Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

Quanta Services Reports 2013 Third Quarter Results



              Quanta Services Reports 2013 Third Quarter Results

Record Third Quarter Revenue and Operating Income

Backlog Increases to Record $8.09 Billion

PR Newswire

HOUSTON, Oct. 31, 2013

HOUSTON, Oct. 31, 2013 /PRNewswire/ -- Quanta Services, Inc. (NYSE: PWR) today
announced results for the three and nine months ended Sept. 30, 2013. Revenues
in the third quarter of 2013 were $1.65 billion compared to revenues of $1.53
billion in the third quarter of 2012. Net income from continuing operations
attributable to common stock was $92.9 million, or $0.43 per diluted share, in
the third quarter of 2013, versus net income from continuing operations
attributable to common stock of $83.6 million, or $0.39 per diluted share, in
the third quarter of 2012. Included in net income from continuing operations
attributable to common stock for the third quarter of 2013 and 2012 were $6.6
million and $5.2 million of income, or $0.03 per diluted share for the third
quarter of 2013 and $0.02 per diluted share for the third quarter of 2012,
from the release of income tax contingencies and settlement of certain tax
audits. Adjusted diluted earnings per share from continuing operations (a
non-GAAP measure) were $0.46 for the third quarter of 2013 compared to $0.42
for the third quarter of 2012.

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

"We expect 2013 to be another record year for Quanta. Increased demand for our
services resulted in strong third quarter performance despite emergency
restoration work being at the lowest level since 2010," said Jim O'Neil,
president and chief executive officer of Quanta Services. "Backlog is at a
record $8.09 billion, and significant bidding activity on large and small
projects, both in the electric power and natural gas and pipeline segments,
continues to indicate opportunity for solid earnings growth in 2014." 

Revenues for the first nine months of 2013 were $4.71 billion compared to
revenues of $4.25 billion in the first nine months of 2012. For the nine
months ended Sept. 30, 2013, net income from continuing operations
attributable to common stock was $235.2 million, or $1.10 per diluted share.
Included in the results for the first nine months of 2013 was non-cash
stock-based compensation expense of approximately $4.3 million, or $0.01 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. Also included in these results
was the $0.03 per diluted share benefit of the previously mentioned release of
income tax contingencies. This compares to net income from continuing
operations attributable to common stock of $187.3 million, or $0.88 per
diluted share, for the first nine months of 2012, which included the
previously mentioned release of income tax contingencies of $0.02 per diluted
share. Adjusted diluted earnings per share from continuing operations (a
non-GAAP measure) were $1.22 for the first nine months of 2013 compared to
$1.01 for the first nine months of 2012.

Adjusted diluted earnings per share from continuing operations is calculated
as GAAP diluted earnings per share from continuing operations before the
release of income tax contingencies and acquisition costs, as well as 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

  o Selected by TransCanada for Houston Lateral Project - In Oct. 2013,
    TransCanada Corporation selected Price Gregory International (Price
    Gregory), a Quanta Services company, for TransCanada Corporation's Houston
    Lateral Project. Price Gregory will construct and install approximately 48
    miles of 36-inch diameter steel pipe to interconnect TransCanada's Gulf
    Coast Pipeline to refineries in the Houston, Texas, marketplace. Price
    Gregory has received a limited notice to proceed and expects the project
    to be completed in the spring of 2014.
  o Selected by PPL to Complete High-Voltage Transmission Project in
    Pennsylvania - In Sept. 2013, Quanta was selected by PPL to complete the
    Pennsylvania portion of a complex, high-voltage transmission project.
    Construction is underway on approximately 69 miles of 500 kilovolt
    electric transmission infrastructure through environmentally sensitive and
    challenging terrain. Quanta expects to complete the project in the spring
    of 2015.
  o Acquired Two Companies Subsequent to the End of the Third Quarter

