Primoris Services Corporation (NYSE: PRIM) (“Primoris” or
the “Company”) today announced financial results for its second
quarter ended June 30, 2024 and provided comments on the Company’s
operational performance and outlook for 2024.
For the second quarter of 2024, Primoris reported the
following highlights (1):
- Revenue of $1,563.7 million, up $150.3 million, or 10.6
percent, compared to the second quarter of 2023 driven by strong
growth in the Energy segment;
- Net income of $49.5 million, or $0.91 per diluted share, an
increase of $10.5 million, or $0.19 per diluted share, from the
second quarter of 2023;
- Adjusted net income of $57.1 million, or $1.04 per diluted
share, an increase of $13.7 million, or $0.24 per diluted share,
from the second quarter of 2023;
- Adjusted earnings before interest, income taxes, depreciation,
and amortization (“Adjusted EBITDA”) of $117.1 million, up $14.7
million, or 14.4 percent, from the second quarter of 2023.
- Raising EPS and Adjusted EPS guidance ranges to $2.70 to $2.90
and $3.25 to $3.45 per diluted share, respectively.
(1)
Please refer to “Non-GAAP Measures” and
Schedules 1, 2, 3 and 4 for the definitions and reconciliations of
our Non-GAAP financial measures, including “Adjusted Net Income,”
“Adjusted EPS” and “Adjusted EBITDA.”
“Primoris delivered another excellent quarter achieving solid
revenue growth and improved profitability,” said Tom McCormick,
President and Chief Executive Officer of Primoris. “The demand for
our services remains strong across many of our end markets and we
continue to win work with our customers, who value our partnership
to provide safe and quality performance on their projects.”
“We are growing profitability and cash flow through focused
capital allocation, and our second quarter results demonstrate
early success toward achieving our objectives. We are capitalizing
on the growing trend for additional solar and natural gas power
generation sources while helping build and maintain our power
delivery, gas, and communications infrastructure,” he added.
“Primoris is well-positioned to grow and serve our customers in the
years ahead as they invest to meet the infrastructure needs of
North America that will support emerging technologies and drive
economic growth.”
“As we progress through the second half of the year, I am
confident we will stay focused on safely and efficiently serving
our customers to exceed our goals for 2024 and move us further down
the path toward our strategic goals.”
Second Quarter 2024 Results
Overview Revenue was $1,563.7 million for the three
months ended June 30, 2024, an increase of $150.3 million, or 10.6
percent, compared to the same period in 2023. The increase was
primarily due to strong growth across our renewables and industrial
construction businesses, partially offset by lower activity in
pipeline and gas utilities. Gross profit was $186.7 million for the
three months ended June 30, 2024, an increase of $29.4 million, or
18.7 percent, compared to the same period in 2023. The increase was
primarily due to an increase in Energy segment revenue and improved
margins in both segments. Gross profit as a percentage of revenue
increased to 11.9 percent for the three months ended June 30, 2024,
compared to 11.1 percent for the same period in 2023. The increase
was primarily as a result of a favorable mix of higher margin
renewable work, a strong performance in the industrial businesses,
and improved execution in the Utilities segment.
During the second quarter of 2024, net income was $49.5 million
compared to net income of $39.0 million in the prior year. Diluted
earnings per share (“EPS”) was $0.91 for the second quarter of 2024
compared to $0.72 for the same period in 2023. The increase in net
income and diluted earnings can be largely attributed to higher
operating income from higher revenue and improved margins in both
segments. Adjusted Net Income was $57.1 million for the second
quarter, compared to $43.4 million for the same period in 2023.
Adjusted diluted EPS was $1.04 for the second quarter of 2024,
compared to $0.80 for the second quarter of 2023. The increase in
adjusted net income and adjusted diluted EPS was due to higher net
income and an unrealized gain on interest rate swap recognized in
the second quarter of 2023. Adjusted EBITDA was $117.1 million for
the second quarter of 2024, compared to $102.4 million for the same
period in 2023.
