Primoris Services Corp (Form: 8-K, Received: 03/02/2012 16:32:53)
0001361538false00013615382019-10-312019-10-31

 

 

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

 

October 31, 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 November 4, 2019, Primoris Services Corporation, a Delaware corporation (“Primoris”, the “Company”) issued a press release announcing its financial performance for the third quarter ended September 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 8.01            Other Events.

Declaration of Cash Dividend to Stockholders

On October 31, 2019, the Board of Directors declared a cash dividend of $0.06 per common share for stockholders of record as of December 31, 2019, payable on or about January 15, 2020.

Item 9.01.Financial Statements and Exhibits.

(d)   Exhibits.

 

Exhibit No.

 

Description

 

 

 

99.1

Press release dated November 4, 2019

104

Cover Page Interactive Data File – The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

 

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: November 4, 2019

 

By:

/s/ Kenneth M. Dodgen

 

 

 

Kenneth M. Dodgen

 

 

 

Executive Vice President, Chief Financial Officer

3

XBRL-Only Content Section

4

prim_Exhibit_99_1

 

 

Exhibit 99.1

PSC_Primoris 300

 

 

PRIMORIS SERVICES CORPORATION ANNOUNCES 2019 THIRD QUARTER FINANCIAL RESULTS

 

Ø

Board of Directors Declares $0.06 Per Share Cash Dividend

Ø

Authorizes $50 Million Share Repurchase Plan

 

Financial Highlights

 

·

2019 Q3 revenue of $865.1 million, compared to $908.9 million in 2018 Q3

·

Record 2019 Q3 net income attributable to Primoris of $35.6 million, or $0.70 per fully diluted share

o

Compared to $32.7 million, or $0.63 per fully diluted share, in 2018 Q3, a 9.0% increase

·

2019 Q3 SG&A 5.8% of revenue, compared to 2018 Q3 5.7% of revenue

·

Total Backlog of $3.2 billion at September 30, 2019, a 16.3% increase over December 31, 2018

·

Successful resolution of various claims in the Civil segment

·

Strong Cash Flows from Operations

·

Reaffirmed 2019 EPS Guidance

 

Dallas, TX – November 4, 2019–  Primoris Services Corporation (NASDAQ GS: PRIM) (“Primoris” or “Company”) today announced financial results for its third quarter ended September 30, 2019.

 

The Company also announced that on October 31, 2019 its Board of Directors authorized a $50 million share repurchase plan and declared a $0.06 per share cash dividend to stockholders of record on December 31, 2019, payable on or about January 15, 2020. 

 

David King, Executive Chairman and Chief Executive Officer of Primoris, commented, “I am pleased to say that Primoris had another great quarter, with strong project execution and continued cost control leading to a record net income.  The lack of major storm repair work and project delays created a slight headwind compared to last year, but it was more than offset by benefits from the partial resolution of outstanding claims.  Over the past year we have seen our backlog grow 19%, growing both our Fixed and MSA backlog, thanks to the combined efforts of our dedicated sales and operations teams.  As expected, we saw a significant positive swing in our operating cash flow in the third quarter, allowing us to continue reducing our debt levels while maintaining a robust capital expenditure program, actively evaluating additional acquisition opportunities, and initiating a share repurchase program.”

 

Mr. King continued, “Primoris’ diverse end markets remain strong.  The forces driving demand for our utility work are creating long-term opportunities to improve our country’s electric and natural gas infrastructure.  The bidding activity in our renewables, petrochemical, and LNG end markets indicate strength in those markets as we head into 2020, and the pipeline market continues to provide multiple avenues for growth, notwithstanding individual project delays.  We expect our momentum to continue in the fourth quarter and well into 2020, delivering positive results for our customers and shareholders.”

 

2019 THIRD QUARTER RESULTS OVERVIEW

 

Revenue was $865.1 million for the three months ended September 30, 2019, a decrease of $43.8 million, or 4.8%, compared to the same period in 2018. The decrease was primarily due to lower revenue in our Pipeline segment, partially offset by growth in our Power and Utilities segments.  Gross profit was $108.4 million for the three months ended September 30, 2019, an increase of $1.9 million, or 1.8%, compared to the same period in 2018.  The increase was primarily due to increases in our Civil and Utilities segments, partially offset by lower gross profit in our Power, Transmission, and Pipeline segments. Gross profit as a percentage of revenue increased to 12.5% in the three months ended September 30, 2019 from 11.7% in the same period in 2018 due primarily to

 

a favorable impact from partial claims resolution in our Civil segment associated with the Belton area projects, partially offset by higher costs associated with two industrial projects in our Power segment.

