QUANTA SERVICES INC, QUANTA SERVICES MANAGEMENT ...

• the termination or expiration of existing agreements;
• pricing pressures resulting from competition;
• changes in bonding and lien requirements applicable to existing and new agreements;
• implementation
operations;
of various information systems, which could temporarily disrupt day-to-day
• the recognition of tax benefits related to uncertain tax positions;
• costs we incur to support growth internally or through acquisitions or otherwise;
• the timing and integration of acquisitions and the magnitude of the related acquisition and integration
costs; and
• the timing and significance of potential impairments of long-lived assets, equity or other investments,
goodwill or other intangible assets.
Accordingly, our operating results in any particular quarter may not be indicative of the results that can be
expected for any other quarter or for the entire year.
Negative economic and market conditions may adversely impact our customers’ future spending as well as
payment for our services and, as a result, our operations and growth.
The economy is still recovering from the recession in 2008 and 2009, and economic growth remains slow.
The financial markets also have not fully recovered. It is uncertain when these conditions will significantly
improve. Stagnant or declining economic conditions have adversely impacted the demand for our services in the
past and resulted in the delay, reduction or cancellation of certain projects and may continue to adversely affect
us in the future. Additionally, many of our customers finance their projects through the incurrence of debt or the
issuance of equity. The availability of credit remains constrained, and many of our customers’ equity values have
not fully recovered from the negative impact of the recession. A reduction in cash flow or the lack of availability
of debt or equity financing may continue to result in a reduction in our customers’ spending for our services and
may also impact the ability of our customers to pay amounts owed to us, which could have a material adverse
effect on our operations and our ability to grow at historical levels.
Regulatory and environmental requirements and economic conditions affecting any of the industries we
serve may lead to less demand for our services.
Because the vast majority of our revenue is derived from a few industries, regulatory and environmental
requirements or a downturn in economic conditions affecting any of those industries would adversely affect our
results of operations. Customers in the industries we serve face stringent regulatory and environmental
requirements and permitting processes as they implement plans for their projects, resulting in delays, reductions
and cancellations of some of their projects. Additionally, unfavorable economic conditions in any industry we
serve could result in the delay, reduction or cancellation of projects by our customers as well as cause our
customers to outsource less work. These regulatory and economic factors have resulted in decreased demand for
our services in the past, and they may continue to do so in the future, potentially impacting our operations and
our ability to grow at historical levels. A number of other factors, including financing conditions and potential
bankruptcies in the industries we serve or a prolonged economic downturn or recession, could adversely affect
our customers and their ability or willingness to fund capital expenditures in the future or pay for past services.
Consolidation, competition, capital constraints or negative economic conditions in the electric power, natural gas,
oil and telecommunications industries may also result in reduced spending by, or the loss of, one or more of our
customers.
14