Primoris Services (PRIM) 27 Feb 182017 Q4 Earnings call transcript

Greetings, and welcome to the Primoris Services Corporation 2017 Fourth Quarter and Full Year Financial Results. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Kate Tholking, Director of Investor Relations. Ms. you, Thank Tholking.

begin. You may

Doug. us Hello you you, and everyone, joining today. for Thank thank

for be Executive Our and day the speakers will Officer; Chief Officer. Pete and Chief David and Moerbeek, President our Vice Financial Executive President King,

this highlight release to also In night you our posted call. time review slides and more discuss the before to last our addition on little our results a key call, giving plan issuing to to on points press we all we website have

them you access our the website, the can call. next to You by on today's corporate for section, in www.prim.com, going Once to Investors. the slides link the Events Presentations then will selecting & Investors webcast site, find

today's to are contain with identify projects, call statements, including we believes, company's as or the forward-looking similar may expressions intended everyone Before to like during begin, certain regard I'd performance. and future, expects, remind estimates, to Words future may such statements. made that forward-looking statements

be David new Commission. future to our and inherently afternoon, uncertainties, Securities statements of Risk risks and and whether other except under with was December section detailed for Exchange events call XX, to King. in over publicly period Report Form the limitation, press revise filings securities obligation a yesterday or turn applicable yesterday's now to XXXX, as XX-K portions including release, and on involve like update filed those Factors our may the in information, undertake or as and ended Annual other those Forward-looking discussed of the result any which without required Primoris CEO, laws. does the not statements, any I'd otherwise, forward-looking

for today. Kate. Thank joining us Thanks, you

a than better slide and discuss website our hear and mentioned, have flip on it But rather review. earnings through have slide Kate package. our As your to I've always you felt a developed presentation we've your questions for available

results we implementation and our a delivering finished per my note share. let plan. carrying as ended on strategic So, record a strong our remarks. momentum our me with EPS continue said, Primoris XXXX of begin diluted delivering annual fully XXXX, with $X.XX of year solid year continued We that into us

of We tangible fellow also while flow, continuing other our revenue fantastic from extremely projects, have a new pipeline strength, employees proud strong operations. new net four results. we billion, our levels multiple business large XXXX on cash of We to petrochemical record approximately $X.X reach level operating and great cash segments of solid new financial a together saw contributed units also performance, and MSA worth, industrial in as revenue, reaching all jobs, of and and unit of sales. year with business a flow my of increased achieved working record underscored our I'm leadership to power All projects. business on our execution

Our year results much greater than demonstrate whole parts. the of sum for its is the the

for as our I as with revenue it strategically was I growth shifted frustrating our we business margin for have to well. revenue our these XXXX revenue your billion now margin of years Both flat of revenue businesses our performing shareholders, and me, Trust higher our moved exceeds XXXX. $X.X far we backlog. performing our and past segments. backlog and back in higher the to frustrating of $X.X revenue have like sticking relatively us few record previous know us Our of the billion been appreciate quality

along our no without did profit the for revenue we anyone are is sake. with sure to as are revenue revenue. as Revenue earnings want not chase we you and see for good I'm just pleased improve However, to

profitability results. for we to upon XXXX in the will detail, discuss path these still tax one-time in and We're a plan year. in on that benefit quarter the of fourth in build the income our some we back from and further While net toward Pete gain saw the was growth improvement

see While $X.X extremely of to the decline the backlog you strong year revenue might Primoris robust backlog. growth, billion expect in ending total such backlog with face maintain an of

the MSA subject of I as on revenue out our approximately seen the Primoris' years this basis, point growth non-MSA growth quarterly on both sometimes to that fluctuating factoring of while I'm record the has last While backlog, level We've two achieved. levels work. as want even shown well compounded in annual XX% our a in in backlog, rate

Our million was year-end, of nature At and further growing strong backlog in balance work MSA it's recurring the over Operating invest tripled underpins strength acquisitions. equity to cash even as is than debt cash sheet us in as flow $XXX of over been our work and XX%. relationship-driven. more in very our as allowing million XXXX, $XX ever this ratio to with in under

closely fit XXXX, strategic our have a M&A we organically our that clear in years, at the plan. we past line we to few ability grow As as be acquisitions significant opportunities in for business while at continuing invest looking strategic would in we it's look as to over existing the opportunities to are with fund us lines have all

Jobs our As in our without the and (sic) Act Tax us, previous of Act] Cuts guidance earnings for was noted also Job with (XX:XX). release, good ahead press a QX effect with XXXX our Cuts quarter [Tax and of and

