01—Abstract
Summary
Summary of the 10-K filed February 29, 2012. Cited figures are marked; the original filing is the authoritative source.
Quanta Services, Inc. (PWR) reported robust revenue growth in its 2011 10-K filing, driven primarily by its Electric Power Infrastructure Services segment, which accounted for 66% of its $4.62 billiona in consolidated revenues.
The company highlighted increased project awards and demand for its services, particularly in the latter half of the year, indicating a positive trend following economic challenges. Acquisitions played a significant role in expanding Quanta's capabilities and geographic reach, with notable additions in the electric power sector in Canada and the U.S., as well as a horizontal directional drilling company in Australia. While the Natural Gas and Pipeline Infrastructure Services segment experienced a revenue decline, the company is focusing on diversification within this segment, particularly in midstream gathering systems and pipeline integrity services.
Looking ahead, Quanta anticipates continued strength in its Electric Power segment due to ongoing grid modernization and renewable energy project development. The Telecommunications segment is expected to benefit from broadband deployment initiatives and 4G/LTE network build-outs. The company also emphasized its strong financial position and ongoing strategic evaluation of acquisitions to fuel future growth.
02—Key points
Key Highlights
- Consolidated revenues reached $4.62 billion, a 17.6% increase year-over-year, primarily driven by the Electric Power Infrastructure Services segment.
- The Electric Power Infrastructure Services segment saw significant revenue growth (47.9%) due to increased customer capital spending and contributions from acquisitions.
- The Natural Gas and Pipeline Infrastructure Services segment experienced a revenue decline of 27.0%, attributed to fewer and smaller transmission projects.
- Quanta completed five acquisitions in 2011, enhancing its capabilities in electric power infrastructure services in Canada and the U.S., and expanding its international presence with a drilling services company in Australia.
- The Telecommunications Infrastructure Services segment revenue grew by 22.6%, supported by stimulus-funded broadband projects and fiber-to-the-cell site initiatives.
- The company reported a decrease in gross margin to 13.4% from 16.1% in the prior year, impacted by project cost increases, adverse weather, and a pension plan withdrawal charge within the Natural Gas and Pipeline segment.
- Quanta maintained a strong balance sheet with $315.3 million in cash and cash equivalents and $984.1 million in working capital as of December 31, 2011.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2011, Quanta Services kept $0.03.
- Revenue$4.19B100.0%
- Cost of revenue−$3.63B86.6%
- Gross profit$561.7M13.4%
- Operating costs−$366.9M8.7%
- Operating income$194.8M4.6%
- Interest, other & tax−$62.3M1.5%
- Net income$132.5M3.2%
Where FY2011 revenue went
$4.19B- Cost of revenue: $3.63B, 87% of revenue
- Net income: $132.5M, 3.2% of revenue
- SG&A: $337.8M, 8.1% of revenue
- Other operating costs: $29.0M, 0.7% of revenue
- Interest, other & tax: $62.3M, 1.5% of revenue
Kept 3.2% as net incomeNet income $132.5M · 3.2%Other operating costs $29.0M · 0.7%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2011filed February 29, 2012Financial Statements
FY2011 against FY2010
| Line item | FY2011FY2010 | Change |
|---|---|---|
| Revenue | $4.19B$3.63B | +15.5% |
| Gross Profit | $561.72M$589.52M | −4.7% |
| SG&A Expenses | $337.83M$307.88M | +9.7% |
| Operating Income | $194.84M$243.99M | −20.1% |
| Interest Expense | $1.80M$4.90M | −63.2% |
| Net Income | $132.51M$153.18M | −13.5% |
| EPS (Basic) | $0.62$0.73 | −15.1% |
| EPS (Diluted) | $0.62$0.72 | −13.9% |
| Shares Outstanding (Basic) | 212.65M210.05M | +1.2% |
| Shares Outstanding (Diluted) | 213.17M211.80M | +0.6% |
05—Questions
Frequently Asked Questions
What was Quanta Services' total revenue for the year ended December 31, 2011?
Quanta Services reported consolidated revenues of $4.62 billion for the year ended December 31, 2011.
Which segment contributed the most to Quanta's revenue in 2011?
The Electric Power Infrastructure Services segment was the largest contributor, accounting for 66% of consolidated revenues.
What were the key drivers of revenue growth in 2011?
Revenue growth was driven by increased capital spending by customers, particularly in the electric power transmission sector, and the successful integration of several acquisitions made during the year.
Did Quanta experience any significant challenges in its operations during 2011?
Yes, the Natural Gas and Pipeline Infrastructure Services segment faced challenges, including a revenue decline due to fewer projects and increased project costs, along with a pension plan withdrawal charge impacting its profitability.
What is Quanta's outlook for its key segments in the near future?
Quanta expects continued growth in Electric Power Infrastructure Services due to grid modernization and renewable energy projects. The Telecommunications segment is anticipated to benefit from broadband initiatives and 4G/LTE deployments. The company is also diversifying its Natural Gas and Pipeline segment through midstream and integrity services.
06—Continue