Quanta Services (NYSE: PWR) is a U.S. corporation that provides outsourced construction, maintenance, and technology services for electric power, telecommunications, broadband cable, and gas pipeline industries. Capabilities include the planning, design, installation, maintenance and repair of most types of network infrastructure. In June 2009, Quanta Services was added to the S&P 500 index, replacing Ingersoll-Rand.[1]
Quanta Services employs about 8,000 people full time, 5,000 on a 1099 form and its operating companies achieved combined revenues of about $3.8 billion in 2008. It is headquartered in Houston, Texas.
Quanta Services, Inc. (Quanta) is a provider of specialty contracting services, offering infrastructure solutions to the electric power, natural gas, oil and telecommunications industries. The services it provides include the design, installation, upgrade, repair and maintenance of infrastructure within each of the industries it serves, such as electric power transmission and distribution networks and substation facilities, natural gas and oil transmission and distribution systems, and fiber optic, copper and coaxial cable networks used for video, data and voice transmission. The Company also designs, procures, constructs and maintains fiber optic telecommunications infrastructure in select markets and license the right to use these point-to-point fiber optic telecommunications facilities to customers. Quanta has four segments: Electric Power Infrastructure Services, Natural Gas and Pipeline Infrastructure Services, Telecommunications Infrastructure Services and Fiber Optic Licensing. On October 1, 2009, the Company acquired Price Gregory Services, Incorporated.
Quanta's customers include Alabama Power Company, Ameren, American Electric Power, America Transmission Company, AT&T, BC Transmission Corporation, CenterPoint Energy, Commonwealth Edison, Duke Energy, Energy Transfer Partners, Entergy, Enterprise Products, Florida Power & Light, Georgia Power Company, International Transmission Company, Kansas City Power & Light, Kinder Morgan, Lower Colorado River Authority, Mid American Energy, National Grid, NextEra and Northeast Utilities System. Its customers also include Oklahoma Gas & Electric, Pacific Gas & Electric, PacificCorp, Puget Sound Energy, Qwest, Regency Energy Partners, San Diego Gas & Electric, Sempra Energy Company, South Carolina Power & Light, Southern California Edison, TransCanada, Verizon Communications, Westar Energy and Xcel Energy.
Electric Power Infrastructure Services Segment
Quanta provide 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 along with other engineering and technical services. This segment also provides emergency restoration services, including repairing infrastructure damaged by inclement weather, the energized installation, maintenance and upgrade of electric power infrastructure utilizing unique bare hand and hot stick methods and our proprietary robotic arm technologies, and the installation of smart grid technologies on electric power networks. In addition, this segment designs, installs and maintains wind turbine facilities and solar arrays and related switchyards and transmission networks for renewable power generation sources.
Natural Gas and Pipeline Infrastructure Services Segment
The Natural Gas and Pipeline Infrastructure Services segment provides 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, compressor and pump stations and gas gathering systems, as well as related trenching, directional boring and automatic welding services. In addition, this segment’s services include pipeline protection, pipeline integrity and rehabilitation and fabrication of pipeline support systems, and related structures and facilities. This segment also provides emergency restoration services, including repairing natural gas and oil pipeline infrastructure damaged by inclement weather. This segment also designs, installs and maintains airport fueling systems, as well as water and sewer infrastructure.
Telecommunications Infrastructure Services Segment
The Telecommunications Infrastructure Services segment provides 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, as well as the design and installation of wireless communications towers and switching systems. This segment also provides emergency restoration services, including repairing telecommunications infrastructure damaged by inclement weather. The services provided under this segment include cable locating, splicing and testing of fiber optic networks and residential installation of fiber optic cabling.
Fiber Optic Licensing Segment
The Fiber Optic Licensing segment designs, procures, constructs and maintains fiber optic telecommunications infrastructure in select markets and licenses the right to use these point-to-point fiber optic telecommunications facilities to its customers pursuant to licensing agreements, typically with lease terms from 5 to 25 years, inclusive of certain renewal options. Under those agreements, customers are provided the right to use a portion of the capacity of a fiber optic facility, with the facility owned and maintained by the Company. The Fiber Optic Licensing segment provides services to educational and healthcare institutions, large-industrial and financial services customers and other entities with high-bandwidth telecommunication needs. The telecommunication services provided through this segment are subject to regulation by the Federal Communications Commission and certain state public utility commissions.
