Perini Corporation Reports 2002 Results Fourth quarter net income of $9.5 million, or 40 cents per
FRAMINGHAM, Mass.--Perini Corporation (AMEX:PCR), a building, civil construction and construction management company, last week reported results for the year ended December 31, 2002.
Net income for the year ended Dec. 31, was $23.1 million, as compared to record net income of $26.4 million in 2001. Basic earnings per common share were $0.92 for the year ended December 31, as compared to $1.07 for the year ended December 31, 2001. Diluted earnings per common share were $0.91 for the year ended December 31, 2002, as compared to $1.04 for the year ended December 31, 2001. Revenues from construction operations totaled $1,085.0 million for the year ended December 31, 2002, as compared to record revenues of $1,553.4 million for the year ended December 31, 2001.
Results in both years were negatively impacted by recognition of the Company's share of losses experienced on a Central Artery/Tunnel "Big Dig" joint venture project in Boston. This project reached substantial completion during the third quarter of 2002. In addition, 2002 results were negatively impacted by the decrease in revenues due to a slowdown in new work awards and increased operating expenses related to new work acquisition initiatives.
The decrease in revenues in 2002 compared to 2001 primarily reflects the decrease in Company's year-end backlog at December 31, 2001 compared to the record year-end backlog at December 31, 2000, including a decreased volume of work at the Mohegan Sun Expansion project in Uncasville, CT, as well as on two large hotel/casino projects in the southwestern United States, all of which were substantially completed in early 2002.
Net income was $9.5 million for the fourth quarter of 2002, a 49% increase compared to fourth quarter net income of $6.4 million in 2001. Basic earnings per common share were $0.40 for the fourth quarter of 2002, as compared to $0.26 for the fourth quarter of 2001. Diluted earnings per common share were $0.40 for the fourth quarter of 2002, as compared to $0.25 for the fourth quarter of 2001. Revenues from construction operations totaled $262.6 million for the fourth quarter of 2002, as compared to $362.5 million for the fourth quarter of 2001. The increase in net income in spite of the decrease in revenues for the fourth quarter of 2002 is due primarily to favorable job close-out experience on several gaming and hospitality projects as well as upward profit adjustments on a civil infrastructure project in New York City and an international project performed at numerous locations worldwide.
Year-end Backlog at $990 Million
The backlog of uncompleted construction work at December 31, 2002 was $990 million compared to $1,214 million at December 31, 2001. New contract awards and adjustments to contracts in process added to the backlog during 2002 amounted to $862 million compared to $978 million in 2001. The approximate $128 million of new contract awards and adjustments to contracts in process added to the backlog during the fourth quarter of 2002 include a $90 million contract for construction of a Native American gaming facility in California and $21 million in contracts for U.S. government agencies in southwest Asia.
Financial Condition Improved in 2002
The Company's financial condition continued to improve during the year ended December 31, 2002. Working capital increased to $119.1 million at December 31, 2002, as compared to working capital of $93.4 million at December 31, 2001. Total debt decreased to $12.5 million at December 31, 2002, as compared to $17.8 million at December 31, 2001. Net worth increased to $86.6 million at December 31, 2002, as compared to net worth of $79.4 million at December 31, 2001. The overall increase in net worth primarily resulted from 2002 net income which was partially offset by the recognition of an Accumulated Other Comprehensive Loss of approximately $13.7 million in accordance with SFAS No. 87, "Employers' Accounting for Pensions." This charge was primarily due to a decline in the market value of pension fund assets related to the overall poor performance of the U.S. equity markets in 2002.
Robert Band, President and Chief Operating Officer, stated that, "We are pleased to report solid bottom-line performance for both the fourth quarter and full year 2002. Despite the sluggish pace of new contract awards in some of our core markets last year, Perini's ability to meet our clients' performance expectations led to improved profit margins.
"Although new work awards continue at a slower pace than we anticipated, we are expecting an improving new work award period once the economic and geopolitical picture begins to improve. Our clients' demand for the Company's preconstruction services remains at a high level, and plans for public works construction at the local, state and federal levels remain strong in our market areas. We are also very pleased by the recently completed acquisition of James A. Cummings, Inc. which had $170 million in firm backlog on January 1, 2003 and is anticipated to make a positive impact on 2003 operating results."
