QUANTA SERVICES INC, QUANTA SERVICES MANAGEMENT ...

QUANTA SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
2011 2010
(In thousands)
2009
Cash Flows from Operating Activities:
Net income ........................................................................
Adjustments to reconcile net income to net cash provided by operations activities —
$144,416 $ 155,557 $ 163,535
Depreciation ..................................................................... 116,068 107,507 86,862
Amortization of intangible assets ..................................................... 29,953 38,568 38,952
Non-cash interest expense ........................................................... — 1,704 4,333
Amortization of debt issuance costs ................................................... 901 642 921
Amortization of deferred revenue ..................................................... (11,415) (12,471) (13,987)
Loss on sale of property and equipment ................................................ 854 4,650 8,758
Non-cash loss on early extinguishment of debt .......................................... — 4,797 —
Foreign currency (gain) loss ......................................................... 1,227 (328) (267)
Provision for (recovery of) doubtful accounts ........................................... 1,163 (142) 2,690
Deferred income tax provision ....................................................... 7,017 36,430 26,911
Non-cash stock-based compensation .................................................. 21,618 23,048 19,875
Tax impact of stock-based equity awards ...............................................
Changes in operating assets and liabilities, net of non-cash transactions —
(Increase) decrease in —
(1,365) (2,161) 1,509
Accounts and notes receivable ..................................................... (311,761) (8,536) 253,070
Costs and estimated earnings in excess of billings on uncompleted contracts ................. (65,916) (66,481) 6,002
Inventories ..................................................................... (18,529) (17,127) 7,536
Prepaid expenses and other current assets ............................................
Increase (decrease) in —
10,352 (12,274) (10,580)
Accounts payable and accrued expenses and other non-current liabilities .................... 221,528 (20,352) (170,010)
Billings in excess of costs and estimated earnings on uncompleted contracts ................. 77,683 10,462 (50,267)
Other, net ...................................................................... (5,764) (3,235) 1,055
Net cash provided by operating activities ................................................. 218,030 240,258 376,898
Cash Flows from Investing Activities:
Proceeds from sale of property and equipment ........................................... 9,903 25,651 9,064
Additions of property and equipment .................................................. (172,005) (149,653) (164,980)
Cash paid for acquisitions, net of cash acquired .......................................... (79,660) (130,251) 36,234
Payment to acquire equity method investment ........................................... (35,000) — —
Cash paid for other investments ...................................................... (4,000) — —
Cash paid for non-compete agreement ................................................. (455) — —
Net cash used in investing activities ................................................. (281,217) (254,253) (119,682)
Cash Flows from Financing Activities:
Proceeds from other long-term debt ................................................... 4,343 1,183 5,316
Payments on other long-term debt .................................................... (5,680) (3,438) (3,301)
Payments on convertible subordinated notes ............................................ — (143,750) —
Debt issuance and amendment costs ................................................... (4,127) — —
Distributions to noncontrolling interests ................................................ (5,954) (2,395) —
Tax impact of stock-based equity awards ............................................... 1,365 2,161 (1,509)
Exercise of stock options ........................................................... 867 534 975
Repurchase of common stock ........................................................ (149,547) — —
Net cash provided by (used in) financing activities ..................................... (158,733) (145,705) 1,481
Effect of foreign exchange rate changes on cash and cash equivalents .......................... (1,952) (708) 3,031
Net increase (decrease) in cash and cash equivalents ........................................ (223,872) (160,408) 261,728
Cash and cash equivalents, beginning of year ............................................. 539,221 699,629 437,901
Cash and cash equivalents, end of year ................................................... $315,349 $ 539,221 $ 699,629
Supplemental disclosure of cash flow information:
Cash (paid) received during the year for —
Interest paid .................................................................... $ (701) $ (3,479) $ (5,864)
Redemption premium on convertible subordinated notes ................................. — (2,310) —
Income tax paid ................................................................. (13,306) (108,700) (56,565)
Income tax refunds .............................................................. 6,502 9,707 2,385
The accompanying notes are an integral part of these consolidated financial statements.
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