Quanta Services Reports 2012 Fourth Quarter And Annual Results
Quanta Services Reports 2012 Fourth Quarter And Annual Results
Record Annual Revenues & Operating Income
Record Backlog
PR Newswire
HOUSTON, Feb. 21, 2013
HOUSTON, Feb. 21, 2013 /PRNewswire/ -- Quanta Services, Inc. (NYSE: PWR) today
announced results for the three and 12 months ended Dec. 31, 2012. On Dec. 3,
2012, Quanta sold substantially all of its domestic telecommunications
infrastructure services operations. Accordingly, Quanta has presented these
telecommunications subsidiaries for the current and prior periods as
discontinued operations in the accompanying consolidated financial statements,
supplemental data and reconciliation of non-GAAP financial measures.
(Logo: http://photos.prnewswire.com/prnh/20110810/MM50805LOGO)
Revenues in the fourth quarter of 2012 were $1.67 billion compared to revenues
of $1.39 billion in the fourth quarter of 2011. Net income from continuing
operations attributable to common stock was $102.4 million, or $0.48 per
diluted share, in the fourth quarter of 2012, versus $58.7 million, or $0.28
per diluted share, in the fourth quarter of 2011. Included in net income from
continuing operations attributable to common stock for the fourth quarter of
2012 was $2.7 million of income, or a net benefit of $0.01 per diluted share,
from the release of income tax contingencies due to the expiration of various
statutes of limitations. Included in net income from continuing operations
attributable to common stock for the fourth quarter of 2011 was a $32.6
million charge to cost of services ($20.4 million net of tax) related to a
multiemployer pension plan partial withdrawal liability. Also included in net
income attributable to common stock for the fourth quarter of 2011 was $8.4
million of income from the release of income tax contingencies. The net impact
of these two items to the fourth quarter of 2011 was a $0.06 reduction in
diluted earnings per share.
"Our record fourth quarter performance was the culmination of the best year in
our company's history. During the year, we achieved nearly 36% internal
revenue growth, expanded our margins and improved our industry leading safety
results. I want to thank our dedicated employees for such a significant
achievement," said Jim O'Neil, president and chief executive officer of Quanta
Services. "Looking forward, we expect growth to continue in the energy markets
we serve, as reflected by our record backlog at year end. Although timing of
project starts can shift from one quarter to another, our end markets are
robust. We will also continue to leverage our leadership position to enhance
our service offerings to our customers."
Adjusted diluted earnings per share from continuing operations (a non-GAAP
measure) were $0.51 for the fourth quarter of 2012 compared to $0.38 for the
fourth quarter of 2011. Adjusted diluted earnings per share from continuing
operations are before the impact of certain adjustments and therefore exclude
the effect of the release of income tax contingencies, the charge related to a
multiemployer pension plan partial withdrawal liability discussed previously
and non-cash items such as amortization of intangible assets and non-cash
compensation expense, all net of tax. See the attached table for a
reconciliation of non-GAAP measures to the reported GAAP measures.
Revenues for the year ended Dec. 31, 2012 were $5.92 billion compared to $4.19
billion for the year ended Dec. 31, 2011. For 2012, net income from continuing
operations attributable to common stock was $289.7 million or $1.36 per
diluted share. Included in net income attributable to common stock for 2012
was $7.9 million of income, or a net benefit of $0.04 per diluted share, from
the release of income tax contingencies in the third and fourth quarters of
2012. The results for 2012 compared to net income from continuing operations
attributable to common stock of $118.5 million, or $0.56 per diluted share,
for 2011, which includes the charge related to our multiemployer pension plan
partial withdrawal and income from the release of income tax contingencies and
settlement of certain tax audits discussed above. Adjusted diluted earnings
per share from continuing operations (a non-GAAP measure) for the full year
were $1.52 for 2012 as compared to $0.76 for 2011.