We a (XX:XX) only did the revenue with fourth also in we drop earning QX quarter in like level our at of high benefit even without having pipeline modest backlog. a large XXXX, revenues and ending [ph] projects continued two the

quarter end billion project quarter previously at backlog mentioned. have Our $X.X the of MSA the sales teams managed as booking to end continue the – to and to

remarks by our segments. my operating for Now

are for year with Tim projects results the ARB well by revenues to project, Power, I of oil labor fourth Two for also they through work. executing their and California-based the the fourth quarter, project in effect like XX large capital look closely capital pursue turnaround our quarter Healy the Industrial opportunities we and Carlsbad on and growth Bill with in power in As is customers segment. work. continue to opportunities the which union and quarter. opportunities refineries requiring and third takes gas increased market see is large start helped to Industrial We Industrial and California grow turnaround all when led should State seeing also essentially ARB the the OnQuest Engineering this in segment working at segments gas use market. the engineers our power turnaround oil maintenance fully

add saw challenge market begin you large horizon but as project While uncertain faced uncertainty remain that we the in Primoris very before several Primoris Carlsbad scale on Coast in additional construction. ARB notice Denver about storage the Industrial to details team starting the large red do tape the solar is gas power see full team. suffice with We're pick and the full our competition quarter on project see aggressive. those to to activity projects to well receive Where to working in when the fourth the team's the Gulf industrial be is to remains The their awards market our of we the Texas we could a battery a of can notice we out major power it opportunities Renewables growth Renewable awards they timing But are there give ability limited in that utility are win, to feel Primoris positioned market release we scale Texas. on pursuing continued to backlog. milestone of say up Industrial proceed. project natural is be Constructors sluggish the this the as proceed for We'll a timing in that renewables.

Our moving we with of and OnQuest recently results the The petrochemical project project heater quarter which engineering announced, work are finished the fourth for team but we XXXX. the last we for the on to continues unit our revenue on XXXX. be things deliver now was to as that Kessler's struggled delays in ways to great project, look improved this finding some a forward focus us in Randy as project replace during large year, from Louisiana

facilities. segment EPA in the work year PDC on X pursuing for Group in Fabrication grow work Maloney and our hydrogen also Construction for his are for successful first range. team groups FEED will a adding XXXX. engineers of EPC into for and and Service Construction their the Primoris. by to Primoris only providing awards opportunities plants syngas believe engineering Kevin We not and awards other are XXXX Our Design with PD&C growth inside EPC at and but Tier full our size in drive and target OnQuest Refinery compliance our & also build requirements capabilities look

Underground transmission growth quarter. as but over seasonal Distribution Utilities begin as This a saw slowdown a portion driven Diego significant their Summers by the was ARB below utility segment project experienced and in to Southern area. still a the team Our San fourth the XXXX's on California significant the with customer electric fourth ground Scott work quarter grid place saw in growth major they of

clean-up weather they As enough got impact slow which year. we an did with devastating winter fires typical profitability. not in some the earlier Midwest, on to from than the had their Scott's the we In short-term California to the quarter work look expect Northern see for QXC but hit the in ahead start in XXXX, team, offset to

the temperature teens. down Canada the imagine, can when goes you As productivity in Little is in

the area. nationwide In when working was comes, zero Jay. new Doug of XX also in it him Jay expect to spring looking this spent QXC the Just on new have in expand with to and Doug a still December, want by, role. has Distribution segment. to East Reeves the few to to potential promoted continuing up our we lead group we year. ago, jump that in with Coast most Osborn notably, another to closely work regions We but and years over stepped congratulate weeks Utilities see to some They President are strong below geographies

Services scale group David positive were We acquired grow Runyan's shop our to yet Primoris results. they is not had While the and same as quarter fourth open working in the solid the Florida Underground Distribution ARB to to QXC, forward a capabilities. segment's utility a contributor or look on recently with

Distribution at will not Our a Utilities a of end in record level it's of our MSA continue confidence while strength largely gives segment that work, the well perform of the this And years. backlog the coming guarantee backlog segment. reached quarter, MSA to on and us the fourth

to was in was revenue as Florida project large continues expected, the quarter, or later. possibly segment with while process. begin this we tree our some Atlantic believe were in until the Pipeline will Coast with The permitting substantially two bulk second projects. work forward down able of complete the falling quarter begin not we Underground Pipeline quarter Rockford the the in move and And As first sometime to

pleased million of this with Ramsey will complete continue $XX that to over our In year, efforts up of Rockford the promoted I'm advisory begins. announce we Welch ACP and Frank work with work say for January stepped years XX has nationwide And However, of promotion much to role. an will after help President Rockford Rockford, Pipeline did a we that in before Josh deserved company. to lead to

on to under on have pipeline was as be successfully strong contract well as we While combining both duplicative Coastal XXXX. their cost. Field Rockford's Services and are several contributions offices contract. the Services Jeff Coastal team will Field Primoris from now team Services revenue had addressing our year, understandably is and of we and we years a we this late quarter, largest major second Field company there in maintenance our acquired in remaining three quarter with Group Primoris are date that This combined down Today, that the executing Primoris Beginning Bridges. Pipeline

Primoris now full team four provide opportunity project favorable As the I our quarter. McRae's had capacity spreads crew ample They them them in the productivity as and conditions on Pipeline expectations in great and their region of mentioned, weather helped for Texas, Oklahoma Patrick quarter improved to exceed a looks main have XXXX.