The current reportable segments include the Utilities segment
and the Energy segment. Revenue and gross profit for the segments
for the three and six months ended June 30, 2024, and 2023 were as
follows:
Segment
Revenue (in thousands, except
%) (unaudited)
For the three months ended
June 30,
2024
2023
Segment
Revenue
Revenue
Utilities
$
620,798
$
649,238
Energy
973,492
778,715
Intersegment Eliminations
(30,575
)
(14,576
)
Total
$
1,563,715
$
1,413,377
For the six months ended June
30,
2024
2023
Segment
Revenue
Revenue
Utilities
$
1,108,722
$
1,183,001
Energy
1,921,070
1,506,371
Intersegment Eliminations
(53,370
)
(19,099
)
Total
$
2,976,422
$
2,670,273
Segment Gross
Profit (in thousands, except %)
(unaudited)
For the three months ended
June 30,
2024
2023
% of
% of
Segment
Segment
Segment
Gross Profit
Revenue
Gross Profit
Revenue
Utilities
$
64,066
10.3
%
$
66,510
10.2
%
Energy
122,644
12.6
%
90,754
11.7
%
Total
$
186,710
11.9
%
$
157,264
11.1
%
For the six months ended June
30,
2024
2023
% of
% of
Segment
Segment
Segment
Gross Profit
Revenue
Gross Profit
Revenue
Utilities
$
93,545
8.4
%
$
100,081
8.5
%
Energy
226,541
11.8
%
156,916
10.4
%
Total
$
320,086
10.8
%
$
256,997
9.6
%
Utilities Segment (“Utilities”): Revenue decreased by
$28.4 million, or 4.4 percent, for the three months ended June 30,
2024, compared to the same period in 2023, primarily due to the
substantial completion of a major substation in our power delivery
business in 2023 and lower activity in gas operations. These
impacts were partially offset by increased renewable energy
transmission and substation projects and increased activity in
communications. Gross profit for the three months ended June 30,
2024, was lower by $2.4 million, or 3.7 percent compared to the
same period in 2023 on lower revenue. Gross profit as a percentage
of revenue was 10.3 percent for the three months ended June 30,
2024, up slightly from 10.2 percent for the same period in
2023.
Energy Segment (“Energy”): Revenue increased by $194.8
million, or 25.0 percent, for the three months ended June 30, 2024,
compared to the same period in 2023. The increase was primarily due
to increased renewables and industrial construction activity,
partially offset by lower pipeline activity. Gross profit for the
three months ended June 30, 2024, increased by $31.9 million, or
35.1 percent, compared to the same period in 2023, primarily due to
higher revenue and margins. Gross profit as a percentage of revenue
increased to 12.6 percent during the three months ended June 30,
2024, compared to 11.7 percent in the same period in 2023. The
increase in gross margin is primarily due to strong execution on
natural gas generation projects in the western U.S. and the
increase in renewables revenue.
Other Income Statement
Information
Selling, general and administrative (“SG&A”) expenses were
$100.1 million during the quarter ended June 30, 2024, an increase
of $14.5 million, or 17.0 percent, compared to 2023. The increase
was primarily due to an increase in personnel costs to support
revenue growth and higher technology costs associated with ongoing
initiatives. SG&A expense as a percentage of revenue increased
to 6.4 percent in the second quarter of 2024, compared to 6.1
percent in the second quarter 2023.
Interest expense, net for the quarter ended June 30, 2024, was
$17.1 million compared to $16.9 million for the quarter ended June
30, 2023. The increase of $0.2 million was primarily due to a $0.4
million unrealized loss on our interest rate swap in 2024 compared
to a $3.2 million unrealized gain in 2023, mostly offset by lower
average debt balances. Interest expense for the full year 2024 is
expected to be $71 to $74 million due to lower average debt
balances.
The effective tax rate on income for the six months ended June
30, 2024, of 29.0% differs from the U.S. federal statutory rate of
21.0% primarily due to state income taxes and nondeductible
components of per diem expenses. We recorded income tax expense for
the six months ended June 30, 2024, of $28.0 million compared to
$16.5 million for the six months ended June 30, 2023. The $11.5
million increase in income tax expense is driven by higher pre-tax
income.
Outlook The Company is
raising its estimates for the year ending December 31, 2024. Net
income is expected to be between $148.5 million and $159.5 million,
or $2.70 and $2.90 per fully diluted share. Adjusted EPS is
estimated in the range of $3.25 to $3.45 per fully diluted share.
Adjusted EBITDA for full year 2024 is expected to range from $400
million to $420 million.
The Company is targeting SG&A expense as a percentage of
revenue in the low six percent range for full year 2024. The
Company’s targeted gross margins by segment are as follows:
Utilities in the range of 9 to 11 percent and Energy in the range
of 10 to 12 percent. The Company expects its effective tax rate for
2024 to be approximately 29 percent, but it may vary depending on
the mix of states in which the Company operates.
