Primoris Services Corporation Announces 2015 Fourth Quarter and Full Year Financial Results
Board of Directors Declares
Financial Highlights
-
2015 Q4 revenues of
$497.1 million , compared to 2014 Q4 revenues of$487.6 million -
2015 Q4 net income attributable to Primoris of
$12.6 million , compared to 2014 Q4 net income attributable to Primoris of$8.9 million -
2015 revenues of
$1,929 million , compared to 2014 revenues of$2,086 million -
2015 net income attributable to Primoris of
$36.9 million , compared to 2014 net income attributable to Primoris of$63.2 million -
A total backlog of
$2.1 billion atDecember 31, 2015 - A 4.8% increase over 2014's year-end backlog and
- A 1.9% sequential quarterly increase over third quarter 2015's backlog
-
A cash balance of
$161 million atDecember 31, 2015 -
A record tangible net worth of
$322.6 million atDecember 31, 2015 , a 9% increase over tangible net worth atDecember 31, 2014 .
The Company also announced that on
2015 FOURTH QUARTER RESULTS OVERVIEW
Revenues in the fourth quarter 2015 increased by
SEGMENT RESULTS
-
West Construction Services ("West segment")
- The West segment includes the underground and industrial operations
and construction services performed by ARB, ARB Structures, Rockford,
Q3C, and Vadnais. Most of the entities perform work primarily in
California ; however, Rockford operates throughoutthe United States and Q3C operates inColorado and the upper Midwest United States. The segment also includes the operations of theBlythe ,Wilmington andCarlsbad joint ventures. -
East Construction Services ("East segment")
- The East segment includes the
James Construction Group ("JCG") Heavy Civil division, the JCG Infrastructure and Maintenance ("I&M") division, BW Primoris, and Cardinal Contractors, located primarily in the southeasternUnited States and in theGulf Coast region ofthe United States . -
Energy ("Energy segment") - The Energy
segment businesses are located primarily in the southeastern
United States , theGulf Coast region and the upper Midwest region ofthe United States . The segment includes the PES pipeline and gas facility construction and maintenance operations, thePES Industrial division, and the newly acquired Aevenia, Surber, and Ram-Fab operations. Additionally, the segment includes theOnQuest, Inc. andOnQuest Canada , ULC operations for the design and installation of liquefied natural gas ("LNG") facilities and high-performance furnaces and heaters for the oil refining, petrochemical and power generation industries.
Segment Revenues |
||||||||||||
(in thousands, except %) |
||||||||||||
For the three months ended |
||||||||||||
2015 | 2014 | |||||||||||
Unaudited | Unaudited | |||||||||||
% of | % of | |||||||||||
Total | Total | |||||||||||
Segment |
Revenue | Revenue | Revenue | Revenue | ||||||||
West | $ | 228,828 | 46.0 | % | $ | 216,270 | 44.4 | % | ||||
East | 149,952 | 30.2 | % | 128,951 | 26.4 | % | ||||||
Energy | 118,365 | 23.8 | % | 142,371 | 29.2 | % | ||||||
Total | $ | 497,145 | 100.0 | % | $ | 487,592 | 100.0 | % | ||||
Segment Gross Profit |
||||||||||||
(in thousands, except %) |
||||||||||||
For the three months ended |
||||||||||||
2015 | 2014 | |||||||||||
Unaudited | Unaudited | |||||||||||
% of | % of | |||||||||||
Gross | Segment | Gross | Segment | |||||||||
Segment |
Profit | Revenue | Profit | Revenue | ||||||||
West | $ | 38,536 | 16.8 | % | $ | 27,745 | 12.8 | % | ||||
East | 8,901 | 5.9 | % | 1,154 | 0.9 | % | ||||||
Energy | 16,288 | 13.8 | % | 20,717 | 14.6 | % | ||||||
Total | $ | 63,725 | 12.8 | % | $ | 49,616 | 10.2 | % | ||||
West Segment: Revenues in the West segment increased by
East Segment: Revenues in the East segment increased by
Energy Segment: Revenues in the Energy segment decreased
by
OTHER INCOME STATEMENT INFORMATION
Selling, general and administrative expenses ("SG&A") were
Operating income for the 2015 fourth quarter was
Net non-operating items in the 2015 fourth quarter resulted in expenses
of
The provision for income taxes for the 2015 fourth quarter was
Net income attributable to Primoris for the 2015 fourth quarter was
Fully diluted weighted average shares outstanding for the 2015 fourth quarter increased slightly to 51.82 million from 51.71 million in the fourth quarter of 2014. The increase in shares was due to shares issued to certain senior managers and executives as part of the Primoris Long-Term Retention Plan and as compensation to the non-employee members of the Board of Directors.