Texas more The business project Dual to several they next the be the their XXXX with area, expansion in over Vadnais' robust Our Los group as helped other Vadnais strong in looks roughly is large complete pursue on have market should gaining ever seen. Main opportunities market Primoris Vadnais to microtunneling Angeles California years continue XX% which than project what the through units. continue Force Trenchless is we also the overall traction results. and deliver operations Trenchless Paul

great Texas and continues flow team Texas. money the the in another Taken Last select transportation awards profitable to Pipeline segment Underground with as Civil And margin we year for Heavy have year. the a whole, the through Prop to and its quarter, Buchanan's starting Louisiana. improvement Primoris quarter predicted see continued to of XXXX. Mark in segment Civil came in looks most win X segment, our we of and are

petrochemical and right. facilities. is thousands their the them the units addition DOT our installations. projects improved and drive large In as remarks, Primoris a of getting has awards busy to numerous to to (XX:XX) decline out I'd successful this be on in The ranging projects and pursuing our on work to projects, seen revenue to execution work we these office which project Concluding day. my Primoris team To airports continue the for many contributing of keep export workers ports, in work, in They're the who they up bidding on industrial segment. and in I&E on profitability of wrapped continue Louisiana. keep depends Beatty's reemphasize busy, uncertain business their out the has the facilities Gulf like tied the dedication each from many bring bidding LNG to and Jonas of solar as every to facilities been other Coast timing of fields pushed to success company with methanol slight

a employees' investors customers we and execution safety, from to business. awards our our and will safety continue Doing our the to reliability our awards superior publications. word dedication and industry do quality, also and industry only clients gain of of us company facet keeping say Year Our what but to and and we our is Project critical not quality

over it you. wanted of to to over hard success just continued their our in work Pete, all employees and I'll growth say I pass contribution Before to for Pete, you to thank to turn XXXX. I it our and

good Thank you, everyone. morning, and David,

earlier, As filed mentioned was our Kate Form last XX-K evening.

on to short the fourth So, version on and quarter your XXXX I of questions. guidance of then the primarily law XXXX, will change impact, focus briefly and tax a

our our quarter, million fourth jobs, very that those comparison. a work we quarter of Our jobs, by which gains pipeline two benefited each segment's on the And for had offset revenues at in Pipeline we million. earlier approximately and comparison, operating and other Pipeline the difficult In $XXX from Revenue three segments difficult XXXX was revenue $XXX year's Florida obviously only segment quarter of revenues decreased as million. much Underground last on efforts our fourth without ended construction $XX of year. this two

for quarter the utility fourth fourth our in which customers, of who XX% quarter customers two Texas nearly by largest accounted of revenues, accounted our Our quarter for large Transportation, together the were followed X% revenues. Department of

profit XXXX Our gross the XXXX fourth jobs. as profit two profit the fourth gross quarter was $XX with Florida successfully gross the quarter quarter XXXX the replaced flat for fourth million, we essentially of

of the percentage As change $X contingency to approved releases of fourth two Underground improvement year the equipment a Pipeline was percentage in for as XX.X% revenues, XXXX ago. most rentals. of in compares and projects notable and gross result million a benefit and gross profit the segment, the The which over XX.X% came quarter, pipeline of in profit a revenues in orders

want $XX hopeful total, In In be August quite quarter. XXXX thank everyone due expense XXXX. compared in million was Civil team in at not addition, my to that breakeven for million quarter XXXX making general prediction from involved. selling, fourth and $XX they SG&A gross my profit the effort forecast. administrative tremendous the in as our would the the successful a were, Heavy I in to to expenses fourth were for earnings last call half They of I true

million acquisition we Gas Field our startup Services, Excluding assets for acquired Primoris & SG&A and Coastal in now million Contractors intangible company, with startup reduction The as increase of business $X $X Primoris the of XXXX. did Distribution have SG&As is and $X includes million in $X million and Services, engineering doing acquisitions and Florida which for of units. business associated Design Construction the XXXX amortization expenses

but to do And and sheet. go. contingent had revenues a In earn-out reducing to the remain $XXX,XXX operations to head year, our increase other this integrate As long-term committed units of have We we $XXX,XXX a the of goal still expenses as toward reducing quarter, revenues should further included we earn-out ways income consideration. acquired on X.X% we of SG&A of begin liability December XX, at contingent prudently SG&A reversal fourth XXXX the we XXXX, expenses. a to of PDC balance

end As reporting I at changed know the heard tax of rates from you've company every other earnings, December.

law many minimal us have changes an the Of have operations, from depreciation. immediate future change non-U.S. tax in affects two the deductibility impact. only interest changes, we to While

tax that of XXXX for The In we deferred planned quarter fourth $X.X process, a requires full in our we share both and re-measure this first for impact XXXX GAAP per the which re-measurement that $X.XX million or liabilities. resulted year. XXXX, diluted and assets and is gain

discount accounting to people that have stress an it does $X.X million will in artifice, future. not some pay While to the that taxes represent this we cash gain of as I want

the to tax law second of change future The break is change rates. – a impact change tax our

in million fully expecting our the investment or Net XXXX attributable Primoris $X.XX compared or diluted the fourth XXXX million in our for quarter $XX.X fully $XX.X per fourth projects. share diluted Thus, XX.X%. tax rate an headline tax solar in $X.XX per income the effective and is year of $X to anticipated and million XX%. recognize that impact income we XXXX, effective our credits rate rate impact will after XX%, taxes to over considering tax a from pre-tax expect be benefit of we rate one-time In While closer federal of was state renewable to we levels tax for expect share are to investment from the quarter.

