Primoris Services Corporation Releases Statement on Utility Customer
January 16 2019 - 7:30AM
Primoris Services Corporation (NASDAQ Global Select:
PRIM) (“Primoris” or “Company”) today released the
following statement regarding a valued utility customer’s pending
Chapter 11 reorganization.
- Primoris has a long relationship with this utility customer and
we are sympathetic to their current challenges. We remain
committed to working with them through their restructuring process
and helping to provide safe and reliable utility service to their
clients. Primoris is familiar with this process, having
worked with the customer through their 2001 restructuring.
- As of December 31, 2018, the utility customer comprised
approximately 1% of Primoris’ total accounts receivable. In
addition to accounts receivable, there is approximately $36 million
in work in progress billings underway. The customer continues
to pay us in a timely manner within payment terms, and Primoris
anticipates full recovery of these outstanding balances.
While we do not currently expect a material impact to our financial
performance as a result of this customer’s recent announcement, we
will closely monitor our current and future potential exposure, and
will continue to report our financial position in a conservative
manner.
- While Primoris has yet to report fourth quarter and full year
2018 results, the customer accounted for less than 9% of revenues
during the first three quarters of 2018. While we value our
long history with this customer, Primoris’ exposure to diverse end
markets limits the potential for any one client or job to have a
material adverse impact on our operations.
ABOUT PRIMORISFounded in 1960,
Primoris, through various subsidiaries, has grown to become one of
the largest publicly traded specialty construction and
infrastructure companies 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, state departments of
transportation, and other customers. Growing both organically and
through acquisitions, the Company’s national footprint now extends
nearly nationwide and into 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 known and unknown risks, uncertainties, and
other factors, including without limitation, those described in
this press release and those detailed in the "Risk Factors" section
and other portions of our Annual Report on Form 10-K for the period
ended December 31, 2017, and other filings with the Securities and
Exchange Commission. Given these uncertainties, you should
not place undue reliance on forward-looking statements.
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.
Company
Contact
Kate TholkingVice President, Investor Relations(214)
740-5615ktholking@prim.com
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