 

Segment Revenue

(in thousands, except %)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended September 30, 

 

 

 

2019

 

2018

 

 

 

 

 

 

% of

 

 

 

 

% of

 

 

 

 

 

 

Total

 

 

 

 

Total

 

Segment

    

Revenue

    

Revenue

    

Revenue

    

Revenue

 

Power

 

$

200,657

 

23.2%

 

$

181,822

 

20.0%

 

Pipeline

 

 

133,590

 

15.4%

 

 

213,073

 

23.4%

 

Utilities

 

 

281,561

 

32.6%

 

 

269,652

 

29.7%

 

Transmission

 

 

128,784

 

14.9%

 

 

121,526

 

13.4%

 

Civil

 

 

120,472

 

13.9%

 

 

122,829

 

13.5%

 

Total

 

$

865,064

 

100.0%

 

$

908,902

 

100.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the nine months ended September 30, 

 

 

 

2019

 

2018

 

 

 

 

 

 

% of

 

 

 

 

% of

 

 

 

 

 

 

Total

 

 

 

 

Total

 

Segment

    

Revenue

    

Revenue

    

Revenue

    

Revenue

 

Power

 

$

518,210

 

22.4%

 

$

515,378

 

25.0%

 

Pipeline

 

 

405,647

 

17.5%

 

 

361,261

 

17.5%

 

Utilities

 

 

650,079

 

28.1%

 

 

665,214

 

32.3%

 

Transmission

 

 

382,581

 

16.5%

 

 

163,980

 

7.9%

 

Civil

 

 

360,034

 

15.5%

 

 

355,975

 

17.3%

 

Total

 

$

2,316,551

 

100.0%

 

$

2,061,808

 

100.0%

 

 

Segment Gross Profit

(in thousands, except %)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended September 30, 

 

 

 

2019

 

2018

 

 

    

 

 

    

% of

    

 

 

    

% of

 

 

 

 

 

 

Segment

 

 

 

 

Segment

 

Segment

 

Gross Profit

 

Revenue

 

Gross Profit

 

Revenue

 

Power

 

$

15,525

 

7.7%

 

$

32,077

 

17.6%

 

Pipeline

 

 

19,657

 

14.7%

 

 

24,999

 

11.7%

 

Utilities

 

 

48,892

 

17.4%

 

 

35,348

 

13.1%

 

Transmission

 

 

4,836

 

3.8%

 

 

13,958

 

11.5%

 

Civil

 

 

19,511

 

16.2%

 

 

123

 

0.1%

 

Total

 

$

108,421

 

12.5%

 

$

106,505

 

11.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the nine months ended September 30, 

 

 

 

2019

 

2018

 

 

    

 

 

    

% of

    

 

 

    

% of

 

 

 

 

 

 

Segment

 

 

 

 

Segment

 

Segment

 

Gross Profit

 

Revenue

 

Gross Profit

 

Revenue

 

Power

 

$

58,890

 

11.4%

 

$

76,674

 

14.9%

 

Pipeline

 

 

46,204

 

11.4%

 

 

43,568

 

12.1%

 

Utilities

 

 

87,999

 

13.5%

 

 

78,963

 

11.9%

 

Transmission

 

 

21,664

 

5.7%

 

 

19,679

 

12.0%

 

Civil

 

 

26,655

 

7.4%

 

 

3,600

 

1.0%

 

Total

 

$

241,412

 

10.4%

 

$

222,484

 

10.8%

 

 

 

 

 

Power, Industrial, & Engineering Segment (“Power”):  Revenue increased by $18.8 million, or 10.4%, for the three months ended September 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 a carbon monoxide and hydrogen plant project that began in 2019. The overall increase was partially offset by the substantial completion of refinery projects in Southern California and our Carlsbad joint venture project in 2018.  Gross profit for the three months ended September 30, 2019, decreased by $16.6 million, or 51.6% compared to the same period in 2018.  The decrease is primarily due to a partial settlement in the third quarter of 2018 of a disputed receivable and higher costs associated with two industrial projects in the third quarter of 2019. Gross profit as a percentage of revenue decreased to 7.7% during the three months ended September 30, 2019, compared to 17.6% in the same period in 2018, primarily due to the reasons above and a strong performance and favorable margins realized by our Carlsbad joint venture project in 2018.

