Primoris Services Corporation Announces 2012 Fourth Quarter and Full Year Financial Results
Board of Directors Declares
Financial Highlights
-
Q4 2012 revenues increased by 29% to a record
$480.9 million from the fourth quarter of 2011 -
Q4 2012 net income increased by 36% to
$17.0 million , or$0.33 per diluted share, compared to Q4 2011 net income of$12.5 million , or$0.24 per diluted share -
2012 annual revenues of
$1.5 billion are up 5.6% from 2011 -
2012 net income of
$56.8 million , or$1.10 per diluted share, compares to net income of$58.6 million , of$1.14 per diluted share, in 2011 -
At
December 31, 2012 :-
A total of
$157.6 million in cash, cash equivalents, and short-term investments, an increase of 31% overDecember 31, 2011 -
Total backlog of
$1.35 billion , an increase of 16% fromDecember 31, 2011
-
A total of
The Company also announced that on
2012 FOURTH QUARTER RESULTS OVERVIEW
Revenues for the 2012 fourth quarter increased 29% to
SEGMENT RESULTS
-
East Construction Services - located
primarily in the southeastern
United States , incorporates the construction business ofJames Construction Group (JCG),Cardinal Contractors, Inc. ,Sprint Pipeline Services LP , acquiredMarch 2012 , andThe Saxon Group , acquiredSeptember 2012 . Silva, acquiredMay 2012 , was merged with the operations of JCG. -
West Construction Services - includes
construction services performed by companies headquartered in the
western
United States includingARB, Inc. ,ARB Structures, Inc. , Rockford, andQ3 Contracting Inc. , acquiredNovember 2012 . The Blythe Power Constructors joint venture is also included as part of West Construction Services. -
Engineering - incorporates the results of
OnQuest, Inc. and Born Heaters Canada, ULC.
Segment Revenues (in thousands, except %) |
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|
For the three months ended December 31, | |||||||||||||||
2012
Unaudited |
2011
Unaudited |
|||||||||||||||
% of | % of | |||||||||||||||
Total | Total | |||||||||||||||
Segment |
Revenue | Revenue | Revenue | Revenue | ||||||||||||
East Construction Services | $ | 203,081 | 42.2 | % | $ | 125,446 | 33.6 | % | ||||||||
West Construction Services | 265,509 | 55.2 | % | 234,093 | 62.8 | % | ||||||||||
Engineering | 12,293 | 2.6 | % | 13,527 | 3.6 | % | ||||||||||
Total | $ | 480,883 | 100.0 | % | $ | 373,066 | 100.0 | % | ||||||||
Segment Gross Profit (in thousands, except %) |
||||||||||||||||
For the three months ended December 31, | ||||||||||||||||
2012
Unaudited |
2011
Unaudited |
|||||||||||||||
% of | % of | |||||||||||||||
Gross | Segment | Gross | Segment | |||||||||||||
Segment |
Profit | Revenue | Profit | Revenue | ||||||||||||
East Construction Services | $ | 16,369 | 8.1 | % | $ | 11,460 | 9.1 | % | ||||||||
West Construction Services | 35,031 | 13.2 | % | 37,557 | 16.0 | % | ||||||||||
Engineering | 3,419 | 27.8 | % | 2,029 | 15.0 | % | ||||||||||
Total | $ | 54,819 | 11.4 | % | $ | 51,046 | 13.7 | % | ||||||||
East Construction Services: Revenues increased by
West Construction Services: Revenues increased by
Engineering: Revenues decreased by
Selling, general and administrative expenses ("SG&A") were
Operating income for the 2012 fourth quarter was
Net other expense in the 2012 fourth quarter was
The provision for income taxes for the 2012 fourth quarter was
Net income attributable to Primoris for the 2012 fourth quarter was
Fully diluted shares outstanding for the 2012 fourth quarter increased
by 0.2% to 51.4 million from 51.3 million in 2011's fourth quarter. The
increase in shares was due to shares issued as part of the Sprint
acquisition, for director compensation and for the company's long-term
incentive program, offset by shares repurchased under a share repurchase
plan. During the 2012 fourth quarter, the Company did not purchase any
shares of stock under its 2012 share repurchase program, which expired
on
2012 FULL YEAR RESULTS OVERVIEW
Segment Revenues (in thousands, except %) |
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For the twelve months ended December 31, | |||||||||||||||||
2012
Unaudited |
2011
Unaudited |
||||||||||||||||
% of | % of | ||||||||||||||||
Total | Total | ||||||||||||||||
Segment |
Revenue | Revenue | Revenue | Revenue | |||||||||||||
East Construction Services | $ | 662,248 | 43.0 | % | $ | 528,745 | 36.2 | % | |||||||||
West Construction Services | 832,860 | 54.0 | % | 881,733 | 60.4 | % | |||||||||||
Engineering | 46,626 | 3.0 | % | 49,672 | 3.4 | % | |||||||||||
Total | $ | 1,541,734 | 100.0 | % | $ | 1,460,150 | 100.0 | % | |||||||||
Segment Gross Profit (in thousands, except %) |
|||||||||||||||||
For the twelve months ended December 31, | |||||||||||||||||
2012
Unaudited |
2011
Unaudited |
||||||||||||||||
% of | % of | ||||||||||||||||
Gross | Segment | Gross | Segment | ||||||||||||||
Segment |
Profit | Revenue | Profit | Revenue | |||||||||||||
East Construction Services | $ |
63,811 |
9.6 | % | $ | 57,118 | 10.8 | % | |||||||||
West Construction Services | 119,328 | 14.3 | % | 118,385 | 13.4 | % | |||||||||||
Engineering | 9,571 | 20.5 | % | 9,700 | 19.5 | % | |||||||||||
Total | $ | 192,710 | 12.5 | % | $ | 185,203 | 12.7 | % | |||||||||
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.
