Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 30, 2020 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2020 | |
Entity File Number | 001-34145 | |
Entity Registrant Name | Primoris Services Corporation | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-4743916 | |
Entity Address, Address Line One | 2300 N. Field Street, SuiteĀ 1900 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75201 | |
City Area Code | 214 | |
Local Phone Number | 740-5600 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | PRIM | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 48,096,318 | |
Entity Central Index Key | 0001361538 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 228,546 | $ 120,286 |
Accounts receivable, net | 494,453 | 404,911 |
Contract assets | 361,099 | 344,806 |
Prepaid expenses and other current assets | 32,977 | 42,704 |
Total current assets | 1,117,075 | 912,707 |
Property and equipment, net | 366,721 | 375,888 |
Operating lease assets | 221,615 | 242,385 |
Deferred tax assets | 1,134 | 1,100 |
Intangible assets, net | 62,994 | 69,829 |
Goodwill | 215,103 | 215,103 |
Other long-term assets | 14,860 | 13,453 |
Total assets | 1,999,502 | 1,830,465 |
Current liabilities: | ||
Accounts payable | 251,979 | 235,972 |
Contract liabilities | 256,021 | 192,397 |
Accrued liabilities | 223,637 | 183,501 |
Dividends payable | 2,887 | 2,919 |
Current portion of long-term debt | 47,708 | 55,659 |
Total current liabilities | 782,232 | 670,448 |
Long-term debt, net of current portion | 281,360 | 295,642 |
Noncurrent operating lease liabilities, net of current portion | 151,777 | 171,225 |
Deferred tax liabilities | 17,820 | 17,819 |
Other long-term liabilities | 82,791 | 45,801 |
Total liabilities | 1,315,980 | 1,200,935 |
Commitments and contingencies (See Note 16) | ||
Stockholders' equity | ||
Common stock-$.0001 par value; 90,000,000 shares authorized; 48,096,318 and 48,665,138 issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 5 | 5 |
Additional paid-in capital | 88,363 | 97,130 |
Retained earnings | 595,769 | 531,291 |
Accumulated other comprehensive (loss) income | (651) | 76 |
Noncontrolling interest | 36 | 1,028 |
Total stockholders' equity | 683,522 | 629,530 |
Total liabilities and stockholders' equity | $ 1,999,502 | $ 1,830,465 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Stockholders' equity | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 48,096,318 | 48,665,138 |
Common stock, shares outstanding | 48,096,318 | 48,665,138 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
CONSOLIDATED STATEMENTS OF INCOME | ||||
Revenue | $ 942,700 | $ 865,064 | $ 2,594,159 | $ 2,316,551 |
Cost of revenue | 819,019 | 756,643 | 2,321,701 | 2,075,139 |
Gross profit | 123,681 | 108,421 | 272,458 | 241,412 |
Selling, general and administrative expenses | 57,097 | 49,827 | 152,907 | 141,477 |
Operating income | 66,584 | 58,594 | 119,551 | 99,935 |
Other income (expense): | ||||
Foreign exchange loss, net | (77) | (136) | (141) | (724) |
Other income (expense), net | 98 | (2,928) | 816 | (3,121) |
Interest income | 13 | 42 | 358 | 610 |
Interest expense | (4,728) | (5,186) | (17,530) | (17,494) |
Income before provision for income taxes | 61,890 | 50,386 | 103,054 | 79,206 |
Provision for income taxes | (17,947) | (14,560) | (29,883) | (22,620) |
Net income | 43,943 | 35,826 | 73,171 | 56,586 |
Less net income attributable to noncontrolling interests | (2) | (178) | (8) | (1,204) |
Net (loss) income attributable to Primoris | $ 43,941 | $ 35,648 | $ 73,163 | $ 55,382 |
Dividends per common share (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.18 | $ 0.18 |
Earnings per share: | ||||
Basic (in dollars per share) | 0.91 | 0.70 | 1.51 | 1.09 |
Diluted (in dollars per share) | $ 0.90 | $ 0.70 | $ 1.50 | $ 1.08 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 48,253 | 50,976 | 48,370 | 50,887 |
Diluted (in shares) | 48,574 | 51,215 | 48,712 | 51,210 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | ||||
Net income | $ 43,943 | $ 35,826 | $ 73,171 | $ 56,586 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments | 458 | (166) | (727) | 570 |
Comprehensive income | 44,401 | 35,660 | 72,444 | 57,156 |
Less net income attributable to noncontrolling interests | (2) | (178) | (8) | (1,204) |
Comprehensive income attributable to Primoris | $ 44,399 | $ 35,482 | $ 72,436 | $ 55,952 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non Controlling Interest | Total |
Balance at Dec. 31, 2018 | $ 5 | $ 144,048 | $ 461,075 | $ (908) | $ 2,763 | $ 606,983 |
Balance (in shares) at Dec. 31, 2018 | 50,715,518 | |||||
Increase (Decrease) in Stockholders' Equity Roll Forward | ||||||
Net income | 55,382 | 1,204 | 56,586 | |||
Foreign currency translation adjustments, net of tax | 570 | 570 | ||||
Issuance of shares to employees and/or directors | 2,998 | 2,998 | ||||
Issuance of shares to employees and/or directors (in shares) | 144,261 | |||||
Conversion of Restricted Stock Units, net of shares withheld for taxes | (1,519) | $ (1,519) | ||||
Conversion of Restricted Stock Units, net of shares withheld for taxes (in shares) | 122,319 | 122,319 | ||||
Amortization of Restricted Stock Units | 1,218 | $ 1,218 | ||||
Dividend equivalent Units accrued - Restricted Stock Units | 20 | (20) | ||||
Distribution of noncontrolling entities | (3,505) | (3,505) | ||||
Dividends declared | (9,168) | (9,168) | ||||
Balance at Sep. 30, 2019 | $ 5 | 146,765 | 507,269 | (338) | 462 | 654,163 |
Balance (in shares) at Sep. 30, 2019 | 50,982,098 | |||||
Balance at Jun. 30, 2019 | $ 5 | 146,064 | 474,684 | (172) | 284 | 620,865 |
Balance (in shares) at Jun. 30, 2019 | 50,965,221 | |||||
Increase (Decrease) in Stockholders' Equity Roll Forward | ||||||
Net income | 35,648 | 178 | 35,826 | |||
Foreign currency translation adjustments, net of tax | (166) | (166) | ||||
Issuance of shares to employees and/or directors | 337 | 337 | ||||
Issuance of shares to employees and/or directors (in shares) | 16,877 | |||||
Amortization of Restricted Stock Units | 360 | 360 | ||||
Dividend equivalent Units accrued - Restricted Stock Units | 4 | (4) | ||||
Dividends declared | (3,059) | (3,059) | ||||
Balance at Sep. 30, 2019 | $ 5 | 146,765 | 507,269 | (338) | 462 | 654,163 |
Balance (in shares) at Sep. 30, 2019 | 50,982,098 | |||||
Balance at Dec. 31, 2019 | $ 5 | 97,130 | 531,291 | 76 | 1,028 | 629,530 |
Balance (in shares) at Dec. 31, 2019 | 48,665,138 | |||||
Increase (Decrease) in Stockholders' Equity Roll Forward | ||||||
Net income | 73,163 | 8 | 73,171 | |||
Foreign currency translation adjustments, net of tax | (727) | (727) | ||||
Issuance of shares to employees and/or directors | 1,494 | 1,494 | ||||
Issuance of shares to employees and/or directors (in shares) | 70,805 | |||||
Conversion of Restricted Stock Units, net of shares withheld for taxes | (548) | (548) | ||||
Conversion of Restricted Stock Units, net of shares withheld for taxes (in shares) | 54,635 | |||||
Amortization of Restricted Stock Units | 1,730 | 1,730 | ||||
Dividend equivalent Units accrued - Restricted Stock Units | 10 | (10) | ||||
Repurchase of stock | (11,453) | (11,453) | ||||
Repurchase of stock (in shares) | (694,260) | |||||
Distribution of noncontrolling entities | (1,000) | (1,000) | ||||
Dividends declared | (8,675) | (8,675) | ||||
Balance at Sep. 30, 2020 | $ 5 | 88,363 | 595,769 | (651) | 36 | 683,522 |
Balance (in shares) at Sep. 30, 2020 | 48,096,318 | |||||
Balance at Jun. 30, 2020 | $ 5 | 91,257 | 554,717 | (1,109) | 34 | 644,904 |
Balance (in shares) at Jun. 30, 2020 | 48,220,811 | |||||
Increase (Decrease) in Stockholders' Equity Roll Forward | ||||||
Net income | 43,941 | 2 | 43,943 | |||
Foreign currency translation adjustments, net of tax | 458 | 458 | ||||
Issuance of shares to employees and/or directors | 157 | 157 | ||||
Issuance of shares to employees and/or directors (in shares) | 9,086 | |||||
Conversion of Restricted Stock Units, net of shares withheld for taxes | (471) | $ (471) | ||||
Conversion of Restricted Stock Units, net of shares withheld for taxes (in shares) | 41,119 | 54,635 | ||||
Amortization of Restricted Stock Units | 528 | $ 528 | ||||
Dividend equivalent Units accrued - Restricted Stock Units | 2 | (2) | ||||
Repurchase of stock | (3,110) | (3,110) | ||||
Repurchase of stock (in shares) | (174,698) | |||||
Dividends declared | (2,887) | (2,887) | ||||
Balance at Sep. 30, 2020 | $ 5 | $ 88,363 | $ 595,769 | $ (651) | $ 36 | $ 683,522 |
Balance (in shares) at Sep. 30, 2020 | 48,096,318 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | Jul. 31, 2020 | May 01, 2020 | Feb. 21, 2020 | Oct. 31, 2019 | Aug. 02, 2019 | May 03, 2019 | Feb. 26, 2019 | Nov. 02, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | ||||||||||||
Cash dividend declared (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.18 | $ 0.18 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 73,171 | $ 56,586 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 58,728 | 64,553 |
Stock-based compensation expense | 1,730 | 1,218 |
Gain on sale of property and equipment | (6,198) | (7,017) |
Unrealized loss on interest rate swap | 3,856 | 4,854 |
Other non-cash items | 4,125 | 240 |
Changes in assets and liabilities: | ||
Accounts receivable | (91,741) | (177,942) |
Contract assets | (16,783) | 32,274 |
Other current assets | 9,707 | 1,219 |
Other long-term assets | 1,073 | 167 |
Accounts payable | 16,533 | (29,757) |
Contract liabilities | 63,682 | (3,915) |
Operating lease assets and liabilities, net | 3,250 | (1,489) |
Accrued liabilities | 36,394 | 17,662 |
Other long-term liabilities | 33,952 | 1,231 |
Net cash provided by (used in) operating activities | 191,479 | (40,116) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (54,404) | (78,255) |
Proceeds from sale of property and equipment | 17,710 | 24,393 |
Net cash used in investing activities | (36,694) | (53,862) |
Cash flows from financing activities: | ||
Borrowings under revolving line of credit | 212,880 | |
Payments on revolving line of credit | (212,880) | |
Proceeds from issuance of long-term debt | 33,873 | 55,008 |
Repayment of long-term debt | (56,321) | (55,824) |
Proceeds from issuance of common stock purchased under a long-term incentive plan | 578 | 1,804 |
Payment of taxes on conversion of Restricted Stock Units | (548) | (1,519) |
Cash distribution to noncontrolling interest holders | (1,000) | (3,505) |
Repurchase of common stock | (10,959) | |
Dividends paid | (8,707) | (9,152) |
Other | (2,888) | (328) |
Net cash used in financing activities | (45,972) | (13,516) |
Effect of exchange rate changes on cash and cash equivalents | (553) | 268 |
Net change in cash and cash equivalents | 108,260 | (107,226) |
Cash and cash equivalents at beginning of the year | 120,286 | 151,063 |
Cash and cash equivalents at end of the year | 228,546 | 43,837 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid for interest | 13,433 | 12,400 |
Cash paid for income taxes, net of refunds received | 5,288 | (1,421) |
Leased assets obtained in exchange for new operating leases | 51,664 | 118,755 |
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Dividends declared and not yet paid | $ 2,887 | $ 3,059 |
Nature of Business
Nature of Business | 9 Months Ended |
Sep. 30, 2020 | |
Nature of Business | |
Nature of Business | Note 1āNature of Business ā Organization and operations ā ā We have longstanding customer relationships with major utility, refining, petrochemical, power, midstream, and engineering companies, and state departments of transportation. We provide our services to a diversified base of customers, under a range of contracting options. A substantial portion of our services are provided under Master Service Agreements (āMSAā), which are generally multi-year agreements. The remainder of our services are generated from contracts for specific construction or installation projects. ā We are incorporated in the State of Delaware, and our corporate headquarters are located at 2300 N. Field Street, Suite 1900, Dallas, Texas 75201. Unless specifically noted otherwise, as used throughout these consolidated financial statements, āPrimorisā, āthe Companyā, āweā, āourā, āusā or āitsā refers to the business, operations and financial results of the Company and its wholly-owned subsidiaries. ā Reportable Segments reportable segments: the Power, Industrial and Engineering (āPowerā) segment, the Pipeline and Underground (āPipelineā) segment, the Utilities and Distribution (āUtilitiesā) segment, the Transmission and Distribution (āTransmissionā) segment, and the Civil segment. See Note 17 ā ā Reportable Segments ā The classification of revenue and gross profit for segment reporting purposes can at times require judgment on the part of management. Our segments may perform services across industries or perform joint services for customers in multiple industries. To determine reportable segment gross profit, certain allocations, including allocations of shared and indirect costs, such as facility costs, equipment costs and indirect operating expenses, were made. ā Joint Ventures % interest in the Carlsbad Power Constructors joint venture (āCarlsbadā), which engineered and constructed a gas-fired power generation facility located in Southern California, and its operations are included as part of the Power segment. As a result of determining that we are the primary beneficiary of the variable interest entity (āVIEā), the results of the Carlsbad joint venture are consolidated in our financial statements. The project was substantially complete as of December 31, 2018, and the warranty period expires in December 2020. ā Financial information for the joint ventures is presented in Note 10 ā āNoncontrolling Interests ā |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Basis of Presentation | |