Adjusted EPS and Adjusted EBITDA are non-GAAP financial
measures. Please refer to “Non-GAAP Measures” and Schedules 1 - 4
below for the definitions and reconciliations. The guidance
provided above constitutes forward-looking statements, which are
based on current economic conditions and estimates, and the Company
does not include other potential impacts, such as changes in
accounting or unusual items. Supplemental information relating to
the Company’s financial outlook is posted in the Investor Relations
section of the Company’s website at www.prim.com.
Backlog
(in millions)
June 30, 2024
December 31, 2023
Next 12 Months
Total
Next 12 Months
Total
Utilities
Fixed Backlog
$
68.7
$
68.7
$
96.3
$
96.3
MSA Backlog
1,821.4
5,171.9
1,776.5
5,093.6
Backlog
$
1,890.1
$
5,240.6
$
1,872.8
$
5,189.9
Energy
Fixed Backlog
$
2,207.6
$
4,798.4
$
2,599.0
$
5,102.6
MSA Backlog
159.1
414.8
308.2
602.4
Backlog
$
2,366.7
$
5,213.2
$
2,907.2
$
5,705.0
Total
Fixed Backlog
$
2,276.3
$
4,867.1
$
2,695.3
$
5,198.9
MSA Backlog
1,980.5
5,586.7
2,084.7
5,696.0
Backlog
$
4,256.8
$
10,453.8
$
4,780.0
$
10,894.9
At June 30, 2024, total Fixed Backlog was $4.9 billion, flat
compared to March 31, 2024, and a decrease of $0.3 billion, or 6.4
percent compared to December 31, 2023. Total MSA Backlog was $5.6
billion, a decrease of $0.2 billion, or 3.4 percent, compared to
March 31, 2024, and $0.1 billion, or 1.9 percent, compared to
December 31, 2023. Total Backlog as of June 30, 2024, was $10.5
billion, including Utilities backlog of approximately $5.3 billion
and Energy backlog of $5.2 billion. The decrease in backlog
sequentially and from year end 2023 is primarily due to the timing
of fixed backlog awards in the Energy segment.
Backlog, including estimated MSA revenue, should not be
considered a comprehensive indicator of future revenue. Revenue
from certain projects where scope, and therefore contract value, is
not adequately defined, is not included in Fixed Backlog. At any
time, any project may be cancelled at the convenience of the
Company’s customers.
Balance Sheet and Capital
Allocation At June 30, 2024, the Company had $207.4
million of unrestricted cash and cash equivalents. In the second
quarter of 2024, capital expenditures were $24.2 million, including
$9.6 million in construction equipment purchases. Capital
expenditures for the six months ended June 30, 2024, were $34.6
million, including $14.5 million in construction equipment
purchases. For the remaining six months of 2024, capital
expenditures are expected to total between $45.0 million and $65.0
million, which includes $5.0 million to $25.0 million for
equipment.
The Company also announced that on July 31, 2024, its Board of
Directors declared a $0.06 per share cash dividend to stockholders
of record on September 27, 2024, payable on approximately October
11, 2024. During the six months ended June 30, 2024 the Company did
not purchase any shares of common stock under its share purchase
program. As of June 30, 2024, the Company had $25.0 million
remaining for purchase under the share purchase program. The share
purchase plan currently expires on December 31, 2024.
Conference Call and Webcast
As previously announced, management will host a conference call and
webcast on Tuesday, August 6, 2024, at 9:00 a.m. U.S. Central Time
(10:00 a.m. U.S. Eastern Time). Tom McCormick, President and Chief
Executive Officer, and Ken Dodgen, Executive Vice President and
Chief Financial Officer, will discuss the Company’s results and
business outlook.
Investors and analysts are invited to participate in the call by
phone at 1-800-715-9871, or internationally at 1-646-307-1963
(access code: 1324356) or via the Internet at www.prim.com. A
replay of the call will be available on the Company’s website or by
phone at 1-800-770-2030, or internationally at 1-609-800-9909
(access code: 1324356), for a seven-day period following the
call.
Presentation slides to accompany the conference call are
available for download under “Events & Presentations” in the
“Investors” section of the Company’s website at www.prim.com.
