Primoris Services Corporation · NYSE:PRIM
Primoris Services — Q4 2022 Earnings Presentation
19 slides from Primoris Services's earnings presentation, Feb 28, 2023
Slide 1: Primoris Services Corporation: 4Q 2022 Earnings
Primoris Services Corporation Building M o m e n t u m 4Q 2022 Earnings February 28, 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: Full Year 2022 Highlights
Full Year 2022 Highlights Record revenue of $4.4 billion, up 26 percent from 2021, driven by 15 percent growth excluding acquisitions Record backlog of $5.5 billion, up 37 percent from 2021, driven by 21 percent growth excluding acquisitions Renewables revenue up 85 percent year-over-year Communicat
Slide 4: 4Q 2022 Financial Summary
4Q 2022 Financial Summary ($ thousands, except per share amounts) 4Q 2022 4Q 2021 GAAP Metrics Revenue $ 1,329,138 $ 884,448 Net Income $ 41,501 $ 29,540 Diluted EPS $0.77 $ 0.55 Non-GAAP Metrics Adjusted EBITDA $ 95,634 $ 67,054 Adjusted Net Income $ 50,198 $ 34,374 Adjusted EPS $ 0.93 $ 0.63 4
Slide 5: 2022 Financial Summary
2022 Financial Summary ($ thousands, except per share amounts) 2022 2021 GAAP Metrics Revenue $ 4,420,599 $ 3,497,632 Net Income $ 133,021 $ 115,739 Diluted EPS $ 2.47 $ 2.17 Non-GAAP Metrics Adjusted EBITDA $ 283,361 $ 297,679 Adjusted Net Income $ 135,777 $ 143,444 Adjusted EPS $ 2.53 $ 2.70 5
Slide 6: Master Service Agreement (MSA) Revenue
Master Service Agreement (MSA) Revenue $2,500 50% 46% 46% 44% 45% $2,000 39% 38% 40% % Total Revenue $1,500 35% $MMs 29% 30% $1,000 28% 25% $500 20% $- 15% 2016 2017 2018 2019 2020 2021 2022 MSA Revenue % Total Revenue MSA revenue helps improve stability and predictability 6
Slide 7: Backlog Summary at 12/31/2022
Backlog Summary at 12/31/2022 Total Backlog* Mix Total Backlog* ($MMs) $6,000 33% $5,484 9% $5,000 $4,003 $4,000 $3,575 $3,177 $2,798 $2,777 $3,000 $2,599 $2,760 $2,479 $1,759 $2,000 $1,476 $1,640 $2,126 $1,824 $1,000 $1,909 $1,284 $1,418 $1,137 $1,524 58% $672 $775 $0 Utilities Energy/Renewables Pi
Slide 8: 4Q 2022 vs. 4Q 2021 Segment Results
4Q 2022 vs. 4Q 2021 Segment Results $ in thousands Energy/ Pipeline 4Q 2022 Utilities TOTAL Renewables Services Revenue $ 576,450 $ 641,646 $ 111,042 $ 1,329,138 Gross Profit $ 69,917 $ 79,663 $ 3,804 $ 153,384 Gross Margins* 12.1% 12.4% 3.4% 11.5% Energy/ Pipeline 4Q 2021 Utilities TOTAL Renewables
Slide 9: 2022 vs. 2021 Segment Results
2022 vs. 2021 Segment Results $ in thousands Energy/ Pipeline 2022 Utilities TOTAL Renewables Services Revenue $ 2,024,307 $ 2,087,489 $ 308,803 $ 4,420,599 Gross Profit $ 210,672 $ 252,872 $ (6,659) $ 456,885 Gross Margins* 10.4% 12.1% (2.2)% 10.3% Energy/ Pipeline 2021 Utilities TOTAL Renewables S
Slide 10: Controlling SG&A
Controlling SG&A $5.0 23.5% $4.5 $4.4 $4.0 18.5% $3.5 $3.5 SG&A % of Revenue $3.5 $3.1 $2.9 $3.0 $ in Billions 13.5% $2.5 $2.4 $2.0 $2.0 8.5% $1.5 7.0% 7.2% 6.1% 6.6% 6.4% 6.2% 5.8% $1.0 3.5% 2016 2017 2018 2019 2020 2021 2022 Revenue SG&A % of Revenue Managing support cost structure while growing t
Slide 11: 2023 Guidance
2023 Guidance As of February 28, 2023 » Full Year 2023 Earnings Per Share (“EPS”): ̶ $2.10 to $2.30 per diluted share » Full Year 2023 Capital expenditures: » Full Year 2023 Adjusted EPS: ̶ $80M to $100M; ̶ $2.50 to $2.70 per diluted share ̶ Includes $40M to $60M for construction equipment » Full Ye
Slide 12: Primoris – Why Invest?
Primoris – Why Invest? Our low-risk business model provides Diverse Business Mix framework for strong, consistent growth 2022 Revenue 2022 Backlog Our Value Proposition 7% 9% 33% Utilities » Comprehensive suite of critical 46% Energy/ Renewables 47% infrastructure services Pipeline Services 58% » Bu
Slide 13: Reg G Reconciliation
Reg G Reconciliation
Slide 14: Reconciliation of Adjusted Net Income & Adjusted EPS 4Q 2022 vs. 4Q 2021
Schedule 1: Reconciliation of Adjusted Net Income & Adjusted EPS 4Q 2022 vs. 4Q 2021 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 15: Reconciliation of Adjusted Net Income & Adjusted EPS 2022 vs. 2021
Schedule 1: Reconciliation of Adjusted Net Income & Adjusted EPS 2022 vs. 2021 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 related co
Slide 16: Reconciliation of EBITDA & Adjusted EBITDA 4Q 2022 vs. 4Q 2021
Schedule 2: Reconciliation of EBITDA & Adjusted EBITDA 4Q 2022 vs. 4Q 2021 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 17: Reconciliation of EBITDA & Adjusted EBITDA 2022 vs. 2021
Schedule 2: Reconciliation of EBITDA & Adjusted EBITDA 2022 vs. 2021 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-bas
Slide 18: Reconciliation of Non-GAAP Forecasted Guidance FY 2023
Schedule 3: Reconciliation of Non-GAAP Forecasted Guidance FY 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 year en
Slide 19: Reconciliation of Non-GAAP Forecasted Guidance FY 2023
Schedule 4: Reconciliation of Non-GAAP Forecasted Guidance FY 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) for th