I the company's but you per works than doesn't the benefit, the earnings the our if extend quarter our XXXX year flow. sound was best more operating the At to million, three calculations math for were it three re-measurement know times history. in $XXX fully that tax share. cash decimals. cash operating $X.XX fourth was diluted Excluding it flow XXXX right

As who that are worked people very, a of There result, ended of very to with a we the of lot help $XXX million. company cash balances sort result. in the achieve diligently year us

credit sheet availability with acquisitions. strong of and provide powder potential our for Our us the dry balance on cash, our plenty line

million $XX for facilities net for invested $XX we During million $XX.X operating in remainder a on million These on capital which Houston the and projects. expenditures. million spent total XX%. And capital debt construction million million, million $XX $XXX year IT $XX We worth the net spent expenditures approximately on was million our and the California on such and solar we $XXX net and projects, as complex, between XXXX, acquisitions, on $XX XXXX, equipment, approximately included property, to office expenditures we ratio be plant $XX million. anticipate operating consolidated of and $XX of of equipment. In million site debt-to-equity tangible with ended our of

debt secured $XX equipment mortgage consisted $XX of and secured $XXX Our million of million debt million. by of notes, senior in notes

debt $X.X was Our weighted billion. fixed At of our X%. backlog average cost was year-end,

record MSA $XXX and a Our million, was $X.X backlog total backlog was billion.

$X.X XXXX, will we turned be expect that During backlog revenue. of that over amount billion into

me Finally, talk about guidance. let

exceeded of benefit the of guidance without the that we one we issued years We XXXX even guidance the are few end EPS tax have re-measurement. offered we year reluctantly but that last for range the for ago top pleased

Primoris share. diluted we and net to expect year between XXXX, attributable fully be $X.XX calendar per income to For $X.XX

based the following is Our on assumptions. guidance

in assumption, least yet starting second the we all we of At that with is the spreads as Coast time, at permits. does ACP project have not Rockford in quarter. spread believe aware, this required reasonable you XXXX but Atlantic we the working a expect will early Pipeline that have on First, one are three

is even on advance to a we will Second, rate quarter we (XX:XX), income start Primoris. no attributable in second in Hopefully, in erode perhaps, XX.X% we of anticipating of last that wrong XXXX. our we finally, receive to And scheduled assumption trial are Abengoa are XXXX. the from and receivable the assuming of currently amount the tax collection that

of until after with the ACP the start With of working kicking the the big of Louisiana will quarter, weather, first and work, not our with challenging. traditional quarter the work with the financial major Southeast off results first winding the in very project, utility be down winter slow

Operator? celebrate me on year revenues Now, as for this as your enterprise. In you XXth positive setting our guidance, for August publicly-traded this anniversary Based Primoris get let XXth its with a questions, both we will thought. leave be ready earnings. year, record will a and

you. Thank

We will session. question-and-answer now conducting a be

line Please question. from first of Our with your Securities. question CJS Lee proceed Jagoda with comes the

Hi. morning. Good

morning, Good Lee.

Lee. morning, Good

So, of call the the provide can more guys pipeline cost that their by around the with revision any ACP, to Primoris? clarity week just of upward on and conference starting one the of you owners the discussion of how translates last

within is start David. first out members' side. was Lee, bid, and on the scopes were fell laid responsibilities When this consortium one. the put certain there that clients' on together the Yeah. I'll project not that but

come I discussions and that we costs equation. some under so upward basis, obviously, price obviously, And some side. now where coming I consortium's contingencies, discussions little fixed start on scope that some we, and on the client different – as the pressure consortium think I think of and it was than, looking think, there's put when a at will there's push the our of some going side that over into they're that now back thinking, the they of bit was a seeing so what up we're scope forth

a that's being can't our timing of how matter then, for can on we estimates our And did do worked estimates I of speak their just side. side. speak they It's on on that. for how I out. only their All really

XX get you guys more margin we're less revenue next the it the – So, percentage or you does at to how dollars gross that simpler looking impact I when of a and does but terms, mean translate putting then potential putting more through guess, in months? that

the out of on because I the way but that probably Well, to whole better work up revenue for side it's not is, work go our the the see the probably actually some yet to decided think yields it going you'll consortium than consortium client. do for yeah, members it's totally

think to of some you'll see cost the I the project. up. yeah, we're very Obviously, So, sympathetic that overall of go

– We so took to a to margins if would willing the they want creative some ways the risk, higher. we're be be portion has are certain risk there that take to they that on. If And our stay if but we margin to with trying them risk. lower take obviously,

So, size revenue short Lee, yet your changes. see think for you the consortium yeah, a seen answer question, and to of I margin the some will still there's to the any members be whether go up,

to it then increase And we switching we you're through chasing the as has. up the of to the percent Can Okay. Meaning, there percentage bit MSA sequentially led the that year? gears about how and MSA drivers of just obviously, expect as to MSAs the is little of grow that go continue some very trend work XX-some-odd-percent sequentially can should this make total then that a the is as talk backlog backlog, backlog additional in MSA you to strong. a

Sure.

