Primoris Services Corporation
) reported second-quarter 2013 earnings of 30 cents per share, up
30% from 23 cents in the year-ago quarter. The results were in
line with the Zacks Consensus Estimate.
Revenues in the reported quarter increased 31.9% year over year
to $445 million. The results were ahead of the Zacks Consensus
Estimate of $437 million. The year- over-year rise was
attributable to 15.4% growth at legacy companies and the
remaining 16.5% increase was from the acquisitions of Sprint,
Saxon, Q3C, and FSSI.
Cost of sales rose 31% to $385 million from $293 million in the
year-ago quarter. Gross profit improved 35% year over year to $59
million. Consequently, gross margin expanded 30 basis points
(bps) year over year to 13.3%.
Selling, general and administrative expenses increased 34.8% year
over year to $31.5 million. The increase was due to costs related
to the acquisitions of Silva, Saxon, Q3C, and FSSI as well as
increased compensation. Operating profit was $27.9 million, up
35.7% from the prior-year quarter. Operating margin grew 30 bps
East Construction Services:
Net sales increased 12% year over year to $175 million. The
acquisitions of Saxon and FSSI contributed $14.8 million to
revenues. Revenue growth was also driven by enhanced activity at
Sprint and increased water facility treatment work in Florida and
Texas, partly offset by a decline in the JCG Heavy Civil and
Infrastructure & Maintenance divisions. Gross profit, however
declined 12% to $15 million from $17 million in the year-ago
West Construction Services:
Sales rose 54% to $258 million from the year-ago quarter, led by
increased revenues at Rockford, partly offset by a revenue
decline in the ARB Industrial division. The Q3C acquisition also
contributed $14.8 million to revenues. The segment's gross profit
grew a whopping 72.5% year over year to $41.9 million.
Net sales went down 18.9% year over year to $11 million.
Consequently, gross profit fell 1.9% year over year to $2.3
Cash and cash equivalents were $113.7 million as of Jun 30, 2013
compared with $157.5 million as of Dec 31, 2012. Long-term debt
amounted to $166.5 million as of Jun 30, 2013, compared with
$147.8 million as of Dec 31, 2012. The debt-to-capitalization
ratio expanded to 31.7% as of Jun 30, 2013 from 30.7% as of Dec
31, 2012. Total backlog was $1.38 billion as of Jun 30, 2013
compared to $1.35 billion as of Dec 31, 2012.
Primoris remains optimistic about its all business lines as it
sees ample prospects for continued growth across end markets.
Improvement in U.S. energy infrastructure will drive growth. In
addition, the company believes that industrial and water end
markets are poised for significant growth in the coming years.
For full-year 2013, the company expects strong contributions from
the recent acquisitions, as well as legacy group. Water and
wastewater markets have also recovered this year, which will
drive revenue growth.
Over the next four quarters, Primoris will recognize as revenues
around 50% of the East Construction Services segment backlog,
about 98% of the West Construction Services segment backlog and
100% of the Engineering segment backlog.
Primoris will continue to book new Heavy Civil job awards, most
significantly in Texas and Mississippi, which have more than
offset continued weakness in the Louisiana market.
Dallas, Texas-based Primoris is a specialty contractor and
infrastructure company which serves diverse end markets. The
company also provides a wide range of construction, fabrication,
maintenance, replacement, water and wastewater, and engineering
services to major public utilities, petrochemical companies,
energy companies, municipalities and other customers.
Primoris currently retains a Zacks Rank #3 (Hold).
) adjusted earnings increased 21% year over year to 47 cents per
share in the second quarter. The results were ahead of both the
Zacks Consensus Estimate of 43 cents as well as management's
guidance of 42 cents a share.
Chicago Bridge & Iron Company N.V.
) reported second-quarter adjusted earnings of $112.3 million or
$1.04 per share, in line with the Zacks Consensus Estimate.
Adjusted net income was up 38.6% year over year on the back of
strong project activities and robust backlog during the quarter.
Granite Construction Inc.
) reported earnings of $2.7 million or 7 cents per share in the
second quarter compared with $1.9 million or 5 cents a share in
the prior-year quarter. The results lagged the Zacks Consensus
Estimate of 32 cents.
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