HOUSTON, April 30, 2015 /PRNewswire/ -- Quanta
Services, Inc. (NYSE: PWR) today announced results for the three
months ended Mar. 31, 2015. Revenues
in the first quarter of 2015 were $1.89
billion compared to revenues of $1.76
billion in the first quarter of 2014. Net income
attributable to common stock was $53.5
million, or $0.25 per diluted
share, in the first quarter of 2015, versus net income attributable
to common stock of $54.4 million, or
$0.25 per diluted share, in the first
quarter of 2014. Adjusted diluted earnings per share (a non-GAAP
measure) was $0.31 for the first
quarter of 2015 compared to $0.44 for
the first quarter of 2014.
"We remain confident in the market dynamics driving our business
despite the shortfall in our first quarter results," said
Jim O'Neil, president and chief
executive officer of Quanta Services. "The multi-year drivers of
investment in electric power infrastructure by our customers remain
firmly in place. In our oil and gas infrastructure segment, our
backlog is at a record level, and we believe additional mainline
contract awards will push backlog to higher levels by
year-end."
Mr. O'Neil added, "We also announced this morning that we have
entered into a definitive agreement to sell our fiber optic
licensing operations to Crown Castle International Corp. for
approximately $1 billion in cash.
This transaction enables us to enhance our strategic focus on
energy infrastructure markets, which we believe will undergo
substantial development in the coming years."
Included in net income attributable to common stock for the
first quarter of 2014 is $38.8
million ($25.8 million net of
tax) of incremental selling, general and administrative expense
associated with an arbitration decision related to a contract
dispute on a 2010 directional drilling project. The net impact of
this expense on Quanta's first quarter of 2014 results was a
$0.12 reduction in diluted earnings
per share. Adjusted diluted earnings per share is calculated
as GAAP diluted earnings per share before acquisition and
integration costs, as well as certain non-cash items such as
amortization of intangible assets and non-cash compensation
expense, and certain other items that affect comparability of
results between periods. See the attached table for a
reconciliation of non-GAAP measures to the reported GAAP
measures.
Quanta completed three acquisitions in the first three months of
2015 and four acquisitions in the last nine months of 2014.
Therefore, the results for the three months ended March 31, 2015 include these acquisitions from
their respective acquisition dates and are compared to the
pre-acquisition historical results of Quanta for the three months
ended March 31, 2014.
RECENT HIGHLIGHTS
- Entered Into Definitive Agreement to Sell Fiber Optic
Licensing Operations for $1 Billion
in Cash - Today Quanta announced that it has entered into a
definitive agreement to sell its fiber optic licensing operations
to Crown Castle International Corp. (NYSE: CCI) for approximately
$1 billion in cash. The transaction
is subject to various regulatory approvals and other customary
conditions prior to closing, but is expected to close by the end of
this year. Quanta estimates after tax net proceeds from the
transaction of approximately $800
million.
- Stock Repurchased - During the first quarter of 2015,
Quanta repurchased approximately 6.7 million shares of its common
stock in the open market for a total cost of approximately
$182.0 million. Through March 31, 2015, Quanta has purchased
approximately 9.7 million shares of common stock for a total cost
of approximately $275.5 million, leaving approximately
$224.5 million remaining under the
company's existing $500 million stock
repurchase program.
- Selected by SemGroup for the Maurepas Pipelines Project
- In March 2015, SemGroup
Corporation selected Quanta to provide turnkey engineering,
procurement and construction services for the Maurepas Pipelines
Project. The Maurepas Pipelines Project involves three separate
pipelines measuring approximately 100 miles in aggregate,
consisting of 24-inch, 12-inch and 6-inch diameter pipe, and three
new pumping stations. Engineering, permitting, right-of-way
acquisition and materials procurement has commenced. Construction
is expected to begin in the third quarter of 2015, and completion
is expected in the third quarter of 2016.
- Acquired two companies in the second quarter of 2015 -
During the second quarter of 2015, Quanta has acquired two
companies. These acquisitions included a power line construction
contractor in the United States
and an electrical engineering company in Canada. The aggregate consideration paid for
these acquisitions consisted of approximately $25.4 million in cash, subject to post-closing
net working capital and other adjustments.
OUTLOOK
The overall outlook for Quanta's business is positive. However,
regulatory, permitting and other challenges may impact project
timing. Therefore, Quanta's financial outlook for revenues, margins
and earnings reflects management's efforts to properly align these
uncertainties with the backlog the company is executing on and the
opportunities expected to materialize during 2015. The following
forward-looking statements are based on current expectations, and
actual results may differ materially.