As in line if guess, our three we out, you – you is of gosh, work I'll But getting they distribution, most other was work that ways, that. words, a year-and-a-half MSA heard electrical ago, In a started about other some types also. was do. talk to start work work, been really scope transmission of about in Utilities increase Distribution and year this our I going additional and we underground, MSA that said looking the get me ARB although biggest have Group segment groups our ago, of Underground know, the like and things oh remember in you've into it's

years, provide our out those So, that of branched have do customers could them. types customers been over we loyal the that to work of for we've some additional

helped group. our that we've expand some Group, MSA ARB QXC of Underground. the the continued with So in that to growth With

which, As Iowa, areas continue those in and Denver, more we growth to area, way, look the were the people equipment. that some that to and with at down know MSA the the Midwest crews, also, margins the of across as so, know, expand but they get we you the a Minnesota, QXC associated into more by I we Group, we've some you came with cost remember that new got expand when obviously, have

of And Services usually up bulk course so then of following we're Group, we've to see on which performance. continue in and relative work catching so done margin it'll Gas MSA looking start their to bought Florida the work is then And and we Distribution to the renamed quarter that Florida Primoris the grow.

throw three actually So, plus we pretty filings, smaller a it's when some in in I you you albeit some amount MSA bump up the see groups. good of picked and a those MSA that our some know together, in of other

Thanks much. very I'll back in. Great. hop

sir. Yes,

Our with the question line from comes Please next with question. proceed Matt Duncan your of Stephens.

guys. Nice morning, good Hey, quarter.

Matt. Thanks,

first So, I've got, of couple in question just a margins things on the quarter.

lower a the in compressor based had release project that what's a were margins bit had you that of the on on a project. margin Where for of are On the you like forward? and substation going something project, Power timing business, terms completion little you where sounds segment outlook particular it in press

left. about fully We're XX% our reserved obviously, project, that $XXX,XXX revenue of $X about on anticipated particular done. we've, And of about Well, provision. million got we've loss

minor to very three got lots opportunities. obviously, next at impact going see challenges and forward some XXXX. look we've of see Power so we at of that's California, we'll And quarters. you So, the into be a the certainly going opportunity for in And doing work There's, Carlsbad have market, there, if the overall we that.

power them say them. group opportunity on I comments, bit nice, a add to I'm yet Matt, Healy's ready my them pretty not good Tim side winning. pretty in of to good pretty We're out alluded projects that I mentioning. feeling I'll we've feel in but little Pete's or us that Yeah. couple the we've yet not sizable about got a whether won about

don't will the I will much. them, think tape that one red of think, I quickly move One because with too associated relatively be

The longer. a with other it through job that to that red one may be be had has tape like the little worked just so some Carlsbad associated

and projects us, the storage from you'll all of facilities I You that also think some some that our pretty are in those heard Texas, about us sizable battery us short-term. doing that we're in announcements coming for the solar type talk see

stations. from on that the the chances. talked Power, inside that segment. add Pete write-down an on Industrial we it's on side, about will handled compressor identical our on actually It the stations. Same by I project two were was mentioned the different feeling thing pure Power standpoint more opportunity – that customer. in So customer managers pretty the compressor one two we're good still about They

acknowledged deficiencies process. via they them, their of the One order change

other that just going the anything want following obviously, as recognize but fully the the don't how after that's of do do course, write-down know, But level, things. us we and one, been didn't and they we so that's took change you've we, you And if those you orders. acknowledge it. at The always to thing – conservative on I have, did PM

is What to size go impact? Yeah. the get are that to how would If change you be? that that of much order through,

asking. of the size impact, The he's

you're of dollars. million a Oh, couple probably talking

here been have I-XX based where you And guys the then Civil That to Remind perform the the And quarter, first you've type to for impact How there first specifically, Is been there? in I'm us think margin much of segment profile going in of work. you Rock, both the the clears, moving work the Little on very that far quarter. continue see the of improve. nice on over guys are business, obviously you on having in wet been much right. in ability Once after obviously, that in making quarter? you left we an do to work have that Dallas, so up it's the but that All Okay. are us changes profile helps. in down to going in margin to then, that should how about the segment, forward?

Okay.

Let much reverse to answer me moving it's those of finished projects on affecting – phases. kind first. of that had the not really weather because either bulk are the We the or in side us latter

little you but if on Matt. affects ground the coming it of like it, yeah, were So, you bit out a not

the ones One the those five of Three several So, other were the a had are give finished. end but we I'll discussions We year. it Maybe TxDOT. of and of you ahead – us. the you'd write-downs think, anyway. I and that our took nearing flavors we about this has on ask one is essentially completion you on projects. to continued five the less all way since the the but go go basically question this will pretty effect turnaround, with and projects much asked We've it isn't had

year. put LDs some getting And we'll user claims hopeful released are our most released this that of I'm as fees road through We get that we in. and

XXXX. the Okay. in I That the of had thing last top-line is outlook just helps. for terms And

given You all of what you've guide care you comment capable growth year, to at in marrying this of kind total earnings the business is of line to of type us? think the that terms top up

we Oh, give I don't know if let you... that. I'll Pete,

We revenue traditionally give do not guidance.

but numbers, than us I to grow – expect are think that certainly where were but I year, going comments you think it's billion, see to and got going I'm more say we to increase over record there. I'm to $X.X an expecting stop from my so, we this

think is, have reason guys, guess year, would pretty your growth I this I happening positive and Yeah. I a the ask, looks here. like you've of pretty the chance got it to segments most I got that things you mean, healthy in

about So, just right. sure make to that trying I'm thinking

smaller because very comment, we – teams leadership we ones. worked certainly acquisitions, the organically will and how worked looking major of The have some Matt. did hard and didn't teams have we I we grow the any kind but made Yeah. make company,

coming about company. just the you're is growth organic So, growth in that all seeing from this

moves hundred come, in further and you Pete's just we forth see if lot job, a on coming delayed so I portions make comment. couple dollars of – I We ACP a you doesn't got therein, the or revenue when yeah, will revenue know but also our been it (XX:XX) could want see of something. cautious definitely positive So, burn the say, things hedgy some Yeah. A of little on it, a depends too. to it if there million if

Got it. Thanks, guys.

