Primoris Services Corporation Announces 2011 Fourth Quarter and Full Year Financial Results
Board of Directors Declares
Financial Highlights
-
Q4 2011 revenues increased 12% to
$373.1 million from$333.2 million in Q4 2010 -
Q4 2011 net income of
$12.5 million , or$0.24 per diluted share, compared to Q4 2010 net income of$12.3 million , or$0.24 per diluted share-
Q4 2011 net income included non-routine charges of approximately
$9.4 million , or$0.11 per diluted share
-
Q4 2011 net income included non-routine charges of approximately
-
2011 annual revenues of
$1.5 billion , up 55% from 2010 -
2011 net income rose to
$58.6 million , or$1.14 per diluted share, from net income of$33.6 million , or$0.72 per diluted share, in 2010. -
At
December 31, 2011 :-
$143.3 million in cash, cash equivalents, and short-term investments -
Total backlog of
$1.16 billion
-
The Company also announced that on
2011 FOURTH QUARTER RESULTS OVERVIEW
Revenues for the 2011 fourth quarter rose 12% to
SEGMENT RESULTS
-
East Construction Services — located
primarily in the southeastern
United States , incorporates the construction business ofJames Construction Group (JCG), Cardinal Contractors, Inc.'s water and wastewater facility construction business, and Cardinal Mechanical, Inc.'s (now a division of JCG) shored excavation for thermal utilities businesses. -
West Construction Services — includes
construction services performed by companies headquartered in the
western
United States includingARB, Inc. ,ARB 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, | ||||||||||
2011 | 2010 | |||||||||
(Unaudited) | (Unaudited) | |||||||||
% of | % of | |||||||||
Segment |
Revenue | Revenue | Revenue | Revenue | ||||||
East Construction Services |
$ |
125,446 |
33.6% | $ | 128,950 | 38.7% | ||||
West Construction Services | 234,093 | 62.8% | 185,971 | 55.8% | ||||||
Engineering | 13,527 | 3.6% |
18,318 |
5.5 % |
||||||
Total | $ | 373,066 | 100.0% | $ | 333,239 | 100.0% | ||||
Segment Gross Margin |
||||||||||
(in thousands, except %) |
||||||||||
For the three months ended December 31, | ||||||||||
2011 | 2010 | |||||||||
(Unaudited) | (Unaudited) | |||||||||
% of | % of | |||||||||
Gross | Segment | Gross | Segment | |||||||
Segment |
Profit | Revenue | Profit | Revenue | ||||||
East Construction Services |
$ |
11,460 |
9.1% | $ | 12,667 | 9.8% | ||||
West Construction Services | 37,557 | 16.0% |
26,816 |
14.4% | ||||||
Engineering | 2,029 | 15.0% | 4,317 | 23.6% | ||||||
Total | $ | 51,046 | 13.7% | $ | 43,800 | 13.1% |
East Construction Services: The decline in revenues for the
quarter was primarily due to a decrease in Industrial group revenues of
West Construction Services: The
Engineering: Revenues declined to
Selling, general and administrative expenses increased by
Operating income for the fourth quarter of 2011 was
Net other expense in the fourth quarter of 2011 was
The provision for income taxes for the fourth quarter of 2011 was
Net income for the fourth quarter of 2011 was
2011 FULL YEAR RESULTS OVERVIEW |
||||||||||
Segment Revenues |
||||||||||
(in thousands, except %) |
||||||||||
For the twelve months ended December 31, | ||||||||||
2011 | 2010 | |||||||||
% of | % of | |||||||||
Segment |
Revenue | Revenue | Revenue | Revenue | ||||||
East Construction Services |
$ |
528,745 |
36.2% | $ | 480,533 | 51.0% | ||||
West Construction Services | 881,733 | 60.4% | 402,273 | 42.7% | ||||||
Engineering |
49,672 |
3.4% |
58,959 |
6.3% |
||||||
Total |
$ |
1,460,150 |
100.0% | $ | 941,765 | 100.0% | ||||
Segment Gross Margin |
||||||||||
(in thousands, except %) |
||||||||||
For the twelve months ended December 31, | ||||||||||
2011 |
2010 |
|||||||||
% of | % of | |||||||||
Gross | Segment | Gross | Segment | |||||||
Segment |
Profit | Revenue | Profit | Revenue | ||||||
East Construction Services |
$ |
57,118 |
10.8% | $ | 48,770 | 10.1% | ||||
West Construction Services | 118,385 | 13.4% | 61,897 | 15.4% | ||||||
Engineering | 9,700 | 19.5% | 12,122 | 20.6% | ||||||
Total | $ | 185,203 | 12.7% | $ | 122,789 | 13.0% |
Revenues in 2011 rose 55% to
Gross profit in 2011 rose 50.8%, or
Net income for 2011 rose 74.2% to
OTHER FINANCIAL INFORMATION
Primoris's balance sheet at
BACKLOG
At
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
that are considered a part of backlog may be cancelled by our customers.