Basis of Presentation | Note 2āBasis of Presentation ā Interim condensed consolidated financial statements ā ā This Form 10-Q should be read in conjunction with our most recent Annual Report on Form 10-K. The interim financial information is unaudited. In the opinion of management, the interim information includes all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the interim financial information. ā Customer concentration For the three and nine months ended September 30, 2020, approximately 49.2% and 49.3%, respectively, of total revenue was generated from our top ten customers. For the three months ended September 30, 2020 no one customer accounted for more than 10% of total revenue and for the nine months ended September 30, 2020, one pipeline customer represented approximately 10.5% of total revenue. ā For each of the three and nine months ended September 30, 2019, approximately 48.0% of total revenue was generated from our top ten customers, and no one customer accounted for more than 10% of total revenue, respectively. ā |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | Note 3āRecent Accounting Pronouncements ā Recently adopted accounting pronouncements ā In June 2016, the FASB issued ASU 2016-13, āFinancial InstrumentsāCredit Losses (Topic 326): Measurement of Credit Losses on Financial Instrumentsā, which introduced an expected credit loss methodology for the measurement and recognition of credit losses on most financial assets, including trade accounts receivables. The expected credit loss methodology under ASU 2016-13 is based on historical experience, current conditions and reasonable and supportable forecasts, and replaces the probable/incurred loss model for measuring and recognizing expected losses under current GAAP. The ASU also requires disclosure of information regarding how a company developed its allowance, including changes in the factors that influenced managementās estimate of expected credit losses and the reasons for those changes. The ASU and its related clarifying updates are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. We adopted the new standard on January 1, 2020, and it did not have a material impact on our estimate of the allowance for uncollectable accounts. ā In August 2018, the FASB issued ASU 2018-13, ā Fair Value Measurement (Topic 820): Disclosure FrameworkāChanges to the Disclosure Requirements for Fair Value Measurement ā Recently issued accounting pronouncements not yet adopted ā In December 2019, the FASB issued ASU No. 2019-12, āIncome Taxes (Topic 740): Simplifying the Accounting for Income Taxesā, which removes certain exceptions to the general principles in Topic 740 and clarifies and amends existing guidance to improve consistent application. This ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Depending on the amendment, adoption may be applied on the retrospective, modified retrospective or prospective basis. We are currently evaluating the requirements of this guidance and have not yet determined the full impact of its adoption to our consolidated financial position, results of operations and cash flows. ā |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Measurements | |
Fair Value Measurements | Note 4āFair Value Measurements ā ASC Topic 820, ā Fair Value Measurements and Disclosures ā, defines fair value, establishes a framework for measuring fair value in GAAP and requires certain disclosures about fair value measurements. ASC Topic 820 addresses fair value GAAP for financial assets and financial liabilities that are re-measured and reported at fair value at each reporting period and for non-financial assets and liabilities that are re-measured and reported at fair value on a non-recurring basis. ā In general, fair values determined by Level 1 inputs use quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs use data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are āunobservable data pointsā for the asset or liability and include situations where there is little, if any, market activity for the asset or liability. ā The following table presents, for each of the fair value hierarchy levels identified under ASC Topic 820, our financial assets and liabilities that are required to be measured at fair value at September 30, 2020 and December 31, 2019 (in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fair Value Measurements at Reporting Date ā ā ā Significant ā ā ā ā Quoted Prices ā Other ā Significant ā ā in Active Markets ā Observable ā Unobservable ā ā for Identical Assets ā Inputs ā Inputs ā (Level 1) (Level 2) (Level 3) Assets as of September 30, 2020: ā ā ā ā ā ā ā ā ā ā Cash and cash equivalents ā $ 228,546 $ ā $ ā ā Contingent consideration ā ā ā ā ā ā ā ā 411 ā Liabilities as of September 30, 2020: ā ā ā ā ā ā ā ā ā ā Interest rate swap ā $ ā ā $ 10,299 ā $ ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Assets as of December 31, 2019: ā ā ā ā ā ā ā ā ā ā Cash and cash equivalents ā $ 120,286 $ ā $ ā ā Contingent consideration ā ā ā ā ā ā ā ā 938 ā Liabilities as of December 31, 2019: ā ā ā ā ā ā ā ā ā ā Interest rate swap ā $ ā ā $ 6,443 ā $ ā ā ā Other financial instruments not listed in the table consist of accounts receivable, accounts payable and certain accrued liabilities. These financial instruments generally approximate fair value based on their short-term nature. The carrying value of our long-term debt approximates fair value based on comparison with current prevailing market rates for loans of similar risks and maturities. ā In the second quarter of 2019, we sold certain assets that included an earnout of $2.0 million, contingent upon the buyer meeting a certain performance target. The estimated fair value of the contingent consideration on the sale date was approximately $0.9 million which is included in āOther long-term assetsā on the Condensed Consolidated Balance Sheets. We measured the fair value of the contingent consideration using the income approach, which discounts the future cash payments expected upon meeting the performance target to present value. The fair value of the contingent consideration was impacted by two unobservable inputs, managementās estimate of the probability of meeting the performance target and the estimated discount rate (a rate that approximates our cost of capital). Significant changes in either of those inputs in isolation would result in a different fair value measurement. We reduced the fair value of the contingent consideration in the third quarter of 2020 due to a reduced probability of meeting the performance target contemplated in the sales agreement, and decreased the asset by $0.5 million. ā The interest rate swap is measured at fair value using the income approach, which discounts the future net cash settlements expected under the derivative contracts to a present value. These valuations primarily utilize indirectly observable inputs, including contractual terms, interest rates and yield curves observable at commonly quoted intervals. See Note 9 ā ā Derivative Instruments |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2020 | |
Revenue | |
Revenue | Note 5āRevenue ā We generate revenue under a range of contracting types, including fixed-price, unit-price, time and material, and cost reimbursable plus fee contracts, each of which has a different risk profile. A substantial portion of our revenue is derived from contracts where scope is adequately defined, and therefore we can reasonably estimate total contract value. For these contracts, revenue is recognized over time as work is completed because of the continuous transfer of control to the customer (typically using an input measure such as costs incurred to date relative to total estimated costs at completion to measure progress). For certain contracts, where scope is not adequately defined and we canāt reasonably estimate total contract value, revenue is recognized primarily on an input basis, based on contract costs incurred as defined within the respective contracts. Costs to obtain contracts are generally not significant and are expensed in the period incurred. ā We evaluate whether two or more contracts should be combined and accounted for as one single performance obligation and whether a single contract should be accounted for as more than one performance obligation. ASC 606 defines a performance obligation as a contractual promise to transfer a distinct good or service to a customer. A contractās transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Our evaluation requires significant judgment and the decision to combine a group of contracts or separate a contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. The majority of our contracts have a single performance obligation, as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contract and, therefore, is not distinct. However, occasionally we have contracts with multiple performance obligations. For contracts with multiple performance obligations, we allocate the contractās transaction price to each performance obligation using the observable standalone selling price, if available, or alternatively our best estimate of the standalone selling price of each distinct performance obligation in the contract. The primary method used to estimate standalone selling price is the expected cost plus a margin approach for each performance obligation. ā As of September 30, 2020, we had $1.89 billion of remaining performance obligations. We expect to recognize approximately 76% of our remaining performance obligations as revenue during the next four ā Accounting for long-term contracts involves the use of various techniques to estimate total transaction price and costs. For long-term contracts, transaction price, estimated cost at completion and total costs incurred to date are used to calculate revenue earned. Unforeseen events and circumstances can alter the estimate of the costs and potential profit associated with a particular contract. Total estimated costs, and thus contract revenue and income, can be impacted by changes in productivity, scheduling, the unit cost of labor, subcontracts, materials and equipment. Additionally, external factors such as weather, client needs, client delays in providing permits and approvals, labor availability, governmental regulation, politics and any prevailing impacts from the pandemic caused by the coronavirus may affect the progress of a projectās completion, and thus the timing of revenue recognition. To the extent that original cost estimates are modified, estimated costs to complete increase, delivery schedules are delayed, or progress under a contract is otherwise impeded, cash flow, revenue recognition and profitability from a particular contract may be adversely affected. ā The nature of our contracts gives rise to several types of variable consideration, including contract modifications (change orders and claims), liquidated damages, volume discounts, performance bonuses, incentive fees, and other terms that can either increase or decrease the transaction price. We estimate variable consideration as the most likely amount to which we expect to be entitled. We include estimated amounts in the transaction price to the extent we believe we have an enforceable right, and it is probable that a significant reversal of cumulative revenue recognized will not occur. Our estimates of variable consideration and the determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us at this time. ā Contract modifications result from changes in contract specifications or requirements. We consider unapproved change orders to be contract modifications for which customers have not agreed to both scope and price. We consider claims to be contract modifications for which we seek, or will seek, to collect from customers, or others, for customer-caused changes in contract specifications or design, or other customer-related causes of unanticipated additional contract costs on which there is no agreement with customers. Claims can also be caused by non-customer-caused changes, such as rain or other weather delays. Costs associated with contract modifications are included in the estimated costs to complete the contracts and are treated as project costs when incurred. In most instances, contract modifications are for goods or services that are not distinct, and, therefore, are accounted for as part of the existing contract. The effect of a contract modification on the transaction price, and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue on a cumulative catch-up basis. In some cases, settlement of contract modifications may not occur until after completion of work under the contract. ā As a significant change in one or more of these estimates could affect the profitability of our contracts, we review and update our contract-related estimates regularly. We recognize adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the cumulative impact of the profit adjustment is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance are recognized using the adjusted estimate. In the three and nine months ended September 30, 2020, revenue recognized from performance obligations satisfied in previous periods was $9.3 million and $7.7 million, respectively. If at any time the estimate of contract profitability indicates an anticipated loss on a contract, the projected loss is recognized in full, including the reversal of any previously recognized profit, in the period it is identified and recognized as an āaccrued loss provisionā which is included in āContract liabilitiesā on the Condensed Consolidated Balance Sheets. For contract revenue recognized over time, the accrued loss provision is adjusted so that the gross profit for the contract remains zero in future periods. ā At September 30, 2020, we had approximately $84.3 million of unapproved contract modifications included in the aggregate transaction prices. These contract modifications were in the process of being negotiated in the normal course of business. Approximately $70.1 million of the contract modifications had been recognized as revenue on a cumulative catch-up basis through September 30, 2020. ā In all forms of contracts, we estimate the collectability of contract amounts at the same time that we estimate project costs. If we anticipate that there may be issues associated with the collectability of the full amount calculated as the transaction