Primoris Services Corporation (NASDAQ:PRIM) Q4 2019 Earnings Conference Call - Final Transcript

Feb 25, 2020 • 10:00 am ET

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Primoris Services Corporation (NASDAQ:PRIM) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, and welcome to the Primoris Reports 2019 Fourth Quarter and Full Year Results. [Operator Instructions]

It is now my pleasure to introduce your host, Kate Tholking, Vice President of Investor Relations. Thank you. You may begin.

Executive
Kate Tholking

Thank you, Doug. Good morning, everyone. Thank you for joining us today. Our speakers for today will be Tom McCormick, President and Chief Executive Officer; and Ken Dodgen, our 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 will 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 31st, 2019, which was filed this morning, 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, Tom McCormick.

Executive
Tom McCormick

Thank you, Kate. Good morning and thank you for joining us today to discuss our fourth quarter and full year results. Primoris' full year revenue surpassed $3 billion for the first time in the Company's history, an achievement that is a result of hard work by all our men and women in the field as well as our project supervisors, back office support staff and our leadership team. It's a team I'm extremely proud to lead.

In the fourth quarter, we were negatively impacted by severe weather and a few project delays, but we also benefited from strong execution in our solar, pipeline field services and Canadian markets. As expected, our fourth quarter cash flows from operations were extremely strong so we were able to complete our entire $50 million share repurchase program, benefiting Primoris and our shareholders and ended the year with a solid balance sheet.

Our backlog at year-end remains strong with 44% from long-term MSAs, and our current bidding activity makes us confident about 2020. We are continuously reviewing our bidding procedures, looking for ways to refine the process and ensure we are targeting the right projects with the right customers. Our funnel of prospects looks very promising for a great start to 2020. Our focus on SG&A continues, and we continue to