Quanta Services, Inc. · NYSE:PWR
Quanta Services — Investor Presentation (November 2013)
24 slides from Quanta Services's investor presentation, November 2013
Slide 1: The Power of One
The Power of One Investor Presentation November 2013
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 North America is in the early stages of a multiyear infrastructure investment cycle, particularly for electric and pipeline infrastructure End‐market trends and strong backlog provide Quanta with attractive near and long‐term growth opportunities We believe Quanta is the best pos
Slide 4: Company Overview: Focused on Energy Infrastructure
Company Overview Focused on Energy Infrastructure Estimated Revenue by Contract Type* 2012 Consolidated Revenue = $5.9 Billion Cost Plus Unit 20% Price 37% Fixed Price 43% Natural Gas & Pipeline Electric Power 26% Estimated Revenue by Project Type* 71% MSA 26% Fiber Optic New Maint. & Construction R
Slide 5: Company Overview: Focused on Energy Infrastructure
Company Overview Focused on Energy Infrastructure Electric Power Services Differentiators Transmission Largest T&D Contractor in North Distribution America Substations Reputation & Track Record Emergency Restoration Safe Execution Energized Services Unmatched Solutions Scope EPC
Slide 6: Primary Growth Drivers: Electric Power
Primary Growth Drivers Electric Power – Robust Transmission Trends for Several Years The North American electric grid requires significant investment due to many decades of underinvestment and changing needs Transmission spending has increased to +3x historical spending levels in North America –
Slide 7: Primary Growth Drivers: Pipeline
Primary Growth Drivers Pipeline – Shale & Oil Sands Driving Demand for Pipelines Due to low natural gas prices and attractive liquids prices, producers are focusing capex and production to oil and natural gas liquids. Liquid rich or “wet” shales are currently the most active Estimates call for g
Slide 8: Company Overview: Fiber Optic Licensing & Other
Company Overview Fiber Optic Licensing & Other Fiber Licensing Unit Description Fiber Network Locations Sunesys is a leading provider of dark fiber network infrastructure, managed services and high performance connectivity in major metropolitan markets across the United States. Customer segments
Slide 9: Company Overview: Fiber Optic Licensing & Other
Company Overview Fiber Optic Licensing & Other Favorable Characteristics Growth Strategy Recurring revenue and cash flow Continue to strategically invest in Strong margins, predictability and network development to maximize revenue, cash flow and enhance the attractive returns value of the ass
Slide 10: Maintaining Leadership in a Vibrant Market
Maintaining Leadership in a Vibrant Market Key Thrusts Perform in Core Markets Continue to safely execute in our core businesses and meet or exceed project timelines and budgets Largest transmission and distribution specialty contractor in North America Largest pipeline specialty contractor in
Slide 11: Financial Overview
Financial Overview QUANTA SERVICES
Slide 12: Recent Financial Performance: Revenue and EPS
Recent Financial Performance Revenue, GAAP and Adjusted Diluted EPS For the Years Ended December 31, Revenue GAAP Diluted EPS Adjusted Diluted EPS ($ in millions) $1.65 * $6,400 * $1.50 * $1.52 $5,920 $1.36 $4,194 $3,629 $0.88 $0.67 $0.76 $0.56 2010 2011 2012 2013 Est. 2010 2011 2012 2013 Est. 2010
Slide 13: Revenue and Operating Income Margin by Segment
Recent Financial Performance Revenue and Operating Income Margin by Segment For the Years Ended December 31, Electric Power Natural Gas & Pipeline Fiber Optic Licensing & Other ($ in millions) ($ in millions) ($ in millions) $4,207 $208 $1,535 $1,393 $179 $3,023 $160 8.5% $1,011 33.5% 34.2% $2,029 1
Slide 14: Strong Backlog Profile
Recent Financial Performance Strong Backlog Profile 12‐Month Backlog Total Backlog ($ in millions) ($ in millions) $8,088 $4,365 $6,754 $6,987 $3,807 $5,971 $3,265 $2,667 12/31/10 12/31/11 12/31/12 9/30/13 12/31/10 12/31/11 12/31/12 9/30/13 Electric Power Natural Gas & Pipeline Fiber Optic Licensing
Slide 15: Strong Balance Sheet to Support Growth Strategies
Recent Financial Performance Strong Balance Sheet to Support Growth Strategies ($ in millions) 12/31/2010 12/31/2011 12/31/2012 9/30/2013 Cash and Equivalents $ 539.2 $ 315.3 $ 394.7 $ 309.2 Other Debt 1.3 0.1 ‐‐ 2.6 Long‐Term Debt ‐‐ ‐‐ ‐‐ ‐‐ Total Debt 1.3 0.1 0.0 2.6 Total Equity 3,366.9 3,389.3
Slide 16: 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, and Nine Months Ending September 30, 2013 and Nine Months Ending September 30, 2013 ($ in millions) ($
Slide 17: Capital Allocation
Capital Allocation Historical Use of Capital & Go‐Forward Priorities Use of Capital Priorities Working Capital (Amounts in millions) Capital Expenditures $265 $5 Acquisitions Strategic Use of Balance Sheet $588 Stock Repurchase $279 Dividends $700 $470 $395 $293 $89 $32 Ending Cash Cash
Slide 18: Summary: Positioned for Growth
Summary Positioned for Growth Quanta is in the early stages of a multiyear growth cycle due to increased infrastructure spending in North America – Significant electric transmission investment in U.S. and Canada – Multi‐year pipeline infrastructure build out of unconventional shales and Canadian o
Slide 19: Investor Contact
Investor Contact Corporate Office Kip Rupp, CFA 2800 Post Oak Blvd., Suite 2600 Vice President – Investor Relations Houston, TX 77056 713‐341‐7260 713‐629‐7600 investors@quantaservices.com www.quantaservices.com Download the Quanta Services IR App Available for iPhone, iPad & Android mobile devices
Slide 20: Appendices: Reconciliation of Non-GAAP Financial Items
Appendices: Reconciliation of Non‐GAAP Financial Items 20
Slide 21: Reconciliation of Operating Income, As Adjusted
Appendix Reconciliation of Operating Income, As Adjusted Natural Gas & Pipeline Segment Operating Income & Margin, As Adjusted Year Ended ($ in Millions) 12/31/2011 Revenues $ 1,011.2 Operating loss as reported (78.3) Add Back: Multi‐employer pension plan withdrawal expense 32.6 Operating income as
Slide 22: Non-GAAP Financial Measures
Appendix Non‐GAAP Financial Measures The non‐GAAP measures in this presentation 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 res
Slide 23: 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 h
Slide 24: Forward-Looking Statement Disclaimer
Forward‐Looking Statement Disclaimer • Competition in our business, including our ability to effectively compete for new projects • Risks associated with operating in international markets, including instability of foreign and market share; governments, currency fluctuations, tax and investment stra
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