Primoris Services Corporation Announces 2011 First Quarter Financial Results
Board of Directors Declares
Q1 2011 Financial Highlights
-
Revenues increased to
$359.6 million from$175.0 million in Q1 2010 -
Net income of
$12.3 million , or$0.24 per diluted share, compared to Q1 2010 net income of$6.7 million , or$0.15 per diluted share -
Net cash provided by operating activities of
$30.7 million -
At
March 31, 2011 :-
$154.4 million in cash, cash equivalents, and short-term investments -
Total backlog of
$1.06 billion
-
The Company also announced that on
2011 FIRST QUARTER RESULTS OVERVIEW
Revenues for the 2011 first quarter rose 105.5% to
Gross profit for the 2011 first quarter rose by 66.0% to
SEGMENT RESULTS
-
East Construction Services — located
primarily in the southeastern
United States , incorporates the construction business of JCG, and Cardinal Contractors, Inc.'s water and wastewater, and Cardinal Mechanical, Inc.'s shored excavation for thermal utilities businesses. -
West Construction Services — includes
construction services performed primarily 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 |
||||||||
For the three months ended March 31, | ||||||||
2011
Unaudited |
2010
Unaudited |
|||||||
Segment |
Revenue |
% of Segment Revenue |
Revenue |
% of Segment Revenue |
||||
(Unaudited) | ||||||||
East Construction Services | $128,079 | 35.6% | $104,236 | 59.6% | ||||
West Construction Services | 220,114 | 61.2% | 59,887 | 34.2% | ||||
Engineering | 11,452 | 3.2% | 10,859 | 6.2% | ||||
Total | $359,645 | 100.0% | $174,982 | 100.0% |
Segment Gross Margin |
||||||||
For the three months ended March 31, | ||||||||
2011
Unaudited |
2010
Unaudited |
|||||||
Segment |
Gross Profit |
% of Segment Revenue |
Gross Profit |
% of Segment Revenue |
||||
(Unaudited) | ||||||||
East Construction Services | $13,042 | 10.2% | $9,621 | 9.2% | ||||
West Construction Services | 24,764 | 11.3% | 12,211 | 20.4% | ||||
Engineering | 2,824 | 24.7% | 2,641 | 24.3% | ||||
Total | $40,630 | 11.3% | $24,473 | 14.0% |
East Construction Services: The
West Construction Services: The
Engineering: Revenues increased by
Selling, general and administrative expenses ("SG&A") increased
Operating income for the 2011 first quarter was
Net other expense in the 2011 first quarter of
The provision for income taxes for the first quarter of 2011 was
Net income for the first quarter of 2011 was
Fully diluted shares outstanding for the first quarter of 2011 increased
by 12.1% to 51.1 million from 45.5 million in last year's first quarter,
due primarily to the impact of the 1.6 million shares issued as part of
the Rockford acquisition, the effect of the conversion of the Company's
warrants in
OTHER FINANCIAL INFORMATION
Primoris's balance sheet at
BACKLOG
At
No substantial backlog was recorded from the Rockford acquisition because the current work in progress consists primarily of the Ruby pipeline project, which is a reimbursable cost plus fixed fee contract.
Backlog should not be considered a comprehensive indicator of future
revenues, as a significant 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. For the three months ended
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
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
Quarterly Report on Form 10-Q for the period ended
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|||||||||
Three Months Ended |
|||||||||
2011 |
2010 |
||||||||
Revenues | $ | 359,645 | $ | 174,982 | |||||
Cost of revenues | 319,015 | 150,509 | |||||||
Gross profit | 40,630 | 24,473 | |||||||
Selling, general and administrative expenses | 19,845 | 13,446 | |||||||
Operating income | 20,785 | 11,027 | |||||||
Other income (expense): | |||||||||
Income from non-consolidated entities | 826 | 968 | |||||||
Foreign exchange gain | 36 | 92 | |||||||
Other expenses | (297 | ) | (309 | ) | |||||
Interest income | 158 | 180 | |||||||
Interest expense | (1,371 | ) | (1,307 | ) | |||||
Income before provision for income taxes | 20,137 | 10,651 | |||||||
Provision for income taxes | (7,859 | ) | (3,953 | ) | |||||
Net income | $ | 12,278 | $ | 6,698 | |||||
Earnings per share: | |||||||||
Basic: | $ | 0.25 | $ | 0.20 | |||||
Diluted: | $ | 0.24 | $ | 0.15 | |||||
Weighted average common shares outstanding: | |||||||||
Basic | 49,675 | 33,202 | |||||||
Diluted | 51,051 | 45,544 | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
March 31, 2011 |
December 31, 2010 |
|||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 131,388 | $ | 115,437 | ||
Short term investments | 23,000 | 26,000 | ||||
Customer retention deposits | 15,599 | 12,518 | ||||
Accounts receivable, net | 146,819 | 208,145 | ||||
Costs and estimated earnings in excess of billings | 25,447 | 17,275 | ||||
Inventory | 22,248 | 25,599 | ||||
Deferred tax assets | 9,533 | 9,533 | ||||
Prepaid expenses and other current assets | 8,967 | 12,925 | ||||
Total current assets | 383,001 | 427,432 | ||||
Property and equipment, net | 121,015 | 123,167 | ||||
Investment in non-consolidated entities | 18,543 | 18,805 | ||||
Intangible assets, net | 37,868 | 40,633 | ||||
Goodwill | 94,179 | 94,179 | ||||
Total assets | $ | 654,606 | $ | 704,216 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 82,239 | $ | 89,484 | ||
Billings in excess of costs and estimated earnings | 168,379 | 205,268 | ||||
Accrued expenses and other current liabilities | 53,541 | 55,126 | ||||
Dividends payable | 1,276 | 1,234 | ||||
Current portion of capital leases | 3,957 | 4,286 | ||||
Current portion of long-term debt | 9,680 | 9,623 | ||||
Current portion of subordinated debt | 14,479 | 15,833 | ||||
Current liabilities of discontinued operations | 733 | 733 | ||||
Total current liabilities | 334,284 | 381,587 | ||||
Long-term capital leases, net of current portion | 6,511 | 7,354 | ||||
Long-term debt, net of current portion | 36,007 | 38,428 | ||||
Long-term subordinated debt, net of current portion | 18,799 | 27,378 | ||||
Deferred tax liabilities | 12,500 | 12,500 | ||||
Contingent earnout liabilities | 10,088 | 24,591 | ||||
Other long-term liabilities | 1,562 | 4,147 | ||||
Total liabilities | 419,751 | 495,985 | ||||
Commitments and contingencies
Stockholders' equity |
|
|||||
Common stock-$.0001 par value, 90,000,000 shares |
5 |
5 |
||||
Additional paid-in capital | 151,867 | 136,245 | ||||
Retained earnings | 82,983 | 71,981 | ||||
Total stockholders' equity | 234,855 | 208,231 | ||||
Total liabilities and stockholders' equity | $ | 654,606 | $ | 704,216 |
Executive
Vice President, Chief Financial Officer
pmoerbeek@prim.com
or
Senior Vice
President
dsullivan@equityny.com
Source:
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