Tutor Perini Corporation (NYSE:TPC) Q2 2022 Earnings Conference Call August 5, 2022 11:00 AM ET

Company Participants

Jorge Casado - Vice President of Investor Relations

Ronald Tutor - Chairman and CEO

Gary Smalley - Executive Vice President and CFO

Conference Call Participants

Steven Fisher - UBS

Alex Rygiel - B. Riley

Operator

Good day, ladies and gentlemen. And welcome to the Tutor Perini Corporation Second Quarter 2022 Earnings Conference Call. My name is Rob, and I will be your coordinator for today. At this time, all participants are in a listen-only mode. Following management prepared remarks, we will be opening the call for a question-and-answer session. As a reminder, this conference call is being recorded for replay purposes [Operator Instructions].

At this time, I will 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 joining us. With us today are Ronald Tutor, Chairman and CEO; and Gary Smalley, Executive Vice President and CFO.

Before we discuss our results, I will 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 Form 10-K, which we filed on February 24, 2022 and in the Form 10-Q that we filed earlier today. 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. Thank you, and I will now turn the call over to Ronald Tutor.

Ronald Tutor

Thanks, Jorge. Good morning, and thank you for joining us. As you have probably seen from our earnings released this morning, we delivered mixed results for the second quarter of 2022. The positive highlight is we continue to generate very strong operating cash of $58 million for the quarter, which when combined with the record cash we generated in the first quarter totaling just under $179 million for the first six months of 2022, an amount that is already greater than any full year of operating cash we produced since the merger of Perini and Tutor-Saliba in 2008. Unlike last quarter, our operating cash was largely driven by the resolution of certain disputes and collections of certain successfully negotiated and approved change orders. I will add that we are still at anticipating significant cash generation through the remainder of this year, as well as of course in 2023. New awards and backlogs were another highlight of our second quarter results. We booked $1.1 billion of new awards and contract adjustments during the second quarter, which helped us to achieve solid year-over-year backlog growth of 14%. Our backlog now stands at $8.5 billion compared to $7.5 billion in June of 2021. And nearly 60% of our current backlog is comprised of higher margin civil work, which bodes well for our earnings potential over the next several years. We would detail some of our major new second quarter awards, as well as our opportunities in a moment.