Summary
Quanta Services, Inc. reported a significant decline in revenues and profitability for the third quarter of 2015 compared to the same period in the prior year. Revenues decreased by 9.6% to $1.94 billion, primarily due to a slowdown in the electric power infrastructure services segment, impacted by reduced customer spending and project delays related to regulatory and permitting issues. Gross profit saw a steeper decline of 30.2% to $235.2 million, with gross margin shrinking to 12.1% from 15.7%, attributed to a less favorable revenue mix (more lower-margin smaller projects) and increased competition. The company also reported a substantial net income of $219 million, significantly boosted by a $171 million after-tax gain from the sale of its fiber optic licensing operations, which was completed in August 2015. Excluding this gain, the underlying operational profitability would have been considerably lower. Financially, Quanta Services significantly reduced its debt levels, with long-term debt decreasing from $72.5 million at the end of 2014 to $348.2 million net of current maturities, though this was largely driven by increased borrowings under its credit facility. The company also repurchased a substantial amount of its own stock during the quarter, spending over $1 billion under its new share repurchase program. While the sale of the fiber optic business provided a significant cash infusion, the core operational segments faced margin pressures and revenue headwinds.
Financial Highlights
51 data points| Revenue | $1.94B |
| Gross Profit | $235.22M |
| SG&A Expenses | $145.69M |
| Operating Income | $80.88M |
| Interest Expense | $2.02M |
| Net Income | $216.39M |
| EPS (Basic) | $1.15 |
| Shares Outstanding (Basic) | 188.95M |
| Shares Outstanding (Diluted) | 188.96M |
Key Highlights
- 1Revenues decreased by 9.6% year-over-year to $1.94 billion for the third quarter of 2015.
- 2Gross profit margin declined to 12.1% from 15.7% year-over-year, indicating increased cost pressures and a less favorable revenue mix.
- 3Net income attributable to common stock was $216.4 million, heavily influenced by a $171 million after-tax gain from the sale of fiber optic licensing operations.
- 4The Electric Power Infrastructure Services segment saw revenues decrease by 15.3% year-over-year.
- 5The Oil and Gas Infrastructure Services segment's revenues increased slightly by 0.9% year-over-year, but operating income decreased significantly.
- 6The company repurchased approximately $1.03 billion of its common stock in the first nine months of 2015, including a substantial accelerated share repurchase program.
- 7Cash and cash equivalents decreased significantly from $190.5 million at the end of 2014 to $49.2 million at the end of the third quarter of 2015.