Primoris Services Corp (Form: 8-K, Received: 03/02/2012 16:32:53)
false000136153800013615382019-08-022019-08-02

 

 

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

 

August 2, 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 N. Field Street, Suite 1900, 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.

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common Stock, $0.0001 par value

PRIM

The Nasdaq Stock Market LLC

Item 2.02                      Results of Operations and Financial Condition.

 

On August 6, 2019, Primoris Services Corporation, a Delaware corporation (“Primoris”, the “Company”) issued a press release announcing its financial performance for the second quarter ended June 30, 2019.

 

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 5.02                      Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On August 2, 2019, the Board of Directors (the “Board”) of the Company voted to increase the size of the Board to nine members and elected Thomas E. McCormick, the Company’s President, to the Board, effective immediately.

Item 8.01            Other Events.

Declaration of Cash Dividend to Stockholders

On August 2, 2019, the Board of Directors declared a cash dividend of $0.06 per common share for stockholders of record as of September 30, 2019, payable on or about October 15, 2019.

Item 9.01.Financial Statements and Exhibits.

(d)   Exhibits.

 

Exhibit No.

 

Description

 

 

 

99.1

Press release dated August 6, 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: August 6, 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 2019 SECOND QUARTER FINANCIAL RESULTS

 

Ø

Board of Directors Declares $0.06 Per Share Cash Dividend

Ø

Tom McCormick appointed to Board of Directors

 

Financial Highlights

 

·

2019 Q2 revenue of $789.9 million, compared to $648.8 million in 2018 Q2, a 21.7% increase

o

2019 Q2 MSA revenue of $348.3 million, a 46% increase over 2018 Q2 MSA revenue

·

2019 Q2 net income attributable to Primoris of $17.8 million, or $0.35 per fully diluted share

o

compared to $11.7 million, or $0.23 per fully diluted share, in 2018 Q2, a 52% increase

·

2019 Q2 SG&A 6.2% of revenue, compared to 2018 Q2 6.7% of revenue

·

Record Total Backlog of $3.2 billion at June 30, 2019, a 15.9% increase over December 31, 2018

 

Dallas, TX – August 6, 2019–  Primoris Services Corporation (NASDAQ GS: PRIM) (“Primoris” or “Company”) today announced financial results for its second quarter ended June 30, 2019.

 

The Company also announced that on August 2, 2019 its Board of Directors declared a $0.06 per share cash dividend to stockholders of record on September 30, 2019, payable on or about October 15, 2019. 

 

The Board also voted to appoint Primoris’ President Tom McCormick to the Board of Directors, increasing the size of the Board from eight to nine members.  Mr. McCormick’s appointed term will expire at the 2020 Annual Meeting, at which time he will be up for re-election.  Mr. McCormick joined Primoris in 2016 as Chief Operating Officer and was promoted to President in April 2019.

 

David King, Executive Chairman and Chief Executive Officer of Primoris, commented, “We are extremely proud of Primoris’ second quarter results, with both revenue and net income exceeding expectations and setting a new record backlog that surpassed $3 billion for the first time in Primoris’ history.  Continued implementation of our strategic plan has helped us achieve 22% year over year growth in revenue and 46% year over year growth in MSA derived revenue while de-risking our diverse portfolio of services.  Strong project execution and a continued focus on controlling SG&A expense contributed to our robust second quarter.  While the wet weather presented some headwinds for our pipeline and utility businesses, we benefited from the diversity of our business model and the overall strength of our end markets.  We are proud of our employees’ dedication and our management’s demonstration of their ability to generate consistent and predictable results.”

 

Mr. King continued, “We believe the stability and consistency of our earnings history lies in our focus on relationships and in performing good quality, on-time, safe work for our clients.  The demand for our services combined with our growing project opportunity funnel continues to allow us to achieve new records in backlog growth.  As we look to the future, we are very comfortable with the risk profile of Primoris’ revenue compared to many of our peers.  The majority of our contracts are either cost reimbursable or unit price, and our average project value is less than $10 million.  Almost half of Primoris’ revenue is generated from long-term MSA relationships with blue chip gas and electric utility customers, and less than 25% of our contract revenue is derived from fixed price contracts.  With the exception of a few Canadian projects, all of our work is performed in the United States, we do not have a material exposure to tariffs, and we have a long history of good relations with our craft labor.  We believe our strategy of disciplined growth combined with our conservative culture will continue to benefit Primoris, our employees, and our shareholders.”

