| Document and Company Information (USD $) | ||
| In Billions, except Share data | 9 Months Ended
Sep. 30, 2009 | Nov. 03, 2009
|
| Document and Company Information [Abstract] | ||
| Entity Registrant Name | QUANTA SERVICES INC | |
| Entity Central Index Key | 0001050915 | |
| Document Type | 10-Q | |
| Document Period End Date | 2009-09-30 | |
| Amendment Flag | false | |
| Current Fiscal Year End Date | --12-31 | |
| Entity Well-known Seasoned Issuer | Yes | |
| Entity Voluntary Filers | No | |
| Entity Current Reporting Status | Yes | |
| Entity Filer Category | Large Accelerated Filer | |
| Entity Public Float | 4.5 | |
| Entity Common Stock, Shares Outstanding | 209,171,196 |
| Condensed Consolidated Balance Sheets (Unaudited) (USD $) | ||
| In Thousands | Sep. 30, 2009
| Dec. 31, 2008
|
| Current Assets: | ||
| Cash and cash equivalents | $584,038 | $437,901 |
| Accounts receivable, net of allowances of $8,802 and $9,766 | 663,277 | 795,251 |
| Costs and estimated earnings in excess of billings on uncompleted contracts | 62,353 | 54,379 |
| Inventories | 31,920 | 25,813 |
| Prepaid expenses and other current assets | 61,372 | 72,063 |
| Total current assets | 1,402,960 | 1,385,407 |
| Property and equipment, net of accumulated depreciation of $330,070 and $373,122 | 692,543 | 635,456 |
| Other assets, net | 31,647 | 33,479 |
| Other intangible assets, net of accumulated amortization of $57,215 and $72,475 | 131,053 | 140,717 |
| Goodwill | 1,375,902 | 1,363,100 |
| Total assets | 3,634,105 | 3,558,159 |
| Current Liabilities: | ||
| Notes payable | 37 | 1,155 |
| Accounts payable and accrued expenses | 338,586 | 400,253 |
| Billings in excess of costs and estimated earnings on uncompleted contracts | 51,465 | 50,390 |
| Total current liabilities | 390,088 | 451,798 |
| Convertible subordinated notes, net of discount of $21,475 and $18,257 | 125,493 | 122,275 |
| Deferred income taxes | 100,836 | 83,861 |
| Insurance and other non-current liabilities | 193,946 | 217,851 |
| Total liabilities | 810,363 | 875,785 |
| Equity: | ||
| Common stock, $.00001 par value, 300,000,000 shares authorized, 199,317,237 and 200,665,654 shares issued and 196,928,203 and 198,067,674 shares outstanding, respectively | 2 | 2 |
| Limited Vote Common Stock, $.00001 par value, 3,345,333 shares authorized, 662,293 shares issued and outstanding | 0 | 0 |
| Additional paid-in capital | 2,836,051 | 2,803,836 |
| Retained earnings (accumulated deficit) | 20,731 | (86,326) |
| Accumulated other comprehensive income (loss) | 1,793 | (2,956) |
| Treasury stock, 2,389,034 and 2,597,980 common shares, at cost | (35,708) | (32,182) |
| Total stockholders' equity | 2,822,869 | 2,682,374 |
| Noncontrolling interest | 873 | 0 |
| Total equity | 2,823,742 | 2,682,374 |
| Total liabilities and equity | $3,634,105 | $3,558,159 |
| Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $) | ||
| In Thousands, except Share data | Sep. 30, 2009
| Dec. 31, 2008
|
| Current Assets: | ||
| Allowance on accounts receivable | $9,766 | $8,802 |
| Accumulated depreciation on property and equipment | 373,122 | 330,070 |
| Accumulated amortization on other intangible assets | 72,475 | 57,215 |
| LIABILITIES AND EQUITY | ||
| Discount on convertible subordinated notes | $18,257 | $21,475 |
| Equity: | ||
| Common stock, par value | 0.00001 | 0.00001 |
| Common stock, shares authorized | 300,000,000 | 300,000,000 |
| Common stock, shares issued | 200,665,654 | 199,317,237 |
| Common stock, shares outstanding | 198,067,674 | 196,928,203 |
| Limited vote common stock, par value | 0.00001 | 0.00001 |
| Limited vote common stock, shares authorized | 3,345,333 | 3,345,333 |
| Limited vote common stock, shares issued | 662,293 | 662,293 |
| Limited vote common stock, shares outstanding | 662,293 | 662,293 |
| Treasury stock, common shares | 2,597,980 | 2,389,034 |
| Condensed Consolidated Statements of Operations (Unaudited) (USD $) | ||||
| In Thousands, except Per Share data | 3 Months Ended
Sep. 30, 2009 | 3 Months Ended
Sep. 30, 2008 | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 |
| Revenues | $780,794 | $1,053,355 | $2,332,703 | $2,858,679 |
| Cost of services (including depreciation) | 633,166 | 867,789 | 1,930,162 | 2,390,546 |
| Gross profit | 147,628 | 185,566 | 402,541 | 468,133 |
| Selling, general and administrative expenses | 71,018 | 80,126 | 217,591 | 227,134 |
| Amortization of intangible assets | 5,448 | 8,998 | 15,260 | 29,464 |
| Operating income | 71,162 | 96,442 | 169,690 | 211,535 |
| Interest expense | (2,816) | (9,837) | (8,437) | (29,153) |
| Interest income | 338 | 2,022 | 2,047 | 8,105 |
| Loss on early extinguishment of debt | 0 | (2) | 0 | (2) |
| Other income (expense),net | 592 | (74) | 826 | 408 |
| Income before income taxes | 69,276 | 88,551 | 164,126 | 190,893 |
| Provision for income taxes | 5,320 | 36,614 | 45,036 | 79,817 |
| Net income | 63,956 | 51,937 | 119,090 | 111,076 |
| Less: Net income attributable to noncontrolling interest | 520 | 0 | 873 | 0 |
| Net income attributable to common stock | $63,436 | $51,937 | $118,217 | $111,076 |
| Earnings per share attributable to common stock: | ||||
| Basic earnings per share | 0.32 | 0.3 | 0.6 | 0.65 |
| Diluted earnings per share | 0.32 | 0.28 | 0.59 | 0.63 |