By 2000, little more than a decade after Lam had set out in his cramped office in Taipei, Quanta was exuding considerable strength. The company's roster of customers was impressive, comprising essentially all the major notebook manufacturers in the world. Among Quanta's customers were Dell, Compaq, Apple, Hewlett-Packard, IBM, Sony, Sharp, Fujitsu, and Siemens. The company had also begun to vertically integrate and diversify its operations, seeking to add alternative revenue streams to its mainstay business. In February 1999, the company formed Quanta Storage Inc., a subsidiary that manufactured data storage devices such as CD-ROM drives and DVD drives. In July 1999, Quanta Display Inc., a producer of liquid crystal display (LCD) panels, was formed. In March 2000, the
In 2001, Quanta stood apart from the rest of the computer industry, the same year the company achieved global dominance. The year marked the most debilitative market crash in the history of the high-technology industry, yet Quanta displayed energetic growth, recording double-digit increases in sales as other computer makers endured crippling declines in business. During the year, Lam anticipated shipping four million notebook units, a 50 percent increase from the total recorded in 2000. Quanta vaulted past Toshiba to become the world's largest producer of notebook computers, its factories accounting for one-seventh of all notebooks sold worldwide. Although the company's forays into cellular phones and Internet devices had yet to generate any appreciable profits, Quanta represented a glowing success story at a time many computer makers chose to forget.
As Quanta embarked on its future in the 21st century, the company continued to garner praise for its high level of efficiency in an increasingly competitive market. In 2002, production was being shifted to China, where Quanta hoped to realize a 10 percent reduction in costs. Plans called for an $18 million investment in plant improvements in China, part of the company's goal to reach $10 billion in sales from operations in China and Taiwan by 2004. In the years ahead, analysts maintained, Quanta's biggest challenge consisted of keeping its lead as growth in the notebook market declined, reaching the same saturation point experienced by makers of desktop personal computers. Prices of notebooks were expected to fall, and consequently, profit margins were expected to shrink, giving Lam a considerable obstacle to surmount if he hoped to retain his title as the Laptop King.
Principal Subsidiaries: Quanta International Ltd. (British West Indies); LINKO Computer GmbH (Germany); Access International Co.; Quanta Storage Inc.; Quanta Display Inc.; Quanta Investor Inc.; Advanced International Investor Inc.; Quanta Network Systems Inc.; QCE Computer B.V. (Netherlands); Quanta Manufacturing Inc.; Quanta Service Inc.; Quanta Computer USA, Inc.; Q-Lily Computer Inc.; QCH Inc.
Principal Competitors: Solectron Corp.; Celestica Inc.
OVERALL
Beta: 1.11
Market Cap (Mil.): $4,148.00
Shares Outstanding (Mil.): 211.74
Annual Dividend: --
Yield (%): --
FINANCIALS
PWR Industry Sector
P/E (TTM): 37.07 40.44 18.89
EPS (TTM): -33.93 -- --
ROI: 3.08 1.68 4.10
ROE: 3.44 2.86 7.13
Statistics:
Public Company
Incorporated: 1988
Employees:1,200
Sales: NT$131.09 billion (2001)
Stock Exchanges: Taiwan
Ticker Symbol: QCI
NAIC: 334110 Computer and Peripheral Equipment Manufacturing
Key Dates:
1988: Lam starts Quanta with $900,000 in capital.
1989: The company's first production facility is opened.
1996: Dell Computer becomes a Quanta customer.
1998: Quanta converts to public ownership.
2001: Quanta becomes the largest manufacturer of notebook computers in the world.
Name Age Since Current Position
John Colson 63 2002 Chairman of the Board, Chief Executive Officer
James O'Neil 52 2008 President, Chief Operating Officer
James Haddox 62 1999 Chief Financial Officer
Kenneth Trawick 63 2004 President - Telecommunications and Renewables Division
Earl Austin 41 2009 President - Natural Gas and Pipeline Division
Derrick Jensen 40 2011 Senior Vice President - Finance and Administration, Chief Accounting Officer
Benadetto Bosco 53 2004 Senior Vice President - Business Development and Outsourcing
Tana Pool 51 2006 Vice President, General Counsel
Nicholas Grindstaff 48 2010 Vice President, Treasurer
Darren Miller 51 2003 Vice President - Information Technology and Administration
James Ball 68 1998 Independent Director
Vincent Foster 54 1998 Independent Director
Louis Golm 69 2002 Independent Director
Bernard Fried 54 2004 Independent Director
Worthing Jackman 46 2005 Independent Director
Bruce Ranck 62 2005 Independent Director
Ralph DiSibio 69 2006 Independent Director
Patrick Wood 48 2006 Independent Director
John Conaway 62 2007 Independent Director
COMPANY ADDRESS
Quanta Services Inc
1360 Post Oak Blvd.
Suite 2100
Houston TX 77056
Quanta Services employs about 8,000 people full time, 5,000 on a 1099 form and its operating companies achieved combined revenues of about $3.8 billion in 2008. It is headquartered in Houston, Texas.
