QUANTA SERVICES INC, QUANTA SERVICES MANAGEMENT ...

Values in millions except per share amounts
NOPAT = Net Income with Adjustments as per below
®
Appendix 3: Red Flag Impact: Reconciling Net Income to Economic Earnings
GAAP Net Income
Net Non-Operating Items Pre-Tax
As a % of Revenue
Change in Total Reserves
As a % of Revenue
Goodwill Amortization
As a % of Revenue
ESO Expense (Employee Stock Options)
As a % of Revenue
Implied Interest for PV of Operating Leases
As a % of Revenue
Non-Operating Tax Adjustment
As a % of Revenue
Net After-Tax Non-Operating Items
As a % of Revenue
NOPAT (Net Operating Profit After Tax)
Capital Charge for Average Reported Net Assets
As a % of Revenue
Capital Charge for Average Excess Cash
As a % of Revenue
Capital Charge for Average Total Reserves
As a % of Revenue
Capital Charge for Average Net Deferred Compensation Assets
As a % of Revenue
Capital Charge for Average Unconsol Sub Assets (non-operating)
As a % of Revenue
Capital Charge for Average Net Assets from Discontinued Operations
As a % of Revenue
Capital Charge for Average Off-Balance-Sheet Operating Leases
As a % of Revenue
Capital Charge for Average Unrecorded Goodwill
As a % of Revenue
Capital Charge for Average Accumulated Goodwill Amortization
As a % of Revenue
Capital Charge for Average Cumulative Asset Write-Offs After Tax
As a % of Revenue
Capital Charge for Net Deferred Tax Assets
As a % of Revenue
Capital Charge for Average Accumulated OCI
As a % of Revenue
Mid-Year Acquisition Capital Charge Adjustment
As a % of Revenue
Capital Charge for Average Invested Capital
Economic Earnings = NOPAT minus Capital Charge
Economic Earnings
Economic Earnings per Share
Basic EPS
Page 10: Reconciling Net Income to Economic Earnings
2007
$135.98
7.4
0.3%
0.0
0.0%
0.0
0.0%
(0.0)
(0.0%)
9.9
0.4%
(25.7)
(1.0%)
($2.84)
(0.1%)
$124.77
Capital Charge = WACC * Average Invested Capital as detailed below
195.9
7.4%
(26.1)
(1.0%)
0.0
0.0%
0.0
0.0%
(0.0)
(0.0%)
(0.0)
(0.0%)
12.5
0.5%
1.9
0.1%
5.6
0.2%
57.4
2.2%
4.8
0.2%
(0.2)
(0.0%)
0.0
0.0%
$251.74
($126.97)
($0.94)
$1.00
2008 2009
$166.74
9.9
20.0
25.0
34.8
0.3% 0.6% 0.6% 0.8%
0.0 0.0
0.0
0.0
0.0% 0.0% 0.0% 0.0%
0.0
0.0
0.0
0.0
0.0% 0.0% 0.0% 0.0%
(0.0)
(0.0) (0.0)
(0.0)
(0.0%) (0.0%) (0.0%) (0.0%)
8.6
6.8
6.7
6.0
0.2% 0.2% 0.2% 0.1%
10.8 (13.2) (7.2) (15.2)
0.3% (0.4%) (0.2%) (0.3%)
$0.00 $1.37 $2.38 $11.90
0.0% 0.0% 0.1% 0.3%
$195.97
267.0 293.7 332.7 332.1
7.1% 8.9% 8.5% 7.2%
(24.0) (35.5) (41.1) (19.4)
(0.6%) (1.1%) (1.0%) (0.4%)
0.0
0.0
0.0
0.0
0.0% 0.0% 0.0% 0.0%
0.0
0.0
0.0
0.0
0.0% 0.0% 0.0% 0.0%
(0.0)
(0.0) (0.0)
(0.0)
(0.0%) (0.0%) (0.0%) (0.0%)
(0.0)
(0.0) (0.0)
(0.0)
(0.0%) (0.0%) (0.0%) (0.0%)
14.4
12.6
11.5
10.6
0.4% 0.4% 0.3% 0.2%
1.8 1.8
1.8
1.8
0.0% 0.1% 0.0% 0.0%
5.4
5.4
5.5
5.4
0.1% 0.2% 0.1% 0.1%
55.9
55.6
58.0
56.3
1.5% 1.7% 1.5% 1.2%
8.5
11.4
17.8
20.2
0.2% 0.3% 0.5% 0.4%
(0.0)
(0.0) (0.8)
(0.7)
(0.0%) (0.0%) (0.0%) (0.0%)
0.0
0.0 (6.9)
(1.5)
0.0% 0.0% (0.2%) (0.0%)
$328.91
($132.94)
($0.75)
$0.94
DUE DILIGENCE REVIEW
$162.16
$177.06
$344.87
($167.82)
($0.84)
$0.81
2010 2011
$153.18
$180.06
$378.56
($198.50)
($0.95)
$0.73
11/30/2012
$132.52
$169.95
$404.93
($234.98)
($1.11)
$0.62
Quanta Services, Inc. (PWR)