prim_Current_Folio_8K

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

 

February 26, 2018

Date of Report (Date of earliest event reported)

 

Primoris Services Corporation

(Exact name of Registrant as specified in its charter)

 

 

Delaware

 

001-34145

 

20-4743916

(State or other jurisdiction

 

(Commission File Number)

 

(I.R.S. Employer

of incorporation)

 

 

 

Identification No.)

 

2100 McKinney Avenue, Suite 1500, Dallas, Texas 75201

(Address of principal executive offices)

(Zip Code)

 

(214) 740-5600

Registrant’s telephone number, including area code

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

             Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

             Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

             Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

             Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 


 

 

 

Item 2.02                      Results of Operations and Financial Condition.

 

On February 26, 2018, Primoris Services Corporation, a Delaware corporation (“Primoris”, the “Company”) issued a press release announcing its financial performance for the year and fourth quarter ended December 31, 2017.

 

The information contained in the press release attached hereto is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that Section, and shall not be deemed incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 

Item 8.01            Other Events.

 

Declaration of Cash Dividend to Stockholders

 

On February 21, 2018, the Board of Directors declared a cash dividend of $0.06 per common share for stockholders of record as of March 30, 2018,  payable on or about April 13, 2018.

 

 Item 9.01.                 Financial Statements and Exhibits.

 

(d)   Exhibits.

 

 

 

 

 

Exhibit No.

 

Description

 

 

 

99.1

 

Press Release dated February 26, 2018

 


 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

 

 

 

 

 

 

PRIMORIS SERVICES CORPORATION

 

 

 

 

Dated: February 26, 2018

 

By:

/s/ Peter J. Moerbeek

 

 

 

Peter J. Moerbeek

 

 

 

Executive Vice President, Chief Financial Officer

 

3


prim_Exhibit_99_1

 

 

Exhibit 99.1

PSC_Primoris 300

 

 

PRIMORIS SERVICES CORPORATION ANNOUNCES 2017 FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS

 

Board of Directors Declares $0.06 Per Share Cash Dividend

 

Financial Highlights

 

·

2017 net income attributable to Primoris of $72.4 million, or $1.40 per fully diluted share, compared to $26.7 million, or $0.51 per fully diluted share, in 2016

·

2017 Q4 net income attributable to Primoris of $22.5 million, or $0.44 per fully diluted share, compared to $14.5 million, or $0.28 per fully diluted share, in 2016 Q4

·

As a result of a tax law change, we remeasured our deferred tax assets and liabilities, which provided a one-time benefit of $9.4 million for the three months and year ended December 31, 2017, or $0.18 per fully diluted share

·

2017 revenues of $2.4 billion, compared to $2.0 billion in 2016

·

2017 Q4 revenues of $579.0 million, compared to $601.9 million in 2016 Q4

·

Total backlog of $2.60 billion at December 31, 2017

·

Cash balance of $170.4 million at December 31, 2017

·

Record 2017 cash flow from operations of $188.9 million, compared to $62.6 million in 2016

 

Dallas, TX – February 27, 2018–  Primoris Services Corporation (NASDAQ GS: PRIM) (“Primoris” or “Company”) today announced financial results for its fourth quarter and year ended December 31, 2017.

 

The Company also announced that on February 21, 2018 its Board of Directors declared a $0.06 per share cash dividend to stockholders of record on March 30, 2018, payable on or about April 13, 2018. 

 

David King, President and Chief Executive Officer of Primoris, commented, “Primoris continued delivering solid results, reaching company record revenues and earnings for the year.  Strong execution on pipeline and petrochemical projects, aided by growing MSA revenue and new acquisitions, gave us financial improvements in all four of our operating segments.  We are pleased to see our revenue break well past the $2 billion.  We continue to focus on our solid principals of safety, quality, superior execution, and dependable results.  We believe the strength of our backlog combined with considerable future project opportunities will drive continued growth.”

 

Mr. King continued, “As we have focused on recurring revenue, our MSA backlog has grown to an all-time high.  Our MSAs will provide a baseline revenue stream while we pursue additional avenues of growth.  While burning revenue at record levels, our backlog growth has been lumpy; however, our December 31, 2017 backlog has grown by 24% over the past two years.  We expect the large diameter pipeline market to continue its strength in 2018 and into the next several years.  We also expect growth opportunities in 2018 from renewable power, small diameter pipeline, industrial, and mid-scale EPC projects.  We are confident in our ability to compete in diverse end markets so that we can build on the success of 2017.”