 

 

2019 SECOND QUARTER RESULTS OVERVIEW

 

Revenue was $789.9 million for the three months ended June 30, 2019, an increase of $141.1 million, or 21.8%, compared to the same period in 2018. The increase was primarily due to incremental revenue from the Willbros acquisition and organic growth in the Pipeline segment. Gross profit was $80.5 million for the three months ended June 30, 2019, an increase of $9.1 million, or 12.8%, compared to the same period in 2018.  The increase was primarily due to revenue growth. Gross profit for the three months ended June 30, 2019 from the Willbros acquisition totaled $7.7 million. Gross profit as a percentage of revenue decreased to 10.2% in the three months ended June 30, 2019 from 11.0% in the same period in 2018 due primarily to unfavorable weather conditions in the Transmission, Utilities, and Pipeline segments.

 

Segment Revenues

(in thousands, except %)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended June 30, 

 

 

 

2019

 

2018

 

 

 

 

 

 

% of

 

 

 

 

% of

 

 

 

 

 

 

Total

 

 

 

 

Total

 

Segment

    

Revenue

    

Revenue

    

Revenue

    

Revenue

 

Power

 

$

172,170

 

21.8%

 

$

167,001

 

25.7%

 

Pipeline

 

 

137,243

 

17.4%

 

 

90,605

 

14.0%

 

Utilities

 

 

222,312

 

28.1%

 

 

228,852

 

35.3%

 

Transmission

 

 

135,354

 

17.1%

 

 

42,454

 

6.5%

 

Civil

 

 

122,850

 

15.6%

 

 

119,875

 

18.5%

 

Total

 

$

789,929

 

100.0%

 

$

648,787

 

100.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the six months ended June 30, 

 

 

 

2019

 

2018

 

 

 

 

 

 

% of

 

 

 

 

% of

 

 

 

 

 

 

Total

 

 

 

 

Total

 

Segment

    

Revenue

    

Revenue

    

Revenue

    

Revenue

 

Power

 

$

317,553

 

21.9%

 

$

333,556

 

28.9%

 

Pipeline

 

 

272,057

 

18.7%

 

 

148,188

 

12.9%

 

Utilities

 

 

368,518

 

25.4%

 

 

395,562

 

34.3%

 

Transmission

 

 

253,797

 

17.5%

 

 

42,454

 

3.7%

 

Civil

 

 

239,562

 

16.5%

 

 

233,146

 

20.2%

 

Total

 

$

1,451,487

 

100.0%

 

$

1,152,906

 

100.0%

 

 

 

 

 

Segment Gross Profit

(in thousands, except %)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended June 30, 

 

 

 

2019

 

2018

 

 

    

 

 

    

% of

    

 

 

    

% of

 

 

 

 

 

 

Segment

 

 

 

 

Segment

 

Segment

 

Gross Profit

 

Revenue

 

Gross Profit

 

Revenue

 

Power

 

$

23,167

 

13.5%

 

$

20,526

 

12.3%

 

Pipeline

 

 

11,531

 

8.4%

 

 

10,678

 

11.8%

 

Utilities

 

 

30,866

 

13.9%

 

 

34,564

 

15.1%

 

Transmission

 

 

10,200

 

7.5%

 

 

5,721

 

13.5%

 

Civil

 

 

4,767

 

3.9%

 

 

(70)

 

(0.1%)

 

Total

 

$

80,531

 

10.2%

 

$

71,419

 

11.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the six months ended June 30, 

 

 

 

2019

 

2018

 

 

    

 

 

    

% of

    

 

 

    

% of

 

 

 

 

 

 

Segment

 

 

 

 

Segment

 

Segment

 

Gross Profit

 

Revenue

 

Gross Profit

 

Revenue

 

Power

 

$

43,365

 

13.7%

 

$

44,597

 

13.4%

 

Pipeline

 

 

26,547

 

9.8%

 

 

18,569

 

12.5%

 

Utilities

 

 

39,107

 

10.6%

 

 

43,615

 

11.0%

 

Transmission

 

 

16,828

 

6.6%

 

 

5,721

 

13.5%

 

Civil

 

 

7,144

 

3.0%

 

 

3,477

 

1.5%

 

Total

 

$

132,991

 

9.2%

 

$

115,979

 

10.1%

 

 

Power, Industrial, & Engineering Segment (“Power”):  Revenue increased by $5.2 million, or 3.1%, for the three months ended June 30, 2019, compared to the same period in 2018. The increase is primarily due to a West Texas solar facility project that began in 2019 and revenue from the acquisition of Willbros in June of 2018. The overall increase was partially offset by the substantial completions of our Carlsbad joint venture project and a West Texas solar facility project in 2018 and lower revenue from a LNG plant project in the Northeast in 2019. Gross profit for the three months ended June 30, 2019, increased by $2.6 million, or 12.9% compared to the same period in 2018.  The increase is primarily due to higher revenue and margins. Gross profit as a percentage of revenue increased to 13.5% during the three months ended June 30, 2019, compared to 12.3% in the same period in 2018 primarily due to favorable margins realized by our solar project in 2019 as compared to 2018.

