Primoris Services Corporation Reports Third Quarter 2024 Results
Primoris Services (NYSE: PRIM) reported strong Q3 2024 results with revenue of $1.65 billion, up 7.8% year-over-year. Net income reached $58.4 million ($1.07 per diluted share), increasing from $48.1 million in Q3 2023. The company achieved record backlog of $11.3 billion driven by renewables and industrial bookings. Adjusted EBITDA grew 6.4% to $127.7 million. Based on strong performance, Primoris raised its 2024 EPS guidance to $2.85-$3.00 and Adjusted EPS to $3.40-$3.55 per diluted share. The company also increased its quarterly dividend to $0.08 per share.
Primoris Services (NYSE: PRIM) ha riportato risultati solidi per il terzo trimestre del 2024, con un fatturato di 1,65 miliardi di dollari, in aumento del 7,8% rispetto all'anno precedente. L'utile netto ha raggiunto 58,4 milioni di dollari (1,07 dollari per azione diluita), in crescita rispetto ai 48,1 milioni di dollari del terzo trimestre del 2023. L'azienda ha registrato un portafoglio ordini record di 11,3 miliardi di dollari, guidato da prenotazioni nel settore delle energie rinnovabili e industriali. L'EBITDA rettificato è cresciuto del 6,4% a 127,7 milioni di dollari. Sulla base delle performance solide, Primoris ha alzato la sua guida per l'EPS 2024 a 2,85-3,00 dollari e l'EPS rettificato a 3,40-3,55 dollari per azione diluita. L'azienda ha anche aumentato il suo dividendo trimestrale a 0,08 dollari per azione.
Primoris Services (NYSE: PRIM) reportó resultados sólidos para el tercer trimestre de 2024, con ingresos de 1.65 mil millones de dólares, un aumento del 7.8% en comparación con el año anterior. El ingreso neto alcanzó 58.4 millones de dólares (1.07 dólares por acción diluida), aumentando desde 48.1 millones de dólares en el tercer trimestre de 2023. La compañía logró un backlog récord de 11.3 mil millones de dólares, impulsado por reservas en energías renovables e industriales. El EBITDA ajustado creció un 6.4% a 127.7 millones de dólares. Basado en un rendimiento sólido, Primoris elevó su guía de EPS para 2024 a 2.85-3.00 dólares y el EPS ajustado a 3.40-3.55 dólares por acción diluida. La compañía también aumentó su dividendo trimestral a 0.08 dólares por acción.
프리모리스 서비스 (NYSE: PRIM)는 2024년 3분기 실적이 강력하게 보고되었으며, 수익이 16억 5천만 달러로 전년 대비 7.8% 증가했습니다. 순이익은 5840만 달러 (희석주당 1.07달러)에 도달하여, 2023년 3분기의 4810만 달러에서 증가했습니다. 회사는 재생 에너지 및 산업 고객의 주문 증가에 힘입어 113억 달러의 기록적인 백로그를 달성했습니다. 조정된 EBITDA는 1억 2770만 달러로 6.4% 증가했습니다. 강력한 성과를 기반으로, 프리모리스는 2024년 EPS 가이던스를 2.85~3.00달러, 조정 EPS를 3.40~3.55달러로 상향 조정했습니다. 또한 분기 배당금을 주당 0.08달러로 증가시켰습니다.
Primoris Services (NYSE: PRIM) a annoncé des résultats solides pour le troisième trimestre de 2024, avec un chiffre d'affaires de 1,65 milliard de dollars, en hausse de 7,8% par rapport à l'année précédente. Le bénéfice net a atteint 58,4 millions de dollars (1,07 dollar par action diluée), en augmentation par rapport à 48,1 millions de dollars au troisième trimestre 2023. L'entreprise a atteint un carnet de commandes record de 11,3 milliards de dollars, soutenu par des réservations dans les énergies renouvelables et le secteur industriel. L'EBITDA ajusté a augmenté de 6,4% pour atteindre 127,7 millions de dollars. Sur la base de performances solides, Primoris a relevé ses prévisions de BPA 2024 à 2,85-3,00 dollars et son BPA ajusté à 3,40-3,55 dollars par action diluée. L'entreprise a également augmenté son dividende trimestriel à 0,08 dollar par action.
