Primoris Services Corporation Announces 2013 Second Quarter Financial Results
Board of Directors Authorizes Quarterly Cash Dividend
Q2 2013 Financial Highlights
-
Revenues increased by 31.9% to
$445.0 million compared to$337.4 million in the second quarter of 2012 -
Net income attributable to
Primoris increased by 33.3% to$15.6 million , or$0.30 per diluted share, compared to Q2 2012 net income attributable toPrimoris of$11.7 million , or$0.23 per diluted share -
At
June 30, 2013 :-
$117.2 million in cash, cash equivalents, and short-term investments -
Total backlog, including four quarters of estimated MSA revenue,
of
$1.80 billion
-
The company also announced that on
2013 SECOND QUARTER RESULTS OVERVIEW
Revenues for the 2013 second quarter increased 31.9% to
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; and the services provided by the 2012 and 2013 acquisitions (Sprint, Silva, Saxon, and FSSI). -
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, the 2012 acquisition ofQ3 Contracting, Inc. , andPrimoris Renewables, 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
Unaudited |
2012
Unaudited |
||||||||||||
% of | % of | ||||||||||||
Total |
Total |
||||||||||||
Segment |
Revenue | Revenue | Revenue | Revenue | |||||||||
East Construction Services | $ | 175,398 | 39.4 | % | $ | 156,057 | 46.2 | % | |||||
West Construction Services | 258,194 | 58.0 | % | 167,287 | 49.6 | % | |||||||
Engineering | 11,421 | 2.6 | % | 14,092 | 4.2 | % | |||||||
Total | $ | 445,013 | 100.0 | % | $ | 337,436 | 100.0 | % | |||||
For the six months ended |
|||||||||||||
2013
Unaudited |
2012
Unaudited |
||||||||||||
% of | % of | ||||||||||||
Total |
Total |
||||||||||||
Segment |
Revenue | Revenue | Revenue | Revenue | |||||||||
East Construction Services | $ | 365,609 | 42.8 | % | $ | 277,907 | 44.2 | % | |||||
West Construction Services | 465,880 | 54.4 | % | 325,318 | 51.7 | % | |||||||
Engineering | 23,519 | 2.8 | % | 25,784 | 4.1 | % | |||||||
Total | $ | 855,008 | 100.0 | % | $ | 629,009 | 100.0 | % |
Segment Gross Margin (in thousands, except %) |
|||||||||||||
For the three months ended |
|||||||||||||
2013
Unaudited |
2012
Unaudited |
||||||||||||
% of | % of | ||||||||||||
Gross | Segment | Gross | Segment | ||||||||||
Segment |
Profit | Revenue | Profit | Revenue | |||||||||
East Construction Services | $ | 15,215 | 8.7 | % | $ | 17,360 | 11.1 | % | |||||
West Construction Services | 41,926 | 16.2 | % | 24,294 | 14.5 | % | |||||||
Engineering | 2,396 | 21.0 | % | 2,350 | 16.7 | % | |||||||
Total | $ | 59,537 | 13.4 | % | $ | 44,004 | 13.0 | % | |||||
For the six months ended |
|||||||||||||
2013
Unaudited |
2012
Unaudited |
||||||||||||
% of | % of | ||||||||||||
Gross | Segment | Gross | Segment | ||||||||||
Segment |
Profit | Revenue | Profit | Revenue | |||||||||
East Construction Services | $ | 30,210 | 8.3 | % | $ | 28,778 | 10.4 | % | |||||
West Construction Services | 70,675 | 15.2 | % | 48,695 | 15.0 | % | |||||||
Engineering | 4,748 | 20.2 | % | 4,127 | 16.0 | % | |||||||
Total | $ | 105,633 | 12.4 | % | $ | 81,600 | 13.0 | % | |||||
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 2013 second quarter was
Net other income and expenses in the 2013 second quarter was an expense
of
The provision for income taxes for the 2013 second quarter was
Net income attributable to
Fully diluted shares outstanding for the 2013 second quarter increased by 0.3% to 51.6 million from 51.4 million in last year's second quarter.
OTHER FINANCIAL INFORMATION
Primoris's balance sheet at
BACKLOG
Backlog at |
||||||||||
Segment |
Historic Calculation |
Estimated Annual MSA Revenues |
Revised Backlog | |||||||
East Construction Services | $ | 999 | $ | 92 | $ | 1,091 | ||||
West Construction Services | 361 | 329 | 690 | |||||||
Engineering | 22 | - | 22 | |||||||
Total | $ | 1,382 | 421 | 1,803 | ||||||
At
As previously discussed, we are changing our backlog calculation to
better reflect the company's increasing percentage of revenues derived
from MSAs as a result of the acquisitions of Sprint and Q3C. The new
calculation includes estimated MSA revenues for the next four quarters.
With this addition to the backlog calculation, the new total backlog at
Backlog, including estimated MSA revenues, 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 backlog and the estimated MSA revenues calculation, including time-and-equipment, time-and-materials, and cost-reimbursable-plus-fee contracts. Additionally, projects that are considered a part of backlog or MSA contracts may be cancelled by our customers.