2015 FULL YEAR RESULTS OVERVIEW |
||||||||||||
Segment Revenues |
||||||||||||
(in thousands, except %) |
||||||||||||
|
||||||||||||
For the twelve months ended |
||||||||||||
2015 | 2014 | |||||||||||
Unaudited | Unaudited | |||||||||||
% of | % of | |||||||||||
Total | Total | |||||||||||
Segment |
Revenue | Revenue | Revenue | Revenue | ||||||||
West | $ | 913,626 | 47.4 | % | $ | 964,093 | 46.2 | % | ||||
East | 612,174 | 31.7 | % | 489,926 | 23.5 | % | ||||||
Energy | 403,615 | 20.9 | % | 632,175 | 30.3 | % | ||||||
Total | $ | 1,929,415 | 100.0 | % | $ | 2,086,194 | 100.0 | % | ||||
Segment Gross Profit |
||||||||||||
(in thousands, except %) |
||||||||||||
For the twelve months ended |
||||||||||||
2015 | 2014 | |||||||||||
Unaudited | Unaudited | |||||||||||
% of | % of | |||||||||||
Gross | Segment | Gross | Segment | |||||||||
Segment |
Profit | Revenue | Profit | Revenue | ||||||||
West | $ | 130,255 | 14.3 | % | $ | 143,468 | 14.9 | % | ||||
East | 42,523 | 6.9 | % | 25,749 | 5.3 | % | ||||||
Energy | 47,095 |
11.7 |
% |
66,823 | 10.6 | % | ||||||
Total | $ | 219,873 | 11.4 | % | $ | 236,040 | 11.3 | % | ||||
OTHER FINANCIAL INFORMATION
Primoris's balance sheet at
Based on expected start dates for current projects in backlog,
anticipated levels of customer maintenance, MSA spending, and new
project awards, and given the recent uncertainty caused by the energy
markets, the Company estimates that for the four quarters ending
BACKLOG |
||||||||||||
Backlog at |
||||||||||||
Segment |
Fixed Backlog | MSA Backlog | Total Backlog |
Expected Next Four |
||||||||
West | $ | 577 | $ | 500 | $ | 1,077 | 86 | % | ||||
East | 752 | 4 | 756 | 52 | % | |||||||
Energy | 188 | 67 | 255 | 99 | % | |||||||
Total | $ | 1,517 | $ | 571 | $ | 2,088 | ||||||
At
At
Total Backlog at
Backlog, including estimated MSA revenues, should not be considered a comprehensive indicator of future revenues. There is a certain percentage of total revenues, from projects such as cost reimbursable and time-and-materials projects, that do not flow through backlog. Any project may still be cancelled at the convenience of 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, conference ID 13623801, and will be
available for approximately two weeks. The conference call will also be
broadcast live over the
ABOUT PRIMORIS
Founded in 1960, 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 |
Twelve Months Ended |
|||||||||||||||
|
|
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2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenue | $ | 497,145 | $ | 487,592 | $ | 1,929,415 | $ | 2,086,194 | ||||||||
Cost of revenue | 433,420 | 437,976 | 1,709,542 | 1,850,154 | ||||||||||||
Gross profit | 63,725 | 49,616 | 219,873 | 236,040 | ||||||||||||
Selling, general and administrative expenses | 41,252 | 33,161 | 152,104 | 132,248 | ||||||||||||
Operating income | 22,473 | 16,455 | 67,769 | 103,792 | ||||||||||||
Other income (expense): | ||||||||||||||||
Income from non-consolidated entities | - | - | - | 5,250 | ||||||||||||
Foreign exchange gain (loss) | (338 | ) | 300 | (763 | ) | 374 | ||||||||||
Other income (expense) | 1,451 | (115 | ) | 1,723 | (743 | ) | ||||||||||
Interest income | 34 | 8 | 56 | 88 | ||||||||||||
Interest expense | (2,125 | ) | (1,791 | ) | (7,688 | ) | (6,433 | ) | ||||||||
Income before provision for income taxes | 21,495 | 14,857 | 61,097 | 102,328 | ||||||||||||
Provision for income taxes | (8,787 | ) | (5,833 | ) | (23,946 | ) | (38,646 | ) | ||||||||
Net income | $ | (12,708 | ) | $ | 9,024 | $ | 37,151 | $ | 63,682 | |||||||
Net income attributable to noncontrolling interests | (153 | ) | (94 | ) | (279 | ) | (526 | ) | ||||||||
Net income attributable to Primoris | $ | 12,555 | $ | 8,930 | $ | 36,872 | $ | 63,156 | ||||||||
Earnings per share: | ||||||||||||||||
Basic: | $ | 0.24 | $ | 0.17 | $ | 0.71 | $ | 1.22 | ||||||||
Diluted: | $ | 0.24 | $ | 0.17 | $ | 0.71 | $ | 1.22 | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 51,676 | 51,561 | 51,647 | 51,607 | ||||||||||||
Diluted | 51,825 | 51,710 | 51,798 | 51,747 | ||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(In Thousands, Except Share Amounts) | |||||||
(Unaudited) | |||||||
|
|
||||||
2015 | 2014 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 161,122 | $ | 139,465 | |||
Short-term investments | - | 30,992 | |||||
Customer retention deposits and restricted cash | 2,598 | 481 | |||||
Accounts receivable, net | 320,588 | 337,382 | |||||
Costs and estimated earnings in excess of billings | 116,455 | 68,654 | |||||
Inventory and uninstalled contract materials | 67,796 | 58,116 | |||||