 

Pipeline & Underground Segment (“Pipeline”):  Revenue increased by $46.6 million, or 51.5%, for the three months ended June 30, 2019, compared to the same period in 2018. The increase is primarily due to increased pipeline maintenance, facility construction, and specialty services activity and progress on a major pipeline project in West Texas that began in June 2018.  Gross profit for the three months ended June 30, 2019 increased by $0.9 million, or 8.0%, compared to the same period in 2018 due to revenue growth, partially offset by lower margins. Gross profit as a percentage of revenue decreased to 8.4% during the three months ended June 30, 2019, compared to 11.8% in the same period in 2018 primarily due to unfavorable weather conditions on a West Texas pipeline project and the impact of a client delay on a project in Southern California.

 

Utilities & Distribution Segment (“Utilities”):   Revenue decreased by $6.5 million, or 2.9%, for the three months ended June 30, 2019, compared to the same period in 2018 primarily due to decreased activity with a major utility customer in California and unfavorable weather conditions experienced in the Midwest. Gross profit for the three months ended June 30, 2019 decreased by $3.7 million, or 10.7%, compared to the same period in 2018. The decrease is primarily due to lower revenue and margins from unfavorable weather conditions experienced in the Midwest. Gross profit as a percent of revenue decreased to 13.9% during the three months ended June 30, 2019, compared to 15.1%, in the same period in 2018 primarily due to a shift in the mix of work performed and unfavorable weather conditions experienced in the Midwest.

 

Transmission & Distribution Segment (“Transmission”): The Transmission segment was created in connection with the acquisition of Willbros in the second quarter of 2018. Revenue and gross profit for the three months ended June 30, 2018, represent results from June 1, 2018, the acquisition date, to June 30, 2018. Revenue increased by $92.9 million for the three months ended

 

 

 

June 30, 2019, compared to the same period in 2018 primarily due to incremental revenue from the acquisition of Willbros in June of 2018.  Gross profit for the three months ended June 30, 2019, increased by $4.5 million, due primarily to higher revenue, partially offset by lower margins. Gross profit as a percentage of revenue decreased to 7.5% during the three months ended June 30, 2019, compared to 13.5% in the same period in 2018 primarily due to a shift in the mix of work performed, unfavorable weather conditions experienced in 2019, and upfront costs to expand our operations.

 

Civil Segment (“Civil”):   Revenue increased by $3.0 million, or 2.5%, for the three months ended June 30, 2019, compared to the same period in 2018. The increase is primarily due to a project with a major refining customer that began in 2019 and progress on a port project and an ethylene plant project that began in 2018, partially offset by lower Texas Department of Transportation volumes. Gross profit increased by $4.8 million for the three months ended June 30, 2019, compared to the same period in 2018 primarily due to higher revenue and margins. Gross profit as a percentage of revenue increased to 3.9% during the three months ended June 30, 2019, compared to (0.1%) in the same period in 2018 due primarily to higher costs on an airport project in the second quarter of 2018.

 

OTHER INCOME STATEMENT INFORMATION

 

Selling, general and administrative (“SG&A”) expenses were $48.7 million during the three months ended June 30, 2019, an increase of $5.2 million, or 12.0%, compared to 2018 primarily due to $3.7 million of incremental expense from the Willbros acquisition and a $1.7 million increase in compensation related expenses, including discretionary incentive compensation. SG&A expense as a percentage of revenue decreased to 6.2% compared to 6.7% for the corresponding period in 2018 due to increased revenue.

 

Interest expense for the three months ended June 30, 2019 increased compared to the same period in 2018 due to higher average debt balances and weighted average interest rates in 2019. In addition, we had a $2.7 million unrealized loss on the change in the fair value of our interest rate swap agreement during the three months ended June 30, 2019.

 

The effective tax rate on income attributable to Primoris (excluding noncontrolling interests) was 29.0% for the three months ended June 30, 2019.  The rate differs from the U.S. federal statutory rate of 21.0% primarily due to state income taxes and nondeductible components of per diem expenses.