 


 

 

2017 FOURTH QUARTER RESULTS OVERVIEW

 

Revenues in the fourth quarter 2017 decreased by $22.9 million, or 3.8%, to $579.0 million from $601.9 million for the same period in 2016.  The decreased revenues were primarily due to a decrease in the Pipeline & Underground segment as we reached substantial completion on two Florida pipeline projects in the second quarter 2017.  Gross profit for the fourth quarter 2017 decreased by $0.1 million, or 0.2%, to $68.5 million from $68.6 million for the same period in 2016.  The decrease in gross profit was due primarily due to decreased revenues in the Pipeline & Underground segment.  Gross profit as a percentage of revenue increased to 11.8% in the fourth quarter 2017, compared to 11.4% for the same period in 2016.  The increased profitability was due to improved margins in the Pipeline & Underground and Civil segments.

 

SEGMENT RESULTS

 

In the first quarter 2017, Primoris changed its reportable segments to match the changes in the Company’s realigned internal organization and management structure.  A Form 8-K was filed on April 7, 2017 containing historical revenue, margin, and backlog information for the new segments.

 

·

Power, Industrial, and Engineering (“Power”) - The Power segment operates throughout the United States and specializes in a range of services that include full EPC project delivery, turnkey construction, retrofits, upgrades, repairs, outages, and maintenance for entities in the petroleum, petrochemical, water, and other industries.

·

Pipeline and Underground (“Pipeline”) – The Pipeline segment operates throughout the United States and specializes in a range of services, including pipeline construction, pipeline maintenance, pipeline facility work, compressor stations, pump stations, metering facilities, and other pipeline-related services for entities in the petroleum and petrochemical industries.

·

Utilities and Distribution (“Utilities”) – The Utilities segment operates primarily in California and the Midwest and Southeast regions of the United States and specializes in a range of services, including utility line installation and maintenance, gas and electric distribution, streetlight construction, substation work, and fiber optic cable installation.

·

Civil – The Civil segment operates primarily in the Southeast and Gulf Coast regions of the United States and specializes in highway and bridge construction, airport runway and taxiway construction, demolition, heavy earthwork, soil stabilization, mass excavation, and drainage projects.

 

Segment Revenues

(in thousands, except %)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended December 31, 

 

 

 

2017

 

2016

 

 

 

 

 

 

% of

 

 

 

 

% of

 

 

 

 

 

 

Total

 

 

 

 

Total

 

Segment

    

Revenue

    

Revenue

    

Revenue

    

Revenue

 

Power

 

$

162,934

 

28.1%

 

$

111,628

 

18.4%

 

Pipeline

 

 

63,145

 

10.9%

 

 

184,749

 

30.7%

 

Utilities

 

 

230,077

 

39.8%

 

 

189,354

 

31.5%

 

Civil

 

 

122,861

 

21.2%

 

 

116,132

 

19.4%

 

Total

 

$

579,017

 

100.0%

 

$

601,863

 

100.0%

 

 

 

 


 

 

Segment Gross Profit

(in thousands, except %)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended December 31, 

 

 

 

2017

 

2016

 

 

    

 

 

    

% of

    

 

 

    

% of

 

 

 

 

 

 

Segment

 

 

 

 

Segment

 

Segment

 

Gross Profit

 

Revenue

 

Gross Profit

 

Revenue

 

Power

 

$

13,177

 

8.1%

 

$

13,237

 

11.9%

 

Pipeline

 

 

12,512

 

19.8%

 

 

24,230

 

13.1%

 

Utilities

 

 

36,336

 

15.8%

 

 

31,420

 

16.6%

 

Civil

 

 

6,452

 

5.3%

 

 

(271)

 

(0.2%)

 

Total

 

$

68,477

 

11.8%

 

$

68,616

 

11.4%

 

 

 

Power, Industrial, & Engineering Segment:  Revenues in the Power segment increased by $51.3 million in the fourth quarter 2017, compared to the same period in 2016.  The increase in revenues was primarily due to increases from two power plant projects as well as increased renewables revenue.  Segment gross profit decreased by $0.1 million in the fourth quarter 2017, compared to the same period in 2017, primarily from a petrochemical plant that achieved substantial completion in the second quarter 2017, partially offset by increased gross profit from the two power plant projects.  Gross profit as a percentage of revenues decreased to 8.1% in the fourth quarter 2017, compared to 11.9% in the same period in 2016.  The decline in gross profit as a percentage of revenues is primarily due to higher costs on a compressor substation project in the fourth quarter 2017.

