Primoris Services Corporation Announces 2013 First Quarter Financial Results
Board of Directors Increases Quarterly Cash Dividend by 17%
Q1 2013 Financial Highlights
-
Revenues increased by 40.6% to
$410.0 million from the first quarter of 2012 -
Net income attributable to Primoris of
$9.8 million , or$0.19 per diluted share, compared to Q1 2012 net income attributable to Primoris of$10.5 million , or$0.20 per diluted share -
At
March 31, 2013 :-
$144.7 million in cash, cash equivalents, and short-term investments -
Total backlog of
$1.22 billion , an increase of 9.1% fromMarch 31, 2012
-
The company also declared a 16.7% increase in the quarterly cash
dividend to
2013 FIRST QUARTER RESULTS OVERVIEW
Revenues for the 2013 first quarter increased 40.6% to
In
SEGMENT RESULTS
-
East Construction Services — The East
Construction Services segment consists of businesses located primarily
in the southeastern
United States and along theGulf Coast . Included in this segment are the operations of JCG's Heavy Civil, Industrial and Infrastructure & Maintenance divisions; Cardinal Contractor's water and wastewater construction activities; the services provided by the three 2012 acquisitions (Sprint, Silva and Saxon) and the results of FSSI, acquired inMarch 2013 . -
West Construction Services — The West
Construction Services segment consists of businesses located primarily
in the western
United States . The segment primarily includes the underground and industrial operations of ARB, Inc.; the operations of Rockford which performs its major capital underground work throughoutthe United States ; the operations of ARB Structures, and the 2012 acquisition ofQ3C Contracting, Inc. The segment also includes the operations of the Blythe Power Constructors joint venture. -
Engineering — The Engineering segment
includes the results of
OnQuest, Inc. and OnQuest Canada, ULC.
Segment Revenues (in thousands, except %) |
||||||||||||
For the three months ended |
||||||||||||
2013 |
2012 |
|||||||||||
% of |
% of |
|||||||||||
Segment |
Segment |
|||||||||||
Segment |
Revenue |
Revenue |
Revenue |
Revenue |
||||||||
East Construction Services | $ | 190,211 | 46.4 | % | $ | 121,850 | 41.8 | % | ||||
West Construction Services | 207,686 | 50.6 | % | 158,031 | 54.2 | % | ||||||
Engineering | 12,098 | 3.0 | % | 11,692 | 4.0 | % | ||||||
Total | $ | 409,995 | 100.0 | % | $ | 291,573 | 100.0 | % | ||||
Segment Gross Margin (in thousands, except %) |
||||||||||||
For the three months ended |
||||||||||||
2013 |
2012 |
|||||||||||
% of | % of | |||||||||||
Gross | Segment | Gross | Segment | |||||||||
Segment |
Profit | Revenue | Profit | Revenue | ||||||||
East Construction Services | $ | 14,995 | 7.9 | % | $ | 11,418 | 9.4 | % | ||||
West Construction Services | 28,749 | 13.8 | % | 24,401 | 15.4 | % | ||||||
Engineering | 2,352 | 19.4 | % | 1,777 | 15.2 | % | ||||||
Total | $ | 46,096 | 11.2 | % | $ | 37,596 | 12.9 | % | ||||
East Construction Services: Revenues increased by
West Construction Services: Revenues increased by
Engineering: Revenues increased by
Selling, general and administrative expenses ("SG&A") were
Operating income for the 2013 first quarter was
Net other income and expenses in the 2013 first quarter was an expense
of
The provision for income taxes for the 2013 first quarter was
Net income attributable to Primoris for the 2013 first quarter was
Fully diluted shares outstanding for the 2013 first quarter increased by 0.3% to 51.5 million from 51.3 million in last year's first quarter.
OTHER FINANCIAL INFORMATION
Primoris's balance sheet at
BACKLOG |
|||
Segment |
Backlog at |
||
East Construction Services | $ | 922 | |
West Construction Services | 286 | ||
Engineering | 16 | ||
Total | $ | 1,224 | |
At
As discussed in the Quarterly Report on Form 10-Q for the period ended
Backlog should not be considered a comprehensive indicator of future revenues, as a portion of Primoris's revenues are still derived from projects that are not part of a backlog calculation, including time-and-equipment, time-and-materials, and cost-reimbursable-plus-fee contracts, and projects that are considered a part of backlog may be cancelled by our customers.