 

Pipeline & Underground Segment (“Pipeline”):  Revenue decreased by $79.5 million, or 37.3%, for the three months ended September 30, 2019, compared to the same period in 2018. The decrease is primarily due to the substantial completion of a major pipeline project in West Texas in the second quarter of 2019 and reduced activity on a major pipeline project in the Mid-Atlantic. These amounts were partially offset by a pipeline project in the Pacific Northwest that began in 2019.  Gross profit for the three months ended September 30, 2019 decreased by $5.3 million, or 21.4%, compared to the same period in 2018 due to lower revenue, partially offset by higher margins. Gross profit as a percentage of revenue increased to 14.7% during the three months ended September 30, 2019, compared to 11.7% in the same period in 2018, primarily due to the favorable impact from the closeout of multiple pipeline projects in 2019.

 

Utilities & Distribution Segment (“Utilities”):   Revenue increased by $11.9 million, or 4.4%, for the three months ended September 30, 2019, compared to the same period in 2018, primarily due to increased activity with two major utility customers in the Midwest and a utility customer in Texas, partially offset by decreased activity with a major utility customer in California.  Gross profit for the three months ended September 30, 2019, increased by $13.5 million, or 38.3%, compared to the same period in 2018, primarily due to higher revenue and margins. Gross profit as a percent of revenue increased to 17.4% during the three months ended September 30, 2019, compared to 13.1%, in the same period in 2018, primarily due to an increase in higher margin projects in 2019.

 

Transmission & Distribution Segment (“Transmission”): The Transmission segment was created in connection with the acquisition of Willbros in the second quarter of 2018. Revenue increased by $7.3 million, or 6.0%, for the three months ended September 30, 2019, compared to the same period in 2018 primarily due to increased activity with a major utility customer in the Midwest and Southeast, partially offset by the substantial completion of a major project in the Southeast in 2018.  Gross profit for the three months ended September 30, 2019, decreased by $9.1 million, or 65.4%, due primarily to lower margins, partially offset by higher revenue.  Gross profit as a percentage of revenue decreased to 3.8% during the three months ended September 30, 2019, compared to 11.5% in the same period in 2018, primarily due to a reduction in higher margin storm work, upfront costs to expand our operations, and relocation costs to move crews in 2019, along with strong performance on a major project in the Southeast in 2018.

 

Civil Segment (“Civil”):   Revenue decreased by $2.4 million, or 1.9%, for the three months ended September 30, 2019, compared to the same period in 2018. The decrease is primarily due to the substantial completion of an ethylene plant project in the second quarter of 2019 and lower Texas Department of Transportation volumes. These amounts are partially offset by a methanol plant project and a project with a major refining customer that both began in 2019 and higher Louisiana Department of Transportation volumes.  Gross profit increased by $19.4 million for the three months ended September 30, 2019, compared to the same period in 2018, primarily due to a favorable impact from the resolution of claims associated with three of the Belton area projects in 2019 and increased profit on Louisiana DOT projects. Gross profit as a percentage of revenue increased to 16.2% during the three months ended September 30, 2019, compared to 0.1% in the same period in 2018, due primarily to the reasons noted above.

 

OTHER INCOME STATEMENT INFORMATION

 

Selling, general and administrative (“SG&A”) expenses were $49.8 million during the three months ended September 30, 2019, a decrease of $1.8 million, or 3.4%, compared to 2018 primarily due to a $2.0 million decrease in compensation related expenses. SG&A expense as a percentage of revenue was consistent with the same period in 2018.

 

Interest expense for the three months ended September 30, 2019, decreased compared to the same period in 2018, due primarily to $2.3 million of additional interest during the three months ended September 30, 2018, related to the early extinguishment of senior

 

 

 

notes, partially offset by a $0.6 million unrealized loss on the change in the fair value of our interest rate swap agreement during the three months ended September 30, 2019.

