CCI Crown Castle Inc

HOUSTON, Aug. 4, 2015 /PRNewswire/ -- Quanta Services, Inc. (NYSE: PWR) announced today that it has closed the sale of its fiber optic licensing operations to Crown Castle International Corp. (NYSE: CCI) for approximately $1 billion in cash, resulting in approximately $830 million in after-tax net proceeds. Quanta will discuss the priorities for the use of proceeds from the transaction on its second quarter 2015 earnings conference call tomorrow morning.

"This transaction unlocked the substantial value in our fiber optic licensing operations and enables us to enhance our strategic focus on energy infrastructure markets, which we believe will undergo substantial development in the coming years," said Jim O'Neil, president and chief executive officer of Quanta Services. "We again want to thank our former fiber optic licensing operations employees for their contributions to our organization and wish them well in their future as part of Crown Castle."

As a result of closing the transaction, Quanta expects to record an estimated net after-tax gain of approximately $175 million, or approximately $0.84 per diluted share, in the third quarter of 2015.

AFFECTED OPERATIONS FINANCIAL INFORMATION
The fiber optic licensing operations will be presented as discontinued operations in the company's financial statements as of June 30, 2015 and for the three and six month periods then ended, as well as in the Company's annual 2015 financial results. As a result, reported second quarter and annual 2015 revenues and results from continuing operations will exclude these operations, whereas Quanta's previous financial expectations included the results of the fiber optic licensing operations. Prior to these operations becoming discontinued operations, Quanta's annual guidance for the twelve-month period ending December 31, 2015 was inclusive of these fiber optic licensing operations, which were estimated to generate approximately $105 million to $110 million in revenue and $0.12 to $0.13 in diluted earnings per share. Quanta will revise its historical financial statements and intends to provide certain unaudited recast financial results reflecting these discontinued operations for investors and the investment community within the required disclosure period. Quanta's other operations that were previously included in the Fiber Optic Licensing and Other segment and that were not sold in this transaction will be reflected in the Electric Power Infrastructure Services segment.

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. 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 any oral statements regarding the subject matter of this press release) 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, the potential benefits of the transaction; the projected gains or net proceeds of the transaction or any expected value associated with the transaction; expectations regarding the use of proceeds; future capital allocation initiatives; 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; Quanta's plans and strategies; and prospective growth in the demand for electric power and oil and gas infrastructure; 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 or unknown risks and uncertainties that are difficult to predict or beyond the control of Quanta, including, among others, the business, accounting or other effects from the transaction; the effects of industry, economic or political conditions outside of the control of Quanta; the failure to realize the anticipated value of the transaction; quarterly variations in operating results; adverse economic and financial conditions, including weakness in the capital markets; the potential for claims or damages associated with the transaction, including as a result of indemnity claims following closing of the transaction; trends and growth opportunities in the industries Quanta serves; the effect of natural gas, natural gas liquids and oil prices on Quanta's customers' capital programs and the resulting impact on demand for services and growth opportunities; the future development of natural resources in unconventional shale formations; Quanta's ability to generate internal growth; competition in Quanta's business, including the ability to effectively compete for new projects and market share; estimates and assumptions in determining financial results; and other risks and uncertainties detailed in Quanta's Annual Report on Form 10-K for the year ended December 31, 2014, Quanta's Quarterly Report on Form 10-Q for the quarter ended Mar. 31, 2015, and any other documents filed by Quanta 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 the date of this press release.  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.

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SOURCE Quanta Services, Inc.