Tutor Perini Corp (TPC) 2024 Q2 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Tutor Perini Corporation second-quarter 2024 earnings conference call. My name is Latanya, and I will be your coordinator for today. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes. (Operator Instructions)

女士們、先生們，美好的一天，歡迎參加 Tutor Perini Corporation 2024 年第二季收益電話會議。我叫拉塔尼亞，我將擔任你們今天的協調員。（操作員說明）謹此提醒，本次會議正在錄製以供重播之用。（操作員說明）

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

現在我想將會議交給今天的東道主，投資者關係副總裁 Jorge Casado 先生。請繼續。

Hello, everyone, and thank you for your time and participation today. With us on the call are Ronald Tutor, Chairman and CEO; Gary Smalley, President; and Ryan Soroka, Senior Vice President and CFO.

大家好，感謝您今天的時間和參與。與我們一起參加電話會議的有董事長兼執行長 Ronald Tutor；加里·斯莫利，總裁；以及資深副總裁兼財務長 Ryan Soroka。

Before we discuss our results, I will remind everyone that during this 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 Form 10-K, which we filed on February 28, 2024, and in our Form 10-Q that we are filing today. The company assumes no obligation to update forward-looking statements, whether due to new information, future events or otherwise, other than as required by law. Thank you.

在我們討論我們的結果之前，我要提醒大家，在這次電話會議中，我們將做出前瞻性陳述，這些陳述是基於管理層對現有趨勢和資訊的當前評估。我們的實際結果可能存在重大差異，這是一個固有的風險。您可以在我們於 2024 年 2 月 28 日提交的 10-K 表格和今天提交的 10-Q 表格中找到我們對可能導致此類差異的風險因素的揭露。除法律要求外，本公司不承擔更新前瞻性聲明的義務，無論是由於新資訊、未來事件或其他原因。謝謝。

And with that, I will turn the call over to Ronald Tutor.

然後，我會將電話轉給羅納德導師。

Thanks, Jorge. Good afternoon and thank you all for joining us. Our second quarter results were highlighted by 10% consolidated revenue growth, improved earnings with continued strong profitability for the Civil segment, which reported a segment operating margin of 13.8%, with backlog growth of 4% compared to the first quarter of 2024 and $53 million of operating cash flow.

謝謝，豪爾赫。下午好，感謝大家加入我們。我們第二季的業績突顯在：綜合營收成長10%，收益改善，民用部門獲利能力持續強勁，該部門營業利潤率為13.8%，積壓訂單較2024 年第一季成長4%，達到5,300 萬美元經營現金流量。

Year to date, our operating cash flow of $151 million was the second highest result of any six-month period since the 2008 merger with Tutor-Saliba. Our second-quarter earnings were negatively impacted by $0.19 a share due to an increase in share-based compensation expense compared to the second quarter last year, primarily due to the substantial increase in our stock price during the second quarter of 2024, which affected the fair value of liability-classified awards and secondarily by an unfavorable project adjustment due to the fact that I settled two completed highway projects in the Northeast which impacted earnings (corrected by company after the call) by $0.17 a share.

今年迄今為止，我們的營運現金流為 1.51 億美元，是自 2008 年與 Tutor-Saliba 合併以來六個月內第二高的業績。由於股權激勵費用較去年第二季增加，我們第二季的獲利受到每股 0.19 美元的負面影響，這主要是由於 2024 年第二季我們的股價大幅上漲，影響了負債分類獎勵的公允價值，其次是不利的項目調整，因為我解決了東北部兩個已完成的高速公路項目，這對每股收益（由公司在電話會議後修正）產生了0.17 美元的影響。

Our total debt declined by $223 million or 25% since the end of last year, and we continue to focus on further reducing our debt over the balance of the year and next. Ryan will review all the financial details in a moment.

自去年底以來，我們的總債務減少了 2.23 億美元，即 25%，我們將繼續致力於在今年餘下和明年進一步減少債務。瑞安將立即​​審查所有財務細節。

We have continued to make substantial progress in resolving various matters, which contributed to strong operating cash that we generated in the second quarter of 2024. And as we've stated previously, I would expect to resolve most of the remaining legacy disputes and collect substantial amounts of associated cash during the latter part of this year and the first part of next year, which should help drive operating cash flow for both years to be a strong, if not better, than last year's record cash performance.

我們在解決各種問題方面繼續取得實質進展，這為我們在 2024 年第二季產生了強勁的營運現金做出了貢獻。正如我們之前所說，我預計將在今年下半年和明年上半年解決大部分剩餘的遺留糾紛並收集大量相關現金，這將有助於推動雙方的營運現金流預計未來幾年的現金表現將比去年創紀錄的現金表現強勁，甚至更好。

Our backlog was $10.4 billion at the end of the second quarter of 2024. The most significant new awards and contract adjustments in the second quarter included the Company's proportionate share of its contract value for the $1.3 billion Connecticut River Replacement Bridge project for Amtrak, which we received in joint venture with O&G Industries, a long-time Tutor Perini partner.

截至 2024 年第二季末，我們的積壓訂單為 104 億美元。第二季最重要的新合約和合約調整包括公司在 Amtrak 價值 13 億美元的康乃狄克河更換橋樑專案合約價值中所佔的比例份額，該專案是我們與 Tutor Perini 的長期合作夥伴 O&G Industries 合資獲得的。

The $216 million Airport Terminal Connectors (corrected by company after the call) project at Fort Lauderdale International Airport; $144 million of additional funding for certain mass transit projects in California; the $136 million I-64 Bridge and Highway project in the Midwest for Lunda Construction; $127 million electrical project in New York at the Hillview Reservoir; the $74 million Child Development Center at Andersen Air Force Base in Guam for Black Construction; and $71 million of additional funding for various healthcare projects in California with Rudolph and Sletten.

