1361538--3/11/2010--Primoris_Services

related topics

{stock, price, share}

{customer, product, revenue}

{cost, operation, labor}

{acquisition, growth, future}

{cost, contract, operation}

{stock, price, operating}

{cost, regulation, environmental}

{tax, income, asset}

{capital, credit, financial}

{operation, international, foreign}

{regulation, government, change}

{condition, economic, financial}

{financial, litigation, operation}

{personnel, key, retain}

{loss, insurance, financial}

{debt, indebtedness, cash}

{competitive, industry, competition}

{control, financial, internal}

{regulation, change, law}

Risks Related to Our Business and Operations Our financial and operating results may vary significantly from quarter-to-quarter and year-to-year, which may adversely affect the price and value of our common stock. Our business is labor intensive. We depend on key personnel and we may not be able to operate and grow our business effectively if we lose the services of any of our key personnel or are unable to attract qualified and skilled personnel in the future. This could lead to a decrease in our overall competitiveness, resulting in an adverse effect on our business, operating results, financial condition and value of our common stock. We may be unsuccessful at generating internal growth, which may affect our ability to expand our operations or grow our business, which may cause an adverse effect on our financial condition, results of operations and cash flows. Demand for our services may decrease during an economic recession, and such lack of demand may adversely affect our business. We derive a significant portion of our revenues from a few customers, and the loss of one or more of these customers could have significant effects on our revenues, resulting in adverse effects on our financial condition, results of operations and cash flows. Our actual cost may be greater than expected in performing our fixed-price and unit-price contracts, causing us to realize significantly lower profits on our projects, which would have an adverse effect on our financial condition, results of operations and cash flows. We may lose business to competitors through the competitive bidding processes, which could have an adverse effect on our financial condition, results of operations and cash flows. We may pay our suppliers and subcontractors before receiving payment from our customers for the related services, we could experience an adverse affect on our financial condition, results of operations and cash flows. Our unionized workforce may commence work stoppages, which could adversely affect our operations. Our business growth could outpace the capability of our internal infrastructure and may prohibit us from expanding our operations or execute our business plan, which failures may adversely affect the value of our common stock. A significant portion of our business depends on our ability to provide surety bonds and we may be unable to compete for or work on certain projects if we are not able to obtain the necessary surety bonds, which could result in an adverse affect on our financial condition, results of operations and cash flows. Our bonding requirements may limit our ability to incur indebtedness, which would limit our ability to refinance our existing credit facilities or to execute our business plan, and potentially result in an adverse effect on our business. Our business may be affected by difficult work sites and environments, which may adversely affect our ability to procure materials and labor, which may adversely affect our overall business. Our results of operations could be adversely affected as a result of goodwill impairments. During the ordinary course of our business, we may become subject to lawsuits or indemnity claims, which could materially and adversely affect our business and results of operations. We may incur liabilities or suffer negative financial or reputational impacts relating to occupational health and safety matters. Opportunities within the government arena could subject us to increased governmental regulation and costs. Inability to perform our obligations under Engineer, Procure and Construct ( EPC ) contracts may lead to higher costs, which would adversely affect our business. We require subcontractors to assist us in providing certain services and we may be unable to retain the necessary subcontractors to complete certain projects resulting in an adverse affect in our business. Backlog may not be realized or may not result in revenues or profits, which failure in realizing revenues or profits could result in an adverse effect on our financial condition, results of operations and cash flows. Our use of percentage-of-completion accounting could result in a reduction or elimination of previously reported profits, which may result in an adverse affect on our financial condition and results of operations. Our financial results are based upon estimates and assumptions that may differ from actual results and such differences between the estimates and actual results may have an adverse affect on our financial condition, results of operations and cash flows. The timing of new contracts may result in unpredictable fluctuations in our cash flow and profitability, which could adversely affect our business. If we fail to integrate acquisitions successfully, we may experience operational challenges and risk which may have an adverse effect on our business and results of operations. We may not be successful in continuing to meet the requirements of the Sarbanes-Oxley Act of 2002. Our business may be materially adversely impacted by regional, national and/or global requirements to significantly limit or reduce greenhouse gas emissions in the future. Our international operations expose us to legal, political and economic risks in different countries as well as currency exchange rate fluctuations that could harm our business and financial results. Risks Related to our Common Stock Our common stock is subject to potential dilution to our stockholders. The NASDAQ Global Market may delist our securities from quotation on its exchange which could limit investors ability to make transactions in our securities and subject us to additional trading restrictions. Our securities on the NASDAQ Global Market are deemed to be shares of a controlled company within the meaning of the NASDAQ Global Market listing requirements and, as a result, we will be exempt from certain corporate governance requirements, which may result in reduced corporate governance protections to our stockholders. Three of our director-officers are significant stockholders, which will make it possible for them to have significant influence over the outcome of all matters submitted to our stockholders for approval and which influence may be alleged to conflict with our interests and the interests of our other stockholders.

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1361538--3/11/2010--Primoris_Services_CORP