Thank you. sir. Yes,

line with your Thompson question. the of comes question Davis. proceed next Adam Our Please from Thalhimer with

Hey, guys. good morning, Nice quarter.

Appreciate Adam. it. you, Thank

for directionally, Hey, talked Pete, expectations more you color a you about – just QX? but give and your can little this

a quarter. Not terrific

had not do we're, as Florida two I when well going did – the to last as year we we I think projects. obviously,

we're to very think going I be challenged. (XX:XX) very,

to have whatever get it's meaningful happen At a we've whatever track first of to we every record in quarter. And work since then we're our point, swamped hard next by being I've three we things first to little quarter get the that would quarters. is, litany that profitable of in going number some quarter, going this As obviously keep quarter there's first like sort But said, public. get of been to the numbers. to

Okay, that's Civil margin the helpful. is side, on do X% this And like feel you level sustainable? then

do. I Yes,

margin a question things if and lot about little little from which might we getting cautious you're to As make Matt but jobs – from advantage it I'm and have and comments, out from you that. we in bit I after project always we margin to that asked projects plenty am and selective coming really selective you, a add this which to cost that bad after. bidding told start know of strategic started. very called selective bid to ones I of it we've had the because my get so, off, area we've more us projects Civil went jobs I when little there, ground, There's that in cautious you allow try weather of weather, a went earlier sure kills perspective the and a on those you very that A on work, I – like perspective out on really been – on these the on a a done

run we into as battleship. you as then thinking – it's a getting We a we're So, in a exactly kind but going battleship continue a I'm that done some will don't when a yet, that see can the turned. It's battleship it's in headed in in has group group do, some that not improvement in and cautious. you have battleship want like pointed of the anomalies Civil direction. and I that superb we certainly little And I is to right the expecting, large that direction that one provided Mark tell I'm But think group. I was job it headed projects right direction they we that just not Buchanan direction. had to get like

I all I'm kind then after of But as know reason. And ACP? of it for Great. what XXXX a large bidding seeing relates hyper we're and you're kind good curious just the Okay. in focused in market to pipe ACP and

The talk promise we you with little but out available until Pipeline gets I'm down of go when it's come the we're resources, a back activity fact yet. talk on people got can't on We're still some. (XX:XX) to it. it know said off, pushed still me seeing to a that obviously, I but to don't seeing them kind to in going and of you've business resources in you not And the drop there. drop put the it's off to certainly have lot seeing bit going

SG&A SG&A Pete, you see want And or just slowly dollars the SG&A. than revenue? Are about to reduce grow talked then, Okay. you you to trying more

tax especially accounting as is get to There you'll there. Pratt to a I X.X% to here, know places goes bit to would reduce goal the that But regulations can of and were that's kind long And up, regulations think easier. the revenue some just think expect to XXXX, we with say of of revenue improve. all Brian in but going down will the and that increase We as dollars. – dollars, revenue. we that If our of get makes say see goal is are revenue. X.X% business and I a sit little he'd our out the nature slight I'm I

I dollars and percentages at spend dollars I add are. dollars I'll Adam, to can I what know and that. I can't spend also. look only

at up And In things a at tend a nature. other that the more words, put look it, I of so, think we with with should cost But associated don't it a more I unit people goes cost dollar on if of cost they that it. unless and percentage look certainly the basis. revenue dollars associated it's operating, necessarily don't value to job. I the the leadership, when and with sit get

be just then, you lastly then XX% using but tax XX.X% And Okay. go to this rate, Pete, the for year the rate? said on we you year, guess, I next should

credit The only. is on one-time XXXX a Correct. impact investment tax

so Okay. much. Thanks .Thanks

Adam. Thanks,

proceed from with line Our Please Tahira Markets. of the next question your Afzal question. comes Capital with KeyBanc

only one years guess $X. XX morning, folks. around roughly Good remembers all, your of stock who first And be ago, I the I might started

on to all team congratulations hard work. your So, the

Thanks, Tahira.

Thanks, Tahira.

here wasn't myself. I

the Now, Pete of was it. here for most

others. pass Brian that definitely and So, we'll to on

Fair enough.

for in and So, I really your the all levels Underground prepared about guess question, David, first you comeback, the talked commentary, my segment. activity Pipeline the

there with could within is Of course, a mix, you up pick as other revenues segment moving to ACP up, going are sector parts, feel Do up consequence, but your year? also too. end that this

that last I your hear I'm Pipelines question. with didn't the end sorry, part Tahira, the apologize. I of – could up

problem. a Not

revenues Underground, So, and up also and for Pipeline the Pipeline Underground year? this be could

could, in which out pipeline obviously we're the with Pipeline other making the be to was shop burn that Group, got they it. open was going which side. Yes, work a announcements will years, Texas-Oklahoma a to the Yes. we optimistic area. pipeline kept to I'm carrying in over last capabilities. seeing – I And capabilities in that of type spread on mentioning that they we've and some were do, activity going your here to and the revenue yes. group point want our that very building shop answer of our that for couple is XX-inch be four years, And Primoris of the XX, open question, calls – over on of And the I we really got fourth Tahira. we're And spread the There's Group. even even the Rockford I – quarter, under out got little lot that our we've

So...

