Primoris Services Corporation Reports Second Quarter 2022 Results
Primoris Services Corporation (NASDAQ GS: PRIM) reported record revenue of $1,022.9 million for Q2 2022, driven primarily by its Utilities and Energy/Renewables segments, which contributed over 94% of total revenue. Net income rose to $50.2 million, leading to an EPS of $0.93. The company achieved a record backlog of $4.572 billion, reflecting a 59% year-over-year increase. However, gross profit declined to $92.1 million, reducing margins due to rising costs in the Pipeline segment.
The outlook for 2022 anticipates increased net income per share of $2.40 to $2.60.
- Record revenue of $1,022.9 million for Q2 2022, a $141.3 million increase from 2021.
- Net income rose to $50.2 million compared to $36.3 million in 2021.
- Achieved a record backlog of $4.572 billion, a 59% increase year-over-year.
- Acquisition of PLH Group enhances exposure to higher-margin utility markets.
- Raised financial guidance for 2022 with net income per share expected between $2.40 and $2.60.
- Gross profit decreased by $20.9 million to $92.1 million, with margins dropping to 9.0% from 12.8% in the prior year.
- Pipeline segment revenue fell by 50% year-over-year, contributing significantly to gross profit decline.
- Adjusted EBITDA dropped to $56.1 million from $83.4 million in Q2 2021.
For the second quarter 2022, Primoris reported the following(1):
-
Record revenue of
$1,022.9 million -
Net income of
$50.2 million -
Fully diluted earnings per share (“EPS”) of
$0.93 -
Adjusted net income of
$26.1 million -
Adjusted diluted earnings per share (“Adjusted EPS”) of
$0.48 -
Adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”) of
$56.1 million -
Record Backlog of
$4.57 2 billion -
Gain of
$40.1 million
2022 Year-to-Date Highlights(1):
-
Revenue of
$1,807.3 million -
Net income of
$48.5 million -
Fully diluted EPS of
$0.90 -
Adjusted net income of
$26.6 million -
Adjusted EPS of
$0.49 -
Adjusted EBITDA of
$78.8 million -
Maintained quarterly dividend of
$0.06
(1) |
Please refer to “Non-GAAP Measures” and Schedules 1, 2 and 3 for the definitions and reconciliations of our Non-GAAP financial measures, including “Adjusted Net Income,” “Adjusted EPS” and “Adjusted EBITDA.” |
“We delivered record revenues and significantly increased total backlog in the second quarter, supported by continued strength in our utility and energy/renewables segments. Over 94 percent of our second quarter revenue was driven by these two segments, underscoring the work we have done to expand our presence in growing markets with strong secular tailwinds, which has helped offset declining volumes in our pipeline segment,” said
“During the quarter, we also announced our acquisition of
“While we have faced operational challenges associated with fuel and labor inflation, our teams have done a great job of re-negotiating rates and leveraging commercial discipline to mitigate the impact of these factors going forward,” he added. “Our robust performance this quarter gives us confidence in the long-term strength of our business strategy, and we look forward to continuing this momentum into the latter part of 2022.”
Second Quarter 2022 Results Overview
Revenue was
This press release includes Non-GAAP financial measures. The Company believes these measures enable investors, analysts and management to evaluate Primoris’ performance excluding the effects of certain items that management believes impact the comparability of operating results between reporting periods. In addition, management believes these measures are useful in comparing the Company’s operating results with those of its competitors. Please refer to “Non-GAAP Measures” and Schedules 1, 2 and 3 for the definitions and reconciliations of the Company’s Non-GAAP financial measures, including “Adjusted Net Income,” “Adjusted EPS” and “Adjusted EBITDA”.
