9. End Markets Select Customers
* Largest customer accounted for < 8% of 2018 revenues * Top 10 customers accounted for ~ 37% of 2018 revenues
Sources: The C Three Group, Douglas-Westwood and Verizon
Select Industry
Data Points
21. 4G/LTE 5G 5G Enabled Across
Coverage Macro-Cell Small Cells Top 25 U.S. Metro Mkts.
Example Square Miles 1 1 174,000
Cells Per Sq. Mile (Urban) 1 60 10,440,000
Miles of Fiber Backhaul/Site 1-5 8 1,392,000
Miles of Fiber/Sq. Mile 1-2 480 83,520,000
•
•
•
•
•
22. 5G and
Mobility
Cloud /
Data Centers
Internet of Things
& Connected Objects
Electric
Vehicles
Autonomous
Vehicles Smart Cities
Applicable
Infrastructure
Requirements
Electric Power
Communications
33. Corporate Office
2800 Post Oak Blvd., Suite 2600
Houston, TX 77056
713-629-7600
www.quantaservices.com
Investor Contact
Kip Rupp, CFA
Vice President – Investor Relations
713-341-7260
investors@quantaservices.com
34.
35. 2015 2016 2017 2018 2019 2019
Reconciliation of adjusted net income from continuing operations
attributable to common stock:
Net income from continuing operations attributable to common stock
(GAAP as reported) 120,286$ 198,725$ 314,978$ 293,346$ 361,600$ 410,900$
Adjustments:
Asset impairment charges 58,451 7,964 59,950 52,658 - -
Severance and restructuring charges - 6,352 - 1,326 - -
Acquisition and integration costs 7,966 3,053 10,579 17,233 3,700 3,700
Bargain purchase gain - - - - (3,100) (3,100)
Impact of Tax Cut and Jobs Act - - (70,129) 33,067 - -
Tax benefits primarily related to entity restructuring and recapitalization efforts - - (18,224) 1,842 - -
Impact of income tax contingency releases - (20,488) (7,223) (8,049) - -
Change in fair value of contingent consideration liabilities - - (5,171) (11,248) 4,300 4,300
Impact of tax benefit from realization of previously unrecognized deferred tax
asset (4,228) - - - - -
Impact of Change in a Canadian provincial statutory tax rate 4,982 - - - (2,500) (2,500)
Impact of favorable tax settlement, net of reduction of related indemnification
asset - - - - (900) (900)
Income tax impact of adjustments (16,186) (3,982) (24,197) (18,649) (1,900) (1,900)
Adjusted net income from continuing operations attributable to common stock
before certain non-cash adjustments 171,271 191,624 260,563 361,526 361,200 410,500
Non-cash stock based compensation 36,939 41,134 46,448 52,484 56,900 56,900
Amortization of intangible assets 34,848 31,685 32,205 43,994 49,700 49,700
Income tax impact of non-cash adjustments (25,817) (26,183) (28,877) (25,219) (27,900) (27,900)
Adjusted net income from continuing operations attributable to common
stock 217,241$ 238,260$ 310,339$ 432,785$ 439,900$ 489,200$
Weighted average shares:
Weighted average shares outstanding for diluted earnings per share 195,120 157,288 157,155 154,226 147,100 147,100
Weighted average shares outstanding for adjusted diluted earnings per share 195,120 157,288 157,155 154,226 147,100 147,100
Diluted earnings per share from continuing operations attributable to
common stock and adjusted diluted earnings per share from continuing
operations attributable to common stock:
Diluted earnings per share from continuing operations attributable to
common stock 0.62$ 1.26$ 2.00$ 1.90$ 2.46$ 2.79$
Adjusted diluted earnings per share from continuing operations attributable to
common stock 1.11$ 1.51$ 1.97$ 2.81$ 2.99$ 3.33$
Estimated Guidance Range
For the Years Ended December 31,
(in thousands, except per share information)
(Unaudited)
As of August 1, 2019
36. 2015 2016 2017 2018 2019 2019
Net income attributable to common stock (as defined by GAAP) 120,286$ 198,725$ 314,978$ 293,346$ 361,600$ 410,900$
Interest expense 8,024 14,887 20,946 36,945 58,000 60,000
Interest income (1,493) (2,423) (832) (1,555) - -
Provision for income taxes 97,472 107,246 35,532 161,659 169,000 197,000
Amortization of intangible assets 34,848 31,685 32,205 43,994 49,700 49,700
Equity in (earnings) losses of unconsolidated affiliates 466 979 10,945 52,867 (65,100) (65,100)
Depreciation expense 162,845 170,240 183,808 202,519 213,200 213,200
EBITDA 422,448$ 521,339$ 597,582$ 789,775$ 786,400$ 865,700$
Non-cash stock-based compensation 36,939 41,134 46,448 52,484 56,900 56,900
Acquisition and integration costs 7,966 3,053 10,579 17,233 3,700 3,700
Asset impairment charges 58,451 7,964 59,950 52,658 - -
Bargain purchase gain - - - - (3,100) (3,100)
Change in fair value of contingent consideration liabilities - - (5,171) (11,248) 4,300 4,300
Severance and restructuring charges - 6,352 - 1,326 - -
Reduction of indemnification asset - - - - 4,000 4,000
Adjusted EBITDA 525,804$ 579,842$ 709,388$ 902,228$ 852,200$ 931,500$
Consolidated Revenues $7,572,436 $7,651,319 $9,466,478 $11,171,423 $11,500,000 $11,900,000
Adjusted EBITDA Margin 6.9% 7.6% 7.5% 8.1% 7.4% 7.8%
(Unaudited)
Estimated Guidance Range
As of August 1, 2019
37. 2015 2016 2017 2018
Net Cash Provided by Operating Activities of
Continuing Operations 627,762 390,749 371,891 358,789
Less: Net Capital Expenditures:
Additions of Property and Equipment (209,968) (212,555) (244,651) (293,595)
Proceeds from Sale of Property and Equipment 26,178 21,975 23,348 31,780
Proceeds from Insurance Settlements Related to
Property and Equipment 869 546 1,175 714
Net Capital Expenditures (182,921) (190,034) (220,128) (261,101)
Free Cash Flow 444,841 200,715 151,763 97,688
38. Revenue Growth impact on Free Cash Flow
$MMs 2013 2018 Change
Revenue, reported $6,412 $11,171 $4,760
NWC $750 $1,507 $757
Revenue @ 3% growth per year $6,412 $7,433 $1,021
Implied NWC $750 $1,003 $253
Excess NWC to support Revenue Growth $504
Cumulative '13-'18E
$MMs Actual NWC Impact Pro Forma
Adj. EBITDA $4,138 $4,138
Adj. Net Income $1,940 $1,940
Free Cash Flow $1,073 $504 $1,578
Free Cash Flow / Adj EBITDA 26% 12% 38%
Free Cash Flow / Adj Net Income 55% 26% 81%