勞德代爾堡國際機場耗資 2.16 億美元的機場航站樓連接線項目（由公司在電話會議後更正）；為加州某些公共交通項目提供 1.44 億美元的額外資金； Lunda Construction 耗資 1.36 億美元的中西部 I-64 橋樑和高速公路項目；價值 1.27 億美元的紐約 Hillview 水庫電力計畫；耗資 7,400 萬美元在關島安德森空軍基地為黑人建造的兒童發展中心；以及與 Rudolph 和 Sletten 共同為加州的各種醫療保健項目提供 7,100 萬美元的額外資金。

As we have discussed on previous calls, we have been and continue to be in a very busy period of significant bidding activity with limited competition for many of these large megaproject opportunities, as I've mentioned in the past, and that has been consistent. This limited competition is the result of a supply-demand imbalance as frankly, there are so many major project opportunities and a small pool of contractors with both the physical and financial resources to prequalify, successfully bid, bond and execute these projects. This will continue to bode extremely well for Tutor Perini both in terms of the probabilities of winning new projects, as well as the encompassed margin potential.

正如我們在之前的電話會議中所討論的那樣，正如我過去提到的那樣，我們一直並將繼續處於一個非常繁忙的時期，招標活動非常繁忙，許多大型項目機會的競爭有限，正如我過去提到的，這是一致的。這種有限的競爭是供需失衡的結果，坦白說，重大專案機會如此之多，而擁有物質和財務資源來資格預審、成功投標、擔保和執行這些專案的承包商卻很少。無論是從贏得新項目的可能性還是所包含的利潤潛力來看，這對導師佩里尼來說都是一個非常好的兆頭。

Last week, we announced that our public-private partnership consortium, Elevate Inglewood Partners, in which we are serving as the prime construction contractor, has been selected as the best value proposal for the Inglewood Transit Connector project in southern California. We're in active discussions and negotiation with the owner regarding the project's pricing and contractual terms, and the City of Inglewood anticipates that its City Council will be considering award for the project this fall.

上週，我們宣布，我們作為主要施工承包商的公私合作聯盟 Elevate Inglewood Partners 已被選為南加州英格爾伍德交通連接器項目的最佳價值提案。我們正在與業主就該項目的定價和合約條款進行積極的討論和談判，英格爾伍德市預計其市議會將在今年秋天考慮授予該項目。

Some of our other significant near-term prospects include the Amtrak Sawtooth Bridges Replacement project that we offered our proposal last week; the $6 billion Dry Dock at Puget Sound Naval Shipyard in the state of Washington that we've broken up into a number of smaller jobs with bidding commencing in the mid to latter part of 2025; the multimillion-dollar Manhattan Jail Facility, which we will tender our proposal by the end of August or this month; the $3.8 billion Southeast Gateway Line project in southern California, which proposals and qualifications will be out in 2025.

我們其他一些重要的近期前景包括我們上週提出的美鐵鋸齒橋更換專案；華盛頓州普吉特灣海軍造船廠價值 60 億美元的乾船塢，我們已將其分解為許多較小的項目，並於 2025 年中後期開始招標；耗資數百萬美元的曼哈頓監獄設施，我們將在八月底或本月之前提交我們的提案；南加州耗資 38 億美元的東南門戶線項目，該項目的提案和資格將於 2025 年公佈。

The $2 billion Midtown Bus Terminal Replacement project in New York, bidding in December; the $2 billion Sites Reservoir project in northern California, which likely will bid in two to three parts later this year, early next year; the $1.8 billion South Jersey Light Rail Glassboro-Camden Line in New Jersey, which will be proposed next year; the $1.5 billion Newark AirTrain Replacement project bidding in September, which I'll remind you, we were the low bidder when it initially bid some two years ago.

耗資20億美元的紐約中城巴士總站更換項目，12月招標；加州北部耗資 20 億美元的 Sites 水庫項目可能會在今年晚些時候、明年初分兩到三部分進行投標；耗資 18 億美元的新澤西州南澤西輕軌格拉斯博羅-卡姆登線（Glassboro-Camden Line）將於明年提出； 9 月價值 15 億美元的紐瓦克機場列車更換專案招標，我要提醒您，大約兩年前最初投標時，我們是最低投標者。

The $800 million Northern Bus Garage in New Jersey bidding next year, the 75 -- excuse me, the $750 million Manhattan Tunnel project in New York bidding in October; and finally, the $500 million Raritan Bridge Replacement project in New Jersey, also bidding in October, and again, I'll remind you for which we were previously the low bidder. Because of these and very other significant project opportunities, we continue to anticipate that our backlog will grow substantially later this year and in 2025 as we bid and capture our share of the available work.

新澤西州北部巴士車庫計畫將於明年招標，75 美元——對不起，紐約曼哈頓隧道計畫將於 10 月招標，價值 7.5 億美元；最後，新澤西州耗資 5 億美元的 Raritan 橋樑更換項目也在 10 月進行投標，我要再次提醒您，我們之前是最低投標者。由於這些以及其他重要的項目機會，我們繼續預計，隨著我們競標並佔領可用工作的份額，我們的積壓工作將在今年稍後和 2025 年大幅增加。

Our previous record backlog was $11.6 billion back in the first quarter of 2019. I would expect that that backlog will climb to levels significantly beyond that prior record over the next six months. Based on our results to date and our assessment of the current market and business outlook, we are reaffirming our 2024 EPS guidance and still expect the EPS to be in the range of $0.85 to $1.10. We anticipate stronger earnings in the second half of this year due to the timing of large project activities as well as typical business seasonality. We also expect stronger earnings next year and in 2026 even greater.