RECENT HIGHLIGHTS
o Named Duke Austin Chief Operating Officer - In December 2012, Quanta
announced that Duke Austin had been named chief operating officer
effective Jan. 1, 2013. Austin oversees Quanta's domestic and
international operations. He most recently held the title of president,
Electric Power and Natural Gas and Pipeline Divisions and was previously
responsible for Quanta's power and pipeline operations since January 2011.
o Appointed Margaret Shannon to Board of Directors - In December 2012,
Quanta announced the appointment of Margaret Shannon to the company's
board of directors. Shannon brings vast experience from the energy
industry, as well as in corporate governance.
o Closed the Sale of Telecommunications Subsidiaries to Dycom Industries -
In December 2012, Quanta announced that it closed the sale of its
telecommunications subsidiaries to Dycom Industries, Inc. for net proceeds
of approximately $265 million. The subsidiaries included in the
transaction comprised substantially all of Quanta's former domestic
telecommunications infrastructure services operations. Quanta intends to
use the proceeds from the transaction to support its ongoing strategic
growth initiatives and for general corporate purposes.
o Selected by SaskPower to Install the Island Falls to Key Lake Transmission
Line - In January, Quanta announced that SaskPower had selected Valard
Construction, a Quanta Services company, to install transmission
infrastructure for the Island Falls to Key Lake Transmission Line Project.
Under the terms of the contract, Valard will build approximately 186 miles
(300 kilometers) of 230-kilovolt transmission line in northern
Saskatchewan. The project scope includes foundation construction,
installation of approximately 900 transmission towers, wire stringing and
related project management. The project is expected to be complete in the
spring of 2015.
o Awarded Contracts for Two Solar Tracking Facilities Totaling 40MWac - In
February, Quanta announced that its subsidiary, Quanta Power Generation,
Inc., had been selected by Con Edison Development (CED) to engineer,
procure and construct two photovoltaic (PV) facilities totaling
approximately 40 megawatts (MWac) located in Kings and Tulare counties,
Calif.
OUTLOOK
The overall outlook for Quanta's business is positive. However, regulatory and
permitting challenges may impact project timing. Therefore, Quanta's financial
outlook for revenues and margins reflects management's efforts to properly
align these uncertainties with the backlog the company is executing on and the
opportunities expected to materialize in 2013. In addition, the company's
outlook for 2013 reflects a reduction in emergency restoration revenues to
more normalized levels, as 2012 results reflect record emergency restoration
service revenues of over $250 million. Lastly, the company has not assumed any
uncommitted mainline pipeline construction work in its 2013 financial outlook.
The following forward-looking statements are based on current expectations,
and actual results may differ materially.
Quanta expects revenues for the first quarter of 2013 to range between $1.3
billion and $1.4 billion and diluted earnings per share from continuing
operations to be $0.28 to $0.30. Quanta expects adjusted diluted earnings per
share from continuing operations (a non-GAAP measure) for the first quarter of
2013 to be $0.31 to $0.33. This non-GAAP measure is estimated on a similar
basis as the calculations of historical adjusted diluted earnings per share
from continuing operations presented in this press release. Amortization of
intangibles and non-cash stock compensation expense are forecasted to be
approximately $5.3 million and $5.6 million for the first quarter of 2013.
Quanta expects revenues for the full year 2013 to range between $5.7 billion
and $6.2 billion. Diluted earnings per share from continuing operations for
the full year 2013 are estimated to be between $1.10 and $1.40. Quanta expects
adjusted diluted earnings per share from continuing operations for the full
year 2013 to range from $1.23 to $1.53. Amortization of intangibles and
non-cash stock compensation expense are forecasted to be approximately $20.2
million and $26.1 million for the full year 2013.
SUPPLEMENTAL FINANCIAL MEASURES
Certain consolidated historical financial information recast for discontinued
operations has been filed with the Securities and Exchange Commission in a
Form 8-K and posted to Quanta's website at www.quantaservices.com in the
"Investors & Media" section. The historical financial information includes
consolidated statements of operations, earnings per share and segment data, as
well as backlog information, for specified quarterly and year-to-date periods
in 2012 and 2011 recast for discontinued operations. In addition, certain
non-GAAP financial measures and the associated reconciliations of these
measures to reported GAAP measures that are derived from Quanta's recast
historical financial information for such quarterly and year-to-date periods
in 2012 and 2011 have also been posted to Quanta's website.
