01—Abstract
Summary
Summary of the 10-K/A filed May 31, 2013. Cited figures are marked; the original filing is the authoritative source.
Quanta Services, Inc. (PWR) reported strong growth in its 2012 fiscal year, with revenues increasing significantly to $5.92 billiona, up from $4.19 billion in 2011.
This growth was driven by robust performance in both the Electric Power Infrastructure Services and Natural Gas and Pipeline Infrastructure Services segments, bolstered by several strategic acquisitions. Net income attributable to common stock also saw a substantial increase, reaching $306.6 million in 2012, compared to $132.5 millionb in 2011. The company successfully completed the sale of its domestic telecommunications infrastructure services operations, presenting these as discontinued operations.
This strategic divestiture, along with continued investment in its core infrastructure services, positions Quanta for future growth. The company's balance sheet reflects a healthy increase in total assets to $5.14 billionc and a solid equity position of $3.77 billion. Investors should note the company's continued focus on expanding its service offerings and geographic reach through acquisitions, as demonstrated by the multiple acquisitions in 2012 and 2011.
The company also maintains a significant backlog of work and a strong credit facility, providing flexibility for ongoing operations and future investments. Despite potential risks related to litigation and self-insurance, Quanta appears to be on a solid growth trajectory.
02—Key points
Key Highlights
- Revenue increased by approximately 41% from $4.19 billion in 2011 to $5.92 billion in 2012.
- Net income attributable to common stock more than doubled from $132.5 million in 2011 to $306.6 million in 2012.
- The company divested its domestic telecommunications infrastructure services operations, presenting them as discontinued operations.
- Acquisitions played a significant role in growth, with four businesses acquired in 2012 and five in 2011, expanding capabilities and geographic reach.
- Total assets grew to $5.14 billion as of December 31, 2012, from $4.70 billion in the prior year.
- Total stockholders' equity increased to $3.77 billion as of December 31, 2012, from $3.38 billion in the prior year.
- The company's Electric Power Infrastructure Services segment was the largest revenue generator, followed by the Natural Gas and Pipeline Infrastructure Services segment.
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-K/AFY2012filed May 31, 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 main drivers of Quanta Services' revenue growth in 2012?
Quanta Services experienced significant revenue growth in 2012, driven primarily by strong performance in its Electric Power Infrastructure Services and Natural Gas and Pipeline Infrastructure Services segments. This growth was also substantially augmented by the company's strategy of making strategic acquisitions to expand its capabilities and geographic reach.
How did the sale of the telecommunications business impact the company's financial reporting?
The sale of substantially all of its domestic telecommunications infrastructure services operations on December 3, 2012, resulted in these operations being presented as 'discontinued operations' for all periods presented in the financial statements. This allows investors to better assess the ongoing performance of Quanta's core infrastructure services segments.
What is the company's approach to acquisitions, and what was their impact in 2012?
Quanta Services actively uses acquisitions as a strategy for growth and expansion. In 2012, the company acquired four businesses (one electric power infrastructure services company in Canada and three in the U.S., plus one natural gas and pipeline infrastructure services company in the U.S.). These acquisitions, along with those from prior years, are integrated into the company's existing segments and contribute to its expanded service offerings and international presence.
Can you provide an overview of Quanta's debt and equity position at the end of 2012?
As of December 31, 2012, Quanta Services had total liabilities of $1.37 billion and total equity of $3.77 billion, resulting in total assets of $5.14 billion. The company's debt position appears well-managed, with notes payable being minimal and a significant revolving credit facility available, of which $516.8 million was undrawn and available at year-end 2012.
06—Continue