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 28, 2019

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.)

 

 

2300 Field Street, 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 28, 2019, 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, 2018.

 

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  26, 2019, the Board of Directors declared a cash dividend of $0.06 per common share for stockholders of record as of March 29, 2019, payable on or about April 15, 2019.

 

Item 9.01.Financial Statements and Exhibits.

 

(d)   Exhibits.

 

 

 

 

 

Exhibit No.

 

Description

 

 

 

99.1

 

Press release dated February 28, 2019

 

 

 

 

 

 

2

 


 

 

 

 

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 28, 2019

 

By:

/s/ Kenneth M. Dodgen

 

 

 

Kenneth M. Dodgen

 

 

 

Executive Vice President, Chief Financial Officer

 

 

3

 


prim_Exhibit_99_1

 

 

Exhibit 99.1

PSC_Primoris 300

 

 

PRIMORIS SERVICES CORPORATION ANNOUNCES 2018 FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS

 

Board of Directors Declares $0.06 Per Share Cash Dividend

 

Financial Highlights

 

·

Record 2018 revenue of $2.9 billion, compared to $2.4 billion in 2017

·

2018 Q4 revenue of $877.7 million, compared to $579.0 million in 2017 Q4

·

Record 2018 net income attributable to Primoris of $77.5 million, or $1.50 per fully diluted share, compared to $72.4 million, or $1.40 per fully diluted share, in 2017

o

2018 results include $13.3 million in one-time, merger-related costs, compared to $1.8 million in 2017

·

2018 Q4 net income attributable to Primoris of $32.4 million, or $0.63 per fully diluted share, compared to $22.5 million, or $0.44 per fully diluted share, in 2017 Q4

·

Total backlog of $2.8 billion at December 31, 2018

o

Record MSA Backlog of $1.3 billion at December 31, 2018

·

Cash balance of $151.1 million at December 31, 2018

·

2018 cash flow from operations of $126.8 million

 

Dallas, TX – February 28, 2019–  Primoris Services Corporation (NASDAQ GS: PRIM) (“Primoris” or “Company”) today announced financial results for its fourth quarter and year ended December 31, 2018.

 

The Company also announced that on February 26, 2019 its Board of Directors declared a $0.06 per share cash dividend to stockholders of record on March 29, 2019, payable on or about April 15, 2019. 

 

David King, President and Chief Executive Office of Primoris, commented, “2018 was another record year for Primoris, as we achieved our strategic goal of growing revenue to nearly $3 billion by 2019 and achieved our largest annual revenue, operating income, and EPS in the Company’s history while growing our MSA revenue to all-time records. As we continue to execute our strategic plan and growth initiatives, we are well positioned to continue delivering value to our shareholders. The Power & Industrial segment was particularly strong, with our teams in the field delivering impressive margins on multiple projects. The Utilities & Distribution segment continued their record of steady growth and geographic expansion, and combined with our new Transmission & Distribution segment, our MSA backlog has reached an all-time high. We have grown our presence in the Southwest small diameter pipeline and field services markets, and our Pipeline & Underground segment performance remains solid in the face of permitting challenges and weather headwinds. The Civil segment has made progress on legacy projects and we have the right team in place for successful execution on new awards.”

 

Mr. King continued, “We believe we are well positioned to continue to capitalize on the increasing need for infrastructure services that allow for multi-year growth cycles in all of our business segments. As Primoris has grown revenue and backlog, we have also achieved our goal of containing overhead spending, with SG&A as a percentage of revenue now at its lowest level in four years. We controlled spending without sacrificing our focus on safety, or quality, and we are immensely proud of our total recordable incident rate of 0.51 for the year, which is well below the industry average. As we look at the opportunities in 2019, our gas and electric MSA


 

 

work provides a reliable recurring base of revenue on which we can build continued growth.  While the timing of large project work can be uncertain, we believe we have the right balance between recurring and project based opportunities. Our business units are working together to pursue projects across the renewable, petrochemical, utilities, power, and refining industries. We are encouraged by our client’s staunch support for a major pipeline project that has faced considerable legal challenges, and opportunities for small diameter pipeline work remain strong. We have a breadth of opportunity across our end markets to support another robust year for Primoris in 2019.”

