Emir Ibrahimovic
Chelsea Behrens
Caleb Pols
Mark Blazo
Company Background
• Leading provider of diversified general contracting,
design and build, and self-perform construction services
• Comprised of for different parts: Building Group, Civil
Group, Specialty Contractors Group, and Management
Services
• Casinos, Hotels, Resorts, Hospitals, Educational
Facilities, Highways, Bridges, etc.
• Operating history of 115 years
• Approximately 8,000 employees around the world
Growth
• The businesses are integrated with resources shared
across business units
• They have structured a balanced business between Civil
and Building operating capabilities
• Geographic footprint expanded through acquisitions
• Significant new contract opportunities exist in their core
markets
• US infrastructure rehabilitation need
• Military buildup and relocation to Guam
• Reconstruction activities in Afghanistan & Haiti
SWOT Analysis
• Strengths –
• Civil Segment Backlog
• Acquisitions
• Competitive Advantage
• Weaknesses –
• Unrealized Revenue
• International
• Building Segment is still majority of revenue
• 83% in 2009, 70% in 2010, and 49% in 2011
SWOT Analysis
• Opportunities –
• American Jobs Act
• U.S. Military
• Threats –
• Current Economic Conditions
• Budget Shortfalls
Current Activities
• Recession
• Two years of projects in pipeline.
• Any additional projects will help increase profit margins.
• Recently added a $94 million project to repair part of the
Washington Monument.
• In the processes of building new corporate facilities for
Amazon.com, Facebook, and Apple
• Apple intends to build a corporate
campus in Cupertino, California,
which will be approximately
2.8 million square feet.
Quarter 3 Results
• Revenue of $1.10 billion compared to $1.17 billion in Q3 2011
• Net income of $42.6 million (adjusted net income of $25.8
million) compared to $35.5 million in Q3 2011
• Diluted EPS of $0.88 (adjusted diluted EPS of $0.54) compared
to $0.74 in Q3 2011
• Affirming FY2012 guidance: Revenue of $4.0 billion to $4.5
billion; Diluted EPS of $1.50 to $1.70, excluding discrete items
Period Ending
Assets
Current Assets
Cash And Cash Equivalents
31-Dec-11 31-Dec-10 31-Dec-09
Net Receivables
1,633,429 1,023,800 1,235,434
Other Current Assets
Total Current Assets
Long Term Investments
239,677
76,928
494,928
42,314
348,309
30,811
1,950,034 1,561,042 1,614,554
62,311
88,129
101,201
Property Plant and Equipment
491,377
362,437
348,821
Goodwill
Intangible Assets
Other Assets
892,602
197,999
18,804
621,920
132,551
13,141
602,471
134,327
19,280
Total Assets
3,613,127 2,779,220 2,820,654
Liabilities
Current Liabilities
Accounts Payable
Short/Current Long Term Debt
Total Current Liabilities
Long Term Debt
Other Liabilities
Deferred Long Term Liability Charges
Total Liabilities
1,333,275
59,959
1,393,234
946,780 1,280,102
21,334
31,334
968,114 1,311,436
612,548
109,597
374,350
44,680
84,771
57,044
97,921
79,082
78,977
2,213,300 1,466,226 1,532,228
61.2%
52.8%
54.3%
Stockholders' Equity
Common Stock
Retained Earnings
47,329
402,679
47,090
316,531
Capital Surplus
993,434
985,413 1,012,983
Other Stockholder Equity
Total Stockholder Equity
Net Tangible Assets
-43,615
-36,040
48,539
260,121
-33,217
1,399,827 1,312,994 1,288,426
309,226
558,523
551,628
Period Ending:
12/31/2011
12/31/2010
12/31/2009
12/31/2008
Total Revenue
$3,716,317
100.0% $3,199,210
100.0% $5,151,966
100.0% $5,660,286
100.0%
Cost of Revenue
$3,320,976
89.4% $2,861,362
89.4% $4,763,919
92.5% $5,327,056
94.1%
10.6%
10.6%
Operating Expenses
Research and
Development
Sales, General and
Admin.
Non-Recurring Items
Operating Income
Add'l income/expense
items
Earnings Before Interest
and Tax
$0
0.0%
$0
0.0%
7.5%
$0
0.0%
5.9%
$0
0.0%
$226,965
6.1%
$165,536
5.2%
$176,504
3.4%
$133,998
2.4%
$0
0.0%
$0
0.0%
$0
0.0%
$224,478
4.0%
$168,376
4.5%
$172,312
5.4%
$211,543
4.1%
($25,246)
-0.4%
$4,421
0.1%
($2,280)
4.6%
$172,797
$35,750
Income Tax
$50,899
$170,032
Net Income
$86,148
2.3%
$103,500
3.2%
-0.3%
0.1%
$68,079
$137,061
0.2%
($15,687)
$7,501
1.7%
$9,559
4.1%
0.3%
$55,968
0.0%
$212,641
$10,564
1.4%
$1,098
5.3%
1.0%
Interest Expense
-0.1%
0.1%
$4,163
1.3%
2.7%
$55,290
($75,140)
1.0%
-1.3%
Ratio Analysis
Ratio
2010
2011
2012
Industry
Current Ratio
1.2
1.6
1.4
1.3
GPM %
7.5%
10.6%
10.6%
9.7%
Long Term
Debt %
3%
13.5%
17%
12%
Operating Exp
3.4%
5.2%
6.1%
6.5%
As of October 30, 2012 the average S&P 500 P/E ratio is 15.95.
As of March 31, 2012 the TPC P/E ratio is 9.558
Technical Analysis
• Yahoo Analysts - $18.00
• MarketWatch Analyst - $18.67
Risks
• Diversification
• Where are their revenues coming from?
• 39% Private
• 7% Federal Government
• 54% State & Local Government
• 1 year price per share history
• 2011 $14.53
• 2012 $10.28
• Debt
• $690.34 Million
• Profit Margin
• -6.04%
Proposal
• 150 shares @ $10.21 = $1,531.50
• Long term holding for IPO: 3-5 years
Questions?