Primoris Services Corporation Announces 2010 Fourth Quarter and Full Year Financial Results
Q4 2010 Financial Highlights
-
Revenues increased to
$333.2 million from$117.2 million at Q4 2009 -
Net income of
$12.3 million , or$0.24 per diluted share, compared to Q4 2009 net income of$3.7 million , or$0.10 per diluted share -
$141.4 million in cash, cash equivalents, and short-term investments atDecember 31, 2010 -
Total backlog at
December 31, 2010 of$895.8 million
The Company also announced that on
Mr. Pratt continued, "We ended the year in a solid financial position, including cash and short term investments of
2010 FOURTH QUARTER RESULTS OVERVIEW
Revenues for the 2010 fourth quarter rose 184.2% to
Gross profit for the 2010 fourth quarter was
2010 FULL YEAR RESULTS OVERVIEW
Revenues in 2010 increased 101.7% to
Gross profit in 2010 rose by 62.5% to
SEGMENT RESULTS
Since
-
East Construction Services — located primarily in the southeastern
United States , incorporates JCG's construction business, andCardinal Contractors, Inc.'s water and wastewater, andCardinal Mechanical, Inc.'s shored excavation for thermal utilities businesses.
-
West Construction Services — includes construction services performed in the western
United States byARB, Inc. , andARB Structures, Inc. , and, effectiveNovember 1, 2010 , Rockford.
-
Engineering — incorporates the results of
Onquest, Inc. and Born Heaters Canada, ULC.
Segment Revenues | ||||
(in thousands, except %) | ||||
For the three months ended December 31, | ||||
2010 Unaudited |
2009 Unaudited |
|||
% of | % of | |||
Segment | Segment | |||
Segment | Revenue | Revenue | Revenue | Revenue |
(Unaudited) | ||||
East Construction Services | $128,950 | 38.7% | $26,987 | 23.0% |
West Construction Services | 185,971 | 55.8% | 76,457 | 65.2% |
Engineering | 18,318 | 5.5% | 13,795 | 11.8% |
Total | $333,239 | 100.0% | $117,239 | 100.0% |
For the twelve months ended December 31, | ||||
2010 | 2009 | |||
% of | % of | |||
Segment | Segment | |||
Segment | Revenue | Revenue | Revenue | Revenue |
(Unaudited) | ||||
East Construction Services | $480,533 | 51.0% | $69,015 | 14.8% |
West Construction Services | 402,273 | 42.7% | 340,222 | 72.9% |
Engineering | 58,959 | 6.3% | 57,773 | 12.3% |
Total | $941,765 | 100.0% | $467,010 | 100.0% |
Segment Gross Margin | ||||
(in thousands, except %) | ||||
For the three months ended December 31, | ||||
2010 Unaudited |
2009 Unaudited |
|||
% of | % of | |||
Gross | Segment | Gross | Segment | |
Segment | Profit | Revenue | Profit | Revenue |
(Unaudited) | ||||
East Construction Services | $12,667 | 9.8% | $2,103 | 7.8% |
West Construction Services | 26,816 | 14.4% | 16,264 | 21.3% |
Engineering | 4,317 | 23.6% | 1,805 | 13.1% |
Total | $43,800 | 13.1% | $20,172 | 17.2% |
For the twelve months ended December 31, | ||||
2010 | 2009 | |||
% of | % of | |||
Gross | Segment | Gross | Segment | |
Segment | Profit | Revenue | Profit | Revenue |
(Unaudited) | ||||
East Construction Services | $48,770 | 10.1% | $6,544 | 9.5% |
West Construction Services | 61,897 | 15.4% | 62,927 | 18.5% |
Engineering | 12,122 | 20.6% | 6,104 | 10.6% |
Total | $122,789 | 13.0% | $75,575 | 16.2% |
East Construction Services: The
West Construction Services: The
Engineering: Revenues increased by
Selling, general and administrative expenses ("SG&A") increased by
Operating income for the 2010 fourth quarter was
Net other expense in the 2010 fourth quarter of
The provision for income taxes for the fourth quarter of 2010 was
Net income for the fourth quarter of 2010 was
Fully diluted shares outstanding for the fourth quarter of 2010 increased by 33.6% to 50.9 million from 38.1 million in last year's fourth quarter, due to the full quarter impact of the 8.2 million shares issued as part of the JCG acquisition, the impact of the 1.6 million shares issued as part of the Rockford acquisition and the impact of the conversion of 4.3 million warrants to common shares by the start of the quarter.
OTHER FINANCIAL INFORMATION
Primoris's balance sheet at
BACKLOG
At
Revenues generated by the
Backlog should not be considered a comprehensive indicator of future revenues, as a portion of Primoris's revenues are derived from projects that are not part of a backlog calculation and projects in backlog may be cancelled by our customers.
NOTE REGARDING ROCKFORD ACQUISITION
As previously announced, Primoris acquired Rockford on
CONFERENCE CALL
Interested parties may participate in the call by dialing:
- (877) 869-3847 (Domestic)
- (201) 689-8261 (International)
The conference call will also be broadcasted live via the Investor Relations section of Primoris's website at www.prim.com. Once at the Investor Relations section, please click on "Events & Presentations". If you are unable to participate in the live call, the conference call will be archived and can be accessed for approximately 90 days.
