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PRIMORIS SERVICES CORPORATION Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 8, 2012 01:22PM

PRIMORIS SERVICES CORPORATION (PRIM) filed Quarterly Report for the period ended 2012-06-30. Primoris Services Corp has a market cap of $648.7 million; its shares were traded at around $13.01 with a P/E ratio of 11.5 and P/S ratio of 0.4. The dividend yield of Primoris Services Corp stocks is 1%.



Highlight of Business Operations:

Revenues for the three and six months ended June 30, 2012 were $337.4 million and $629.0 million, which were reductions of $14.5 million (4.1%) and $82.6 million (11.6%) from the prior year, respectively. The respective prior year periods included revenue of $89.5 million and $216.4 million for the Ruby pipeline project, substantially completed in 2011. Excluding the Ruby revenue impact, revenues increased by $75.0 million and $121.3 million for the three and six months ended June 30, 2012. The increased revenues are primarily as a result of increased project work in the West Construction Services segment for both industrial and underground projects as well as the impact of the March 2012 acquisition of Sprint, which contributed $12.8 million and $14.9 million in revenue for the three and six months ended June 30, 2012, respectively.

Gross profit increased by $2.6 million, or 6.3%, for the three months ended June 30, 2012 and decreased by $0.4 million, or 0.5%, for the six months ended June 30, 2012 compared to the same periods in 2011. Gross profit for the three and six months ended June 30, 2011 included gross profit for the Ruby project of $14.4 million and $25.5 million. Excluding the impact of the prior year Ruby pipeline project at Rockford, gross profit for the second quarter 2012 increased by $17.4 million and for the six-month period increased by $16.8 million compared to the same periods in the previous year. The increases in gross margin were due primarily to the increased project work in the West Construction Services segment as well as the gross margin contribution from the March 2012 acquisition of Sprint, which contributed $3.8 million and $4.6 million for the three and six months ended June 30, 2012.

Revenue for the East Construction Services segment increased by $11.5 million, or 8.0%, for the three months ended June 30, 2012 and by $5.3 million, or 1.9%, for the six months ended June 30, 2012 compared to the same periods in the prior year. The revenue increase was due primarily to the March 2012 acquisition of Sprint Pipeline Services, which generated $12.8 million and $14.9 million in revenue for the three and six month periods, respectively, compared to the previous year. Excluding the impact of the Sprint acquisition, revenues decreased by $1.3 million and $9.6 million for the three and six months ended June 30, 2012. The decrease was due primarily to decreased industrial work in the petrochemical sector of the Gulf Coast area, offset by increases in infrastructure and maintenance work. Additionally, heavy civil decreases are due to the substantial completion of a large causeway project in Louisiana in the prior year.

Revenue for the West Construction Services segment decreased by $29.3 million, or 14.9%, and by $91.4 million, or 21.9%, respectively, for the three and six months ended June 30, 2012 compared to the same periods in 2011. The three and six months ended June 30, 2011 included revenue of $89.5 million and $216.4 million for the Ruby pipeline project, substantially complete in 2011. Excluding the revenue impact of the Ruby pipeline project at Rockford, revenues increased by $60.2 million and $112.4 million for the respective periods. Revenues for our California underground business increased by $22.8 million and $52.7 million, and our industrial business increased by $19.2 million and $34.2 million, for the three and six months ended June 30, 2012, respectively. A significant contributor to the underground increase was pipeline integrity work for the major California gas utilities while work on power plants provided the major increase for the industrial business.

Gross profit for the West Construction Services segment increased by $2.6 million, or 12.0%, for the three months ended June 30, 2012 and $2.2 million, or 4.8%, for the six months ended June 30, 2012, respectively, compared to the same periods in 2011. Gross profit for the three and six months ended June 30, 2011 included gross profit for the Ruby pipeline project at Rockford of $14.4 million and $25.5 million. Excluding the impact of the prior year completion of the Ruby pipeline project, gross profit for the second quarter increased by $17.4 million and gross profit for the six month period increased by $19.5 million compared to the same periods in the previous year. The primary reason for the increase was the significant increase in volume in both the underground and industrial projects.

Read the The complete Report



Stocks Discussed: PRIM,
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