Quanta Services, Inc. (NYSE:PWR) Q3 2017 Earnings Conference Call Transcript

Nov 02, 2017 • 09:00 am ET


Quanta Services, Inc. (NYSE:PWR) Q3 2017 Earnings Conference Call Transcript


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Greetings, ladies and gentlemen, and welcome to the Quanta Services Third Quarter 2017 Earnings Conference Call.

(Operator Instructions)

As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Kip Rupp, VP of IR for Quanta Services. Thank you. You may begin.

Kip Rupp

Thank you, and welcome, everyone, to the Quanta Services conference call to review our third quarter 2017 results.

Before we begin our discussion, I have the normal housekeeping details to run through. If you would like to be notified when Quanta publishes news releases and other information, please sign up for e-mail alerts through the Investors & Media section of quantaservices.com. We encourage investors and others interested in our company to also follow Quanta on the social media channels listed on our website.

Please note that in today's call, we will present certain non-GAAP financial measures. In the Investors & Media section of our website, we have posted reconciliations of the differences between these measures and their most directly comparable GAAP financial measures. Please remember that information reported on this call speaks only as of today, November 2, 2017, and therefore you're advised that any time-sensitive information may no longer be accurate as of any replay of this call.

(Forward-Looking Cautionary Statements)

With that, I would now like to turn the call over to Mr. Duke Austin, Quanta's President and CEO. Duke?

Duke Austin

Thanks, Kip. Good morning, everyone, and welcome to the Quanta Services third quarter 2017 earnings conference call. On the call, I will provide operational and strategic commentary before turning it over to Derrick Jensen, Quanta's CFO, who will provide a detailed review of our third quarter results. Following Derrick's comments, we welcome your questions.

Quanta continues to make incremental progress on enhancing certain margin profiles, while strategically investing in our recurring revenue base business. We continue to believe there's opportunity to create significant shareholder value as we execute on our strategic initiatives.

We achieved record quarterly revenues and solid adjusted diluted earnings per share growth as compared to the third quarter of last year. More importantly, we're confident that Quanta is well positioned for continued growth in revenues and earnings.

I am pleased to report that we ended the quarter with a record backlog of $10.5 billion. I would note that our backlog does not yet include a couple of larger projects we have previously announced, primarily due to the ongoing permitting and regulatory approval processes.

We're confident that these projects will move forward and expect to include them in backlog when we have better visibility into mobilization. We continue to believe end market drivers are firmly in place and that we have the opportunity to achieve new levels of record backlog.

During the third quarter, three hurricanes devastated parts of Texas, the Gulf Coast, Florida, Puerto Rico and the Caribbean, causing significant damage to the electric power grid and other infrastructure. Quanta deployed significant resources during the quarter to many of these areas to assist our customers