Quanta Services reports 2012 second quarter results

HOUSTON, Aug. 2, 2012 /PRNewswire/ — Quanta Services, Inc. (NYSE: PWR) today announced results for the three and six months ended June 30, 2012. Revenues in the second quarter of 2012 were $1.52 billion compared to revenues of $1.01 billion in the second quarter of 2011.

Net income attributable to common stock was $65.5 million, or $0.31 per diluted share, in the second quarter of 2012, versus net income attributable to common stock of $31.8 million, or $0.15 per diluted share, in the second quarter of 2011.  Adjusted diluted earnings per share (a non-GAAP measure) were $0.36 for the second quarter of 2012 compared to $0.19 for the second quarter of 2011.

Adjusted diluted earnings per share are GAAP diluted earnings per share before the impact of non-cash items such as amortization of intangible assets and non-cash compensation expense, all net of tax, as shown in the detailed reconciliation in the attached table.

“Fifty-eight percent revenue growth in the first six months of this year reflects our ability to provide skilled resources to our customers in a tight labor market with increasing demand for our electric power and pipeline services. As a result of this demand, we are raising our guidance for the year,” said Jim O’Neil, president and chief executive officer of Quanta Services. “Our pipeline segment showed meaningful improvement in the quarter despite no revenues from large diameter pipeline projects. We expect significant contributions from this segment as several large diameter pipeline projects are awarded and move to construction in 2013.”

Revenues for the first six months of 2012 were $2.94 billion compared to revenues of $1.86 billion in the first half of 2011. For the first six months of 2012, net income attributable to common stock was $111.2 million, or $0.52 per diluted share.  This compares to net income attributable to common stock of $14.2 million, or $0.07 per diluted share, for the first six months of last year.  Adjusted diluted earnings per share were $0.63 for the first six months of 2012 compared to $0.14 for the first six months of 2011. See the attached table for a reconciliation of non-GAAP measures to the reported GAAP measures.

RECENT HIGHLIGHTS

  • Selected by ATCO Electric for Hanna Region Transmission Development Project – Earlier this week, Quanta announced that ATCO Electric selected Valard Construction, a Quanta Services company, to install transmission infrastructure for ATCO Electric’s Hanna Region Transmission Development Project. Under the terms of the contract, Valard will install approximately 149 miles of 240-kilovolt transmission infrastructure in the Hanna region of southeast Alberta, Canada. Valard crews have mobilized to begin the project, which is expected to be completed in 2013.
  • Expanded Master Agreement with ETT for CREZ Transmission Construction – In May, Quanta announced the expansion of its master agreement regarding Competitive Renewable Energy Zone (CREZ) projects assigned to Electric Transmission Texas, LLC (ETT) by the Public Utility Commission of Texas. Under the expanded master agreement, Quanta has the exclusive right initially to negotiate the construction of the entire 460 miles of new 345-kilovolt transmission line projects in west Texas. Quanta previously had initial bidding rights to approximately 250 miles of the projects.

OUTLOOK

The overall outlook for Quanta’s business is positive, resulting in improved expectations for the full year 2012.  However, the company’s customers continue to experience regulatory and permitting challenges on projects and economic conditions continue to create some uncertainty. It is difficult for management to predict the timing or extent of the impact that these issues may have on demand for Quanta’s services, particularly in the near-term. The following forward-looking statements are based on current expectations, and actual results may differ materially.

Quanta expects revenues for the third quarter of 2012 to range between $1.6 billion and $1.7 billion and diluted earnings per share to be $0.34 to $0.37. Quanta expects adjusted diluted earnings per share (a non-GAAP measure) for the third quarter of 2012 to be $0.39 to $0.42. This non-GAAP measure is estimated on a similar basis as the calculations of historical adjusted diluted earnings per share presented in this release, adjusting for amortization of intangibles and non-cash stock compensation expense, which are forecasted to be approximately $10.4 million and $7.1 million.

Quanta expects revenues for the full year 2012 to range between $5.9 billion and $6.1 billion. Diluted earnings per share for the full year 2012 are estimated to be between $1.15 and $1.25. Quanta expects adjusted diluted earnings per share for the full year 2012 to range from $1.35 to $1.45. Amortization of intangibles and non-cash stock compensation expense are forecasted to be approximately $67.0 million for the full year 2012.