| Shares used in computing earnings per share: | ||||
| Weighted average basic shares outstanding | 198,608 | 173,007 | 198,618 | 172,168 |
| Weighted average diluted shares outstanding | 205,224 | 203,930 | 198,815 | 196,783 |
| Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | ||||
| In Thousands | 3 Months Ended
Sep. 30, 2009 | 3 Months Ended
Sep. 30, 2008 | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 |
| Cash Flows from Operating Activities: | ||||
| Net income | $63,956 | $51,937 | $119,090 | $111,076 |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities - | ||||
| Depreciation | 20,574 | 19,806 | 60,537 | 57,986 |
| Amortization of intangibles | 5,448 | 8,998 | 15,260 | 29,464 |
| Non-cash interest expense | 1,093 | 4,731 | 3,218 | 13,862 |
| Amortization of debt issuance costs | 230 | 538 | 691 | 1,613 |
| Amortization of deferred revenues | (3,397) | (2,635) | (10,316) | (6,886) |
| (Gain) loss on sale of property and equipment | 883 | (841) | 1,518 | (1,147) |
| Loss on early extinguishment of debt | 0 | 2 | 0 | 2 |
| Provision for doubtful accounts | 156 | 1,328 | 2,088 | 4,230 |
| Provision for insurance receivable | 0 | 0 | 0 | 3,375 |
| Deferred income tax provision | 28,764 | 8,277 | 33,346 | 2,788 |
| Non-cash stock-based compensation | 4,969 | 4,043 | 14,635 | 12,402 |
| Tax impact of stock-based equity awards | (115) | (318) | 1,593 | (2,625) |
| Non-cash (gain) loss on foreign currency transactions | (634) | 0 | (634) | 0 |
| (Increase) decrease in - | ||||
| Accounts and notes receivable | 75,205 | (139,659) | 136,158 | (234,316) |
| Costs and estimated earnings in excess of billings on uncompleted contracts | (12,560) | 10,624 | (7,096) | 7,118 |
| Inventories | (3,391) | 4,698 | (5,545) | (213) |
| Prepaid expenses and other current assets | (9,760) | 10,308 | (7,496) | 9,886 |
| Increase (decrease) in - | ||||
| Accounts payable and accrued expenses and other non-current liabilities | (48,792) | 33,193 | (78,886) | 55,910 |
| Billings in excess of costs and estimated earnings on uncompleted contracts | (15,284) | 2,826 | 540 | (14,271) |
| Other, net | 614 | (1,040) | (112) | (136) |
| Net cash provided by operating activities | 107,959 | 16,816 | 278,589 | 50,118 |
| Cash Flows from Investing Activities: | ||||
| Proceeds from sale of property and equipment | 2,075 | 2,058 | 4,779 | 11,122 |
| Additions of property and equipment | (36,012) | (51,776) | (120,852) | (164,925) |
| Cash paid for acquisition, net of cash acquired | (14,148) | (4,819) | (14,148) | (27,728) |
| Cash paid for developed technology | 0 | 0 | 0 | (14,573) |
| Net cash used in investing activities | (48,085) | (54,537) | (130,221) | (196,104) |
| Cash Flows from Financing Activities: | ||||
| Proceeds from other long-term debt | 123 | 0 | 2,218 | 635 |
| Repayments of convertible subordinated notes | 0 | (1) | 0 | (1) |
| Payments on other long-term debt | (129) | (45) | (3,376) | (1,643) |
| Tax impact of stock-based equity awards | 115 | 318 | (1,593) | 2,625 |
| Exercise of stock options | 504 | 315 | 646 | 5,963 |
| Net cash provided by (used in) financing activities | 613 | 587 | (2,105) | 7,579 |
| Net increase (decrease) in cash and cash equivalents | 60,487 | (37,134) | 146,263 | (138,407) |
| Effect of foreign exchange rate changes on cash and cash equivalents | (805) | (1,228) | (126) | (2,245) |
| Cash and cash equivalents, beginning of period | 524,356 | 304,791 | 437,901 | 407,081 |
| Cash and cash equivalents, end of period | 584,038 | 266,429 | 584,038 | 266,429 |
| Cash (paid) received during the period for - | ||||
| Interest paid | (3,037) | (148) | (5,931) | (9,285) |
| Income taxes paid | (6,264) | (25,478) | (38,405) | (60,933) |
| Income tax refunds | $791 | $171 | $2,160 | $656 |
| Business and Organization (Unaudited) | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Business and Organization [Abstract] | |
| BUSINESS AND ORGANIZATION | 1. BUSINESS AND ORGANIZATION: Quanta Services, Inc. (Quanta) is a leading national provider of specialized contracting services, offering end-to-end network solutions to the electric power, natural gas and oil, telecommunications and cable television industries. Effective during the quarter ended September30, 2009, Quanta began reporting its results under four reportable segments: (1)Electric Power Infrastructure Services, (2)Natural Gas and Pipeline Infrastructure Services, (3)Telecommunications Infrastructure Services and (4)Fiber Optic Licensing. Electric Power Infrastructure Services Segment The Electric Power Infrastructure Services segment provides comprehensive network solutions to customers in the electric power industry. Services performed by the Electric Power Infrastructure Services segment generally include the design, installation, upgrade, repair and maintenance of electric power transmission and distribution networks and substation facilities and the installation of smart grid technology on electric power networks along with other engineering and technical services to customers in this segment. Services also performed by this segment include design and installation of wind turbine facilities and solar arrays and related switchyards and transmission networks for