Summary
Quanta Services, Inc. reported robust revenue growth of 20.4% in 2014, reaching $7.85 billion, driven by strong performance in both its Electric Power and Oil & Gas Infrastructure Services segments. The company saw increased demand across transmission, distribution, and power generation projects, alongside significant contributions from acquired businesses. Despite this revenue growth, gross profit margins slightly decreased to 15.7% from 16.2% in the prior year, attributed to challenging weather conditions, particularly in Canada and northern U.S. regions, and lower margins on certain power generation projects. Selling, general, and administrative expenses saw a notable increase, primarily due to significant charges related to a long-term contract receivable and an arbitration decision, impacting overall profitability. The company ended the year with a strong balance sheet, including working capital of $1.42 billion and $190.5 million in cash and cash equivalents, while also continuing its strategic acquisition and share repurchase programs.
Financial Highlights
53 data points| Revenue | $7.75B |
| Gross Profit | $1.17B |
| SG&A Expenses | $705.48M |
| Operating Income | $429.06M |
| Interest Expense | $4.76M |
| Net Income | $296.71M |
| EPS (Basic) | $1.35 |
| EPS (Diluted) | $1.35 |
| Shares Outstanding (Basic) | 219.67M |
| Shares Outstanding (Diluted) | 219.69M |
Key Highlights
- 1Reported consolidated revenues of $7.85 billion for the year ended December 31, 2014, a 20.4% increase from $6.52 billion in 2013, driven by growth in both Electric Power and Oil & Gas Infrastructure Services segments.
- 2Electric Power Infrastructure Services segment revenues increased by 16.9% to $5.24 billion, supported by increased capital spending from customers and contributions from acquisitions.
- 3Oil & Gas Infrastructure Services segment revenues grew by 30.8% to $2.44 billion, largely due to contributions from acquired companies and increased customer capital spending.
- 4Gross profit margin declined slightly to 15.7% from 16.2% in the prior year, impacted by adverse weather and lower margins on certain projects.
- 5Selling, general, and administrative expenses increased significantly by 44.1% to $722.0 million, primarily due to provisions for a long-term contract receivable and an arbitration decision.
- 6The company reported net income attributable to common stock of $296.7 million, or $1.35 per diluted share, compared to $401.9 million, or $1.87 per diluted share, in the prior year.
- 7Backlog at December 31, 2014, stood at $9.76 billion, an increase from $8.73 billion in the prior year, indicating strong future revenue potential.