Summary
Quanta Services, Inc. (PWR) reported a challenging first quarter ending March 31, 2011, with a net loss of $16.3 million compared to a net income of $24.1 million in the prior year. This downturn was primarily driven by significant operating losses in the Natural Gas and Pipeline Infrastructure Services segment, largely due to cost overruns on two major gas transmission projects impacted by adverse weather, regulatory issues, and complex drilling. Consolidated revenues saw a 13.5% increase to $849.0 million, largely attributed to a 24.0% rise in Electric Power Infrastructure Services, boosted by the acquisition of Valard Construction and strong solar project demand. Despite the overall loss, the company's Electric Power segment demonstrated resilience with increased revenues, though margins were impacted by lower emergency restoration services and a competitive pricing environment. The Fiber Optic Licensing segment continued its revenue growth. Management anticipates an improvement in the second half of 2011, driven by expected increases in electric transmission, renewable energy, and telecommunications spending, supported by government stimulus initiatives. However, ongoing economic uncertainty, regulatory hurdles, and potential customer capital constraints present persistent challenges.
Financial Highlights
49 data points| Revenue | $783.30M |
| Gross Profit | $69.58M |
| SG&A Expenses | $91.54M |
| Operating Income | -$26.92M |
| Interest Expense | $255K |
| Net Income | -$17.59M |
| EPS (Basic) | $-0.08 |
| EPS (Diluted) | $-0.08 |
| Shares Outstanding (Basic) | 214.17M |
| Shares Outstanding (Diluted) | 214.17M |
Key Highlights
- 1Net Loss of $16.3 million for Q1 2011, a significant decline from a net income of $24.1 million in Q1 2010.
- 2Consolidated revenues increased by 13.5% to $849.0 million, driven by the Electric Power Infrastructure Services segment (+24.0%).
- 3The Natural Gas and Pipeline Infrastructure Services segment incurred a significant operating loss of $37.0 million due to project cost overruns.
- 4Acquisition of Valard Construction contributed $41.6 million in revenue to the Electric Power segment.
- 5Electric Power Infrastructure Services segment operating income decreased by 21.3% due to lower margin emergency restoration services and competitive pricing.
- 6Fiber Optic Licensing segment revenues grew by 8.1% and maintained high operating margins.
- 7Total backlog stood at $2.96 billion as of March 31, 2011, a slight increase from $2.87 billion at the end of 2010.