Quanta Services, Inc. (Quanta) is a provider of specialty contracting services, offering infrastructure solutions to the electric power, natural gas, oil and telecommunications industries. The services it provides include the design, installation, upgrade, repair and maintenance of infrastructure within each of the industries it serves, such as electric power transmission and distribution networks and substation facilities, natural gas and oil transmission and distribution systems, and fiber optic, copper and coaxial cable networks used for video, data and voice transmission. The Company also designs, procures, constructs and maintains fiber optic telecommunications infrastructure in select markets and license the right to use these point-to-point fiber optic telecommunications facilities to customers. Quanta has four segments: Electric Power Infrastructure Services, Natural Gas and Pipeline Infrastructure Services, Telecommunications Infrastructure Services and Fiber Optic Licensing. On October 1, 2009, the Company acquired Price Gregory Services, Incorporated.
Quanta's customers include Alabama Power Company, Ameren, American Electric Power, America Transmission Company, AT&T, BC Transmission Corporation, CenterPoint Energy, Commonwealth Edison, Duke Energy, Energy Transfer Partners, Entergy, Enterprise Products, Florida Power & Light, Georgia Power Company, International Transmission Company, Kansas City Power & Light, Kinder Morgan, Lower Colorado River Authority, Mid American Energy, National Grid, NextEra and Northeast Utilities System. Its customers also include Oklahoma Gas & Electric, Pacific Gas & Electric, PacificCorp, Puget Sound Energy, Qwest, Regency Energy Partners, San Diego Gas & Electric, Sempra Energy Company, South Carolina Power & Light, Southern California Edison, TransCanada, Verizon Communications, Westar Energy and Xcel Energy.
Electric Power Infrastructure Services Segment
Quanta provide 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 along with other engineering and technical services. This segment also provides emergency restoration services, including repairing infrastructure damaged by inclement weather, the energized installation, maintenance and upgrade of electric power infrastructure utilizing unique bare hand and hot stick methods and our proprietary robotic arm technologies, and the installation of smart grid technologies on electric power networks. In addition, this segment designs, installs and maintains wind turbine facilities and solar arrays and related switchyards and transmission networks for renewable power generation sources.
Natural Gas and Pipeline Infrastructure Services Segment
The Natural Gas and Pipeline Infrastructure Services segment provides 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, compressor and pump stations and gas gathering systems, as well as related trenching, directional boring and automatic welding services. In addition, this segment’s services include pipeline protection, pipeline integrity and rehabilitation and fabrication of pipeline support systems, and related structures and facilities. This segment also provides emergency restoration services, including repairing natural gas and oil pipeline infrastructure damaged by inclement weather. This segment also designs, installs and maintains airport fueling systems, as well as water and sewer infrastructure.
Telecommunications Infrastructure Services Segment
The Telecommunications Infrastructure Services segment provides 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, as well as the design and installation of wireless communications towers and switching systems. This segment also provides emergency restoration services, including repairing telecommunications infrastructure damaged by inclement weather. The services provided under this segment include cable locating, splicing and testing of fiber optic networks and residential installation of fiber optic cabling.
Fiber Optic Licensing Segment
The Fiber Optic Licensing segment designs, procures, constructs and maintains fiber optic telecommunications infrastructure in select markets and licenses the right to use these point-to-point fiber optic telecommunications facilities to its customers pursuant to licensing agreements, typically with lease terms from 5 to 25 years, inclusive of certain renewal options. Under those agreements, customers are provided the right to use a portion of the capacity of a fiber optic facility, with the facility owned and maintained by the Company. The Fiber Optic Licensing segment provides services to educational and healthcare institutions, large-industrial and financial services customers and other entities with high-bandwidth telecommunication needs. The telecommunication services provided through this segment are subject to regulation by the Federal Communications Commission and certain state public utility commissions.