renewable power generation sources. To a lesser extent, this segment also provides services such as the design, installation, maintenance and repair of commercial and industrial wiring, installation of traffic networks and the installation of cable and control systems for light rail lines. Natural Gas and Pipeline Infrastructure Services Segment The Natural Gas and Pipeline Infrastructure Services segment provides comprehensive network solutions to customers involved in the transportation of natural gas, oil and other pipeline products. Services performed by the Natural Gas and Pipeline Infrastructure Services segment generally include the design, installation, repair and maintenance of natural gas and oil transmission and distribution systems and related trenching and directional boring services. In addition, this segment provides pipeline protection services and performs pipeline integrity and rehabilitation services. To a lesser extent, this segment designs, installs and maintains airport fueling systems as well as water and sewer infrastructure. Telecommunications Infrastructure Services Segment The Telecommunications Infrastructure Services segment predominantly provides comprehensive network solutions to customers in the telecommunications and cable television industries. Services performed by the Telecommunications Infrastructure Services segment generally include the design, installation, repair and maintenance of fiber optic, copper and coaxial cable networks used for video, data and voice transmission. In addition, services include the design and installation of wireless communications towers and switching systems. To a lesser extent, services provided under this segment include cable locating, splicing and testing of fiber optic networks and residential installation of fiber optic cabling. Fiber Optic Licensi |
| Summary of Significant Accounting Policies (Unaudited) | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Summary of Significant Accounting Policies [Abstract] | |
| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Principles of Consolidation The consolidated financial statements of Quanta include the accounts of Quanta and its wholly owned subsidiaries, which are also referred to as its operating units. All significant intercompany accounts and transactions have been eliminated in consolidation. Unless the context requires otherwise, references to Quanta include Quanta and its consolidated subsidiaries. Interim Condensed Consolidated Financial Information These unaudited condensed consolidated financial statements have been prepared pursuant to the rules of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States, have been condensed or omitted pursuant to those rules and regulations. Quanta believes that the disclosures made are adequate to make the information presented not misleading. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the financial position, results of operations and cash flows with respect to the interim consolidated financial statements have been included. The results of operations for the interim periods are not necessarily indicative of the results for the entire fiscal year. The results of Quanta have historically been subject to significant seasonal fluctuations. Quanta recommends that these unaudited condensed consolidated financial statements be read in conjunction with the audited consolidated financial statements and notes thereto of Quanta and its subsidiaries included in Quantas Annual Report on Form10-K for the year ended December31, 2008, which was filed with the SEC on March2, 2009. Use of Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities known to exist as of the date the financial statements are published and the reported amount of revenues and expenses recognized during the periods presented. Quanta reviews all significant estimates affecting its consolidated financial statements on a recurring basis and records the effect of any necessary adjustments prior to their publication. Judgments and estimates are based on Quantas beliefs and assumptions derived from information available at the time such judgments and estimates are made. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of financial statements. Estimates are primarily used in Quantas assessment of the allowance for doubtful accounts, valuation of inventory, useful lives of assets, fair value assumptions in analyzing goodwill, other intangibles and long-lived asset impairments, valuation of derivative contracts, purchase price allocations, liabilities for self-insured claims, convertible debt, revenue recognition for |
| Changes in Accounting Principles and New Accounting Pronouncements (Unaudited) | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Changes in Accounting Principles and New Accounting Pronouncements [Abstract] | |
