Primoris(US:PRIM)2022-03-01 20:50Financial Data and Key Metrics Changes - Full year revenue was $3.5 billion, essentially flat compared to last year, driven by a 21% increase in the Utility segment and a 15% increase in the Energy/Renewables segment [8] - Full year net income was $115.6 million, up 10% compared to last year, with adjusted net income at $143.3 million, up 22% [9] - EPS for the full year was $2.17, with non-GAAP EPS at $2.70, reflecting a significant increase despite the addition of 4.5 million shares from a secondary offering [10] Business Line Data and Key Metrics Changes - Utility segment revenue for Q4 was $442.9 million, a 22% increase year-over-year, with $392 million in new business signed during the quarter [11][16] - Energy/Renewables segment revenue increased to $369.3 million for Q4, an 11% increase, with $1.6 billion in new business announced during the quarter [18][21] - Pipeline Services segment revenue was $72.3 million for Q4, with a noted decrease due to project delays and expected recovery not anticipated until 2023 [25][26] Market Data and Key Metrics Changes - Total backlog at year-end was $4 billion, a record for the company, with fixed backlog at almost $2.5 billion, up 51% year-over-year [46] - The company is seeing increased bid activity in the Pipeline segment, with a 25% increase in field services bid activity [25][26] Company Strategy and Development Direction - The company is shifting its revenue mix from conventional energy to a growing proportion of renewable energy, electric grid transformation, and communications [49] - The focus is on pursuing smaller and moderate projects, particularly in the solar sector, with expectations for significant growth in distributed generation solar projects [23][49] Management's Comments on Operating Environment and Future Outlook - Management noted that the federal infrastructure bill will take time to translate into engineering and construction contracts, but there are opportunities in heavy civil projects and communications [51] - The company is well-positioned to meet the needs of evolving infrastructure, including energy transition and broadband expansion [54] Other Important Information - The company achieved a total reportable incident rate of 0.49 for the year, below the corporate target and industry standards [27] - Capital expenditures for the year were $133.8 million, with expectations for 2022 spending between $120 million to $140 million [43][45] Q&A Session Summary Question: Pipeline business revenue outlook - Management expects the pipeline revenue run rate to be lower in the first half of 2022, with a potential pickup in the second half [58] Question: Renewable segment backlog burn rate - Solar projects typically take 18 to 24 months to complete, affecting the burn rate of the backlog [60] Question: Interest expense expectations for 2022 - Forecasting $5 million to $6 million of interest expense each quarter, with a 1% increase in interest rates factored in [66] Question: Solar revenue expectations for 2022 - Solar revenue is expected to increase by 20% to 30% year-over-year [74] Question: Update on solar crew availability - The company is building a distributed generation group to pursue smaller solar projects, which will help grow the business [81] Question: Margin outlook for Utilities segment - Margins are expected to increase slightly in 2022, potentially by 0.5 percentage points [83]