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Related Party Transactions
 12 Months Ended
Dec. 31, 2011
Related Party Transactions  
Related Party Transactions

Note 20—Related Party Transactions

 

Primoris has entered into various transactions with Stockdale Investment Group, Inc. (“SIGI”).  Brian Pratt, our Chief Executive Officer, President and Chairman of the Board of Directors and our largest stockholder, also holds a majority interest in SIGI and is the chairman, president and chief executive officer and a director of SIGI.  John M. Perisich, our Senior Vice President and General Counsel, is secretary of SIGI.

 

Primoris leases properties located in Bakersfield, Pittsburg and San Dimas, California, and in Pasadena, Texas from SIGI. During the years ended December 31, 2011, 2010 and 2009, the Company paid $910, $892 and $834, respectively, in lease payments to SIGI for the use of these properties.

 

Prior to March 31, 2009, the Company leased an airplane from SIGI for business use. During the year ended December 31, 2009, the Company paid $70 in lease payments to SIGI for the use of the airplane. This lease commenced on May 1, 2004 and was terminated on March 31 2009, when SIGI sold the airplane.

 

The Company entered into a $6.1 million agreement in 2010 to construct a wastewater facility for Pluris, LLC, a private company in which Brian Pratt holds the majority interest. The transaction was reviewed and approved by the Audit Committee of the Board of Directors of the Company.  The project was completed in November 2011 and the Company recognized revenues of $5,680 in 2011.

 

Primoris leases a property from Roger Newnham, one of our stockholders and a manager at our subsidiary Born Heaters Canada. The property is located in Calgary, Canada. During the years ended December 31, 2011, 2010 and 2009 Primoris paid $277, $252 and $282, respectively, in lease payments to Mr. Newnham for the use of this property. The term of the lease is through December 31, 2014.

 

As a result of the November 2010 acquisition of Rockford, the Company entered into a lease for property from Lemmie Rockford, one of our stockholders.  The property is located in Toledo, Washington.  During the year ended December 31, 2011, Primoris paid $90 in lease payments to Mr. Rockford for the use of this property.  The lease expires on January 15, 2015.

 

The Company owns several non-consolidated investments and has recognized revenues on work performed for those joint ventures.  The Company recognized $0, $83 and $16,566 in related party revenues during the years ended December 31, 2011, 2010 and 2009, respectively, on the OMPP joint venture.  The Company also recognized $0, $472 and $0 in related party revenues for the years ended December 31, 2011, 2010 and 2009, respectively, from the St. - Bernard Levee Partners joint venture.  See Note 8— “Equity Method Investments”.