Operating income for the 2012 third quarter was $30.3 million, or 7.0% of total revenues, compared to $32.0 million, or 8.5% of total revenues, for the same period last year.
Net other income and expenses in the 2012 third quarter was an expense of $1.4 million, a $1.3 million decline from net other income of $0.1 million in the 2011 third quarter. The decline was primarily due to the near completion of the St. Bernard Levee Partners joint venture.
The provision for income taxes for the 2012 third quarter was $11.0 million. The effective tax rate excluding income attributable to noncontrolling interests was 38.5% for the 2012 third quarter, compared to 39.7% in the prior year quarter.
Net income attributable to Primoris for the 2012 third quarter was $17.5 million, or $0.34 per diluted share, compared to net income of $19.3 million, or $0.38 per diluted share, in the same period in 2011.
Fully diluted shares outstanding for the 2012 third quarter increased by 0.7% to 51.4 million from 51.1 million in last year’s third quarter. The increase was mainly due to shares issued as a result of Rockford meeting a defined performance target in 2011. During the 2012 third quarter, the Company did not repurchase any shares of stock under the previously announced share repurchase program.
OTHER FINANCIAL INFORMATION
Primoris’s balance sheet at September 30, 2012 included cash and cash equivalents of $76.7 million, working capital of $106.1 million, total debt and capital leases secured by equipment of $81.7 million and stockholders’ equity of $316.2 million. The balance sheet included a $14.9 million liability representing the estimated fair value for potential earn-out payments for Rockford’s financial performance for 2012, Sprint’s performance for 2012 and 2013, and Saxon’s performance for 2013 or 2014.
At September 30, 2012, total backlog was $1.14 billion compared to $1.17 billion at December 31, 2011. Primoris expects that approximately 26% of total backlog at September 30, 2012 will be recognized as revenue during the fourth quarter of 2012, with $155 million expected for the East Construction Services segment, $133 million for the West Construction Services segment and $8 million for the Engineering segment. Primoris expects that an additional 48% of backlog will be recognized as revenue in 2013.