Prepaid expenses and other current assets | 18,265 | 31,720 | |||||
Total current assets | 686,824 | 666,810 | |||||
Property and equipment, net | 283,545 | 271,431 | |||||
Deferred tax assets - long-term | 1,075 | - | |||||
Intangible assets, net | 36,438 | 39,581 | |||||
|
124,161 | 119,410 | |||||
Other long-term assets | 211 | 400 | |||||
Total assets | $ | 1,132,254 | $ | 1,097,632 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 124,450 | $ | 128,793 | |||
Billings in excess of costs and estimated earnings | 139,875 | 158,595 | |||||
Accrued expenses and other current liabilities | 93,596 | 83,401 | |||||
Dividends payable | 2,842 | 2,062 | |||||
Current portion of capital leases | 974 | 1,650 | |||||
Current portion of long-term debt | 54,436 | 38,909 | |||||
Current portion of contingent earnout liabilities | - | 5,901 | |||||
Total current liabilities | 416,173 | 419,311 | |||||
Long-term capital leases, net of current portion | 22 | 657 | |||||
Long-term debt, net of current portion | 219,853 | 204,029 | |||||
Deferred tax liabilities - long-term | - | 5,929 | |||||
Long-term contingent earnout liabilities, net of current portion | - | 1,021 | |||||
Other long-term liabilities | 12,741 | 12,899 | |||||
Total liabilities | 648,789 | 643,846 | |||||
Stockholders' equity | |||||||
Common stock | 5 | 5 | |||||
Additional paid-in capital | 163,344 | 160,186 | |||||
Retained earnings | 319,899 | 293,628 | |||||
Noncontrolling interests | 217 | (33 | ) | ||||
Total stockholders' equity | 483,465 | 453,786 | |||||
Total liabilities and stockholders' equity | $ | 1,132,254 | $ | 1,097,632 | |||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(In Thousands) | ||||||||
(Unaudited) | ||||||||
Twelve Months Ended | ||||||||
|
||||||||
2015 | 2014 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 37,151 | $ | 63,682 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
Depreciation | 58,408 | 50,918 | ||||||
Amortization of intangible assets | 6,793 | 7,504 | ||||||
|
401 | - | ||||||
Stock—based compensation expense | 1,050 | 934 | ||||||
Gain on sale of property and equipment | (2,116 | ) | (1,895 | ) | ||||
(Income) from non-consolidated entities | - | (5,264 | ) | |||||
Net deferred tax liabilities (assets) | (7,004 | ) | 8,970 | |||||
Changes in assets and liabilities: | ||||||||
Customer retention deposits and restricted cash | (2,117 | ) | 4,823 | |||||
Accounts receivable | 19,528 | (29,659 | ) | |||||
Costs and estimated earnings in excess of billings | (47,499 | ) | (11,508 | ) | ||||
Other current assets | 4,949 | (25,767 | ) | |||||
Other long-term assets | 189 | 72 | ||||||
Accounts payable | (5,086 | ) | 921 | |||||
Billings in excess of costs and estimated earnings | (19,619 | ) | (14,770 | ) | ||||
Contingent earnout liabilities | (6,722 | ) | (4,145 | ) | ||||
Accrued expenses and other current liabilities | 11,729 | (7,354 | ) | |||||
Other long-term liabilities | (1,658 | ) | (1,361 | ) | ||||
Net cash provided by operating activities | 48,377 | 36,101 | ||||||
Cash flows from investing activities: | ||||||||
Purchase of property and equipment | (67,097 | ) | (87,954 | ) | ||||
Proceeds from sale of property and equipment | 9,889 | 5,814 | ||||||
Purchase of short-term investments | - | (33,770 | ) | |||||
Sale of short-term investments | 30,992 | 21,464 | ||||||
Cash received for the sale of Alvah minority interest | - | 6,439 | ||||||
Cash paid for acquisitions | (22,302 | ) | (14,596 | ) | ||||
Net cash used in investing activities | (48,518 | ) | (102,603 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of long-term debt | 75,278 | 58,519 | ||||||
Repayment of capital leases | (1,336 | ) | (3,276 | ) | ||||
Repayment of long-term debt | (43,927 | ) | (35,107 | ) | ||||
Proceeds from issuance of common stock purchased under a long-term incentive plan | 1,621 | 1,671 | ||||||
Cash distribution to non-controlling interest holder | (29 | ) | (1,590 | ) | ||||
Repurchase of Common Stock | - | (2,844 | ) | |||||
Dividends paid | (9,809 | ) | (7,483 | ) | ||||
Net cash provided by financing activities | 21,798 | 9,890 | ||||||
Net change in cash and cash equivalents | 21,657 | (56,612 | ) | |||||
Cash and cash equivalents at beginning of the period | 139,465 | 196,077 | ||||||
Cash and cash equivalents at end of the period | $ | 161,122 | $ | 139,465 |
View source version on businesswire.com: http://www.businesswire.com/news/home/20160225005601/en/
Executive
Vice President, Chief Financial Officer
pmoerbeek@prim.com
or
Director of Investor Relations
ktholking@prim.com
Source:
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