 

Pipeline & Underground Segment:  Revenues in the Pipeline segment decreased by $121.6 million in the fourth quarter 2017, compared to the same period in 2016, primarily due to decreased revenues from two large pipeline projects that achieved substantial completion in the second quarter 2017. Segment gross profit in the Pipeline segment decreased by $11.7 million, primarily as the result of the decreased revenues.  Gross profit as a percentage of revenues increased to 19.8% in the fourth quarter 2017, compared to 13.1% in the same period in 2016.  The increase in gross profit as a percentage of revenues is primarily due to the completion of a pipeline project in West Texas and the rental of large diameter pipeline equipment to third parties in the fourth quarter 2017.  We do not expect profit margins for this segment to remain at this elevated level in 2018.

 

Utilities & Distribution Segment:   Revenues in the Utilities segment increased by $40.7 million in the fourth quarter 2017, compared to the same period in 2016.  Approximately half of the increase came from increased revenues with California utilities, with increased revenues with Midwest utility customers and the second quarter 2017 acquisition of Florida Gas Contractors (now operating as Primoris Distribution Services) accounting for the remainder.  Segment gross profit increased by $4.9 million in the fourth quarter 2017, compared to the same period in 2016, primarily as a result of the increased revenues.  Gross profit as a percentage of revenues decreased to 15.8% in the fourth quarter 2017, compared to 16.6% in the same period in 2016. The decline in gross profit as a percentage of revenues is primarily due to an earlier start of winter weather in the fourth quarter 2017 compared to the fourth quarter 2016.

 

Civil Segment:   Revenues in the Civil segment increased by $6.7 million in the fourth quarter 2017, compared to the same period in 2016.  The increased revenues primarily came from Louisiana DOT and Houston area projects.  Segment gross profit increased by $6.7 million in the fourth quarter 2017, compared to the same period in 2016, primarily as the result of increased gross profit on Texas and Louisiana DOT projects. Gross profit as a percentage of revenues increased to 5.3% in the fourth quarter 2017, compared to (0.2%) in the same period in 2016. The increase in gross profit as a percentage of revenues is primarily due to the substantial completion of several challenging highway jobs in Texas and Arkansas.

 

 

 


 

 

OTHER INCOME STATEMENT INFORMATION

 

Selling, general and administrative expenses (“SG&A”) were $43.8 million, or 7.6% of revenues for the fourth quarter 2017, compared to $39.7 million, or 6.6% of revenues for the fourth quarter 2016.  The increase in SG&A for the quarter is primarily the result of increased SG&A from businesses acquired in 2017.

 

Operating income for the fourth quarter 2017 was $24.7 million, or 4.3% of total revenues, compared to $28.9 million, or 4.8% of total revenues, for the same period in 2016.

 

Net non-operating items in the fourth quarter 2017 resulted in net expenses of $1.1 million, compared to $2.3 million in net expenses in the fourth quarter 2016. 

 

As a result of the enactment of the Tax Cuts and Jobs Act in December 2017 and the requirement to remeasure deferred tax assets and liabilities using enacted tax rates, we recorded a one-time net tax benefit of $9.4 million in the fourth quarter 2017.  Excluding this one-time benefit, our provision for income taxes for the fourth quarter 2017 would have been $9.2 million, for an effective tax rate on income attributable to Primoris of 41.0%, compared to a provision for income taxes of $11.9 million, for an effective tax rate on income attributable to Primoris of 45.1%, in the fourth quarter 2016. 

 

Net income attributable to Primoris for the fourth quarter 2017 was $22.5 million, or $0.44 per diluted share, compared to $14.5 million, or $0.28 per diluted share, in the same period in 2016.  Excluding the one-time net tax benefit from the remeasurement of deferred tax assets and liabilities using enacted tax rates, net income attributable to Primoris for the fourth quarter 2017 would have been $13.1 million, or $0.25 per diluted share.