Quanta expects revenues for the second quarter of 2015 to range
between $1.95 billion and $2.05
billion and diluted earnings per share to be $0.36 to $0.42. Amortization of intangibles and
non-cash stock-based compensation expense are forecasted to be
approximately $8.9 million and
$10.6 million for the second quarter
of 2015. Quanta expects adjusted diluted earnings per share (a
non-GAAP measure) for the second quarter of 2015 to be $0.42 to $0.48. This non-GAAP measure is
estimated on a basis similar to the calculations of historical
adjusted diluted earnings per share presented in this press
release.
Quanta expects revenues for the full year 2015 to range between
$8.1 billion and $8.5 billion and
diluted earnings per share to be $1.70 to
$1.90. Quanta expects adjusted diluted earnings per share (a
non-GAAP measure) for the full year 2015 to be $1.94 to $2.14. These earnings per share ranges
reflect the lower than anticipated financial results in the first
quarter. They also reflect a higher effective tax rate for the full
year than originally anticipated due to a lower proportion of
income earned from international jurisdictions, which are taxed at
lower statutory rates, and exclude the benefit of potential
additional share repurchases during the remainder of the year.
Amortization of intangibles and non-cash stock-based compensation
expense are forecasted to be approximately $35.5 million and $41.5
million for the full year 2015.
As the timing of the close of the transaction with Crown Castle
is uncertain, our financial outlook includes the contribution of
our fiber optic licensing operations for the entire year. For the
twelve month period ending December 31,
2015, Quanta's fiber optic licensing operations are
estimated to generate approximately $105
million to $110 million in revenue and contribute
$0.12 to $0.13 in diluted earnings
per share.
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 in 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 April 30, 2015, at 9:30
a.m. Eastern Time. To participate in the call, dial
1-913-312-1491 at least 10 minutes before the conference call
begins and provide the conference call ID 8518069 or ask for the
Quanta Services First Quarter 2015 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 Internet, 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. A replay will also be available until
12:30 p.m. Eastern time on
May 7, 2015, and may be accessed at
1-719-457-0820, using the conference call ID 8518069. 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 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 Quanta's
IR app.
ABOUT QUANTA SERVICES
Quanta Services is a leading specialized contracting services
company, delivering infrastructure solutions for the electric power
and oil and gas industries. Quanta's comprehensive services include
designing, installing, repairing and maintaining energy
infrastructure. Additionally, in certain markets, Quanta licenses
fiber optic telecommunications infrastructure, offers lit network
management services and provides related design, procurement,
construction and maintenance services. With operations throughout
the United States, Canada and Australia and in select other 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 press 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 potential benefits
of the sale of Quanta's fiber optic licensing operations; projected
gains or net proceeds or any expected value associated with the
sale of Quanta's fiber optic licensing operations; expectations
regarding the use of proceeds from the sale of Quanta's fiber optic
licensing operations; the anticipated closing date for the sale of
Quanta's fiber optic licensing operations; 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 anticipated commencement and completion
dates for any projects awarded; the development of oil and natural
gas mainline pipe projects and their impact on Quanta's business or
the demand for Quanta's services; the level of oil, natural gas and
natural gas liquids prices and their impact on Quanta's business or
demand for Quanta's services; 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 business
plans or financial condition of Quanta's 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 known and unknown risks and
uncertainties that are difficult to predict or beyond Quanta's
control, including, among others, the possibility that one or more
closing conditions for the sale of Quanta's fiber optic licensing
operations may not be satisfied or waived; the possibility that one
or more regulatory approvals required prior to closing of the sale
of Quanta's fiber optic licensing operations may not be obtained;
the effects of disruption from the sale of Quanta's fiber optic
licensing operations; the potential for claims or damages
associated with the sale of Quanta's fiber optic licensing
operations, including as a result of indemnity claims following
closing of the transaction; 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 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 Quanta bids or is 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 further
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; the outcome of pending or threatened litigation; 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 Quanta to liability and/or
harm to its reputation for acts or omissions by partners; Quanta's
inability or failure to comply with the terms of its 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; Quanta's customers'
capital programs and the resulting impact on demand for Quanta's
services; the future development of natural resources in shale
formations; 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 Quanta's 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, receivables and other
intangible assets or investments; growth outpacing Quanta's
decentralized management and infrastructure; requirements relating
to governmental regulation and changes thereto; inability to
enforce Quanta's 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; Quanta's 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 Quanta's services; the impact of increased healthcare costs
arising from healthcare reform legislation; the impact of
significant fluctuations in foreign currency exchange rates; and
other risks and uncertainties detailed in Quanta's Annual Report on
Form 10-K for the year ended Dec. 31,
2014 and any other documents that Quanta files with the
Securities and Exchange Commission (SEC). 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. 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. Quanta further expressly disclaims any
written or oral statements made by any third party regarding the
subject matter of this press release.