price, we may reduce the amount recognized as revenue to reflect the uncertainty associated with realization of the eventual cash collection. For example, when a cost reimbursable project exceeds the clientās expected budget amount, the client frequently requests an adjustment to the final amount. Similarly, some utility clients reserve the right to audit costs for significant periods after performance of the work. ā The timing of when we bill our customers is generally dependent upon agreed-upon contractual terms, milestone billings based on the completion of certain phases of the work, or when services are provided. Sometimes, billing occurs subsequent to revenue recognition, resulting in unbilled revenue, which is a contract asset. Also, we sometimes receive advances or deposits from our customers before revenue is recognized, resulting in deferred revenue, which is a contract liability. ā The caption āContract assetsā in the Condensed Consolidated Balance Sheets represents the following: ā ā unbilled revenue, which arise when revenue has been recorded but the amount will not be billed until a later date; ā ā retainage amounts for the portion of the contract price earned by us for work performed, but held for payment by the customer as a form of security until we reach certain construction milestones; and ā ā contract materials for certain job specific materials not yet installed, which are valued using the specific identification method relating the cost incurred to a specific project. ā Contract assets consist of the following (in thousands): ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā ā 2020 2019 ā Unbilled revenue ā $ 243,399 ā $ 251,429 ā Retention receivable ā ā 100,708 ā ā 81,393 ā Contract materials (not yet installed) ā 16,992 ā 11,984 ā ā ā $ 361,099 ā $ 344,806 ā ā Contract assets increased by $16.3 million compared to December 31, 2019 due primarily to higher retention receivable. ā The caption āContract liabilitiesā in the Condensed Consolidated Balance Sheets represents deferred revenue, which arises when billings are in excess of contract revenue recognized to date, and the accrued loss provision. ā Contract liabilities consist of the following (in thousands): ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā ā 2020 2019 ā Deferred revenue ā $ 244,518 ā $ 186,081 ā Accrued loss provision ā 11,503 ā 6,316 ā ā ā $ 256,021 ā $ 192,397 ā ā Contract liabilities increased by $63.6 million compared to December 31, 2019 primarily due to higher deferred revenue. ā Revenue recognized for the nine months ended September 30, 2020, that was included in the contract liability balance at December 31, 2019, was approximately $128.5 million. ā The following tables present our revenue disaggregated into various categories. ā Master Service Agreements (āMSAā) and Non-MSA revenue was as follows (in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the three months ended September 30, 2020 Segment ā MSA ā Non-MSA ā Total ā Power ā $ 35,297 ā $ 177,260 ā $ 212,557 ā Pipeline ā ā 29,403 ā ā 184,977 ā ā 214,380 ā Utilities ā 230,099 ā ā 68,885 ā ā 298,984 ā Transmission ā ā 89,312 ā ā 24,909 ā ā 114,221 ā Civil ā 624 ā ā 101,934 ā ā 102,558 ā Total ā $ 384,735 $ 557,965 $ 942,700 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the nine months ended September 30, 2020 Segment MSA Non-MSA Total ā Power ā $ 98,897 ā $ 467,329 ā $ 566,226 ā Pipeline ā ā 108,952 ā ā 586,510 ā ā 695,462 ā Utilities ā 516,711 ā ā 159,618 ā ā 676,329 ā Transmission ā ā 263,742 ā ā 63,211 ā ā 326,953 ā Civil ā 2,152 ā ā 327,037 ā ā 329,189 ā Total ā $ 990,454 $ 1,603,705 $ 2,594,159 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the three months ended September 30, 2019 Segment ā MSA ā Non-MSA ā Total ā Power ā $ 43,680 $ 156,977 $ 200,657 ā Pipeline ā ā 29,110 ā ā 104,480 ā ā 133,590 ā Utilities ā 189,606 91,955 281,561 ā Transmission ā ā 103,421 ā ā 25,363 ā ā 128,784 ā Civil ā 1,074 119,398 120,472 ā Total ā $ 366,891 $ 498,173 $ 865,064 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the nine months ended September 30, 2019 Segment MSA Non-MSA Total ā Power ā $ 136,564 $ 381,646 $ 518,210 ā Pipeline ā ā 71,112 ā ā 334,535 ā ā 405,647 ā Utilities ā 481,439 168,640 650,079 ā Transmission ā ā 316,019 ā ā 66,562 ā ā 382,581 ā Civil ā 2,949 357,085 360,034 ā Total ā $ 1,008,083 $ 1,308,468 $ 2,316,551 ā ā ā ā Revenue by contract type was as follows (in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the three months ended September 30, 2020 Segment ā Fixed-price ā Unit-price ā Cost reimbursable (1) ā Total ā Power ā $ 66,939 ā $ 1,993 ā $ 143,625 ā $ 212,557 ā Pipeline ā ā 152,301 ā ā 45,627 ā ā 16,452 ā ā 214,380 ā Utilities ā 23,117 ā ā 185,791 ā ā 90,076 ā ā 298,984 ā Transmission ā ā 7,480 ā ā 68,952 ā ā 37,789 ā ā 114,221 ā Civil ā 12,557 ā ā 79,761 ā ā 10,240 ā ā 102,558 ā Total ā $ 262,394 $ 382,124 $ 298,182 $ 942,700 ā ā (1) Includes time and material and cost reimbursable plus fee contracts. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the nine months ended September 30, 2020 Segment Fixed-price Unit-price Cost reimbursable (1) Total ā Power ā $ 331,125 ā $ 2,174 ā $ 232,927 ā $ 566,226 ā Pipeline ā ā 191,652 ā ā 277,788 ā ā 226,022 ā ā 695,462 ā Utilities ā 77,889 ā ā 421,436 ā ā 177,004 ā ā 676,329 ā Transmission ā ā 33,959 ā ā 254,761 ā ā 38,233 ā ā 326,953 ā Civil ā 49,782 ā ā 249,968 ā ā 29,439 ā ā 329,189 ā Total ā $ 684,407 $ 1,206,127 $ 703,625 $ 2,594,159 ā ā (1) Includes time and material and cost reimbursable plus fee contracts. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the three months ended September 30, 2019 Segment ā Fixed-price ā Unit-price ā Cost reimbursable (1) ā Total ā Power ā $ 136,040 $ 2,954 $ 61,663 $ 200,657 ā Pipeline ā ā 13,860 ā ā 21,949 ā ā 97,781 ā ā 133,590 ā Utilities ā 31,462 165,183 84,916 281,561 ā Transmission ā ā 13,034 ā ā 110,869 ā ā 4,881 ā ā 128,784 ā Civil ā 19,957 79,586 20,929 120,472 ā Total ā $ 214,353 $ 380,541 $ 270,170 $ 865,064 ā ā (1) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the nine months ended September 30, 2019 Segment Fixed-price Unit-price Cost reimbursable (1) Total ā Power ā $ 316,288 $ 13,609 $ 188,313 $ 518,210 ā Pipeline ā ā 45,196 ā ā 32,453 ā ā 327,998 ā ā 405,647 ā Utilities ā 84,349 352,679 213,051 650,079 ā Transmission ā ā 35,748 ā ā 332,389 ā ā 14,444 ā ā 382,581 ā Civil ā 61,643 241,985 56,406 360,034 ā Total ā $ 543,224 $ 973,115 $ 800,212 $ 2,316,551 ā ā (1) ā Each of these contract types has a different risk profile. Typically, we assume more risk with fixed-price contracts. Unforeseen events and circumstances can alter the estimate of the costs and potential profit associated with a particular fixed-price contract. However, these types of contracts offer additional profits when we complete the work for less cost than originally estimated. Unit-price and cost reimbursable contracts generally subject us to lower risk. Accordingly, the associated fees are usually lower than fees earned on fixed-price contracts. Under these contracts, our profit may vary if actual costs vary significantly from the negotiated rates. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | Note 6āGoodwill and Intangible Assets ā The carrying amount of goodwill by reportable segment is as follows (in thousands): ā ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, Reporting Segment 2020 2019 Power $ 26,194 ā $ 26,194 ā Pipeline 52,415 ā 52,415 ā Utilities 37,312 ā 37,312 ā Transmission ā ā 59,032 ā ā 59,032 ā Civil 40,150 ā 40,150 ā Total Goodwill ā $ 215,103 ā $ 215,103 ā ā The table below summarizes the intangible asset categories and amounts, which are amortized on a straight-line basis (in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā September 30, 2020 ā December 31, 2019 ā ā Gross Carrying Accumulated Intangible assets, net Gross Carrying Accumulated Intangible assets, net Tradename ā $ 16,040 ā $ (14,565) ā $ 1,475 ā $ 16,040 ā $ (13,216) ā $ 2,824 ā Customer relationships ā 91,000 ā ā (29,674) ā ā 61,326 ā 91,000 ā (24,353) ā 66,647 ā Non-compete agreements ā 1,900 ā ā (1,707) ā ā 193 ā 1,900 ā (1,580) ā 320 ā Other ā ā 275 ā ā (275) ā ā ā ā ā 275 ā ā (237) ā ā 38 ā Total ā $ 109,215 ā $ (46,221) ā $ 62,994 ā $ 109,215 ā $ (39,386) ā $ 69,829 ā ā Amortization expense of intangible assets was $2.2 million and $2.9 million for the three months ended September 30, 2020 and 2019, respectively, and $6.8 million and $8.6 million for the nine months ended September 30, 2020 and 2019, respectively. Estimated future amortization expense for intangible assets is as follows (in thousands): ā ā ā ā ā ā ā ā Estimated ā ā Intangible ā ā Amortization For the Years Ending December 31, Expense 2020 (remaining three months) ā $ 1,982 ā 2021 ā ā 7,577 ā 2022 ā 6,416 ā 2023 ā 5,581 ā 2024 ā 4,862 ā Thereafter ā 36,576 ā ā ā $ 62,994 ā ā |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Accounts Payable and Accrued Liabilities | |
Accounts Payable and Accrued Liabilities | Note 7āAccounts Payable and Accrued Liabilities ā At September 30, 2020 and December 31, 2019, accounts payable included retention amounts of approximately $9.1 million and $11.3 million, respectively. These amounts owed to subcontractors have been retained pending contract completion and customer acceptance of jobs. ā The following is a summary of accrued liabilities (in thousands): ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā 2020 2019 Payroll and related employee benefits ā $ 93,613 ā $ 64,705 Current operating lease liability ā ā 75,779 ā ā 74,036 Casualty insurance reserves ā 9,525 ā 9,918 Corporate income taxes and other taxes ā 25,156 ā 9,027 Other ā 19,564 ā 25,815 ā ā $ 223,637 ā $ 183,501 ā |
Credit Arrangements
Credit Arrangements | 9 Months Ended |
Sep. 30, 2020 | |
Credit Arrangements | |
Credit Arrangements | Note 8āCredit Arrangements ā Long-term debt and credit facilities consists of the following (in thousands): ā ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā ā 2020 2019 Term loan ā $ 195,250 ā $ 203,500 ā Commercial equipment notes ā ā 95,254 ā ā 105,114 ā Mortgage notes ā 39,137 ā 43,474 ā Total debt ā ā 329,641 ā ā 352,088 ā Unamortized debt issuance costs ā ā (573) ā ā (787) ā Total debt, net ā $ 329,068 ā $ 351,301 ā Less: current portion ā (47,708) ā (55,659) ā Long-term debt, net of current portion ā $ 281,360 ā $ 295,642 ā ā The weighted average interest rate on total debt outstanding at September 30, 2020 and December 31, 2019 was 3.7% and 4.0%, respectively. ā Credit Agreement ā Our amended and restated credit agreement (āCredit Agreementā) consists of a $220.0 million term loan and a $200.0 million revolving credit facility (āRevolving Credit Facilityā), whereby the lenders agreed to make loans on a revolving basis from time to time and to issue letters of credit for up to the $200.0 million committed amount. The Credit Agreement also includes the ability to increase the borrowing capacity thereunder by $75.0 million, subject to obtaining additional or increased lender commitments. The maturity date of the Credit Agreement is July 9, 2023. At September 30, 2020, there were no outstanding borrowings under the Revolving Credit Facility, commercial letters of credit outstanding were $50.0 million, and available borrowing capacity was $150.0 million. ā The Credit Agreement contains various restrictive and financial covenants including, among others, a senior debt/EBITDA ratio and debt service coverage requirements. In addition, the Credit Agreement includes restrictions on investments, change of control provisions and provisions in the event we dispose of more than 20% of our total assets. We were in compliance with the covenants for the Credit Agreement at September 30, 2020. ā Canadian Credit Facilities ā We have a demand credit facility for $4.0 million in Canadian dollars with a Canadian bank for purposes of issuing commercial letters of credit in Canada. At September 30, 2020, commercial letters of credit outstanding were $0.6 million in Canadian dollars, and the available borrowing capacity was $3.4 million in Canadian dollars. The credit facility contains a working capital restrictive covenant for OnQuest Canada, ULC, our wholly owned subsidiary. At September 30, 2020, OnQuest Canada, ULC was in compliance with the covenant. ā We have a credit facility for $10.0 million in Canadian dollars with CIBC Bank for working capital purposes in the normal course of business (āWorking Capital Credit Facilityā). At September 30, 2020, there were no outstanding borrowings under the Working Capital Credit Facility, and available borrowing capacity was $10.0 million in Canadian dollars. The Working Capital Credit Facility contains a cross default restrictive covenant where a default under our Credit Agreement will represent a default in the Working Capital Credit Facility. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments | |
Derivative Instruments | Note 9 ā Derivative Instruments ā We are exposed to certain market risks related to changes in interest rates. To monitor and manage these market risks, we have established risk management policies and procedures. We do not enter into derivative instruments for any purpose other than hedging interest rate risk. None of our derivative instruments are used for trading purposes. ā Interest Rate Risk. of $165.0 million, or 75% of the debt outstanding under our Term Loan, which was not designated as a hedge for accounting purposes. The notional amount of the swap will be adjusted down each quarter by 75% of the required principal payments made on the Term Loan. The swap effectively changes the variable-rate cash flow exposure on the debt obligations to fixed rates. The fair value of outstanding interest rate swap derivatives can vary significantly from period to period depending on the total notional amount of swap derivatives outstanding and fluctuations in market interest rates compared to the interest rates fixed by the swaps. As of September 30, 2020, and December 31, 2019, our outstanding interest rate swap agreement contained a notional amount of $146.4 million and $152.6 million, respectively, with a maturity date of July 10, 2023. ā Credit Risk. ā The following table summarizes the fair value of our derivative contracts included in the Condensed Consolidated Balance Sheets (in thousands): ā ā ā ā ā ā ā ā ā ā ā September 30, December 31, ā ā Balance Sheet Location ā 2020 ā 2019 Interest rate swap ā Other long-term liabilities ā $ 10,299 ā $ 6,443 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended ā Nine Months Ended ā ā ā Location of (Gain) Loss Recognized ā September 30, ā September 30, ā ā on Derivatives 2020 2019 ā 2020 2019 Interest rate swap Interest expense ā $ (11) ā $ 920 ā $ 6,262 ā $ 5,428 ā ā |