Got it.

years. is year? in-line some – there orders you booking rewind resources the Okay. next you let's But tight, couple a given if of of are be could fairly tied look have David, ACP your the at Obviously, back you and for year middle somewhat. by and the pipeline And, cycle

or Group the Pipeline? Rockford the under under on about talking Primoris you Are Yeah.

the Just (XX:XX). generally for

Yeah.

it Let this way. me answer

some You're announcements some spreads going we on our major things. Group us seeing that start booking Pipeline Primoris to from and are

probably Rockford most you year. the of it see Group, won't this On through

Underground, the so I unless the pushed were would begin probably go the later or of year, next that. on start – question got in area. Pipeline And I to booking major our Underground back remember, way revenue got forgetting we like with at one, in but need Group Los something doing come job ACP we've out work that maybe Angeles it on we're in and year, following your go Pete and of some quarters but couple always me, that news this some about You a Pipeline something you seeing we're that certainly if winked keep them. being and if long the get we're not Vadnais back there also won't to a that at doing over other that

some revenue we And see Vadnais. of will good out so, burn

Got it.

love we David, to thoughts guess, I what you all that? last any your tax around hearing these year, to are also sense, spend appealing Are with then, for would CapEx Perfect. Okay. now any looking coming they what or And more is are on last refunds customers? are in, get And so versus where buzz year? versus you – far is M&A you having given from

Okay.

question. First, I'll start with your tax

companies project earnings, we're taxes. looking they're particular that at okay, great, them their on them more up don't which any seeing looking the think most at of how they're frees look I situation, saying, this because invest frees and better the it. tax money up of to, some obviously economics to it talking think the they obviously, look project at I more

driven a methanol some stalled FEED has how seeing sides, side, all even moving it these LNG we're of of project does whether the done, the not economics and sudden, or be facility they not some a particular some man overall say, thing the sudden offtake I'm all I'm so the the gas on of or changed, that tax forward. that – methanol other by type the Those little projects of facilities great have on agreements So, of seeing been the that LNG a have methane are bit, more of them look. facilities, got

Right.

and want at to always fifth about say to on them a I helping company. economics got level to because tax the I the overpay particular segment me regard when fifth he the companies customers the I board XXXXs bidding Xth add what and should one. us, I at the But us, I buy. some law seeing But M&A, know looking to laughed strategic we always don't Now, the talk from yeah, and group dimension opportunities Dimension are one the the and for company very we're at that they're XXXXs tell for a pulls out me. for we've you, absolutely. Brian shows in again, that We not has to guess, more old and particularly going with project want to – picture we're it of something. that the obviously we to

Right.

not (XX:XX) the to right thing. think going don't that. I that's just do I'm

we're So there, we're out looking.

we go that. the Pete do to growth powder right lot mean, we can we've we, We first has lot my very have it. a we of certainly got But done said, As and got got dry that of wherewithal. I'm say, now. the try was and I organic to proud of team a accomplished

that the bit you might some can we worried there the Now, if one. And them right but little never it's out I'm know. right on one find that We see to are at find multiple. overpriced right the of a multiples

Got you, David. Thank it.

Yes, I mean, ma'am. sir – yes,

Davidson. with Our the Please line from next of question Thielman question. your D.A. with proceed Brent comes

morning. Good Thanks. Hey.

Good morning, Brent.

morning. Good

and year be pick the up Distribution of like Utility sort sounds I to probably the the but about stages as construction a notwithstanding early should some work XXXX talked that Distribution] of here start that start, (XX:XX) (sic) through or a Does for before year? could hit margins. of tailwind and course kind think you've start what business, On strong we move here really to in [Utilities tougher

Yeah.

Northern it in point, when a them their with for this little a dealing system. while it I you're will utility, think take at California all large to get

challenged go that and last the probably think sometime the it'll they on quarter same fires I That is, obviously, utility So, start second there. in with year. had from

sometime think somewhat focused we're there. that seeing second But the they're start in anticipating So, I quarter.

the gone there. pieces And Okay. understand kind year. Engineering moving business, the been we've the as to moving lower backlog then just of has Power, through trying The Industrial,

You look really whether reverse be that there catalyst landscape it's you are at backlog Coast gas-fired Gulf trend? or the of that power, to that areas stick the to couple a are out or of renewables kind

got. right. further comments, those down, pushed the in there, getting come revenue out we've things, and keep the burn just and big continuing our opportunities was opportunities a the Coast course, Gulf backlog got projects the jobs mentioned we're of have it's our after that coming we've The to little Yes. was the petrochemical teams that bit down reason And, on to I

their articles get but projects maybe all I going push their them, on economic that to LNG of not and reading the think get some their we're some offtake the behind project of an out already see of some some beginning of standpoint. happening. – agreements, from there is, catalyst of organizations the a these as bit seeing and of them have more to started some I'm little

off with be there. As the these going gets going, large crackers, there's and ExxonMobil one work ethane be obviously, spun Gulf to will Coast up that

out. and just when work there. pushing that see matter It's start they So, I of start a actually the catalyst really

just tracking my the feel we're I them. So, is them. It's timing about good issue.