| CHANGES IN ACCOUNTING PRINCIPLES AND NEW ACCOUNTING PRONOUNCEMENTS | 3. CHANGES IN ACCOUNTING PRINCIPLES AND NEW ACCOUNTING PRONOUNCEMENTS: New Accounting Pronouncements Adoption of New Accounting Pronouncements.On January1, 2009, Quanta adopted FSP APB 14-1 (ASC 470-20), which requires issuers of certain convertible debt instruments to separately account for the liability and equity components in a manner that adjusts the recorded value of the convertible debt to reflect the entitys non-convertible debt borrowing rate and interest cost at the time of issuance. The value of the debt instrument is adjusted through a discount to the face value of the debt, which is amortized as non-cash interest expense over the expected life of the debt, with an offsetting adjustment to equity to separately recognize the value of the debt instruments conversion feature. This FSP (ASC 470-20) has been applied retrospectively to all periods presented. Accordingly, Quanta recorded a cumulative effect of the change in accounting principle to accumulated deficit as of January 1, 2007 of approximately $29.6million. Also included in accumulated deficit is the impact from non-cash interest expense recorded in the amounts of approximately $18.3million ($11.8million after tax effect) and $14.9million ($9.6million after tax effect) for the years ended December31, 2007 and 2008. In addition, Quanta recorded non-cash interest expense during the first three quarters of 2009 and will continue doing so until Quantas 3.75% convertible subordinated notes are redeemable at the holders option in April 2013. Approximately $4.3million ($2.8million after tax effect) non-cash interest expense will be recorded in 2009, with approximately $3.2million ($2.1million after tax effect) recorded in the nine months ended September30, 2009. See the tables below for the impact of the adoption of FSP APB 14-1 (ASC 470-20) as of December31, 2008 and for the three and nine months ended September30, 2008. Also on January1, 2009, Quanta adopted FSP EITF03-6-1 (ASC 260). FSP EITF03-6-1 (ASC 260)states that unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and should be included in the computation of both basic and diluted earnings per share. All prior period earnings per share data presented have been adjusted retrospectively to conform to the provisions of FSP EITF03-6-1 (ASC 260). All of Quantas restricted stock grants have non-forfeitable rights to dividends and are considered participating securities under FSP EITF03-6-1 (ASC 260). Prior to the retrospective application of FSP EITF03-6-1 (ASC 260)on January1, 2009, unvested restricted stock grants were included in the calculation of weighted average dilutive shares outstanding using the treasury stock method. Under this previous method, unvested restricted common shares were not included in the calculation of weighted average basic shares outstanding but were included in the calculation of weighted average diluted shares outstanding to the extent the grant price was less than the average share price for the respective period. The impact of the retrospective application of FSP |
| Acquistions (Unaudited) | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Acquisitions [Abstract] | |
| ACQUISITIONS | 4. ACQUISITIONS: In July 2009, Quanta completed two acquisitions of specialty contractors with operations in the electric power, natural gas and telecommunications industries with a combined purchase price of approximately $22.3million, consisting of approximately $14.8million in cash and 372,183shares of Quanta common stock valued at approximately $7.5million at the date of acquisition on a discounted basis as a result of the restricted nature of the shares. These acquisitions enhance Quantas electric power, natural gas and pipeline and telecommunications capabilities throughout the Pacific Region and Western Canada. The estimated fair value of the tangible assets was $6.1million and consisted of current assets of $4.4million and property and equipment of $1.7million. Net tangible assets acquired were $3.9million after considering the assumed liabilities of $2.2million. Quanta also recorded intangible assets in the amount of $5.6million, consisting of customer relationships, backlog and non-compete agreements. The consideration transferred in excess of the net tangible assets acquired was recorded as goodwill in the amount of $12.8million. These allocations are based on the significant use of estimates and on information that was available to management at the time these interim condensed consolidated financial statements were prepared. Price Gregory Acquisition On October1, 2009, Quanta acquired Price Gregory through the acquisition of all of the outstanding stock of Price Gregory. In connection with the Merger, Quanta issued approximately 10.9million shares of Quanta common stock valued at approximately $231.8million and paid approximately $95.8million in cash to the stockholders of Price Gregory. Price Gregory provides natural gas and oil transmission pipeline infrastructure services in North America and expands Quantas service capabilities in this market. Due to the recent closing of the Merger, financial information related to Price Gregory, including Quantas pro forma results as a result of the Merger, have not yet been completed. Since the acquisition closed subsequent to September30, 2009, the accompanying condensed consolidated financial statements do not reflect any adjustments related to the Merger, although expenses related to the Merger of approximately $1.3million are included in selling, general and administrative expense for the three and nine months ended September30, 2009. |