Noncontrolling Interests
Noncontrolling Interests | 9 Months Ended |
Sep. 30, 2020 | |
Noncontrolling Interests | |
Noncontrolling Interests | Note 10 ā Noncontrolling Interests ā We own a 50% interest in the Carlsbad joint venture which operates in the Power segment. The joint venture has been determined to be a VIE and we were determined to be the primary beneficiary as a result of our significant influence over the joint venture operations. ā The joint venture is a partnership, and consequently, only the tax effect of our share of the income was recognized by us. The net assets of the joint venture are restricted for use by the specific project and are not available for our general operations. ā The Carlsbad joint ventureās operating activities began in 2015 and are included in our Condensed Consolidated Statements of Income as follows (in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended September 30, ā Nine Months Ended September 30, ā ā ā 2020 2019 2020 2019 Revenue ā $ ā ā $ 541 ā $ ā ā $ 4,792 ā Net income attributable to noncontrolling interests ā ā 2 ā ā 178 ā ā 8 ā ā 1,204 ā ā The Carlsbad joint venture made distributions of $1.0 million to the noncontrolling interest and $1.0 million to us during the nine months ended September 30, 2020. The Carlsbad joint venture made distributions of $3.5 million to the noncontrolling interest and $3.5 million to us during the nine months ended September 30, 2019. In addition, we did not make any capital contributions to the Carlsbad joint venture during the nine months ended September 30, 2020 and 2019. The project was substantially complete as of December 31, 2018 and the warranty period expires in December 2020. ā The following table summarizes the total balance sheet amounts for the Carlsbad joint venture, which is included in our Condensed Consolidated Balance Sheets, and the total consolidated balance sheet amounts (in thousands): ā ā ā ā ā ā ā ā ā ā ā Joint Venture ā Consolidated ā At September 30, 2020 Amounts Amounts Cash ā $ 451 ā $ 228,546 ā Due to Primoris ā ā 16 ā ā ā ā Contract liabilities ā ā 356 ā ā 256,021 ā ā ā ā ā ā ā ā ā At December 31, 2019 ā ā ā ā ā ā ā Cash ā $ 2,124 ā $ 120,286 ā Accounts payable ā ā 38 ā ā 235,972 ā Contract liabilities ā ā 425 ā ā 192,397 ā ā ā |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 11āStock-Based Compensation ā In May 2013, the shareholders approved and we adopted the Primoris Services Corporation 2013 Long-term Incentive Equity Plan (āEquity Planā). Our Board of Directors has granted 583,484 Restricted Stock Units (āUnitsā), net of forfeitures, to employees under the Equity Plan. The grants were documented in RSU Award Agreements, which provide for a vesting schedule and require continuing employment of the employee. The Units are subject to earlier acceleration, termination, cancellation or forfeiture as provided in the underlying RSU Award Agreement. ā At September 30, 2020, a total of 290,729 Units were vested. The vesting schedule for the remaining Units are as follows: ā ā ā ā ā ā Number of Units For the Years Ending December 31, to Vest 2020 (remaining three months) ā 2,053 2021 ā 154,613 2022 ā 80,724 2023 ā 55,365 ā ā 292,755 ā Under guidance of ASC Topic 718 ā Compensation ā Stock Compensation ā The fair value of the Units was based on the closing market price of our common stock on the day prior to the date of the grant. Stock compensation expense for the Units is being amortized using the straight-line method over the service period. We recognized ā Vested Units accrue āDividend Equivalent Unitsā (as defined in the Equity Plan), which will be accrued as additional Units until the Units are converted to Common Stock. At September 30, 2020, a total of 2,652 Dividend Equivalent Units were accrued. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Taxes | |
Income Taxes | Note 12āIncome Taxes ā We are subject to tax liabilities imposed by multiple jurisdictions. We determine our best estimate of the annual effective tax rate at each interim period using expected annual pre-tax earnings, statutory tax rates and available tax planning opportunities. Certain significant or unusual items are separately recognized in the quarter in which they occur which can cause variability in the effective tax rate from quarter to quarter. We recognize interest and penalties related to uncertain tax positions, if any, as an income tax expense. ā We do not include the income tax expense or benefit related to the net earnings or loss attributable to noncontrolling interest in our income tax expense as the entities are considered pass-through entities and, as such, the income tax expense or benefit is attributable to its owners. The effective tax rate on income including noncontrolling interests for the nine months ended September 30, 2020 and 2019 was 29.0% and 28.6%, respectively. Excluding noncontrolling interest, the effective tax rate on income attributable to Primoris for each of the nine months ended September 30, 2020 and 2019 was 29.0%. For the first nine months of each of 2020 and 2019, our tax rate differs from the U.S. federal statutory rate of 21.0% primarily due to the impact of state income taxes and nondeductible components of per diem expenses. ā Our U.S. federal income tax returns are generally no longer subject to examination for tax years before 2016. The statutes of limitation of state and foreign jurisdictions generally vary between 3 to 5 years. Accordingly, our state and foreign income tax returns are generally no longer subject to examination for tax years before 2014. ā Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for temporary differences between the financial reporting bases and tax bases of assets and liabilities based on enacted tax rates expected to be in effect when such amounts are realized or settled. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based upon consideration of available evidence, including future reversals of existing taxable temporary differences, future projected taxable income, the length of the tax asset carryforward periods and tax planning strategies. The effects of remeasurement of deferred tax assets and liabilities resulting from changes in tax rates are recognized in income in the period of enactment. ā On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (āCARES Actā) was enacted by the US Government in response to the COVID-19 pandemic. We are deferring FICA tax payments through the end of 2020 as allowed under the CARES Act. This deferral was $27.6 million at September 30, 2020, and is included in Other long-term liabilities on our Condensed Consolidated Balance Sheet. Half of the deferral will be due on December 31, 2021, and the other half will be due on December 31, 2022. ā |
Dividends and Earnings Per Shar
Dividends and Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Dividends and Earnings Per Share | |
Dividends and Earnings Per Share | Note 13āDividends and Earnings Per Share ā We paid cash dividends during 2020 and 2019 as follows: ā ā ā ā ā ā ā ā ā Declaration Date Record Date Date Paid Amount Per Share November 2, 2018 ā December 31, 2018 ā January 15, 2019 ā $ 0.06 February 26, 2019 ā March 29, 2019 ā April 15, 2019 ā ā 0.06 May 3, 2019 ā June 28, 2019 ā July 15, 2019 ā ā 0.06 August 2, 2019 ā September 30, 2019 ā October 15, 2019 ā ā 0.06 October 31, 2019 ā December 31, 2019 ā January 15, 2020 ā ā 0.06 February 21, 2020 ā March 31, 2020 ā April 15, 2020 ā ā 0.06 May 1, 2020 ā June 30, 2020 ā July 15, 2020 ā ā 0.06 July 31, 2020 ā September 30, 2020 ā October 15, 2020 ā ā 0.06 ā The payment of future dividends is contingent upon our revenue and earnings, capital requirements and our general financial condition, as well as contractual restrictions and other considerations deemed relevant by the Board of Directors. ā The table below presents the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2020 and 2019 (in thousands, except per share amounts). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended September 30, ā Nine Months Ended September 30, ā ā ā 2020 2019 2020 2019 Numerator: ā ā ā ā ā ā ā ā ā ā ā ā ā Net income attributable to Primoris ā $ 43,941 ā $ 35,648 ā $ 73,163 ā $ 55,382 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Denominator: ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted average shares for computation of basic earnings per share ā 48,253 ā 50,976 ā 48,370 ā 50,887 ā Dilutive effect of shares issued to independent directors ā 3 ā 6 ā 5 ā 4 ā Dilutive effect of restricted stock units ā 318 ā 233 ā 337 ā 319 ā Weighted average shares for computation of diluted earnings per share ā 48,574 ā 51,215 ā 48,712 ā 51,210 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Earnings per share attributable to Primoris: ā ā ā ā ā ā ā ā ā ā ā ā ā Basic ā $ 0.91 ā $ 0.70 ā $ 1.51 ā $ 1.09 ā Diluted ā $ 0.90 ā $ 0.70 ā $ 1.50 ā $ 1.08 ā ā |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Stockholders' Equity | |
Stockholders' Equity | Note 14āStockholdersā Equity ā Common stock ā We issued 34,524 and 114,106 shares of common stock in the nine months ended September 30, 2020 and 2019, respectively, under our long-term retention plan (āLTR Planā). The shares were purchased by the participants in the LTR Plan with payment made to us of $0.6 million and $1.8 million in the nine months ended September 30, 2020 and 2019, respectively. Our LTR Plan for certain managers and executives allows participants to use a portion of their annual bonus amount to purchase our common stock at a discount from the market price. The shares purchased in the nine months ended September 30, 2020 were a portion of bonus amounts earned in 2019, and the number of shares purchased was calculated based on 75% of the average daily closing market price of our common stock during December 2019. The shares purchased in the nine months ended September 30, 2019 were for bonus amounts earned in 2018, and the number of shares was calculated at 75% of the average daily closing market price during December 2018. ā In the nine months ended September 30, 2020 and 2019, we issued 36,281 and 30,155 shares of common stock, respectively, as part of the quarterly compensation of the non-employee members of the Board of Directors. ā During the nine months ended September 30, 2020, a total of 54,635 Units, net of forfeitures for tax withholdings, were converted to common stock. There were 122,319 Units converted to common stock during the nine months ended September 30, 2019. ā As discussed in Note 11 ā āStockāBased Compensationā ā Share Repurchase Plan ā In February 2020, our Board of Directors authorized a $25.0 million share repurchase program. Under the share repurchase program, we can, depending on market conditions, share price and other factors, acquire shares of our common stock on the open market or in privately negotiated transactions. In the three months ended September 30, 2020, we purchased and cancelled 174,698 shares of common stock, which in the aggregate equaled $3.1 million at an average share price of $17.80. In the nine months ended September 30, 2020, we purchased and cancelled 694,260 shares of common stock, which in the aggregate equaled $11.5 million at an average share price of $16.50. The share repurchase plan expires on December 31, 2020. ā |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases | |
Leases | Note 15āLeases ā We lease administrative and various operational facilities, which are generally longer-term, project specific facilities or yards, and construction equipment under non-cancelable operating leases. We determine if an arrangement is a lease at inception. We have lease agreements with lease and non-lease components, which are generally accounted for separately. Operating leases are included in operating lease assets, accrued liabilities, and noncurrent operating lease liabilities on our Condensed Consolidated Balance Sheets. ā Operating lease assets and operating lease liabilities are recognized at commencement date based on the present value of the future minimum lease payments over the lease term. In determining our lease term, we include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date to determine the present value of future payments. Lease expense from minimum lease payments is recognized on a straight-line basis over the lease term. ā Our leases have remaining lease terms that expire at various dates through 2030, some of which may include options to extend the leases for up to 5 years. The exercise of lease extensions is at our sole discretion. Periodically, we sublease excess facility space, but any sublease income is generally not significant. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. ā The components of lease expense are as follows (in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended September 30, ā Nine Months Ended September 30, ā ā 2020 2019 2020 2019 Operating lease expense (1) ā $ 22,652 $ 21,478 ā $ 68,784 $ 55,465 ________________________________________ (1) Includes short-term leases which are immaterial. ā Our operating lease liabilities are reported on the Condensed Consolidated Balance Sheets as follows (in thousands): ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā ā 2020 2019 ā Accrued liabilities ā $ 75,779 ā $ 74,036 ā Noncurrent operating lease liabilities, net of current portion ā 151,777 ā 171,225 ā ā ā $ 227,556 ā $ 245,261 ā ā |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies. | |
