Summary
Quanta Services, Inc. (PWR) reported for the quarter ended June 29, 2010, showing a 7.0% increase in revenue to $870.5 million compared to the same period last year. This growth was primarily driven by a significant 38.4% surge in the Natural Gas and Pipeline Infrastructure Services segment, largely attributed to the acquisition of Price Gregory in late 2009. The Telecommunications Infrastructure Services segment also saw a healthy 21.9% revenue increase. However, the Electric Power Infrastructure Services segment experienced a 8.1% revenue decline, mainly due to customer spending reductions and project timing. Net income attributable to common stock remained relatively stable, slightly decreasing from $33.4 million in Q2 2009 to $33.0 million in Q2 2010. The company highlighted a strong focus on integrating the Price Gregory acquisition, which has bolstered its natural gas and pipeline capabilities. Despite economic headwinds and reduced customer spending, Quanta anticipates a pickup in activity in the latter half of 2010 and into 2011, particularly in electric transmission, gas transmission, telecommunications, and renewable energy projects. The company also redeemed its outstanding 3.75% convertible subordinated notes, impacting the financial statements with a loss on early extinguishment of debt but reducing future interest expenses.
Financial Highlights
49 data points| Revenue | $870.50M |
| Gross Profit | $156.04M |
| SG&A Expenses | $82.12M |
| Operating Income | $64.83M |
| Interest Expense | $1.53M |
| Net Income | $32.99M |
| EPS (Basic) | $0.16 |
| EPS (Diluted) | $0.16 |
| Shares Outstanding (Basic) | 209.40M |
| Shares Outstanding (Diluted) | 211.08M |
Key Highlights
- 1Revenue increased by 7.0% to $870.5 million for the three months ended June 30, 2010, compared to the prior year period.
- 2The Natural Gas and Pipeline Infrastructure Services segment showed significant growth (38.4% revenue increase), largely due to the acquisition of Price Gregory.
- 3Electric Power Infrastructure Services segment revenues decreased by 8.1%, primarily due to reduced customer spending and project timing.
- 4Gross margin improved to 17.9% from 16.9% in the same quarter last year, benefiting from higher-margin gas transmission services.
- 5The company redeemed its 3.75% convertible subordinated notes, resulting in a $7.1 million loss on early extinguishment of debt but reducing future interest expenses.
- 6Backlog stood at $2.66 billion as of June 30, 2010, a decrease from $5.84 billion at the end of 2009, with a significant portion expected within 12 months.
- 7Cash and cash equivalents were strong at $519.8 million as of June 30, 2010, providing ample liquidity.