Quanta Services Reports 2013 First Quarter Results

              Quanta Services Reports 2013 First Quarter Results

Diluted Earnings Per Share Increased 55% to $0.34

Backlog Increased to Record $7.04 billion

PR Newswire

HOUSTON, May 2, 2013

HOUSTON, May 2, 2013 /PRNewswire/ -- Quanta Services, Inc. (NYSE: PWR) today
announced results for the three months ended March 31, 2013. Revenues in the
first quarter of 2013 were $1.59 billion compared to revenues of $1.33 billion
in the first quarter of 2012. Net income from continuing operations
attributable to common stock was $72.1 million, or $0.34 per diluted share, in
the first quarter of 2013, versus net income from continuing operations
attributable to common stock of $45.8 million, or $0.22 per diluted share, in
the first quarter of 2012. Adjusted diluted earnings per share from
continuing operations (a non-GAAP measure) were $0.38 for the first quarter of
2013 compared to $0.26 for the first quarter of 2012.

(Logo: http://photos.prnewswire.com/prnh/20110810/MM50805LOGO)

"We are off to a great start this year with record revenues, record profits
and record backlog for the first quarter of 2013.Equally important, our
employees continue to operate at high levels of safety and efficiency in a
tight labor market," said Jim O'Neil, president and chief executive officer of
Quanta Services."We expect the performance of our electric power segment to
remain strong this year while our natural gas and pipeline segment builds
momentum throughout the remainder of 2013, which bodes well for our overall
business outlook for 2014 and beyond."

Adjusted diluted earnings per share from continuing operations are before the
impact of certain adjustments and therefore exclude 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. On Dec. 3, 2012, Quanta sold substantially all of
its domestic telecommunications infrastructure services operations, and the
corresponding prior period financial results have been presented as
discontinued operations in the accompanying consolidated financial statements,
supplemental data and reconciliation of non-GAAP financial measures.

RECENT HIGHLIGHTS

  oSelected by Pacific Gas & Electric for Multi-Year Pipeline System
    Integrity Alliance Agreement - In March 2013, Pacific Gas and Electric
    Company (PG&E), a PG&E Corporation subsidiary, selected Quanta to provide
    comprehensive pipeline system integrity solutions as part of PG&E's
    Pipeline Safety Enhancement Plan. Quanta was awarded a three-year alliance
    agreement, with subsequent annual extensions, to provide services such as
    pipeline replacement, hydrostatic testing and valve automation services.
    Quanta has begun working under the alliance agreement and estimates its
    initial value at approximately $100 million per year over the initial
    three-year term.
  oSelected by ATCO Electric for the Eastern Alberta Transmission Line - In
    March 2013, ATCO Electric selected Valard Construction, a Quanta Services
    company, to install transmission infrastructure for the Eastern Alberta
    Transmission Line (EATL) project. Under the terms of the contract, Valard
    will install approximately 310 miles (500 kilometers) of 500-kilovolt
    high-voltage direct current (HVDC) transmission line between the Edmonton
    and Calgary regions.
  oNamed Gérard Sonnier General Counsel - In March 2013, Gérard Sonnier
    joined the company as vice president and general counsel. Sonnier, 54,
    brings three decades of broad-based experience in both general counsel and
    chief compliance officer roles with two Fortune 200 companies. Prior to
    joining Quanta, he served as vice president, assistant general counsel,
    litigation and chief Foreign Corrupt Practices Act (FCPA) compliance
    officer with Waste Management, Inc.

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 included record emergency restoration
service revenues of over $250 million. Lastly, the company has not assumed any
uncommitted mainline pipe 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 second quarter of 2013 to range between $1.45
billion and $1.55 billion and diluted earnings per share from continuing
operations to be $0.30 to $0.32. Quanta expects adjusted diluted earnings per
share from continuing operations (a non-GAAP measure) for the second quarter
of 2013 to be $0.35 to $0.37. 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-based compensation are forecasted to be
approximately $5.1 million and $11.1 million for the second quarter of 2013.
Included in our estimate of non-cash stock-based compensation for the second
quarter and year of 2013 is approximately $4.2 million of expense, or one cent
per diluted share, related to the accelerated vesting of equity-based awards
associated with John R. Colson's retirement as Quanta's executive chairman of
the board of directors effective May 23, 2013.

Quanta expects revenues for the full year 2013 to range between $5.9 billion
and $6.3 billion. Diluted earnings per share from continuing operations for
the full year 2013 are estimated to be between $1.20 and $1.40. Quanta expects
adjusted diluted earnings per share from continuing operations for the full
year 2013 to range from $1.37 to $1.57. Amortization of intangibles and
non-cash stock-based compensation expense are forecasted to be approximately
$20.5 million and $32.8 million for the full year 2013.