| Goodwill and Other Intangible Assets (Unaudited) | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Goodwill and Other Intangible Assets [Abstract] | |
| GOODWILL AND OTHER INTANGIBLE ASSETS | 5. GOODWILL AND OTHER INTANGIBLE ASSETS: A summary of changes in Quantas goodwill between December31, 2008 and September30, 2009 is as follows (in thousands): Natural Gas and Electric Power Pipeline Telecommunications Division Division Division Total Balance at December31, 2008 $ 642,943 $ 269,706 $ 450,451 $ 1,363,100 Goodwill acquired during the year 3,580 9,240 12,820 Foreign currency translation related to Canadian goodwill 164 164 Purchase price adjustments related to acquisitions closed in previous quarters (296 ) 114 (182 ) Balance at September30, 2009 $ 646,687 $ 269,410 $ 459,805 $ 1,375,902 Quantas goodwill reported above on a divisional basis represents the aggregation of the operating units goodwill into the internal division in which the operating unit is organized. These divisions are closely aligned with the reportable segments based on their operating units predominate type of work. Other intangible assets are comprised of (in thousands): December31, September30, 2008 2009 Other intangible assets: Customer relationships $ 111,379 $ 114,576 Backlog 54,139 55,275 Non-compete agreements 16,336 17,599 Patented rights and developed technology 16,078 16,078 Total intangible assets 197,932 203,528 Accumulated amortization: Customer relationships (11,381 ) (17,079 ) Backlog (38,109 ) (44,362 ) Non-compete agreements (6,000 ) (8,360 ) Patented rights and developed technology (1,725 ) (2,674 ) Total accumulated amortization (57,215 ) (72,475 ) Intangible assets, net $ 140,717 $ 131,053 Expenses for the amortization of intangible assets were $9.0million and $5.4million for the three months ended September30, 2008 and 2009 and $29.5million and $15.3million for the nine months ended September30, 2008 and 2009. The remaining weighted average amortization period for all intangible assets as of September30, 2009 is 11.1years, while the remaining weighted average amortization periods for customer relationships, backlog, non-compete agreements and the patented rights and developed technology are 13.0years, 1.9years, 2.7years and 11.0years, respectively. The estimated future aggregate amortization expense of intangible assets as of September30, 2009 is set forth below (in thousands): |
| Stock-Based Compensation (Unaudited) | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Stock-Based Compensation [Abstract] | |
| STOCK-BASED COMPENSATION | 6. STOCK-BASED COMPENSATION: Stock Incentive Plans Pursuant to the Quanta Services, Inc. 2007 Stock Incentive Plan (the 2007 Plan), which was adopted on May24, 2007, Quanta may award restricted common stock, incentive stock options and non-qualified stock options. The purpose of the 2007 Plan is to provide directors, key employees, officers and certain consultants and advisors with additional performance incentives by increasing their proprietary interest in Quanta. Prior to the adoption of the 2007 Plan, Quanta had issued awards of restricted common stock and stock options under its 2001 Stock Incentive Plan (as amended and restated March13, 2003) (the 2001 Plan), which was terminated effective May24, 2007, except that outstanding awards will continue to be governed by the terms of the 2001 Plan. In connection with the acquisition of InfraSource on August30, 2007, Quanta assumed InfraSources 2003 Omnibus Stock Incentive Plan and 2004 Omnibus Stock Incentive Plan, in each case as amended (the InfraSource Plans). The InfraSource Plans were terminated in connection with the acquisition, and no further awards will be made under these plans, although the terms of these plans will govern outstanding awards. The 2007 Plan, the 2001 Plan and the InfraSource Plans are referred to as the Plans. Restricted Stock Restricted common stock has been issued under the Plans at the fair market value of the common stock as of the date of issuance. The shares of restricted common stock issued are subject to forfeiture, restrictions on transfer and certain other conditions until they vest, which generally occurs over three or four years in equal annual installments. During the restriction period, the restricted stockholders are entitled to vote and receive dividends on such shares. During the three months ended September30, 2008 and 2009, Quanta granted 7,098 and 6,453shares of restricted stock under the 2007 Plan with a weighted average grant price of $31.62 and $23.25. During the nine months ended September30, 2008 and 2009, Quanta granted 0.8million and 0.9million shares of restricted stock under the 2007 Plan with a weighted average grant price of $23.69 and $22.14. Additionally, during the three months ended September30, 2008 and 2009, 17,066 and 20,503shares vested with an approximate fair value at the time of vesting of $0.5million and $0.5million. During the nine months ended September30, 2008 and 2009, 0.6million and 0.6million shares vested with an approximate fair value at the time of vesting of $15.0million and $11.3million. As of September30, 2009, there was approximately $22.2million of total unrecognized compensation cost related to unvested restricted stock granted to both employees and non-employees. This cost is expected to be recognized over a weighted average period of 1.9years. Stock Options The stock options granted under the InfraSource Plans, which were converted to options to acquire Quanta common stock upon the acquisition of InfraSource, generally vest over four years and have a maximum term of ten years; however, some options vested on August30, 2007 due to change of control provisio |