Primoris Services (NYSE: PRIM) hat starke Ergebnisse für das dritte Quartal 2024 gemeldet, mit einem Umsatz von 1,65 Milliarden Dollar, was einem Anstieg von 7,8% im Vergleich zum Vorjahr entspricht. Der Nettogewinn erreichte 58,4 Millionen Dollar (1,07 Dollar pro verwässerter Aktie) und stieg von 48,1 Millionen Dollar im dritten Quartal 2023. Das Unternehmen erzielte einen rekordverdächtigen Auftragseingang von 11,3 Milliarden Dollar, der durch Aufträge im Bereich erneuerbare Energien und Industrie angetrieben wurde. Das angepasste EBITDA wuchs um 6,4% auf 127,7 Millionen Dollar. Basierend auf der starken Leistung erhöhte Primoris seine EPS-Prognose für 2024 auf 2,85-3,00 Dollar und die angepasste EPS auf 3,40-3,55 Dollar pro verwässerter Aktie. Das Unternehmen erhöhte auch seine vierteljährliche Dividende auf 0,08 Dollar pro Aktie.
- Revenue increased 7.8% YoY to $1.65 billion
- Net income grew by $10.3 million to $58.4 million
- Record backlog of $11.3 billion
- Gross profit margin improved to 12.0% from 11.4%
- Utilities segment gross profit margin increased to 13.1% from 9.9%
- Interest expense decreased by $3.2 million
- Raised full-year EPS guidance
- Energy segment gross profit margin declined to 11.0% from 12.3%
- SG&A expenses increased 16.2% YoY
- SG&A as percentage of revenue increased to 5.9% from 5.5%
Insights
Strong Q3 2024 results show significant growth with
The infrastructure services sector outlook remains positive, particularly in renewables and utilities. PRIM's strategic positioning in critical infrastructure and clean energy aligns with major market trends. The company's improved execution in power delivery projects and expansion in communications infrastructure indicate strong market adaptation. The
For the third quarter of 2024, Primoris reported the following highlights (1):
-
Revenue of
, up$1,649.1 million , or 7.8 percent, compared to the third quarter of 2023 driven by strong growth in both the Energy and Utilities segments;$119.6 million -
Net income of
, or$58.4 million per diluted share, an increase of$1.07 , or$10.3 million per diluted share, from the third quarter of 2023;$0.18 -
Record backlog of
driven by strong renewables and industrial bookings in the Energy segment;$11.3 billion -
Adjusted net income of
, or$66.7 million per diluted share, an increase of$1.22 , or$11.4 million per diluted share, from the third quarter of 2023;$0.20 -
Adjusted earnings before interest, income taxes, depreciation, and amortization (“Adjusted EBITDA”) of
, up$127.7 million , or 6.4 percent, from the third quarter of 2023;$7.7 million -
Raising EPS and Adjusted EPS guidance ranges to
to$2.85 and$3.00 to$3.40 per diluted share, respectively;$3.55 -
Increased quarterly cash dividend to
per share.$0.08
(1) Please refer to “Non-GAAP Measures” and Schedules 1, 2, 3 and 4 for the definitions and reconciliations of our Non-GAAP financial measures, including “Adjusted Net Income,” “Adjusted EPS” and “Adjusted EBITDA.” |
“In the third quarter, Primoris achieved record levels of revenue, earnings and backlog while also delivering strong operating cash flow,” said Tom McCormick, President and Chief Executive Officer of Primoris. “This is a credit to our hard-working employees and the trust of our customers to execute their projects safely and efficiently.
“We continue to see opportunities to grow revenue in markets experiencing increased investment while improving profitability and cash flow through disciplined capital allocation. Our renewables business continues to see strong demand and we are driving higher productivity and improved execution across our Utilities segment.
“Primoris is committed to providing critical infrastructure services to meet the growing demand for safe, reliable energy. We look forward to finishing 2024 strong and establishing the foundation for further progress toward margin and cash flow expansion in 2025.”