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 has scheduled a conference call for May 2, 2013, at 9:30 a.m. Eastern
Time. To participate in the call, dial 480-629-9773 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 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 May 9, 2013, and may be accessed at 303-590-3030, using the pass code
4615818#. For more information, please contact Kip Rupp, vice president -
Investor Relations at Quanta Services, by calling 713-341-7260 or emailing
investors@quantaservices.com.

GET THE QUANTA SERVICES IR APP
The Quanta investor relations app for iPhone, iPad and Android mobile devices
is now available for free at Apple's App Store for the iPhone and iPad and at
Google Play for Android mobile devices. The Quanta investor relations app
allows users to navigate the company's investor relations materials including
the latest press releases, SEC filings, presentations, videos, audio cast
conference calls and stock price information. Sharing functionality via email,
Twitter and Facebook is available, as well as the ability for investors to be
notified when new information is posted to the company's IR app.

ABOUT QUANTA SERVICES
Quanta 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,
statements relating to projected revenues, earnings per share, margins,
capital expenditures, and other projections of operating or financial 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; the impact of
renewable energy initiatives, including mandated state renewable portfolio
standards, the economic stimulus package and other existing or potential
energy legislation; potential opportunities that may be indicated by bidding
activity or similar discussions with customers; the potential benefits from
acquisitions; the outcome of pending or threatened litigation; the business
plans or financial condition of our customers; Quanta's plans and strategies;
and the current economic and regulatory conditions and trends in the
industries Quanta serves, 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; 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 our customers' capital constraints; the successful negotiation,
execution, performance and completion of anticipated, pending and existing
contracts, including 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
skilled 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; adverse impacts from weather; the ability
to generate internal growth; competition in Quanta's business, including the
ability to effectively compete for new projects and market share; potential
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; liabilities for claims that are self-insured or
not insured; unexpected costs or liabilities that may arise from lawsuits or
indemnity claims asserted against Quanta; risks relating to the potential
unavailability or cancellation of third party insurance, the exclusion of
coverage for certain losses, and potential increases in premiums for coverage
deemed beneficial to Quanta; cancellation provisions within contracts and the
risk that contracts expire and are not renewed or are replaced on less
favorable terms; loss of customers with whom Quanta has long-standing or
significant relationships; the potential that participation in joint ventures
exposes us to liability and/or harm to our reputation for acts or omissions by
our partners; our inability or 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, which may result in project delays and
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 U.S. Foreign Corrupt Practices Act and other applicable anti-bribery and
anti-corruption laws; the ability to successfully identify, complete,
integrate and realize 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 impairments of goodwill and other intangible asset or investments; 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
related to 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; potential liabilities relating to
occupational health and safety matters; our dependence on suppliers,
subcontractors and equipment manufacturers; 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 investing activities; the ability to access
sufficient funding to finance desired growth and operations; the ability to
obtain performance bonds; potential exposure to environmental liabilities; the
ability to continue to meet the requirements of the Sarbanes-Oxley Act of
2002; rapid technological and structural changes that could reduce the demand
for services; the impact of increased healthcare costs arising from healthcare
reform legislation, and other risks and uncertainties detailed in Quanta's
Annual Report on Form 10-K for the year ended Dec. 31, 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 Months Ended March 31, 2013 and 2012
(In thousands, except per share information)
(Unaudited)
                                 Three Months Ended
                                 March 31,
                                 2013                     2012
Revenues                         $    1,585,710           $    1,328,764
Cost of services (including      1,347,437                1,142,700
depreciation)
Gross profit                     238,273                  186,064
Selling, general and             113,681                  98,108
administrative expenses
Amortization of intangible       5,301                    9,165
assets
Operating income                 119,291                  78,791
Interest expense                 (502)                    (575)
Interest income                  522                      408
Other income (expense), net      (513)                    130
Income from continuing           118,798                  78,754
operations before income taxes
Provision for income taxes       41,941                   28,669
Net income from continuing       76,857                   50,085
operations
Loss from discontinued           —                        (91)
operations, net of taxes
Net income                       76,857                   49,994
Less: Net income attributable to 4,776                    4,287
noncontrolling interests
Net income attributable to       $    72,081              $    45,707
common stock
Amounts attributable to common
stock:
Net income from continuing       $    72,081              $    45,798
operations
Net loss from discontinued       —                        (91)
operations
Net income attributable to       $    72,081              $    45,707
common stock
Earnings per share attributable
to common stock - basic and
diluted:
Continuing operations            $    0.34                $    0.22
Discontinued operations          —                        —
Net income attributable to       $    0.34                $    0.22
common stock
Weighted average shares used in
computing earnings per share:
Basic                            213,453                  211,481
Diluted                          213,512                  211,592