我們先前的創紀錄積壓訂單是 2019 年第一季的 116 億美元。我預計未來六個月積壓的訂單量將大幅攀升至超出先前記錄的水平。根據我們迄今為止的業績以及對當前市場和業務前景的評估，我們重申 2024 年每股收益指引，並仍然預計每股收益將在 0.85 美元至 1.10 美元之間。由於大型專案活動的時機以及典型的業務季節性，我們預計今年下半年的獲利將更加強勁。我們也預計明年的獲利將更加強勁，2026 年甚至會更高。

Thank you. And with that, I turn the call over to Ryan to review the financial results.

謝謝。說完，我把電話轉給瑞安，讓他審查財務表現。

Thank you, Ron. Good afternoon, everyone. We had good results overall for the second quarter of 2024 with improved earnings compared to the same quarter last year despite two notable earnings impacts that Ron mentioned, which I will discuss in a moment. We are especially pleased with our strong second-quarter operating cash flow of $53.1 million as well as the fact that our first-half 2024 operating cash flow of $151.4 million was our second best result since 2008.

謝謝你，羅恩。大家下午好。儘管羅恩提到了兩個顯著的盈利影響（我稍後將討論），但我們在 2024 年第二季度總體取得了良好的業績，與去年同期相比，盈利有所改善。我們對第二季度 5,310 萬美元的強勁營運現金流以及 2024 年上半年 1.514 億美元的營運現金流是我們自 2008 年以來第二好的業績感到特別滿意。

As I've mentioned previously, we expect strong cash flows that will continue to be enhanced this year and next year by the anticipated resolutions of various remaining disputes. And beyond that, our cash generation should remain solid, driven by increased project execution activities and improved contractual terms.

正如我之前提到的，我們預計今年和明年將透過各種剩餘糾紛的預期解決方案繼續增強強勁的現金流。除此之外，在專案執行活動增加和合約條款改善的推動下，我們的現金產生應保持穩定。

With the strong cash generation we've had over the past several quarters, we have made significant strides in deleveraging our balance sheet. As Ron mentioned, we've already reduced our total debt by $223 million, or 25%, since the end of last year. We plan to continue using any excess cash this year and next year to further reduce our debt, first, by paying down and eventually paying off our Term Loan B.

由於過去幾季我們產生了強勁的現金，我們在去槓桿化資產負債表方面取得了重大進展。正如 Ron 所提到的，自去年年底以來，我們的總債務已減少 2.23 億美元，即 25%。我們計劃今年和明年繼續使用任何多餘的現金來進一步減少我們的債務，首先，透過償還並最終還清我們的定期貸款 B。

Now let's discuss the P&L results. Revenue for the second quarter of 2024 was $1.13 billion, up 10% compared to $1.02 billion for the same quarter last year. The solid growth was primarily driven by increased activities on certain Building segment projects, including various healthcare and educational facility projects in California and the Brooklyn Jail project in New York as well as certain Civil segment projects in California, the Northern Mariana Islands, and British Columbia.

現在我們來討論損益結果。2024年第二季營收為11.3億美元，較去年同期的10.2億美元成長10%。穩健成長主要是由於某些建築部門項目活動的增加，包括加州的各種醫療保健和教育設施項目和紐約布魯克林監獄項目，以及加州、北馬裡亞納群島和不列顛哥倫比亞省的某些民用部門項目。

Civil segment revenue for the second quarter of 2024 was $546 million, essentially level compared to the second quarter last year. However, it's important to note that year to date, Civil segment first half revenue was up 13% compared to the first half of 2023. Building segment revenue for the second quarter of 2024 was $418 million, up 26% year over year, mostly driven by the increased activities I mentioned on certain healthcare and educational facility projects in California, as well as on the Brooklyn Jail project in New York.

2024 年第二季民用部門營收為 5.46 億美元，與去年第二季基本持平。然而，值得注意的是，今年迄今為止，民間部門上半年收入較 2023 年上半年成長了 13%。2024 年第二季建築部門收入為 4.18 億美元，年增 26%，這主要是由於我提到的加州某些醫療保健和教育設施項目以及紐約布魯克林監獄項目活動增加所致。

Specialty Contractors segment revenue was $163 million, up 20% compared to the second quarter of last year, partially due to the absence in the current year quarter of prior year unfavorable adjustments on the electrical and mechanical scope of a completed transportation project in the Northeast, as well as a (corrected by company after the call) prior-year adverse legal ruling on an educational facilities project in New York. The increase was partially offset by reduced project execution activities in the second quarter of 2024 on an industrial facility project in Arizona and various electrical and mechanical projects in New York, all of which are complete or are nearing completion.

專業承包商部門收入為 1.63 億美元，比去年第二季度增長 20%，部分原因是去年本季沒有對東北部已完成的交通項目的機電範圍進行不利調整，以及（公司在電話會議後更正）上一年對紐約教育設施計畫的不利法律裁決。這一增長被 2024 年第二季度亞利桑那州工業設施項目和紐約各種電氣和機械項目項目執行活動的減少所部分抵消，這些項目均已完成或接近完成。

Income from construction operations was $40 million for the second quarter of 2024 compared to $2 million for the same quarter of last year. The significant increase was mostly due to contributions related to the increased project execution activities I mentioned, as well as the absence of certain prior-year net unfavorable adjustments.