 

Fully diluted weighted average shares outstanding for the 2017 fourth quarter decreased slightly to 51.7 million from 52.0 million in the fourth quarter 2016.

 

2017 FULL YEAR RESULTS OVERVIEW

 

Segment Revenues

(in thousands, except %)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended December 31, 

 

 

 

2017

 

2016

 

 

 

 

 

 

% of

 

 

 

 

% of

 

 

 

 

 

 

Total

 

 

 

 

Total

 

Segment

    

Revenue

    

Revenue

    

Revenue

    

Revenue

 

Power

 

$

606,125

 

25.5%

 

$

478,653

 

24.0%

 

Pipeline

 

 

465,570

 

19.5%

 

 

401,931

 

20.1%

 

Utilities

 

 

806,523

 

33.9%

 

 

637,212

 

31.9%

 

Civil

 

 

501,777

 

21.1%

 

 

479,152

 

24.0%

 

Total

 

$

2,379,995

 

100.0%

 

$

1,996,948

 

100.0%

 

 

 

 


 

 

Segment Gross Profit

(in thousands, except %)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended December 31, 

 

 

 

2017

 

2016

 

 

    

 

 

    

% of

    

 

 

    

% of

 

 

 

 

 

 

Segment

 

 

 

 

Segment

 

Segment

 

Gross Profit

 

Revenue

 

Gross Profit

 

Revenue

 

Power

 

$

65,675

 

10.8%

 

$

49,807

 

10.4%

 

Pipeline

 

 

92,087

 

19.8%

 

 

68,100

 

16.9%

 

Utilities

 

 

113,037

 

14.0%

 

 

100,071

 

15.7%

 

Civil

 

 

7,635

 

1.5%

 

 

(16,671)

 

(3.5%)

 

Total

 

$

278,434

 

11.7%

 

$

201,307

 

10.1%

 

 

OUTLOOK

 

Based on an expected second quarter 2018 start date for a major pipeline project in backlog, anticipated levels of customer maintenance, MSA spending, new project awards, and an expected corporate tax rate of 28%, the Company estimates that for the four quarters ending December 31, 2018, net income attributable to Primoris will be between $1.50 and $1.70 per fully diluted share.

 

BACKLOG

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expected Next Four

 

 

 

 

 

 

 

 

 

 

 

Quarters Total

 

 

Backlog at December 31, 2017 (in millions)

 

Backlog Revenue

 

Segment

Fixed Backlog

 

MSA Backlog

 

Total Backlog

 

Recognition

 

Power

$

382

 

$

41

 

$

423

 

 

86%

 

Pipeline

 

778

 

 

35

 

 

813

 

 

53%

 

Utilities

 

58

 

 

681

 

 

739

 

 

100%

 

Civil

 

606

 

 

18

 

 

624

 

 

55%

 

Total

$

1,824

 

$

775

 

$

2,599

 

 

72%

 

 

At December 31, 2017, Fixed Backlog was $1.82 billion, compared to $2.13 billion at December 31, 2016.

 

At December 31, 2017, MSA Backlog was $775 million, compared to $672 million at December 31, 2016.  During 2017, approximately $665 million of revenues was recognized from MSA projects, a 15.5% increase over 2016 MSA revenues.  MSA Backlog represents estimated MSA revenues for the next four quarters.

 

Total Backlog at December 31, 2017 was $2.60 billion, compared to $2.80 billion at December 31, 2016. 

 

Backlog, including estimated MSA revenues, should not be considered a comprehensive indicator of future revenues.  Revenue from certain projects, such as cost reimbursable and time-and-materials projects, do not flow through backlog.  At any time, any project may be cancelled at the convenience of our customers.

 

CONFERENCE CALL

 

David King, President and Chief Executive Officer, and Peter J. Moerbeek, Executive Vice President and Chief Financial Officer will host a conference call, Tuesday, February 27, 2018 at 10:00 am Eastern Time / 9:00 am Central Time to discuss the results. 

 

 

 


 

 

Interested parties may participate in the call by dialing:  

 

·

(877) 407-8293 (Domestic)

·

(201) 689-8349 (International)

Presentation slides to accompany the conference call are available for download in the Investor Relations section of Primoris’ 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, a replay may be accessed by dialing (877) 660-6853, conference ID 13676786, 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' website at www.prim.com.