Non-GAAP Measures This press
release contains certain financial measures that are not recognized
under generally accepted accounting principles in the United States
(“GAAP”). Primoris uses earnings before interest, income taxes,
depreciation, and amortization (“EBITDA”), Adjusted EBITDA,
Adjusted Net Income, and Adjusted EPS as important supplemental
measures of the Company’s operating performance. The Company
believes these measures enable investors, analysts, and management
to evaluate Primoris’ performance excluding the effects of certain
items that management believes impact the comparability of
operating results between reporting periods. In addition,
management believes these measures are useful in comparing the
Company’s operating results with those of its competitors. The
non-GAAP measures presented in this press release are not intended
to be considered in isolation or as a substitute for, or superior
to, the financial information prepared and presented in accordance
with GAAP. In addition, Primoris’ method of calculating these
measures may be different from methods used by other companies,
and, accordingly, may not be comparable to similarly titled
measures as calculated by other companies that do not use the same
methodology as Primoris. Please see the accompanying tables to this
press release for reconciliations of the following non‐GAAP
financial measures for Primoris’ current and historical results:
EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS.
About Primoris Primoris
Services Corporation is a leading provider of critical
infrastructure services to the utility, energy, and renewables
markets throughout the United States and Canada. Built on a
foundation of trust, we deliver a range of engineering,
construction, and maintenance services that power, connect, and
enhance society. On projects spanning utility-scale solar,
renewables, power delivery, communications, and transportation
infrastructure, we offer unmatched value to our clients, a safe and
entrepreneurial culture to our employees, and innovation and
excellence to our communities. To learn more, visit www.prim.com
and follow us on social media at @PrimorisServicesCorporation.
Forward Looking Statements
This press release contains certain forward-looking statements,
including the Company’s outlook, that reflect, when made, the
Company’s expectations or beliefs concerning future events that
involve risks and uncertainties, including with regard to the
Company’s future performance. Forward-looking statements include
all statements that are not historical facts and can be identified
by terms such as “anticipates”, “believes”, “could”, “estimates”,
“expects”, “intends”, “may”, “plans”, “potential”, “predicts”,
“projects”, “should”, “targets”, “will”, “would” or similar
expressions. Forward-looking statements include information
concerning the possible or assumed future results of operations,
business strategies, financing plans, competitive position,
industry environment, potential growth opportunities, the effects
of regulation and the economy, generally. Forward-looking
statements involve known and unknown risks, uncertainties, and
other factors, which may cause actual results, performance, or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements. Actual results may differ materially as
a result of a number of factors, including, among other things,
customer timing, project duration, weather, and general economic
conditions; changes in the mix of customers, projects, contracts
and business; regional or national and/or general economic
conditions and demand for the Company’s services; price,
volatility, and expectations of future prices of oil, natural gas,
and natural gas liquids; variations and changes in the margins of
projects performed during any particular quarter; increases in the
costs to perform services caused by changing conditions; the
termination, or expiration of existing agreements or contracts; the
budgetary spending patterns of customers; inflation and other
increases in construction costs that the Company may be unable to
pass through to customers; cost or schedule overruns on fixed-price
contracts; availability of qualified labor for specific projects;
changes in bonding requirements and bonding availability for
existing and new agreements; the need and availability of letters
of credit; increases in interest rates and slowing economic growth
or recession; the instability in the banking system; costs incurred
to support growth, whether organic or through acquisitions; the
timing and volume of work under contract; losses experienced in the
Company’s operations; the results of the review of prior period
accounting on certain projects and the impact of adjustments to
accounting estimates; developments in governmental investigations
and/or inquiries; intense competition in the industries in which
the Company operates; failure to obtain favorable results in
existing or future litigation or regulatory proceedings, dispute
resolution proceedings or claims, including claims for additional
costs; failure of partners, suppliers or subcontractors to perform
their obligations; cyber-security breaches; failure to maintain
safe worksites; risks or uncertainties associated with events
outside of the Company’s control, including conflicts in the Middle
East and between Russia and Ukraine, severe weather conditions,
public health crises and pandemics, political crises or other
catastrophic events; client delays or defaults in making payments;
the cost and availability of credit and restrictions imposed by
credit facilities; failure to implement strategic and operational
initiatives; risks or uncertainties associated with acquisitions,
dispositions and investments; possible information technology
interruptions, cybersecurity threats or inability to protect
intellectual property; the Company’s failure, or the failure of the
Company’s agents or partners, to comply with laws; the Company's
ability to secure appropriate insurance; new or changing political
conditions and legal requirements, including those relating to
environmental, health and safety matters; the loss of one or a few
clients that account for a significant portion of the Company's
revenues; asset impairments; and risks arising from the inability
to successfully integrate acquired businesses. In addition to
information included in this press release, additional information
about these and other risks can be found in Part I, Item 1A “Risk
Factors” of the Company’s Annual Report on Form 10-K for the year
ended December 31, 2023, and the Company’s other filings with the
U.S. Securities and Exchange Commission (“SEC”). Such filings are
available on the SEC’s website at www.sec.gov. Given these risks
and uncertainties, you should not place undue reliance on
forward-looking statements. 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.
