Primoris Services Corporation Announces over $325M in New Contracts
Primoris Services Corporation (NASDAQ: PRIM) (“Primoris” or “Company”) today announced new contracts and work authorizations totaling approximately $328 million entered into since the start of the second calendar quarter. These contracts are in addition to those totaling over $210 million previously announced during the second quarter. The new contracts and work authorizations include work in the following market segments: power, pipeline, gas utility, industrial, highway/infrastructure, water/wastewater, and parking structure projects.
In the Engineering Segment:
OnQuest successfully acquired twelve new work awards at locations from Hong Kong to Trinidad and from Calgary to Texas and Louisiana in North America. These awards, valued at $10 million, involve primarily the OnQuest expertise for process reformers, heaters, and furnaces. The awards also include two projects for a new OnQuest subsidiary, Primoris Structural Forensics Group (PSFG), related to refinery infrastructure rehabilitation in Louisiana. In the West Construction Services Segment:
The ARB Underground Group secured over $37.5 million in new contracts and work authorizations, all of which are slated to be completed by the end of 2013. This new work consists of: approximately $7.3 million in new work authorizations for natural gas service, retrofit, and integrity work in California that is not related to the previously announced PG&E PSEP contract; $14.9 million for gas and electric distribution work; and $15.3 million for other pipeline-related construction projects. The ARB Industrial Group was awarded approximately $41.1 million of contracts, the majority of which is associated with new thermal solar power plant construction in Southern California. The work has begun and should be complete by March 2014. ARB Structures was awarded a new contract totaling approximately $10 million to construct a concrete parking structure in Southern California. This project is slated for completion in mid-2014. Q3 Contracting secured $14.5 million of new contracts involving utility distribution and restoration work. This work began in the second quarter and will be completed by year end. Rockford Corporation was awarded $19.5 million in contracts for new pipeline construction projects primarily located in the Pennsylvania and West Virginia regions. All of this work should be completed during 2013. In the East Construction Services Segment:
James Construction Group was awarded new contract work totaling approximately $166 million, which includes: In Louisiana, the James Heavy Civil group was awarded $18.5 million for new highway construction projects. The work on these contracts is anticipated to extend in to 2015; In Texas, the James Heavy Civil group was awarded $36.9 million for highway construction projects near Temple, Texas and in the greater Houston area. The completion dates for these projects will extend over the next two years; In Mississippi, the James Heavy Civil group was awarded a $69 million contract for a Design/Build highway and bridge project. This project was awarded in early July and is anticipated to extend in to 2015; The James Industrial group was awarded over $32 million for civil and mechanical construction at industrial facilities in South Louisiana and Southeast Texas. The Cardinal Mechanical division also secured a $5 million contract for utility work in San Antonio. All of this work is scheduled for the next three quarters with completion in early 2014; and The James Infrastructure and Maintenance group was awarded over $4.5 million for landfill, power plant and mine support projects in Louisiana, Florida, and Texas. This work should be completed by year end. Cardinal Contractors secured approximately $2.8 million of new work in Florida, consisting of water/wastewater work and sewer system lining work. This work should be complete by the end of March 2014. Sprint Pipeline Services acquired roughly $27.2 million in new contract work from midstream oil & gas companies for various pipeline related projects. The new work includes both capital projects and Master Service Agreement work from the panhandle of Texas to the Eagle Ford Shale region of South Texas. All of the new work will be completed during 2014. ABOUT PRIMORIS
Founded in 1946, Primoris, through various subsidiaries, has grown to become one of the largest construction service enterprises in the United States. Serving diverse end markets, Primoris provides a wide range of construction, fabrication, maintenance, replacement, water and wastewater, and engineering services to major public utilities, petrochemical companies, energy companies, municipalities, and other customers. Since December 2009, Primoris has tripled its revenue and the Company's national footprint now extends from Florida, along the Gulf Coast, through California, into the Pacific Northwest and Canada. For additional information, please visit www.prim.com.
FORWARD LOOKING STATEMENTS
This press release contains certain forward-looking statements, including with regard to the Company's future performance. Words such as "estimated," "believes," "expects," "projects," “may,” and "future" or similar expressions are intended to identify forward-looking statements. Forward-looking statements inherently involve risks and uncertainties, including without limitation, those detailed in the "Risk Factors" section and other portions of our Annual Report on Form 10-K, our Form 10-Q, and other filings with the Securities and Exchange Commission. Primoris does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
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