CONFERENCE CALL
Interested parties may participate in the call by dialing:
- (877) 407-8029 (Domestic)
- (201) 689-8029 (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 known and unknown risks,
uncertainties, and other factors, including without limitation, those
described in this press release, our Quarterly Report on Form 10-Q for
the period ended
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In Thousands, Except Per Share Amounts) (Unaudited) |
||||||||
Three Months Ended |
||||||||
2013 |
2012 |
|||||||
Revenues | $ | 409,995 | $ | 291,573 | ||||
Cost of revenues | 363,899 | 253,977 | ||||||
Gross profit | 46,096 | 37,596 | ||||||
Selling, general and administrative expenses | 28,619 | 20,274 | ||||||
Operating income | 17,477 | 17,322 | ||||||
Other income (expense): | ||||||||
Income from non-consolidated entities | 269 | 1,101 | ||||||
Foreign exchange loss | (59 | ) | (42 | ) | ||||
Other expense | (56 | ) | (208 | ) | ||||
Interest income | 40 | 22 | ||||||
Interest expense | (1,424 | ) | (1,101 | ) | ||||
Income before provision for income taxes | 16,247 | 17,094 | ||||||
Provision for income taxes | (6,207 | ) | (6,564 | ) | ||||
Net income | 10,040 | 10,530 | ||||||
Net income attributable to noncontrolling interests | (270 | ) | (44 | ) | ||||
Net income attributable to Primoris | 9,770 | 10,486 | ||||||
Earnings per share: | ||||||||
Basic: | $ | 0.19 | $ | 0.21 | ||||
Diluted: | $ | 0.19 | $ | 0.20 | ||||
Weighted average common shares outstanding: | ||||||||
Basic | 51,456 | 51,096 | ||||||
Diluted | 51,467 | 51,337 | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands, Except Share Amounts) (Unaudited) |
||||||
|
|
|||||
2013 | 2012 | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 141,527 | $ | 157,551 | ||
Short term investments | 3,179 | 3,441 | ||||
Customer retention deposits and restricted cash | 27,371 | 35,377 | ||||
Accounts receivable, net | 249,621 | 268,095 | ||||
Costs and estimated earnings in excess of billings | 48,164 | 41,701 | ||||
Inventory and uninstalled contract materials | 37,917 | 37,193 | ||||
Deferred tax assets | 10,477 | 10,477 | ||||
Prepaid expenses and other current assets | 10,810 | 10,800 | ||||
Total current assets | 529,066 | 564,635 | ||||
Property and equipment, net | 195,258 | 184,840 | ||||
Investment in non-consolidated entities | 13,082 | 12,813 | ||||
Intangible assets, net | 50,984 | 51,978 | ||||
Goodwill | 118,964 | 116,941 | ||||
Other long-term assets | 1,181 | - | ||||
Total assets | $ | 908,535 | $ | 931,207 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 105,876 | $ | 151,546 | ||
Billings in excess of costs and estimated earnings | 160,944 | 158,892 | ||||
Accrued expenses and other current liabilities | 75,996 | 76,152 | ||||
Dividends payable | 1,547 | -- | ||||
Current portion of capital leases | 4,273 | 3,733 | ||||
Current portion of long-term debt | 20,944 | 19,446 | ||||
Current portion of contingent earnout liabilities | 18,728 | 10,900 | ||||
Total current liabilities | 388,308 | 420,669 | ||||
Long-term capital leases, net of current portion | 3,469 | 3,831 | ||||
Long-term debt, net of current portion | 136,764 | 128,367 | ||||
Long-term contingent earnout liabilities, net of current portion | 5,897 | 12,531 | ||||
Deferred tax liabilities | 20,018 | 20,018 | ||||
Other long-term liabilities | 9,913 | 13,153 | ||||
Total liabilities | $ | 564,369 | $ | 598,569 | ||
Stockholders' equity | ||||||
Common stock | 5 | 5 | ||||
Additional paid-in capital | 158,639 | 155,605 | ||||
Retained earnings | 183,741 | 175,517 | ||||
Noncontrolling interests | 1,781 | 1,511 | ||||
Total stockholders' equity | 344,166 | 332,638 | ||||
Total liabilities and stockholders' equity | $ | 908,535 | $ | 931,207 | ||
Executive
Vice President, Chief Financial Officer
pmoerbeek@prim.com
or
Director of Investor Relations
ktholking@prim.com
Source:
News Provided by Acquire Media