This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Primoris Services Corporation Announces 2012 Fourth Quarter And Full Year Financial Results


  • East Construction Services - located primarily in the southeastern United States, incorporates the construction business of James Construction Group (JCG), Cardinal Contractors, Inc., Sprint Pipeline Services LP, acquired March 2012, and The Saxon Group, acquired September 2012. Silva, acquired May 2012, was merged with the operations of JCG.
  • West Construction Services - includes construction services performed by companies headquartered in the western United States including ARB, Inc., ARB Structures, Inc., Rockford, and Q3 Contracting Inc., acquired November 2012. The Blythe Power Constructors joint venture is also included as part of West Construction Services.
  • Engineering - incorporates the results of OnQuest, Inc. and Born Heaters Canada, ULC.

Segment Revenues

(in thousands, except %)

For the three months ended December 31,


    % of     % of
Total Total

Revenue Revenue Revenue Revenue
East Construction Services $ 203,081 42.2 % $ 125,446 33.6 %
West Construction Services 265,509 55.2 % 234,093 62.8 %
Engineering   12,293 2.6 %   13,527 3.6 %
Total $ 480,883 100.0 % $ 373,066 100.0 %


Segment Gross Profit

(in thousands, except %)
For the three months ended December 31,


% of % of
Gross Segment Gross Segment

Profit Revenue Profit Revenue
East Construction Services $ 16,369 8.1 % $ 11,460 9.1 %
West Construction Services 35,031 13.2 % 37,557 16.0 %
Engineering   3,419 27.8 %   2,029 15.0 %
Total $ 54,819 11.4 % $ 51,046 13.7 %

East Construction Services: Revenues increased by $77.6 million in the 2012 fourth quarter, primarily due to the contribution from Primoris Energy Services (“PES”), which includes the March 2012 acquisition of Sprint and the September 2012 acquisition of Saxon. Excluding the impact of PES, revenues increased by $26.1 million due primarily to increased James industrial work in petrochemical and fertilizer facilities as a result of low natural gas prices in the Gulf Coast. Gross profit increased by $4.9 million in the 2012 fourth quarter, including $5.2 million of gross profit contribution from PES. Excluding the impact of PES, gross profit decreased by $0.4 million, primarily a result of lower profit margins on the startup projects in the Belton, TX area. Over time, we expect these projects to generate gross profit at historical heavy civil levels.

West Construction Services: Revenues increased by $31.4 million in the 2012 fourth quarter, due primarily to contributions from pipeline work and the acquisition of Q3 Contracting, which generated $12.8 million in revenue after its November 19, 2012 acquisition. Gross profit for the 2012 fourth quarter decreased by $2.5 million, as 2011 fourth quarter Rockford gross profit included the Ruby pipeline project.

Engineering: Revenues decreased by $1.2 million, mainly due to lower order activity across the operation. Gross profit increased by $1.4 million, primarily as we neared completion of a major project in Australia.

Selling, general and administrative expenses (“SG&A”) were $26.7 million, or 5.6% of revenues for the 2012 fourth quarter, compared to $25.8 million, or 6.9% of revenues for the 2011 fourth quarter. The increased SG&A included a $4.5 million increase attributable to the acquired companies of Sprint, Saxon, and Q3 Contracting and a $2.4 million increase in compensation, legal, consulting and acquisition related expenses, offset by a $3.5 million settlement with the sellers of Rockford and a $2.5 million reduction from Q4 2011 in pension withdrawal liability expense.

2 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs