DEF 14A: Primoris Services Corporation Announces 2024 Annual Meeting of Stockholders

Primoris Services Corporation will hold its 2024 Annual Meeting of Stockholders virtually on May 1, 2024, to vote on director elections, executive compensation, and the ratification of the independent auditor.

Summary

• Primoris Services Corporation will hold its 2024 Annual Meeting of Stockholders virtually on May 1, 2024, at 9:00 a.m. Central Time.
• Stockholders of record as of March 11, 2024, are entitled to vote.
• The meeting will address the election of nine directors, an advisory vote on executive compensation, and the ratification of Moss Adams LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024.
• The company encourages stockholders to vote prior to the meeting via the enclosed proxy card or online.
• Primoris experienced revenue growth for the eighth consecutive year, with 2023 revenue reaching $5.7 billion, a 29% increase from the previous year.
• The company's total backlog at the end of 2023 was $10.9 billion, a 20% increase from the end of 2022.
• Net income for 2023 was $126.1 million, or $2.33 per fully diluted share.
• The company's Total Recordable Incident Rate (TRIR) was 0.46, significantly lower than the industry average of 2.4.
• The company is focused on operational productivity, talent development, and a robust project mix.

Sentiment

Score: 8

Explanation: The document presents a positive outlook with strong revenue growth, backlog, and safety performance, although there are some concerns about declining net income and gross profit margins.

Positives

• Primoris achieved record revenue for the eighth consecutive year, reaching $5.7 billion in 2023.
• The company's backlog increased by approximately 20% to $10.9 billion.
• The company's TRIR was 0.46, significantly below the industry average of 2.4.
• The company announced approximately $1.8 billion in new utility-scale solar projects in 2023.
• Cash flow from operations was $198 million in 2023.

Negatives

• Net income declined slightly from the previous year due to higher interest expense and effective tax rate.
• Gross profit margins were slightly lower than the previous year due to higher costs on projects inherited from PLH and updating certain contracts to current market rates.

Risks

• The document mentions information technology security risks and cybersecurity risks.
• The company acknowledges that it cannot guarantee the identification or mitigation of all possible risks in advance.

Future Outlook

The company is well-positioned for growth in 2024 due to strong awards across many of its businesses.

Management Comments

• With a continued focus on operational productivity, talent development, and a robust project mix that aligns with market demands, Primoris is well-positioned to profitably grow as we facilitate the modernization of North Americas infrastructure.
• Through safe and consistent execution, our teams are delivering critical work that supports economic growth, spearheads a sustainable future, and provides shareholder value.

Industry Context

The company is involved in utility-scale solar, renewables, power delivery, communications, and transportation infrastructure, aligning with the broader trend of infrastructure modernization and the energy transition.

Comparison to Industry Standards

• The company's Total Recordable Incident Rate (TRIR) of 0.46 is significantly lower than the U.S. Bureau of Labor construction industry average of 2.4.
• The company competes with companies such as MasTec, Inc., MYR Group, Inc., Dycom Industries, Inc., Sterling Construction Company, Inc., and Granite Construction, Inc.

Related Party Transactions

• Since January 1, 2023, there have been no related party transactions that were required to be reported under the SECs related person transaction rules.

Stakeholder Impact

• The company aims to provide unmatched value to its clients, a safe and entrepreneurial culture to its employees, and innovation and excellence to its communities.
• The company believes that proactive oversight of Corporate Responsibility matters can improve a company's internal performance as well as have a positive impact on its relationship with all stakeholdersemployees, customers, investors, suppliers, and communities.

Next Steps

• Stockholders are encouraged to vote on the proposals outlined in the proxy statement.
• The company will hold its Annual Meeting of Stockholders on May 1, 2024.

Key Dates

Keywords

Annual Meeting, Proxy Statement, Stockholders, Corporate Governance, Executive Compensation, Board of Directors, Primoris, Infrastructure, Backlog, Revenue, Solar Projects, TRIR, Safety