Third Quarter 2024 Results Overview
Revenue was
Our reportable segments include the Utilities segment and the Energy segment. Revenue and gross profit for the segments for the three and nine months ended September 30, 2024, and 2023 were as follows:
Segment Revenue |
||||||||
(in thousands) |
||||||||
(unaudited) |
||||||||
|
|
For the three months ended September 30, |
||||||
|
|
2024 |
|
2023 |
||||
Segment |
|
Revenue |
|
Revenue |
||||
Utilities |
|
$ |
666,240 |
|
|
$ |
650,664 |
|
Energy |
|
|
1,010,858 |
|
|
|
887,743 |
|
Intersegment eliminations |
|
|
(28,012 |
) |
|
|
(8,921 |
) |
Total |
|
$ |
1,649,086 |
|
|
$ |
1,529,486 |
|
|
|
For the nine months ended September 30, |
||||||
|
|
2024 |
|
2023 |
||||
Segment |
|
Revenue |
|
Revenue |
||||
Utilities |
|
$ |
1,774,962 |
|
|
$ |
1,833,665 |
|
Energy |
|
|
2,931,928 |
|
|
|
2,394,114 |
|
Intersegment eliminations |
|
|
(81,382 |
) |
|
|
(28,019 |
) |
Total |
|
$ |
4,625,508 |
|
|
$ |
4,199,760 |
|
Segment Gross Profit |
||||||||||||
(in thousands, except %) |
||||||||||||
(unaudited) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||
|
|
For the three months ended September 30, |
||||||||||
|
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
% of |
|
|
|
|
% of |
||
|
|
|
|
|
Segment |
|
|
|
|
Segment |
||
Segment |
|
Gross Profit |
|
Revenue |
|
Gross Profit |
|
Revenue |
||||
Utilities |
|
$ |
87,026 |
|
13.1 |
% |
|
$ |
64,654 |
|
9.9 |
% |
Energy |
|
|
111,535 |
|
11.0 |
% |
|
|
109,241 |
|
12.3 |
% |
Total |
|
$ |
198,561 |
|
12.0 |
% |
|
$ |
173,895 |
|
11.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
||
|
|
For the nine months ended September 30, |
||||||||||
|
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
% of |
|
|
|
|
% of |
||
|
|
|
|
|
Segment |
|
|
|
|
Segment |
||
Segment |
|
Gross Profit |
|
Revenue |
|
Gross Profit |
|
Revenue |
||||
Utilities |
|
$ |
177,666 |
|
10.0 |
% |
|
$ |
164,244 |
|
9.0 |
% |
Energy |
|
|
340,981 |
|
11.6 |
% |
|
|
266,647 |
|
11.1 |
% |
Total |
|
$ |
518,647 |
|
11.2 |
% |
|
$ |
430,891 |
|
10.3 |
% |
Utilities Segment (“Utilities”): Revenue increased by
Energy Segment (“Energy”): Revenue increased by
Other Income Statement Information
Selling, general and administrative (“SG&A”) expenses were
Interest expense, net for the quarter ended September 30, 2024, was
The effective tax rate on income for the nine months ended September 30, 2024, of
Outlook
The Company is raising its estimates for the year ending December 31, 2024. Net income is expected to be between
The Company is targeting SG&A expense as a percentage of revenue in the low six percent range for full year 2024. The Company’s targeted gross margins by segment are as follows: Utilities in the range of 9 to 11 percent and Energy in the range of 10 to 12 percent. The Company expects its effective tax rate for 2024 to be approximately 29 percent, but it may vary depending on the mix of states in which the Company operates.
Adjusted EPS and Adjusted EBITDA are non-GAAP financial measures. Please refer to “Non-GAAP Measures” and Schedules 1 - 4 below for the definitions and reconciliations. 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.prim.com.
Backlog |
||||||||||||
(in millions) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2024 |
|
December 31, 2023 |
||||||||
|
|
Next 12 Months |
|
Total |
|
Next 12 Months |
|
Total |
||||
Utilities |
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Backlog |
|
$ |
57.6 |
|
$ |
57.6 |
|
$ |
96.3 |
|
$ |
96.3 |
MSA Backlog |
|
|
1,892.4 |
|
|
5,268.4 |
|
|
1,776.5 |
|
|
5,093.6 |
Backlog |
|
$ |
1,950.0 |
|
$ |
5,326.0 |
|
$ |
1,872.8 |
|
$ |
5,189.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy |
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Backlog |
|
$ |
3,049.8 |
|
$ |
5,518.5 |
|
$ |
2,599.0 |
|
$ |
5,102.6 |
MSA Backlog |
|
|
199.4 |
|
|
416.6 |
|
|
308.2 |
|
|
602.4 |
Backlog |
|
$ |
3,249.2 |
|
$ |
5,935.1 |
|
$ |
2,907.2 |
|
$ |
5,705.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Backlog |
|
$ |
3,107.4 |
|
$ |
5,576.1 |
|
$ |
2,695.3 |
|
$ |
5,198.9 |
MSA Backlog |
|
|
2,091.8 |
|
|
5,685.0 |
|
|
2,084.7 |
|
|
5,696.0 |
Backlog |
|
$ |
5,199.2 |
|
$ |
11,261.1 |
|
$ |
4,780.0 |
|
$ |
10,894.9 |
At September 30, 2024, total Fixed Backlog was
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.