 

2018  FOURTH QUARTER RESULTS OVERVIEW

 

Revenue for the fourth quarter 2018 increased by $298.7 million, or 51.6%, compared to the fourth quarter 2017.  The increase was primarily due to incremental revenue in the fourth quarter 2018 from acquisitions and organic growth in our Pipeline segment.  Gross profit in the fourth quarter 2018 increased by $34.8 million, or 50.8%, compared to fourth quarter 2017. The increase was primarily due to incremental gross profit from acquisitions, the settlement of a disputed receivable related to a project completed in 2014, and the increased revenue in the Pipeline segment.  Gross profit as a percentage of revenue was 11.8% in both the 2018 and 2017 fourth quarters.

 

Segment Revenue

(in thousands, except %)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended December 31, 

 

 

 

2018

 

2017

 

 

 

 

 

 

% of

 

 

 

 

% of

 

 

 

 

 

 

Total

 

 

 

 

Total

 

Segment

    

Revenue

    

Revenue

    

Revenue

    

Revenue

 

Power

 

$

178,670

 

20.3%

 

$

162,934

 

28.1%

 

Pipeline

 

 

229,676

 

26.2%

 

 

63,145

 

10.9%

 

Utilities

 

 

237,558

 

27.1%

 

 

230,077

 

39.8%

 

Transmission

 

 

122,769

 

14.0%

 

 

 —

 

 —

 

Civil

 

 

108,997

 

12.4%

 

 

122,861

 

21.2%

 

Total

 

$

877,670

 

100.0%

 

$

579,017

 

100.0%

 

 

Segment Gross Profit

(in thousands, except %)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended December 31, 

 

 

 

2018

 

2017

 

 

    

 

 

    

% of

    

 

 

    

% of

 

 

 

 

 

 

Segment

 

 

 

 

Segment

 

Segment

 

Gross Profit

 

Revenue

 

Gross Profit

 

Revenue

 

Power

 

$

33,115

 

18.5%

 

$

13,177

 

8.1%

 

Pipeline

 

 

23,034

 

10.0%

 

 

12,512

 

19.8%

 

Utilities

 

 

32,862

 

13.8%

 

 

36,336

 

15.8%

 

Transmission

 

 

12,225

 

10.0%

 

 

 —

 

 —

 

Civil

 

 

2,017

 

1.9%

 

 

6,452

 

5.3%

 

Total

 

$

103,253

 

11.8%

 

$

68,477

 

11.8%

 

 

 

 


 

 

Power, Industrial, & Engineering Segment (“Power”):  Revenue in the Power segment increased by $15.7 million in the fourth quarter 2018, compared to the same period in 2017.  The increase in revenue was primarily due to increases from an oil field maintenance services program and a refinery project, both in Southern California, as well as revenue from the Canadian operations of the Willbros acquisition.  Revenue gains were partially offset by declining revenue from the Carlsbad joint venture, as that project achieved substantial completion in the fourth quarter 2018.   In addition, we collected on a disputed receivable in the fourth quarter 2018 related to a major project completed in 2014, which resulted in recognizing revenue of approximately $11.9 million.  Segment gross profit increased by $19.9 million in the fourth quarter 2018, compared to the same period in 2017, primarily from the Southern California refinery project and the Carlsbad joint venture project, as well as the collection of the disputed receivable.  Gross profit as a percentage of revenue increased to 18.5% in the fourth quarter 2018, compared to 8.1% in the same period in 2017.  The increase in gross profit as a percentage of revenue is primarily due to strong performance and favorable margins realized by our Carlsbad joint venture project, as well as the collection of the disputed receivable. We do not expect profit margins to remain at  this elevated level in 2019.

 

Pipeline & Underground Segment (“Pipeline”):  Revenue in the Pipeline segment increased by $166.5 million in the fourth quarter 2018, compared to the same period in 2017, primarily due to increased revenue from large pipeline projects in the Mid Atlantic and West Texas. Segment gross profit increased by $10.5 million in the fourth quarter 2018, compared to the same period in 2017, primarily as the result of the increased revenue.  Gross profit as a percentage of revenue decreased to 10.0% in the fourth quarter 2018, compared to 19.8% in the same period in 2017.  The decrease in gross profit as a percentage of revenue 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.

 

Utilities & Distribution Segment (“Utilities”):   Revenue in the Utilities segment increased by $7.5 million in the fourth quarter 2018, compared to the same period in 2017.  Revenue increased with major utility customers in California and the MidWest.  Segment gross profit decreased by $3.5 million in the fourth quarter 2018, compared to the same period in 2017, primarily as a result of a wet December and project mix.  Gross profit as a percentage of revenue decreased to 13.8% in the fourth quarter 2018, compared to 15.8% in the same period in 2017. The decline in gross profit as a percentage of revenue is primarily due to weather and mix.