 

ABOUT PRIMORIS

 

Founded in 1960, Primoris, through various subsidiaries, has grown to become one of the largest construction service enterprises in the United States. Serving diverse end markets, Primoris provides a wide range of construction, fabrication, maintenance, replacement, water and wastewater, and engineering services to major public utilities, petrochemical companies, energy companies, municipalities, and other customers. The Company's national footprint extends from Florida, along the Gulf Coast, through California, into the Pacific Northwest and Canada. For additional information, please visit www.prim.com.

 

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 December 31, 2017, and other filings with the Securities and Exchange Commission.  Given these uncertainties, you should not place undue reliance on forward-looking statements.  Primoris does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

 

 

 

 

 

Company Contact

    

 

    

Peter J. Moerbeek

 

Kate Tholking

 

Executive Vice President, Chief Financial Officer

 

Director of Investor Relations

 

(214) 740-5602

 

(214) 740-5615

 

pmoerbeek@prim.com

 

ktholking@prim.com

 

 

 

 

 


 

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, Except Per Share Amounts)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

 

December 31, 

 

December 31, 

 

 

    

2017

    

2016

    

2017

    

2016

 

Revenue

 

$

579,017

 

$

601,863

 

$

2,379,995

 

$

1,996,948

 

Cost of revenue

 

 

510,540

 

 

533,247

 

 

2,101,561

 

 

1,795,641

 

Gross profit

 

 

68,477

 

 

68,616

 

 

278,434

 

 

201,307

 

Selling, general and administrative expenses

 

 

43,756

 

 

39,692

 

 

172,146

 

 

140,842

 

Impairment of goodwill

 

 

 —

 

 

 —

 

 

 —

 

 

2,716

 

Operating income

 

 

24,721

 

 

28,924

 

 

106,288

 

 

57,749

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income

 

 

(249)

 

 

 —

 

 

5,817

 

 

 —

 

Foreign exchange gain (loss)

 

 

(46)

 

 

(86)

 

 

253

 

 

202

 

Other income (expense), net

 

 

536

 

 

(37)

 

 

484

 

 

(315)

 

Interest income

 

 

176

 

 

27

 

 

587

 

 

149

 

Interest expense

 

 

(1,541)

 

 

(2,160)

 

 

(8,146)

 

 

(8,914)

 

Income before provision for income taxes

 

 

23,597

 

 

26,668

 

 

105,283

 

 

48,871

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

(9,151)

 

 

(11,902)

 

 

(37,795)

 

 

(21,146)

 

Income tax benefit from remeasurement under Tax Act

 

 

9,362

 

 

 —

 

 

9,362

 

 

 —

 

 

 

 

211

 

 

(11,902)

 

 

(28,433)

 

 

(21,146)

 

Net income

 

$

23,808

 

$

14,766

 

$

76,850

 

$

27,725

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less net income attributable to noncontrolling interests

 

 

(1,287)

 

 

(296)

 

$

(4,496)

 

$

(1,002)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Primoris

 

$

22,521

 

$

14,470

 

$

72,354

 

$

26,723

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per common share

 

$

0.060

 

$

0.055

 

$

0.225

 

$

0.220

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.44

 

$

0.28

 

$

1.41

 

$

0.52

 

Diluted

 

$

0.44

 

$

0.28

 

$

1.40

 

$

0.51

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

51,449

 

 

51,771

 

 

51,481

 

 

51,762

 

Diluted

 

 

51,711

 

 

52,021

 

 

51,741

 

 

51,989

 

 

 

 

 

 

 

 

 


 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

December 31, 

 

 

December 31, 

 

 

    

2017

    

2016

 

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

170,385

 

$

135,823

 

Customer retention deposits

 

 

1,000

 

 

481

 

Accounts receivable, net

 

 

358,175

 

 

388,000

 

Costs and estimated earnings in excess of billings

 

 

160,092

 

 

138,618

 

Inventory and uninstalled contract materials

 

 

40,922

 

 

49,201

 

Prepaid expenses and other current assets

 

 

12,640

 

 

18,985

 

Total current assets

 

 

743,214

 

 

731,108

 

Property and equipment, net

 

 

311,777

 

 

277,346

 

Intangible assets, net

 

 

44,800

 

 

32,841

 

Goodwill

 

 

153,374

 

 

127,226

 

Other long-term assets

 

 

2,575

 

 

2,046

 