 

The effective tax rate on income attributable to Primoris (excluding noncontrolling interests) was 29.0% for the nine months ended September 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 September 30, 2019 (in millions)

 

Backlog Revenue

 

Segment

Fixed Backlog

 

MSA Backlog

 

Total Backlog

 

Recognition

 

Power

$

400

 

$

112

 

$

512

 

 

89%

 

Pipeline

 

712

 

 

142

 

 

854

 

 

67%

 

Utilities

 

57

 

 

708

 

 

765

 

 

100%

 

Transmission

 

24

 

 

446

 

 

470

 

 

100%

 

Civil

 

604

 

 

 6

 

 

610

 

 

67%

 

Total

$

1,797

 

$

1,414

 

$

3,211

 

 

83%

 

 

At September 30, 2019, Fixed Backlog was $1.80 billion, compared to $1.48 billion at December 31, 2018.

 

At September 30, 2019, MSA Backlog was $1.41 billion, compared to $1.28 billion at December 31, 2018.  During the third quarter of 2019, approximately $367 million of revenue was recognized from MSA projects.  MSA Backlog represents estimated MSA revenue for the next four quarters.

 

Total Backlog at September 30, 2019 was $3.21 billion, compared to $2.76 billion at December 31, 2018. 

 

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.

 

SHARE REPURCHASE PLAN

 

The Company’s Board of Directors has authorized a share repurchase program under which Primoris may, from time to time and depending on market conditions, share price and other factors, acquire shares of its common stock on the open market or in privately negotiated transactions up to an aggregate purchase price of $50 million.  The share repurchase program expires December 31, 2020.

 

CONFERENCE CALL

 

David King, Chairman and Chief Executive Officer; Tom McCormick, President; and Ken Dodgen, Executive Vice President and Chief Financial Officer, will host a conference call, Monday, November 4, 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 13695817, 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

 

Nine Months Ended

 

 

 

September 30, 

 

September 30, 

 

 

    

2019

    

2018

    

2019

    

2018

 

Revenue

 

$

865,064

 

$

908,902

 

$

2,316,551

 

$

2,061,808

 

Cost of revenue

 

 

756,643

 

 

802,397

 

 

2,075,139

 

 

1,839,324

 

Gross profit

 

 

108,421

 

 

106,505

 

 

241,412

 

 

222,484

 

Selling, general and administrative expenses

 

 

49,827

 

 

51,604

 

 

141,477

 

 

132,049

 

Merger and related costs

 

 

 —

 

 

3,827

 

 

 —

 

 

13,190

 

Operating income

 

 

58,594

 

 

51,074

 

 

99,935

 

 

77,245

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange (loss) gain

 

 

(136)

 

 

(69)

 

 

(724)

 

 

1,444

 

Other income (expense), net

 

 

(2,928)

 

 

32

 

 

(3,121)

 

 

(751)

 

Interest income

 

 

42

 

 

932

 

 

610

 

 

1,544

 

Interest expense

 

 

(5,186)

 

 

(6,448)

 

 

(17,494)

 

 

(11,637)

 

Income before provision for income taxes

 

 

50,386

 

 

45,521

 

 

79,206

 

 

67,845

 

Provision for income taxes

 

 

(14,560)

 

 

(10,716)

 

 

(22,620)

 

 

(14,633)

 

Net income

 

 

35,826

 

 

34,805

 

 

56,586

 

 

53,212

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less net income attributable to noncontrolling interests

 

 

(178)

 

 

(2,114)

 

 

(1,204)

 

 

(8,118)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Primoris

 

$

35,648

 

$

32,691

 

$

55,382

 

$

45,094

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per common share

 

$

0.06

 

$

0.06

 

$

0.18

 

$

0.18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.70

 

$

0.64

 

$

1.09

 

$

0.88

 

Diluted

 

$

0.70

 

$

0.63

 

$

1.08

 

$

0.87

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

50,976

 

 

51,403

 

 

50,887

 

 

51,471

 

Diluted

 

 

51,215

 

 

51,735

 

 

51,210

 

 

51,760

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

September 30, 

 

 

December 31, 

 

 

    

2019

    

2018

 

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

43,837

 

$

151,063

 

Accounts receivable, net

 

 

551,543

 

 

372,695

 

Contract assets

 

 

331,910

 

 

364,245

 

Prepaid expenses and other current assets

 

 

34,222

 

 

36,444

 

Total current assets

 

 

961,512

 

 

924,447

 

Property and equipment, net

 

 

379,739

 

 

375,884

 

Operating lease assets

 

 

228,100

 

 

 —

 

Deferred tax assets

 

 

888

 

 