NON-GAAP FINANCIAL MEASURES
The non-GAAP measures in this press release and on Quanta's website are
provided to enable investors, analysts and management to evaluate Quanta's
performance excluding the effects of certain items that management believes
impact the comparability of operating results between reporting periods. In
addition, management believes these measures are useful in comparing Quanta's
operating results with those of its competitors. These measures should be used
as an addition to, and not in lieu of, results prepared in conformity with
GAAP. Reconciliations of other GAAP to non-GAAP measures not included in the
table attached to this press release can be found on the company's website at
www.quantaservices.com in the "Investors & Media" section.
CONFERENCE CALL INFORMATION
Quanta Services has scheduled a conference call for Feb. 21, 2013, at 9:30
a.m. Eastern Time. To participate in the call, dial 480-629-9643 at least 10
minutes before the conference call begins and ask for the Quanta Services
conference call. Investors, analysts and the general public will also have the
opportunity to listen to the conference call over the Internet by visiting the
company's website at www.quantaservices.com. To listen to the call live on the
Web, please visit the Quanta Services website at least 15 minutes early to
register, download and install any necessary audio software. For those who
cannot listen to the live event, an archive will be available shortly after
the call on the company's website at www.quantaservices.com. A replay will
also be available through Feb. 28, 2013, and may be accessed at 303-590-3030,
using the pass code 4600021#. For more information, please contact Kip Rupp,
vice president - Investor Relations at Quanta Services, by calling
713-341-7260 or emailing investors@quantaservices.com.
ABOUT QUANTA SERVICES
Quanta Services is a leading specialized contracting services company,
delivering infrastructure solutions for the electric power and natural gas and
pipeline industries. Quanta's comprehensive services include designing,
installing, repairing and maintaining network infrastructure. Additionally,
Quanta licenses point-to-point fiber optic telecommunications infrastructure
in certain markets and offers related design, procurement, construction and
maintenance services. With operations throughout North America and in certain
international markets, Quanta has the manpower, resources and expertise to
complete projects that are local, regional, national or international in
scope.
Forward-Looking Statements
This press release (and oral statements regarding the subject matter of this
release, including those made on the conference call and webcast announced
herein) contains forward-looking statements intended to qualify for the "safe
harbor" from liability established by the Private Securities Litigation Reform
Act of 1995. Forward-looking statements include, but are not limited to,
projected revenues, earnings per share, margins, capital expenditures and
other projections of financial and operating results; expectations regarding
the business outlook, growth or opportunities in particular markets; the
expected value of contracts or intended contracts with customers; the scope,
services, term and results of any projects awarded or expected to be awarded
for services to be provided by Quanta; potential opportunities that may be
indicated by bidding activity or similar discussions with customers; the
potential benefits from acquisitions; the business plans or financial
condition of our customers; and Quanta's strategies and plans, as well as
statements reflecting expectations, intentions, assumptions or beliefs about
future events, and other statements that do not relate strictly to historical
or current facts. Although Quanta's management believes that the expectations
reflected in such forward-looking statements are reasonable, it can give no
assurance that such expectations will prove to be correct. These statements
can be affected by inaccurate assumptions and by a variety of risks and
uncertainties that are difficult to predict or beyond our control, including,
among others, the effects of industry, economic or political conditions
outside of the control of Quanta; quarterly variations in operating results,
including as a result of weather, site conditions, project schedules,
regulatory and environmental restrictions, bidding and spending patterns and
other factors that may affect the timing of or productivity on projects;
adverse economic and financial conditions, including weakness in the capital
markets; trends and growth opportunities in relevant markets; delays,
reductions in scope or cancellations of anticipated, pending or existing
projects, including as a result of weather, regulatory or environmental
processes, project performance issues or capital constraints that may impact
our customers; the successful negotiation, execution, performance and
completion of anticipated, pending and existing contracts; the ability to
obtain awards of projects on which we bid or are otherwise discussing with
customers; the ability to attract skilled labor and retain key personnel and
qualified employees; potential shortage of employees; dependence on fixed
price contracts and the potential to incur losses with respect to these
contracts; estimates relating to the use of percentage-of-completion
accounting; the ability to generate internal growth; the ability to
effectively compete for new projects and market share; the failure of
renewable energy initiatives, the economic stimulus package or other existing
