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10-QPeriod: Q1 FY2013

QUANTA SERVICES, INC. Quarterly Report for Q1 Ended Mar 31, 2013

Filed May 8, 2013For Securities:PWR

Summary

Quanta Services, Inc. (PWR) reported a strong first quarter in 2013, with revenues increasing by 19.3% year-over-year to $1.59 billion. This growth was primarily driven by a significant surge in the Electric Power Infrastructure Services segment, which saw a 26.7% increase in revenues due to higher customer capital spending. The company also demonstrated improved profitability, with gross profit up 28.1% and operating income up 50.6%, leading to a substantial increase in net income attributable to common stock by 57.4%. Financially, Quanta Services maintained a healthy liquidity position with $366.6 million in cash and cash equivalents and significant availability under its credit facility. The company's robust performance is supported by its diversified business segments, including Natural Gas and Pipeline Infrastructure Services which showed a notable turnaround from a loss to profitability, and Fiber Optic Licensing and Other, which continued its steady growth. While facing industry-wide challenges such as regulatory hurdles and economic uncertainties, Quanta Services appears well-positioned to capitalize on ongoing infrastructure upgrade needs across its core markets.

Financial Statements
Beta
Revenue$1.59B
Gross Profit$238.27M
SG&A Expenses$113.68M
Operating Income$119.29M
Interest Expense$502K
Net Income$72.08M
EPS (Basic)$0.34
EPS (Diluted)$0.34
Shares Outstanding (Basic)213.45M
Shares Outstanding (Diluted)213.51M

Key Highlights

  • 1Revenue increased 19.3% to $1.59 billion, driven by strong performance in the Electric Power Infrastructure Services segment (+26.7%).
  • 2Gross profit rose 28.1% to $238.3 million, with gross margin improving to 15.0% from 14.0% in the prior year period.
  • 3Operating income more than doubled, increasing 50.6% to $119.3 million, reflecting improved operational efficiency and higher revenues.
  • 4Net income attributable to common stock surged by 57.4% to $72.1 million, translating to basic and diluted EPS of $0.34, up from $0.22 in Q1 2012.
  • 5The Natural Gas and Pipeline Infrastructure Services segment returned to profitability, posting an operating income of $10.4 million compared to an operating loss of $10.5 million in the prior year.
  • 6The company maintained strong liquidity with $366.6 million in cash and cash equivalents and $516.4 million available under its credit facility, with no outstanding borrowings.
  • 7Backlog remained substantial at $3.82 billion for the 12-month forecast and $7.04 billion in total.

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