Lake Forest-based Primoris Services Corp., the parent company of construction and engineering business ARB Inc., on Wednesday reported first quarter revenue of $128.7 million, a 24% decrease from a year earlier.
The company, which counts a market value of about $150 million, said the year-over-year decline was due to reduced refining sector business, the performance of one large engineering project during 2008 and uncertainties in the commercial credit and business environment.
Net income totaled $5.6 million in the first quarter, compared to pro forma net income of $6 million a year earlier, the company said.
Primoris has been working to increase its profitability during the down market, company officials said. Gross profit as a percentage of revenue rose to 11.4% in the quarter, from 9.6% in the prior year’s quarter.
The company expects that revenue during 2009 will decline from the record levels of the past two years and that bidding competition will increase, Chief Executive Brian Pratt said.
Primoris currently works on about 500 different projects, and has a $352.8 million backlog, about 80% of which should be recognized as revenue this year.
