Summary
Quanta Services, Inc. (PWR) reported financial results for the nine months ended September 30, 2011, showcasing a significant increase in consolidated revenues driven primarily by strong performance in its Electric Power Infrastructure Services segment. This growth was bolstered by several strategic acquisitions in Canada and Australia, expanding the company's operational capabilities and geographic reach. Despite the overall revenue growth, the company experienced a decline in profitability, with net income attributable to common stock decreasing year-over-year. This was largely due to a substantial drop in revenues and operating income from the Natural Gas and Pipeline Infrastructure Services segment, impacted by reduced project activity and the effects of adverse weather and regulatory restrictions on certain projects. The company also noted a decrease in gross margin for the nine-month period, attributable to the lower revenue contributions from the natural gas segment and the completion of higher-margin projects in the electric power segment in the prior year. Financially, Quanta Services maintained a solid liquidity position with ample cash and available credit, and has undertaken a new $700 million senior secured revolving credit facility. The company is actively managing its capital expenditures, with a significant portion allocated to fiber optic network expansion, and continues to evaluate strategic acquisition opportunities to fuel future growth.
Financial Highlights
51 data points| Revenue | $1.11B |
| Gross Profit | $172.06M |
| SG&A Expenses | $92.41M |
| Operating Income | $93.98M |
| Interest Expense | $738K |
| Net Income | $51.99M |
| EPS (Basic) | $0.25 |
| EPS (Diluted) | $0.25 |
| Shares Outstanding (Basic) | 210.58M |
| Shares Outstanding (Diluted) | 210.69M |
Key Highlights
- 1Consolidated revenues increased by 10.1% to $3.11 billion for the nine months ended September 30, 2011, driven by a 41.5% increase in Electric Power Infrastructure Services revenue.
- 2The company completed four acquisitions in 2011, including Coe Drilling Pty. Ltd. (Australia) and McGregor Construction 2000 Ltd. (Canada), expanding its service offerings and international presence.
- 3Net income attributable to common stock decreased by 44.7% to $66.2 million for the nine months ended September 30, 2011, compared to $119.5 million in the prior year period.
- 4The Natural Gas and Pipeline Infrastructure Services segment saw a significant revenue decline of 35.7% and reported an operating loss of $42.1 million for the nine months ended September 30, 2011.
- 5Gross margin decreased to 13.5% for the nine months ended September 30, 2011, from 16.8% in the same period of 2010, impacted by lower natural gas revenues and project mix.
- 6Quanta Services has a robust credit facility, entering into a new $700 million senior secured revolving credit facility in August 2011, with $509.7 million available as of September 30, 2011.
- 7The company's backlog stood at $3.44 billion as of September 30, 2011, a decrease from $7.17 billion at the end of 2010, with a significant portion expected within 12 months.