2024 年第二季建築業務收入為 4,000 萬美元，而去年同期為 200 萬美元。大幅成長主要是由於與我提到的專案執行活動增加相關的貢獻，以及沒有某些上一年的淨不利調整。

The increase was partially offset by $14.3 million of additional share-based compensation expense that was due to the impact of a significant increase in our stock price during the second quarter of 2024 on the fair value of liability-classified awards, as well as by an unfavorable adjustment of $12.4 million due to a settlement on two completed Civil segment highway projects in the Northeast. Gary will provide some additional commentary about these liability-classified awards shortly.

這一增長被 1,430 萬美元的額外股份補償費用部分抵消，這是由於 2024 年第二季度我們的股價大幅上漲對負債分類獎勵公允價值的影響，以及由於東北部兩個已完成的民用路段高速公路計畫的和解，產生了1,240 萬美元的不利調整。加里很快就會對這些責任分類獎項提供一些額外的評論。

Civil segment income from construction operations for the second quarter of 2024 was $76 million, with a strong corresponding segment operating margin of 13.8%, even after the impact of the $12.4 million charge I mentioned. Building segment income from construction operations was $5 million, a notable improvement compared to the loss of $14 million we recorded in the second quarter of 2023. Building segment operating margin was 1.2% in the second quarter of 2024 due to some immaterial unfavorable adjustments that impacted the segment's results this quarter.

2024 年第二季建築業務的民用部門收入為 7,600 萬美元，即使受到我提到的 1,240 萬美元費用的影響，相應部門的營業利潤率也高達 13.8%。建築業務的建築業務收入為 500 萬美元，與 2023 年第二季的 1,400 萬美元虧損相比，有了顯著改善。由於一些無關緊要的不利調整影響了本季該部門的業績，2024 年第二季建築部門的營業利潤率為 1.2%。

The Specialty Contractors segment posted a loss from construction operations of $8 million in the second quarter of 2024 compared to a much larger loss of $70 million for the second quarter last year. The improvement was primarily due to the absence of some significant prior-year unfavorable adjustments.

2024 年第二季度，專業承包商部門的建築業務虧損為 800 萬美元，而去年第二季的虧損則大得多，為 7,000 萬美元。這一改善主要是由於去年沒有進行一些重大不利調整。

Corporate G&A expense was $32 million in the second quarter of 2024 compared to $19 million for the same quarter last year, with the increase due to the higher share-based compensation expense that, as I mentioned earlier, resulted from the significant increase in our stock price in the second quarter of 2024.

2024 年第二季的企業管理及行政費用為 3,200 萬美元，而去年同期為 1,900 萬美元，增加的原因是股票薪酬費用較高，正如我之前提到的，股票大幅增加導致股票薪酬費用增加2024年第二季的價格。

Other income was $6 million compared to $3 million last year. Interest expense for the second quarter was $23 million this year compared to $22 million last year. Income tax expense was $7 million in the second quarter of 2024, with a corresponding effective tax rate of 31.3% compared to an income tax expense of $200,000 with an effective tax rate of 1.2% for the same quarter last year. I will remind you all, as I mentioned last quarter, that the net operating losses we generated in 2022 and 2023 are helping to reduce our cash outlays for income taxes this year and will continue to help in future years.

其他收入為 600 萬美元，而去年為 300 萬美元。今年第二季的利息支出為 2,300 萬美元，而去年為 2,200 萬美元。2024 年第二季所得稅費用為 700 萬美元，相應有效稅率為 31.3%，去年同期所得稅費用為 20 萬美元，有效稅率為 1.2%。正如我上季度提到的那樣，我要提醒大家，我們在 2022 年和 2023 年產生的淨營運虧損有助於減少我們今年所得稅的現金支出，並將在未來幾年繼續發揮作用。

Net income attributable to Tutor Perini for the second quarter of 2024 was $800,000, or $0.02 of diluted earnings per share, compared to a net loss of $38 million, or a loss of $0.72 per share, in the second quarter of 2023.

2024 年第二季 Tutor Perini 的淨利潤為 80 萬美元，即稀釋後每股收益 0.02 美元，而 2023 年第二季的淨虧損為 3,800 萬美元，即每股虧損 0.72 美元。

We continue to anticipate double-digit revenue growth and solid earnings for the full year of 2024, with substantially stronger earnings expected in 2025 and 2026. Ron pointed to many of the large prospective projects we have recently bid or will be bidding this year and next year. We are optimistic about our prospects for substantial backlog growth over the next several quarters and strong revenue growth and earnings in the coming years.

我們繼續預計 2024 年將全年實現兩位數的營收成長和穩健的獲利，並預計 2025 年和 2026 年的獲利將大幅成長。羅恩指出了我們最近投標或今年和明年將投標的許多大型潛在項目。我們對未來幾季積壓訂單大幅成長以及未來幾年營收和獲利強勁成長的前景感到樂觀。

Now I will again touch upon the balance sheet. Our total debt as of June 30, 2024, was $676 million, down $223 million, or 25%, compared to $900 million as of December 31, 2023, mostly because of our $91 million paydown on the Term Loan B and our recent refinancing in which we replaced $500 million of 2017 senior notes with $400 million of new 2024 senior notes. As of June 30, 2024, we are in compliance with the covenants under the credit agreement and expect to continue to be in compliance in the future.

現在我將再次談談資產負債表。截至2024 年6 月30 日，我們的總債務為6.76 億美元，與截至2023 年12 月31 日的9 億美元相比，減少了2.23 億美元，即25%，主要是因為我們償還了定期貸款B 的9,100 萬美元，以及我們最近在我們用 4 億美元的 2024 年新高級票據取代了 5 億美元的 2017 年優先票據。截至2024年6月30日，我們遵守信貸協議下的承諾，並預期未來將繼續遵守。

Finally, as Ron indicated, we're affirming our 2024 EPS guidance in the range of $0.85 to $1.10. Our updated assumptions regarding our guidance are as follows: G&A expense for 2024 is now expected to be between $280 million and $300 million, with the increase due to the higher share-based compensation expense I mentioned earlier. Depreciation and amortization expense is still anticipated to be approximately $54 million in 2024 with depreciation at $52 million and amortization at $2 million. Interest expense for 2024 is still expected to be approximately $83 million, of which about $10 million will be noncash.