Balance Sheet and Capital Allocation
At September 30, 2024, the Company had
The Company also announced that on October 30, 2024, its Board of Directors declared a
Conference Call and Webcast
As previously announced, management will host a conference call and webcast on Tuesday, November 5, 2024, at 9:00 a.m.
Investors and analysts are invited to participate in the call by phone at 1-800-715-9871, or internationally at 1-646-307-1963 (access code: 1324356) or via the Internet at www.prim.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 1-609-800-9909 (access code: 1324356), for a seven-day period following the call.
Presentation slides to accompany the conference call are available for download under “Events & Presentations” in the “Investors” section of the Company’s website at www.prim.com.
Non-GAAP Measures
This press release contains certain financial measures that are not recognized under generally accepted accounting principles in
About Primoris
Primoris Services Corporation is a leading provider of critical infrastructure services to the utility, energy, and renewables markets throughout
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”, “targets”, “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; 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; increases in interest rates and slowing economic growth or recession; the instability in the banking system; 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 conflicts in the
PRIMORIS SERVICES CORPORATION |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||||||
(In Thousands, Except Per Share Amounts) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
September 30, |
|
September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenue |
|
$ |
1,649,086 |
|
|
$ |
1,529,486 |
|
|
$ |
4,625,508 |
|
|
$ |
4,199,760 |
|
Cost of revenue |
|
|
1,450,525 |
|
|
|
1,355,591 |
|
|
|
4,106,861 |
|
|
|
3,768,869 |
|
Gross profit |
|
|
198,561 |
|
|
|
173,895 |
|
|
|
518,647 |
|
|
|
430,891 |
|
Selling, general and administrative expenses |
|
|
98,106 |
|
|
|
84,404 |
|
|
|
286,812 |
|
|
|
247,984 |
|
Transaction and related costs |
|
|
905 |
|
|
|
1,084 |
|
|
|
1,977 |
|
|
|
4,677 |
|
Operating income |
|
|
99,550 |
|
|
|
88,407 |
|
|
|
229,858 |
|
|
|
178,230 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign exchange gain (loss), net |
|
|
553 |
|
|
|
(1 |
) |
|
|
1,874 |
|
|
|
1,301 |
|
Other income, net |
|
|
61 |
|
|
|
467 |
|
|
|
16 |
|
|
|
1,540 |
|
Interest expense, net |
|
|
(17,859 |
) |
|
|
(21,065 |
) |
|
|
(52,984 |
) |
|
|
(56,443 |
) |
Income before provision for income taxes |
|
|
82,305 |
|
|
|
67,808 |
|
|
|
178,764 |
|
|
|
124,628 |
|
Provision for income taxes |
|
|
(23,869 |
) |
|
|
(19,664 |
) |
|
|
(51,842 |
) |
|
|
(36,142 |
) |
Net income |
|
|
58,436 |
|
|
|
48,144 |
|
|
|
126,922 |
|
|
|
88,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Dividends per common share |
|
$ |
0.06 |
|
|
$ |
0.06 |
|
|
$ |
0.18 |
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
1.09 |
|
|
$ |
0.90 |
|
|
$ |
2.37 |
|
|
$ |
1.66 |
|
Diluted |
|
$ |
1.07 |
|
|
$ |
0.89 |
|
|
$ |
2.33 |
|
|
$ |
1.63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
53,692 |
|
|
|
53,339 |
|
|
|
53,608 |
|
|
|
53,275 |
|
Diluted |
|
|
54,675 |
|
|
|
54,351 |
|
|
|
54,562 |
|
|
|
54,171 |
|
PRIMORIS SERVICES CORPORATION |
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