 

Transmission & Distribution Segment (“Transmission”):  The Transmission segment was created in connection with the acquisition of Willbros. All revenue and gross profit figures represent results from June 1, 2018, the acquisition date, to December 31, 2018.

 

Civil Segment (“Civil”):   Revenue in the Civil segment decreased by $13.9 million in the fourth quarter 2018, compared to the same period in 2017.  The decreased revenue primarily came from the decision to exit an airport project in the second quarter of 2018, the substantial completion of a large petrochemical plant project in 2017 and decreases from Arkansas DOT projects.  Segment gross profit decreased by $4.4 million in the fourth quarter 2018, compared to the same period in 2017, primarily as the result of decreased revenue. Gross profit as a percentage of revenue decreased to 1.9% in the fourth quarter 2018, compared to 5.3% the same period in 2017. The decrease in gross profit as a percentage of revenue is primarily due to the substantial completion of a large petrochemical plant project in 2017.

 

OTHER INCOME STATEMENT INFORMATION

 

Selling, general and administrative (“SG&A”) expenses were $50.0 million during the fourth quarter 2018, an increase of $6.4 million, compared to the fourth quarter 2017.  SG&A expense as a percentage of revenue decreased to 5.7% compared to 7.5% for the corresponding period in 2017 due to increased revenue.

 

The effective tax rate on income attributable to Primoris (excluding noncontrolling interests) was 25.0% for full year 2018. The rate differs from the U.S. federal statutory rate of 21% primarily due to state income taxes, investment tax credits, and nondeductible components of per diem expenses.  

 

 

 


 

 

2018 FULL YEAR RESULTS OVERVIEW

 

Segment Revenue

(in thousands, except %)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended December 31, 

 

 

 

2018

 

2017

 

 

 

 

 

 

% of

 

 

 

 

% of

 

 

 

 

 

 

Total

 

 

 

 

Total

 

Segment

    

Revenue

    

Revenue

    

Revenue

    

Revenue

 

Power

 

$

694,048

 

23.6%

 

$

606,125

 

25.5%

 

Pipeline

 

 

590,937

 

20.1%

 

 

465,570

 

19.5%

 

Utilities

 

 

902,772

 

30.7%

 

 

806,523

 

33.9%

 

Transmission

 

 

286,749

 

9.8%

 

 

 —

 

 —

 

Civil

 

 

464,972

 

15.8%

 

 

501,777

 

21.1%

 

Total

 

$

2,939,478

 

100.0%

 

$

2,379,995

 

100.0%

 

 

Segment Gross Profit

(in thousands, except %)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended December 31, 

 

 

 

2018

 

2017

 

 

    

 

 

    

% of

    

 

 

    

% of

 

 

 

 

 

 

Segment

 

 

 

 

Segment

 

Segment

 

Gross Profit

 

Revenue

 

Gross Profit

 

Revenue

 

Power

 

$

109,789

 

15.8%

 

$

65,675

 

10.8%

 

Pipeline

 

 

66,602

 

11.3%

 

 

92,087

 

19.8%

 

Utilities

 

 

111,825

 

12.4%

 

 

113,037

 

14.0%

 

Transmission

 

 

31,904

 

11.1%

 

 

 —

 

 —

 

Civil

 

 

5,617

 

1.2%

 

 

7,635

 

1.5%

 

Total

 

$

325,737

 

11.1%

 

$

278,434

 

11.7%

 

 

OUTLOOK

 

Based on an expected third quarter 2019 remobilization date for a major pipeline project in backlog, anticipated MSA spending, and an expected corporate tax rate of 28%, the Company estimates that for the fiscal year ending December 31, 2019, net income attributable to Primoris is expected to be between $1.60 and $1.80 per fully diluted share.

