01—Abstract
Summary
Summary of the 10-K filed March 1, 2013. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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.
02—Key points
Key Highlights
- Reported strong revenue growth of 41.2% to $5.92 billion in 2012, driven by increased customer capital spending.
- Electric Power Infrastructure Services segment was the largest revenue contributor (71%), showing significant growth.
- Natural Gas and Pipeline Infrastructure Services segment also experienced substantial revenue increases.
- Divested domestic telecommunications infrastructure services operations, streamlining business focus.
- Completed multiple strategic acquisitions to expand capabilities in key infrastructure sectors.
- Maintained a strong financial position with substantial working capital and an undrawn credit facility.
- Backlog at year-end 2012 stood at $6.99 billion, indicating a healthy pipeline of future work.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2012, Quanta Services kept $0.05.
- Revenue$5.92B100.0%
- Cost of revenue−$4.98B84.2%
- Gross profit$937.7M15.8%
- Operating costs−$472.6M8.0%
- Operating income$465.1M7.9%
- Interest, other & tax−$158.5M2.7%
- Net income$306.6M5.2%
Where FY2012 revenue went
$5.92B- Cost of revenue: $4.98B, 84% of revenue
- Net income: $306.6M, 5.2% of revenue
- SG&A: $434.9M, 7.3% of revenue
- Other operating costs: $37.7M, 0.6% of revenue
- Interest, other & tax: $158.5M, 2.7% of revenue
Kept 5.2% as net incomeNet income $306.6M · 5.2%Other operating costs $37.7M · 0.6%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2012filed March 1, 2013Financial Statements
FY2012 against FY2011
| Line item | FY2012FY2011 | Change |
|---|---|---|
| Revenue | $5.92B$4.19B | +41.2% |
| Gross Profit | $937.71M$561.72M | +66.9% |
| SG&A Expenses | $434.89M$337.83M | +28.7% |
| Operating Income | $465.12M$194.84M | +138.7% |
| Interest Expense | $3.75M$1.80M | +107.8% |
| Net Income | $306.63M$132.51M | +131.4% |
| EPS (Basic) | $1.44$0.62 | +132.3% |
| EPS (Diluted) | $1.44$0.62 | +132.3% |
| Shares Outstanding (Basic) | 212.78M212.65M | +0.1% |
| Shares Outstanding (Diluted) | 212.84M213.17M | −0.2% |
05—Questions
Frequently Asked Questions
What were the primary drivers of Quanta Services' revenue growth in 2012?
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.
What was the significance of the divestiture of the telecommunications business?
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.
How did Quanta Services manage its financial resources and liquidity in 2012?
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.
What is the outlook for Quanta Services' key segments based on the 2012 report?
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.
06—Continue