(Nasdaq GM: PRIM) One of the Largest Specialty Contractors and Infrastructure Companies in the United States. November 2010

Transcription

1 (Nasdaq GM: PRIM) One of the Largest Specialty Contractors and Infrastructure Companies in the United States November 2010

2 Safe Harbor This presentation contains certain forward-looking statements, including with regard to the Company s future performance. Words such as "estimated estimated, " "believes," "expects," "projects," and "future" or similar expressions are intended to identify forward-looking statements. Forward-looking statements inherently involve risks and uncertainties, including without limitation, those described in this presentation and those detailed in the "Risk Factors" section and other portions of our Annual Report on Form 10-K for the year ended d December 31, 2009 and other filings with the Securities and Exchange Commission, including the Company s Form 10-Q filed on November 9, Primoris does not undertake 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 Investment Highlights Diverse operating profile, growing North American footprint Financial stability Announced or acquired $900+ million in new contracts YTD 2010 Approaching $1.0 billion in revenues $1.0 billion backlog 60-year history of disciplined growth and expansion Proven management team with significant equity ownership 3

4 Diverse Operating Platform Pipeline Heavy Civil Infrastructure Power Generation Water & Wastewater LNG Refineries Chemical Bridge & Highway Airport Marine Concrete Structures t Specialized Heaters Renewable Energy Approximately 10 Master Service Agreements Strategic t Investments t / Subsidiaries i Industrial Heavy Civil Infrastructure Underground JELD-WEN Texas DOT Marathon Petroleum Kern River Fiber Plant Construction I-35 Refinery Expansion Pipeline $18.8 Million $107 Million $60 Million $46 Million 4

5 Longstanding Relationships 5

6 Successful Acquisition History ($ in millions) $ 800 Merger into Rhapsody Acquisition Corp. Debut as Public Company Acquired November $598 $ OFC 1991 Harco OFFCO MACCO Saffel McAdams $224 $320 $348 $357 $430 $467 0 $70 $ mos Revenues reflect impact of discontinued operations 6

7 Financial Stability (Data as of September 30, 2010) Cash & Short-term Investments: $ million / $2.29 per diluted share Debt-to-Equity Ratio: 0.54:1 Book Value Per Share: $ 3.83 Annual Cash Dividend: $ 0.10 Bonding Capacity: $ 1.2 billion Return on Equity (1) 30% 25% 20% 15% 10% 5% Mean ROE Utility Infrastructure Companies 2.1% Mean ROE Oil & Gas Infrastructure Companies 3.7% Mean ROE Large Scale Infrastructure Companies 12.1% 1% Primoris Services Corporation 25.7% 0% (1) Source: Capital IQ, ttm as of 6/30/10 7

8 JAMES CONSTRUCTION GROUP Heavy Civil, Industrial, and Infrastructure & Maintenance Construction Activities One of the largest construction companies in the southeastern United States Acquired December 18, 2009 Added $350 - $400 million in annual revenues Expanded presence and service offering to entire Gulf Coast region, from Texas to Florida Quality, proven management team continues to operate company Workforce of ~ 1,700 brings total Primoris workforce to ~ 3,000 55% + of total consideration paid in Primoris stock 8

9 Large Diameter Natural Gas & Liquid Pipeline Projects Acquired November 13, 2010, retroactive to October 1, 2010 Expands Primoris s presence in Pacific Northwest; little service overlap Greater focus on larger-scalel mainline pipeline projects complements Primoris s specialized underground pipeline work Expected to be immediately accretive: Rockford began working on Ruby Pipeline Project in June 2010 Expected to add $200 million in total revenues in 2010 and 2011 Management team will continue to operate company 25% of the total consideration consists of Primoris stock, weighted towards Rockford management 9

10 Source: RubyPipeline.com 10

11 North American Operations Calgary Construction Services Office Engineering Office ARB /OnQuest Headquarters Rockford Headquarters James Headquarters Primoris Headquarters (1/2011) 11

12 East Construction Services Segment Estimated 40-50% of 2010 Revenue Heavy Civil Division Infrastructure & Maintenance Industrial Division Water & Wastewater Road and bridge, airport runway and taxi construction, marine dock and wharf facilities. Primarily public sector. Earthwork and site development, drainage structure and piping installation, landfill construction, site remediation, gypsum stack maintenance, mining support. Civil / infrastructure, mechanical equipment erection, and process pipe installation. Mostly private clients. Designs and constructs water and wastewater treatment facilities, reverse osmosis facilities, and central water plants. 12