Quanta Services, Inc. and Subsidiaries Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
                            March 31,                December 31,

                             2013   2012
ASSETS
CURRENT ASSETS:
Cash and cash equivalents   $     366,619             $     394,701
Accounts receivable, net    1,283,739                 1,328,081
Costs and estimated
earnings in excess of       407,080                   342,777
billings on uncompleted
contracts
Inventories                 37,666                    38,261
Prepaid expenses and other  90,561                    97,907
current assets
Total current assets        2,185,665                 2,201,727
PROPERTY AND EQUIPMENT, net 1,071,972                 1,045,983
OTHER ASSETS, net           182,871                   171,566
OTHER INTANGIBLE ASSETS,    178,515                   183,836
net
GOODWILL                    1,535,795                 1,537,645
Total assets                $     5,154,818           $     5,140,757
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable and        $     666,650             $     707,294
accrued expenses
Billings in excess of costs
and estimated earnings on   163,236                   173,885
uncompleted contracts
Total current liabilities   829,886                   881,179
DEFERRED INCOME TAXES AND
OTHER NON-CURRENT           494,111                   487,662
LIABILITIES
Total liabilities           1,323,997                 1,368,841
TOTAL STOCKHOLDERS' EQUITY  3,826,131                 3,766,548
NONCONTROLLING INTERESTS    4,690                     5,368
TOTAL EQUITY                3,830,821                 3,771,916
Total liabilities and       $     5,154,818           $     5,140,757
equity





Quanta Services, Inc. and Subsidiaries Supplemental Data
(In thousands, except percentages)
(unaudited)

Segment Results
Quanta Services 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 March 31,
                                  2013                   2012
Revenues:
Electric Power                    $ 1,180,983   74.5  %  $ 932,213     70.1  %
Natural Gas and Pipeline          358,932       22.6     356,967       26.9
Fiber Optic Licensing and Other   45,795        2.9      39,584        3.0
Consolidated revenues             $ 1,585,710   100.0 %  $ 1,328,764   100.0 %
Operating income (loss):
Electric Power                    $ 132,550     11.2  %  $ 114,214     12.3  %
Natural Gas and Pipeline          10,357        2.9      (10,535)      (3.0)
Fiber Optic Licensing and Other   16,883        36.9     14,540        36.7
Corporate and Non-Allocated Costs (40,499)       N/A  (39,428)       N/A
Consolidated operating income     $ 119,291     7.5   %  $ 78,791      5.9   %



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 Quanta'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 March31, 2013, March31, 2012 and December31, 2012 along with an estimate
of the backlog amounts expected to be realized within 12 months of each date
(in millions):



          Backlog as of
          March31, 2013                  March31, 2012         December31,
                                                                 2012
          12 Month   Total      12 Month   Total      12 Month   Total
Electric  $ 2,766.3  $ 4,836.7  $ 2,728.5  $ 4,957.0  $ 2,864.9  $ 4,918.2
Power
Natural
Gas and   918.8      1,659.0    862.3      1,412.7    797.0      1,566.3
Pipeline
Fiber
Optic     137.6      544.3      140.4      491.3      145.0      502.5
Licensing
and Other
Total     $ 3,822.7  $ 7,040.0  $ 3,731.2  $ 6,861.0  $ 3,806.9  $ 6,987.0





Quanta Services, Inc. and Subsidiaries Reconciliation of Non-GAAP Financial
Measures For the Three Months Ended March 31, 2013
(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 and
(iii)acquisition costs vary period to period depending on the level of
Quanta's acquisition activity ongoing during the period.



                                                                                                              Three Months Ended
                                                                                                              March 31,
                                                                                                              2013       2012
Adjusted diluted earnings per share from continuing operations:
Net income from continuing operations attributable to common stock (GAAP as reported)                         $ 72,081   $  45,798
Adjustments:
 Acquisition costs, net of tax                                                                             450        440
Adjusted net income from continuing operations attributable to common stock before certain non-cash           72,531     46,238
adjustments
Non-cash stock-based compensation, net of tax                                                                 4,902      3,592
Amortization of intangible assets, net of tax                                                                 3,402      6,004
Adjusted net income from continuing operations attributable to common stock for adjusted diluted earnings per $ 80,835   $  55,834
share from continuing operations
Calculation of weighted average shares for adjusted diluted earnings per share from continuing operations:
Weighted average shares outstanding for basic earnings per share from                                         213,453    211,481
continuingoperations
Effect of dilutive stock options                                                                              59         111
Weighted average shares outstanding for adjusted diluted earnings per share from continuing                   213,512    211,592
operations
Adjusted diluted earnings per share from continuing operations                                                $ 0.38     $  0.26



SOURCE Quanta Services

Website: http://www.quantaservices.com