| Per Share Information (Unaudited) | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Per Share Information [Abstract] | |
| PER SHARE INFORMATION | 7. PER SHARE INFORMATION: Basic earnings per share is computed using the weighted average number of common shares outstanding during the period, and diluted earnings per share is computed using the weighted average number of common shares outstanding during the period adjusted for all potentially dilutive common stock equivalents, except in cases where the effect of the common stock equivalent would be antidilutive. The amounts used to compute the basic and diluted earnings per share for the three and nine months ended September30, 2008 and 2009 are illustrated below (in thousands): Three Months Ended Nine Months Ended September30, September30, 2008 2009 2008 2009 NET INCOME: Net income attributable to common stock $ 51,937 $ 63,436 $ 111,076 $ 118,217 Effect of convertible subordinated notes under the if-converted method interest expense addback, net of taxes 6,180 1,659 13,579 Net income attributable to common stock for diluted earnings per share $ 58,117 $ 65,095 $ 124,655 $ 118,217 WEIGHTED AVERAGE SHARES: Weighted average shares outstanding for basic earnings per share 173,007 198,608 172,168 198,618 Effect of dilutive stock options 286 201 384 197 Effect of convertible subordinated notes under the if-converted method weighted convertible shares issuable 30,637 6,415 24,231 Weighted average shares outstanding for diluted earnings per share 203,930 205,224 196,783 198,815 For each of the three months ended September30, 2008 and 2009, stock options of approximately 0.1million shares were excluded from the computation of diluted earnings per share because the options exercise prices were greater than the average market price of Quantas common stock. For each of the nine months ended September30, 2008 and 2009, stock options of approximately 0.1million shares were excluded from the computation of diluted earnings per share because the options exercise prices were greater than the average market price of Quantas common stock. For the nine months ended September30, 2008 and 2009, the effect of assuming conversion of the 3.75% convertible subordinated notes would have been antidilutive and they were therefore excluded from the calculation of diluted earnings per share. The 4.5% convertible subordinated notes were not outstanding during the three and nine months ended September30, 2009. |
| Debt (Unaudited) | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Debt [Abstract] | |
| DEBT | 8. DEBT: Credit Facility Quanta has a credit facility with various lenders that provides for a $475.0million senior secured revolving credit facility maturing on September19, 2012. Subject to the conditions specified in the credit facility, borrowings under the credit facility are to be used for working capital, capital expenditures and other general corporate purposes. The entire unused portion of the credit facility is available for the issuance of letters of credit. As of September30, 2009, Quanta had approximately $183.9million of letters of credit issued under the credit facility and no outstanding revolving loans. The remaining $291.1million was available for revolving loans or issuing new letters of credit. Amounts borrowed under the credit facility bear interest, at Quantas option, at a rate equal to either (a)the Eurodollar Rate (as defined in the credit facility) plus 0.875% to 1.75%, as determined by the ratio of Quantas total funded debt to consolidated EBITDA (as defined in the credit facility), or (b)the base rate (as described below) plus 0.00% to 0.75%, as determined by the ratio of Quantas total funded debt to consolidated EBITDA. Letters of credit issued under the credit facility are subject to a letter of credit fee of 0.875% to 1.75%, based on the ratio of Quantas total funded debt to consolidated EBITDA. Quanta is also subject to a commitment fee of 0.15% to 0.35%, based on the ratio of its total funded debt to consolidated EBITDA, on any unused availability under the credit facility. The base rate equals the higher of (i)the Federal Funds Rate (as defined in the credit facility) plus 1/2 of 1% or (ii)the banks prime rate. The credit facility contains certain covenants, including covenants with respect to maximum funded debt to consolidated EBITDA, maximum senior debt to consolidated EBITDA and minimum interest coverage, in each case as specified in the credit facility. For purposes of calculating the maximum funded debt to consolidated EBITDA ratio and the maximum senior debt to consolidated EBITDA ratio, Quantas maximum funded debt and maximum senior debt are reduced by all cash and cash equivalents (as defined in the credit facility) held by Quanta in excess of $25.0million. As of September30, 2009, Quanta was in compliance with all of its covenants. The credit facility limits certain acquisitions, mergers and consolidations, capital expenditures, asset sales and prepayments of indebtedness and, subject to certain exceptions, prohibits liens on material assets. The credit facility also limits the payment of dividends and stock repurchase programs in any fiscal year except those payments or other distributions payable solely in capital stock. The credit facility provides for customary events of default and carries cross-default provisions with all of Quantas existing subordinated notes, its continuing indemnity and security agreement with its sureties and all of its other debt instruments exceeding $15.0million in borrowings. If an event of default (as defined in the credit facility) occurs and is continuing, on the terms and subject to the conditions set forth in the credit facility, am |
| Equity (Unaudited) | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Equity [Abstract] | |
| EQUITY | 9. EQUITY: Treasury Stock Pursuant to Quantas stock incentive plans, employees may elect to satisfy their tax withholding obligations upon vesting of restricted stock by having Quanta make such tax payments and withhold a number of vested shares having a value on the date of vesting equal to their tax withholding obligation. As a result of such employee elections, during the nine months ended September30, 2008 and 2009, Quanta withheld 187,466 and 195,733shares of Quanta common stock with a total market value of $4.5million and $3.5million for settlement of employee tax liabilities. These shares were accounted for as treasury stock. Also, participants may elect a net settlement upon the exercise of vested stock options. When such election is made, Quanta withholds from the total number of shares of Quanta common stock purchased through the exercise that number of shares of Quanta common stock having a value on the date of exercise equal to the aggregate exercise price. During the first nine months of 2009, Quanta withheld and placed into treasury stock 13,213shares of Quanta common stock as a result of the net settlement of stock options. Under Delaware corporate law, treasury stock is not entitled to vote or be counted for quorum purposes. Noncontrolling Interest During the first quarter of 2009, Quanta acquired a 50% interest in a joint venture that qualifies as a variable interest entity and has been included on a consolidated basis in the accompanying financial statements as described in Note2. As a result, income attributable to the other joint venture member has been accounted for as a reduction of reported net income of approximately $0.5million and $0.9million related to the noncontrolling interest for the three and nine months ended September30, 2009 to derive net income attributable to the common stockholders of Quanta. Equity in the consolidated assets and liabilities of the joint venture attributable to the other joint venture member has been accounted for as a noncontrolling interest component of total equity in the accompanying balance sheet. The carrying value of the investment held by Quanta in this variable interest entity was approximately $0.9million at September30, 2009. The carrying value of the investment held by the noncontrolling interest in this variable interest entity at September30, 2009 was $0.9million. There were no changes in equity as a result of transfers (to) from the noncontrolling interest during the period. Comprehensive Income Quantas foreign operations are translated into U.S.dollars, and a translation adjustment is recorded in other comprehensive income (loss) as a result. Additionally, gains and losses on foreign currency cash flow hedges are also recorded in other comprehensive income (loss). The following table presents the components of comprehensive income for the periods presented (in thousands): Three Months Ended Nine Months Ended September30, September30, 2008 2009 2008 2009 Net income $ 51,937 $ 63,956 $ 111,076 |
| Segment Information (Unaudited) | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Segment Information [Abstract] | |
| SEGMENT INFORMATION | 10. SEGMENT INFORMATION: In connection with the acquisition of Price Gregory and its impact on Quantas divisional structure used for internal management purposes, an updated evaluation of Quantas reportable segments was performed during the third quarter of 2009. As a result, Quantas operations are now presented under four reportable segments: (1)Electric Power Infrastructure Services, (2)Natural Gas and Pipeline Infrastructure Services, (3)Telecommunications Infrastructure Services and (4)Fiber Optic Licensing. This structure is generally focused on broad end-user markets for Quantas services. The Electric Power Infrastructure Services segment provides comprehensive network solutions to customers in the electric power industry. Services performed by the Electric Power Infrastructure Services segment generally include the design, installation, upgrade, repair and maintenance of electric power transmission and distribution networks and substation facilities and the installation of smart grid technology on electric power networks along with