13 West Construction Services Segment Estimated 40-45% of 2010 Revenue Underground Installs, replaces, repairs and maintains pipelines for transmission & distribution, water & sewer, oil & gas, petrochemical, and power & communications structures. Industrial Power generation, water & wastewater, LNG, oil & gas production and processing installations, chemical facilities, and refineries. Structures Designs and constructs complex commercial and industrial cast-in-place concrete structures. Renewables Bidding on large contracts in renewable energy work. 13

14 Engineering Segment Estimated 6-9% of 2010 Revenue Designs, supplies, fabricates and installs: High-performance furnaces Heaters LNG facilities Burner management systems Turnkey project management and custom solutions Worldwide reach Serving oil refineries, petrochemical, power generation facilities 14

15 Opportunities Diversification through controlled expansion Emphasis on retaining existing customers and recurring revenue Selective bidding Utility scale renewable energy projects Currently bidding on contracts Agnostic approach Associated build-out (i.e. transmission grid) Expand EPC Create access to new projects Value-added engineering opportunities Shared savings arrangements Selective acquisitions Military / DoD projects Lever James Construction and Rockford platforms WesPac Energy LLC Strategic Investment 15

16 Proven, Experienced Management Executive management team owns approximately 50% of Primoris NAME TITLE YEARS WITH PRIMORIS (1) INDUSTRY EXPERIENCE Brian Pratt Chairman, President & CEO 34 Years 34 Years Michael D. Killgore EVP, Director of Construction Services 32 Years 32 Years Scott E. Summers President, Underground 25 Years 25 Years Timothy R. Healy President, Industrial 25 Years 25 Years Mark Thurman President, ARB Structures 5 Years 25 Years William J. McDevitt President, Cardinal Contractors 5 Years 26 Years David Baker President & COO, Onquest, Inc. 7 Years 40 Years Danny L. Hester President, James Construction Group, LLC 8 Years 36 Years Peter J. Moerbeek EVP, Chief Financial Officer 1 Year 20 Years John P. Schauerman EVP, Corporate Development 17 Years 17 Years R. Steve Lewis SVP, Government Contracting Services Years Primoris is led by an experienced senior management team with more than 25 years average relevant experience, committed to continuing growth of the Company (1) Including predecessor companies 16

17 Financial Results Overview

18 Revenue by Client Type 2009 Total Revenues = $467 million 9 Months Ended 9/30/2010 Total Revenues = $609 million 15% 85% 45% 55% Public Agency Private 18

19 Consolidated Gross Profit / Margin ($ in millions) (% of total revenues) $ % 18 % $100 $80 $60 $40 $ % $ % $70.0 $ % $ % 14% 12% 10% 8% 6% 4% 2% As % of total re evenues $ mos

20 Backlog ($ in millions) $1,000 $968 (1, 2) Utilize percentage-of-completion $900 $800 $765 $824 $873 Certain projects have low level of backlog due to shorter duration of average projects In 2009 ~$135.3 million of revenues (Primoris and James Construction Group) were generated by projects not included in backlog Expect ~19% of total backlog at September 30, 2010 will be recognized as revenue during 2010 $700 $600 $500 $400 $300 $200 $219 $310 $272 $337 $100 (1) Backlog should not be considered a comprehensive indicator of future revenues, as a significant portion of Primoris s revenues are derived from projects that are not part of a backlog calculation. (2) Rockford s Ruby Pipeline contract is cost-reimbursable, and therefore will not be included in backlog. $0 12/31/09 3/31/10 6/30/10 9/30/10 20

21 Capitalization Shares Common stock outstanding at 10/2/10 Rockford acquisition shares Shares outstanding at 12/31/ million 1.6 million 49.4 million 2010 acquisition-related earnout shares 1.9 million 2011 acquisition-related earnout shares 0.4 million Potential shares outstanding 51.7 million Underwriter Purchase Option ($8.80) 0.5 million (cashless) Q estimated weighted average shares outstanding: 49.5 million Full Year 2010 estimated weighted average shares outstanding: 46.5 million 21

22 Summary Experienced management team with significant ownership Major acquisitions have more than doubled our size, and broadened geographic and services reach Long-term relationships with well-financed, key customers Infrastructure opportunities in fast-growing states Positioned to take advantage of renewable energy and military opportunities Strong balance sheet, with organic and acquisition-driven growth opportunities 22

23 Nasdaq GM: PRIM Kern River Turlock Irrigation- HRSG Newmont Energy LADOTD Elevated Roadway Gilroy Energy Center LNG Plant Clean Energy Sunrise Power Plant Marathon Coker Structure 6 inch Gas Distribution Boca Raton WWTP USC Parking Structure Mosaic Mine Support 23