最後，正如 Ron 指出的那樣，我們確認 2024 年 EPS 指導範圍為 0.85 美元至 1.10 美元。我們對指引的最新假設如下：2024 年的一般管理費用目前預計在 2.8 億至 3 億美元之間，這一增加是由於我之前提到的基於股票的薪酬費用較高。預計 2024 年折舊和攤提費用仍約為 5,400 萬美元，其中折舊為 5,200 萬美元，攤提為 200 萬美元。2024 年的利息支出預計仍約為 8,300 萬美元，其中約 1,000 萬美元為非現金。

Our effective income tax rate for 2024 is still expected to be approximately 22% to 24%. We now anticipate noncontrolling interest to be between $50 million and $60 million. We still expect approximately 53 million weighted-average diluted shares outstanding for 2024. And capital expenditures are now anticipated to be approximately $35 million to $40 million, with about $5 million to $10 million of that being project-specific and owner-funded.

預計 2024 年的有效所得稅率仍約為 22% 至 24%。我們現在預計非控制權益將在 5,000 萬至 6,000 萬美元之間。我們仍預期 2024 年加權平均稀釋後流通股數約為 5,300 萬股。目前預計資本支出約 3,500 萬至 4,000 萬美元，其中約 500 萬至 1,000 萬美元用於特定項目和業主資助。

Thank you. And with that, I will turn the call over to Gary.

謝謝。然後，我會將電話轉給加里。

Thanks, Ryan. Let me provide some color on the $0.19 per share increase in share-based compensation expense compared to the second quarter of last year. With where our stock price has been for the last few years, our Compensation Committee and Board working with an independent compensation consultant correctly decided to increase the weighting of certain performance-based awards that are designed to help drive share price improvement.

謝謝，瑞安。讓我對去年第二季相比每股增加 0.19 美元的股權激勵費用提供一些說明。鑑於過去幾年我們的股價走勢，我們的薪酬委員會和董事會與獨立薪酬顧問合作，正確地決定增加某些基於績效的獎勵的權重，這些獎勵旨在幫助推動股價上漲。

In some cases, the criteria is relative to the performance of (corrected by company after the call) the Company's peers. And other times, it's based on what was believed to be rather aggressive annual stock price growth targets. When you combine this focus on driving share price improvement with a somewhat depleted share pool, some new awards were issued as cash-settled performance stock units, or CPSUs. Because these awards will be paid out in cash, they're accounted for as liability awards and therefore, require quarterly remeasurement to fair value with any changes in fair value reflected in earnings. So the use of CPSUs was really a short-term solution to deal with the depleted share pool and a low stock price because the low stock price causes dollar-based equity awards to eat up into the share pool at a faster clip.

在某些情況下，該標準與公司同業的業績（由公司在電話會議後更正）相關。而其他時候，它是基於被認為相當激進的年度股價成長目標。當你將推動股價上漲的重點與有所耗盡的股票池結合起來時，一些新的獎勵將以現金結算的績效股票單位（CPSU）的形式發行。由於這些獎勵將以現金支付，因此被視為負債獎勵，因此需要每季重新計量公允價值，並將公允價值的任何變化反映在收益中。因此，使用CPSU確實是解決股票池枯竭和股價低的問題的短期解決方案，因為股價低會導致以美元為基礎的股權獎勵更快地吞噬股票池。

We expect to seek the authorization of additional shares for long-term incentive purposes during next year's proxy season. And with our improving operational performance, we are more confident that we will be able to be a support for such a proposal from shareholders.

我們預計在明年的代理季期間尋求額外股份的授權，以用於長期激勵目的。隨著我們經營績效的不斷提高，我們更有信心能得到股東的支持。

Future equity awards to management when we have a less constrained share pool and can issue restricted stock units instead of CPSUs are expected to be settled in stock, not cash. This will eventually eliminate the earnings volatility that we saw this quarter from the significant improvement in our share price.

當我們擁有較少限制的股票池並且可以發行限制性股票單位而不是 CPSU 時，未來對管理層的股權獎勵預計將以股票而非現金結算。這最終將消除我們本季因股價顯著改善而帶來的獲利波動。

Of course, the use of CPSUs and their cash-settled nature are disclosed in our quarterly 10-Qs and 10-Ks. But this was the first quarter in which there was such a large impact to earnings, either positive or negative. The silver lining in this is that it is a result of significant positive share price movement and accordingly, shareholder value creation.

當然，CPSU 的使用及其現金結算性質在我們的季度 10-Q 和 10-K 中披露。但這是第一個對獲利產生如此大影響的季度，無論是正面還是負面。其中一線的希望是，這是股價大幅正向波動以及相應的股東價值創造的結果。

With that, I'll turn the call back over to Ron.

說完，我會把電話轉回給羅恩。

Thanks, Gary. To recap the highlights, we delivered consolidated revenue growth, improved earnings with strong profitability for the Civil segment, backlog growth for the first quarter of 2024, and $53 million of operating cash flow in the second quarter. Although disappointed in our earnings per share, I think we explained the events that were unanticipated that caused the reduction in earnings.