In 2012, approximately
CONFERENCE CALL
Interested parties may participate in the call by dialing:
- (877) 407-8293 (Domestic)
- (201) 689-8349 (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) (Unaudited) |
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Three Months Ended |
Twelve Months Ended |
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|
December 31, |
|||||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||||
Revenues | $ | 480,883 | $ | 373,066 | $ | 1,541,734 | $ | 1,460,150 | ||||||||||||
Cost of revenues | 426,064 | 322,020 | 1,349,024 | 1,274,947 | ||||||||||||||||
Gross profit | 54,819 | 51,046 | 192,710 | 185,203 | ||||||||||||||||
Selling, general and administrative expenses | 26,740 | 25,779 | 96,424 | 86,204 | ||||||||||||||||
Operating income | 28,079 | 25,267 | 96,286 | 98,999 | ||||||||||||||||
Other income (expense): | ||||||||||||||||||||
Income (loss) from non-consolidated entities | (709 | ) | (3,287 | ) | 186 | 4,018 | ||||||||||||||
Foreign exchange loss | (6 | ) | 154 | (36 | ) | (96 | ) | |||||||||||||
Other expense | 91 | (171 | ) | (870 | ) | (1,088 | ) | |||||||||||||
Interest income | 14 | 34 | 157 | 331 | ||||||||||||||||
Interest expense | (575 | ) | (1,191 | ) | (3,619 | ) | (5,431 | ) | ||||||||||||
Income before provision for income taxes | 26,894 | 20,806 | 92,104 | 96,733 | ||||||||||||||||
Provision for income taxes | (8,962 | ) | (8,335 | ) | (33,837 | ) | (38,174 | ) | ||||||||||||
Net income | 17,932 | 12,471 | 58,267 | 58,559 | ||||||||||||||||
Net income attributable to noncontrolling interests | (911 | ) | - | (1,511 | ) | - | ||||||||||||||
Net income attributable to Primoris | $ | 17,021 | $ | 12,471 | $ | 56,756 | $ | 58,559 | ||||||||||||
Earnings per share: | ||||||||||||||||||||
Basic: | $ | 0.33 | $ | 0.24 | $ | 1.10 | $ | 1.15 | ||||||||||||
Diluted: | $ | 0.33 | $ | 0.24 | $ | 1.10 | $ | 1.14 | ||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||
Basic | 51,404 | 51,059 | 51,391 | 50,707 | ||||||||||||||||
Diluted | 51,418 | 51,292 | 51,406 | 51,153 |
CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands, Except Share Amounts) (Unaudited) |
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2012 | 2011 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 157,551 | $ | 120,306 | |||||||
Short term investments | 3,441 | 23,000 | |||||||||
Customer retention deposits and restricted cash | 35,377 | 31,490 | |||||||||
Accounts receivable, net | 268,095 | 187,378 | |||||||||
Costs and estimated earnings in excess of billings | 41,701 | 41,866 | |||||||||
Inventory and uninstalled contract materials | 37,193 | 31,926 | |||||||||
Deferred tax assets | 10,477 | 10,659 | |||||||||
Prepaid expenses and other current assets | 10,800 | 13,252 | |||||||||
Total current assets | 564,635 | 459,877 | |||||||||
Property and equipment, net | 184,840 | 129,649 | |||||||||
Investment in non-consolidated entities | 12,831 | 12,687 | |||||||||
Intangible assets, net | 51,978 | 32,021 | |||||||||
Goodwill | 116,941 | 94,179 | |||||||||
Total assets | $ | 931,207 | $ | 728,413 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 151,546 | $ | 106,725 | |||||||
Billings in excess of costs and estimated earnings | 158,892 | 137,729 | |||||||||
Accrued expenses and other current liabilities | 76,152 | 59,923 | |||||||||
Dividends payable | -- | 1,532 | |||||||||
Current portion of capital leases | 3,733 | 6,623 | |||||||||
Current portion of long-term debt | 19,446 | 13,870 | |||||||||
Current portion of subordinated debt | -- | 15,167 | |||||||||
Current portion of contingent earnout liabilities | 10,900 | 3,450 | |||||||||
Total current liabilities | 420,669 | 345,019 | |||||||||
Long-term capital leases, net of current portion | 3,831 | 4,047 | |||||||||
Long-term debt, net of current portion | 128,367 | 55,852 | |||||||||
Long-term subordinated debt, net of current portion | -- | 7,334 | |||||||||
Long-term contingent earnout liabilities, net of current portion | 12,531 | 9,268 | |||||||||
Deferred tax liabilities | 20,018 | 21,079 | |||||||||
Other long-term liabilities | 13,153 | 10,882 | |||||||||
Total liabilities | $ | 598,569 | $ | 453,481 | |||||||
Stockholders' equity | |||||||||||
Preferred Stock - |
-- | -- | |||||||||
Common stock- |
5 | 5 | |||||||||
Additional paid-in capital | 155,605 | 150,003 | |||||||||
Retained earnings | 175,517 | 124,924 | |||||||||
Noncontrolling interest | 1,511 | -- | |||||||||
Total stockholders' equity | 332,638 | 274,932 | |||||||||
Total liabilities and stockholders' equity | $ | 931,207 | $ | 728,413 |
Executive
Vice President, Chief Financial Officer
pmoerbeek@prim.com
or
Director of Investor Relations
ktholking@prim.com
Source:
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