Primoris(US:PRIM)2024-02-27 19:43Financial Data and Key Metrics Changes - The company reported a revenue increase to $5.7 billion, up 29% from 2022, driven largely by the Energy segment, which was up 39% [74] - Fourth quarter revenue was $1.5 billion, an increase of $186 million or 14% compared to the prior year [57] - Gross profit for the fourth quarter improved slightly to approximately $157 million, but gross margins declined to 10.3% from the prior year [57][58] Business Line Data and Key Metrics Changes - In the Utility segment, revenue was essentially flat compared to the prior year, with gross profit down to approximately $43 million, a decrease of 39% [84] - The Energy segment revenue increased by $196 million compared to the prior year, with gross profit increasing over 36% to $114 million [58][86] - Non-MSA revenue in the Utility segment increased by more than 70% from the previous year, indicating a shift towards project work [50] Market Data and Key Metrics Changes - The company booked $7.5 billion of work during the year, resulting in a total backlog of $10.9 billion, an increase of approximately 20% from 2022 [48][91] - The renewables business closed the year with more than $2.4 billion in backlog, reflecting strong demand despite industry challenges [53] Company Strategy and Development Direction - The company aims to grow its non-MSA utilities revenue to 30% to 40% of segment revenue, specifically targeting power delivery [31] - There is a focus on improving operational performance and profitability by shifting towards higher-margin business lines and better contract terms [67][105] - The company plans to expand its project management teams from 15 to 17 by the end of the year to meet growing demand [54] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future potential of renewables and the overall market, citing ongoing investments in infrastructure services [55][80] - The company expects operating cash flows for 2024 to be around $150 million, indicating a focus on improving cash conversion and working capital [9][68] - Management anticipates Utility segment margins in the 9% to 11% range for the full year, with Q1 expected to be in the 5% to 7% range [92] Other Important Information - The effective tax rate for 2023 was 29%, expected to remain similar in 2024 [61] - The company invested $20.5 million in CapEx during the fourth quarter, with a total of $103 million for the full year [62] Q&A Session Summary Question: What is the revenue guidance for both segments? - The company expects around $6 billion in revenue for 2024, with approximately $2.3 billion from Utilities and $3.7 billion from Energy [114] Question: What is the expected performance of the Utilities segment? - Utilities segment margins are expected to improve, reaching high-single-digit margins as the year progresses [117] Question: What was the renewables revenue for the full year in 2023? - The renewables revenue for 2023 was a little over $1.3 billion, with expectations for about 20% growth in 2024 [118][119]