Attached files
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8-K - 8-K - Primoris Services Corp | a14-23946_18k.htm |
EX-99.1 - EX-99.1 - Primoris Services Corp | a14-23946_1ex99d1.htm |
Exhibit 99.2
Primoris Services Corporation
Segment Realignment September 2014
Amounts in thousands
For a number of years and through the end of the second quarter 2014, the Company segregated its business into three operating segments: the East Construction Services segment, the West Construction Services segment and the Engineering segment. In the third quarter 2014, the Company reorganized its business segments to match the change in the Companys internal organization and management structure. The segment changes during the quarter reflect the focus of our new chief operating officer on the services we provide to our energy related customers, primarily in the Gulf Coast area, (the Energy segment) and a continuing geographic view for the West and new East segments. The chief operating officer regularly reviews the operating and financial performance based on these revised segments. The operating segments include: The West Construction Services segment (West segment), which is unchanged from the previous segment, the East Construction Services segment (East segment), which is realigned from the previous East Construction Services segment and the Energy segment (which includes the previous Engineering segment).
The purpose of this document is to report the revenue and gross profit for the quarterly periods of 2013 and 2014 through September 30, 2014 for the reclassified segments.
The following is a brief description of each of the Companys reportable segments and their operations.
The West segment consists of businesses headquartered primarily in the western United States and includes the underground and industrial operations and construction services performed by ARB, ARB Structures, Inc., Rockford, Alaska Continental Pipeline, Inc., Q3C, Primoris Renewables, LLC, Juniper Rock Corporation, Stellaris, LLC and Vadnais, acquired in June 2014. Most of the entities perform work primarily in California; however, Rockford operates throughout the United States and Q3C operates in Colorado and the upper Midwest United States. The Blythe Power Constructors joint venture is also included as a part of the segment. The West segment consists of businesses headquartered primarily in the western United States.
The East segment includes the JCG Heavy Civil division, the JCG Infrastructure and Maintenance division, BW Primoris and Cardinal Contractors, Inc. construction business, located primarily in the southeastern United States and in the Gulf Coast region of the United States and includes the heavy civil construction and infrastructure and maintenance operations.
The Energy segment operations are located primarily in the southeastern United States and in the Gulf Coast region of the United States. The segment includes the operations of the PES pipeline and gas facility construction and maintenance operations, the JCG Industrial division and the newly acquired Surber and Ram-Fab operations. Additionally, the segment includes the OnQuest, Inc. and OnQuest Canada, ULC operations for the design and installation of high-performance furnaces and heaters for the oil refining, petrochemical and power generation industries.
The following table shows our major operating subsidiaries and their reporting segment:
Subsidiary |
|
Operating Segment |
|
Prior Operating Segment |
|
ARB, Inc. (ARB) |
|
West |
|
West |
|
ARB Structures, Inc. |
|
West |
|
West |
|
Q3 Contracting, Inc. (Q3C) |
|
West |
|
West |
|
Rockford Corporation (Rockford) |
|
West |
|
West |
|
Stellaris, LLC. |
|
West |
|
West |
|
Vadnais Trenchless Services, Inc. (Vadnais); acquired in 2014 |
|
West |
|
West |
|
Silva Group (Silva) |
|
East |
|
East |
|
Cardinal Contractors, Inc. |
|
East |
|
East |
|
BW Primoris, LLC (BWP) |
|
East |
|
East |
|
James Construction Group, LLC (JCG): |
|
|
|
|
|
JCG Heavy Civil Division |
|
East |
|
East |
|
JCG Infrastructure and Maintenance Division |
|
East |
|
East |
|
JCG Industrial Division |
|
Energy |
|
East |
|
Primoris Energy Services Corporation (PES) |
|
Energy |
|
East |
|
OnQuest, Inc. |
|
Energy |
|
Engineering |
|
OnQuest, Canada, ULC (Born Heaters Canada, ULC prior to 2013) |
|
Energy |
|
Engineering |
|
The following tables provide a summary of the revenues and gross profit for each quarterly period during the 2014 year:
|
|
1st Quarter |
|
2nd Quarter |
|
3rd Quarter |
|
9 Months YTD |
| ||||
|
|
(Unaudited) |
| ||||||||||
|
|
|
|
|
|
|
|
|
| ||||
Revenues |
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
| ||||
West segment |
|
$ |
234,027 |
|
$ |
224,391 |
|
$ |
289,405 |
|
$ |
747,823 |
|
East segment |
|
106,970 |
|
118,554 |
|
135,450 |
|
360,974 |
| ||||
Energy segment |
|
129,077 |
|
172,346 |
|
188,382 |
|
489,805 |
| ||||
|
|
$ |
470,074 |
|
$ |
515,291 |
|
$ |
613,237 |
|
$ |
1,598,602 |
|
|
|
1st Quarter |
|
2nd Quarter |
|
3rd Quarter |
|
9 Months YTD |
| ||||
|
|
(Unaudited) |
| ||||||||||
|
|
|
|
|
|
|
|
|
| ||||
Gross Profit |
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
| ||||
West segment |
|
$ |
31,674 |
|
$ |
37,809 |
|
$ |
46,240 |
|
$ |
115,723 |
|
East segment |
|
6,758 |
|
8,727 |
|
9,110 |
|
24,595 |
| ||||
Energy segment |
|
11,325 |
|
14,658 |
|
20,123 |
|
46,106 |
| ||||
|
|
$ |
49,757 |
|
$ |
61,194 |
|
$ |
75,473 |
|
$ |
186,424 |
|
The following tables provide a summary of the revenues and gross profit for each quarterly period during the 2013 year:
|
|
1st Quarter |
|
2nd Quarter |
|
3rd Quarter |
|
4th Quarter |
|
12 Months YTD |
| |||||
|
|
(Unaudited) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Revenues |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
West segment |
|
$ |
207,686 |
|
$ |
258,194 |
|
$ |
362,362 |
|
$ |
323,191 |
|
$ |
1,151,433 |
|
East segment |
|
96,682 |
|
101,998 |
|
117.537 |
|
114,221 |
|
430,438 |
| |||||
Energy segment |
|
105,627 |
|
84,821 |
|
71,434 |
|
100,467 |
|
362,349 |
| |||||
|
|
$ |
409,995 |
|
$ |
445,013 |
|
$ |
551,333 |
|
$ |
537,879 |
|
$ |
1,944,220 |
|
|
|
1st Quarter |
|
2nd Quarter |
|
3rd Quarter |
|
4th Quarter |
|
12 Months YTD |
| |||||
|
|
(Unaudited) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Gross Profit |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
West segment |
|
$ |
28,750 |
|
$ |
41,926 |
|
$ |
62,520 |
|
$ |
57,551 |
|
$ |
190,747 |
|
East segment |
|
6,917 |
|
8,131 |
|
4,527 |
|
4,734 |
|
24,309 |
| |||||
Energy segment |
|
10,429 |
|
9,480 |
|
8,418 |
|
12,632 |
|
40,959 |
| |||||
|
|
$ |
46,096 |
|
$ |
59,537 |
|
$ |
75,465 |
|
$ |
74,917 |
|
$ |
256,015 |
|