Summary
Quanta Services, Inc. reported revenues of $7.57 billion for the fiscal year ended December 31, 2015, a slight decrease of 2.3% compared to the prior year. This decline was primarily driven by reduced customer spending and project delays in the Electric Power Infrastructure Services segment, impacted by regulatory and permitting issues. Conversely, the Oil and Gas Infrastructure Services segment saw revenue growth, bolstered by recent acquisitions. Despite the revenue dip, the company completed significant acquisitions, enhancing its service offerings. However, gross profit declined by 21% due to a less favorable project mix, with a shift towards lower-margin work and specific project losses, alongside a significant goodwill and intangible asset impairment charge of $58.5 million, largely attributed to the prolonged low commodity price environment impacting its Oil and Gas segment. The company continues to manage its operations with a strong focus on strategic growth and financial discipline, reflected in its robust credit facility and ongoing efforts to optimize its service portfolio.
Financial Highlights
53 data points| Revenue | $7.57B |
| Gross Profit | $923.66M |
| SG&A Expenses | $592.86M |
| Operating Income | $237.50M |
| Interest Expense | $8.02M |
| Net Income | $310.91M |
| EPS (Basic) | $1.59 |
| EPS (Diluted) | $1.59 |
| Shares Outstanding (Basic) | 195.11M |
| Shares Outstanding (Diluted) | 195.12M |
Key Highlights
- 1Revenue of $7.57 billion for fiscal year 2015, a 2.3% decrease year-over-year, primarily due to softer performance in the Electric Power Infrastructure Services segment.
- 2Gross profit decreased by 21% to $923.7 million, with gross margin declining to 12.2% from 15.1% in the prior year, impacted by project mix and specific project losses.
- 3Recorded asset impairment charges totaling $58.5 million in 2015, primarily related to goodwill and intangible assets in the Oil and Gas segment due to low commodity prices.
- 4Completed 11 acquisitions in 2015, focused on expanding capabilities in both Electric Power and Oil and Gas infrastructure services.
- 5Sold fiber optic licensing operations for approximately $1 billion cash, recognizing a net after-tax gain of $171 million.
- 6Significant stock repurchases occurred in 2015, with $1.46 billion returned to shareholders under approved repurchase programs.
- 7As of year-end 2015, the company had a strong liquidity position with $128.8 million in cash and cash equivalents and $1.04 billion available under its credit facility.