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
Founded in 1946,
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 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 (In Thousands, Except Per Share Amounts) (Unaudited) |
|||||||||||||||||||||
Three Months Ended
|
Six Months Ended,
|
||||||||||||||||||||
2013 |
2012 |
2013 |
2012 |
||||||||||||||||||
Revenues | $ | 445,013 | $ | 337,436 | $ | 855,008 | $ | 629,009 | |||||||||||||
Cost of revenues | 385,476 | 293,432 | 749,375 | 547,409 | |||||||||||||||||
Gross profit | 59,537 | 44,004 | 105,633 | 81,600 | |||||||||||||||||
Selling, general and administrative expenses | 31,560 | 23,396 | 60,179 | 43,670 | |||||||||||||||||
Operating income | 27,977 | 20,608 | 45,454 | 37,930 | |||||||||||||||||
Other income (expense): | |||||||||||||||||||||
Income (loss) from non-consolidated entities | (213 | ) | (47 | ) | 56 | 1,054 | |||||||||||||||
Foreign exchange loss | (29 | ) | (6 | ) | (88 | ) | (48 | ) | |||||||||||||
Other expense | (377 | ) | (371 | ) | (433 | ) | (579 | ) | |||||||||||||
Interest income | 23 | 25 | 63 | 47 | |||||||||||||||||
Interest expense | (1,498 | ) | (1,006 | ) | (2,922 | ) | (2,107 | ) | |||||||||||||
Income before provision for income taxes | 25,883 | 19,203 | 42,130 | 36,297 | |||||||||||||||||
Provision for income taxes | (9,990 | ) | (7,346 | ) | (16,197 | ) | (13,910 | ) | |||||||||||||
Net income | 15,893 | 11,857 | 25,933 | 22,387 | |||||||||||||||||
Net income attributable to noncontrolling interests | (329 | ) | (124 | ) | (599 | ) | (168 | ) | |||||||||||||
Net income attributable to |
15,564 | 11,733 | 25,334 | 22,219 | |||||||||||||||||
Earnings per share: | |||||||||||||||||||||
Basic: | $ | 0.30 | $ | 0.23 | $ | 0.49 | $ | 0.43 | |||||||||||||
Diluted: | $ | 0.30 | $ | 0.23 | $ | 0.49 | $ | 0.43 | |||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||
Basic | 51,562 | 51,435 | 51,510 | 51,386 | |||||||||||||||||
Diluted | 51,626 | 51,435 | 51,547 | 51,386 |
CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands, Except Share Amounts) (Unaudited) |
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|
|
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2013 | 2012 | |||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 113,777 | $ | 157,551 | ||||||||
Short term investments | 3,428 | 3,441 | ||||||||||
Customer retention deposits and restricted cash | 27,503 | 35,377 | ||||||||||
Accounts receivable, net | 251,092 | 268,095 | ||||||||||
Costs and estimated earnings in excess of billings | 70,288 | 41,701 | ||||||||||
Inventory and uninstalled contract materials | 38,339 | 37,193 | ||||||||||
Deferred tax assets | 10,477 | 10,477 | ||||||||||
Prepaid expenses and other current assets | 12,719 | 10,800 | ||||||||||
Total current assets | 527,623 | 564,635 | ||||||||||
Property and equipment, net | 215,659 | 184,840 | ||||||||||
Investment in non-consolidated entities | 12,724 | 12,813 | ||||||||||
Intangible assets, net | 49,893 | 51,978 | ||||||||||
Goodwill | 118,028 | 116,941 | ||||||||||
Other long-term assets | 1,158 | - | ||||||||||
Total assets | $ | 925,085 | $ | 931,207 | ||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 102,026 | $ | 151,546 | ||||||||
Billings in excess of costs and estimated earnings | 162,570 | 158,892 | ||||||||||
Accrued expenses and other current liabilities | 80,349 | 76,152 | ||||||||||
Dividends payable | 1,805 | -- | ||||||||||
Current portion of capital leases | 4,335 | 3,733 | ||||||||||
Current portion of long-term debt | 21,967 | 19,446 | ||||||||||
Current portion of contingent earnout liabilities | 8,048 | 10,900 | ||||||||||
Total current liabilities | 381,100 | 420,669 | ||||||||||
Long-term capital leases, net of current portion | 3,584 | 3,831 | ||||||||||
Long-term debt, net of current portion | 144,546 | 128,367 | ||||||||||
Deferred tax liabilities | 20,018 | 20,018 | ||||||||||
Long-term contingent earnout liabilities, net of current portion | 5,924 | 12,531 | ||||||||||
Other long-term liabilities | 11,568 | 13,153 | ||||||||||
Total liabilities | $ | 566,740 | $ | 598,569 | ||||||||
Stockholders' equity | ||||||||||||
Common stock | 5 | 5 | ||||||||||
Additional paid-in capital | 158,730 | 155,605 | ||||||||||
Retained earnings | 197,500 | 175,517 | ||||||||||
Noncontrolling interests | 2,110 | 1,511 | ||||||||||
Total stockholders' equity | 358,345 | 332,638 | ||||||||||
Total liabilities and stockholders' equity | $ | 925,085 | $ | 931,207 |
Executive
Vice President, Chief Financial Officer
pmoerbeek@prim.com
or
Director of Investor Relations
ktholking@prim.com
Source:
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