(In Thousands) |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
September 30, |
|
December 31, |
||||
|
|
2024 |
|
2023 |
||||
|
|
|
|
|
|
|||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
352,657 |
|
|
$ |
217,778 |
|
Accounts receivable, net |
|
|
941,011 |
|
|
|
685,439 |
|
Contract assets |
|
|
805,923 |
|
|
|
846,176 |
|
Prepaid expenses and other current assets |
|
|
122,961 |
|
|
|
135,840 |
|
Total current assets |
|
|
2,222,552 |
|
|
|
1,885,233 |
|
Property and equipment, net |
|
|
484,426 |
|
|
|
475,929 |
|
Operating lease assets |
|
|
447,589 |
|
|
|
360,507 |
|
Intangible assets, net |
|
|
212,555 |
|
|
|
227,561 |
|
Goodwill |
|
|
857,650 |
|
|
|
857,650 |
|
Other long-term assets |
|
|
15,521 |
|
|
|
20,547 |
|
Total assets |
|
$ |
4,240,293 |
|
|
$ |
3,827,427 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
489,052 |
|
|
$ |
628,962 |
|
Contract liabilities |
|
|
657,101 |
|
|
|
366,476 |
|
Accrued liabilities |
|
|
386,267 |
|
|
|
263,492 |
|
Dividends payable |
|
|
3,223 |
|
|
|
3,202 |
|
Current portion of long-term debt |
|
|
76,751 |
|
|
|
72,903 |
|
Total current liabilities |
|
|
1,612,394 |
|
|
|
1,335,035 |
|
Long-term debt, net of current portion |
|
|
826,998 |
|
|
|
885,369 |
|
Noncurrent operating lease liabilities, net of current portion |
|
|
327,297 |
|
|
|
263,454 |
|
Deferred tax liabilities |
|
|
59,490 |
|
|
|
59,565 |
|
Other long-term liabilities |
|
|
56,119 |
|
|
|
47,912 |
|
Total liabilities |
|
|
2,882,298 |
|
|
|
2,591,335 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Stockholders’ equity |
|
|
|
|
|
|
||
Common stock |
|
|
6 |
|
|
|
6 |
|
Additional paid-in capital |
|
|
281,563 |
|
|
|
275,846 |
|
Retained earnings |
|
|
1,078,288 |
|
|
|
961,028 |
|
Accumulated other comprehensive income |
|
|
(1,862 |
) |
|
|
(788 |
) |
Total stockholders’ equity |
|
|
1,357,995 |
|
|
|
1,236,092 |
|
Total liabilities and stockholders’ equity |
|
$ |
4,240,293 |
|
|
$ |
3,827,427 |
|
PRIMORIS SERVICES CORPORATION |
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(In Thousands) |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
Nine Months Ended |
||||||
|
|
September 30, |
||||||
|
|
2024 |
|
2023 |
||||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net income |
|
$ |
126,922 |
|
|
$ |
88,486 |
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities (net of effect of acquisitions): |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
72,948 |
|
|
|
81,454 |
|
Stock-based compensation expense |
|
|
10,348 |
|
|
|
8,955 |
|
Gain on sale of property and equipment |
|
|
(38,490 |
) |
|
|
(29,603 |
) |
Unrealized loss (gain) on interest rate swap |
|
|
1,202 |
|
|
|
(3,001 |
) |
Other non-cash items |
|
|
3,286 |
|
|
|
1,546 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(263,175 |
) |
|
|
(185,815 |
) |
Contract assets |
|
|
39,517 |
|
|
|
(128,360 |
) |
Other current assets |
|
|
(7,076 |
) |
|
|
32,961 |
|
Other long-term assets |
|
|
(1,045 |
) |
|
|
633 |
|
Accounts payable |
|
|
(139,074 |
) |
|
|
(34,855 |
) |
Contract liabilities |
|
|
290,636 |
|
|
|
106,042 |
|
Operating lease assets and liabilities, net |
|
|
(3,903 |
) |
|
|
3,114 |
|
Accrued liabilities |
|
|
106,551 |
|
|
|
51,182 |
|
Other long-term liabilities |
|
|
11,407 |
|
|
|
114 |
|
Net cash provided by (used in) operating activities |
|
|
210,054 |
|
|
|
