Quanta Services, Inc. · NYSE:PWR
Quanta Services — Investor Presentation (December 2014)
26 slides from Quanta Services's investor presentation, December 2014
Slide 1: Quanta Services Investor Presentation Nov./Dec. 2014
Quanta Services (NYSE: PWR) Investor Presentation Nov. / Dec. 2014
Slide 2: Forward Looking Statement Disclaimer
Forward Looking Statement Disclaimer This presentation (and oral statements regarding the subjects of this presentation) includes forward‐looking statements intended to qualify under the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. These forward‐l
Slide 3: Key Takeaways
Key Takeaways Quanta is a growth company North America is in a multiyear investment cycle for infrastructure Quanta provides infrastructure solutions with unmatched scope and scale Quanta is the leading specialty infrastructure solutions provider in the markets we serve Quanta Services Inves
Slide 4: Company Overview: Focused on Energy Infrastructure
Company Overview Focused on Energy Infrastructure Estimated Revenue by Contract Type* 2013 Consolidated Revenue = $6.5 Billion Fixed Price Cost Plus 46% 20% Oil & Gas Electric Power Infrastructure 69% 29% Unit Price 34% Estimated Revenue by Project Type* Fiber Optic Licensing & MSA Other 27% 2% New
Slide 5: Quanta Services Today
Company Overview Quanta Services Today Industry leading safety performance Recognized market leader in electric power and oil and gas pipeline construction in North America Entrepreneurial business model and culture Broad, self‐performing platform developed through organic growth and acquisi
Slide 6: Sophisticated Infrastructure Solutions
Sophisticated Infrastructure Solutions Unmatched Resources & Expertise Electric Power Services Differentiators Transmission Largest T&D Contractor in North Distribution America Substations Reputation & Track Record Emergency Restoration Safe Project Execution Energized Services Unm
Slide 7: Multiyear Infrastructure Investment Cycle
Multiyear Infrastructure Investment Cycle All Segments Have Double Digit Growth Opportunities Electric Power ‐ See double digit growth opportunities driven by: Need to repair, replace, upgrade and maintain transmission and distribution infrastructure throughout North America Regulation is driv
Slide 8: Electric Power: Various Estimates Call for Transmission Growth
Electric Power Various Estimates Call for Transmission Growth The North American electric grid requires significant investment due to many decades of underinvestment and changing needs According to The C Three Group, 17 of the most active U.S. utilities based on transmission spending from ‘08‐’1
Slide 9: Electric Power: The Opportunity is More Than Large Transmission
Electric Power The Opportunity is More Than Large Transmission Large transmission gets most of the attention, but there is a lot more going on Strategic relationships account for more than 50% of electric power segment revenues Growing transmission investment associated with coal generation reti
Slide 10: Oil & Gas Infrastructure: Strong North American Production Trends
Oil & Gas Infrastructure Strong North American Oil & Gas Production Trends U.S. Shale Liquids Projections to 2022 U.S. Natural Gas Production by Source Canadian Oil Sands & Conventional (In thousands of barrels per day) 1990‐2040 (trillion cubic feet) Production (Millions of barrels per day) Upside
Slide 11: Approaching Uncharted Territory in North American Pipeline Industry
Oil & Gas Infrastructure Approaching Uncharted Territory in North American Pipeline Industry North America is simultaneously Est. North American Large Diameter experiencing: Mainline Spending ($ Billions) $15.5 Active shale development of gathering infrastructure in the U.S. $11.0 $11.5 $9.3 I
Slide 12: Fiber Optic Licensing & Other: Segment Overview
Fiber Optic Licensing & Other Segment Overview Fiber Optic Licensing Primary Markets Through our Sunesys operating unit, we are a leading provider of fiber infrastructure, managed services, wireless backhaul and high performance NJ/NYC Pittsburgh connectivity in key major metro markets across Chic
Slide 13: Fiber Optic: Expanding Lit Services Offering
Fiber Optic Licensing & Other Growth Opportunity ‐ Expanding Lit Services Offering Lit Services Rationale Growth Strategy Greatly expands addressable market and Continue success‐based expansion with growth opportunity focus on existing metro markets Leverages existing infrastructure by Enhan
