QUANTA SERVICES, INC. Quarterly Report for Q3 Ended Sep 30, 2014

Summary

Quanta Services, Inc. (PWR) reported a strong third quarter for 2014, with revenues increasing significantly by 32.0% year-over-year to $2.17 billion. This growth was driven by robust performance in both the Electric Power Infrastructure Services and Oil and Gas Infrastructure Services segments. The company's strategic acquisitions throughout 2014 and 2013 are contributing to this expansion, particularly in Canada and Australia. Despite revenue growth, net income attributable to common stock saw a modest increase to $94.6 million, primarily due to a significant $52.5 million charge related to a disputed contract receivable from the Sunrise Powerlink project and increased selling, general, and administrative expenses. The company ended the quarter with a solid liquidity position, holding $144.2 million in cash and cash equivalents and having substantial availability under its credit facility.

Key Highlights

• 1Total revenues for the third quarter of 2014 increased 32.0% to $2.17 billion compared to the same period in 2013.
• 2Electric Power Infrastructure Services segment revenue grew 31.6% to $1.38 billion.
• 3Oil and Gas Infrastructure Services segment revenue increased 35.7% to $749.8 million.
• 4Net income attributable to common stock was $94.6 million, a slight increase from $92.9 million in the prior year's third quarter.
• 5Operating income decreased by 3.0% to $142.9 million, impacted by a $52.5 million provision for a disputed contract receivable.
• 6The company completed eight acquisitions during the first nine months of 2014, contributing to revenue growth and expanded service offerings.
• 7Backlog as of September 30, 2014, stood at $5.25 billion for the next 12 months, showing a healthy pipeline of future work.

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