(7,147 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchase of property and equipment |
|
|
(98,338 |
) |
|
|
(82,500 |
) |
Proceeds from sale of assets |
|
|
97,447 |
|
|
|
47,579 |
|
Cash paid for acquisitions, net of cash and restricted cash acquired |
|
|
— |
|
|
|
9,300 |
|
Net cash used in investing activities |
|
|
(891 |
) |
|
|
(25,621 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Borrowings under revolving lines of credit |
|
|
— |
|
|
|
440,223 |
|
Payments on revolving lines of credit |
|
|
— |
|
|
|
(420,223 |
) |
Payments on long-term debt |
|
|
(55,878 |
) |
|
|
(66,055 |
) |
Payments related to tax withholding for stock-based compensation |
|
|
(6,591 |
) |
|
|
(1,637 |
) |
Dividends paid |
|
|
(9,641 |
) |
|
|
(9,582 |
) |
Other |
|
|
(1,912 |
) |
|
|
(2,749 |
) |
Net cash used in financing activities |
|
|
(74,022 |
) |
|
|
(60,023 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
(400 |
) |
|
|
346 |
|
Net change in cash, cash equivalents and restricted cash |
|
|
134,741 |
|
|
|
(92,445 |
) |
Cash, cash equivalents and restricted cash at beginning of the period |
|
|
223,542 |
|
|
|
258,991 |
|
Cash, cash equivalents and restricted cash at end of the period |
|
$ |
358,283 |
|
|
$ |
166,546 |
|
Non-GAAP Measures |
Schedule 1 |
Primoris Services Corporation |
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 September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income as reported (GAAP) |
|
$ |
58,436 |
|
|
$ |
48,144 |
|
|
$ |
126,922 |
|
|
$ |
88,486 |
|
Non-cash stock-based compensation |
|
|
3,988 |
|
|
|
3,568 |
|
|
|
10,348 |
|
|
|
8,955 |
|
Transaction/integration and related costs |
|
|
905 |
|
|
|
1,084 |
|
|
|
1,977 |
|
|
|
4,677 |
|
Amortization of intangible assets |
|
|
4,732 |
|
|
|
5,193 |
|
|
|
15,011 |
|
|
|
16,630 |
|
Amortization of debt issuance costs |
|
|
538 |
|
|
|
563 |
|
|
|
1,737 |
|
|
|
1,545 |
|
Unrealized loss (gain) on interest rate swap |
|
|
1,433 |
|
|
|
(256 |
) |
|
|
1,202 |
|
|
|
(3,001 |
) |
Change in fair value of contingent consideration |
|
|
— |
|
|
|
(182 |
) |
|
|
— |
|
|
|
(875 |
) |
Impairment of fixed assets |
|
|
— |
|
|
|
— |
|
|
|
1,549 |
|
|
|
— |
|
Income tax impact of adjustments (1) |
|
|
(3,363 |
) |
|
|
(2,891 |
) |
|
|
(9,229 |
) |
|
|
(8,100 |
) |
Adjusted net income |
|
$ |
66,669 |
|
|
$ |
55,223 |
|
|
$ |
149,517 |
|
|
$ |
108,317 |
|
Weighted average shares (diluted) |
|
|
54,675 |
|
|
|
54,351 |
|
|
|
54,562 |
|
|
|
54,171 |
|
Diluted earnings per share |
|
$ |
1.07 |
|
|
$ |
0.89 |
|
|
$ |
2.33 |
|
|
$ |
1.63 |
|
Adjusted diluted earnings per share |
|
$ |
1.22 |
|
|
$ |
1.02 |
|
|
$ |
2.74 |
|
|
$ |
2.00 |
|
(1) Adjustments above are reported on a pre-tax basis before the income tax impact of adjustments. The income tax impact for each adjustment is determined by calculating the tax impact of the adjustment on the Company's quarterly and annual effective tax rate, as applicable, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. |
Schedule 2 |
Primoris Services Corporation |
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 September 30, |
|
Nine Months Ended September 30, |
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Net income as reported (GAAP) |
$ |
58,436 |
|
$ |
48,144 |
|
|
$ |
126,922 |
|
$ |
88,486 |
|
|||
Interest expense, net |
|
17,859 |
|
|
21,065 |
|
|
|
52,984 |
|
|
56,443 |
|
|||
Provision for income taxes |
