01—Abstract
Summary
Summary of the 10-K filed March 2, 2009. Cited figures are marked; the original filing is the authoritative source.
Quanta Services, Inc. (PWR) reported significant revenue growth in 2008, reaching $3.78 billiona, driven by strong performance in electric power and gas infrastructure services.
The company's acquisition of InfraSource Services, Inc. in August 2007 significantly expanded its scale and service offerings. Despite the macroeconomic challenges of 2008, Quanta demonstrated resilience, with increased gross profit and operating income due to higher revenues and improved margins in certain areas.
The company maintains a strong financial position with substantial liquidity and manageable debt. Looking ahead, Quanta is well-positioned to benefit from anticipated infrastructure upgrades, renewable energy projects, and government stimulus spending, although it acknowledges potential near-term impacts from the economic downturn on customer spending.
02—Key points
Key Highlights
- Consolidated revenues reached $3.78 billion in 2008, a 42.3% increase year-over-year, primarily driven by the Infrastructure Services segment.
- Gross profit increased by 48.1% to $634.9 million, with gross margin improving to 16.8% from 16.1% in the prior year.
- Operating income saw substantial growth, rising 70.6% to $289.2 million.
- The company maintained a strong liquidity position, with $437.9 million in cash and cash equivalents and $929.7 million in working capital as of December 31, 2008.
- Long-term debt remained manageable at $143.8 million, with ample availability under its $475.0 million credit facility.
- The InfraSource acquisition, completed in August 2007, significantly contributed to revenue and operational scale.
- The company sees significant future opportunities in electric power transmission, distribution, renewable energy infrastructure, and telecommunications network build-outs.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2008, Quanta Services kept $0.04.
- Revenue$3.78B100.0%
- Cost of revenue−$3.15B83.2%
- Gross profit$634.9M16.8%
- Operating costs−$345.7M9.1%
- Operating income$289.2M7.6%
- Interest, other & tax−$131.6M3.5%
- Net income$157.6M4.2%
Where FY2008 revenue went
$3.78B- Cost of revenue: $3.15B, 83% of revenue
- Net income: $157.6M, 4.2% of revenue
- SG&A: $309.4M, 8.2% of revenue
- Other operating costs: $36.3M, 1.0% of revenue
- Interest, other & tax: $131.6M, 3.5% of revenue
Kept 4.2% as net incomeNet income $157.6M · 4.2%Other operating costs $36.3M · 1.0%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2008filed March 2, 2009Financial Statements
FY2008 against FY2007
| Line item | FY2008FY2007 | Change |
|---|---|---|
| Revenue | $3.78B$2.66B | +42.3% |
| Gross Profit | $634.87M$428.75M | +48.1% |
| SG&A Expenses | $309.40M$240.51M | +28.6% |
| Operating Income | $289.17M$169.48M | +70.6% |
| Interest Expense | $32.00M$39.33M | −18.6% |
| Net Income | $157.56M$124.70M | +26.4% |
| EPS (Basic) | $0.89$0.91 | −2.2% |
| EPS (Diluted) | $0.87$0.88 | −1.1% |
| Shares Outstanding (Basic) | 178.03M136.89M | +30.1% |
| Shares Outstanding (Diluted) | 196.97M161.52M | +22.0% |
05—Questions
Frequently Asked Questions
What was Quanta Services' revenue and profitability performance in 2008?
In 2008, Quanta Services reported consolidated revenues of $3.78 billion, representing a significant increase of 42.3% from 2007. Gross profit rose by 48.1% to $634.9 million, and operating income grew by 70.6% to $289.2 million, reflecting strong demand and operational improvements.
How did the InfraSource acquisition impact Quanta Services?
The acquisition of InfraSource Services, Inc. in August 2007 was a major event for Quanta. It significantly expanded the company's scale, service offerings, and geographic reach, particularly in the electric power, gas, and telecommunications industries. The acquisition contributed substantially to the revenue and operational improvements seen in 2008.
What are the key growth drivers and future opportunities for Quanta Services?
Quanta Services is poised to benefit from several key trends, including the ongoing need for electric power transmission and distribution infrastructure upgrades, the growth in renewable energy projects (wind and solar), and investments in telecommunications networks. The company also anticipates increased demand from government stimulus programs like the American Recovery and Reinvestment Act (ARRA).
What is the company's financial health and debt situation?
As of December 31, 2008, Quanta Services had a strong liquidity position with $437.9 million in cash and cash equivalents and $929.7 million in working capital. Its long-term debt was $143.8 million, and it had substantial borrowing capacity under its credit facility, indicating a healthy financial standing.
06—Continue