Commitments and Contingencies | Note 16āCommitments and Contingencies ā NTTA settlement ā ā Legal proceedings ā ā We are subject to other claims and legal proceedings arising out of our business. We provide for costs related to contingencies when a loss from such claims is probable and the amount is reasonably estimable. In determining whether it is possible to provide an estimate of loss, or range of possible loss, we review and evaluate our litigation and regulatory matters on a quarterly basis in light of potentially relevant factual and legal developments. If we determine an unfavorable outcome is not probable, or probable but not reasonably estimable, we do not accrue for a potential litigation loss. ā Management is unable to ascertain the ultimate outcome of other claims and legal proceedings; however, after review and consultation with counsel and taking into consideration relevant insurance coverage and related deductibles/self-insurance retention, management believes that it has meritorious defenses to such claims and believes that the reasonably possible outcome of such claims will not, individually or in the aggregate, have a material adverse effect on our consolidated results of operations, financial condition or cash flow. ā Bonding ā ā |
Reportable Segments
Reportable Segments | 9 Months Ended |
Sep. 30, 2020 | |
Reportable Segments | |
Reportable Segments | Note 17āReportable Segments ā We segregate our business into five reportable segments: the Power segment, the Pipeline segment, the Utilities segment, the Transmission segment, and the Civil segment. Each of our reportable segments is comprised of similar business units that specialize in services unique to the segment. Driving the end-user focused segments are differences in the economic characteristics of each segment, the nature of the services provided by each segment; the production processes of each segment; the type or class of customer using the segmentās services; the methods used by the segment to provide the services; and the regulatory environment of each segmentās customers. ā The classification of revenue and gross profit for segment reporting purposes can at times require judgment on the part of management. Our segments may perform services across industries or perform joint services for customers in multiple industries. To determine reportable segment gross profit, certain allocations, including allocations of shared and indirect costs, such as facility costs, equipment costs and indirect operating expenses, were made. ā The following is a brief description of the reportable segments: ā The Power segment operates throughout the United States and in Canada and specializes in a range of services that include engineering, procurement, and construction, retrofits, upgrades, repairs, outages, and maintenance services for entities in the petroleum and petrochemical industries, as well as traditional and renewable power generators. ā The Pipeline segment operates throughout the United States and specializes in a range of services, including pipeline construction and maintenance, pipeline facility and integrity services, installation of compressor and pump stations, and metering facilities for entities in the petroleum and petrochemical industries, as well as gas, water, and sewer utilities. ā The Utilities segment operates primarily in California, the Midwest, the Atlantic Coast, and the Southeast regions of the United States and specializes in a range of services, including installation and maintenance of new and existing natural gas utility distribution systems and pipeline integrity services for entities in the gas utility market. ā The Transmission segment operates primarily in the Southeastern, Midwest, Atlantic Coast, and Gulf Coast regions of the United States and specializes in a range of services, including installation and maintenance of new and existing electric utility transmission, substation, and distribution systems for entities in the electric utility market. ā The Civil segment operates primarily in the Southeastern and Gulf Coast regions of the United States and specializes in highway and bridge construction, airport runway construction, demolition, site work, soil stabilization, mass excavation, flood control, and drainage projects for entities in the petroleum and petrochemical industries, state and municipal departments of transportation, and airports. ā All intersegment revenue and gross profit, which was immaterial, has been eliminated in the following tables. Total assets by segment is not presented as our Chief Operating Decision Maker as defined by ASC 280 does not review or allocate resources based on segment assets. ā ā Segment Revenue ā Revenue by segment was as follows (in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the three months ended September 30, ā ā 2020 ā 2019 ā ā ā ā ā % of ā ā ā ā % of ā ā ā ā ā Total ā ā ā ā Total Segment Revenue Revenue Revenue Revenue Power ā $ 212,557 22.6% ā $ 200,657 23.2% Pipeline ā ā 214,380 ā 22.7% ā ā 133,590 ā 15.4% Utilities ā 298,984 31.7% ā 281,561 32.6% Transmission ā ā 114,221 ā 12.1% ā ā 128,784 ā 14.9% Civil ā 102,558 10.9% ā 120,472 13.9% Total ā $ 942,700 100.0% ā $ 865,064 100.0% ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the nine months ended September 30, ā ā 2020 ā 2019 ā ā ā ā ā % of ā ā ā ā % of ā ā ā ā ā Total ā ā ā ā Total Segment Revenue Revenue Revenue Revenue Power ā $ 566,226 21.8% ā $ 518,210 22.4% Pipeline ā ā 695,462 ā 26.8% ā ā 405,647 ā 17.5% Utilities ā 676,329 26.1% ā 650,079 28.1% Transmission ā ā 326,953 ā 12.6% ā ā 382,581 ā 16.5% Civil ā 329,189 12.7% ā 360,034 15.5% Total ā $ 2,594,159 100.0% ā $ 2,316,551 100.0% ā ā Segment Gross Profit ā Gross profit by segment was as follows (in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the three months ended September 30, ā ā 2020 ā 2019 ā ā ā % of ā ā % of ā ā ā ā ā Segment ā ā ā ā Segment Segment ā Gross Profit ā Revenue ā Gross Profit ā Revenue Power ā $ 15,705 7.4% ā $ 15,525 7.7% Pipeline ā ā 28,045 ā 13.1% ā ā 19,657 ā 14.7% Utilities ā 54,417 18.2% ā 48,892 17.4% Transmission ā ā 13,718 ā 12.0% ā ā 4,836 ā 3.8% Civil ā 11,796 11.5% ā 19,511 16.2% Total ā $ 123,681 13.1% ā $ 108,421 12.5% ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the nine months ended September 30, ā ā ā 2020 ā 2019 ā ā ā ā ā % of ā ā ā ā % of ā ā ā ā ā Segment ā ā ā ā Segment ā Segment Gross Profit Revenue Gross Profit Revenue Power ā $ 41,090 7.3% ā $ 58,890 11.4% ā Pipeline ā ā 71,567 ā 10.3% ā ā 46,204 ā 11.4% ā Utilities ā 101,411 15.0% ā 87,999 13.5% ā Transmission ā ā 28,875 ā 8.8% ā ā 21,664 ā 5.7% ā Civil ā 29,515 9.0% ā 26,655 7.4% ā Total ā $ 272,458 10.5% ā $ 241,412 10.4% ā ā ā ā Segment Goodwill ā The amount of goodwill recorded by each segment at September 30, 2020 and at December 31, 2019 is presented in Note 6 ā ā Goodwill and Intangible Assetsā ā Geographic Region ā Revenue and Total Assets ā The majority of our revenue is derived from customers in the United States with approximately 3.5% and 5.3% generated from sources outside of the United States during the nine months ended September 30, 2020 and 2019, respectively, principally in Canada. At September 30, 2020 and December 31, 2019, approximately 3.8% and 4.4%, respectively, of total assets were located outside of the United States, principally in Canada. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events. | |
Subsequent Events | Note 18āSubsequent Events ā Cash Dividend ā On November 5, 2020, the Board of Directors declared a cash dividend of $0.06 per share of common stock for stockholders of record as of December 31, 2020, payable on or about January 15, 2021. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Basis of Presentation | |
Revenue recognition | We generate revenue under a range of contracting types, including fixed-price, unit-price, time and material, and cost reimbursable plus fee contracts, each of which has a different risk profile. A substantial portion of our revenue is derived from contracts where scope is adequately defined, and therefore we can reasonably estimate total contract value. For these contracts, revenue is recognized over time as work is completed because of the continuous transfer of control to the customer (typically using an input measure such as costs incurred to date relative to total estimated costs at completion to measure progress). For certain contracts, where scope is not adequately defined and we canāt reasonably estimate total contract value, revenue is recognized primarily on an input basis, based on contract costs incurred as defined within the respective contracts. Costs to obtain contracts are generally not significant and are expensed in the period incurred. ā We evaluate whether two or more contracts should be combined and accounted for as one single performance obligation and whether a single contract should be accounted for as more than one performance obligation. ASC 606 defines a performance obligation as a contractual promise to transfer a distinct good or service to a customer. A contractās transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Our evaluation requires significant judgment and the decision to combine a group of contracts or separate a contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. The majority of our contracts have a single performance obligation, as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contract and, therefore, is not distinct. However, occasionally we have contracts with multiple performance obligations. For contracts with multiple performance obligations, we allocate the contractās transaction price to each performance obligation using the observable standalone selling price, if available, or alternatively our best estimate of the standalone selling price of each distinct performance obligation in the contract. The primary method used to estimate standalone selling price is the expected cost plus a margin approach for each performance obligation. ā As of September 30, 2020, we had $1.89 billion of remaining performance obligations. We expect to recognize approximately 76% of our remaining performance obligations as revenue during the next four ā Accounting for long-term contracts involves the use of various techniques to estimate total transaction price and costs. For long-term contracts, transaction price, estimated cost at completion and total costs incurred to date are used to calculate revenue earned. Unforeseen events and circumstances can alter the estimate of the costs and potential profit associated with a particular contract. Total estimated costs, and thus contract revenue and income, can be impacted by changes in productivity, scheduling, the unit cost of labor, subcontracts, materials and equipment. Additionally, external factors such as weather, client needs, client delays in providing permits and approvals, labor availability, governmental regulation, politics and any prevailing impacts from the pandemic caused by the coronavirus may affect the progress of a projectās completion, and thus the timing of revenue recognition. To the extent that original cost estimates are modified, estimated costs to complete increase, delivery schedules are delayed, or progress under a contract is otherwise impeded, cash flow, revenue recognition and profitability from a particular contract may be adversely affected. ā The nature of our contracts gives rise to several types of variable consideration, including contract modifications (change orders and claims), liquidated damages, volume discounts, performance bonuses, incentive fees, and other terms that can either increase or decrease the transaction price. We estimate variable consideration as the most likely amount to which we expect to be entitled. We include estimated amounts in the transaction price to the extent we believe we have an enforceable right, and it is probable that a significant reversal of cumulative revenue recognized will not occur. Our estimates of variable consideration and the determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us at this time. ā Contract modifications result from changes in contract specifications or requirements. We consider unapproved change orders to be contract modifications for which customers have not agreed to both scope and price. We consider claims to be contract modifications for which we seek, or will seek, to collect from customers, or others, for customer-caused changes in contract specifications or design, or other customer-related causes of unanticipated additional contract costs on which there is no agreement with customers. Claims can also be caused by non-customer-caused changes, such as rain or other weather delays. Costs associated with contract modifications are included in the estimated costs to complete the contracts and are treated as project costs when incurred. In most instances, contract modifications are for goods or services that are not distinct, and, therefore, are accounted for as part of the existing contract. The effect of a contract modification on the transaction price, and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue on a cumulative catch-up basis. In some cases, settlement of contract modifications may not occur until after completion of work under the contract. ā As a significant change in one or more of these estimates could affect the profitability of our contracts, we review and update our contract-related estimates regularly. We recognize adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the cumulative impact of the profit adjustment is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance are recognized using the adjusted estimate. In the three and nine months ended September 30, 2020, revenue recognized from performance obligations satisfied in previous periods was $9.3 million and $7.7 million, respectively. If at any time the estimate of contract profitability indicates an anticipated loss on a contract, the projected loss is recognized in full, including the reversal of any previously recognized profit, in the period it