or potential legislative actions to result in increased demand for Quanta's
services; liabilities associated with multi-employer pension plans, including
underfunding of liabilities and termination or withdrawal liabilities; the
possibility of an increase in the liability associated with Quanta's partial
withdrawal in the fourth quarter of 2011 from a multi-employer pension plan,
including as a result of successful legal challenges by the pension plan;
unexpected costs or liabilities that may arise from lawsuits or indemnity
claims related to the services Quanta performs; liabilities for claims that
are self-insured or not insured; potential additional risk exposure resulting
from any unavailability or cancellation of third party insurance coverage, the
exclusion of coverage for certain losses, or potential increases in premiums
for coverage deemed beneficial to Quanta; cancellation provisions within
contracts and the risk that contracts are not renewed or are replaced on less
favorable terms; the potential that participation in joint ventures exposes us
to liability and/or harm to our reputation for actions or omissions by our
partners; our failure to comply with the terms of our contracts, which may
result in unexcused delays, warranty claims, failure to meet performance
guarantees, damages or contract terminations; the effect of natural gas,
natural gas liquids and oil prices on Quanta's operations and growth
opportunities; the future development of natural resources in shale areas; the
inability of customers to pay for services; the failure to recover on payment
claims against project owners or to obtain adequate compensation for
customer-requested change orders; the failure of our customers to comply with
regulatory requirements applicable to their projects, including those related
to awards of stimulus funds, potentially resulting in project delays or
cancellations; budgetary or other constraints that may reduce or eliminate tax
incentives for or government funding of projects, including stimulus projects,
which may result in project delays or cancellations; estimates and assumptions
in determining financial results and backlog; the ability to realize backlog;
risks associated with operating in international markets, including
instability of foreign governments, currency fluctuations, tax and investment
strategies and compliance with the laws of foreign jurisdictions as well as
the Foreign Corrupt Practices Act and other applicable anti-bribery and
anti-corruption laws; the ability to successfully identify and complete
acquisitions, to effectively integrate acquired businesses and their
operations, and to realize potential synergies from acquisitions; the
potential adverse impact resulting from uncertainty surrounding acquisitions,
including the ability to retain key personnel from the acquired businesses and
the potential increase in risks already existing in Quanta's operations; the
adverse impact of goodwill or other intangible asset impairments; the adverse
impact of impairments of investments in third parties; growth outpacing our
decentralized management and infrastructure; requirements relating to
governmental regulation and changes thereto; inability to enforce our
intellectual property rights or the obsolescence of such rights; risks
associated with the implementation of an information technology solution; the
impact of a unionized workforce on operations, including labor stoppages or
interruptions due to strikes or lockouts; and the ability to complete future
acquisitions; potential liabilities relating to occupational health and safety
matters; our dependence on suppliers, subcontractors and equipment
manufacturers and their ability to perform their obligations; risks associated
with Quanta's fiber optic licensing business, including regulatory and tax
changes and the potential inability to realize a return on capital
investments; beliefs and assumptions about the collectability of receivables;
the cost of borrowing, availability of credit, fluctuations in the price and
volume of Quanta's common stock, debt covenant compliance, interest rate
fluctuations and other factors affecting financing and investment activities;
the ability to access sufficient funding to finance desired growth and
operations; the ability to obtain performance bonds; the ability to continue
to meet the requirements of the Sarbanes-Oxley Act of 2002; potential exposure
to environmental liabilities; rapid technological and structural changes that
could reduce the demand for services; the potential impact of increased
healthcare costs arising from federal healthcare reform, and other risks
detailed in Quanta's Annual Report on Form 10-K for the year ended Dec. 31,
2011 and Quanta's Quarterly Reports on Form 10-Q for the quarters ended March
31, 2012, June 30, 2012 and September 30, 2012 and any other documents that
Quanta files with the Securities and Exchange Commission (SEC). Should one or
more of these risks materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those expressed or implied
in any forward-looking statements. Investors are cautioned not to place undue
reliance on these forward-looking statements, which are current only as of
this date. Quanta does not undertake and expressly disclaims any obligation to
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. For a discussion of these risks,
uncertainties and assumptions, investors are urged to refer to Quanta's
documents filed with the SEC that are available through the company's website
at www.quantaservices.com or through the SEC's Electronic Data Gathering and
Analysis Retrieval System (EDGAR) at www.sec.gov.
