PRIM Q Earnings Call February 28, 2019

Transcription

1 PRIM Q Earnings Call February 28, 2019

2 Disclosure Regarding Forward-Looking Statements This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, including with regard to the Company s future performance. Words such as "estimated," "believes," "expects," "projects," and "future" or similar expressions are intended to identify forward-looking statements. Forward-looking statements inherently involve risks, uncertainties, and assumptions that are difficult to predict or are beyond Primoris control. Prior to making an investment decision, please refer to the Risk Factors section and other portions of our annual Form 10-K and other filings with the Securities and Exchange Commission for additional information concerning some of the risks, uncertainties and assumptions that could affect our forward-looking statements. Forward-looking statements are based on management s current expectations at the time of this presentation. Primoris does not have any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. 2

3 2018 Q4 vs Q4 Key Items Revenues grew 52% to $877.7 million Net income grew 44% to $32.4 million Record MSA Backlog of $1.3 billion Cash Flow from Operations of $140 million Reduced Debt to Equity to 61% 3

4 2018 Fourth Quarter Summary Revenues $877.7 Net Income $32.4 $579.0 $ Q Q4 Operating Cash Flow $ Q Q4 Tangible Net Worth $358.3 $317.8 $ Q Q4 December 31, 2017 December 31,

5 2018 Full Year Summary Revenues Net Income $2,380.0 $2,939.5 $72.4 $ Operating Cash Flow $188.9 $ Tangible Net Worth $358.3 $ December 31, 2017 December 31,

6 Steadily Growing MSA Revenue $1,200 45% $1,000 38% 40% $800 35% $MMs $600 27% 29% 29% 28% 30% % Total Revenue $400 24% 24% 25% $200 20% $ MSA Revenue % Total Revenue 15% 6

7 Diverse Operating Segments Power, Industrial & Engineering 2018 Revenue: $694MM Backlog: $367MM Pipeline & Underground 2018 Revenue: $591MM Backlog: $703MM Utilities & Distribution 2018 Revenue: $903MM Backlog: $789MM Civil & Transportation 2018 Revenue: $465MM Backlog: $506MM Transmission & Distribution 2018 Revenue (7 months): $287MM Backlog: $395MM 7

8 Backlog Summary at 12/31/18 Backlog Mix Civil 18% Power 13% $3,000 $2,500 $2,000 Total Backlog ($MMs) $1, % Total CAGR Transmission 14% Utilities 29% Pipeline 26% $1,500 $1,000 $500 $ $1,548 $1,517 $2,126 $1,824 $445 $571 $672 $775 $1, MSA Fixed 30.3% MSA CAGR 8

9 2018 Q4 vs Q4 Segment Results ($MMs) 2018 Q4 Power Pipeline Utilities Transmission Civil TOTAL Revenue $178,670 $229,676 $237,558 $122,769 $108,997 $ 877,670 Gross Profit 33,115 23,034 32,862 12,225 2, ,253 Gross Margin 18.5% 10.0% 13.8% 10.0% 1.9% 11.8% 2017 Q4 Power Pipeline Utilities Transmission Civil TOTAL Revenue $162,934 $ 63,145 $230,077 N/A $122,861 $ 579,017 Gross Profit 13,177 12,512 36,336 N/A 6,452 68,477 Gross Margin 8.1% 19.8% 15.8% N/A 5.3% 11.8% 9

10 2018 vs Full Year Segment Results ($MMs) 2018 Power Pipeline Utilities Transmission Civil TOTAL Revenue $694,048 $590,937 $902,772 $286,749 $464,972 $ 2,939,478 Gross Profit 109,789 66, ,825 31,904 5, ,737 Gross Margin 15.8% 11.3% 12.4% 11.1% 1.2% 11.1% 2017 Power Pipeline Utilities Transmission Civil TOTAL Revenue $606,125 $465,570 $806,523 N/A $501,777 $ 2,379,995 Gross Profit 65,675 92, ,037 N/A 7, ,434 Gross Margin 10.8% 19.8% 14.0% N/A 1.5% 11.7% 10

11 Ten Years as a Public Company Growth and Diversification 2008 Segments $0.6 Billion Revenue 2018 Segments $2.9 Billion Revenue Civil 16% Power 23% Engineering 15% Construction Services 85% 17% CAGR Transmission 10% Utilities 31% Pipeline 20% 11

12 Growing Revenues While Controlling SG&A $3,000 $2,500 $2,000 $MMs $1,500 $1,000 $500 $ 5.2% 7.4% 6.9% 5.9% 6.3% 6.7% 6.3% 7.9% 7.0% 7.2% 6.2% Revenue SG&A 12

13 Strategy Leads to Growing Earnings per Share $1.70 $1.80 $1.40 $1.41 $1.50 $1.50 $ E 13 *2017 and 2018 earnings per fully diluted share are actual guidance is as of 2/28/19

14 2018 Key Takeaways Reached goal of ~$3B revenue MSA revenues at record levels Successful entry into the electric T&D market Paid down debt while maintaining a strong balance sheet Resolved disputed receivable 14

15 Investor Contact: Kate Tholking Vice President, Investor Relations (214) Corporate Contact: 2300 N. Field Street Suite 1900 Dallas, TX