During the second quarter of 2022, net income was
The Company’s three segments are: Utilities, Energy/Renewables and Pipeline Services (“Pipeline”). Revenue and gross profit for the segments for the three and six months ended
Segment Revenue (in thousands, except %) (unaudited) |
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For the three months ended |
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2022 |
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2021 |
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% of |
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% of |
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Total |
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Total |
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Segment |
|
Revenue |
|
Revenue |
|
Revenue |
|
Revenue |
||||
Utilities |
|
$ |
476,121 |
|
46.5 |
% |
|
$ |
425,421 |
|
48.3 |
% |
Energy/Renewables |
|
|
486,349 |
|
47.6 |
% |
|
|
335,010 |
|
38.0 |
% |
Pipeline |
|
|
60,478 |
|
5.9 |
% |
|
|
121,179 |
|
13.7 |
% |
Total |
|
$ |
1,022,948 |
|
100.0 |
% |
|
$ |
881,610 |
|
100.0 |
% |
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For the six months ended |
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2022 |
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2021 |
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% of |
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% of |
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Total |
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Total |
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Segment |
|
Revenue |
|
Revenue |
|
Revenue |
|
Revenue |
||||
Utilities |
|
$ |
834,849 |
|
46.2 |
% |
|
$ |
760,433 |
|
44.7 |
% |
Energy/Renewables |
|
|
845,399 |
|
46.8 |
% |
|
|
687,874 |
|
40.5 |
% |
Pipeline |
|
|
127,085 |
|
7.0 |
% |
|
|
251,632 |
|
14.8 |
% |
Total |
|
$ |
1,807,333 |
|
100.0 |
% |
|
$ |
1,699,939 |
|
100.0 |
% |
Segment Gross Profit (in thousands, except %) (unaudited) |
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For the three months ended |
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2022 |
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2021 |
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% of |
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% of |
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Segment |
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|
Segment |
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|||
Segment |
|
Gross Profit |
|
Revenue |
|
Gross Profit |
|
Revenue |
|
|||||
Utilities |
|
$ |
40,356 |
|
|
8.5 |
% |
|
$ |
48,849 |
|
11.5 |
% |
|
Energy/Renewables |
|
|
53,143 |
|
|
10.9 |
% |
|
|
33,232 |
|
9.9 |
% |
|
Pipeline |
|
|
(1,390 |
) |
|
(2.3 |
%) |
|
|
30,945 |
|
25.5 |
% |
|
Total |
|
$ |
92,109 |
|
|
9.0 |
% |
|
$ |
113,026 |
|
12.8 |
% |
|
|
|
|
|
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For the six months ended |
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2022 |
|
2021 |
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% of |
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% of |
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Segment |
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|
Segment |
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|||
Segment |
|
Gross Profit |
|
Revenue |
|
Gross Profit |
|
Revenue |
|
|||||
Utilities |
|
$ |
62,709 |
|
|
7.5 |
% |
|
$ |
70,565 |
|
9.3 |
% |
|
Energy/Renewables |
|
|
93,074 |
|
|
11.0 |
% |
|
|
75,904 |
|
11.0 |
% |
|
Pipeline |
|
|
(7,189 |
) |
|
(5.7 |
%) |
|
|
46,738 |
|
18.6 |
% |
|
Total |
|
$ |
148,594 |
|
|
8.2 |
% |
|
$ |
193,207 |
|
11.4 |
% |
|
Utilities Segment (“Utilities”): Revenue increased by
Energy and Renewables Segment (“Energy/Renewables”): Revenue increased by
Pipeline Services (“Pipeline”): Revenue decreased by
Other Income Statement Information
Selling, general and administrative (“SG&A”) expenses were
Interest expense, net for the three months ended
The Company recorded an income tax expense for the three months ended
Sale and Leaseback Transaction
The company completed a sale and leaseback transaction of land and buildings in
Outlook
The Company is raising its estimates for the year ending
The Company is targeting SG&A expense as a percentage of revenue in the low-to-mid six percent range for the 2022 calendar year. The Company’s targeted gross margins by segment are as follows: Utilities in the range of 10 to 13 percent; Energy/Renewables in the range of 9 to 12 percent; and Pipeline in the range of 1 to 3 percent for 2022. The Company expects its effective tax rate for 2022 to be approximately 20.5 percent but may vary depending on the mix of states in which the Company operates.
During the three months ended
The guidance provided above constitutes forward-looking statements, which are based on current economic conditions and estimates, and the Company does not include other potential impacts, such as changes in accounting or unusual items. Supplemental information relating to the Company’s financial outlook is posted in the Investor Relations section of the Company’s website at www.primoriscorp.com.
Backlog (in millions) |
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Backlog at |
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Segment |
|
Fixed Backlog |
|
MSA Backlog |
|
Total Backlog |
|||
Utilities |
|
$ |
12 |
|
$ |
1,547 |
|
$ |
1,559 |
Energy/Renewables |
|
|
2,720 |
|
|
159 |
|
|
2,879 |
Pipeline |
|
|
76 |
|
|
58 |
|
|
134 |
Total |
|
$ |
2,808 |
|
$ |
1,764 |
|
$ |
4,572 |
At
Backlog, including estimated MSA revenue, should not be considered a comprehensive indicator of future revenue. Revenue from certain projects where scope, and therefore contract value, is not adequately defined, is not included in Fixed Backlog. At any time, any project may be cancelled at the convenience of the Company’s customers.
Liquidity and Capital Resources
As of
Dividend
The Company also announced that on
The Company has paid consecutive quarterly cash dividends since 2008, and currently expects that comparable cash dividends will continue to be paid for the foreseeable future. The declaration and payment of future dividends is contingent upon the Company’s revenue and earnings, capital requirements, and general financial conditions, as well as contractual restrictions and other considerations deemed to be relevant by the Board of Directors.
Share Purchase Program
In
Response to the COVID-19 Pandemic
The Company continues to take steps to protect its employees’ health and safety during the COVID-19 pandemic. Primoris has a written corporate COVID-19 Plan in place, as well as Business Continuity Plans (by business unit and segment), based on guidelines from the
Conference Call and Webcast
As previously announced, management will host a teleconference call on
Investors and analysts are invited to participate by phone at 1-888-330-3428, or internationally at 1-646-960-0679 (access code: 7581464) or via the Internet at www.primoriscorp.com. A replay of the call will be available on the Company’s website or by phone at 1-800-770-2030, or internationally at 1-647-362-9199 (access code: 7581464), for a seven-day period following the call.
Presentation slides to accompany the conference call are available for download in the Investor Relations section of Primoris’ website at www.primoriscorp.com. Once at the Investor Relations section, please click on “Events & Presentations.”
Non-GAAP Measures
This press release contains certain financial measures that are not recognized under generally accepted accounting principles in
About Primoris
Forward Looking Statements
This press release contains certain forward-looking statements, including the Company’s outlook, that reflect, when made, the Company’s expectations or beliefs concerning future events that involve risks and uncertainties, including with regard to the Company’s future performance. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipates”, “believes”, “could”, “estimates”, “expects”, “intends”, “may”, “plans”, “potential”, “predicts”, “projects”, “should”, “will”, “would” or similar expressions. Forward-looking statements include information concerning the possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of regulation and the economy, generally. Forward-looking statements involve known and unknown risks, uncertainties, and other factors, which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results may differ materially as a result of a number of factors, including, among other things, customer timing, project duration, weather, and general economic conditions; changes in the mix of customers, projects, contracts and business; regional or national and/or general economic conditions and demand for the Company’s services; macroeconomic impacts arising from the long duration of the COVID-19 pandemic, including labor shortages and supply chain disruptions; price, volatility, and expectations of future prices of oil, natural gas, and natural gas liquids; variations and changes in the margins of projects performed during