 

BACKLOG

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expected Next Four

 

 

 

 

 

 

 

 

 

 

 

Quarters Total

 

 

Backlog at December 31, 2018 (in millions)

 

Backlog Revenue

 

Segment

Fixed Backlog

 

MSA Backlog

 

Total Backlog

 

Recognition

 

Power

$

245

 

$

122

 

$

367

 

 

91%

 

Pipeline

 

673

 

 

30

 

 

703

 

 

63%

 

Utilities

 

37

 

 

752

 

 

789

 

 

100%

 

Transmission

 

15

 

 

380

 

 

395

 

 

100%

 

Civil

 

506

 

 

 —

 

 

506

 

 

69%

 

Total

$

1,476

 

$

1,284

 

$

2,760

 

 

84%

 

 

At December 31, 2018, Fixed Backlog was $1.48 billion, compared to $1.82 billion at December 31, 2017.

 

At December 31, 2018, MSA Backlog was $1.28 billion, compared to $775 million at December 31, 2017.  During 2018, approximately $1.13 billion of revenue was recognized from MSA projects, a 69.6% increase over 2017 MSA revenue.  MSA Backlog represents estimated MSA revenue for the next four quarters.

 

 


 

 

 

Total Backlog at December 31, 2018 was $2.76 billion, compared to $2.60 billion at December 31, 2017.  

 

Backlog, including estimated MSA revenue, should not be considered a comprehensive indicator of future revenue.  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 Ken Dodgen, Executive Vice President and Chief Financial Officer will host a conference call, Thursday, February 28, 2019 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 13687559, 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, 2018, 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

    

 

    

Kenneth M. Dodgen

 

Kate Tholking

 

Executive Vice President, Chief Financial Officer

 

Vice President of Investor Relations

 

(214) 740-5608

 

(214) 740-5615

 

kdodgen@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, 

 

 

    

2018

    

2017

    

2018

    

2017

 

Revenue

 

$

877,670

 

$

579,017

 

$

2,939,478

 

$

2,379,995

 

Cost of revenue

 

 

774,417

 

 

510,540

 

 

2,613,741

 

 

2,101,561

 

Gross profit

 

 

103,253

 

 

68,477

 

 

325,737

 

 

278,434

 

Selling, general and administrative expenses

 

 

49,957

 

 

43,537

 

 

182,006

 

 

170,372

 

Merger and related costs

 

 

70

 

 

219

 

 

13,260

 

 

1,774

 

Operating income

 

 

53,226

 

 

24,721

 

 

130,471

 

 

106,288

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income

 

 

 —

 

 

(249)

 

 

 —

 

 

5,817

 

Foreign exchange (loss) gain

 

 

(756)

 

 

(46)

 

 

688

 

 

253

 

Other income (expense), net

 

 

(57)

 

 

536

 

 

(808)

 

 

484

 

Interest income

 

 

209

 

 

176

 

 

1,753

 

 

587

 

Interest expense

 

 

(7,109)

 

 

(1,541)

 

 

(18,746)

 

 

(8,146)

 

Income before provision for income taxes

 

 

45,513

 

 

23,597

 

 

113,358

 

 

105,283

 

Provision for income taxes

 

 

(11,132)

 

 

211

 

 

(25,765)

 

 

(28,433)

 

Net income

 

$

34,381

 

$

23,808

 

$

87,593

 

$

76,850

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less net income attributable to noncontrolling interests

 

 

(2,014)

 

 

(1,287)

 

$

(10,132)

 

$

(4,496)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Primoris

 

$

32,367

 

$

22,521

 

$

77,461

 

$

72,354

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per common share

 

$

0.060

 

$

0.060

 

$

0.240

 

$

0.225

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.63

 

$

0.44

 

$

1.51

 

$

1.41

 

Diluted

 

$

0.63

 

$

0.44

 

$

1.50

 

$

1.40

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

50,993

 

 

51,449

 

 

51,350

 

 

51,481

 

Diluted

 

 

51,397

 

 

51,711

 

 

51,670

 

 

51,741

 

 

 

 

 

 

 

 

 


 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

December 31, 

 

 

December 31, 

 

 

    

2018

    

2017

 

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

151,063

 

$

170,385

 

Accounts receivable, net

 

 

372,695

 

 

291,589

 

Contract assets

 

 

364,245

 

 

265,902

 

Prepaid expenses and other current assets

 

 

36,444

 

 

15,338

 

Total current assets

 

 

924,447

 

 

743,214

 

Property and equipment, net

 

 

375,884

 

 

311,777

 

Deferred tax assets

 

 

1,457

 

 

 —

 

Intangible assets, net

 

 

81,198

 

 

44,800

 

Goodwill

 

 

206,159

 

 

153,374

 

Other long-term assets

 

 

5,002

 

 

2,575

 

Total assets

 

