Primoris Services Corporation · NYSE:PRIM
Primoris Services — Merger or Acquisition (December 2020)
18 slides from Primoris Services's merger presentation, Dec 15, 2020
Slide 1: Primoris to Acquire Future Infrastructure Holdings, LLC
Primoris to Acquire Future Infrastructure Holdings, LLC Establishing a Leading Telecom Services Platform December 14, 2020
Slide 2: Forward Looking Statements
Forward Looking Statements 1 Transaction Overview 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,” “strate
Slide 3: Transaction Overview: Purchase Price and Financial Impact
Transaction Overview Purchase Price and Financial Impact • Primoris has signed a definitive agreement to acquire Future Infrastructure Holdings, LLC (“Future Infrastructure”, “Future” or “FIH”) for a total purchase price of $620 million – LTM adjusted EBITDA of $66 million plus estimated annual syne
Slide 4: Expanding in Telecom Services: A Clear Strategic Priority
Transaction Overview Expanding in Telecom Services: A Clear Strategic Priority 3 Focus on Growth and Profitability • Building a leading presence in telecom services opens a new avenue of growth and further expands our utility capabilities Strong Portfolio Alignment • Strong presence in telecom servi
Slide 5: Overview of the Future Infrastructure Business Lines
Regulated Gas Utility Other Services Transaction Overview Overview of the Future Infrastructure Business Lines Financial metrics for FIH represent the last 12 months ended September 30, 2020. Percentage totals will not add to 100% due t o r ounding. 4 Revenue $204mm $87mm $50mm % of Total 60% 26% 15
Slide 6: Robust Growth Outlook for Key FIH End Markets
129 192 268 362 470 554 643 732 835 951 1,084 '18A '19E '20E '21E '22E '23E '24E '25E '26E '27E '28E Unknown 5% Pre - 1940 4% Pre - 1950 3% Pre - 1960 10% Pre - 1970 16% Pre - 1980 10% Pre - 1990 11% Pre - 2000 16% Pre - 2010 15% Pre - 2020 10% Transaction Overview Robust Growth Outlook fo
Slide 7: Future Infrastructure: The Right Acquisition for Primoris
Transaction Overview Future Infrastructure: The Right Acquisition for Primoris Note: Financial and operating metrics for FIH represent the last 12 months ended September 30, 2020 unless otherwise indicate d. 1 Defined as (adjusted EBITDA – capex) / adjusted EBITDA. ² As of 2019A and excludes recentl
Slide 8: Attractive Footprint and Long-Tenured, Blue Chip Client Base
Transaction Overview Attractive Footprint and Long - Tenured , Blue Chip Client Base 7 Service Areas High Quality Customer Base • Strong existing regional footprint with significant opportunity for growth in adjacent states Dallas/Fort Worth Area Service Areas Headquarter s • 100% contract renewal w
Slide 9: Primoris and Future – Common Cultures and Shared Values
Transaction Overview Primoris and Future – Common Cultures and Shared Values 8 Passion: We are passionate about our success and the success of our customers Resilience: We get stronger with every challenge Inspiration: We seek to inspire an entrepreneurial spirit within the Company Motivation: We be
Slide 10: Financial Overview
Primoris Financial Overview
Slide 11: Overview of Future Infrastructure's Robust Financial Profile
Overview of Future Infrastructure’s Robust Financial Profile Financial metrics for FIH represent the last 12 months ended September 30, 2020; US$ in millions ¹ Defined as (adjusted EBITDA – capex) / a djusted EBITDA . 10 Total Revenue by Business Lines Total Adjusted EBITDA Total Capex (Maintenance
Slide 12: Continuing the Primoris Portfolio Transformation
Continuing the Primoris Portfolio Transformation 1 Financial metrics represent the last 12 months ended September 30, 2020 11 Primoris ( FY2019) LTM Pro Forma 1 Key Highlights Revenue Mix Gross Profit Mix • $3,726 million pro forma revenue • $440 million pro forma gross profit • 12% gross margin • I
Slide 13: Executing on our Strategy to Pursue Accretive M&A
Executing on our Strategy to Pursue Accretive M&A 12 • Disciplined valuation • Utilizing cash / stock mix, where appropriate, to better align interests post - close • Company leadership stays on to run the business – Non - compete agreements – Stock vests over a period of time • Leadership position
Slide 14: Appendix
Primoris Appendix
Slide 15: Advancing Our Strategy
Appendix Advancing Our Strategy ¹ Last twelve months ended September 30, 2020. 2 Pro forma for estimated synergies of $10 million (bottom of estimated range) and PV of tax benefits of $85 million (middle of e stimated range). Primoris is an Established Provider of Required Infrastructure Services...
Slide 16: Strategic Growth With Enhanced Value
Appendix Strategic Growth With Enhanced Value 15 Future Infrastructure is aligned with Primoris’ long term goals and accelerates our growth plans Leadership in utilities Diverse service offerings across end markets Premier customer base and large multi - regional coverage Diverse end market exposure
Slide 17: Overview of the Telecom Services Platform
Appendix Overview of the Telecom Services Platform 16 A C A B C B A B D D Traditional Towers Micro / Small Cell Distributed Antenna System Macro Towers Underground Fiber Network • OSP placement and repair of fiber across geographies • ISP installations of fiber network in facilities OSP and ISP Plac
Slide 18: Regulated Gas Utility Services Offerings
Appendix Regulated Gas Utility Services Offerings 17 Res i dential Buildings City Gate Station C ompressor Station Indust r i al Facilities C ommerc i al Facilities Regulators and Meters Transmission Pipeline Distribution Line A A B B C C B D • Bore installation of pipe up to 48” diameter • Utilize
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