle of the Q&A.

We're down to closing already?

We're down to Q&A. Do you have -- we covered the whole program, and we've handled -- I think each of the analysts have made a round through the calls or questions.

Well, is there any questions which would be specific to me that anybody wants answered?

Richard, you're up. Okay, I guess that's it.

Well, hold on a minute. Let's let them get re-grouped now that we've got our Chairman on the phone. Operator, do you have anybody in queue for a question?

Tyson Strauser, Longhorn Capital.

This question is for Ron. Ron, just based on the type of work that you are bidding in the market right now, what is the phasing profile of that work? In other words, given the revenue projections on your backlog and the amount of burn that you will run through in 2010, when do you need to have bid work in the backlog in order to keep a smooth profile going into 2011?

I would assume that awards that are made between now and the end of the second quarter would be in the ground by August or September. That would pretty much consistently support 2010. 2011, all awards then will probably peak. Any 2010 awards will peak in the 2011 year. And with a few exceptions, most of these large projects are 36 to 42 months. So you can pretty much straight-line the revenue over that timeframe.

And a second -- and a follow-up. A couple of quarters ago, you said that you thought that Tutor Perini as a combined entity now can book $4 billion of backlog in any environment. Do you continue to believe that this environment supports that comment?

Yes.

Okay, great. Thank you.

(Operator Instructions). There are no further questions at this time. I would now like to turn the call over to Ron Tutor for closing remarks.

Well, since unfortunately I was unable to be on the call, I would give it to you, Ken, because you know the text of the call better than I do and the questions, other than I would just simply say, we continue to be very positive in the civil works business. Our building business is difficult, as everybody understands. And the national private work sector, although unfortunately public works and government-supported public works, both in prisons, courts' buildings, hospitals, etc., are beginning to pick, up which will of course support some of those operations.

And as I'm sure Ken pointed out, we have two very large projects in-house to bid in Guam, both of them in the $200 million to $300 million range, which is much larger than anything that is ever built in Guam. It appears to us that Guam will commence to generate a major work program. Hopefully, since those works are out to bid, typically the balance will follow. And our civil work, or at least the amount of quality major civil work available, continues to increase. Toward that end, we expect to continue to get our share.

Anything, Ken, you would like to add?

I think that sums it up very well. We are obviously focused on generating new business this year and are ready to go. So, thank you all for joining the call, and we will look forward to the next time. Thank you.

Ladies and gentlemen, that concludes today's conference. Thank you for your participation. You may now disconnect. Have a great day.