Tutor Perini Corporation (NYSE:TPC) Q1 2022 Earnings Conference Call May 4, 2022 5:00 PM ET

Company Participants

Ronald Tutor – Chairman and Chief Executive Officer

Gary Smalley – Executive Vice President and Chief Financial Officer

Jorge Casado – Vice President of Investor Relations

Conference Call Participants

Alex Rygiel – B. Riley

Brent Thielman – D.A Davidson

Steven Fisher – UBS

Operator

Good day, ladies and gentlemen. And welcome to the Tutor Perini Corporation's First Quarter 2022 Earnings Conference Call. My name is Joe 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, 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 disclosures about risk factors that could potentially contribute to such differences, in our Form 10-K, which we filed on February 24th, 2022 and in the Form 10-Q that we are filing 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

Thank you, Jorge. Good afternoon. And thank you for joining us. Our first quarter results were highlighted by a substantial record setting level of operating cash for our first quarter. Contrary to our typical negative cash flow in almost every first quarter since the merger, we generated nearly $121 million of cash. Driven primarily by the resolution of certain disputes, and the collection of certain successfully negotiated and improved change orders that we have discussed, during the Q&A portion of our last earnings call, back in February.

Gary would provide more details and put it in perspective a bit later, but suffice it to say, that it was by far our largest first-quarter of operating cash, since the merger in 2008 with Tutor [Indiscernible]. However, our first quarter earnings were significantly reduced, by the impact of an unfavorable legal ruling on a completed bridge project in New York, as well as temporary timing impacts related certain lower margin, lower-risk change orders, that were successfully negotiated and approved for a mass transient project in California. Which although increasing the projects overall profit, reduced its overall profit margin percentage, due to its limitations on subcontractor margin.