Steven Fisher: Terrific. I’ll turn it over. Thank you very much.
Operator: Our next question comes from the line of Kevin Lee with Western Alliance Bancorp. Please proceed with your question.
Kevin Lee: Hi, good afternoon, gentlemen. Appreciate your time. Just one quick housekeeping. I know in previous quarters, you guys have disclosed or quantified the charges that you guys had to take in any given quarter. Is there a number by any chance, for those non-cash charges or project impairments for Q4?
Ryan Soroka: Yes. So again, the more significant and material items are going to be disclosed in the K. So in the segment footnote as well in the MD&A, I think we touched upon the two largest earlier related to that, the Building segment project in Florida and a mechanical project in the Northeast.
Gary Smalley: And as far as like the aggregate total, we do that for the year, but there’s no fourth quarter disclosure that’s best required in the case. So you’ll only see the aggregate of, let’s say, settlements or judgments or things like that for the year.
Kevin Lee: Okay. Thanks, Gary. Thanks, Ryan. And lastly, maybe if you could talk about kind of the project flows that you guys are seeing out there. I know there have been quite — there were quite a few projects, namely the one, the toll road in Maryland that got broken up. Could you maybe speak about the flow of infrastructure spending, I guess the funding that comes with that, and if you’re seeing that in terms of the progress with current RFPs and projects that you’re bidding on, it’s — what the timing of those should be like and when we might anticipate hearing of awards of such sort. Thanks.
Ronald Tutor: We’re bidding all the time, and we’re waiting any day for the $800 million Amtrak Tunnel that we bid two months ago. We’re going to be bidding the Inglewood billion dollar transit project in the second quarter, the heart job at $2 billion at the end of the second quarter. We are just — we’re bidding these major jobs as significant with never more than two other bidders and in most cases, one other bidder. So the competition is diminished and it’s certainly seen as an opportunity, and we’re still hopefully going to be attacking the jobs we’ve already been low out, and there’s an unprecedented number of large projects hitting the marketplace where the competition is very limited.
Kevin Lee: All right. Thanks.
Ryan Soroka: Thanks, Kevin.
Operator: Our next question comes from the line of Michael Odell with MidOcean Partners. Please proceed with your question.
Michael Odell: Hey, everyone thanks for taking the time. Just wanted to dig in a little bit, if I look at your billings, in excess of cost liability and compare that to either backlog or revenue seems to be at historical levels and nearly double any other time in history, which to me would imply a fair amount of overbuilding. Has something structurally changed in the business, or should we expect this portion of working capital to reverse to more normalized levels?
Ronald Tutor: Well, the way to explain it is simple. We have basically argued with and successfully been able to dictate higher mobilization payments on the theory. We don’t work on our dollars. We work on the owners. And in most cases, the projects have put much higher mobilizations, payments, anywhere from 8% to 10%, when most jobs have nominal 1% to 3% mobilizations. That in the fact we, as most contractors tried, stay ahead of the owner’s money. On the theory that there’s no reason for us to invest our capital to build an owner’s project. So that’s about the simplest way to sum it up, and I think that trend will continue.
Michael Odell: Okay. You don’t expect that to reverse?
Ronald Tutor: No.
Michael Odell: And then, just as you think about the refinancing, what do you think the optimal leverage is for the business in the near-term, then more over the intermediate term? Just given a lot of your peers have delevered to net cash or very little leverage positions. How does that go into how you structure a refinancing?
Ronald Tutor: Well, we hope to reduce the bond issue principle significantly. We’ve reduced the term loan, and from what we’re projecting in cash flows over the next two years to three years, there’s no reason not to reduce our leverage to seasonal lows. The interest rates are so terrible that there’s no reason to borrow if we’re going to generate this level of cash flow because the company is well financed as we speak. So the additional cash generated over the next two years, I can’t think of a better way to use it than the reduced debt further, particularly at these absurd interest rates.
Michael Odell: Okay. Great. Thank you.
Ronald Tutor: And I might add, as well as the drag the interest is on our earnings.
Operator: Our next question comes from the line of Abe Landa with Bank of America. Please proceed with your question.
Abe Landa: Good afternoon. Thanks for taking my questions, and also thanks for that update on finance. And I have a few more. You did note that the markets are strong, high yield, a lot of money is being raised also on the private side. Maybe can you just talk a little bit more about your framework around kind of what you think your optimal debt looks like, especially in light of kind of cash collections expect to be strong this year and next year.
Ronald Tutor: You want to speak to that. I assume that means currently in the second quarter refinancing as opposed to future.
Ryan Soroka: Yes, so —
Ronald Tutor: You’re looking at —
Ryan Soroka: Abe?
Abe Landa: Yes. I mean I was more looking at, like, what’s the structure? What is your debt structure going to look like? Is it going to be bonds? Is it going to be loans, I mean especially, like, in light of the fact that you don’t want to pay high interest rates? You kind of noted that. And that you kind of expect cash collections this year, next year, et cetera?