Quanta Services,
Inc. and Subsidiaries
|
Condensed
Consolidated Statements of Operations
|
For the Three
Months Ended March 31, 2015 and 2014
|
(In thousands, except
per share information)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2015
|
|
2014
|
Revenues
|
$
|
1,886,956
|
|
$
|
1,762,574
|
Cost of services
(including depreciation)
|
1,634,295
|
|
1,490,503
|
Gross
profit
|
252,661
|
|
272,071
|
Selling, general and
administrative expenses
|
150,238
|
|
134,483
|
Arbitration
expense
|
—
|
|
38,848
|
Amortization of
intangible assets
|
8,706
|
|
8,245
|
Operating
income
|
93,717
|
|
90,495
|
Interest
expense
|
(1,400)
|
|
(982)
|
Interest
income
|
455
|
|
1,545
|
Other income
(expense), net
|
(212)
|
|
643
|
Income before income
taxes
|
92,560
|
|
91,701
|
Provision for income
taxes
|
34,375
|
|
33,053
|
Net income
|
58,185
|
|
58,648
|
Less: Net income
attributable to non-controlling interests
|
4,701
|
|
4,240
|
Net income
attributable to common stock
|
$
|
53,484
|
|
$
|
54,408
|
|
|
|
|
Earnings per share
attributable to common stock - basic and diluted
|
$
|
0.25
|
|
$
|
0.25
|
|
|
|
|
Weighted average
shares used in computing earnings per share:
|
|
|
|
Basic
|
215,473
|
|
219,033
|
Diluted
|
215,490
|
|
219,075
|
Quanta Services,
Inc. and Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
(In
thousands)
|
(Unaudited)
|
|
|
March
31,
|
|
December
31,
|
|
2015
|
|
2014
|
ASSETS
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$
|
135,534
|
|
$
|
190,515
|
Accounts receivable,
net
|
1,642,675
|
|
1,812,539
|
Costs and estimated
earnings in excess of billings on uncompleted contracts
|
341,190
|
|
290,447
|
Inventories
|
45,824
|
|
38,921
|
Prepaid expenses and
other current assets
|
222,417
|
|
221,554
|
Total current
assets
|
2,387,640
|
|
2,553,976
|
PROPERTY AND
EQUIPMENT, net
|
1,480,097
|
|
1,480,128
|
OTHER ASSETS,
net
|
98,557
|
|
85,842
|
OTHER INTANGIBLE
ASSETS, net
|
252,055
|
|
260,593
|
GOODWILL
|
1,922,485
|
|
1,931,485
|
Total
assets
|
$
|
6,140,834
|
|
$
|
6,312,024
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Current maturities of
long-term debt and short-term borrowings
|
$
|
9,440
|
|
$
|
8,876
|
Accounts payable and
accrued expenses
|
874,627
|
|
877,336
|
Billings in excess of
costs and estimated earnings on uncompleted contracts
|
240,243
|
|
251,113
|
Total current
liabilities
|
1,124,310
|
|
1,137,325
|
LONG-TERM DEBT AND
NOTES PAYABLE, net of current maturities
|
115,002
|
|
72,489
|
DEFERRED INCOME TAXES
AND OTHER NON-CURRENT LIABILITIES
|
590,769
|
|
576,670
|
Total
liabilities
|
1,830,081
|
|
1,786,484
|
TOTAL STOCKHOLDERS'
EQUITY
|
4,297,488
|
|
4,514,473
|
NON-CONTROLLING
INTERESTS
|
13,265
|
|
11,067
|
TOTAL
EQUITY
|
4,310,753
|
|
4,525,540
|
Total liabilities and
equity
|
$
|
6,140,834
|
|
$
|
6,312,024
|
Quanta Services,
Inc. and Subsidiaries
|
Supplemental
Data
|
For the Three
Months Ended March 31, 2015 and 2014
|
(Unaudited)
|
|
Segment
Results
|
Quanta reports its
results under three reporting segments: (1) Electric Power
Infrastructure Services, (2) Oil and Gas Infrastructure Services
and (3) Fiber Optic Licensing and Other, as set forth below (in
thousands, except percentages).