謝謝，加里。回顧一下亮點，我們實現了綜合收入增長、民用部門盈利能力強勁、2024 年第一季積壓訂單增長以及第二季度運營現金流 5300 萬美元的改善。儘管對我們的每股盈餘感到失望，但我認為我們解釋了導致收益減少的意外事件。

Our year-to-date operating cash flow of $151 million was the second highest result of any first half since the 2008 merger. We would still anticipate our operating cash flow to be very strong in '24 and strong in '25 as we continue to resolve the majority of our remaining legacy disputes and collect the substantial amount of associated cash along with generating healthy cash from normal project execution activities.

我們年初至今的營運現金流為 1.51 億美元，是自 2008 年合併以來上半年第二高的業績。我們仍然預計我們的營運現金流在 24 年和 25 年將非常強勁，因為我們將繼續解決大部分剩餘的遺留糾紛並收集大量相關現金，同時從正常的專案執行活動中產生健康的現金。

We also still expect solid revenue growth and earnings in '24 with significantly higher earnings, respectively, in each of 2025 and 2026. Our backlog should grow substantially by the end of the year and into next, hopefully, to new record levels, as we bid and win our share of these very large projects available with limited competition anticipated for the very large megaprojects.

我們也預期 24 年營收和收益將實現穩健成長，2025 年和 2026 年收益將分別顯著提高。我們的積壓工作應該會在今年年底大幅增長，並有望在明年達到新的紀錄水平，因為我們競標並贏得了這些超大型項目的份額，而超大型項目的競爭預計有限。

Thank you. And with that, I turn the call to the operator for your questions.

謝謝。然後，我將電話轉給接線員詢問您的問題。

Thank you. We will now conduct a question-and-answer session. (Operator Instructions) Steven Fisher, UBS.

謝謝。我們現在將進行問答環節。（操作員說明）Steven Fisher，UBS。

Thanks, good afternoon. And congratulations on the continued progress here. Relative to the guidance that you have for the full year, still a fair bit of a ramp-up in the second half to hit that. So can you just give us a sense of what the cadence you expect of, say, Q3 versus Q4? I'm assuming Q3 is seasonally a much bigger quarter than Q4 from an earnings perspective. I mean, you can clarify that a little bit. To what extent is that earnings ramp up more driven by revenues that you expect to ramp or not having sort of charges going through?

謝謝，下午好。恭喜這裡的持續進步。相對於全年的指導，下半年仍然需要​​相當多的努力才能達到這一目標。那麼您能否讓我們了解您期望的節奏，例如第三季與第四季？我假設從獲利角度來看，第三季的季度規模比第四季大得多。我的意思是，你可以稍微澄清一下。獲利成長在多大程度上是由您預期收入成長或沒有收取任何費用來推動的？

Yeah, Steve, this is Gary. I think it's going to be a combination of things. First of all, to your question about what -- when do we expect the larger impact in Q3 or Q4, if you look back historically over time, you could almost flip a coin as far as whether Q3 is stronger or Q4. So in this case, they're both going to be stronger. I would say this year, we're probably looking at Q4 to be a little stronger than Q3. And certainly, some of it will be driven by continued improvements in, say, Specialty, so less losses.

是的，史蒂夫，這是加里。我認為這將是多種因素的結合。首先，對於你的問題——我們預計什麼時候第三季或第四季會產生更大的影響，如果你回顧一段時間的歷史，你幾乎可以拋硬幣決定第三季更強還是第四季更強。所以在這種情況下，他們都會變得更強。我想說，今年，我們可能會認為第四季會比第三季強。當然，其中一些將由專業領域的持續改進推動，從而減少損失。

And then I think also that we're looking at some of the larger projects to start to continue to generate higher volume of earnings, which will certainly help drive improvement, as well. And you've correctly -- I guess, indirectly alluded to the strength in the latter part of the year for us is because the first quarter is always the weakest. Second quarter is almost always the second weakest. So we do always expect the second half to be stronger, and that's certainly the case this year. That's what we have planned for the rest of the year at this point.

然後我還認為，我們正在考慮一些較大的項目，以開始繼續產生更高的收益，這肯定也有助於推動改進。你說得對——我想，間接提到我們今年下半年的強勢是因為第一季總是最弱的。第二季幾乎總是第二弱的。因此，我們總是期望下半年會更加強勁，今年的情況肯定是如此。這就是我們今年剩餘時間的計畫。

That's very helpful. Thanks, Gary. And in terms of the Specialty segment, you mentioned less losses. What is still generating the losses there at the moment? And it sounds like it's maybe not expected to turn to profitability quite yet. What's happening there and can you just kind of give us the outlook there?

這非常有幫助。謝謝，加里。就專業領域而言，您提到損失較少。目前是什麼仍在造成損失？聽起來它可能還不會獲利。那裡正在發生什麼事？

Well, we just have a number of legacy losses. We're working through the preponderance of which is in Five Star Electric, and to a lesser extent, in WDF. And although a certain number of them will be resolved this year, I'd say we're not going to get out of those issues until the end of next year. The losses do continue to diminish, but it's hard to get your arms around it since many of them are in litigation and/or negotiations and mediations, and they just have historically not done as well as we have in the civil business.

好吧，我們只是有一些遺留損失。我們正在努力解決五星級電力公司的主要問題，以及 WDF 的較小程度的問題。儘管其中一些問題將在今年解決，但我想說，我們要到明年年底才能解決這些問題。損失確實在繼續減少，但很難擺脫它，因為其中許多人正在進行訴訟和/或談判和調解，而且他們歷來在民事業務方面做得併不好。

Yes, Steve, if I could just add on to that. A year ago, we were talking about being hopefully out from under this at this point in time. And obviously, we've made significant progress. And we -- part of what we're seeing, though, is a bit volume related also. We need -- and we will, with the new opportunities that are out there, that's going to positively impact our Specialty segment and the business units within that segment as we secure a lot more of this work up in New York, and that will give us more volume that will help us.