engineering and technical services to customers in this segment. Services also performed by this segment include design and installation of wind turbine facilities and solar arrays and related switchyards and transmission networks for renewable power generation sources. To a lesser extent, this segment also provides services such as the design, installation, maintenance and repair of commercial and industrial wiring, installation of traffic networks and the installation of cable and control systems for light rail lines. The Natural Gas and Pipeline Infrastructure Services segment provides comprehensive network solutions to customers involved in the transportation of natural gas, oil and other pipeline products. Services performed by the Natural Gas and Pipeline Infrastructure Services segment generally include the design, installation, repair and maintenance of natural gas and oil transmission and distribution systems and related trenching and directional boring services. In addition, this segment provides the design and installation of pipeline protection services and performs pipeline integrity and rehabilitation services. To a lesser extent, this segment designs, installs and maintains airport fueling systems as well as water and sewer infrastructure. The Telecommunications Infrastructure Services segment predominantly provides comprehensive network solutions to customers in the telecommunications and cable television industries. Services performed by the Telecommunications Infrastructure Services segment generally include the design, installation, repair and maintenance of fiber optic, copper and coaxial cable networks used for video, data and voice transmission. In addition, services include the design and installation of wireless communications towers and switching systems. To a lesser extent, services provided under this segment include cable locating, splicing and testing of fiber optic networks and residential installation of fiber optic cabling. The Fiber Optic Licensing segment designs, procures, constructs and maintains fiber optic telecommunications infrastr |
| Commitments and Contingencies (Unaudited) | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Commitments and Contingencies [Abstract] | |
| COMMITMENTS AND CONTINGENCIES | 11. COMMITMENTS AND CONTINGENCIES: Joint Venture Contingencies As described in Note2, one of Quantas operating units entered into a joint venture with a third party engineering company during the first quarter of 2009 for the purpose of providing infrastructure services under a contract with a large utility customer. Losses incurred by the joint venture are typically shared equally by the joint venture members. However, under the terms of the joint venture agreement, each member of the joint venture has guaranteed all of the obligations of the joint venture under the contract with the customer and therefore can be liable for full performance of the contract to the customer. Quanta is not aware of circumstances that would lead to future claims against it for material amounts in connection with this performance guarantee. In addition, as described in Note2, another of Quantas operating units began operations during the first quarter of 2009 in a joint venture with a third party for the purpose of providing joint engineering and construction services for the design and installation of fuel storage facilities under a contract with a specific customer. Under the joint venture agreement, the losses incurred by the joint venture are typically shared equally by the joint venture partners. However, the joint venture is a general partnership, and as such, the joint venture partners are jointly and severally liable for all of the obligations of the joint venture, including obligations owed to the customer or any other person or entity. Quanta is not aware of circumstances that would lead to future claims against it for material amounts in connection with its joint and several liability. In each of the above joint venture arrangements, each joint venturer has indemnified the other for any liabilities incurred in excess of the liabilities for which the joint venturer is obligated to bear under the respective joint venture agreement. It is possible, however, that Quanta could be required to pay or perform obligations in excess of its share if the other joint venturer failed or refused to pay or perform its share of the obligations. Quanta is not aware of circumstances that would lead to future claims against it for material amounts that would not be indemnified. Leases Quanta leases certain land, buildings and equipment under non-cancelable lease agreements, including related party leases. The terms of these agreements vary from lease to lease, including some with renewal options and escalation clauses. The following schedule shows the future minimum lease payments under these leases as of September30, 2009 (in thousands): Operating Leases Year Ending December 31 Remainder of 2009 $ 14,606 2010 43,462 2011 32,236 2012 21,789 2013 15,841 Thereafter 15,517 Total minimum lease payments $ 143,451 Rent expense related to operating leases was approximately $27.3million and $81.7million for the three and nine months ended September30, 2009 and approxi |
