PRIM Q Earnings Call May 8th, 2018

Transcription

1 PRIM Q Earnings Call May 8th, 2018

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 First Quarter Summary Profitable first quarter, $0.01 per fully diluted share Reconfirmed full year guidance of $1.50-$1.70 per fully diluted share Strong cash position of $134 million Debt to equity a conservative 44% Backlog remains strong $2.6 billion 3

4 Primoris Services Corporation by the Numbers 4 $2.3 Billion last 12 months Revenue EPS Guidance of $ 1.50 to $ 1.70 for Calendar Year 2018 $2.6 Billion Backlog 9,000+ Employees and over 8,000 Equipment Items 180 Offices and facilities Over 150,000 SF fabrication shops

5 Commitment to Core Values Diversity Safety Customer Contract Sustainability Core Values Relationships Four Cs of Risk Management Excellence Integrity Cash Cost Value No business objective is so important that it will be pursued at the sacrifice of safety. 5

6 Strategic Plan Continue to Grow Recurring Revenue Base MSA awards, both utility and non utility Investments in infrastructure Expansion into new geographic markets Increase Capabilities Internally and via M&A Additional self perform capabilities, targeting mid cap projects Willbros acquisition expected to add a new segment with transmission and distribution work Enhance Internal Processes Increase visibility into client projects and programs Hone bidding discipline and contract management Focus on quality, safety, execution, and growth 6

7 2018 First Quarter Summary $561.5 Revenues (in millions) $504.1 $7.7 Net Income (in millions) $ Q Q1 Operating Cash Flow (in millions) $ Q Q1 Tangible Net Worth (in millions) $341 $361 $ Q Q1 March 31, 2017 March 31, 2018

8 2018 First Quarter Backlog Summary Civil 23% Backlog Mix Power 15% $3 $3 $2 Total Backlog ($b) $2.8 $2.6 $2.6 $2.1 $1.9 $2.0 $2 Utilities 32% Pipeline 30% $1 $1 $ Q

9 Steadily Growing MSA Revenue $2,500 $2,000 Non-MSA Revenue 7.1% CAGR $1,500 $1,000 MSA Revenue 10.8% CAGR $500 $412 $463 $502 $565 $576 $665 $706 $ LTM 2018 MSA Revenue Non-MSA 9 *Values in $ millions.

10 Operating Segments Primoris Services Corporation 2018 Q1 Revenue: $504MM 2018 Q1 Backlog: $2.6B Power, Industrial & Engineering Pipeline & Underground Utilities & Distribution Civil Revenue: $167MM Backlog: $379MM Revenue: $58MM Backlog: $789MM Revenue: $167MM Backlog: $841MM Revenue: $113MM Backlog: $597MM 10

11 $167 $24 $577 Power, Industrial, & Engineering $131 Q Q $16 Q Q Outlook Industrial and turnaround market expected to grow in California due to SB 54 Growing renewable power market Q Q Revenues Gross Profit Backlog Opportunities for engineering and EPC awards along Gulf Coast USA $ *Values in $ millions.

12 $117 $167 $8 $9 $672 $841 Utilities & Distribution Q Q Q Q Q Q Revenues Gross Profit Backlog 2018 Outlook MSA revenue at all time high Q3C expanding into new geographies across Midwest Primoris Distribution Services acquisition a positive contributor in Southeast market 12 *Values in $ millions.

13 $183 $28 $917 $789 Pipeline & Underground $58 $8 Q Q Q Q Q Q Revenues Gross Profit Backlog 2018 Outlook Anticipate June/July start date to ACP project Small diameter pipeline market is improving Micro tunneling market looks strong Coastal Field Services and Primoris Field Services integration expected to lead to lower overhead costs for the remainder of the year 13 *Values in $ millions.

14 $130 $113 $3 $4 $632 $597 Q Q Q Q Q Q Civil Revenues Gross Profit Backlog 2018 Outlook Airport and port infrastructure opportunities look promising I&M partnering with other Primoris business units 14 *Values in $ millions.

15 Growing Earnings per Share $1.80 $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.51 $1.40 $1.70 $1.50 Guidance 15 $ E *2016 and 2017 earnings per fully diluted share are actual is guidance as of 5/8/18.

16 Appendix

17 2017 Full Year Summary 2017 net income attributable to Primoris of $72.4 million, or $1.40 per fully diluted share As a result of a tax law change, we remeasured our deferred tax assets and liabilities, which provided a one-time benefit of $9.4 million in 2017, or $0.18 per fully diluted share 2017 revenues of $2.4 billion Record 2017 cash flow from operations of $188.9 million Ending Backlog of $2.6 Billion at December 31, 2017 EPS Guidance of $1.50 to $1.70 per share for CY

18 2017 Full Year Summary $2.0 Revenues (in billions) +20% $2.4 $26.7 Net Income (in millions) +171% $ Operating Cash Flow (in millions) $188.9 $337.3 Tangible Net Worth (in millions) $358.3 $ % +6% December 31, 2016 December 31, 2017

19 Power, Industrial, & Engineering 19

20 Utilities & Distribution 20

21 Pipeline & Underground 21

22 Civil 22

23 Investor Contact: Kate Tholking Director of Investor Relations Corporate Contact: 2100 McKinney Ave, Suite 1500 Dallas, TX