$

1,594,147

 

$

1,255,740

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

 

$

249,217

 

$

140,943

 

Contract liabilities

 

 

189,539

 

 

169,377

 

Accrued liabilities

 

 

117,527

 

 

76,027

 

Dividends payable

 

 

3,043

 

 

3,087

 

Current portion of long-term debt

 

 

62,488

 

 

65,464

 

Total current liabilities

 

 

621,814

 

 

454,898

 

Long-term debt, net of current portion

 

 

305,669

 

 

193,351

 

Deferred tax liabilities

 

 

8,166

 

 

13,571

 

Other long-term liabilities

 

 

51,515

 

 

31,737

 

Total liabilities

 

 

987,164

 

 

693,557

 

Commitments and contingencies

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

Common stock

 

 

 5

 

 

 5

 

Additional paid-in capital

 

 

144,048

 

 

160,502

 

Retained earnings

 

 

461,075

 

 

395,961

 

Accumulated other comprehensive income

 

 

(908)

 

 

 —

 

Noncontrolling interest

 

 

2,763

 

 

5,715

 

Total stockholders’ equity

 

 

606,983

 

 

562,183

 

Total liabilities and stockholders’ equity

 

$

1,594,147

 

$

1,255,740

 

 

 

 


 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

 

 

December 31, 

 

 

    

2018

    

2017

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income

 

$

87,593

 

$

76,850

 

Adjustments to reconcile net income to net cash provided by operating activities (net of effect of acquisitions):

 

 

 

 

 

 

 

Depreciation

 

 

67,948

 

 

57,614

 

Amortization of intangible assets

 

 

11,302

 

 

8,689

 

Intangible asset impairment

 

 

 —

 

 

477

 

Stock-based compensation expense

 

 

1,253

 

 

1,126

 

Gain on short-term investments

 

 

 —

 

 

(5,817)

 

Gain on sale of property and equipment

 

 

(3,556)

 

 

(4,434)

 

Other non-cash items

 

 

275

 

 

203

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

 

20,912

 

 

60,739

 

Contract assets

 

 

(67,593)

 

 

(32,137)

 

Other current assets

 

 

(2,278)

 

 

7,507

 

Net deferred tax liabilities (assets)

 

 

17,155

 

 

3,741

 

Other long-term assets

 

 

244

 

 

28

 

Accounts payable

 

 

32,323

 

 

(30,547)

 

Contract liabilities

 

 

(43,801)

 

 

42,610

 

Accrued liabilities

 

 

5,933

 

 

1,915

 

Other long-term liabilities

 

 

(895)

 

 

378

 

Net cash provided by operating activities

 

 

126,815

 

 

188,942

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(110,189)

 

 

(79,782)

 

Issuance of a note receivable

 

 

(15,000)

 

 

 —

 

Proceeds from a note receivable

 

 

15,000

 

 

 —

 

Proceeds from sale of property and equipment

 

 

11,657

 

 

8,736

 

Purchase of short-term investments

 

 

 —

 

 

(13,588)

 

Sale of short-term investments

 

 

 —

 

 

19,405

 

Cash paid for acquisitions, net of cash and restricted cash acquired

 

 

(110,620)

 

 

(66,205)

 

Net cash used in investing activities

 

 

(209,152)

 

 

(131,434)

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Borrowings under revolving line of credit

 

 

190,000

 

 

 —

 

Payments on revolving line of credit

 

 

(190,000)

 

 

 —

 

Proceeds from issuance of long-term debt

 

 

255,967

 

 

55,000

 

Repayment of long-term debt

 

 

(145,726)

 

 

(61,816)

 

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

 

 

1,498

 

 

1,148

 

Payment of contingent earnout liability

 

 

(1,200)

 

 

 —

 

Cash distribution to non-controlling interest holders

 

 

(13,084)

 

 

 —

 

Repurchase of common stock

 

 

(20,000)

 

 

(4,999)

 

Dividends paid

 

 

(12,343)

 

 

(11,326)

 

Other

 

 

(1,173)

 

 

(953)

 

Net cash provided by (used in) financing activities

 

 

63,939

 

 

(22,946)

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(924)

 

 

 —

 

Net change in cash and cash equivalents

 

 

(19,322)

 

 

34,562

 

Cash and cash equivalents at beginning of the period

 

 

170,385

 

 

135,823

 

Cash and cash equivalents at end of the period

 

$

151,063

 

$

170,385