Contacts: Derrick Jensen, CFO
Kip Rupp, CFA - Investors
Stephanie Moreland - Media
Quanta Services, Inc.
713-629-7600
Quanta Services, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Three and Twelve Months Ended December 31, 2012 and 2011
(In thousands, except per share information)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2012 2011 2012 2011
Revenues $ 1,673,342 $ 1,393,004 $ 5,920,269 $ 4,193,764
Cost of services (including 1,386,603 1,181,113 4,982,562 3,599,448
depreciation)
Multi-employer pension plan — 32,600 — 32,600
withdrawal expense
Gross profit 286,739 179,291 937,707 561,716
Selling, general and 116,976 89,393 434,894 337,835
administrative expenses
Amortization of intangible 8,910 8,292 37,691 29,039
assets
Operating income 160,853 81,606 465,122 194,842
Interest expense (1,250) (573) (3,746) (1,803)
Interest income 293 305 1,471 1,066
Equity in earnings of 776 — 2,084 —
unconsolidated affiliates
Other income (expense), net 24 (133) (351) (597)
Income from continuing
operations before income 160,696 81,205 464,580 193,508
tax provision
Provision for income taxes 55,323 17,996 158,859 63,096
Net income from continuing 105,373 63,209 305,721 130,412
operations
Income (loss) from
discontinued operations, (3,364) 7,599 16,935 14,004
net of taxes
Net income 102,009 70,808 322,656 144,416
Less: Net income
attributable to 3,023 4,494 16,027 11,901
noncontrolling interests
Net income attributable to $ 98,986 $ 66,314 $ 306,629 $ 132,515
common stock
Amounts attributable to
common stock:
Net income from continuing $ 102,350 $ 58,715 $ 289,694 $ 118,511
operations
Net income (loss) from (3,364) 7,599 16,935 14,004
discontinued operations
Net income attributable to $ 98,986 $ 66,314 $ 306,629 $ 132,515
common stock
Earnings per share
attributable to common
stock – basic and diluted:
Net income from continuing $ 0.48 $ 0.28 $ 1.36 $ 0.56
operations
Net income (loss) from (0.02) 0.04 0.08 0.06
discontinued operations
Net income attributable to $ 0.46 $ 0.32 $ 1.44 $ 0.62
common stock
Weighted average shares
used in computing earnings
per share:
Basic 213,285 210,085 212,777 212,648
Diluted 213,350 210,204 212,835 213,168
Quanta Services, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
December 31, December 31,
2012 2011
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 394,701 $ 315,349
Accounts receivable, net 1,328,081 959,887
Costs and estimated earnings in excess of 342,777 189,167
billings on uncompleted contracts
Inventories 38,261 62,519
Prepaid expenses and other current assets 97,907 105,001
Current assets of discontinued operations — 133,231
Total current assets 2,201,727 1,765,154
PROPERTY AND EQUIPMENT, net 1,045,983 938,902
OTHER ASSETS, net 171,566 150,079
OTHER INTANGIBLE ASSETS, net 183,836 200,876
GOODWILL 1,537,645 1,470,811
NON-CURRENT ASSETS OF DISCONTINUED OPERATIONS — 173,292
Total assets $ 5,140,757 $ 4,699,114
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt and notes $ 9 $ 56
payable
Accounts payable and accrued expenses 707,285 570,572
Billings in excess of costs and estimated 173,885 144,599
earnings on uncompleted contracts