是的，史蒂夫，如果我能補充一下的話。一年前，我們正在談論希望在這個時候擺脫困境。顯然，我們已經取得了重大進展。不過，我們所看到的部分情況也與數量有關。我們需要——而且我們將利用現有的新機會，這將對我們的專業部門和該部門內的業務部門產生積極影響，因為我們在紐約獲得了更多的這項工作，這將給我們帶來好處。

So a lot of what you saw this quarter is volume related. And then look, if you -- part of your question about the timing, look, we had hoped that by the end of this year, we'd be out under from these charges, and we had very few in Specialty this time. So that's positive. We're making progress, as Ron alluded to, in resolving these things.

因此，您本季看到的許多內容都與數量相關。然後看，如果你 - 你關於時間安排的問題的一部分，看，我們曾希望到今年年底，我們將擺脫這些指控，而這次我們在專業領域的指控很少。所以這是積極的。正如羅恩所提到的，我們在解決這些問題方面正在取得進展。

Look, a year from now, we think this will be behind us. We think that we'll have the new projects signed up that will be generating the volume and the profitable work in Specialty, primarily in New York. So just appreciate your patience. Give us a little bit more time. We're almost there, but not quite obviously.

看，一年後，我們認為這將成為過去。我們認為，我們將簽署新項目，這些項目將在專業領域（主要是在紐約）產生數量和盈利的工作。所以感謝您的耐心。給我們多一點時間。我們已經快到了，但還不是很明顯。

That's helpful. And then just lastly, did I understand this correctly from the press release that you have perhaps a settlement this quarter in Q2, rather, that hit the P&L, but you didn't collect the cash yet? And so basically, you already have awareness of some collection of cash for Q3? And if that's right, can you share how much that cash settlement that's coming in Q3 is?

這很有幫助。最後，我是否正確地從新聞稿中理解了這一點，即你們可能在第二季度的本季度達成了和解，而不是觸及損益表，但你們還沒有收到現金？基本上，您已經意識到第三季會收到一些現金？如果這是正確的，您能否分享第三季的現金結算金額是多少？

Yeah. Well, I can't really give you too much specifics on the collection, but it wasn't -- we'll say it was more than inconsequential. It was a fairly significant amount. And we've already collected about 60% of it and the rest of it will come in, in Q3. So 100% of this amount will be in Q3. Certainly, with the improvement that we usually have in cash flow at the latter part of the year and this large amount that will be helping cash flow for the quarter, that certainly bodes well for what Q3 cash looks like.

是的。好吧，我真的不能給你太多關於這個系列的細節，但它不是——我們會說它不僅僅是無關緊要的。這是一個相當大的數額。我們已經收集了大約 60%，其餘的將在第三季收集。因此，該金額​​的 100% 將用於第三季。當然，隨著今年下半年現金流量的改善，以及大量資金將有助於本季的現金流量，這無疑是第三季現金狀況的好兆頭。

Alex Rygiel, B. Riley.

亞歷克斯·里吉爾，B.萊利。

Hi, good evening. This is actually Min on for Alex. Congratulations on the quarter and the slight increase in backlog here. My question is around your civil business. Obviously, the margins are really good even with the issue this quarter. Given the expected ramp-up in projects, should we look at the second half of the year margins to be stronger than the first half, the operating margins for the Civil segment?

嗨，晚上好。這其實是阿歷克斯的敏。恭喜本季的業績以及積壓訂單略有增加。我的問題是關於你的民事事務。顯然，即使本季出現問題，利潤率也確實不錯。考慮到專案的預期成長，我們是否應該認為下半年的利潤率會強於上半年，即民間部門的營業利潤率？

I don't think they'll be stronger because all these civil projects take a while to get going, and many of these high-margin projects we got in the last two years are coming online. However, most of our Civil operation even from three years ago is high margin. So I think it will be better, but I don't think it's just because of the new projects. I think the Civil margin will just continue to improve.

我不認為它們會變得更強大，因為所有這些土木項目都需要一段時間才能啟動，而且我們在過去兩年獲得的許多高利潤項目正在上線。然而，我們的大部分民用業務即使從三年前開始也是高利潤的。所以我認為會更好，但我不認為這只是因為新項目。我認為民事利潤率將繼續改善。

It will continue to improve. Okay. Excellent. Let's see. That is actually all I had for the time being. I'll get back. Thank you.

它將繼續改進。好的。出色的。讓我們來看看。這實際上是我目前所擁有的一切。我會回來的。謝謝。

Thanks, Min.

謝謝，敏。

Adam Thalhimer, Thompson Davis.

亞當·塔爾希默、湯普森·戴維斯。

Hey, good afternoon, guys. Nice quarter. What percent of the Q2 cash from ops was from settled claims?

嘿，下午好，夥計們。不錯的季度。第二季度來自營運的現金中有多少百分比來自已解決的索賠？

Yeah. The best way to look at that is it's roughly 50-50, half and half. We don't disclose precise numbers, but that's a pretty good ballpark estimate.

是的。最好的看待方式是大約 50-50，一半一半。我們沒有透露精確的數字，但這是一個相當不錯的大概估計。

Okay. I think I'm thinking like Min, most of these were touched on. Just a modeling question, the intersegment revenue has been higher really for the last three quarters. Do you see that continuing? Those must be specific jobs.

好的。我想我和敏的想法一樣，大部分都被觸及了。只是一個建模問題，過去三個季度的部門間收入確實更高。您認為這種情況還在持續嗎？這些必須是具體的工作。

Yeah. I mean I think it probably continues at the -- roughly at the rate we're at right now. And in particular, as the Specialty segment is supporting other segments, Civil and Building.