       o Performance Energy Services, L.L.C. - In early Oct. 2013, Quanta
         acquired Performance Energy Services, L.L.C. (PES), a specialty
         contractor to the offshore oil and gas industry, specializing in
         mechanical installations, fabrication of steel structures,
         commissioning and decommissioning services, electrical and
         instrumentation services and maintenance and repair of marine assets.
         Headquartered in Houma, La., PES primarily operates in the Gulf of
         Mexico and select international offshore markets serving U.S.
         exploration and production companies.
       o T.G. Mercer Consulting Services, Inc. - Also in early Oct. 2013,
         Quanta acquired T.G. Mercer Consulting Services, Inc. (Mercer).
         Founded in 1910 and headquartered in Willow Park, Texas, Mercer
         provides pipe transportation, handling, storage and logistics
         management services to the oil and gas pipeline construction
         industry. Mercer has operating facilities located in and near key
         domestic shale plays and has provided services nationwide.

         The aggregate consideration for both acquisitions consisted of
         approximately $125.3 million in cash, net of cash acquired and
         2,129,829 shares of Quanta common stock valued at approximately $52.3
         million.  

  o Amended Senior Secured Revolving Credit Facility - On Oct. 30, 2013,
    Quanta entered into an amended and restated credit agreement with a
    syndicate of lenders led by Bank of America N.A. and Wells Fargo N.A.,
    increasing the capacity under the company's senior secured revolving
    credit facility from $700 million to $1.325 billion and extending the
    maturity date to Oct. 30, 2018. The amended credit facility offers more
    favorable terms and rates and provides additional flexibility for
    borrowing in foreign currencies.

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 the fourth quarter of 2013. This
financial outlook includes the expected results for the PES and Mercer
acquisitions subsequent to their respective closing dates.  In addition,
Quanta's outlook for the fourth quarter of 2013 continues to reflect nominal
emergency restoration service revenues as compared to the fourth quarter of
2012, which included record emergency restoration service revenues of over
$130 million. Lastly, the company has not assumed any uncommitted mainline
pipe construction work in its fourth quarter 2013 financial outlook. The
following forward-looking statements are based on current expectations, and
actual results may differ materially.

Quanta expects revenues for the fourth quarter of 2013 to range between $1.65
billion and $1.75 billion and diluted earnings per share from continuing
operations to be $0.39 to $0.41. Included in our estimate of GAAP diluted
earnings per share from continuing operations for the fourth quarter of 2013
is a net tax benefit of approximately $0.02 per share associated with the
release of certain income tax contingencies due to the expiration of certain
statute of limitations periods during the fourth quarter.  Quanta expects
adjusted diluted earnings per share from continuing operations (a non-GAAP
measure) for the fourth quarter of 2013 to be $0.42 to $0.44. This non-GAAP
measure is estimated on a basis similar to 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 is forecasted to be approximately $17.1 million for the fourth
quarter of 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 Services has scheduled a conference call for October 31, 2013, at 9:30
a.m. eastern time. To participate in the call, dial 480-629-9723 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 November 7, 2013, and may be accessed at 303-590-3030, using the pass
code 4646469#. 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 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 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 energy 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
safely complete projects that are local, regional, national or international
in scope. For more information, visit www.quantaservices.com.

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 financial
flexibility afforded by the credit facility; 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
increases in the liability associated with Quanta's withdrawal 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 Quanta's
Quarterly Report on Form 10-Q for the quarters ended Mar. 31, 2013 and June
30, 2013 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       Media - Deborah Buks and Molly LeCronier
          Kip Rupp, CFA - Investors Ward Creative Communications 
          Quanta Services, Inc.     713-869-0707 
          713-629-7600