is identified and recognized as an āaccrued loss provisionā which is included in āContract liabilitiesā on the Condensed Consolidated Balance Sheets. For contract revenue recognized over time, the accrued loss provision is adjusted so that the gross profit for the contract remains zero in future periods. ā At September 30, 2020, we had approximately $84.3 million of unapproved contract modifications included in the aggregate transaction prices. These contract modifications were in the process of being negotiated in the normal course of business. Approximately $70.1 million of the contract modifications had been recognized as revenue on a cumulative catch-up basis through September 30, 2020. ā In all forms of contracts, we estimate the collectability of contract amounts at the same time that we estimate project costs. If we anticipate that there may be issues associated with the collectability of the full amount calculated as the transaction price, we may reduce the amount recognized as revenue to reflect the uncertainty associated with realization of the eventual cash collection. For example, when a cost reimbursable project exceeds the clientās expected budget amount, the client frequently requests an adjustment to the final amount. Similarly, some utility clients reserve the right to audit costs for significant periods after performance of the work. ā The timing of when we bill our customers is generally dependent upon agreed-upon contractual terms, milestone billings based on the completion of certain phases of the work, or when services are provided. Sometimes, billing occurs subsequent to revenue recognition, resulting in unbilled revenue, which is a contract asset. Also, we sometimes receive advances or deposits from our customers before revenue is recognized, resulting in deferred revenue, which is a contract liability. ā The caption āContract assetsā in the Condensed Consolidated Balance Sheets represents the following: ā ā unbilled revenue, which arise when revenue has been recorded but the amount will not be billed until a later date; ā ā retainage amounts for the portion of the contract price earned by us for work performed, but held for payment by the customer as a form of security until we reach certain construction milestones; and ā ā contract materials for certain job specific materials not yet installed, which are valued using the specific identification method relating the cost incurred to a specific project. |
Customer concentration | Customer concentration For the three and nine months ended September 30, 2020, approximately 49.2% and 49.3%, respectively, of total revenue was generated from our top ten customers. For the three months ended September 30, 2020 no one customer accounted for more than 10% of total revenue and for the nine months ended September 30, 2020, one pipeline customer represented approximately 10.5% of total revenue. ā For each of the three and nine months ended September 30, 2019, approximately 48.0% of total revenue was generated from our top ten customers, and no one customer accounted for more than 10% of total revenue, respectively. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Measurements | |
Schedule of financial assets and liabilities which are required to be measured at fair value | The following table presents, for each of the fair value hierarchy levels identified under ASC Topic 820, our financial assets and liabilities that are required to be measured at fair value at September 30, 2020 and December 31, 2019 (in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fair Value Measurements at Reporting Date ā ā ā Significant ā ā ā ā Quoted Prices ā Other ā Significant ā ā in Active Markets ā Observable ā Unobservable ā ā for Identical Assets ā Inputs ā Inputs ā (Level 1) (Level 2) (Level 3) Assets as of September 30, 2020: ā ā ā ā ā ā ā ā ā ā Cash and cash equivalents ā $ 228,546 $ ā $ ā ā Contingent consideration ā ā ā ā ā ā ā ā 411 ā Liabilities as of September 30, 2020: ā ā ā ā ā ā ā ā ā ā Interest rate swap ā $ ā ā $ 10,299 ā $ ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Assets as of December 31, 2019: ā ā ā ā ā ā ā ā ā ā Cash and cash equivalents ā $ 120,286 $ ā $ ā ā Contingent consideration ā ā ā ā ā ā ā ā 938 ā Liabilities as of December 31, 2019: ā ā ā ā ā ā ā ā ā ā Interest rate swap ā $ ā ā $ 6,443 ā $ ā ā |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue | |
Schedule of contract assets | Contract assets consist of the following (in thousands): ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā ā 2020 2019 ā Unbilled revenue ā $ 243,399 ā $ 251,429 ā Retention receivable ā ā 100,708 ā ā 81,393 ā Contract materials (not yet installed) ā 16,992 ā 11,984 ā ā ā $ 361,099 ā $ 344,806 ā |
Schedule of contract liabilities | Contract liabilities consist of the following (in thousands): ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā ā 2020 2019 ā Deferred revenue ā $ 244,518 ā $ 186,081 ā Accrued loss provision ā 11,503 ā 6,316 ā ā ā $ 256,021 ā $ 192,397 ā |
Schedule of revenue disaggregation by various categories | Master Service Agreements (āMSAā) and Non-MSA revenue was as follows (in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the three months ended September 30, 2020 Segment ā MSA ā Non-MSA ā Total ā Power ā $ 35,297 ā $ 177,260 ā $ 212,557 ā Pipeline ā ā 29,403 ā ā 184,977 ā ā 214,380 ā Utilities ā 230,099 ā ā 68,885 ā ā 298,984 ā Transmission ā ā 89,312 ā ā 24,909 ā ā 114,221 ā Civil ā 624 ā ā 101,934 ā ā 102,558 ā Total ā $ 384,735 $ 557,965 $ 942,700 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the nine months ended September 30, 2020 Segment MSA Non-MSA Total ā Power ā $ 98,897 ā $ 467,329 ā $ 566,226 ā Pipeline ā ā 108,952 ā ā 586,510 ā ā 695,462 ā Utilities ā 516,711 ā ā 159,618 ā ā 676,329 ā Transmission ā ā 263,742 ā ā 63,211 ā ā 326,953 ā Civil ā 2,152 ā ā 327,037 ā ā 329,189 ā Total ā $ 990,454 $ 1,603,705 $ 2,594,159 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the three months ended September 30, 2019 Segment ā MSA ā Non-MSA ā Total ā Power ā $ 43,680 $ 156,977 $ 200,657 ā Pipeline ā ā 29,110 ā ā 104,480 ā ā 133,590 ā Utilities ā 189,606 91,955 281,561 ā Transmission ā ā 103,421 ā ā 25,363 ā ā 128,784 ā Civil ā 1,074 119,398 120,472 ā Total ā $ 366,891 $ 498,173 $ 865,064 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the nine months ended September 30, 2019 Segment MSA Non-MSA Total ā Power ā $ 136,564 $ 381,646 $ 518,210 ā Pipeline ā ā 71,112 ā ā 334,535 ā ā 405,647 ā Utilities ā 481,439 168,640 650,079 ā Transmission ā ā 316,019 ā ā 66,562 ā ā 382,581 ā Civil ā 2,949 357,085 360,034 ā Total ā $ 1,008,083 $ 1,308,468 $ 2,316,551 ā ā ā ā Revenue by contract type was as follows (in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the three months ended September 30, 2020 Segment ā Fixed-price ā Unit-price ā Cost reimbursable (1) ā Total ā Power ā $ 66,939 ā $ 1,993 ā $ 143,625 ā $ 212,557 ā Pipeline ā ā 152,301 ā ā 45,627 ā ā 16,452 ā ā 214,380 ā Utilities ā 23,117 ā ā 185,791 ā ā 90,076 ā ā 298,984 ā Transmission ā ā 7,480 ā ā 68,952 ā ā 37,789 ā ā 114,221 ā Civil ā 12,557 ā ā 79,761 ā ā 10,240 ā ā 102,558 ā Total ā $ 262,394 $ 382,124 $ 298,182 $ 942,700 ā ā (1) Includes time and material and cost reimbursable plus fee contracts. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the nine months ended September 30, 2020 Segment Fixed-price Unit-price Cost reimbursable (1) Total ā Power ā $ 331,125 ā $ 2,174 ā $ 232,927 ā $ 566,226 ā Pipeline ā ā 191,652 ā ā 277,788 ā ā 226,022 ā ā 695,462 ā Utilities ā 77,889 ā ā 421,436 ā ā 177,004 ā ā 676,329 ā Transmission ā ā 33,959 ā ā 254,761 ā ā 38,233 ā ā 326,953 ā Civil ā 49,782 ā ā 249,968 ā ā 29,439 ā ā 329,189 ā Total ā $ 684,407 $ 1,206,127 $ 703,625 $ 2,594,159 ā ā (1) Includes time and material and cost reimbursable plus fee contracts. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the three months ended September 30, 2019 Segment ā Fixed-price ā Unit-price ā Cost reimbursable (1) ā Total ā Power ā $ 136,040 $ 2,954 $ 61,663 $ 200,657 ā Pipeline ā ā 13,860 ā ā 21,949 ā ā 97,781 ā ā 133,590 ā Utilities ā 31,462 165,183 84,916 281,561 ā Transmission ā ā 13,034 ā ā 110,869 ā ā 4,881 ā ā 128,784 ā Civil ā 19,957 79,586 20,929 120,472 ā Total ā $ 214,353 $ 380,541 $ 270,170 $ 865,064 ā ā (1) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the nine months ended September 30, 2019 Segment Fixed-price Unit-price Cost reimbursable (1) Total ā Power ā $ 316,288 $ 13,609 $ 188,313 $ 518,210 ā Pipeline ā ā 45,196 ā ā 32,453 ā ā 327,998 ā ā 405,647 ā Utilities ā 84,349 352,679 213,051 650,079 ā Transmission ā ā 35,748 ā ā 332,389 ā ā 14,444 ā ā 382,581 ā Civil ā 61,643 241,985 56,406 360,034 ā Total ā $ 543,224 $ 973,115 $ 800,212 $ 2,316,551 ā ā (1) ā |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets | |
Schedule of goodwill by reporting unit | The carrying amount of goodwill by reportable segment is as follows (in thousands): ā ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, Reporting Segment 2020 2019 Power $ 26,194 ā $ 26,194 ā Pipeline 52,415 ā 52,415 ā Utilities 37,312 ā 37,312 ā Transmission ā ā 59,032 ā ā 59,032 ā Civil 40,150 ā 40,150 ā Total Goodwill ā $ 215,103 ā $ 215,103 ā ā |
Summary of intangible asset categories, amounts and the average amortization periods | The table below summarizes the intangible asset categories and amounts, which are amortized on a straight-line basis (in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā September 30, 2020 ā December 31, 2019 ā ā Gross Carrying Accumulated Intangible assets, net Gross Carrying Accumulated Intangible assets, net Tradename ā $ 16,040 ā $ (14,565) ā $ 1,475 ā $ 16,040 ā $ (13,216) ā $ 2,824 ā Customer relationships ā 91,000 ā ā (29,674) ā ā 61,326 ā 91,000 ā (24,353) ā 66,647 ā Non-compete agreements ā 1,900 ā ā (1,707) ā ā 193 ā 1,900 ā (1,580) ā 320 ā Other ā ā 275 ā ā (275) ā ā ā ā ā 275 ā ā (237) ā ā 38 ā Total ā $ 109,215 ā $ (46,221) ā $ 62,994 ā $ 109,215 ā $ (39,386) ā $ 69,829 ā |
Schedule of estimated future amortization expense for intangible assets | Estimated future amortization expense for intangible assets is as follows (in thousands): ā ā ā ā ā ā ā ā Estimated ā ā Intangible ā ā Amortization For the Years Ending December 31, Expense 2020 (remaining three months) ā $ 1,982 ā 2021 ā ā 7,577 ā 2022 ā 6,416 ā 2023 ā 5,581 ā 2024 ā 4,862 ā Thereafter ā 36,576 ā ā ā $ 62,994 ā |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounts Payable and Accrued Liabilities | |
Summary of accrued liabilities | The following is a summary of accrued liabilities (in thousands): ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā 2020 2019 Payroll and related employee benefits ā $ 93,613 ā $ 64,705 Current operating lease liability ā ā 75,779 ā ā 74,036 Casualty insurance reserves ā 9,525 ā 9,918 Corporate income taxes and other taxes ā 25,156 ā 9,027 Other ā 19,564 ā 25,815 ā ā $ 223,637 ā $ 183,501 |
Credit Arrangements (Tables)
Credit Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Credit Arrangements | |
Schedule of long-term debt and credit facilities | ā Long-term debt and credit facilities consists of the following (in thousands): ā ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā ā 2020 2019 Term loan ā $ 195,250 ā $ 203,500 ā Commercial equipment notes ā ā 95,254 ā ā 105,114 ā Mortgage notes ā 39,137 ā 43,474 ā Total debt ā ā 329,641 ā ā 352,088 ā Unamortized debt issuance costs ā ā (573) ā ā (787) ā Total debt, net ā $ 329,068 ā $ 351,301 ā Less: current portion ā (47,708) ā (55,659) ā Long-term debt, net of current portion ā $ 281,360 ā $ 295,642 ā |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments | |
Schedule of fair values of our derivative contracts included in the Condensed Consolidated Balance Sheets | The following table summarizes the fair value of our derivative contracts included in the Condensed Consolidated Balance Sheets (in thousands): ā ā ā ā ā ā ā ā ā ā ā September 30, December 31, ā ā Balance Sheet Location ā 2020 ā 2019 Interest rate swap ā Other long-term liabilities ā $ 10,299 ā $ 6,443 ā ā |
Schedule of derivative instruments within the Condensed Consolidated Statements of Income | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended ā Nine Months Ended ā ā ā Location of (Gain) Loss Recognized ā September 30, ā September 30, ā ā on Derivatives 2020 2019 ā 2020 2019 Interest rate swap Interest expense ā $ (11) ā $ 920 ā $ 6,262 ā $ 5,428 ā |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Noncontrolling Interests | |
Schedule of joint venture operating activities included in the Company's consolidated statements of income | The Carlsbad joint ventureās operating activities began in 2015 and are included in our Condensed Consolidated Statements of Income as follows (in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended September 30, ā Nine Months Ended September 30, ā ā ā 2020 2019 2020 2019 Revenue ā $ ā ā $ 541 ā $ ā ā $ 4,792 ā Net income attributable to noncontrolling interests ā ā 2 ā ā 178 ā ā 8 ā ā 1,204 ā |
Schedule of the carrying value of the assets and liabilities included in the Company's consolidated balance sheets | The following table summarizes the total balance sheet amounts for the Carlsbad joint venture, which is included in our Condensed Consolidated Balance Sheets, and the total consolidated balance sheet amounts (in thousands): ā ā ā ā ā ā ā ā ā ā ā Joint Venture ā Consolidated ā At September 30, 2020 Amounts Amounts Cash ā $ 451 ā $ 228,546 ā Due to Primoris ā ā 16 ā ā ā ā Contract liabilities ā ā 356 ā ā 256,021 ā ā ā ā ā ā ā ā ā At December 31, 2019 ā ā ā ā ā ā ā Cash ā $ 2,124 ā $ 120,286 ā Accounts payable ā ā 38 ā ā 235,972 ā Contract liabilities ā ā 425 ā ā 192,397 ā |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Stock-Based Compensation | |
Schedule of units activity | ā ā ā ā ā ā Number of Units For the Years Ending December 31, to Vest 2020 (remaining three months) ā 2,053 2021 ā 154,613 2022 ā 80,724 2023 ā 55,365 ā ā 292,755 |
Dividends and Earnings Per Sh_2
Dividends and Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Dividends and Earnings Per Share | |
