01—Abstract
Summary
Summary of the 10-K filed March 1, 2010. Cited figures are marked; the original filing is the authoritative source.
Quanta Services, Inc. reported revenues of approximately $3.32 billiona for the year ended December 31, 2009.
The company is a leading national provider of specialty contracting services for the electric power, natural gas, oil, and telecommunications industries. The Electric Power Infrastructure Services segment was the largest contributor to revenue, accounting for 62%b of the total. The company experienced a revenue decrease of 12.2% compared to 2008, largely due to reduced capital spending by customers amidst the ongoing economic downturn.
Despite the revenue decline, the company saw an improvement in gross margin as a percentage of revenue to 17.9%c from 16.8% in the prior year, driven by higher-margin electric transmission services and improved telecommunications margins. Key strategic moves include the acquisition of Price Gregory Services, Inc. on October 1, 2009, which significantly expanded its natural gas and pipeline operations.
The company is focused on expanding its service portfolio, enhancing geographic capabilities, and maintaining financial strength. Management anticipates near-term challenges due to economic conditions but remains optimistic about long-term opportunities driven by infrastructure upgrades, renewable energy initiatives, and technological advancements in the telecommunications sector.
02—Key points
Key Highlights
- Consolidated revenues of $3.32 billion for the year ended December 31, 2009, a decrease of 12.2% from 2008.
- Electric Power Infrastructure Services segment remains the largest revenue contributor at 62% of total revenue.
- Acquisition of Price Gregory Services, Inc. on October 1, 2009, significantly expanding natural gas and pipeline operations.
- Gross margin improved to 17.9% in 2009 from 16.8% in 2008, driven by higher-margin services and improved segment performance.
- Telecommunications Infrastructure Services segment experienced a significant revenue decrease of 29.5% due to reduced fiber build-out initiatives.
- Emergency restoration services revenue decreased significantly in 2009 compared to 2008 due to fewer major weather events.
- Company is managing cash effectively, with $699.6 million in cash and cash equivalents at year-end 2009.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2009, Quanta Services kept $0.05.
- Revenue$3.32B100.0%
- Cost of revenue−$2.72B82.1%
- Gross profit$593.5M17.9%
- Operating costs−$351.4M10.6%
- Operating income$242.1M7.3%
- Interest, other & tax−$80.0M2.4%
- Net income$162.2M4.9%
Where FY2009 revenue went
$3.32B- Cost of revenue: $2.72B, 82% of revenue
- Net income: $162.2M, 4.9% of revenue
- SG&A: $312.4M, 9.4% of revenue
- Other operating costs: $39.0M, 1.2% of revenue
- Interest, other & tax: $80.0M, 2.4% of revenue
Kept 4.9% as net incomeNet income $162.2M · 4.9%Other operating costs $39.0M · 1.2%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2009filed March 1, 2010Financial Statements
FY2009 against FY2008
| Line item | FY2009FY2008 | Change |
|---|---|---|
| Revenue | $3.32B$3.78B | −12.2% |
| Gross Profit | $593.49M$634.87M | −6.5% |
| SG&A Expenses | $312.41M$309.40M | +1.0% |
| Operating Income | $242.12M$289.17M | −16.3% |
| Interest Expense | $11.27M$32.00M | −64.8% |
| Net Income | $162.16M$157.56M | +2.9% |
| EPS (Basic) | $0.81$0.89 | −9.0% |
| EPS (Diluted) | $0.81$0.87 | −6.9% |
| Shares Outstanding (Basic) | 200.73M178.03M | +12.8% |
| Shares Outstanding (Diluted) | 201.31M196.97M | +2.2% |
05—Questions
Frequently Asked Questions
What were Quanta Services' primary business segments and their revenue contributions in 2009?
Quanta Services operated across four reportable segments: Electric Power Infrastructure Services (62% of revenue), Natural Gas and Pipeline Infrastructure Services (24%), Telecommunications Infrastructure Services (11%), and Fiber Optic Licensing (3%). The Electric Power segment was the largest contributor.
How did the economic downturn impact Quanta's financial performance in 2009?
The economic downturn led to reduced capital spending by customers, resulting in a 12.2% decrease in consolidated revenues to $3.32 billion. Specifically, the Telecommunications segment saw a significant revenue decline due to slowed fiber deployment.
What were the key strategic initiatives or acquisitions undertaken in 2009?
The most significant strategic move was the acquisition of Price Gregory Services, Inc. on October 1, 2009, which substantially bolstered the company's Natural Gas and Pipeline Infrastructure Services segment. The company also completed three other smaller acquisitions to enhance its capabilities in electric, gas, and telecommunications services.
Did Quanta Services' profitability improve in 2009 despite lower revenues?
Yes, the company improved its gross margin as a percentage of revenue to 17.9% in 2009 from 16.8% in 2008. This improvement was attributed to a favorable shift in revenue mix towards higher-margin services, such as electric transmission, and improved performance in the telecommunications segment.
06—Continue