Primoris Services Corporation Announces 2014 Second Quarter Financial Results
Board of Directors Increases Quarterly Cash Dividend by 14%
Q2 2014 Financial Highlights
-
Revenue of
$515 million in the second quarter of 2014 compared to$470 million in the first quarter of 2014 -
Net income attributable to Primoris of
$16.0 million , or$0.31 per diluted share, in the second quarter of 2014 compared to$0.21 in the first quarter of 2014 -
At
June 30, 2014 :-
$162 million in cash, cash equivalents and short-term investments -
Total backlog of
$1.83 billion
-
The Company also announced that on
2014 SECOND QUARTER RESULTS OVERVIEW
Revenue for the 2014 second quarter increased by 15.8% to
From an end-market perspective for the three months ended
Gross profit increased by
SEGMENT RESULTS
-
East Construction Services - The East
Construction Services segment includes the
James Construction Group ("JCG") andPrimoris Energy Services ("PES") construction business, located primarily in the southeasternUnited States and in theGulf Coast region ofthe United States . The operations ofCardinal Contractors, Inc. and BW Primoris are included in this segment. -
West Construction Services - The West
Construction Services segment includes the construction services
performed by ARB, Inc.,
ARB Structures, Inc. , Rockford,Q3 Contracting, Inc. , and Vadnais, acquired inJune 2014 . Most of the entities perform work primarily inCalifornia ; however, Rockford operates throughout the Unites States and Q3C operates in the upper Midwest United States. 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 |
||||||||||||
2014
Unaudited |
2013
Unaudited |
|||||||||||
Segment |
Revenue |
% of Segment Revenue |
Revenue |
% of Segment Revenue |
||||||||
East Construction Services | 278,066 | 54.0% | 175,398 | 39.4% | ||||||||
West Construction Services |
|
43.5% |
|
58.0% | ||||||||
Engineering | 12,834 | 2.5% | 11,421 | 2.6% | ||||||||
Total | $ 515,291 | 100.0% |
|
100.0% | ||||||||
For the six months ended |
||||||||||||
2014
Unaudited |
2013
Unaudited |
|||||||||||
Segment |
Revenue |
% of Segment Revenue |
Revenue |
% of Segment Revenue |
||||||||
East Construction Services | 501,138 | 50.9% | 365,609 | 42.8% | ||||||||
West Construction Services |
|
46.5% |
|
54.4% | ||||||||
Engineering | 25,810 | 2.6% | 23,519 | 2.8% | ||||||||
Total | $ 985,365 | 100.0% |
|
100.0% | ||||||||
Segment Gross Margin (in thousands, except %) |
||||||||||||
For the three months ended |
||||||||||||
2014
Unaudited |
2013
Unaudited |
|||||||||||
Segment |
Gross Profit |
% of Segment Revenue |
Gross Profit |
% of Segment Revenue |
||||||||
East Construction Services | 21,309 | 7.7% | 15,215 | 8.7% | ||||||||
West Construction Services |
|
16.9% |
|
16.2% | ||||||||
Engineering | 2,076 | 16.2% | 2,396 | 21.0% | ||||||||
Total | $ 61,194 | 10.6% | $ 59,537 | 13.4% | ||||||||
For the six months ended |
||||||||||||
2014
Unaudited |
2013
Unaudited |
|||||||||||
Segment |
Gross Profit |
% of Segment Revenue |
Gross Profit |
% of Segment Revenue |
||||||||
East Construction Services | 37,325 | 7.5% | 30,210 | 8.3% | ||||||||
West Construction Services |
|
15.2% |
|
15.2% | ||||||||
Engineering | 4,143 | 16.1% | 4,748 | 20.2% | ||||||||
Total | $ 110,951 | 11.3% | $ 105,633 | 12.4% | ||||||||
East Construction Services: Revenue increased by
West Construction Services: Revenue decreased by
Engineering: Revenue increased by
Selling, general and administrative expenses ("SG&A") were
Operating income for the 2014 second quarter was
Net other income and expenses in the 2014 second quarter was an expense
of
The provision for income taxes for the 2014 second quarter was
Net income attributable to Primoris for the 2014 second quarter was
Fully diluted weighted average shares outstanding for the 2014 second quarter increased by 0.3% to 51.8 million from 51.6 million in last year's second quarter.
OTHER FINANCIAL INFORMATION
Primoris' balance sheet at
BACKLOG |
||||||||||||||
Backlog at |
||||||||||||||
Segment |
Fixed Backlog | MSA Backlog | Total Backlog | |||||||||||
East Construction Services | $ | 1,079 | $ | 91 | $ | 1,170 | ||||||||
West Construction Services | 194 | 389 | 583 | |||||||||||
Engineering | 81 | - | 81 | |||||||||||
Total | $ | 1,354 | 480 | 1,834 | ||||||||||
At
At
Total Backlog at
Backlog, including estimated MSA revenues, should not be considered a comprehensive indicator of future revenue, as a portion of Primoris' revenue is still derived from projects that are not part of backlog, including time-and-equipment, time-and-materials, and cost-reimbursable-plus-fee contracts. Projects that are considered a part of Total Backlog may be still be cancelled by our customers.