any particular quarter; increases in the costs to perform services caused by changing conditions; the termination, or expiration of existing agreements or contracts; the budgetary spending patterns of customers; inflation and other increases in construction costs that the Company may be unable to pass through to customers; cost or schedule overruns on fixed-price contracts; availability of qualified labor for specific projects; changes in bonding requirements and bonding availability for existing and new agreements; the need and availability of letters of credit; costs incurred to support growth, whether organic or through acquisitions; the timing and volume of work under contract; losses experienced in the Company’s operations; the results of the review of prior period accounting on certain projects and the impact of adjustments to accounting estimates; developments in governmental investigations and/or inquiries; intense competition in the industries in which the Company operates; failure to obtain favorable results in existing or future litigation or regulatory proceedings, dispute resolution proceedings or claims, including claims for additional costs; failure of partners, suppliers or subcontractors to perform their obligations; cyber-security breaches; failure to maintain safe worksites; risks or uncertainties associated with events outside of the Company’s control, including severe weather conditions, public health crises and pandemics (such as COVID-19), war or other armed conflict (including Russia’s invasion of
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In Thousands, Except Per Share Amounts) (Unaudited) |
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Three Months Ended |
|
Six Months Ended |
|
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|
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|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
||||||||
Revenue |
|
$ |
1,022,948 |
|
|
$ |
881,610 |
|
|
$ |
1,807,333 |
|
|
$ |
1,699,939 |
|
|
Cost of revenue |
|
|
930,839 |
|
|
|
768,584 |
|
|
|
1,658,739 |
|
|
|
1,506,732 |
|
|
Gross profit |
|
|
92,109 |
|
|
|
113,026 |
|
|
|
148,594 |
|
|
|
193,207 |
|
|
Selling, general and administrative expenses |
|
|
59,730 |
|
|
|
57,747 |
|
|
|
115,184 |
|
|
|
111,179 |
|
|
Transaction and related costs |
|
|
5,199 |
|
|
|
480 |
|
|
|
5,522 |
|
|
|
14,376 |
|
|
Gain on sale and leaseback transaction |
|
|
(40,084 |
) |
|
|
— |
|
|
|
(40,084 |
) |
|
|
— |
|
|
Operating income |
|
|
67,264 |
|
|
|
54,799 |
|
|
|
67,972 |
|
|
|
67,652 |
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign exchange gain (loss), net |
|
|
560 |
|
|
|
(466 |
) |
|
|
444 |
|
|
|
(443 |
) |
|
Other income, net |
|
|
155 |
|
|
|
379 |
|
|
|
146 |
|
|
|
374 |
|
|
Interest expense, net |
|
|
(4,705 |
) |
|
|
(4,820 |
) |
|
|
(7,581 |
) |
|
|
(9,456 |
) |
|
Income before provision for income taxes |
|
|
63,274 |
|
|
|
49,892 |
|
|
|
60,981 |
|
|
|
58,127 |
|
|
Provision for income taxes |
|
|
(13,120 |
) |
|
|
(13,597 |
) |
|
|
(12,501 |
) |
|
|
(15,984 |
) |
|
Net income |
|
|
50,154 |
|
|
|
36,295 |
|
|
|
48,480 |
|
|
|
42,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
||||
Dividends per common share |
|
$ |
0.06 |
|
|
$ |
0.06 |
|
|
$ |
0.12 |
|
|
$ |
0.12 |
|
|
|
|
|
|
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|
|
|
|
|
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|
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|
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Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.94 |
|
|
$ |
0.68 |
|
|
$ |
0.91 |
|
|
$ |
0.82 |
|
|
Diluted |
|
$ |
0.93 |
|
|
$ |
0.67 |
|
|
$ |
0.90 |
|
|
$ |
0.81 |
|
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Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
53,263 |
|
|
|
53,729 |
|
|
|
53,251 |
|
|
|
51,634 |
|
|
Diluted |
|
|
53,852 |
|
|
|
54,285 |
|
|
|
53,815 |
|
|
|
52,137 |