1,457

 

Intangible assets, net

 

 

72,581

 

 

81,198

 

Goodwill

 

 

215,103

 

 

206,159

 

Other long-term assets

 

 

11,046

 

 

5,002

 

Total assets

 

$

1,868,969

 

$

1,594,147

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

 

$

219,792

 

$

249,217

 

Contract liabilities

 

 

189,664

 

 

189,539

 

Accrued liabilities

 

 

219,472

 

 

117,527

 

Dividends payable

 

 

3,059

 

 

3,043

 

Current portion of long-term debt

 

 

60,104

 

 

62,488

 

Total current liabilities

 

 

692,091

 

 

621,814

 

Long-term debt, net of current portion

 

 

307,397

 

 

305,669

 

Noncurrent operating lease liabilities, net of current portion

 

 

162,418

 

 

 —

 

Deferred tax liabilities

 

 

3,611

 

 

8,166

 

Other long-term liabilities

 

 

49,289

 

 

51,515

 

Total liabilities

 

 

1,214,806

 

 

987,164

 

Commitments and contingencies

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

Common stock

 

 

 5

 

 

 5

 

Additional paid-in capital

 

 

146,765

 

 

144,048

 

Retained earnings

 

 

507,269

 

 

461,075

 

Accumulated other comprehensive loss

 

 

(338)

 

 

(908)

 

Noncontrolling interest

 

 

462

 

 

2,763

 

Total stockholders’ equity

 

 

654,163

 

 

606,983

 

Total liabilities and stockholders’ equity

 

$

1,868,969

 

$

1,594,147

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

 

September 30, 

 

 

    

2019

    

2018

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income

 

$

56,586

 

$

53,212

 

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

 

 

 

 

 

 

 

Depreciation

 

 

55,936

 

 

47,708

 

Amortization of intangible assets

 

 

8,617

 

 

8,287

 

Stock-based compensation expense

 

 

1,218

 

 

748

 

Gain on sale of property and equipment

 

 

(7,017)

 

 

(3,212)

 

Other non-cash items

 

 

240

 

 

180

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

 

(177,942)

 

 

(78,819)

 

Contract assets

 

 

32,274

 

 

(85,817)

 

Other current assets

 

 

1,219

 

 

11,061

 

Other long-term assets

 

 

167

 

 

(957)

 

Accounts payable

 

 

(29,757)

 

 

24,099

 

Contract liabilities

 

 

(3,915)

 

 

(11,061)

 

Operating lease assets and liabilities, net

 

 

(1,489)

 

 

 —

 

Accrued liabilities

 

 

17,662

 

 

16,400

 

Other long-term liabilities

 

 

6,085

 

 

5,298

 

Net cash used in operating activities

 

 

(40,116)

 

 

(12,873)

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(78,255)

 

 

(80,766)

 

Issuance of a note receivable

 

 

 —

 

 

(15,000)

 

Proceeds from a note receivable

 

 

 —

 

 

15,000

 

Proceeds from sale of property and equipment

 

 

24,393

 

 

9,655

 

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

 

 

 —

 

 

(111,030)

 

Net cash used in investing activities

 

 

(53,862)

 

 

(182,141)

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Borrowings under revolving line of credit

 

 

212,880

 

 

170,000

 

Payments on revolving line of credit

 

 

(212,880)

 

 

(170,000)

 

Proceeds from issuance of long-term debt

 

 

55,008

 

 

239,467

 

Repayment of long-term debt

 

 

(55,824)

 

 

(127,291)

 

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)

 

 

 —

 

Payment of contingent earnout liability

 

 

 —

 

 

(1,200)

 

Cash distribution to noncontrolling interest holders

 

 

(3,505)

 

 

(8,750)

 

Repurchase of common stock

 

 

 —

 

 

(8,479)

 

Dividends paid

 

 

(9,152)

 

 

(9,271)

 

Other

 

 

(328)

 

 

(1,113)

 

Net cash (used in) provided by financing activities

 

 

(13,516)

 

 

84,861

 

Effect of exchange rate changes on cash and cash equivalents

 

 

268

 

 

(193)

 

Net change in cash and cash equivalents

 

 

(107,226)

 

 

(110,346)

 

Cash and cash equivalents at beginning of the period

 

 

151,063

 

 

170,385

 

Cash and cash equivalents at end of the period

 

$

43,837

 

$

60,039