 

OUTLOOK

 

The Company reaffirms its estimate 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 June 30, 2019 (in millions)

 

Backlog Revenue

 

Segment

Fixed Backlog

 

MSA Backlog

 

Total Backlog

 

Recognition

 

Power

$

380

 

$

119

 

$

499

 

 

78%

 

Pipeline

 

784

 

 

82

 

 

866

 

 

32%

 

Utilities

 

49

 

 

734

 

 

783

 

 

100%

 

Transmission

 

28

 

 

445

 

 

473

 

 

100%

 

Civil

 

574

 

 

 2

 

 

576

 

 

71%

 

Total

$

1,815

 

$

1,382

 

$

3,197

 

 

73%

 

 

At June 30, 2019, Fixed Backlog was $1.82 billion, compared to $1.48 billion at December 31, 2018.

 

At June 30, 2019, MSA Backlog was $1.38 billion, compared to $1.28 billion at December 31, 2018.  During the second quarter of 2019, approximately $348 million of revenue was recognized from MSA projects, a 46% increase over second quarter 2018 MSA revenue.  MSA Backlog represents estimated MSA revenues for the next four quarters.

 

Total Backlog at June 30, 2019 was $3.20 billion, compared to $2.76 billion at December 31, 2018. 

 

 

 

 

Backlog, including estimated MSA revenue, 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, Executive Chairman and Chief Executive Officer; Tom McCormick, President; and Ken Dodgen, Executive Vice President and Chief Financial Officer, will host a conference call, Tuesday, August 6, 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 13693173, 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 larger publicly traded specialty contractors and infrastructure companies in the United States. Serving diverse end markets, Primoris provides a wide range of construction, specialty services, fabrication, maintenance, replacement, and engineering services to major public utilities, petrochemical companies, refiners, energy companies, municipalities, state departments of transportation, 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

 

Six Months Ended

 

 

 

June 30, 

 

June 30, 

 

 

    

2019

    

2018

    

2019

    

2018

 

Revenue

 

$

789,929

 

$

648,787

 

$

1,451,487

 

$

1,152,906

 

Cost of revenue

 

 

709,398

 

 

577,368

 

 

1,318,496

 

 

1,036,927

 

Gross profit

 

 

80,531

 

 

71,419

 

 

132,991

 

 

115,979

 

Selling, general and administrative expenses

 

 

48,719

 

 

43,489

 

 

91,650

 

 

80,445

 

Merger and related costs

 

 

 —

 

 

7,668

 

 

 —

 

 

9,363

 

Operating income

 

 

31,812

 

 

20,262

 

 

41,341

 

 

26,171

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange (loss) gain

 

 

(403)

 

 

1,256

 

 

(588)

 

 

1,513

 

Other income (expense), net

 

 

177

 

 

(771)

 

 

(193)

 

 

(783)

 

Interest income

 

 

219

 

 

340

 

 

568

 

 

612

 

Interest expense

 

 

(6,716)

 

 

(3,191)

 

 

(12,308)

 

 

(5,189)

 

Income before provision for income taxes

 

 

25,089

 

 

17,896

 

 

28,820

 

 

22,324

 

Provision for income taxes

 

 

(7,265)

 

 

(3,705)

 

 

(8,060)

 

 

(3,917)

 

Net income

 

 

17,824

 

 

14,191

 

 

20,760

 

 

18,407

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less net income attributable to noncontrolling interests

 

 

(37)

 

 

(2,476)

 

 

(1,026)

 

 

(6,004)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Primoris

 

$

17,787

 

$

11,715

 

$

19,734

 

$

12,403

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per common share

 

$

0.060

 

$

0.060

 

$

0.120

 

$

0.120

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.35

 

$

0.23

 

$

0.39

 

$

0.24

 

Diluted

 

$

0.35

 

$

0.23

 

$

0.39

 

$

0.24

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

50,912

 

 

51,531

 

 

50,841

 

 

51,505

 

Diluted

 

 

51,228

 

 

51,793

 

 

51,208

 

 

51,770

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

June 30, 

 

 

December 31, 

 

 

    

2019

    

2018

 

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

54,114

 

$

151,063

 

Accounts receivable, net

 

 

472,946

 

 

372,695

 

Contract assets

 

 

415,142

 

 

364,245

 

Prepaid expenses and other current assets

 

 

30,142

 

 

36,444

 

Total current assets

 

 

972,344

 

 

924,447

 

Property and equipment, net

 