PRIMORIS SERVICES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In Thousands, Except
Per Share Amounts) (Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
Revenue
$
1,563,715
$
1,413,377
$
2,976,422
$
2,670,273
Cost of revenue
1,377,005
1,256,113
2,656,336
2,413,276
Gross profit
186,710
157,264
320,086
256,997
Selling, general and administrative
expenses
100,118
85,571
188,706
163,581
Transaction and related costs
522
898
1,072
3,593
Operating income
86,070
70,795
130,308
89,823
Other income (expense):
Foreign exchange gain, net
761
376
1,321
1,302
Other income (expense), net
81
713
(45
)
1,044
Interest expense, net
(17,133
)
(16,884
)
(35,125
)
(35,349
)
Income before provision for income
taxes
69,779
55,000
96,459
56,820
Provision for income taxes
(20,236
)
(15,968
)
(27,973
)
(16,478
)
Net income
49,543
39,032
68,486
40,342
Dividends per common share
$
0.06
$
0.06
$
0.12
$
0.12
Earnings per share:
Basic
$
0.92
$
0.73
$
1.28
$
0.76
Diluted
$
0.91
$
0.72
$
1.26
$
0.75
Weighted average common shares
outstanding:
Basic
53,640
53,301
53,565
53,243
Diluted
54,653
54,324
54,522
54,083
PRIMORIS SERVICES CORPORATION
CONSOLIDATED BALANCE SHEETS (In Thousands)
(Unaudited)
June
30,
December
31,
2024
2023
ASSETS
Current assets:
Cash and cash equivalents
$
207,363
$
217,778
Accounts receivable, net
888,267
685,439
Contract assets
873,008
846,176
Prepaid expenses and other current
assets
122,583
135,840
Total current assets
2,091,221
1,885,233
Property and equipment, net
446,314
475,929
Operating lease assets
421,024
360,507
Intangible assets, net
217,283
227,561
Goodwill
857,650
857,650
Other long-term assets
16,396
20,547
Total assets
$
4,049,888
$
3,827,427
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
583,664
$
628,962
Contract liabilities
483,878
366,476
Accrued liabilities
324,732
263,492
Dividends payable
3,217
3,202
Current portion of long-term debt
89,270
72,903
Total current liabilities
1,484,761
1,335,035
Long-term debt, net of current portion
843,758
885,369
Noncurrent operating lease liabilities,
net of current portion
308,114
263,454
Deferred tax liabilities
59,444
59,565
Other long-term liabilities
54,580
47,912
Total liabilities
2,750,657
2,591,335
Commitments and contingencies
Stockholders’ equity
Common stock
6
6
Additional paid-in capital
278,830
275,846
Retained earnings
1,023,075
961,028
Accumulated other comprehensive income
(2,680
)
(788
)
Total stockholders’ equity
1,299,231
1,236,092
Total liabilities and stockholders’
equity
$
4,049,888
$
3,827,427
PRIMORIS SERVICES CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands)
(Unaudited)
Six Months Ended
June 30,
2024
2023
Cash flows from operating activities:
Net income
$
68,486
$
40,342
Adjustments to reconcile net income to net
cash used in operating activities (net of effect of
acquisitions):
Depreciation and amortization
50,274
54,754
Stock-based compensation expense
6,360
5,388
Gain on sale of property and equipment
(26,237
)
(14,735
)
Unrealized gain on interest rate swap
(231
)
(2,745
)
Other non-cash items
2,749
982
Changes in assets and liabilities:
Accounts receivable
(208,407
)
(154,016
)
Contract assets
(27,953
)
(170,479
)
Other current assets
(5,183
)
27,291
Other long-term assets
(2,240
)
(1,230
)
Accounts payable
(44,520
)
(21,959
)
Contract liabilities
117,410
136,202
Operating lease assets and liabilities,
net
(4,788
)
2,354
Accrued liabilities
52,521
16,037
Other long-term liabilities
9,362
982
Net cash used in operating activities
(12,397
)
(80,832
)
Cash flows from investing activities:
Purchase of property and equipment
(34,637
)
(42,392
)
Proceeds from sale of assets
73,930
23,465
Cash paid for acquisitions, net of cash
and restricted cash acquired
—
9,300
Net cash provided by (used in) investing
activities
39,293
(9,627
)
Cash flows from financing activities:
Borrowings under revolving lines of
credit
—
390,000
Payments on revolving lines of credit
