Primoris Services Corporation (PRIM) has reported a 15.25 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $14.47 million, or $0.28 a share in the quarter, compared with $12.56 million, or $0.24 a share for the same period last year. Revenue during the quarter grew 21.06 percent to $601.86 million from $497.14 million in the previous year period. Gross margin for the quarter contracted 142 basis points over the previous year period to 11.40 percent. Total expenses were 95.19 percent of quarterly revenues, down from 95.48 percent for the same period last year. This has led to an improvement of 29 basis points in operating margin to 4.81 percent.
Operating income for the quarter was $28.92 million, compared with $22.47 million in the previous year period.
David King, president and chief executive officer of Primoris, commented, "We ended 2016 in a stronger position than we entered it. The growth in our backlog reflects strength across our end-markets, as our customers continue to release major infrastructure projects, especially in the pipeline, utility & distribution, and industrial markets. Over the course of the year, we have seen improved visibility on start dates for large projects in our backlog. In the fourth quarter we continued to improve our cash flow while carefully managing expenses."
Operating cash flow improves significantly
Primoris Services Corporation has generated cash of $62.58 million from operating activities during the year, up 29.35 percent or $14.20 million, when compared with the last year. The company has spent $59.42 million cash to meet investing activities during the year as against cash outgo of $48.52 million in the last year. It has incurred net capital expenditure of $1.39 million on net basis during the year, down 88.77 percent or $11.02 million from year ago.
The company has spent $28.46 million cash to carry out financing activities during the year as against cash inflow of $21.80 million in the last year period.
Cash and cash equivalents stood at $135.82 million as on Dec. 31, 2016, down 15.70 percent or $25.30 million from $161.12 million on Dec. 31, 2015.
Working capital increases marginally
Primoris Services Corporation has recorded an increase in the working capital over the last year. It stood at $281.44 million as at Dec. 31, 2016, up 3.99 percent or $10.79 million from $270.65 million on Dec. 31, 2015. Current ratio was at 1.63 as on Dec. 31, 2016, down from 1.65 on Dec. 31, 2015.
Debt comes down marginally
Primoris Services Corporation has recorded a decline in total debt over the last one year. It stood at $261.77 million as on Dec. 31, 2016, down 4.91 percent or $13.51 million from $275.28 million on Dec. 31, 2015. Total debt was 22.36 percent of total assets as on Dec. 31, 2016, compared with 24.31 percent on Dec. 31, 2015. Debt to equity ratio was at 0.53 as on Dec. 31, 2016, down from 0.57 as on Dec. 31, 2015. Interest coverage ratio improved to 13.39 for the quarter from 10.58 for the same period last year.
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