Current liabilities of discontinued operations — 65,849
Total current liabilities 881,179 781,076
LONG-TERM DEBT — —
DEFERRED INCOME TAXES AND OTHER NON-CURRENT 487,662 526,196
LIABILITIES
LONG-TERM LIABILITIES OF DISCONTINUED — 2,579
OPERATIONS
Total liabilities 1,368,841 1,309,851
TOTAL STOCKHOLDERS' EQUITY 3,766,548 3,381,952
NONCONTROLLING INTERESTS 5,368 7,311
TOTAL EQUITY 3,771,916 3,389,263
Total liabilities and equity $ 5,140,757 $ 4,699,114
Quanta Services, Inc. and Subsidiaries
Supplemental Data
(In thousands, except percentages)
(unaudited)
Segment Results
Quanta reports its results under three reporting segments: (1) Electric Power
Infrastructure Services, (2) Natural Gas and Pipeline Infrastructure Services and (3)
Fiber Optic Licensing and Other, as set forth below (in thousands, except percentages).
Three Months Ended December 31, Twelve Months Ended December 31,
2012 2011 2012 2011
Revenues:
Electric $ 70.5% $ 70.0% $ 71.1% $ 72.1%
Power 1,179,637 974,797 4,206,509 3,022,659
Natural Gas 445,936 26.6 376,333 27.0 1,534,713 25.9 1,011,248 24.1
and Pipeline
Fiber Optic
Licensing and 47,769 2.9 41,874 3.0 179,047 3.0 159,857 3.8
Other
Consolidated $ 100.0% $ 100.0% $ 100.0% $ 100.0%
revenues 1,673,342 1,393,004 5,920,269 4,193,764
Operating
income
(loss):
Electric $ 13.4% $ 13.5% $ 12.4% $ 11.2%
Power 158,439 131,155 520,834 337,726
Natural Gas 27,461 6.2 (35,909) (9.5) 55,410 3.6 (78,307) (7.7)
and Pipeline (a) (a)
Fiber Optic
Licensing and 16,223 34.0 15,620 37.3 61,299 34.2 53,476 33.5
Other
Corporate and
Non-Allocated (41,270) N/A (29,260) N/A (172,421) N/A (118,053) N/A
Costs
Consolidated $ $ $
operating 160,853 9.6% 81,606(a) $465,122 7.9% 194,842(a) 4.6%
income 5.9%
Included in the operating loss for the Natural Gas and Pipeline
(a) Infrastructure Services segment for the fourth quarter and full year of
2011 is a $32.6 million charge related to the withdrawal by certain Quanta
subsidiaries from a multi-employer pension plan.
Backlog
Backlog represents the amount of revenue that Quanta expects to realize from
work to be performed in the future on uncompleted contracts, including new
contractual arrangements on which work has not yet begun. Backlog estimates
include amounts under long-term maintenance contracts or master service
agreements (MSAs), in addition to construction contracts. Quanta estimates the
amount of work to be disclosed as backlog as the estimate of future work to be
performed by using recurring historical trends inherent in the current MSAs,
factoring in seasonal demand and projecting customer needs based upon ongoing
communications with the customer. Generally, Quanta's customers are not
contractually committed to specific volumes of services under Quanta's MSAs,
and many of the company's contracts may be terminated with notice. There can
be no assurance as to Quanta's customers' requirements or that Quanta's
estimates are accurate. In addition, many of Quanta's MSAs, as well as
contracts for fiber optic licensing, are subject to renewal options. For
purposes of calculating backlog, Quanta has included future renewal options
only to the extent that the renewals can reasonably be expected to occur.