Okay.

still in of a have million? Pete, profit Okay. Is to it. through work this work revenues? the attached maybe then year, $XX guess that have And they that to million won't think one Any $XX a Civil I for range you there?

of It's really provision loss first about million go $X there's of the left. through quarter to going And XXXX.

probably you're $XXX So, those revenue in over of talking to five quarters. of terms million $XXX million

Great. Okay. you. Thank

you. Thank

comes Burleson question. question your proceed with from with next of Canaccord. Please the Our Bobby line

Yeah. Good strong morning, and congratulations results. on the

Thanks, Bobby.

good really the potential main if now of it of upside what to are that Is how probably guidance guidance couple timing lot I a ACP XXXX, quarter that full in there guess, a really for the could there. sneak you the Curious questions of for that? the I terms A of happens asked. conservative is with ramp-up sooner? a being. is you're if catalyst And expecting guys particular in

The answer sooner. is, happen yes, it could

or us us gets to the now, we to start, the closer be of top a and Depending If saying bottom XX%, our the get XX% end. we delayed top to we'll we closer on guidance. of help at certainly that's over which XX% get the anticipate backlog would you end Unfortunately, are where that's if challenging spreads. be right XX%, to it end We more this and year. somewhere three toward look going we when have to anticipate we're the more toward going lot

it's just So, one of it now does – main really is right the drivers when start. that's

yeah, P&L impact from going biggest that's a year. to basis just strict So, for have probably the EPS the

like pipeline, the Civil of And the what in sounds or are about lot margins Curious update better talked construction. just look Civil. the for residential you not getting back then of in margins the in behavior bid on bid what and competitors And industries left coming in have space bidding and a in whether terms of space Heavy an folks to are anecdotally Okay. that doing gone past and like it irrationally. other

in Yeah, that of business. Yeah. of in that about comment Bobby, I'll two two – competitors types customers business types

in look that a job, you things start and the I thing some some hard, I'm stung the of going obviously, have out more there. going have start trust of done, what, TxDOT of have that weren't plenty say, same still bidding had actually Texas to I get have know us which still get the work healthy being You, like we've of those some on larger little so it, done And selective. issues the of have like I'm entities. of quite gotten out and our the – if business, don't on okay? lot some it Civil went me, much them You them of out smaller is to as you at others, we don't there, higher, that, competition and and with some they've that's contractors The and only one a and and

get it the but double-digit there's So, were far the in they people lot margins for as they some I'm coming going type a because seeing before. bids still a the It's from of is it. not But up seeing to competitors of that that out upward improvement is go all are are be pressure general, a improving, what is margin bidding to takes stupidly bond we as okay? on and there can performing,

jobs. smaller lot And that's I'm some So, contractors that's struggle be going still if especially the out some to seeing of ones anticipating alive. a we're of still bit upward mobility stay with there, bidding I but don't helped my to a they'll on the comment, know little margins. you of on

That's percentage one, all you of next up, from revenue, work your helpful. come work as just But now I MSA what you MSA percentage And that roll could MSA maybe grow? that where could getting in you're some last general, to over know as total of years just a facilities. few to ceiling see a the if revenue continues then outside of

don't you knows I it at a really look and start percentage. the if I'll percentage. he can out certainly as percentage, the actual Pete Yeah. give

work to time yeah, look, into coming off and was MSA-type going or good it's Sometimes MSA at that the revenue. at guys look and our It's of for recurring like It's there upward of say, relationship-driven. to it and say, tend look needle I work something is I was one revenue right. I okay, at know with good work. it us. the want XX%

Summers' like what something did going I'm got it's else ARB a then out that's If QXC customers one try region another that him in see for and good Scott you've of pushing go can at did, our out Underground. group for. customer, to we with like If bid

for goal like to that. XX%, looking percentage. a again, the say XX%, I not I'm really in or the XX% XX%, have anything So, mind don't actual dollars

percentage So, know if you the is don't Pete, I or know not. what

I've I I work, don't just percentage of – MSA if think I think pass revenue I that. given revenues, Well, total may the their you give so on guidance,

business of increase we I to into will and think as obviously, that's driving the dollars. areas, we Then that that percentage rest it what's the get what in you quarter the be the in the start new just good business find our going how a to the is is a doing. expand business. always solid we've But well is and as function excess looked of of at being business of recurring

a lot. Great. Thanks

Bobby. Thanks,

call I'd over hand queue. to the back management to closing comments. for questions There in are no the like further

today's Well, thank participating perform. and very Thank to you, appreciate the to everyone, Primoris, you ongoing Bye-bye. on conference for We in questions continue much. try call. interest and your we'll

and teleconference. gentlemen, conclude you Ladies today's Thank your this participation. for does

this your and may have wonderful You at time, disconnect a lines day.