|
|
|
Three Months Ended
March 31,
|
|
2015
|
|
2014
|
Revenues:
|
|
|
|
|
|
|
|
Electric Power
Infrastructure
|
$
|
1,225,743
|
|
|
65.0
|
%
|
|
$
|
1,278,168
|
|
|
72.5
|
%
|
Oil and Gas
Infrastructure
|
621,094
|
|
|
32.9
|
|
|
445,857
|
|
|
25.3
|
|
Fiber Optic Licensing
and Other
|
40,119
|
|
|
2.1
|
|
|
38,549
|
|
|
2.2
|
|
Consolidated
revenues
|
$
|
1,886,956
|
|
|
100.0
|
%
|
|
$
|
1,762,574
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
Operating income
(loss):
|
|
|
|
|
|
|
|
Electric Power
Infrastructure
|
$
|
107,932
|
|
|
8.8
|
%
|
|
$
|
144,412
|
|
|
11.3
|
%
|
Oil and Gas
Infrastructure
|
24,147
|
|
|
3.9
|
|
|
(21,172)
|
|
(a)
|
(4.7)
|
|
Fiber Optic Licensing
and Other
|
11,532
|
|
|
28.7
|
|
|
12,109
|
|
|
31.4
|
|
Corporate and
Non-Allocated Costs
|
(49,894)
|
|
|
N/A
|
|
(44,854)
|
|
|
N/A
|
Consolidated operating
income
|
$
|
93,717
|
|
|
5.0
|
%
|
|
$
|
90,495
|
|
|
5.1
|
%
|
|
(a) Included in
operating loss for the Oil and Gas Infrastructure Services segment
for the first quarter of 2014 is the impact of a $38.8 million
expense associated with an arbitration decision associated with a
contract dispute on a 2010 directional drilling project.
|
Backlog
Backlog is not a term recognized under United States generally accepted accounting
principles (GAAP); however, it is a common measurement used in the
industry. Quanta's methodology for determining backlog may not be
comparable to the methodologies used by other companies.
Quanta's backlog represents the amount of consolidated revenue that
it expects to realize from future work under construction
contracts, long-term maintenance contracts, master service
agreements and licensing 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,
Quanta includes 100% of estimated revenues attributable to
consolidated joint ventures and variable interest entities. The
following table presents Quanta's total backlog by reportable
segment as of March 31, 2015, December 31, 2014 and
March 31, 2014, 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
|
|
March 31,
2015
|
|
December 31,
2014
|
|
March 31,
2014
|
|
12
Month
|
|
Total
|
|
12
Month
|
|
Total
|
|
12
Month
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Electric Power
Infrastructure
|
$
|
3,184.0
|
|
$
|
6,366.8
|
|
$
|
3,339.2
|
|
$
|
6,628.0
|
|
$
|
3,363.5
|
|
$
|
6,187.1
|
Oil and Gas
Infrastructure
|
1,862.7
|
|
2,679.4
|
|
1,824.6
|
|
2,520.6
|
|
1,509.3
|
|
2,281.7
|
Fiber Optic Licensing
and Other
|
149.0
|
|
617.9
|
|
153.0
|
|
613.9
|
|
130.1
|
|
586.0
|
Total
|
$
|
5,195.7
|
|
$
|
9,664.1
|
|
$
|
5,316.8
|
|
$
|
9,762.5
|
|
$
|
5,002.9
|
|
$
|
9,054.8
|
Quanta Services,
Inc. and Subsidiaries
|
Reconciliation of
Non-GAAP Financial Measures
|
For the Three
Months Ended March 31, 2015 and 2014
|
(In thousands, except
per share information)
|
(Unaudited)
|
|
The non-GAAP measure
of adjusted diluted earnings per share 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 stock-based compensation expense
may vary due to acquisition activity, factors influencing the
estimated fair value of performance-based awards, 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)
the expense associated with the arbitration decision is not a
regularly occurring operational item.
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2015
|
|
2014
|
Adjusted diluted
earnings per share:
|
|
|
|
Net income
attributable to common stock (GAAP as reported)
|
$
|
53,484
|
|
$
|
54,408
|
Adjustments, net of
income taxes:
|
|
|
|
Arbitration expense (a)
|
—
|
|
25,822
|
Acquisition and integration costs
|
1,232
|
|
3,628
|
Adjusted net income
attributable to common stock before certain non-cash
adjustments
|
54,716
|
|
83,858
|
Non-cash stock-based
compensation, net of income taxes
|
6,076
|
|
6,282
|
Amortization of
intangible assets, net of income taxes
|
5,858
|
|
5,195
|
Adjusted net
income attributable to common stock for adjusted diluted earnings
per share
|
$
|
66,650
|
|
$
|
95,335
|
|
|
|
|
Calculation of
weighted average shares for adjusted diluted earnings per
share:
|
|
|
|
Weighted average
shares outstanding for basic earnings per share
|
215,473
|
|
219,033
|
Effect of dilutive
stock options
|
17
|
|
42
|
Weighted average
shares outstanding for adjusted diluted earnings per
share
|
215,490
|
|
219,075
|
Adjusted diluted
earnings per share
|
$
|
0.31
|
|
$
|
0.44
|
|
(a) To eliminate the
expense recorded in the first quarter of 2014 resulting from an
arbitration decision associated with a contract dispute on a 2010
directional drilling project.
|
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
|
|
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SOURCE Quanta Services, Inc.