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands) (Unaudited) |
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|
2022 |
|
2021 |
|
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|
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|
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
91,254 |
|
$ |
200,512 |
|
Accounts receivable, net |
|
|
597,195 |
|
|
471,656 |
|
Contract assets |
|
|
484,724 |
|
|
423,659 |
|
Prepaid expenses and other current assets |
|
|
144,774 |
|
|
86,263 |
|
Total current assets |
|
|
1,317,947 |
|
|
1,182,090 |
|
Property and equipment, net |
|
|
462,801 |
|
|
433,279 |
|
Operating lease assets |
|
|
139,037 |
|
|
158,609 |
|
Deferred tax assets |
|
|
1,286 |
|
|
1,307 |
|
Intangible assets, net |
|
|
176,077 |
|
|
171,320 |
|
|
|
|
591,646 |
|
|
581,664 |
|
Other long-term assets |
|
|
25,036 |
|
|
15,058 |
|
Total assets |
|
$ |
2,713,830 |
|
$ |
2,543,327 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
345,476 |
|
$ |
273,463 |
|
Contract liabilities |
|
|
250,225 |
|
|
240,412 |
|
Accrued liabilities |
|
|
227,319 |
|
|
174,821 |
|
Dividends payable |
|
|
3,192 |
|
|
3,192 |
|
Current portion of long-term debt |
|
|
63,116 |
|
|
67,230 |
|
Total current liabilities |
|
|
889,328 |
|
|
759,118 |
|
Long-term debt, net of current portion |
|
|
637,914 |
|
|
594,232 |
|
Noncurrent operating lease liabilities, net of current portion |
|
|
79,629 |
|
|
98,059 |
|
Deferred tax liabilities |
|
|
38,501 |
|
|
38,510 |
|
Other long-term liabilities |
|
|
35,660 |
|
|
63,353 |
|
Total liabilities |
|
|
1,681,032 |
|
|
1,553,272 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
Common stock |
|
|
6 |
|
|
6 |
|
Additional paid-in capital |
|
|
262,394 |
|
|
261,918 |
|
Retained earnings |
|
|
769,523 |
|
|
727,433 |
|
Accumulated other comprehensive income |
|
|
875 |
|
|
698 |
|
Total stockholders’ equity |
|
|
1,032,798 |
|
|
990,055 |
|
Total liabilities and stockholders’ equity |
|
$ |
2,713,830 |
|
$ |
2,543,327 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) (Unaudited) |
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|
Six Months Ended |
||||||
|
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|
||||||
|
|
2022 |
|
2021 |
||||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net income |
|
$ |
48,480 |
|
|
$ |
42,143 |
|
Adjustments to reconcile net income to net cash provided by operating activities (net of effect of acquisitions): |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
40,778 |
|
|
|
51,702 |
|
Stock-based compensation expense |
|
|
3,995 |
|
|
|
7,485 |
|
Gain on sale of property and equipment |
|
|
(9,972 |
) |
|
|
(7,110 |
) |
Gain on sale and leaseback transaction |
|
|
(40,084 |
) |
|
|
— |
|
Unrealized gain on interest rate swap |
|
|
(4,571 |
) |
|
|
(2,255 |
) |
Other non-cash items |
|
|
579 |
|
|
|
566 |
|
Changes in assets and liabilities: |
|
|
— |
|
|
|
— |
|
Accounts receivable |
|
|
(105,690 |
) |
|
|
11,357 |
|
Contract assets |
|
|
(63,640 |
) |
|
|
(27,733 |
) |
Other current assets |
|
|
(54,142 |
) |
|
|
(19,448 |
) |
Other long-term assets |
|
|
(13,118 |
) |
|
|
(181 |
) |
Accounts payable |
|
|
62,877 |
|
|
|
6,900 |
|
Contract liabilities |
|
|
9,798 |
|
|
|
(56,688 |
) |
Operating lease assets and liabilities, net |
|
|
(1,088 |
) |
|
|
(1,831 |
) |
Accrued liabilities |
|
|
34,932 |
|
|
|
6,266 |
|
Other long-term liabilities |
|
|
(247 |
) |
|
|
(5,010 |
) |
Net cash (used in) provided by operating activities |
|
|
(91,113 |
) |
|
|
6,163 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchase of property and equipment |
|
|
(65,815 |
) |
|
|
(62,755 |
) |
Proceeds from sale of assets |
|
|
11,184 |
|
|
|
10,534 |
|
Proceeds from sale and leaseback transaction, net of related expenses |
|
|
49,887 |
|
|
|
— |
|
Cash paid for acquisitions, net of cash acquired |
|
|
(39,631 |
) |
|
|
(606,974 |
) |
Net cash used in investing activities |
|
|
(44,375 |
) |
|
|
