Primoris Services Corporation (NASDAQ:PRIM) Q2 2019 Earnings Conference Call - Final Transcript

Aug 06, 2019 • 10:00 am ET

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Primoris Services Corporation (NASDAQ:PRIM) Q2 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings. Welcome to Primoris Services Corporation 2019 Second Quarter Financial Results Conference Call. [Operator Instructions].

I will now turn the conference over to your host, Kate Tholking, Director of Investor Relations. You may begin.

Executive
Kate Tholking

Thank you, David. Hello, good morning everyone. Thank you for joining us today. Our speakers for the day will be David King, 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've 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 Investors site, you'll find the slides in the Events & 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 regard 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 CEO, David King.

Executive
David King

Thanks, Kate. Good morning, everyone. Thank you for joining us today to review our 2019 second quarter results. We're extremely pleased that we delivered another quarter of positive earnings, $0.35 per share and we ended the quarter with a backlog of over $3 billion, reaching another record in Primoris' history. This quarter marks the 44th consecutive quarter, Primoris has posted profitable results.

Our record second quarter revenue of $790 million was 22% higher than last year's second quarter revenue. I want to discuss the risk profile associated with our revenue growth, because I'm aware of others in the construction industry who faced recent challenges and it's important to recognize that Primoris' risk profile is different from many of our peers.

Our MSA revenue continues to grow, accounting for 44% of the second quarter revenue. This focus on growing our MSA revenue is one side of our risk management strategy as our utility-based revenues are stable, deliver good margins and provide several years of visibility. The remainder of our revenue is fairly evenly split between our other operating segments and we are not reliant on any one cyclical end-market or any one single project.

While it is true, we have a handful of larger projects, we place a strong emphasis on contract terms and most of our larger projects are either