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Mar 31, 2022
Primoris Q1 2022 Earnings Report
Primoris experienced a decrease in revenue and profitability during the first quarter of 2022, with positive performance in utilities and energy/renewables segments offset by losses in the pipeline segment.
Key Takeaways
Primoris Services Corporation reported a revenue of $784.4 million for Q1 2022, a decrease compared to the same period last year. The company experienced a net loss of $1.7 million, with a loss per share of $0.03. Adjusted EPS was $0.01. Despite the overall decrease in revenue, Utilities and Energy/Renewables segments showed growth. The company's backlog reached a record $4.025 billion, driven by growth markets.
Revenue decreased to $784.4 million due to a decline in the Pipeline segment, partially offset by growth in Utilities and Energy/Renewables segments.
Net loss was $1.7 million, and EPS loss was $0.03.
Record backlog of $4.025 billion, an increase of 30% over the prior year, driven by Utilities and Energy/Renewables segments.
Gross profit margin decreased to 7.2% due to negative gross margins in the Pipeline segment.
Primoris
Primoris
Forward Guidance
The Company is raising its estimates for the year ending December 31, 2022. Net income is expected to be between $2.20 and $2.40 per fully diluted share. Adjusted EPS is estimated in the range of $2.49 to $2.69 for 2022.
Positive Outlook
- Net income is expected to be between $2.20 and $2.40 per fully diluted share.
- Adjusted EPS is estimated in the range of $2.49 to $2.69 for 2022.
- Utilities targeted gross margins are in the range of 10 to 13 percent
- Energy/Renewables targeted gross margins are in the range of 9 to 12 percent
- Pipeline targeted gross margins are in the range of 9 to 11 percent
Challenges Ahead
- The Company is targeting SG&A expense as a percentage of revenue in the low-to-mid six percent range for the 2022 calendar year.
- The Company expects its effective tax rate for 2022 to be approximately 27 percent but may vary depending on the mix of states in which the Company operates.
- Capital expenditures for the remaining nine months of 2022 are expected to total between $90 million and $110 million, which includes $55 million to $75 million for construction equipment.
- The guidance provided above constitutes forward-looking statements, which are based on current economic conditions and estimates, and the Company does not include other potential impacts, such as changes in accounting or unusual items.
- Backlog, including estimated MSA revenue, should not be considered a comprehensive indicator of future revenue.