(659,195 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Borrowings under revolving line of credit |
|
|
65,000 |
|
|
|
100,000 |
|
Payments on revolving line of credit |
|
|
— |
|
|
|
(100,000 |
) |
Borrowings under Canadian credit facility |
|
|
12,379 |
|
|
|
— |
|
Payments under Canadian credit facility |
|
|
(12,379 |
) |
|
|
— |
|
Proceeds from issuance of long-term debt |
|
|
30,000 |
|
|
|
421,000 |
|
Payments on long-term debt |
|
|
(55,957 |
) |
|
|
(79,515 |
) |
Proceeds from issuance of common stock |
|
|
— |
|
|
|
178,712 |
|
Debt issuance costs |
|
|
— |
|
|
|
(4,876 |
) |
Dividends paid |
|
|
(6,390 |
) |
|
|
(6,110 |
) |
Purchase of common stock |
|
|
(3,370 |
) |
|
|
— |
|
Other |
|
|
(3,083 |
) |
|
|
(4,959 |
) |
Net cash provided by financing activities |
|
|
26,200 |
|
|
|
504,252 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
(45 |
) |
|
|
585 |
|
Net change in cash, cash equivalents and restricted cash |
|
|
(109,333 |
) |
|
|
(148,195 |
) |
Cash, cash equivalents and restricted cash at beginning of the period |
|
|
205,643 |
|
|
|
330,975 |
|
Cash, cash equivalents and restricted cash at end of the period |
|
$ |
96,310 |
|
|
$ |
182,780 |
|
Non-GAAP Measures |
||||||||||||||||
Schedule 1
Reconciliation of Non-GAAP Financial Measures Adjusted Net Income and Adjusted EPS (In Thousands, Except Per Share Amounts) (Unaudited) |
||||||||||||||||
Adjusted Net Income and Adjusted EPS Primoris defines Adjusted Net Income as net income (loss) adjusted for certain items including, (i) non‐cash stock‐based compensation expense; (ii) transaction/integration and related costs; (iii) asset impairment charges; (iv) changes in fair value of the Company’s interest rate swap; (v) change in fair value of contingent consideration liabilities; (vi) amortization of intangible assets; (vii) amortization of debt discounts and debt issuance costs; (viii) losses on extinguishment of debt; (ix) severance and restructuring changes; (x) selected (gains) charges that are unusual or non-recurring; and (xi) impact of changes in statutory tax rates. The Company defines Adjusted EPS as Adjusted Net Income divided by the diluted weighted average shares outstanding. Management believes these adjustments are helpful for comparing the Company’s operating performance with prior periods. Because Adjusted Net Income and Adjusted EPS, as defined, exclude some, but not all, items that affect net income and diluted earnings per share, they may not be comparable to similarly titled measures of other companies. The most comparable GAAP financial measures, net income and diluted earnings per share, and information reconciling the GAAP and non‐GAAP financial measures, are included in the table below. |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
2022 |
|
2021 |
2022 |
|
2021 |
|||||||||
Net income as reported (GAAP) |
|
$ |
50,154 |
|
|
$ |
36,295 |
|
|
$ |
48,480 |
|
|
$ |
42,143 |
|
Non-cash stock based compensation |
|
|
2,442 |
|
|
|
1,333 |
|
|
|
3,995 |
|
|
|
2,388 |
|
Transaction/integration and related costs (1) |
|
|
5,199 |
|
|
|
480 |
|
|
|
5,522 |
|
|
|
14,376 |
|
Amortization of intangible assets |
|
|
3,463 |
|
|
|
4,666 |
|
|
|
7,073 |
|
|
|
8,829 |
|
Amortization of debt issuance costs |
|
|
283 |
|
|
|
283 |
|
|
|
566 |
|
|
|
566 |
|
Unrealized gain on interest rate swap |
|
|
(1,675 |
) |
|
|
(972 |
) |
|
|
(4,571 |
) |
|
|
(2,255 |
) |
Gain on sale and leaseback transaction |
|
|
(40,084 |
) |
|
|
- |
|
|
|
(40,084 |
) |
|
|
- |
|
Income tax impact of adjustments |
|
|
6,302 |
|
|
|
(1,578 |
) |
|
|
5,637 |
|
|
|
(6,574 |
) |
Adjusted net income |
|
$ |
26,084 |
|
|
$ |
40,507 |
|
|
$ |
26,618 |
|
|
$ |
59,473 |
|
Weighted average shares (diluted) |
|
|
53,852 |
|
|
|
54,285 |
|
|
|
53,815 |
|
|
|
52,137 |
|
Diluted earnings per share |
|
$ |
0.93 |
|
|
$ |
0.67 |
|
|
$ |
0.90 |
|
|
$ |
0.81 |
|
Adjusted diluted earnings per share |
|
$ |
0.48 |
|
|
$ |
0.75 |
|
|
$ |
0.49 |
|
|
$ |
1.14 |
|
(1) |
