Summary
Quanta Services, Inc. (PWR) reported strong revenue growth in the third quarter and first nine months of 2012, driven by increased capital spending from customers across its Electric Power, Natural Gas and Pipeline, and Telecommunications infrastructure services segments. The company saw significant year-over-year improvements in revenue and gross profit, with gross profit as a percentage of revenue increasing. This was supported by better operational performance and improved coverage of overhead costs due to higher revenue volumes. Selling, general, and administrative expenses also increased, largely due to higher compensation, professional fees, and costs associated with recent acquisitions. The company also reported a substantial increase in net income attributable to common stock. The effective tax rate decreased due to tax benefits related to uncertain tax positions and a higher proportion of income from international jurisdictions. Quanta continues to actively pursue acquisitions, with several completed in 2012 and 2011, which are contributing to revenue growth and the recognition of goodwill. The company's backlog remains robust, indicating continued demand for its services.
Financial Highlights
50 data points| Revenue | $1.53B |
| Gross Profit | $252.00M |
| SG&A Expenses | $114.58M |
| Operating Income | $127.13M |
| Interest Expense | $963K |
| Net Income | $96.40M |
| EPS (Basic) | $0.45 |
| EPS (Diluted) | $0.45 |
| Shares Outstanding (Basic) | 213.15M |
| Shares Outstanding (Diluted) | 213.24M |
Key Highlights
- 1Revenue for the three months ended September 30, 2012 increased by 34.7% to $1.69 billion compared to the same period in 2011.
- 2Gross profit increased by 44.0% to $280.4 million for the three months ended September 30, 2012, with gross profit as a percentage of revenues improving to 16.6% from 15.6%.
- 3Net income attributable to common stock for the three months ended September 30, 2012, was $96.4 million, an increase from $52.0 million in the prior year's period.
- 4The company completed multiple acquisitions in 2012, including Service Electric Company, Phasor Engineering, Inc., Crux Subsurface, Inc., and Microline Technology Corporation, which contributed to revenue growth.
- 5Operating income increased significantly across most segments, with the Natural Gas and Pipeline segment moving from a loss to a profit.
- 6The company's backlog as of September 30, 2012, stood at $4.17 billion for the next 12 months and $7.27 billion in total.
- 7Quanta Services maintained compliance with its credit facility covenants and had $395.7 million available for borrowings or issuing new letters of credit as of September 30, 2012.