Quanta Services, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Three and Nine Months Ending September 30, 2013 and 2012
(In thousands, except per share information)
(Unaudited)
                        Three Months Ended          Nine Months Ended
                        September 30,               September 30,
                        2013          2012          2013          2012
Revenues                $ 1,645,132   $ 1,532,001   $ 4,705,219   $ 4,246,927
Cost of services
(including              1,372,079     1,280,001     3,952,609     3,595,959
depreciation)
Gross profit            273,053       252,000       752,610       650,968
Selling, general and    124,949       114,577       357,661       317,918
administrative expenses
Amortization of         7,026         10,290        17,406        28,781
intangible assets
Operating income        141,078       127,133       377,543       304,269
Interest expense        (475)         (963)         (1,480)       (2,496)
Interest income         1,139         383           2,230         1,178
Equity in earnings of
unconsolidated          —             1,308         —             1,308
affiliates
Other income (expense), (824)         (179)         (1,690)       (375)
net
Income from continuing
operations before       140,918       127,682       376,603       303,884
income taxes
Provision for income    42,509        39,596        126,611       103,536
taxes
Net income from         98,409        88,086        249,992       200,348
continuing operations
Income from
discontinued            —             12,770        —             20,299
operations, net of
taxes
Net income              98,409        100,856       249,992       220,647
Less: Net income
attributable to         5,503         4,458         14,768        13,004
noncontrolling
interests
Net income attributable $ 92,906      $ 96,398      $ 235,224     $ 207,643
to common stock
Amounts attributable to
common stock:
Net income from         $ 92,906      $ 83,628      $ 235,224     $ 187,344
continuing operations
Net income from         —             12,770        —             20,299
discontinued operations
Net income attributable $ 92,906      $ 96,398      $ 235,224     $ 207,643
to common stock
Earnings per share
attributable to common
stock - basic and
diluted:
Continuing operations   $ 0.43        $ 0.39        $ 1.10        $ 0.88
Discontinued operations —             0.06          —             0.10
Net income attributable $ 0.43        $ 0.45        $ 1.10        $ 0.98
to common stock
Weighted average shares
used in computing
earnings per share:
Basic                   214,866       213,150       214,178       212,564
Diluted                 214,916       213,242       214,229       212,650

Quanta Services, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
                                                   September 30,  December 31,
                                                   2013           2012
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                          $  309,153     $ 394,701
Accounts receivable, net                           1,434,701      1,328,081
Costs and estimated earnings in excess of billings 232,292        342,777
on uncompleted contracts
Inventories                                        35,590         38,261
Prepaid expenses and other current assets          125,651        97,907
Total current assets                               2,137,387      2,201,727
PROPERTY AND EQUIPMENT, net                        1,153,629      1,045,983
OTHER ASSETS, net                                  363,191        171,566
OTHER INTANGIBLE ASSETS, net                       190,749        183,836
GOODWILL                                           1,650,012      1,537,645
Total assets                                       $  5,494,968   $ 5,140,757
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt               $  2,639       $ —
Accounts payable and accrued expenses              757,267        707,294
Billings in excess of costs and estimated earnings 204,881        173,885
on uncompleted contracts
Total current liabilities                          964,787        881,179
DEFERRED INCOME TAXES AND OTHER NON-CURRENT        505,927        487,662
LIABILITIES
Total liabilities                                  1,470,714      1,368,841
TOTAL STOCKHOLDERS' EQUITY                         4,015,933      3,766,548
NONCONTROLLING INTERESTS                           8,321          5,368
TOTAL EQUITY                                       4,024,254      3,771,916
Total liabilities and equity                       $  5,494,968   $ 5,140,757

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 September 30,            Nine Months Ended September 30,
              2013                  2012                  2013                   2012
Revenues:
Electric      $ 1,048,370  63.7  %  $ 1,088,586  71.1  %  $ 3,275,732   69.6  %  $ 3,026,872   71.3  %
Power
Natural Gas   552,380      33.6     394,215      25.7     1,297,254     27.6     1,088,777     25.6
and Pipeline
Fiber Optic
Licensing and 44,382       2.7      49,200       3.2      132,233       2.8      131,278       3.1
Other
Consolidated  $ 1,645,132  100.0 %  $ 1,532,001  100.0 %  $ 4,705,219   100.0 %  $ 4,246,927   100.0 %
revenues
Operating
income:
Electric      $ 122,413    11.7  %  $ 137,445    12.6  %  $ 375,772     11.5  %  $ 362,394     12.0  %
Power
Natural Gas   49,873       9.0      23,429       5.9      87,874        6.8      27,949        2.6
and Pipeline
Fiber Optic
Licensing and 14,105       31.8     15,114       30.7     45,289        34.2     45,077        34.3
Other
Corporate and
Non-Allocated (45,313)     N/A      (48,855)     N/A      (131,392)     N/A      (131,151)     N/A
Costs
Consolidated
operating     $ 141,078    8.6   %  $ 127,133    8.3   %  $ 377,543     8.0   %  $ 304,269     7.2   %
income