ABOUT PRIMORIS
Founded in 1946, Primoris, through various subsidiaries, has grown to become one of the largest specialty contractors and infrastructure companies in
The
FORWARD LOOKING STATEMENTS
This press release contains certain forward-looking statements, including with regard to the Company's future performance. Words such as "estimated," "believes," "expects," "projects," "may," and "future" or similar expressions are intended to identify forward-looking statements. Forward-looking statements inherently involve risks and uncertainties, including without limitation, those described in this press release and those detailed in the "Risk Factors" section and other portions of our Annual Report on Form 10-K for the year ended
CONSOLIDATED STATEMENTS OF INCOME | ||||
(In Thousands, Except Per Share Amounts) | ||||
Three Months Ended | Year Ended | |||
December 31, | December 31, | |||
2010 | 2009 | 2010 | 2009 | |
Unaudited | Unaudited | |||
Revenues | $ 333,239 | $ 117,239 | $ 941,765 | $ 467,010 |
Cost of revenues | 289,439 | 97,067 | 818,976 | 391,435 |
Gross profit | 43,800 | 20,172 | 122,789 | 75,575 |
Selling, general and administrative expenses | 21,136 | 11,956 | 64,985 | 34,781 |
Merger related stock expense | -- | 390 | -- | 390 |
Operating income | 22,664 | 7,826 | 57,804 | 40,404 |
Other income (expense): | ||||
Income from non-consolidated investments | 540 | 3,411 | 4,630 | 8,753 |
Foreign exchange (loss) gain | (16) | 260 | 250 | 293 |
Other (expense) income | (465) | -- | (1,429) | -- |
Interest income | 132 | 86 | 616 | 640 |
Interest expense | (2,324) | (516) | (6,196) | (1,979) |
Income from continuing operations, before provision for income taxes | 20,531 | 11,067 | 55,675 | 48,111 |
Provision for income taxes | (8,277) | (4,273) | (22,059) | (18,350) |
Income from continuing operations | 12,254 | 6,794 | 33,616 | 29,761 |
Loss on discontinued operations, net of income taxes |
-- |
(3,049) |
-- |
(3,849) |
Net income | $ 12,254 | $ 3,745 | $ 33,616 | $ 25,912 |
Earnings (loss) per share: | ||||
Basic: | ||||
Income from continuing operations | $ 0.25 | $ 0.21 | $ 0.79 | $ 0.93 |
Loss on discontinued operations | $ -- | $ (0.10) | $ -- | $ (0.12) |
Net income | $ 0.25 | $ 0.11 | $ 0.79 | $ 0.81 |
Diluted: |
||||
Income from continuing operations | $ 0.24 | $ 0.18 | $ 0.72 | $ 0.86 |
Loss on discontinued operations | $ -- | $ (0.08) | $ -- | $ (0.11) |
Net income | $ 0.24 | $ 0.10 | $ 0.72 | $ 0.75 |
Weighted average common shares outstanding: | ||||
Basic | 49,360 | 32,644 | 42,694 | 31,937 |
Diluted | 50,928 | 38,113 | 46,878 | 34,418 |
CONSOLIDATED BALANCE SHEETS | ||
(In Thousands, Except Share Amounts) | ||
December 31, | December 31, | |
2010 | 2009 | |
ASSETS | ||
Current assets: | ||
Cash and cash equivalents | $ 115,437 | $ 90,004 |
Short term investments | 26,000 | 30,058 |
Customer retention deposits | 12,518 | 6,845 |
Accounts receivable, net | 208,145 | 108,492 |
Costs and estimated earnings in excess of billings | 17,275 | 11,378 |
Inventory | 25,599 | 22,275 |
Deferred tax assets | 9,533 | 5,967 |
Prepaid expenses and other current assets | 12,925 | 5,501 |
Current assets from discontinued operations | -- | 5,304 |
Total current assets | 427,432 | 285,824 |
Property and equipment, net | 123,167 | 92,525 |
Investment in non-consolidated entities | 18,805 | 5,599 |
Intangible assets, net | 40,633 | 32,695 |
Goodwill | 94,179 | 61,714 |
Total assets | $ 704,216 | $ 478,357 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Current liabilities: | ||
Accounts payable | $ 89,484 | $ 62,568 |
Billings in excess of costs and estimated earnings | 205,268 | 114,035 |
Accrued expenses and other current liabilities | 55,126 | 37,322 |
Distributions and dividends payable | 1,234 | 2,987 |
Current portion of capital leases | 4,286 | 4,220 |
Current portion of long-term debt | 9,623 | 6,482 |
Current portion of subordinated debt | 15,833 | 10,397 |
Current liabilities of discontinued operations | 733 | 6,511 |
Total current liabilities | 381,587 | 244,522 |
Long-term capital leases, net of current portion | 7,354 | 7,734 |
Long-term debt, net of current portion | 38,428 | 26,368 |
Long-term subordinated debt, net of current portion | 27,378 | 43,853 |
Deferred tax liabilities | 12,500 | 2,643 |
Contingent earnout liabilities | 24,591 | 9,278 |
Other long-term liabilities | 4,147 | -- |
Total liabilities | 495,985 | 334,398 |
Commitments and contingencies | ||
Stockholders' equity | ||
Preferred stock--$.0001 par value, 1,000,000 shares authorized, none issued and outstanding at December 31, 2010 and 81,852.78 at December 31, 2009 | -- | -- |
Common stock--$.0001 par value, 90,000,000 shares authorized, 49,359,600 and 32,704,903 issued and outstanding at December 31, 2010 and December 31, 2009 | 5 | 3 |
Additional paid-in capital | 136,245 | 100,644 |
Retained earnings | 71,981 | 42,982 |
Accumulated other comprehensive income | -- | 330 |
Total stockholders' equity | 208,231 | 143,959 |
Total liabilities and stockholders' equity | $ 704,216 | $ 478,357 |
CONTACT: Company ContactSource:Peter J. Moerbeek Executive Vice President, Chief Financial Officer (214) 740-5602 pmoerbeek@prim.comThe Equity Group Inc. Devin Sullivan Senior Vice President (212) 836-9608 dsullivan@equityny.com
News Provided by Acquire Media