Slide 1: Primoris Services Corporation Q3 2021 Earnings Call
Primoris Services Corporation Q3 2021 Earnings Call Nov. 8, 2021
Slide 2: Notice to Investors
Notice to Investors This presentation contains forward-looking statements within the meaning of the federal securities laws. These statements give the current expectations of the Company’s management. Words such as “could,” “will,” “may,” “assume,” “forecast,” “strategy,” “guidance,” “outlook,” “tar
Slide 3: Q3 2021 Highlights
Q3 2021 Highlights Strong revenue of $913.2 million Energy/Renewable Segment revenue up 11% Utility Segment revenue up 10% Fully diluted earnings per share (EPS) of $0.81 Adjusted EPS of $0.89 Adjusted EBITDA of $94.7 million 3
Slide 4: Q3 2021 Summary
Q3 2021 Summary Revenue Net Income (in millions) (in millions) $942.7 $44.1 $913.2 $43.9 2020 Q3 2021 Q3 2020 Q3 2021 Q3 Adjusted Net Income (in millions) $48.5 $45.3 2020 Q3 2021 Q3 4
Slide 5: Q3 2021 Summary
Q3 2021 Summary EPS Adjusted EPS $0.90 $0.93 $0.81 $0.89 2020 Q3 2021 Q3 2020 Q3 2021 Q3 Adjusted EBITDA (in millions) $94.7 $87.9 2020 Q3 2021 Q3 5
Slide 6: YTD 2021 Summary
YTD 2021 Summary Revenue Net Income (in millions) (in millions) $2,594.2 $2,613.2 $86.2 $73.2 2020 YTD 2021 YTD 2020 YTD 2021 YTD MSA / Total Backlog $2.8 (in billions) $2.7 Adjusted Net Income (in millions) $108.0 53% MSA $82.3 35% MSA Dec. 31, 2020 Sept. 30, 2021 2020 YTD 2021 YTD 6
Slide 7: YTD 2021 Summary
YTD 2021 Summary EPS Adjusted EPS $1.63 $2.04 $1.50 $1.69 2020 YTD 2021 YTD 2020 YTD 2021 YTD Adjusted EBITDA (in millions) $230.8 $184.7 2020 YTD 2021 YTD 7
Slide 8: MSA Revenue
MSA Revenue $1,800 50% 45% $1,600 44% 45% $1,400 39% 38% 40% $1,200 % Total Revenue $1,000 35% $MMs $800 29% 29% 30% 28% $600 24% 24% 25% $400 20% $200 $- 15% 2013 2014 2015 2016 2017 2018 2019 2020 Q3 2021 MSA Revenue % Total Revenue LTM 8
Slide 9: Backlog Summary at 9/30/2021
Backlog Summary at 9/30/2021 Total Backlog* Mix Total Backlog* ($MMs) $3,500 60% $3,000 50% Utilities $2,500 49% $1,759 40% $2,000 $1,476 $1,283 $1,640 $2,126 30% $1,824 Pipeline 6% $1,500 20% $1,000 Energy/Renewables $1,284 $1,418 $1,457 10% $500 $1,137 45% $672 $775 $0 0% 2016 2017 2018 2019 2020
Slide 10: Q3 2021 vs. Q3 2020 Segment Results
Q3 2021 vs. Q3 2020 Segment Results $ in thousands Energy/ Q3 2021 Utilities Pipeline TOTAL Renewables Revenue $ 454,654 $ 351,026 $ 107,565 $ 913,245 Gross Profit $ 63,715 $ 35,926 $ 27,795 $ 127,436 Gross Margins* 14.0% 10.2% 25.8% 14.0% Energy/ Q3 2020 Utilities Pipeline TOTAL Renewables Revenue
Slide 11: Growing Revenue While Controlling SG&A
Growing Revenue While Controlling SG&A $4.0 8.0% 7.9% $3.5 $3.5 $3.5 7.5% $3.1 $2.9 SG&A % of Revenue $3.0 7.2% 7.0% $ in Billions 7.0% $2.5 $2.4 6.5% $2.0 $2.0 $1.9 6.3% 6.2% 6.1% 6.0% $1.5 5.8% $1.0 5.5% 2015 2016 2017 2018 2019 2020 Q3 2021 LTM Revenue SG&A % of Revenue 11
Slide 12: Consistent Earnings Per Share Growth
Consistent Earnings Per Share Growth EPS Guidance Adjusted EPS Guidance $2.71 $2.20 $2.61 $2.16 $2.10 $1.61 $1.50 2018 2019 2020 2021E 2021E Note: 2018, 2019, and 2020 are actual earnings per fully diluted share. 2021E is guidance as of 11/08/2021 12
Slide 13: Primoris – Why Invest?
Primoris – Why Invest? Our low-risk business model creates strong, consistent growth Our Value Proposition Diverse Business Mix » Comprehensive suite of critical 53% Q3 2021 Revenue infrastructure services Master Service 12% Agreement (MSA) Backlog (1) 38% Q3 2021 Backlog » Business model limits ris
Slide 14: Reg G Reconciliation
P-C Primoris Reg G Reconciliation
Slide 15: Reconciliation of Adjusted Net Income & Adjusted EPS
Schedule 1: Reconciliation of Adjusted Net Income & Adjusted EPS Q3 2021 vs. Q3 2020 Adjusted Net Income & Adjusted EPS Primoris defines Adjusted Net Income as net income (loss) attributable to Primoris adjusted for certain items including, (i) non-cash stock-based compensation expense; (ii) transac
Slide 16: Reconciliation of Adjusted Net Income & Adjusted EPS
Schedule 1: Reconciliation of Adjusted Net Income & Adjusted EPS YTD 2021 vs. YTD 2020 Adjusted Net Income & Adjusted EPS The following table set forth a reconciliation of net income attributable to Primoris per diluted share to Adjusted EPS for the nine months ended September 30, 2021, and 2020: Ni
Slide 17: Reconciliation of EBITDA & Adjusted EBITDA
Schedule 2: Reconciliation of EBITDA & Adjusted EBITDA Q3 2021 vs. Q3 2020 EBITDA and Adjusted EBITDA Primoris defines EBITDA as net income (loss) attributable to Primoris before interest, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for certain items in
Slide 18: Reconciliation of EBITDA & Adjusted EBITDA
Schedule 2: Reconciliation of EBITDA & Adjusted EBITDA YTD 2021 vs. YTD 2020 EBITDA and Adjusted EBITDA The following table sets forth a reconciliation of net income to EBITDA and Adjusted EBITDA for the nine months ended September 30, 2021, and 2020: Nine Months Nine Months Ended Ended ($ thousands
Slide 19: Reconciliation of Non-GAAP Forecasted Guidance
Schedule 3: Reconciliation of Non-GAAP Forecasted Guidance FY 2021 Adjusted Net Income & EPS to Adjusted EPS for the year ending December 31, 2021 The following table sets forth a reconciliation of the forecasted GAAP net income attributable to Primoris to Adjusted Net Income and EPS to Adjusted EPS