Primoris Services Corporation (NASDAQ GS: PRIM)
(“Primoris” or “Company”) today announced financial results for its fourth quarter and year ended December 31, 2012.
The Company also announced that on March 5, 2013 its Board of Directors declared a $0.03 per share cash dividend to stockholders of record on March 29, 2013, payable on or about April 15, 2013.
Brian Pratt, Chairman, President and Chief Executive Officer of Primoris, commented, “2012 was a year of records for Primoris. Our revenue for both the quarter and the year were at record levels, with a healthy combination of both organic and acquisitive growth. Our fourth quarter net income of $17 million is the best fourth quarter in Primoris’ history, and is a testament to our focus on building a balanced company with numerous sources of growth. We generated record cash flow from operations of $98.4 million in 2012, and our balance sheet at December 31, 2012 included $161.0 million in cash and short term investments, our highest level to date. Our debt-to-equity ratio increased to 46.7% as we took advantage of historic low interest rates to raise $50 million in long-term debt. Our final record for the year was our ending backlog value, an impressive $1.35 billion.”
Mr. Pratt continued, “Primoris is a group of specialized construction and infrastructure companies serving diverse end markets across the United States. Our ongoing focus is on energy infrastructure, encompassing everything from midstream gathering and transportation lines to power generation to downstream refining and petrochemical facilities. Though the country at large is still experiencing the effects of the economic turmoil of the past few years, Primoris and the markets we focus on are benefitting from strong tailwinds. Our team of exceptional men and women are ready to capitalize on that growth in 2013.”
2012 FOURTH QUARTER RESULTS OVERVIEW
Revenues for the 2012 fourth quarter increased 29% to $480.9 million from $373.1 million for the same period in 2011. The increased revenues are largely due to increased pipeline work in the West Construction Services segment and increased industrial work in the East Construction Services segment, as well as the impact of Primoris’ 2012 acquisitions of Sprint, Saxon, and Q3 Contracting, which contributed $64.3 million in revenues for the three months ended December 31, 2012. Gross profit for the 2012 fourth quarter rose by 7.4% to $54.8 million, or 11.4% of revenues, from $51.0 million, or 13.7% of revenues, in the 2011 fourth quarter. The decline in gross margin percentage can be attributed primarily to the completion of the Ruby pipeline project in 2011 and the lower margins associated with the startup of the highway projects in the Belton, Texas area in 2012.