Slide 14: Strategies for Differentiation & Growth
Strategies for Differentiation & Growth Initiatives to Grow the Business Over the Next Five Years Establish programs to continuously improve safety, leadership development, operational performance standards and results Safety engrained in Quanta’s culture. Strive for incident free environment
Slide 15: Financial Overview
Financial Overview
Slide 16: Recent Financial Performance: Revenue and EPS
Recent Financial Performance Revenue, GAAP and Adjusted Diluted EPS Has Been Growing For the Years Ended December 31, Revenue GAAP Diluted EPS Adjusted Diluted EPS ($ in millions) (1) $7,800 (1) * $1.87 (2) * $1.98 $6,523 $1.71 $1.54 $1.52 (1) (3) $5,920 $1.52 $1.36 $4,194 $0.76 $0.56 2011 2012 2013
Slide 17: Revenue and Operating Income Margin by Segment
Recent Financial Performance Revenue and Operating Income Margin by Segment For the Years Ended December 31, Electric Power Oil & Gas Infrastructure Fiber Optic Licensing & Other ($ in millions) ($ in millions) ($ in millions) $4,481 $1,870 $4,207 $179 7.4% $172 $1,535 $160 $3,023 3.6% 12.4% $1,011
Slide 18: Strong Backlog
Recent Financial Performance Strong Backlog 12‐Month Backlog Total Backlog ($ in millions) ($ in millions) $9,630 $8,728 $5,249 $5,000 $6,754 $6,987 $3,807 $3,265 12/31/11 12/31/12 12/31/13 9/30/2014 12/31/11 12/31/12 12/31/13 9/30/2014 Electric Power Oil & Gas Infrastructure Fiber Optic Licensing &
Slide 19: Strong Balance Sheet to Support Growth Strategies
Recent Financial Performance Strong Balance Sheet to Support Growth Strategies ($ in millions) 12/31/2011 12/31/2012 12/31/2013 9/30/2014 Cash and Equivalents $ 315 $ 395 $ 489 $ 144 Other Debt ‐‐ ‐‐ 2 1 Long‐Term Debt ‐‐ ‐‐ ‐‐ 7 Credit Facility ‐‐ ‐‐ ‐‐ 77 Total Debt ‐‐ ‐‐ 2 85 Total Equity 3,389 3
Slide 20: Historical Cash Flow
Recent Financial Performance Historical Cash Flow Cash Flow from Continuing Free Cash Flow from Operations Continuing Operations* For the Years Ending December 31, For the Years Ending December 31, ($ in millions) ($ in millions) $447 $198 $204 $167 $51 2011 2012 2013 2011 2012 2013 ‐$30 *Net cash p
Slide 21: 2010–2013 Use of Capital & Go-Forward Priorities
Recent Financial Performance 2010 – 2013 Use of Capital & Go‐Forward Priorities Use of Capital Priorities Working Capital (Amounts in millions) Capital Expenditures $221 $5 Acquisitions $265 Investments $1,035 Stock Repurchase $719 $700 $562 $489 $293 $124 $39 Ending Cash Cash from Net Pro
Slide 22: Summary: Positioned for Continued Growth
Summary Positioned for Continued Growth Quanta is in the midst of a multiyear growth cycle Significant electric transmission and distribution investment in U.S. and Canada Multiyear pipeline and related infrastructure build out of North American unconventional shales, Canadian oil sands and Au
Slide 23: Investor Contact
Investor Contact Corporate Office Kip Rupp, CFA 2800 Post Oak Blvd., Suite 2600 Vice President – Investor Relations Houston, TX 77056 713‐341‐7260 713‐629‐7600 investors@quantaservices.com www.quantaservices.com Download the Quanta Services IR App Available for iPhone, iPad & Android mobile devices
Slide 24: Appendix: Reconciliation of Oil & Gas Segment Operating Income
Appendix Reconciliation of Oil & Gas Infrastructure Services Segment Operating Income, As Adjusted ($ in millions) 12/31/2011 Revenues $ 1,011.2 Operating income as reported (78.3) Add back: Multi‐employer pension plan 32.6 Operating income, as adjusted $ (45.7) Operating income margin, as reported
Slide 25: Forward-Looking Statement Disclaimer
Forward‐Looking Statement Disclaimer This presentation (and oral statements regarding the subject matter of this presentation) includes “forward‐looking statements” reflecting assumptions, expectations, projections, intentions or beliefs about future events that are intended to qualify for the "safe
Slide 26: Forward-Looking Statement Disclaimer
Forward‐Looking Statement Disclaimer Competition in our business, including our ability to effectively compete for new projects Our ability to successfully identify, complete, integrate and realize synergies from and market share; acquisitions; Potential failure of renewable energy initiatives
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