Primoris Services Corporation · NYSE:PRIM
Primoris Services — Investor Presentation (March 2022)
22 slides from Primoris Services's investor presentation, March 2022
Slide 1: Primoris Services Corporation Investor Presentation
Primoris Services Corporation Investor Presentation March 2022
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: Who We Are
Who We Are Primoris Services Corporation – Building America’s Infrastructure » Leading scale player with $3.5bn in Our Vision 2021 revenue Be a leader in every market we serve » Comprehensive suite of critical and be a trusted service provider and infrastructure services partner to our clients – Spe
Slide 4: Primoris at a Glance
Primoris at a Glance Primoris By the Numbers (1) Diverse Business Mix FY 2021 Revenue FY 2021 Backlog $3.5 bn 12% 4% Revenue 35% 48% 61% $4 bn 38% 40% Backlog Master Service Agreement (MSA) Backlog Utilities Energy/ Renewables Pipeline Services <$5 mm 78% Average Project Size Reimbursable Contracts
Slide 5: Our Reporting Segments and Markets We Serve
Our Reporting Segments and Markets We Serve Utilities Energy / Renewables Pipeline Services Regulated Electric Telecommunications Power Plants Renewables Large Diameter Small Diameter Gathering End Markets Served Regulated Natural Gas Highways, Bridges, Petrochemicals Water / Drainage and Airports »
Slide 6: Consistent Execution Track Record Driving Long-Term Profitable Growth
Consistent Execution Track Record Driving Long-Term Profitable Growth Leverage core platform to address large growing market opportunity Expanding service mix to meet our customers’ lifecycle needs Disciplined risk management strategy Thoughtful expansion into new end markets 5
Slide 7: Why Invest in Primoris
P-C Primoris Why Invest in Primoris
Slide 8: Key Investment Highlights
Key Investment Highlights 1 Leading Provider of Critical Infrastructure Services 2 Multiple Secular Tailwinds Supporting Growth 3 Diversified and Well-Tenured Blue Chip Client Base 4 Business Model Intentionally Designed to Limit Risk and Drive Predictability 5 Differentiated Employee Base and Skill
Slide 9: Leading Provider of Critical Infrastructure Services
1 Leading Provider of Critical Infrastructure Services Predictable, Lifecycle Focus on Consistent Non-Discretionary Solutions Customer Needs Project Execution Spend » Design / Engineering » Utilities » Safety » On-Time Completion » Procurement » Telecom » Efficiency » Profitable » Installation » Ren
Slide 10: Multiple Secular Tailwinds Supporting Growth
2 Multiple Secular Tailwinds Supporting Growth Multiple independent positive trends fueling infrastructure spend in both the near and long-term Market Opportunity Growth Drivers Electric T&D » Grid upgrade and maintenance requirements $70 Bn » System hardening » Weather hardening and preparedness Re
Slide 11: Diversified and Well-Tenured Blue Chip Client Base
3 Diversified and Well-Tenured Blue Chip Client Base Segments Select Primoris Customers Average Tenure(1) 2021 Revenue Breakdown by Customer Customer 1 5.9% Customer 2 Utilities 25 5.6% Customer 3 Years 5.6% Customer 4 5.3% Customer 5 Others 4.0% 57.0% Customer 6 4.0% Customer 7 4.0% Energy / 21 Cus
Slide 12: Business Model Intentionally Designed to Limit Risk and Drive Predictability
4 Business Model Intentionally Designed to Limit Risk and Drive Predictability MSA Focused Service Offering… Revenue Mix (2021) Improved » Recurring MSA reduces sales and marketing expenses Economics » Supports investments in scale / network density » Increased revenue stability Resilient » Increase
Slide 13: Differentiated Employee Base and Skilled Labor Advantage
5 Differentiated Employee Base and Skilled Labor Advantage Primoris has more than 10,800 employees with opportunities for continued skill enhancements Project Management Skills Training Training Primoris supports continuous skills training, both through on-site programs Lays the foundation of skills
Slide 14: Multiple Strategies to Drive Disciplined Long-Term Growth
6 Multiple Strategies to Drive Disciplined Long-Term Growth Grow Targeted Improve Continue Pursue Maintain Strong Markets + Services Mix + Cross-Selling + Accretive M&A = Financial Profile Accretive Growth Driven By: 5-Year Revenue CAGR of 12% Seek well- Solid Gross respected, Margin Performance ent
Slide 15: Financial Overview
P-C Primoris Financial Overview
Slide 16: MSA Revenue and % of Total Revenue
MSA Revenue $1,800 50% 46% $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 $- 15% 2013 2014 2015 2016 2017 2018 2019 2020 2021 MSA Revenue % Total Revenue 15
Slide 17: Backlog Summary at 12/31/2021
Backlog Summary at 12/31/2021 Total Backlog* Mix Total Backlog* ($MMs) $4,500 70% $4,000 60% $3,500 Utilities 50% $3,000 35% $2,479 $2,500 40% $1,759 Pipeline 4% $2,000 $1,476 $1,640 30% $2,126 $1,824 $1,500 20% Energy/Renewables $1,000 61% $1,284 $1,418 $1,524 10% $500 $1,137 $672 $775 $0 0% 2016 2
Slide 18: Growing Revenue While Controlling SG&A
Growing Revenue While Controlling SG&A $4.0 23.5% $3.5 $3.5 $3.5 $3.1 18.5% $2.9 SG&A % of Revenue $3.0 $ in Billions $2.5 $2.4 13.5% $2.0 $2.0 $1.9 8.5% $1.5 7.9% 7.0% 7.2% 6.2% 6.6% 6.1% 5.8% $1.0 3.5% 2015 2016 2017 2018 2019 2020 2021 Revenue SG&A % of Revenue 17
Slide 19: Outlook for FY 2022
Outlook for FY 2022 » Earnings Per Share (“EPS”) » Effective Tax rate: » $2.10 and $2.30 per fully diluted share » 27% » Adjusted EPS: » Backlog: » $2.39 to $2.59 » The Company expects that during the next four quarters, the Company will recognize as revenue approximately 74% of the total backlog at
Slide 20: Strategic Capital Allocation Priorities
Strategic Capital Allocation Priorities Focused on driving shareholder value and maintaining balance sheet flexibility Continuing to invest organically to drive growth with new services in Organic Growth attractive end markets Transforming the business through disciplined, accretive M&A in M&A strat
Slide 21: Reg G Reconciliation
P-C Primoris Reg G Reconciliation
Slide 22: Reconciliation of Non-GAAP Forecasted Guidance
Reconciliation of Non-GAAP Forecasted Guidance FY 2022 Adjusted Net Income & EPS to Adjusted EPS for the year ending December 31, 2022 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 for the yea
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