Schedule of cash dividends paid or declared | We paid cash dividends during 2020 and 2019 as follows: ā ā ā ā ā ā ā ā ā Declaration Date Record Date Date Paid Amount Per Share November 2, 2018 ā December 31, 2018 ā January 15, 2019 ā $ 0.06 February 26, 2019 ā March 29, 2019 ā April 15, 2019 ā ā 0.06 May 3, 2019 ā June 28, 2019 ā July 15, 2019 ā ā 0.06 August 2, 2019 ā September 30, 2019 ā October 15, 2019 ā ā 0.06 October 31, 2019 ā December 31, 2019 ā January 15, 2020 ā ā 0.06 February 21, 2020 ā March 31, 2020 ā April 15, 2020 ā ā 0.06 May 1, 2020 ā June 30, 2020 ā July 15, 2020 ā ā 0.06 July 31, 2020 ā September 30, 2020 ā October 15, 2020 ā ā 0.06 |
Schedule of computation of basic and diluted earnings per share | The table below presents the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2020 and 2019 (in thousands, except per share amounts). ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended September 30, ā Nine Months Ended September 30, ā ā ā 2020 2019 2020 2019 Numerator: ā ā ā ā ā ā ā ā ā ā ā ā ā Net income attributable to Primoris ā $ 43,941 ā $ 35,648 ā $ 73,163 ā $ 55,382 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Denominator: ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted average shares for computation of basic earnings per share ā 48,253 ā 50,976 ā 48,370 ā 50,887 ā Dilutive effect of shares issued to independent directors ā 3 ā 6 ā 5 ā 4 ā Dilutive effect of restricted stock units ā 318 ā 233 ā 337 ā 319 ā Weighted average shares for computation of diluted earnings per share ā 48,574 ā 51,215 ā 48,712 ā 51,210 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Earnings per share attributable to Primoris: ā ā ā ā ā ā ā ā ā ā ā ā ā Basic ā $ 0.91 ā $ 0.70 ā $ 1.51 ā $ 1.09 ā Diluted ā $ 0.90 ā $ 0.70 ā $ 1.50 ā $ 1.08 ā |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases | |
Summary of components of lease expense | The components of lease expense are as follows (in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended September 30, ā Nine Months Ended September 30, ā ā 2020 2019 2020 2019 Operating lease expense (1) ā $ 22,652 $ 21,478 ā $ 68,784 $ 55,465 ________________________________________ (1) Includes short-term leases which are immaterial. |
Summary of operating lease liabilities | Our operating lease liabilities are reported on the Condensed Consolidated Balance Sheets as follows (in thousands): ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā ā 2020 2019 ā Accrued liabilities ā $ 75,779 ā $ 74,036 ā Noncurrent operating lease liabilities, net of current portion ā 151,777 ā 171,225 ā ā ā $ 227,556 ā $ 245,261 ā |
Reportable Segments (Tables)
Reportable Segments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Reportable Segments | |
Schedule of revenue and gross profit by segment | Revenue by segment was as follows (in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the three months ended September 30, ā ā 2020 ā 2019 ā ā ā ā ā % of ā ā ā ā % of ā ā ā ā ā Total ā ā ā ā Total Segment Revenue Revenue Revenue Revenue Power ā $ 212,557 22.6% ā $ 200,657 23.2% Pipeline ā ā 214,380 ā 22.7% ā ā 133,590 ā 15.4% Utilities ā 298,984 31.7% ā 281,561 32.6% Transmission ā ā 114,221 ā 12.1% ā ā 128,784 ā 14.9% Civil ā 102,558 10.9% ā 120,472 13.9% Total ā $ 942,700 100.0% ā $ 865,064 100.0% ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the nine months ended September 30, ā ā 2020 ā 2019 ā ā ā ā ā % of ā ā ā ā % of ā ā ā ā ā Total ā ā ā ā Total Segment Revenue Revenue Revenue Revenue Power ā $ 566,226 21.8% ā $ 518,210 22.4% Pipeline ā ā 695,462 ā 26.8% ā ā 405,647 ā 17.5% Utilities ā 676,329 26.1% ā 650,079 28.1% Transmission ā ā 326,953 ā 12.6% ā ā 382,581 ā 16.5% Civil ā 329,189 12.7% ā 360,034 15.5% Total ā $ 2,594,159 100.0% ā $ 2,316,551 100.0% ā ā Segment Gross Profit ā Gross profit by segment was as follows (in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the three months ended September 30, ā ā 2020 ā 2019 ā ā ā % of ā ā % of ā ā ā ā ā Segment ā ā ā ā Segment Segment ā Gross Profit ā Revenue ā Gross Profit ā Revenue Power ā $ 15,705 7.4% ā $ 15,525 7.7% Pipeline ā ā 28,045 ā 13.1% ā ā 19,657 ā 14.7% Utilities ā 54,417 18.2% ā 48,892 17.4% Transmission ā ā 13,718 ā 12.0% ā ā 4,836 ā 3.8% Civil ā 11,796 11.5% ā 19,511 16.2% Total ā $ 123,681 13.1% ā $ 108,421 12.5% ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the nine months ended September 30, ā ā ā 2020 ā 2019 ā ā ā ā ā % of ā ā ā ā % of ā ā ā ā ā Segment ā ā ā ā Segment ā Segment Gross Profit Revenue Gross Profit Revenue Power ā $ 41,090 7.3% ā $ 58,890 11.4% ā Pipeline ā ā 71,567 ā 10.3% ā ā 46,204 ā 11.4% ā Utilities ā 101,411 15.0% ā 87,999 13.5% ā Transmission ā ā 28,875 ā 8.8% ā ā 21,664 ā 5.7% ā Civil ā 29,515 9.0% ā 26,655 7.4% ā Total ā $ 272,458 10.5% ā $ 241,412 10.4% ā |
Nature of Business (Details)
Nature of Business (Details) | 9 Months Ended |
Sep. 30, 2020segment | |
Nature of Business | |
Number of reportable segments | 5 |
Carlsbad | |
Nature of Business | |
Ownership percentage | 50.00% |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($)customer | Sep. 30, 2019USD ($)customer | Sep. 30, 2020USD ($)customeritem | Sep. 30, 2019USD ($)customer | |
Customer concentration | ||||
Number of top customers | 10 | |||
Number of calendar years in which top customers typically generate minimum specified percentage of revenue | item | 1 | |||
Minimum percentage of revenues generated by top ten customers | 50.00% | |||
Revenue | $ | $ 942,700 | $ 865,064 | $ 2,594,159 | $ 2,316,551 |
Revenues | Customer concentration | ||||
Customer concentration | ||||
Number of top customers | 10 | 10 | ||
Percentage of concentration risk | 48.00% | 48.00% | ||
Revenues | Customer concentration | Top ten customers | ||||
Customer concentration | ||||
Number of top customers | 10 | 10 | ||
Percentage of concentration risk | 49.20% | 49.30% | ||
Revenues | Customer concentration | Pipeline Customer | ||||
Customer concentration | ||||
Percentage of concentration risk | 10.50% | |||
Number of customers | 1 | 1 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | |
Assets | |||
Contingent consideration | $ 900 | ||
Change in contingent consideration | $ (500) | ||
Contingent consideration | |||
Earnout | $ 2,000 | ||
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets | |||
Cash and cash equivalents | 228,546 | $ 120,286 | |
Recurring | Significant Unobservable Inputs (Level 3) | |||
Assets | |||
Contingent consideration | 411 | 938 | |
Recurring | Interest rate swap | Significant Other Observable Inputs (Level2) | |||
Liabilities | |||
Derivative liability | $ 10,299 | $ 6,443 |
Revenue - Performance obligatio
Revenue - Performance obligations (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($) | |
Revenue | ||
Remaining performance obligations | $ 1,890 | $ 1,890 |
Revenue recognized from performance obligations satisfied in previous periods | 9.3 | 7.7 |
Amount of contract modifications included in the expected contract value. | $ 84.3 | 84.3 |
Amount of unapproved contract modifications recognized as revenue on a cumulative catch-up basis | $ 70.1 |
Revenue - Performance obligat_2
Revenue - Performance obligations - 2020 (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | 9 Months Ended |
Sep. 30, 2020 | |
Revenue expected timing | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | 12 months |
Percentage of remaining performance obligation expected to be recognized in period | 76.00% |
Revenue - Contract assets (Deta
Revenue - Contract assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Revenue | ||
Unbilled revenue | $ 243,399 | $ 251,429 |
Retention receivable | 100,708 | 81,393 |
Contract materials (not yet installed) | 16,992 | 11,984 |
Contract assets | 361,099 | $ 344,806 |
Increase (decrease) in contract assets | $ 16,300 |
Revenue - Contract liabilities
Revenue - Contract liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Revenue | ||
Deferred revenue | $ 244,518 | $ 186,081 |
Accrued loss provision | 11,503 | 6,316 |
Contract liabilities | 256,021 | $ 192,397 |
Decrease in contract liabilities | 63,600 | |
Revenue recognized included in contract liability at beginning of period | $ 128,500 |
Revenue - Disaggregation of rev
Revenue - Disaggregation of revenue by customer type and contract type (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue | ||||
Revenue | $ 942,700 | $ 865,064 | $ 2,594,159 | $ 2,316,551 |
Fixed price | ||||
Disaggregation of Revenue | ||||
Revenue | 262,394 | 214,353 | 684,407 | 543,224 |
Unit price | ||||
Disaggregation of Revenue | ||||
Revenue | 382,124 | 380,541 | 1,206,127 | 973,115 |
Cost reimbursable | ||||
Disaggregation of Revenue | ||||
Revenue | 298,182 | 270,170 | 703,625 | 800,212 |
MSA | ||||
Disaggregation of Revenue | ||||
Revenue | 384,735 | 366,891 | 990,454 | 1,008,083 |
Non-MSA | ||||
Disaggregation of Revenue | ||||
Revenue | 557,965 | 498,173 | 1,603,705 | 1,308,468 |
Power | ||||
Disaggregation of Revenue | ||||
Revenue | 212,557 | 200,657 | 566,226 | 518,210 |
Power | Fixed price | ||||
Disaggregation of Revenue | ||||
Revenue | 66,939 | 136,040 | 331,125 | 316,288 |
Power | Unit price | ||||
Disaggregation of Revenue | ||||
Revenue | 1,993 | 2,954 | 2,174 | 13,609 |
Power | Cost reimbursable | ||||
Disaggregation of Revenue | ||||
Revenue | 143,625 | 61,663 | 232,927 | 188,313 |
Power | MSA | ||||
Disaggregation of Revenue | ||||
Revenue | 35,297 | 43,680 | 98,897 | 136,564 |
Power | Non-MSA | ||||
Disaggregation of Revenue | ||||
Revenue | 177,260 | 156,977 | 467,329 | 381,646 |
Pipeline | ||||
Disaggregation of Revenue | ||||
Revenue | 214,380 | 133,590 | 695,462 | 405,647 |
Pipeline | Fixed price | ||||
Disaggregation of Revenue | ||||
Revenue | 152,301 | 13,860 | 191,652 | 45,196 |
Pipeline | Unit price | ||||
Disaggregation of Revenue | ||||
Revenue | 45,627 | 21,949 | 277,788 | 32,453 |
Pipeline | Cost reimbursable | ||||
Disaggregation of Revenue | ||||
Revenue | 16,452 | 97,781 | 226,022 | 327,998 |
Pipeline | MSA | ||||
Disaggregation of Revenue | ||||
Revenue | 29,403 | 29,110 | 108,952 | 71,112 |
Pipeline | Non-MSA | ||||
Disaggregation of Revenue | ||||
Revenue | 184,977 | 104,480 | 586,510 | 334,535 |
Utilities | ||||
Disaggregation of Revenue | ||||
Revenue | 298,984 | 281,561 | 676,329 | 650,079 |
Utilities | Fixed price | ||||
Disaggregation of Revenue | ||||
Revenue | 23,117 | 31,462 | 77,889 | 84,349 |
Utilities | Unit price | ||||
Disaggregation of Revenue | ||||
Revenue | 185,791 | 165,183 | 421,436 | 352,679 |
Utilities | Cost reimbursable | ||||
Disaggregation of Revenue | ||||
Revenue | 90,076 | 84,916 | 177,004 | 213,051 |
Utilities | MSA | ||||
Disaggregation of Revenue | ||||
Revenue | 230,099 | 189,606 | 516,711 | 481,439 |
Utilities | Non-MSA | ||||
Disaggregation of Revenue | ||||
Revenue | 68,885 | 91,955 | 159,618 | 168,640 |
Transmission | ||||
Disaggregation of Revenue | ||||
Revenue | 114,221 | 128,784 | 326,953 | 382,581 |
Transmission | Fixed price | ||||
Disaggregation of Revenue | ||||
Revenue | 7,480 | 13,034 | 33,959 | 35,748 |
Transmission | Unit price | ||||
Disaggregation of Revenue | ||||
Revenue | 68,952 | 110,869 | 254,761 | 332,389 |
Transmission | Cost reimbursable | ||||
Disaggregation of Revenue | ||||
Revenue | 37,789 | 4,881 | 38,233 | 14,444 |
Transmission | MSA | ||||
Disaggregation of Revenue | ||||
Revenue | 89,312 | 103,421 | 263,742 | 316,019 |
Transmission | Non-MSA | ||||
Disaggregation of Revenue | ||||
Revenue | 24,909 | 25,363 | 63,211 | 66,562 |
Civil | ||||
Disaggregation of Revenue | ||||
Revenue | 102,558 | 120,472 | 329,189 | 360,034 |
Civil | Fixed price | ||||
Disaggregation of Revenue | ||||
Revenue | 12,557 | 19,957 | 49,782 | 61,643 |
Civil | Unit price | ||||
Disaggregation of Revenue | ||||
Revenue | 79,761 | 79,586 | 249,968 | 241,985 |
Civil | Cost reimbursable | ||||
Disaggregation of Revenue | ||||
Revenue | 10,240 | 20,929 | 29,439 | 56,406 |
Civil | MSA | ||||
Disaggregation of Revenue | ||||
Revenue | 624 | 1,074 | 2,152 | 2,949 |
Civil | Non-MSA | ||||
Disaggregation of Revenue | ||||
Revenue | $ 101,934 | $ 119,398 | $ 327,037 | $ 357,085 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Goodwill | ||
Goodwill | $ 215,103 | $ 215,103 |
Power | ||
Goodwill | ||
Goodwill | 26,194 | 26,194 |
Pipeline | ||
Goodwill | ||
Goodwill | 52,415 | 52,415 |
Utilities | ||
Goodwill | ||
Goodwill | 37,312 | 37,312 |
Transmission | ||
Goodwill | ||
Goodwill | 59,032 | 59,032 |
Civil | ||
Goodwill | ||
Goodwill | $ 40,150 | $ 40,150 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Intangible assets | |||||
Gross Carrying Amount | $ 109,215 | $ 109,215 | $ 109,215 | ||
Accumulated Amortization | (46,221) | (46,221) | (39,386) | ||
Amortization expense of intangible assets | 2,200 | $ 2,900 | 6,800 | $ 8,600 | |
Estimated future amortization expense for intangible assets | |||||
2020 (remaining six months) | 1,982 | 1,982 | |||
2021 | 7,577 | 7,577 | |||
2022 | 6,416 | 6,416 | |||
2023 | 5,581 | 5,581 | |||
2024 | 4,862 | 4,862 | |||
Thereafter | 36,576 | 36,576 | |||
Total | 62,994 | 62,994 | 69,829 | ||
Tradename | |||||
Intangible assets | |||||
Gross Carrying Amount | 16,040 | 16,040 | 16,040 | ||
Accumulated Amortization | (14,565) | (14,565) | (13,216) | ||
Estimated future amortization expense for intangible assets | |||||
Total | 1,475 | 1,475 | 2,824 | ||
Customer relationships | |||||
Intangible assets | |||||
Gross Carrying Amount | 91,000 | 91,000 | 91,000 | ||
Accumulated Amortization | (29,674) | (29,674) | (24,353) | ||
Estimated future amortization expense for intangible assets | |||||
Total | 61,326 | 61,326 | 66,647 | ||
Non-compete agreements | |||||
Intangible assets | |||||
Gross Carrying Amount | 1,900 | 1,900 | 1,900 | ||
Accumulated Amortization | (1,707) | (1,707) | (1,580) | ||
Estimated future amortization expense for intangible assets | |||||
Total | 193 | 193 | 320 | ||
Other | |||||
Intangible assets | |||||
Gross Carrying Amount | 275 | 275 | 275 | ||
Accumulated Amortization | $ (275) | $ (275) | (237) | ||
Estimated future amortization expense for intangible assets | |||||
