QUANTA SERVICES INC, QUANTA SERVICES MANAGEMENT ...

James F. O’Neil, III
President and Chief Executive Officer
Record Revenues and Backlog
At the end of 2011, our 12-month and total backlog were both at record levels – with 12-month backlog at $3.6 billion,
up 24 percent from 2010, and total backlog at $7.2 billion, a 15 percent increase. Much of this growth came from large
electric transmission project awards during the year. Quanta also built significant backlog in its telecom segment, driven
mainly by new broadband stimulus work. The natural gas and pipeline segment is also gaining momentum. Year-end
2011 backlog increased over 2010, and to date in 2012, we have been awarded more than $400 million in new pipeline
projects for shale gathering systems, which we expect to complete this year.
Quanta has maintained a strong balance sheet during these challenging times. We redeemed $143.8 million of
convertible subordinated notes in 2010, and as of the end of 2011, Quanta effectively had no debt. In 2011, we used a
portion of our cash to buy back $150 million in stock and our cash position remains strong, closing out 2011 with about
$824 million in liquidity when combined with available borrowing capacity under our credit facility.
Quanta’s solid balance sheet and liquidity puts our company in a preferred competitive position. We have the
working capital to meet our customers’ needs, and we have the financial strength to support our strategic initiatives to
profitably grow the company’s revenues in 2012 and beyond.
Momentum in all Operating Segments
ElEctric PowEr
In 2011, our electric power segment achieved record revenues and profits largely due to the number and size of electric
transmission projects that moved into construction in the second half of 2011 along with recovery in distribution spending
by our customers for the first time since 2008. We anticipate a robust year for our solar EPC and wind construction
services business in 2012 despite a disappointing 2011 in our renewable energy business. We believe electric power
revenues will see double-digit growth and we expect backlog in this segment to remain strong, as more transmission
awards are likely throughout 2012.