Total assets

 

$

1,255,740

 

$

1,170,567

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

 

$

140,943

 

$

168,110

 

Billings in excess of costs and estimated earnings

 

 

159,034

 

 

112,606

 

Accrued expenses and other current liabilities

 

 

111,387

 

 

108,006

 

Dividends payable

 

 

3,087

 

 

2,839

 

Current portion of capital leases

 

 

132

 

 

188

 

Current portion of long-term debt

 

 

65,464

 

 

58,189

 

Current portion of contingent earnout liabilities

 

 

716

 

 

 —

 

Total current liabilities

 

 

480,763

 

 

449,938

 

Long-term capital leases, net of current portion

 

 

196

 

 

15

 

Long-term debt, net of current portion

 

 

193,351

 

 

203,150

 

Deferred tax liabilities

 

 

13,571

 

 

9,830

 

Other long-term liabilities

 

 

5,676

 

 

9,064

 

Total liabilities

 

 

693,557

 

 

671,997

 

Commitments and contingencies

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

Common stock

 

 

 5

 

 

 5

 

Additional paid-in capital

 

 

160,502

 

 

162,128

 

Retained earnings

 

 

395,961

 

 

335,218

 

Non-controlling interest

 

 

5,715

 

 

1,219

 

Total stockholders’ equity

 

 

562,183

 

 

498,570

 

Total liabilities and stockholders’ equity

 

$

1,255,740

 

$

1,170,567

 

 

 

 


 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

 

 

December 31, 

 

 

    

2017

    

2016

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income

 

$

76,850

 

$

27,725

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation

 

 

57,614

 

 

61,433

 

Amortization of intangible assets

 

 

8,689

 

 

6,597

 

Goodwill and intangible asset impairment

 

 

477

 

 

2,716

 

Stock-based compensation expense

 

 

1,126

 

 

1,627

 

Gain on short-term investments

 

 

(5,817)

 

 

 —

 

Gain on sale of property and equipment

 

 

(4,434)

 

 

(4,677)

 

Net deferred tax liabilities (assets)

 

 

3,741

 

 

10,905

 

Other non-cash items

 

 

203

 

 

174

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

Customer retention deposits

 

 

(519)

 

 

2,117

 

Accounts receivable

 

 

40,546

 

 

(65,806)

 

Costs and estimated earnings in excess of billings

 

 

(20,894)

 

 

(22,163)

 

Other current assets

 

 

16,976

 

 

17,491

 

Other long-term assets

 

 

28

 

 

(1,792)

 

Accounts payable

 

 

(30,547)

 

 

42,934

 

Billings in excess of costs and estimated earnings

 

 

45,981

 

 

(27,519)

 

Contingent earnout liabilities

 

 

(484)

 

 

 —

 

Accrued expenses and other current liabilities

 

 

(972)

 

 

14,492

 

Other long-term liabilities

 

 

378

 

 

(3,677)

 

Net cash provided by operating activities

 

 

188,942

 

 

62,577

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(79,782)

 

 

(58,027)

 

Proceeds from sale of property and equipment

 

 

8,736

 

 

9,603

 

Purchase of short-term investments

 

 

(13,588)

 

 

 —

 

Sale of short-term investments

 

 

19,405

 

 

 —

 

Cash paid for acquisitions

 

 

(66,205)

 

 

(10,997)

 

Net cash used in investing activities

 

 

(131,434)

 

 

(59,421)

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Proceeds from issuance of long-term debt

 

 

55,000

 

 

45,000

 

Repayment of capital leases

 

 

(322)

 

 

(793)

 

Repayment of long-term debt

 

 

(61,816)

 

 

(57,719)

 

Payment of debt issuance costs

 

 

(631)

 

 

 —

 

Proceeds from issuance of common stock purchased under a long-term incentive plan

 

 

1,148

 

 

1,440

 

Repurchase of common stock

 

 

(4,999)

 

 

(4,999)

 

Dividends paid

 

 

(11,326)

 

 

(11,384)

 

Net cash used in financing activities

 

 

(22,946)

 

 

(28,455)

 

Net change in cash and cash equivalents

 

 

34,562

 

 

(25,299)

 

Cash and cash equivalents at beginning of the period

 

 

135,823

 

 

161,122

 

Cash and cash equivalents at end of the period

 

$

170,385

 

$

135,823