 

377,147

 

 

375,884

 

Operating lease assets

 

 

179,000

 

 

 —

 

Deferred tax assets

 

 

903

 

 

1,457

 

Intangible assets, net

 

 

75,516

 

 

81,198

 

Goodwill

 

 

215,103

 

 

206,159

 

Other long-term assets

 

 

5,198

 

 

5,002

 

Total assets

 

$

1,825,211

 

$

1,594,147

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

 

$

218,263

 

$

249,217

 

Contract liabilities

 

 

197,785

 

 

189,539

 

Accrued liabilities

 

 

203,235

 

 

117,527

 

Dividends payable

 

 

3,058

 

 

3,043

 

Current portion of long-term debt

 

 

64,651

 

 

62,488

 

Total current liabilities

 

 

686,992

 

 

621,814

 

Long-term debt, net of current portion

 

 

347,397

 

 

305,669

 

Noncurrent operating lease liabilities, net of current portion

 

 

124,894

 

 

 —

 

Deferred tax liabilities

 

 

3,610

 

 

8,166

 

Other long-term liabilities

 

 

41,453

 

 

51,515

 

Total liabilities

 

 

1,204,346

 

 

987,164

 

Commitments and contingencies

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

Common stock

 

 

 5

 

 

 5

 

Additional paid-in capital

 

 

146,064

 

 

144,048

 

Retained earnings

 

 

474,684

 

 

461,075

 

Accumulated other comprehensive loss

 

 

(172)

 

 

(908)

 

Noncontrolling interest

 

 

284

 

 

2,763

 

Total stockholders’ equity

 

 

620,865

 

 

606,983

 

Total liabilities and stockholders’ equity

 

$

1,825,211

 

$

1,594,147

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

June 30, 

 

 

    

2019

    

2018

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income

 

$

20,760

 

$

18,407

 

Adjustments to reconcile net income to net cash used in operating activities (net of effect of acquisitions):

 

 

 

 

 

 

 

Depreciation

 

 

37,710

 

 

30,014

 

Amortization of intangible assets

 

 

5,682

 

 

5,161

 

Stock-based compensation expense

 

 

858

 

 

430

 

Gain on sale of property and equipment

 

 

(4,713)

 

 

(1,580)

 

Other non-cash items

 

 

160

 

 

68

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

 

(97,964)

 

 

18,331

 

Contract assets

 

 

(51,048)

 

 

(64,074)

 

Other current assets

 

 

5,309

 

 

(6,036)

 

Other long-term assets

 

 

(137)

 

 

(499)

 

Accounts payable

 

 

(31,405)

 

 

2,115

 

Contract liabilities

 

 

4,205

 

 

(18,220)

 

Operating lease assets and liabilities, net

 

 

(918)

 

 

 —

 

Accrued liabilities

 

 

13,481

 

 

13,647

 

Other long-term liabilities

 

 

1,496

 

 

1,520

 

Net cash used in operating activities

 

 

(96,524)

 

 

(716)

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(56,907)

 

 

(46,107)

 

Issuance of a note receivable

 

 

 —

 

 

(15,000)

 

Proceeds from a note receivable

 

 

 —

 

 

15,000

 

Proceeds from sale of property and equipment

 

 

21,196

 

 

5,811

 

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

 

 

 —

 

 

(111,030)

 

Net cash used in investing activities

 

 

(35,711)

 

 

(151,326)

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Borrowings under revolving line of credit

 

 

140,000

 

 

170,000

 

Payments on revolving line of credit

 

 

(85,000)

 

 

 —

 

Proceeds from issuance of long-term debt

 

 

23,105

 

 

19,467

 

Repayment of long-term debt

 

 

(34,320)

 

 

(28,001)

 

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

 

 

1,804

 

 

1,498

 

Payment of taxes on conversion of Restricted Stock Units

 

 

(1,519)

 

 

 —

 

Cash distribution to noncontrolling interest holders

 

 

(3,505)

 

 

 —

 

Dividends paid

 

 

(6,094)

 

 

(6,179)

 

Other

 

 

(39)

 

 

(47)

 

Net cash provided by financing activities

 

 

34,432

 

 

156,738

 

Effect of exchange rate changes on cash and cash equivalents

 

 

854

 

 

(185)

 

Net change in cash and cash equivalents

 

 

(96,949)

 

 

4,511

 

Cash and cash equivalents at beginning of the period

 

 

151,063

 

 

170,385

 

Cash and cash equivalents at end of the period

 

$

54,114

 

$

174,896