(EDGAR Online via COMTEX) -- Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. The following discussion and analysis of the financial condition and results of operations of Quanta Services, Inc. (together with its subsidiaries, Quanta, we, us or our) should be read in conjunction with our condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q (Quarterly Report) and with our Annual Report on Form 10-K for the year ended December 31, 2020 (2020 Annual Report), which was filed with the Securities and Exchange Commission (SEC) on March 1, 2021 and is available on the SEC's website at www.sec.gov and on our website at www.quantaservices.com . The discussion below contains forward-looking statements that are based upon our current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to inaccurate assumptions and known or unknown risks and uncertainties, including those identified in Cautionary Statement About Forward-Looking Statements and Information above and Item 1A. Risk Factors of Part I of our 2020 Annual Report. Overview We are a leading provider of specialty contracting services, delivering comprehensive infrastructure solutions for the electric and gas utility, communications, pipeline and energy industries in the United States, Canada, Australia and select other international markets. The performance of our business generally depends on our ability to obtain contracts with customers and to effectively deliver the services provided under those contracts. The services we provide include the design, engineering, new construction, upgrade and repair and maintenance of infrastructure within each of the industries we serve, such as electric power transmission and distribution networks; substation facilities; communications and cable multi-system operator networks; gas utility systems; and pipeline transmission systems and facilities. Our customers include many of the leading companies in the industries we serve, and we endeavor to develop and maintain strategic alliances and preferred service provider status with our customers. Our services are typically provided pursuant to master service agreements, repair and maintenance contracts and fixed price and non-fixed price new construction contracts. We report our results under two reportable segments: (1) Electric Power Infrastructure Solutions and (2) Underground Utility and Infrastructure Solutions. This structure is generally focused on broad end-user markets for our services. Included within the Electric Power Infrastructure Solutions segment are the results related to our telecommunications infrastructure services. Current Quarter Financial Results and Significant Operational Trends and Events Key financial results for the three months ended March 31, 2021 included: Consolidated revenues decreased 2.2% to $2.70 billion as compared to consolidated revenues of $2.76 billion for the three months ended March 31, 2020; Operating income increased 40.9%, or $33.0 million, to $113.7 million as compared to $80.7 million for the three months ended March 31, 2020; Net income attributable to common stock increased 132.0%, or $51.1 million, to $89.8 million as compared to $38.7 million for the three months ended March 31, 2020; Diluted earnings per share increased 136.6%, or $0.36, to $0.62 as compared to $0.26 for the three months ended March 31, 2020; EBITDA (a non-GAAP measure) increased 43.0%, or $60.4 million, to $200.8 million, as compared to $140.4 million for the three months ended March 31, 2020, and adjusted EBITDA (a non-GAAP measure) increased 35.4%, or $57.6 million, to $220.2 million, as compared to $162.6 million for the three months ended March 31, 2020; Net cash provided by operating activities decreased by $101.9 million to $125.6 million, as compared to net cash provided by operating activities of $227.5 million for the three months ended March 31, 2020; Remaining performance obligations increased 3.8%, or $149.5 million, to $4.13 billion as of March 31, 2021 as compared to $3.99 billion as of December 31, 2020; and Total backlog (a non-GAAP measure) increased 4.6%, or $697.9 million, to $15.83 billion as of March 31, 2021, as compared to $15.13 billion as of December 31, 2020. For a reconciliation of EBITDA and adjusted EBITDA to net income attributable to common stock, the most comparable GAAP measure, and a reconciliation of backlog to remaining performance obligations, the most comparable GAAP measure, see Non-GAAP Reconciliations below.
As described below, during the three months ended March 31, 2021, our results were impacted by certain significant operational trends and events as compared to the three months ended March 31, 2020. Electric Power Infrastructure Solutions Segment
We are focused on maintaining a strong balance sheet as part of supporting our strategic operations, but also to help us navigate the remaining challenges presented by the COVID-19 pandemic. As of March 31, 2021, we had $200.2 million of cash and cash equivalents and $1.87 billion of availability under our senior credit facility. We generated $125.6 million of cash flow from operating activities in the three months ended March 31, 2021 and $1.12 billion in cash flow from operating activities in the year ended December 31, 2020. We plan to continue to maintain capital discipline and monitor rapidly changing market dynamics and adjust our costs and financing strategies accordingly, and we expect capital expenditures for 2021 to be approximately $325 million. Additionally, we continue to assess the expected negative impact of the challenged energy market, which has been compounded by the COVID-19 pandemic, on our goodwill, intangible assets, long-lived assets, and investments. We did not recognize any impairments during the three months ended March 31, 2021; however, the potential impacts remain uncertain and may change based on numerous factors. We are continuing to monitor these conditions and should a reporting unit or investment suffer additional significant declines in actual or forecasted financial results, the risk of impairment would increase.
With respect to our communications service offerings, consumer and commercial demand for communication and data-intensive, high-bandwidth wireline and wireless services and applications is driving significant investment in infrastructure and the deployment of new technologies. In particular, communications providers in North America are in the early stages of developing new fifth generation wireless services (5G), which are intended to facilitate bandwidth-intensive services at high speeds for consumers and commercial applications. Additionally, the Federal Communications Commission has enacted the Rural Digital Opportunity Fund for the purpose of deploying billions of dollars in federal funds for high speed fixed broadband service to underserved rural homes and small businesses. As a result of these industry trends, we believe there will be meaningful demand for our engineering and construction services. We also reoriented our communications service offerings to strategically focus on the North American market, substantially completing the exit of our Latin American communications operations during 2020, which we anticipate will result in improved profitability.
Regulatory Challenges and Opportunities. The regulatory environment creates both challenges and opportunities for our business, and in recent years electric power solutions and underground utility and infrastructure solutions margins have been impacted by regulatory and permitting delays in certain periods, particularly with respect to larger electric transmission and larger pipeline projects. Regulatory and environmental permitting processes continue to create uncertainty for projects and negatively impact customer spending, and delays have increased as the COVID-19 pandemic has impacted regulatory agency operations. For example, a recent challenge and changes to the U.S. Army Corps of Engineers Clean Water Act Section 404 Nationwide Permit 12 have impacted certain projects and could result in increased costs and project interruptions or delays if we or our customers are forced to seek additional or revised individual permits from the U.S. Army Corps of Engineers.
our financial results due to, among other things, the termination, deferral or delay of projects, reduced productivity and exposure to significant liabilities. See Overview - COVID-19 Pandemic above for further discussion regarding the impact of the COVID-19 pandemic. However, in some cases, severe weather events . . .
May 07, 2021
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