10-KPeriod: FY2012

QUANTA SERVICES, INC. Annual Report, Year Ended Dec 31, 2012

Filed March 1, 2013For Securities:PWR

Summary

Quanta Services, Inc. reported strong revenue growth in 2012, driven by increased capital spending in the electric power and natural gas/oil pipeline infrastructure sectors. The company experienced a significant revenue increase of 41.2% to $5.92 billion, largely due to robust activity in its Electric Power Infrastructure Services segment, which accounted for 71% of total revenues. The Natural Gas and Pipeline Infrastructure Services segment also saw substantial growth, contributing 26% of revenues. Key strategic moves in 2012 included the divestiture of its domestic telecommunications infrastructure services operations, which allowed the company to focus on its core infrastructure businesses. Quanta also completed several strategic acquisitions to enhance its capabilities, particularly in Canada and the United States. The company maintained a solid financial position, ending the year with substantial working capital and a strong credit facility, positioning it well for future growth and investment.

Financial Highlights

50 data points
Beta

Revenue

$5.92B

15.8% Gross Margin

Net Income

$306.63M

5.2% Net Margin

EPS (Diluted)

$1.44

Total Assets

$5.14B

Cash & Equivalents

$394.70M

Free Cash Flow

-$42.61M

Financial Statements
Beta
Revenue$5.92B
Gross Profit$937.71M
SG&A Expenses$434.89M
Operating Income$465.12M
Interest Expense$3.75M
Net Income$306.63M
EPS (Basic)$1.44
EPS (Diluted)$1.44
Shares Outstanding (Basic)212.78M
Shares Outstanding (Diluted)212.84M

Key Highlights

  • 1Reported strong revenue growth of 41.2% to $5.92 billion in 2012, driven by increased customer capital spending.
  • 2Electric Power Infrastructure Services segment was the largest revenue contributor (71%), showing significant growth.
  • 3Natural Gas and Pipeline Infrastructure Services segment also experienced substantial revenue increases.
  • 4Divested domestic telecommunications infrastructure services operations, streamlining business focus.
  • 5Completed multiple strategic acquisitions to expand capabilities in key infrastructure sectors.
  • 6Maintained a strong financial position with substantial working capital and an undrawn credit facility.
  • 7Backlog at year-end 2012 stood at $6.99 billion, indicating a healthy pipeline of future work.

Frequently Asked Questions

Quanta Services' revenue growth in 2012 was primarily driven by an increase in the number and size of electric power transmission and natural gas/oil pipeline projects. This surge in activity was due to increased capital spending by customers in these essential infrastructure sectors.

The divestiture of its domestic telecommunications infrastructure services operations on December 3, 2012, allowed Quanta to streamline its business focus, enabling it to concentrate resources and efforts on its core Electric Power and Natural Gas and Pipeline Infrastructure Services segments, which are seen as key growth areas.

Quanta Services maintained a strong financial position, ending 2012 with $394.7 million in cash and cash equivalents and $1.32 billion in working capital. The company also had significant availability under its credit facility, indicating robust liquidity to support operations, capital expenditures, and strategic growth initiatives.

The company's outlook was positive, anticipating continued growth driven by the aging North American electric grid requiring significant upgrades, regulatory mandates for renewable energy integration, and the development of natural gas and oil resources from shale formations. These trends are expected to fuel demand for Quanta's services in transmission, distribution, and pipeline infrastructure.