Total | $ 38 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts Payable and Accrued Liabilities | ||
Retention amounts included in accounts payable | $ 9,100 | $ 11,300 |
Accrued liabilities | ||
Payroll and related employee benefits | 93,613 | 64,705 |
Current operating lease liability | 75,779 | 74,036 |
Casualty insurance reserves | 9,525 | 9,918 |
Corporate income taxes and other taxes | 25,156 | 9,027 |
Other | 19,564 | 25,815 |
Total accrued liabilities | $ 223,637 | $ 183,501 |
Credit Arrangements (Details)
Credit Arrangements (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Credit arrangements | ||
Total debt | $ 329,641 | $ 352,088 |
Unamortized debt issuance costs | (573) | (787) |
Total debt, net | 329,068 | 351,301 |
Less: current portion | (47,708) | (55,659) |
Long-term debt, net of current portion | 281,360 | 295,642 |
Term Loan | ||
Credit arrangements | ||
Total debt, net | 195,250 | 203,500 |
Commercial equipment notes | ||
Credit arrangements | ||
Total debt | 95,254 | 105,114 |
Mortgages | ||
Credit arrangements | ||
Total debt, net | $ 39,137 | $ 43,474 |
Credit Arrangements - Narrative
Credit Arrangements - Narrative (Details) $ in Thousands, $ in Millions | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2020CAD ($) | Dec. 31, 2019 | |
Credit arrangements | |||
Weighted average interest rate (as a percent) | 3.70% | 3.70% | 4.00% |
Credit Agreement | |||
Credit arrangements | |||
Potential increase per the agreement | $ 75,000 | ||
Available borrowing capacity | $ 150,000 | ||
Credit Agreement | Minimum | |||
Credit arrangements | |||
Restrictions on investments, change of control provisions and provisions as a percentage of total assets to be disposed off | 20.00% | ||
Credit Agreement | Revolving Credit Facility | |||
Credit arrangements | |||
Maximum borrowing capacity | $ 200,000 | ||
Borrowings outstanding | 0 | ||
Credit Agreement | Commercial letters of credit | |||
Credit arrangements | |||
Maximum borrowing capacity | 200,000 | ||
Letters of credit outstanding | 50,000 | ||
Term Loan | |||
Credit arrangements | |||
Maximum borrowing capacity | $ 220,000 | ||
Canadian Credit Facility | |||
Credit arrangements | |||
Maximum borrowing capacity | $ 4 | ||
Available borrowing capacity | 3.4 | ||
Canadian Credit Facility | Commercial letters of credit | |||
Credit arrangements | |||
Letters of credit outstanding | 0.6 | ||
Working Capital Credit Facility | |||
Credit arrangements | |||
Maximum borrowing capacity | 10 | ||
Borrowings outstanding | 0 | ||
Available borrowing capacity | $ 10 |
Derivative Instruments (Details
Derivative Instruments (Details) $ in Millions | Sep. 13, 2018USD ($) | Sep. 30, 2020USD ($)instrument | Dec. 31, 2019USD ($) |
Derivative Instruments | |||
Number of Instruments used for trading | instrument | 0 | ||
Interest rate swap | |||
Derivative Instruments | |||
Notional Amount | $ | $ 165 | $ 146.4 | $ 152.6 |
Notional amount interest rate | 75.00% | ||
Notional amount adjustment | 75.00% |
Derivative Instruments - Deriva
Derivative Instruments - Derivative contract and instruments (Details) - Interest rate swap - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Interest expense | |||||
Derivative Instruments | |||||
Amount of Gain Recognized on Derivatives | $ (11) | ||||
Amount of Loss Recognized on Derivatives | $ 920 | $ 6,262 | $ 5,428 | ||
Other long-term liabilities | |||||
Derivative Instruments | |||||
Liability Derivatives | $ 10,299 | $ 10,299 | $ 6,443 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Noncontrolling Interests | |||||
Revenue | $ 942,700 | $ 865,064 | $ 2,594,159 | $ 2,316,551 | |
Net income attributable to noncontrolling interests | 2 | 178 | 8 | 1,204 | |
Cash | 228,546 | 228,546 | $ 120,286 | ||
Accounts receivable | 494,453 | 494,453 | 404,911 | ||
Contract assets | 361,099 | 361,099 | 344,806 | ||
Accounts payable | 251,979 | 251,979 | 235,972 | ||
Contract liabilities | $ 256,021 | $ 256,021 | 192,397 | ||
Carlsbad | |||||
Noncontrolling Interests | |||||
Ownership interest (as a percent) | 50.00% | 50.00% | |||
Carlsbad | |||||
Noncontrolling Interests | |||||
Revenue | 541 | 4,792 | |||
Net income attributable to noncontrolling interests | $ 2 | 178 | $ 8 | 1,204 | |
Non-controlling interest distribution | 1,000 | 3,500 | 1,000 | 3,500 | |
Capital contributions | 1,000 | $ 3,500 | 1,000 | $ 3,500 | |
Cash | 451 | 451 | 2,124 | ||
Due to Primoris | 16 | 16 | |||
Accounts payable | 38 | ||||
Contract liabilities | $ 356 | $ 356 | $ 425 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 89 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | |
Restricted Stock Units | |||||
Stock-based compensation | |||||
Number of vested units | 290,729 | 290,729 | 290,729 | ||
Compensation expense recognized | $ 500 | $ 1,700 | $ 1,200 | ||
Period to recognize unrecognized compensation expense | 2 years 1 month 6 days | ||||
Equity Plan | |||||
Stock-based compensation | |||||
Units granted | 583,484 | ||||
Accrued dividend equivalent units | 2,652 | 2,652 | 2,652 | ||
Equity Plan | Restricted Stock Units | |||||
Stock-based compensation | |||||
Number of unvested units | 292,755 | 292,755 | 292,755 | ||
Compensation expense recognized | $ 300 | ||||
Unrecognized compensation expense | $ 3,600 | $ 3,600 | $ 3,600 | ||
Equity Plan | Restricted Stock Units | 2020 (remaining six months) | |||||
Stock-based compensation | |||||
Number of Units to Vest | 2,053 | 2,053 | 2,053 | ||
Equity Plan | Restricted Stock Units | 2021 | |||||
Stock-based compensation | |||||
Number of Units to Vest | 154,613 | 154,613 | 154,613 | ||
Equity Plan | Restricted Stock Units | 2022 | |||||
Stock-based compensation | |||||
Number of Units to Vest | 80,724 | 80,724 | 80,724 | ||
Equity Plan | Restricted Stock Units | 2023 | |||||
Stock-based compensation | |||||
Number of Units to Vest | 55,365 | 55,365 | 55,365 | ||
Executives | Equity Plan | Restricted Stock Units | |||||
Stock-based compensation | |||||
Units granted | 583,484 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Income Taxes | ||
Effective tax rate on income before provision for income taxes including income attributable to noncontrolling interests (as a percent) | 29.00% | 28.60% |
Effective tax rate on income before provision for income taxes and noncontrolling interests (as a percent) | 29.00% | 29.00% |
Federal statutory income tax rate (as a percent) | 21.00% | 21.00% |
Minimum period of statute of limitations of state and foreign jurisdictions | 3 years | |
Maximum period of statute of limitations of state and foreign jurisdictions | 5 years | |
Deferred FICA tax payments reserve | $ 27.6 |
Dividends and Earnings Per Sh_3
Dividends and Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Jul. 31, 2020 | May 01, 2020 | Feb. 21, 2020 | Oct. 31, 2019 | Aug. 02, 2019 | May 03, 2019 | Feb. 26, 2019 | Nov. 02, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Dividends and Earnings Per Share | ||||||||||||
Cash dividend declared (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.18 | $ 0.18 |
Numerator: | ||||||||||||
Net income attributable to Primoris | $ 43,941 | $ 35,648 | $ 73,163 | $ 55,382 | ||||||||
Denominator: | ||||||||||||
Weighted average shares for computation of basic earnings per share | 48,253 | 50,976 | 48,370 | 50,887 | ||||||||
Dilutive effect of shares issued to independent directors | 3 | 6 | 5 | 4 | ||||||||
Dilutive effect of restricted stock units | 318 | 233 | 337 | 319 | ||||||||
Weighted average shares for computation of diluted earnings per share | 48,574 | 51,215 | 48,712 | 51,210 | ||||||||
(loss) earnings per share attributable to Primoris: | ||||||||||||
Basic earnings per share (in dollars per share) | $ 0.91 | $ 0.70 | $ 1.51 | $ 1.09 | ||||||||
Diluted earnings per share (in dollars per share) | $ 0.90 | $ 0.70 | $ 1.50 | $ 1.08 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 89 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Feb. 20, 2020 | |
Common Stock | |||||
Net of forfeitures for tax withholdings | 54,635 | 122,319 | |||
Share repurchase plan | |||||
Aggregate purchase price up to which shares can be acquired under share repurchase program | $ 25 | ||||
Number of shares purchased under share repurchase program | 174,698 | 694,260 | |||
Amount paid for shares purchased under share repurchase program | $ 3.1 | $ 11.5 | |||
Amount paid for shares purchased and cancelled under share repurchase program (per share) | $ 17.80 | $ 16.50 | |||
LTR Plan | |||||
Common Stock | |||||
Shares of common stock issued under the long-term incentive plan | 34,524 | 114,106 | |||
Amount received in exchange for shares of common stock under a long term incentive plan | $ 0.6 | $ 1.8 | |||
Percentage of average market closing prices used in determining number of common stock that could be purchased by participants | 75.00% | 75.00% | |||
Equity Plan | |||||
Common Stock | |||||
Shares of common stock issued as a part of quarterly compensation of non-employee members of the Board of Directors | 36,281 | 30,155 | |||
Granted, Units | 583,484 | ||||
Accrued dividend equivalent units | 2,652 | 2,652 | 2,652 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense and Operating Lease Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Options to extend leases | true | ||||
Components of lease expense | |||||
Operating lease expense | $ 22,652 | $ 21,478 | $ 68,784 | $ 55,465 | |
Operating lease liabilities | |||||
Accrued liabilities | $ 75,779 | $ 75,779 | $ 74,036 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current | Accrued Liabilities, Current | Accrued Liabilities, Current | ||
Noncurrent operating lease liabilities, net of current portion | $ 151,777 | $ 151,777 | $ 171,225 | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Noncurrent operating lease liabilities, net of current portion | Noncurrent operating lease liabilities, net of current portion | Noncurrent operating lease liabilities, net of current portion | ||
Operating lease liabilities | $ 227,556 | $ 227,556 | $ 245,261 | ||
Maximum | |||||
Renewal term | 5 years | 5 years |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Under Non-cancelable Operating Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Future minimum lease payments under non-cancelable operating leases | ||
Total | $ 227,556 | $ 245,261 |
Commitments and Contingencies -
Commitments and Contingencies - Legal (Details) - USD ($) $ in Thousands | Feb. 25, 2015 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Commitments and contingencies | ||||||
Revenue | $ 942,700 | $ 865,064 | $ 2,594,159 | $ 2,316,551 | ||
Gross Profit | 123,681 | $ 108,421 | 272,458 | $ 241,412 | ||
JCG | North Texas Tollway Authority v. James Construction Group, LLC | ||||||
Commitments and contingencies | ||||||
Expected remediation cost on settlement | $ 17,000 | |||||
Remaining accrual balance | 3,000 | 3,000 | ||||
Expected remediation cost | 22,400 | |||||
Increase in liability | 2,000 | |||||
Remediation costs | 7,500 | |||||
JCG | North Texas Tollway Authority v. James Construction Group, LLC | Maximum | ||||||
Commitments and contingencies | ||||||
Agreed payments by second defendant in expected remediation costs toward settlement | $ 5,400 | |||||
Bonding | ||||||
Commitments and contingencies | ||||||
Bid and completion bonds issued and outstanding | $ 736,400 | $ 736,400 | $ 648,600 |
Reportable Segments (Details)
Reportable Segments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)segment | Sep. 30, 2019USD ($) | |
Segment reporting information | ||||
Number of reportable segments | segment | 5 | |||
Revenue | $ 942,700 | $ 865,064 | $ 2,594,159 | $ 2,316,551 |
% of Total Revenue | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Profit | $ 123,681 | $ 108,421 | $ 272,458 | $ 241,412 |
% of Revenue | 13.10% | 12.50% | 10.50% | 10.40% |
Power | ||||
Segment reporting information | ||||
Revenue | $ 212,557 | $ 200,657 | $ 566,226 | $ 518,210 |
% of Total Revenue | 22.60% | 23.20% | 21.80% | 22.40% |
Gross Profit | $ 15,705 | $ 15,525 | $ 41,090 | $ 58,890 |
% of Revenue | 7.40% | 7.70% | 7.30% | 11.40% |
Pipeline | ||||
Segment reporting information | ||||
Revenue | $ 214,380 | $ 133,590 | $ 695,462 | $ 405,647 |
% of Total Revenue | 22.70% | 15.40% | 26.80% | 17.50% |
Gross Profit | $ 28,045 | $ 19,657 | $ 71,567 | $ 46,204 |
% of Revenue | 13.10% | 14.70% | 10.30% | 11.40% |
Utilities | ||||
Segment reporting information | ||||
Revenue | $ 298,984 | $ 281,561 | $ 676,329 | $ 650,079 |
% of Total Revenue | 31.70% | 32.60% | 26.10% | 28.10% |
Gross Profit | $ 54,417 | $ 48,892 | $ 101,411 | $ 87,999 |
% of Revenue | 18.20% | 17.40% | 15.00% | 13.50% |
Transmission | ||||
Segment reporting information | ||||
Revenue | $ 114,221 | $ 128,784 | $ 326,953 | $ 382,581 |
% of Total Revenue | 12.10% | 14.90% | 12.60% | 16.50% |
Gross Profit | $ 13,718 | $ 4,836 | $ 28,875 | $ 21,664 |
% of Revenue | 12.00% | 3.80% | 8.80% | 5.70% |
Civil | ||||
Segment reporting information | ||||
Revenue | $ 102,558 | $ 120,472 | $ 329,189 | $ 360,034 |
% of Total Revenue | 10.90% | 13.90% | 12.70% | 15.50% |
Gross Profit | $ 11,796 | $ 19,511 | $ 29,515 | $ 26,655 |
% of Revenue | 11.50% | 16.20% | 9.00% | 7.40% |
Reportable Segments - Revenue a
Reportable Segments - Revenue and Total Assets by Geographic Area (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Revenues and total assets by geographic area | |||||
% of Revenue | 100.00% | 100.00% | 100.00% | 100.00% | |
Non-United States | |||||
Revenues and total assets by geographic area | |||||
% of Revenue | 3.50% | 5.30% | |||
% of total assets | 3.80% | 4.40% |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Nov. 05, 2020 | Jul. 31, 2020 | May 01, 2020 | Feb. 21, 2020 | Oct. 31, 2019 | Aug. 02, 2019 | May 03, 2019 | Feb. 26, 2019 | Nov. 02, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Cash Dividend | |||||||||||||
Cash dividend declared (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.18 | $ 0.18 | |
Subsequent Events | |||||||||||||
Cash Dividend | |||||||||||||
Cash dividend declared (in dollars per share) | $ 0.06 |