01—Abstract
Summary
Summary of the 10-K filed March 3, 2014. Cited figures are marked; the original filing is the authoritative source.
Quanta Services, Inc. (PWR) reported strong revenue growth in 2013, reaching $6.52 billiona, a 10.2% increase over 2012.
This growth was driven by higher activity in both the Electric Power Infrastructure Services segment (up 6.5%) and the Oil and Gas Infrastructure Services segment (up 21.8%), with acquisitions contributing to these gains. The company also saw an improvement in gross profit margin to 16.2% from 15.8% in the prior year, attributed to better project execution and a favorable revenue mix, partially offset by a decrease in high-margin emergency restoration services. Net income attributable to common stock rose by 31.1% to $401.9 millionb, reflecting improved operational performance and a significant gain from the sale of an equity ownership interest in Howard Midstream Energy Partners, LLC.
The company's robust performance was supported by continued investment in infrastructure, particularly in the North American electric power grid upgrade and expansion, as well as the ongoing development of natural gas and oil infrastructure fueled by shale resource extraction. Despite facing economic uncertainties and stringent regulatory requirements, Quanta's diversified business model and strategic acquisitions positioned it for sustained growth. The company ended the year with a strong balance sheet, including $488.8 millionc in cash and cash equivalents and significant availability under its credit facility.
02—Key points
Key Highlights
- Total revenues increased by 10.2% to $6.52 billion in 2013, driven by both Electric Power and Oil and Gas Infrastructure Services segments.
- Gross profit margin improved to 16.2% in 2013 from 15.8% in 2012, reflecting operational improvements.
- Net income attributable to common stock increased by 31.1% to $401.9 million, boosted by operational performance and a gain on sale of investment.
- The company completed six acquisitions in 2013, expanding its service offerings and geographic reach in the electric power and oil and gas sectors.
- Cash flow from operations from continuing operations significantly increased to $446.6 million in 2013, up from $166.8 million in 2012.
- At year-end 2013, Quanta had $488.8 million in cash and cash equivalents and $1.08 billion available under its credit facility, indicating strong liquidity.
- The Electric Power Infrastructure Services segment accounted for 69% of total revenues, with the Oil and Gas Infrastructure Services segment contributing 29%.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2013, Quanta Services kept $0.06.
- Revenue$6.41B100.0%
- Cost of revenue−$5.42B84.6%
- Gross profit$986.9M15.4%
- Operating costs−$510.9M8.0%
- Operating income$476.0M7.4%
- Interest, other & tax−$74.1M1.2%
- Net income$401.9M6.3%
Where FY2013 revenue went
$6.41B- Cost of revenue: $5.42B, 85% of revenue
- Net income: $401.9M, 6.3% of revenue
- SG&A: $485.1M, 7.6% of revenue
- Interest, other & tax: $74.1M, 1.2% of revenue
Kept 6.3% as net incomeNet income $401.9M · 6.3%Interest, other & tax $74.1M · 1.2%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2013filed March 3, 2014Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Revenue | $6.41B$5.92B | +8.3% |
| Gross Profit | $986.93M$937.71M | +5.2% |
| SG&A Expenses | $485.07M$434.89M | +11.5% |
| Operating Income | $476.00M$465.12M | +2.3% |
| Interest Expense | $2.67M$3.75M | −28.8% |
| Net Income | $401.92M$306.63M | +31.1% |
| EPS (Basic) | $1.87$1.44 | +29.9% |
| EPS (Diluted) | $1.87$1.44 | +29.9% |
| Shares Outstanding (Basic) | 214.93M212.78M | +1.0% |
| Shares Outstanding (Diluted) | 214.98M212.84M | +1.0% |
05—Questions
Frequently Asked Questions
What were Quanta Services' primary revenue drivers in 2013?
Quanta Services' primary revenue drivers in 2013 were its Electric Power Infrastructure Services segment, which accounted for 69% of revenues, and its Oil and Gas Infrastructure Services segment, which contributed 29% of revenues. Both segments experienced growth compared to the previous year, driven by increased customer capital spending on infrastructure projects.
How did the company's profitability change in 2013 compared to 2012?
The company's profitability saw significant improvement. Gross profit increased by 12.6% and the gross profit margin rose to 16.2% from 15.8%. Net income attributable to common stock increased by 31.1% to $401.9 million, benefiting from improved operational performance and a one-time gain from the sale of an investment.
What is the company's outlook for 2014 based on this filing?
The company expressed optimism about its outlook for 2014, anticipating growth opportunities across all served industries. It noted that utilities' continued investment in transmission infrastructure, coupled with the ongoing development of natural gas and oil infrastructure, should drive demand for its services. Capital expenditures were planned between $300 million and $325 million for 2014.
How does the company manage its debt and liquidity?
Quanta Services maintained a strong liquidity position at the end of 2013 with $488.8 million in cash and cash equivalents and $1.08 billion available under its credit facility. The company had no outstanding borrowings under its credit facility at year-end. Its credit facility was amended and restated in October 2013, providing $1.325 billion in senior secured revolving credit and maturing in October 2018.
06—Continue