|
23,869 |
|
|
19,664 |
|
|
|
51,842 |
|
|
36,142 |
|
|||
Depreciation and amortization |
|
22,674 |
|
|
26,700 |
|
|
|
72,948 |
|
|
81,454 |
|
|||
EBITDA |
|
122,838 |
|
|
115,573 |
|
|
|
304,696 |
|
|
262,525 |
|
|||
Non-cash stock-based compensation |
|
3,988 |
|
|
3,568 |
|
|
|
10,348 |
|
|
8,955 |
|
|||
Transaction/integration and related costs |
|
905 |
|
|
1,084 |
|
|
|
1,977 |
|
|
4,677 |
|
|||
Change in fair value of contingent consideration |
|
— |
|
|
(182 |
) |
|
|
— |
|
|
(875 |
) |
|||
Impairment of fixed assets |
|
— |
|
|
— |
|
|
|
1,549 |
|
|
— |
|
|||
Adjusted EBITDA |
$ |
127,731 |
|
$ |
120,043 |
|
|
$ |
318,570 |
|
$ |
275,282 |
|
|||
Schedule 3 |
Primoris Services Corporation |
Reconciliation of Non-GAAP Financial Measures |
Forecasted Adjusted Net Income and Adjusted Diluted Earnings Per Share for Full Year 2024 |
(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 December 31, 2024. |
|
|
Estimated Range |
||||||
|
|
Full Year Ending |
||||||
|
|
December 31, 2024 |
||||||
Net income as defined (GAAP) |
|
$ |
156,000 |
|
|
$ |
164,000 |
|
Non-cash stock-based compensation |
|
|
14,500 |
|
|
|
14,500 |
|
Transaction/integration and related costs |
|
|
3,500 |
|
|
|
3,500 |
|
Amortization of intangible assets |
|
|
20,000 |
|
|
|
20,000 |
|
Amortization of debt issuance costs |
|
|
2,500 |
|
|
|
2,500 |
|
Impairment of fixed assets |
|
|
1,500 |
|
|
|
1,500 |
|
Income tax impact of adjustments (1) |
|
|
(12,000 |
) |
|
|
(12,000 |
) |
Adjusted net income |
|
$ |
186,000 |
|
|
$ |
194,000 |
|
Weighted average shares (diluted) |
|
|
54,700 |
|
|
|
54,700 |
|
Diluted earnings per share |
|
$ |
2.85 |
|
|
$ |
3.00 |
|
Adjusted diluted earnings per share |
|
$ |
3.40 |
|
|
$ |
3.55 |
|
(1) Adjustments above are reported on a pre-tax basis before the income tax impact of adjustments. The income tax impact for each adjustment is determined by calculating the tax impact of the adjustment on the Company's quarterly and annual effective tax rate, as applicable, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. |
||||||||
Schedule 4 |
Primoris Services Corporation |
Reconciliation of Non-GAAP Financial Measures |
Forecasted EBITDA and Adjusted EBITDA for Full Year 2024 |
(In Thousands, Except Per Share Amounts) |
(Unaudited) |
The following table sets forth a reconciliation of the forecasted GAAP net income to EBITDA and Adjusted EBITDA for the year ending December 31, 2024. |
|
|
Estimated Range |
||||||
|
|
Full Year Ending |
||||||
|
|
December 31, 2024 |
||||||
Net income as defined (GAAP) |
|
$ |
156,000 |
|
$ |
164,000 |
||
Interest expense, net |
|
|
68,000 |
|
|
71,000 |
||
Provision for income taxes |
|
|
64,500 |
|
|
68,500 |
||
Depreciation and amortization |
|
|
97,000 |
|
|
97,000 |
||
EBITDA |
|
|
385,500 |
|
|
400,500 |
||
Non-cash stock-based compensation |
|
|
14,500 |
|
|
14,500 |
||
Transaction/integration and related costs |
|
|
3,500 |
|
|
3,500 |
||
Impairment of fixed assets |
|
|
1,500 |
|
|
1,500 |
||
Adjusted EBITDA |
|
$ |
405,000 |
|
$ |
420,000 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241104753452/en/
Ken Dodgen
Executive Vice President, Chief Financial Officer
(214) 740-5608
kdodgen@prim.com
Blake Holcomb
Vice President, Investor Relations
(214) 545-6773
bholcomb@prim.com
Source: Primoris Services Corporation
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