Primoris Services (NASDAQ: PRIM) reported Q4 EPS of $0.53, in-line with the analyst estimate of $0.53. Revenue for the quarter came in at $789.8 million versus the consensus estimate of $833.12 million.

2019 Q4 Financial Highlights

• 2019 Q4 revenue of $789.8 million, compared to $877.7 million in 2018 Q4
• 2019 Q4 net income attributable to Primoris of $26.9 million, or $0.53 per fully diluted share, compared to $32.4 million, or $0.63 per fully diluted share, in 2018 Q4
• 2019 Q4 cash flows from operations of $158.1 million

Tom McCormick, President and Chief Executive Officer of Primoris, commented, “I’m very pleased with Primoris’ finish to 2019, marking our first fiscal year with revenue above $3 billion and revenue from Master Service Agreements (“MSA’s”) accounting for an impressive 44% of our total 2019 revenue, all in line with our Strategic Plan. We saw strong execution on projects across a range of end markets, from our solar project in West Texas, to pipeline field services projects and our Canadian operations. We also continue to see improving performance in the Civil segment. Our total backlog remains strong at $3.2 billion, with a healthy mix of MSA and project-based work. As expected, our fourth quarter cash flow was impressive, allowing us to complete our entire $50 million share repurchase and still end the year with a strong cash balance and a healthy balance sheet.”

Mr. McCormick continued, “As we look to 2020, we continue to be excited about the opportunities for both gas and electric utility work. While acknowledging that our 2019 results in the electric utility market did not meet our initial expectations, we believe that we have addressed the issues and we enter 2020 with our electric utility business ready for a more successful year. We also remain very positive on pipeline opportunities in 2020. Primoris has large pipeline projects already underway, and we continue to see active demand and new awards for both our pipeline and field services work. The bidding activity remains extremely strong. With the heavy civil claims resolution largely behind us, the Civil segment is poised to return to our targeted margin range and be a positive contributor in 2020. And finally, the growth potential in the renewables market is immense. Our team has built an outstanding resume of successful, large-scale solar projects and is poised for continued growth. The opportunities for our recurring, service-oriented revenue and for targeted projects lay the foundation for 2020 to be another successful year for Primoris.”

GUIDANCE:

Primoris Services sees FY2020 EPS of $1.70-$1.90, versus the consensus of $1.89.

• Based on current backlog, the level of bidding activity, and an anticipated corporate tax rate of 29%, the Company estimates that for the fiscal year ending December 31, 2020, net income attributable to Primoris is expected to be between $1.70 and $1.90 per fully diluted share. This estimate excludes the potential positive impact of a third quarter 2020 remobilization date for a major pipeline project in backlog.

For earnings history and earnings-related data on Primoris Services (PRIM) click here.