Primoris Services Corporation · NYSE:PRIM
Primoris Services — Investor Presentation (November 2023)
21 slides from Primoris Services's investor presentation, November 2023
Slide 1: The Power of Primoris Investor Presentation
The Power of Primoris Investor Presentation November 2023
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 “anticipates”, “believes”, “could”, “estimates”, “expects”, “intends”, “may”, “plans”
Slide 3: Investment Rationale
Investment Rationale Leading provider of critical infrastructure specialty contracting services Balanced portfolio of projects and services designed to reduce risk and increase predictability Well-positioned in renewables and utilities markets with strong secular tailwinds DI VI DER SLI DE 1 Diversi
Slide 4: Provider of Critical Infrastructure Services
Provider of Critical Infrastructure Services Utilities Energy Power Generation Renewables Pipeline Services Power Delivery Communications Gas Operations Highways & Bridges Refining & Petrochemical » Transmission, Distribution & » Gas Main & Service » Industrial Gas Facilities » Battery Storage Syste
Slide 5: Utilities Segment
Utilities Segment Sales ($M) POWER DELIVERY $2,390 $2,024 $1,658 2021 2022 Q3 '23 LTM COMMUNICATIONS Backlog ($M) GAS OPERATIONS $1,833 $1,915 $1,384 • Capturing long-term tailwinds from growing infrastructure spend in Communications and Power Delivery businesses • 2023 year-to-date project revenue
Slide 6: Energy Segment
Energy Segment INDUSTRIAL Sales ($M) RENEWABLES $3,139 $2,396 $1,840 2021 2022 Q3 '23 LTM HEAVY CIVIL Backlog ($M) PIPELINE SERVICES $4,772 $3,651 • Solar EPC growing profitably while effectively managing industry challenges $2,619 and risks • Pipeline services recovering from trough in 2022 with in
Slide 7: Balanced Project Portfolio
Balanced Project Portfolio Contract Size Benefits Master Service Agreement Revenue $2.5 $2.1 $2.0 » Average project size is less than $3 million $2.0 $1.6 $1.5 $1.4 $1.4 $ Billions » Unit price and reimbursable contracts $1.1 (representing over 80%) lower the risk of project $1.0 $0.7 cost over-runs
Slide 8: Secular Tailwinds Supporting Growth
Secular Tailwinds Supporting Growth Multiple positive trends fueling infrastructure spend in both the near and long-term Market Opportunity Growth Drivers Power Delivery » Grid upgrade and maintenance requirements $313 Billion (1) » Increased load demand » Weather hardening and preparedness Utility-
Slide 9: Transition to a Diverse Specialty Contractor
Transition to a Diverse Specialty Contractor Revenue Contribution % • Strategic acquisitions and market share gains have transformed end Pipeline Services, 20% Pipeline Services, 7% market exposure Industrial, 18% • Renewables, power delivery and Industrial, 24% Heavy Civil, 8% communications leadin
Slide 10: Valued Partner to Blue Chip Customer Base
Valued Partner to Blue Chip Customer Base Segment Select Primoris Customers Average Tenure 2022 Revenue Breakdown by Customer Customer 1, 7.7% Customer 2, 7.3% +25 Utilities Customer 3, Years 6.1% Customer 4, 5.6% Other, 53.8% Customer 5, 4.7% Customer 6, 3.9% Customer 7, 3.5% Customer 10, Customer
Slide 11: Track Record of Execution
Track Record of Execution Leveraging service portfolio and BACKLOG REVENUE SG&A ($ BILLIONS) ($ BILLIONS) (% OF REVENUE) +16% geographic footprint to address large +20% (CAGR) growing market opportunity (CAGR) $5.5 6.6% $6.7 6.1% $2.6 $2.7 Managing support cost structure Q3 '18 Q3 '23 Q3 '18 TTM Q3
Slide 12: Strategic Focus Areas
Strategic Focus Areas Grow target markets: renewables, power delivery and communications Continue service mix shift toward higher margin business lines and key customers Increase cross-selling of services across business units and segments DI VI DER SLI DE 1 Increase operating cash flow and improve
Slide 13: Optimize Service Line and Customer Mix
Optimize Service Line and Customer Mix Multi-year End Market Trends • Targeted increase of transmission / substation mix while growing MSA revenue in power Communications delivery Renewables • Allocate skilled human capital resources Target Gross Margin Profile High Power Delivery toward growth-orie
Slide 14: Capitalizing on Cross-Business Sales Opportunities
Capitalizing on Cross-Business Sales Opportunities Turnkey solutions for utility-scale solar customers • Site preparation, substation, transmission and battery storage construction Broaden scope of services for renewable-oriented customers • Carbon capture utilization and storage (CCUS) pipelines, g
Slide 15: Capital Allocation Priorities
Capital Allocation Priorities Focused on driving shareholder value and maintaining balance sheet flexibility Invest organically to drive growth in new markets with Organic Growth customers in attractive end markets Balance Sheet Reduce financial leverage through profitable growth and cash Flexibilit
Slide 16: 2023 Guidance
2023 Guidance As of November 8, 2023 Full Year 2023 Earnings Per Share (“EPS”): Full Year Effective Tax Rate: ̶ $2.15 to $2.35 per diluted share ̶ Approximately 29% Full Year 2023 Adjusted EPS: Q4 2023 Capital Expenditures: ̶ $2.60 to $2.80 per diluted share ̶ $10 million to $20 million ̶ In
Slide 17: Reg G Reconciliation
Reg G Reconciliation 17
Slide 18: Reconciliation of Adjusted Net Income & Adjusted EPS
Schedule 1: Reconciliation of Adjusted Net Income & Adjusted EPS 3Q 2023 vs. 3Q 2022 Adjusted Net Income & 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 rela
Slide 19: Reconciliation of EBITDA & Adjusted EBITDA
Schedule 2: Reconciliation of EBITDA & Adjusted EBITDA 3Q 2023 vs. 3Q 2022 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 sto
Slide 20: Reconciliation of Non-GAAP Forecasted Guidance: Adjusted EPS
Schedule 3: Reconciliation of Non-GAAP Forecasted Guidance Full Year 2023 Adjusted Net Income Forecast & EPS to Adjusted EPS for the year ending December 31, 2023 The following table sets forth a reconciliation of the forecasted GAAP net income to Adjusted Net Income and EPS to Adjusted EPS for the
Slide 21: Reconciliation of Non-GAAP Forecasted Guidance: Adjusted EBITDA
Schedule 4: Reconciliation of Non-GAAP Forecasted Guidance Full Year 2023 Adjusted EBITDA Forecast for the year ending December 31, 2023 The following table sets forth a reconciliation of the forecasted GAAP net income to Adjusted Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA)
Primoris Services — Investor Presentation (November 2023) on 6ix