—
(370,000
)
Payments on long-term debt
(26,148
)
(51,234
)
Payments related to tax withholding for
stock-based compensation
(4,772
)
(1,391
)
Dividends paid
(6,424
)
(6,383
)
Other
(1,760
)
(2,106
)
Net cash used in financing activities
(39,104
)
(41,114
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
1,654
946
Net change in cash, cash equivalents and
restricted cash
(10,554
)
(130,627
)
Cash, cash equivalents and restricted cash
at beginning of the period
223,542
258,991
Cash, cash equivalents and restricted cash
at end of the period
$
212,988
$
128,364
Non-GAAP
Measures
Schedule 1 Primoris Services
Corporation Reconciliation of Non-GAAP Financial Measures Adjusted
Net Income and Adjusted EPS (In Thousands, Except Per Share
Amounts) (Unaudited)
Adjusted Net Income and Adjusted
EPS
Primoris defines Adjusted Net Income as
net income (loss) adjusted for certain items including, (i)
non‐cash stock‐based compensation expense; (ii)
transaction/integration and related costs; (iii) asset impairment
charges; (iv) changes in fair value of the Company’s interest rate
swap; (v) change in fair value of contingent consideration
liabilities; (vi) amortization of intangible assets; (vii)
amortization of debt discounts and debt issuance costs; (viii)
losses on extinguishment of debt; (ix) severance and restructuring
changes; (x) selected (gains) charges that are unusual or
non-recurring; and (xi) impact of changes in statutory tax rates.
The Company defines Adjusted EPS as Adjusted Net Income divided by
the diluted weighted average shares outstanding. Management
believes these adjustments are helpful for comparing the Company’s
operating performance with prior periods. Because Adjusted Net
Income and Adjusted EPS, as defined, exclude some, but not all,
items that affect net income and diluted earnings per share, they
may not be comparable to similarly titled measures of other
companies. The most comparable GAAP financial measures, net income
and diluted earnings per share, and information reconciling the
GAAP and non‐GAAP financial measures, are included in the table
below.
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net income as reported (GAAP)
$
49,543
$
39,032
$
68,486
$
40,342
Non-cash stock-based compensation
3,954
3,009
6,360
5,388
Transaction/integration and related
costs
522
898
1,072
3,593
Amortization of intangible assets
5,086
5,363
10,278
11,437
Amortization of debt issuance costs
600
491
1,200
982
Unrealized loss (gain) on interest rate
swap
431
(3,213
)
(231
)
(2,745
)
Change in fair value of contingent
consideration
—
(449
)
—
(694
)
Impairment of fixed assets
—
—
1,549
—
Income tax impact of adjustments
(3,072
)
(1,769
)
(5,866
)
(5,209
)
Adjusted net income
$
57,064
$
43,362
$
82,848
$
53,094
Weighted average shares (diluted)
54,653
54,324
54,522
54,083
Diluted earnings per share
$
0.91
$
0.72
$
1.26
$
0.75
Adjusted diluted earnings per share
$
1.04
$
0.80
$
1.52
$
0.98
Schedule 2 Primoris Services
Corporation Reconciliation of Non-GAAP Financial Measures EBITDA
and Adjusted EBITDA (In Thousands) (Unaudited)
EBITDA and Adjusted
EBITDA
Primoris defines EBITDA as net income
(loss) before interest, income taxes, depreciation, and
amortization. Adjusted EBITDA is defined as EBITDA adjusted for
certain items including, (i) non‐cash stock‐based compensation
expense; (ii) transaction/integration and related costs; (iii)
asset impairment charges; (iv) severance and restructuring changes;
(v) change in fair value of contingent consideration liabilities;
and (vi) selected (gains) charges that are unusual or
non-recurring. The Company believes the EBITDA and Adjusted EBITDA
financial measures assist in providing a more complete
understanding of the Company’s underlying operational measures to
manage its business, to evaluate its performance compared to prior
periods and the marketplace, and to establish operational goals.