The following table presents Quanta's total backlog by reportable segment as
of December 31, 2012, September 30, 2012 and December 31, 2011, along with an
estimate of the backlog amounts expected to be realized within 12 months of
each date (in millions):
Backlog as of
December 31, 2012 September 30, 2012 December 31, 2011
12 Month Total 12 Month Total 12 Month Total
Electric Power $ $ 4,918.2 $ 2,856.6 $ 4,803.3 $ $
2,864.9 2,352.1 4,946.5
Natural Gas and 797.0 1,566.3 863.3 1,513.6 764.1 1,343.2
Pipeline
Fiber Optic
Licensing and 145.0 502.5 127.5 469.2 148.9 464.0
Other
Total $ $ 6,987.0 $ 3,847.4 $ 6,786.1 $ $
3,806.9 3,265.1 6,753.7
Quanta Services, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
For the Three and Twelve Months Ended December 31, 2012 and 2011
(In thousands, except per share information)
(Unaudited)
The non-GAAP measure of adjusted diluted earnings per share from continuing
operations is provided to enable investors to evaluate performance excluding
the effects of items that management believes impact the comparability of
operating results between periods. As to certain of the items below, (i)
amortization of intangible assets is impacted by Quanta's acquisition
activity, which can cause these amounts to vary from period to period; (ii)
non-cash compensation expense may vary due to acquisition activity, factors
influencing the estimated fair value of performance-based awards, estimated
forfeiture rates and amounts granted during the period, (iii) acquisition
costs vary period to period depending on the level of Quanta's acquisition
activity ongoing during the period and (iv) tax contingency releases vary
period to period depending on the level of reserves for uncertain tax
positions and the expiration dates of various federal and state tax statutes
of limitations.
Three Months Ended Twelve Months Ended
December 31, December 31,
2012 2011 2012 2011
Adjusted diluted
earnings per share
from continuing
operations:
Net income from
continuing
operations $ 102,350 $ 58,715 $ 289,694 $ 118,511
attributable to
common stock (GAAP
as reported)
Adjustments:
Impact of
multi-employer
pension plan - 20,425 - 20,425
withdrawal expense,
net of tax ^(a)
Impact of tax
contingency releases
and certain audit (2,671) (8,443) (7,856) (8,443)
settlements ^(b)
Acquisition - 421 1,961 1,053
costs, net of tax
Adjusted net income
from continuing
operations
attributable to 99,679 71,118 283,799 131,546
common stock before
certain non-cash
adjustments
Non-cash stock-based
compensation, net of 3,580 2,986 15,854 11,884
tax ^ (c)
Amortization of
intangible assets, 5,775 5,555 24,603 19,449
net of tax ^(c)
Adjusted net income
from continuing
operations
attributable to
common stock for
adjusted diluted
earnings per share
from $ 109,034 $ 79,659 $ 324,256 $ 162,879
continuing
operations
Calculation of
weighted average
shares for adjusted
diluted earnings
per share from
continuing
operations:
Weighted average
shares outstanding
for basic earnings 213,285 210,085 212,777 212,648
per
share
Effect of dilutive 65 119 58 126
stock options
Effect of shares - - - 394
held in escrow
Weighted average
shares outstanding
for adjusted diluted
213,350 210,204 212,835 213,168
earnings per
share from
continuing
operations
Adjusted diluted
earnings per share $ 0.51 $ 0.38 $ 1.52 $ 0.76
from continuing
operations
Reflects the elimination of the fourth quarter 2011 charge related to
(a) the withdrawal by certain subsidiaries from a multi-employer pension
plan.
Reflects the elimination of tax benefits primarily associated with
the expiration of various federal and state tax statutes of
(b) limitations during the third and fourth quarters of 2012 and the
fourth quarter of 2011. Such benefits are subject to significant
uncertainty surrounding the timing and amount of their release.
(c) Reflects amounts attributable to continuing operations.
SOURCE Quanta Services, Inc.
Website: http://www.quantaservices.com
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