By 2000, little more than a decade after Lam had set out in his cramped office in Taipei, Quanta was exuding considerable strength. The company's roster of customers was impressive, comprising essentially all the major notebook manufacturers in the world. Among Quanta's customers were Dell, Compaq, Apple, Hewlett-Packard, IBM, Sony, Sharp, Fujitsu, and Siemens. The company had also begun to vertically integrate and diversify its operations, seeking to add alternative revenue streams to its mainstay business. In February 1999, the company formed Quanta Storage Inc., a subsidiary that manufactured data storage devices such as CD-ROM drives and DVD drives. In July 1999, Quanta Display Inc., a producer of liquid crystal display (LCD) panels, was formed. In March 2000, the
In 2001, Quanta stood apart from the rest of the computer industry, the same year the company achieved global dominance. The year marked the most debilitative market crash in the history of the high-technology industry, yet Quanta displayed energetic growth, recording double-digit increases in sales as other computer makers endured crippling declines in business. During the year, Lam anticipated shipping four million notebook units, a 50 percent increase from the total recorded in 2000. Quanta vaulted past Toshiba to become the world's largest producer of notebook computers, its factories accounting for one-seventh of all notebooks sold worldwide. Although the company's forays into cellular phones and Internet devices had yet to generate any appreciable profits, Quanta represented a glowing success story at a time many computer makers chose to forget.
As Quanta embarked on its future in the 21st century, the company continued to garner praise for its high level of efficiency in an increasingly competitive market. In 2002, production was being shifted to China, where Quanta hoped to realize a 10 percent reduction in costs. Plans called for an $18 million investment in plant improvements in China, part of the company's goal to reach $10 billion in sales from operations in China and Taiwan by 2004. In the years ahead, analysts maintained, Quanta's biggest challenge consisted of keeping its lead as growth in the notebook market declined, reaching the same saturation point experienced by makers of desktop personal computers. Prices of notebooks were expected to fall, and consequently, profit margins were expected to shrink, giving Lam a considerable obstacle to surmount if he hoped to retain his title as the Laptop King.
Principal Subsidiaries: Quanta International Ltd. (British West Indies); LINKO Computer GmbH (Germany); Access International Co.; Quanta Storage Inc.; Quanta Display Inc.; Quanta Investor Inc.; Advanced International Investor Inc.; Quanta Network Systems Inc.; QCE Computer B.V. (Netherlands); Quanta Manufacturing Inc.; Quanta Service Inc.; Quanta Computer USA, Inc.; Q-Lily Computer Inc.; QCH Inc.
Principal Competitors: Solectron Corp.; Celestica Inc.
OVERALL
Beta: 1.11
Market Cap (Mil.): $4,148.00
Shares Outstanding (Mil.): 211.74
Annual Dividend: --
Yield (%): --
FINANCIALS
PWR Industry Sector
P/E (TTM): 37.07 40.44 18.89
EPS (TTM): -33.93 -- --
ROI: 3.08 1.68 4.10
ROE: 3.44 2.86 7.13
Statistics:
Public Company
Incorporated: 1988
Employees:1,200
Sales: NT$131.09 billion (2001)
Stock Exchanges: Taiwan
Ticker Symbol: QCI
NAIC: 334110 Computer and Peripheral Equipment Manufacturing
Key Dates:
1988: Lam starts Quanta with $900,000 in capital.
1989: The company's first production facility is opened.
1996: Dell Computer becomes a Quanta customer.
1998: Quanta converts to public ownership.
2001: Quanta becomes the largest manufacturer of notebook computers in the world.
Name Age Since Current Position
John Colson 63 2002 Chairman of the Board, Chief Executive Officer
James O'Neil 52 2008 President, Chief Operating Officer
James Haddox 62 1999 Chief Financial Officer
Kenneth Trawick 63 2004 President - Telecommunications and Renewables Division
Earl Austin 41 2009 President - Natural Gas and Pipeline Division
Derrick Jensen 40 2011 Senior Vice President - Finance and Administration, Chief Accounting Officer
Benadetto Bosco 53 2004 Senior Vice President - Business Development and Outsourcing
Tana Pool 51 2006 Vice President, General Counsel
Nicholas Grindstaff 48 2010 Vice President, Treasurer
Darren Miller 51 2003 Vice President - Information Technology and Administration
James Ball 68 1998 Independent Director
Vincent Foster 54 1998 Independent Director
Louis Golm 69 2002 Independent Director
Bernard Fried 54 2004 Independent Director
Worthing Jackman 46 2005 Independent Director
Bruce Ranck 62 2005 Independent Director
Ralph DiSibio 69 2006 Independent Director
Patrick Wood 48 2006 Independent Director
John Conaway 62 2007 Independent Director
COMPANY ADDRESS
Quanta Services Inc
1360 Post Oak Blvd.
Suite 2100
Houston TX 77056