Backlog
Backlog is not a term recognized under United States generally accepted
accounting principles; however, it is a common measurement used in our
industry. Our methodology for determining backlog may not be comparable to the
methodologies used by other companies.
Our backlog represents the amount of consolidated revenue that Quanta expects
to realize from future work under construction contracts and long-term
maintenance contracts, or master service agreements. These estimates include
revenues from the remaining portion of firm orders not yet completed and on
which work has not yet begun, as well as revenues from change orders, renewal
options, and funded and unfunded portions of government contracts to the
extent that they are reasonably expected to occur. For purposes of calculating
backlog, we include 100% of estimated revenues attributable to consolidated
joint ventures and variable interest entities. The following tables present
Quanta's total backlog by reportable segment as of September 30, 2013,
September 30, 2012 and December 31, 2012 along with an estimate of the backlog
amounts expected to be realized within 12 months of each balance sheet date
(in millions):
           Backlog as of
           September 30, 2013       September 30, 2012    December 31, 2012
           12 Month      Total      12 Month   Total      12 Month   Total
Electric   $  2,918.4    $ 5,322.4  $ 2,856.6  $ 4,803.3  $ 2,864.9  $ 4,918.2
Power
Natural
Gas and    1,305.7       2,220.8    863.3      1,513.6    797.0      1,566.3
Pipeline
Fiber
Optic      140.9         545.2      127.5      469.2      145.0      502.5
Licensing
and Other
Total      $  4,365.0    $ 8,088.4  $ 3,847.4  $ 6,786.1  $ 3,806.9  $ 6,987.0

Quanta Services, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
For the Three and Nine Months Ended September 30, 2013 and 2012
(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, accelerated vesting 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) income tax
contingency releases and audit settlements vary period to period depending on
the level of reserves for uncertain tax positions, the expiration dates under
various federal and state tax statutes of limitations, and the dates on which
tax audits are completed.
                    Three Months Ended               Nine Months Ended
                    September 30,                    September 30,
                    2013              2012           2013           2012
Adjusted diluted
earnings per share
from continuing
operations:
Net income from
continuing
operations          $   92,906        $   83,628     $  235,224     $  187,344
attributable to
common stock (GAAP
as reported)
Adjustments:
    Impact of
income tax
contingency
releases and        (6,552)           (5,185)        (6,552)        (5,185)
certain audit

    settlements
^(a)
    Acquisition     2,546             1,060          3,738          1,961
costs, net of tax
Adjusted net income
from continuing
operations
attributable to     88,900            79,503         232,410        184,120
common stock before
certain non-cash
adjustments
Non-cash
stock-based         4,678             4,047          16,926         12,274
compensation, net
of tax
Amortization of
intangible assets,  4,513             6,740          11,155         18,828
net of tax
Adjusted net income
from continuing
operations
attributable to
common stock for    $   98,091        $   90,290     $  260,491     $  215,222
adjusted diluted
earnings per 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  214,866           213,150        214,178        212,564
per share from
continuing
operations
Effect of dilutive  50                92             51             86
stock options
Weighted average
shares outstanding
for adjusted
diluted earnings    214,916           213,242        214,229        212,650
per share from
continuing
operations
Adjusted diluted
earnings per share  $   0.46          $   0.42       $  1.22        $  1.01
from continuing
operations
^(a) These amounts reflect the elimination of tax benefits primarily
associated with the expiration of various federal and state tax statute of
limitations periods during the third quarter of 2013 and 2012 and certain
income tax audit settlements during the third quarter of 2012. Such benefits
are subject to significant uncertainty surrounding the timing and amount of
their release.

 

SOURCE Quanta Services, Inc.

Website: http://www.quantaservices.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement