Primoris Services (NASDAQ: PRIM) reported Q1 EPS of $0.12, $0.19 better than the analyst estimate of ($0.07). Revenue for the quarter came in at $818.3 million versus the consensus estimate of $764.72 million.

For the first quarter 2021, Primoris reported the following highlights:

• Revenue of $818.3 million, an increase of 10 percent over prior year
• Net income attributable to Primoris of $5.9 million, compared to a $3.7 million loss in prior year
• Fully diluted earnings per share of $0.12, compared to a loss of $0.08 in the prior year
• Cash flows from operations of $7.5 million, compared to cash used in operations of $5.5 million in the prior year
• Backlog of $3.1 billion as of March 31, 2021
• Completion of the Future Infrastructure Holdings, LLC (“Future Infrastructure” or “FIH”) acquisition

“We had a strong first quarter despite $13.9 million in transaction costs and a one-week shut down from Texas through the Southeast due to the historic winter storm in February,” said Tom McCormick, President and Chief Executive Officer of Primoris. “We accomplished a great deal during the quarter, starting with the successful reorganization of our segments, followed by the completion of the acquisition of Future Infrastructure, and ending with the completion of the Company’s first secondary public offering. We now have a structure primed for success, as well as much more financial flexibility to not only support our organic growth, but to also provide us optionality in the acquisition market.”

Summarizing the segment results for the quarter, McCormick noted: “We are beginning to show the benefits of our strong project execution. Gross margins as a percentage of revenue in all three of our segments increased over the same period in the prior year by three to four percent. Our Utility Segment led the revenue growth with a 34 percent increase compared to the same period in 2020, primarily due to the Future Infrastructure acquisition and increased activity with a significant customer in Texas. Solar energy projects positioned our Energy/Renewables Segment to increase revenues by 17 percent. Our Pipeline Services Segment revenue declined, as expected, although our gross margins, as a percentage of revenue, increased by three percent compared to 2020.”

GUIDANCE:

Primoris Services sees FY2021 EPS of $2.30-$2.50, versus the consensus of $2.39.

Balancing the ongoing uncertainty surrounding the COVID-19 pandemic with the expected growth in operations, Primoris estimates that for the year ending December 31, 2021, net income attributable to Primoris will be between $2.30 and $2.50 per fully diluted share. The revised per share range is a result of dilution from the additional shares issued under the Company’s secondary offering partially offset by better than expected first quarter 2021 performance. The Company is targeting SG&A expense as a percentage of revenue in the high-five percent to low-six percent range for 2021. The Company estimates capital expenditures for the remainder of 2021 in the range of $60 to $80 million. The Company’s targeted gross margins by segment are as follows: Utilities in the range of 12 to 14 percent; Energy/Renewables in the range of 9 to 12 percent; and Pipeline Services in the range of 9 to 13 percent.

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