EBITDA and Adjusted EBITDA are non‐GAAP financial measures and
should not be considered in isolation or as a substitute for
financial information provided in accordance with GAAP. These
non‐GAAP financial measures may not be computed in the same manner
as similarly titled measures used by other companies. The most
comparable GAAP financial measure, net income, and information
reconciling the GAAP and non‐GAAP financial measures are included
in the table below.
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net income as reported (GAAP)
$
49,543
$
39,032
$
68,486
$
40,342
Interest expense, net
17,133
16,884
35,125
35,349
Provision for income taxes
20,236
15,968
27,973
16,478
Depreciation and amortization
25,693
27,021
50,274
54,754
EBITDA
112,605
98,905
181,858
146,923
Non-cash stock-based compensation
3,954
3,009
6,360
5,388
Transaction/integration and related
costs
522
898
1,072
3,593
Change in fair value of contingent
consideration
—
(449
)
—
(694
)
Impairment of fixed assets
—
—
1,549
—
Adjusted EBITDA
$
117,081
$
102,363
$
190,839
$
155,210
Schedule 3 Primoris Services
Corporation Reconciliation of Non-GAAP Financial Measures
Forecasted Adjusted Net Income and Adjusted Diluted Earnings Per
Share for Full Year 2024 (In Thousands, Except Per Share Amounts)
(Unaudited)
The following table sets forth a
reconciliation of the forecasted GAAP net income to Adjusted Net
Income and EPS to Adjusted EPS for the year ending December 31,
2024.
Estimated Range
Full Year Ending
December 31, 2024
Net income as defined (GAAP)
$
148,500
$
159,500
Non-cash stock-based compensation
15,500
15,500
Transaction/integration and related
costs
3,000
3,000
Amortization of intangible assets
19,500
19,500
Amortization of debt issuance costs
2,500
2,500
Impairment of fixed assets
1,500
1,500
Income tax impact of adjustments (1)
(12,000
)
(12,000
)
Adjusted net income
$
178,500
$
189,500
Weighted average shares (diluted)
55,000
55,000
Diluted earnings per share
$
2.70
$
2.90
Adjusted diluted earnings per share
$
3.25
$
3.45
(1)
Adjustments above are reported on a
pre-tax basis before the income tax impact of adjustments. The
income tax impact for each adjustment is determined by calculating
the tax impact of the adjustment on the Company's quarterly and
annual effective tax rate, as applicable, unless the nature of the
item and/or the tax jurisdiction in which the item has been
recorded requires application of a specific tax rate or tax
treatment, in which case the tax effect of such item is estimated
by applying such specific tax rate or tax treatment.
Schedule 4 Primoris Services
Corporation Reconciliation of Non-GAAP Financial Measures
Forecasted EBITDA and Adjusted EBITDA for Full Year 2024 (In
Thousands, Except Per Share Amounts) (Unaudited)
The following table sets forth a
reconciliation of the forecasted GAAP net income to EBITDA and
Adjusted EBITDA for the year ending December 31, 2024.
Estimated Range
Full Year Ending
December 31, 2024
Net income as defined (GAAP)
$
148,500
$
159,500
Interest expense, net
71,000
74,000
Provision for income taxes
60,500
66,500
Depreciation and amortization
100,000
100,000
EBITDA
380,000
400,000
Non-cash stock-based compensation
15,500
15,500
Transaction/integration and related
costs
3,000
3,000
Impairment of fixed assets
1,500
1,500
Adjusted EBITDA
$
400,000
$
420,000
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240805615706/en/
Ken Dodgen Executive Vice President, Chief Financial Officer
(214) 740-5608 kdodgen@prim.com
Blake Holcomb Vice President, Investor Relations (214) 545-6773
bholcomb@prim.com
Primoris Services (NYSE:PRIM)
過去 株価チャート
から 8 2024 まで 9 2024
Primoris Services (NYSE:PRIM)
過去 株価チャート
から 9 2023 まで 9 2024