The six month period ended |
Schedule 2
Reconciliation of Non-GAAP Financial Measures EBITDA and Adjusted EBITDA (In Thousands) (Unaudited) |
|||||||||||||
EBITDA and Adjusted EBITDA Primoris defines EBITDA as net income (loss) before interest, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for certain items including, (i) non‐cash stock‐based compensation expense; (ii) transaction/integration and related costs; (iii) asset impairment charges; (iv) severance and restructuring changes; (v) change in fair value of contingent consideration liabilities; and (vi) selected (gains) charges that are unusual or non-recurring. The Company believes the EBITDA and Adjusted EBITDA financial measures assist in providing a more complete understanding of the Company’s underlying operational measures to manage its business, to evaluate its performance compared to prior periods and the marketplace, and to establish operational goals. EBITDA and Adjusted EBITDA are non‐GAAP financial measures and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. These non‐GAAP financial measures may not be computed in the same manner as similarly titled measures used by other companies. The most comparable GAAP financial measure, net income, and information reconciling the GAAP and non‐GAAP financial measures are included in the table below. |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Three Months Ended |
|
Six Months Ended |
||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||
Net income as reported (GAAP) |
$ |
50,154 |
|
|
$ |
36,295 |
|
$ |
48,480 |
|
|
$ |
42,143 |
Interest expense, net |
|
4,705 |
|
|
|
4,820 |
|
|
7,581 |
|
|
|
9,456 |
Provision for income taxes |
|
13,120 |
|
|
|
13,597 |
|
|
12,501 |
|
|
|
15,984 |
Depreciation and amortization |
|
20,606 |
|
|
|
26,850 |
|
|
40,778 |
|
|
|
51,702 |
EBITDA |
|
88,585 |
|
|
|
81,562 |
|
|
109,340 |
|
|
|
119,285 |
Non-cash stock based compensation |
|
2,442 |
|
|
|
1,333 |
|
|
3,995 |
|
|
|
2,388 |
Transaction/integration and related costs (1) |
|
5,199 |
|
|
|
480 |
|
|
5,522 |
|
|
|
14,376 |
Gain on sale and leaseback transaction |
|
(40,084 |
) |
|
|
- |
|
|
(40,084 |
) |
|
|
- |
Adjusted EBITDA |
$ |
56,142 |
|
|
$ |
83,375 |
|
$ |
78,773 |
|
|
$ |
136,049 |
(1) |
The six month period ended |
Schedule 3
Reconciliation of Non-GAAP Financial Measures Forecasted Guidance for 2022 (In Thousands, Except Per Share Amounts) (Unaudited) |
||||||||
The following table sets forth a reconciliation of the forecasted GAAP net income to Adjusted Net Income and EPS to Adjusted EPS for the year ending |
||||||||
|
|
|
|
|
|
|
||
|
|
|
||||||
|
|
Full Year Ending |
||||||
|
|
|
||||||
Net income as defined (GAAP) |
|
$ |
129,600 |
|
|
$ |
140,400 |
|
Non-cash stock based compensation |
|
|
7,500 |
|
|
|
7,500 |
|
Amortization of intangible assets |
|
|
18,300 |
|
|
|
18,300 |
|
Amortization of debt issuance costs |
|
|
2,200 |
|
|
|
2,200 |
|
Unrealized gain on interest rate swap |
|
|
(4,600 |
) |
|
|
(4,600 |
) |
Transaction/integration and related costs |
|
|
16,000 |
|
|
|
16,000 |
|
Gain on sale and leaseback transaction |
|
|
(40,100 |
) |
|
|
(40,100 |
) |
Income tax impact of adjustments |
|
|
144 |
|
|
|
144 |
|
Adjusted net income |
|
$ |
129,044 |
|
|
$ |
139,844 |
|
Weighted average shares (diluted) |
|
|
54,000 |
|
|
|
54,000 |
|
Diluted earnings per share |
|
$ |
2.40 |
|
|
$ |
2.60 |
|
Adjusted diluted earnings per share |
|
$ |
2.39 |
|
|
$ |
2.59 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220808005788/en/
Executive Vice President, Chief Financial Officer
(214) 740-5608
kdodgen@prim.com
Jeremy Apple
Investor Relations
(312) 690-6003
PrimorisIR@clermontpartners.com
Source:
FAQ
What were Primoris Services Corporation's Q2 2022 financial results?
How has Primoris' backlog changed in 2022?
What challenges did Primoris face in Q2 2022?
What is the adjusted EPS for Primoris in Q2 2022?
What is the financial outlook for Primoris in 2022?