For the full year ended
CONFERENCE CALL
Interested parties may participate in the call by dialing:
- (877) 423-9820 (Domestic)
- (201) 493-6749 (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
Annual Report on Form 10-K for the period ended
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
(In Thousands, Except Per Share Amounts) | |||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||
|
December 31, | ||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||
(Unaudited) | |||||||||||||
Revenues | $ | 373,066 | $ | 333,239 | $ | 1,460,150 | $ | 941,765 | |||||
Cost of Revenues | 322,020 | 289,439 | 1,274,947 | 818,976 | |||||||||
Gross Profit | 51,046 | 43,800 | 185,203 | 122,789 | |||||||||
Selling, general and administrative expenses | 25,779 | 21,136 | 86,204 | 64,985 | |||||||||
Operating Income | 25,267 | 22,664 | 98,999 | 57,804 | |||||||||
Other income (expense): | |||||||||||||
Income (Loss) from non-consolidated entities | (3,287) | 540 | 4,018 | 4,630 | |||||||||
Foreign exchange gain (loss) | 154 | (16) | (96) | 250 | |||||||||
Other income (expense) | (171) | (465) | (1,088) | (1,429) | |||||||||
Interest income | 34 | 132 | 331 | 616 | |||||||||
Interest expense | (1,191) | (2,324) | (5,431) | (6,196) | |||||||||
Income before provision for income taxes | 20,806 | 20,531 | 96,733 | 55,675 | |||||||||
Provision for income taxes | (8,335) | (8,277) | (38,174) | (22,059) | |||||||||
Net income | 12,471 | 12,254 | 58,559 | 33,616 | |||||||||
Earnings per share: | |||||||||||||
Basic: | $ | 0.24 | $ | 0.25 | $ | 1.15 | $ | 0.79 | |||||
Diluted: | $ | 0.24 | $ | 0.24 | $ | 1.14 | $ | 0.72 | |||||
Weighted average common shares outstanding | |||||||||||||
Basic: |
51,059 |
49,360 |
50,707 |
42,694 |
|||||||||
Diluted: |
51,292 |
50,928 |
51,153 |
46,878 |
|||||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(In Thousands, Except Share Amounts) | |||||||
|
December 31, | ||||||
2011 | 2010 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 120,306 | $ | 115,437 | |||
Short term investments | 23,000 | 26,000 | |||||
Customer retention deposits and restricted cash | 31,490 | 12,518 | |||||
Accounts receivable, net | 187,378 | 208,145 | |||||
Costs and estimated earnings in excess of billings | 41,866 | 17,275 | |||||
Inventory | 31,926 | 25,599 | |||||
Deferred tax assets | 10,659 | 9,533 | |||||
Prepaid expenses and other current assets | 13,252 | 12,925 | |||||
Total current assets | 459,877 | 427,432 | |||||
Property and equipment, net | 129,649 | 123,167 | |||||
Investment in non-consolidated entities | 12,687 | 18,805 | |||||
Intangible assets, net | 32,021 | 40,633 | |||||
Goodwill | 94,179 | 94,179 | |||||
Total assets | $ | 728,413 | $ | 704,216 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 106,725 | $ | 89,484 | |||
Billings in excess of costs and estimated earnings | 137,729 | 205,268 | |||||
Accrued expenses and other current liabilities | 59,923 | 55,859 | |||||
Distributions and Dividends payable | 1,532 | 1,234 | |||||
Current portion of capital leases | 6,623 | 4,286 | |||||
Current portion of long-term debt | 13,870 | 9,623 | |||||
Current portion of subordinated debt | 15,167 | 15,833 | |||||
Current portion of contingent earnout liabilities | 3,450 | — | |||||
Total current liabilities | 345,019 | 381,587 | |||||
Long-term capital leases, net of current portion | 4,047 | 7,354 | |||||
Long-term debt, net of current portion | 55,852 | 38,428 | |||||
Long-term subordinated debt, net of current portion | 7,334 | 27,378 | |||||
Deferred tax liabilities | 21,079 | 12,500 | |||||
Contingent earnout liabilities | 9,268 | 24,591 | |||||
Other long-term liabilities | 10,882 | 4,147 | |||||
Total liabilities | 453,481 | 495,985 | |||||
Stockholders' equity | |||||||
Common stock- |
5 |
5 | |||||
Additional paid-in capital | 150,003 | 136,245 | |||||
Retained earnings | 124,924 | 71,981 | |||||
Accumulated other comprehensive income | — | — | |||||
Total stockholders' equity | 274,932 | 208,231 | |||||
Total liabilities and stockholders' equity | $ | 728,413 | $ | 704,216 | |||
Executive
Vice President, Chief Financial Officer
(214) 740-5602
pmoerbeek@prim.com
or
(212)
836-9608
dsullivan@equityny.com
or
(212) 836-9614
tmei@equityny.com
Source:
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