Primoris Services Corporation (NASDAQ:PRIM) Q1 2019 Earnings Conference Call - Final Transcript

May 07, 2019 • 10:00 am ET

Previous

Primoris Services Corporation (NASDAQ:PRIM) Q1 2019 Earnings Conference Call - Final Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
Operator

Greetings. Welcome to the Primoris Services Corporation Reports 2019 First Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) Please note this conference is being recorded. I will now turn the conference over to your host, Kate Tholking, Vice President of Investor Relations. Ms. Tholking you may begin.

Executive
Kate Tholking

Thank you, Jeremy. Hello, good morning, everyone. Thank you for joining us today. Our speakers for the day will be David King, our Executive Chairman and Chief Executive Officer; Tom McCormick, President; and Ken Dodgen, Executive Vice President and Chief Financial Officer. In addition to this morning's press release, we have also posted slides on our website that highlight key points we plan to discuss on this call. You can access them by going to our corporate website www.prim.com, then selecting investors.

Once on the investor site, you'll find the slides in the Events and Presentations section next to the Webcast link for today's call. Before we begin, I'd like to remind everyone that statements made during today's call may contain certain forward-looking statements including with regards to the Company's future performance. Words such as estimates, believes, expects, projects, may and future or similar expressions are intended to identify forward-looking statements. Forward looking statements inherently involve risks and uncertainties including without limitation those discussed in this morning's press release and those detailed in the risk factors section and other portions in our Annual Report on Form 10-K for the period ending December 31, 2018, and other filings with the Securities and Exchange Commission.

Primoris does not undertake any obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events, or otherwise except as may be required under applicable securities laws. I'd now like to turn the call over to our Executive Chairman and CEO, David King.

Executive
David King

Thanks, Kate. Good morning, everyone. Thank you for joining us today to review your 2019 first quarter results. We're pleased to continue Primoris' unbroken streak of positive quarterly earnings. Given our usual first quarter seasonality and the unusually extreme weather faced by many of our business units, our first quarter results demonstrate the benefits of our diverse business model. We ended the quarter with the largest backlog in Primoris' history 2.94 billion while also achieving our record Q1 revenue of over $660 million. It's worth mentioning that our backlog growth came from both our fixed and MSA backlog increasing 6.5% over our year-end backlog. We've been talking for some time now about the funnel of opportunities we see in markets that traditionally go into our fixed backlog. And we're pleased to see some of these projects moving forward.

We also continue to focus on the cost side of the business looking to keep our SG&A at a reasonable level and I'm extremely pleased with our success on that front as our trailing 12 month SG&A as a percentage of revenues is now the lowest