CONFERENCE CALL
Interested parties may participate in the call by dialing:
- (877) 407-8293 (Domestic)
- (201) 689-8349 (International)
If you are unable to participate in the live call, a replay may be accessed by dialing (877) 660-6853, passcode 13587472, and will be available for approximately two weeks. The conference call will also be broadcast live over the Internet and can be accessed and replayed through the Investor Relations section of Primoris's website at www.prim.com. Once at the Investor Relations section, please click on "Events & Presentations".
ABOUT PRIMORIS
Founded in 1946, Primoris, through various subsidiaries, has grown to
become one of the largest construction service enterprises 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 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) |
||||||||||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||||||||
2014 |
2013 |
2014 |
2013 |
|||||||||||||||||||||
Revenue | $ | 515,291 | $ | 445,013 | $ | 985,365 | $ | 855,008 | ||||||||||||||||
Cost of revenue | 454,097 | 385,476 | 874,414 | 749,375 | ||||||||||||||||||||
Gross profit | 61,194 | 59,537 | 110,951 | 105,633 | ||||||||||||||||||||
Selling, general and administrative expenses | 33,213 | 31,560 | 62,925 | 60,179 | ||||||||||||||||||||
Operating income | 27,981 | 27,977 | 48,026 | 45,454 | ||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Income (loss) from non-consolidated entities |
- | (213 | ) | 14 | 56 | |||||||||||||||||||
Foreign exchange gain (loss) | 149 | (29 | ) | 175 | (88 | ) | ||||||||||||||||||
Other expense | (327 | ) | (377 | ) | (441 | ) | (433 | ) | ||||||||||||||||
Interest income | 14 | 23 | 66 | 63 | ||||||||||||||||||||
Interest expense | (1,196 | ) | (1,498 | ) | (2,864 | ) | (2,922 | ) | ||||||||||||||||
Income before provision for income taxes | 26,621 | 25,883 | 44,976 | 42,130 | ||||||||||||||||||||
Provision for income taxes | (10,618 | ) | (9,990 | ) | (17,708 | ) | (16,197 | ) | ||||||||||||||||
Net income | 16,003 | 15,893 | 27,268 | 25,933 | ||||||||||||||||||||
Net income attributable to noncontrolling interests | - | (329 | ) | (432 | ) | (599 | ) | |||||||||||||||||
Net income attributable to Primoris | 16,003 | 15,564 | 26,836 | 25,334 | ||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||
Basic: | $ | 0.31 | $ | 0.30 | $ | 0.52 | $ | 0.49 | ||||||||||||||||
Diluted: | $ | 0.31 | $ | 0.30 | $ | 0.52 | $ | 0.49 | ||||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||
Basic | 51,655 | 51,562 | 51,631 | 51,510 | ||||||||||||||||||||
Diluted | 51,804 | 51,626 | 51,759 | 51,547 | ||||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands, Except Share Amounts) (Unaudited) |
||||||||||||
2014 |
2013 |
|||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 160,177 | $ | 196,077 | ||||||||
Short-term investments | 2,280 | 18,686 | ||||||||||
Customer retention deposits and restricted cash | 56 | 5,304 | ||||||||||
Accounts receivable, net | 311,321 | 304,955 | ||||||||||
Costs and estimated earnings in excess of billings | 88,111 | 57,146 | ||||||||||
Inventory and uninstalled contract materials | 61,230 | 51,829 | ||||||||||
Deferred tax assets | 13,133 | 13,133 | ||||||||||
Prepaid expenses and other current assets | 12,003 | 12,654 | ||||||||||
Total current assets | 648,311 | 659,784 | ||||||||||
Property and equipment, net | 245,342 | 226,512 | ||||||||||
Intangible assets, net | 42,345 | 45,303 | ||||||||||
Goodwill | 118,626 | 118,626 | ||||||||||
Other long-term assets | 382 | 468 | ||||||||||
Total assets | $ | 1,055,006 | $ | 1,050,693 | ||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 130,575 | $ | 127,302 | ||||||||
Billings in excess of costs and estimated earnings | 158,097 | 173,365 | ||||||||||
Accrued expenses and other current liabilities | 93,258 | 91,079 | ||||||||||
Dividends payable | 1,808 | 1,805 | ||||||||||
Current portion of capital leases | 2,230 | 3,288 | ||||||||||
Current portion of long-term debt | 30,683 | 28,475 | ||||||||||
Current portion of contingent earnout liabilities | 5,403 | 5,000 | ||||||||||
Total current liabilities | 422,054 | 430,314 | ||||||||||
Long-term capital leases, net of current portion | 1,386 | 2,295 | ||||||||||
Long-term debt, net of current portion | 185,570 | 191,051 | ||||||||||
Deferred tax liabilities | 10,092 | 10,092 | ||||||||||
Long-term contingent earnout liabilities, net of current portion | - | 4,233 | ||||||||||
Other long-term liabilities | 12,192 | 14,260 | ||||||||||
Total liabilities | 631,294 | 652,245 | ||||||||||
Stockholders' equity | ||||||||||||
Common stock | 5 | 5 | ||||||||||
Additional paid-in capital |
|
162,322 |
159,196 | |||||||||
Retained earnings |
|
261,437 |
238,216 | |||||||||
Noncontrolling interests |
|
(52) |
1,031 | |||||||||
Total stockholders' equity | 423,712 | 398,448 | ||||||||||
Total liabilities and stockholders' equity | $ | 1,055,006 | $ | 1,050,693 |
Executive
Vice President, Chief Financial Officer
pmoerbeek@prim.com
or
Director of Investor Relations
ktholking@prim.com
Source:
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