是的。我的意思是，我認為它可能會繼續以大約現在的速度繼續下去。特別是，專業領域正在支援其他領域，即土木和建築領域。

Just as a point of clarity, when we propose on these projects and we subcontract to our subsidiaries, they're handled just like an arm's length subsidiary, as if they had no relationship to the Company. They get a lump sum contract with whatever build in of profits -- of profits the market will bear, and it's up to them to earn it. So even though we're forced to take the revenue out when we consolidate, the only difference between them and a stranger is they're wholly-owned subsidiaries. I hope that clarifies a little --

需要澄清的是，當我們提出這些項目並將其分包給我們的子公司時，它們的處理方式就像獨立子公司一樣，就好像它們與公司沒有任何關係一樣。他們獲得一份總價合同，其中包括市場將承受的利潤，並且由他們來賺取利潤。所以即使我們在合併的時候被迫把收入拿出來，他們和陌生人之間唯一的差別就是他們是全資子公司。我希望能澄清一點--

And then Adam, just add to what Ryan is saying, right, in the short term, it's going to be flat. But as we continue to add more work up in the Northeast, then we're going to get a little bit more of the intercompany or intersegment revenue that you speak of.

然後亞當，補充瑞安所說的，對吧，短期內，它會持平。但是，隨著我們繼續在東北部增加更多工作，我們將獲得更多您所說的公司間或部門間收入。

Okay. One of the questions I had just modeling it out, and it sounds like on this call, you're saying there's a potential for Specialty construction revenue to grow, maybe next year.

好的。我剛剛模擬出來的問題之一，聽起來像是在這次電話會議上，你說專業建築收入有可能成長，也許明年。

Definitely next year.

肯定是明年。

Okay. I had modeled that down. Okay. Clearly, I was wrong.

好的。我已經把它模型化了。好的。顯然，我錯了。

Yes. So Adam, the way to look at it is a lot of the work that Ron talked through as far as prospects that are out there, a lot of them are in the Northeast. And our Civil East business unit will be pursuing those. And then when we get our fair share of those, then a lot of those projects will have content from Five Star Electric, our electrical subsidiary; or our mechanical subsidiary, WDF. And so that will be additional work that Tutor Perini has, but those business units have. So you should expect that to ramp.

是的。因此，亞當，我們可以透過羅恩談到的大量工作來看待那裡的前景，其中許多工作都在東北部。我們的民用東業務部門將致力於實現這些目標。然後，當我們獲得公平的份額時，許多項目將包含來自我們的電力子公司五星級電力的內容；或我們的機械子公司 WDF。因此，這將是導師佩里尼（Tutor Perini）要做的額外工作，但這些業務部門也要做。所以你應該預期它會增加。

Well, typically, if you look -- as we try to close the Inglewood Connector Project, our electrical and mechanical group has $200 million of our cost in that job. So they really trail us with a percentage of our work. So as our backlog goes up, typically, theirs goes with it. And it's fairly consistent.

嗯，通常情況下，如果你看一下——當我們試圖結束英格爾伍德連接器項目時，我們的電氣和機械團隊在這項工作上的成本為 2 億美元。所以他們確實落後於我們一定比例的工作。因此，隨著我們的積壓工作增加，通常情況下，他們的積壓工作也會隨之增加。而且相當一致。

Got it. Okay. And Ron, can you just give -- last thing, just a high-level update on -- yeah, you said fewer bidders per job. So a high-level update on what you're seeing with terms and with retainage.

知道了。好的。羅恩，你能否提供——最後一件事，只是一個高層更新——是的，你說每項工作的競標者更少。這是關於您所看到的條款和保留的高級更新。

Well, we don't accept anything -- 5% is the maximum retainage we agree to anywhere, and we've been able to hold the line. We also, as a matter of fact, and if all our owners are listening, they're welcome to hear it again. We renegotiate all the terms, so there's never anything onerous. Our position is very simple.

好吧，我們不接受任何東西——5% 是我們在任何地方都同意的最高保留率，而且我們一直能夠堅持到底。事實上，我們也是一樣，如果我們所有的業主都在聽，我們歡迎他們再次聽到。我們重新協商所有條款，因此不會有任何繁瑣的事情。我們的立場非常簡單。

We won't accept onerous terms on any job. And in the last two years, we've been able to successfully always negotiate onerous terms out of every contract. We've been able to force them to recognize the need for mobilization on the theory we work off their dollars and not our dollars. And with almost rarely more than one other bidder, they've seen the light, and it's been consistent across the board, whoever they are.

我們不會接受任何工作的繁重條件。在過去的兩年裡，我們總是能夠成功地談判每份合約中的繁重條款。我們已經能夠迫使他們認識到動員的必要性，因為我們用的是他們的錢，而不是我們的錢。幾乎很少有超過一個競標者，他們已經看到了曙光，而且無論他們是誰，在所有方面都是一致的。

Sounds good. Good quarter. Thank you.

聽起來不錯。好季度。謝謝。

Thanks, Adam.

謝謝，亞當。

Thank you. At this time, I would like to turn the floor back over to Mr. Ronald Tutor for closing comments.

謝謝。現在，我想把發言權交還給Ronald Tutor 先生結束發言。

Well, thank you, everyone, for your continued patience as we continue to get to where we need to be. We're pleased with where we are and where we're going, and thank you again.

好吧，謝謝大家，在我們繼續達到我們需要的目標的過程中你們一直以來的耐心。我們對目前的情況和未來的發展方向感到滿意，再次感謝你們。

Thank you. This does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a great day.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與，祝您有美好的一天。