Profile: Quanta Services, Inc. (PWR)

Quanta Services, Inc. (Quanta) is a provider of specialty contracting services. The Company operates in two reportable business segments: the infrastructure services and the dark fiber segment. The infrastructure services segment provides specialized contracting services, offering end-to-end network solutions to the electric power, gas, telecommunications and cable television industries. The dark fiber segment designs, procures, constructs and maintains fiber-optic telecommunications infrastructure in select markets, and licenses the right to use point-to-point fiber-optic telecommunications facilities to customers. In the Company's consolidated revenues during the year ended December 31, 2008, 56.8% was attributable to electric power work, 20.8% to gas work; 14.2% to telecommunications and cable television work, and 6.6% to ancillary services. In April 2008, the Company acquired a telecommunication and cable construction company. In July 2008, it acquired a helicopter-assisted transmission line installation, maintenance and repair services company. In November 2008, it acquired two affiliated professional telecommunications engineering companies. In October 2009, the Company acquired Price Gregory Services, Incorporated.

Quanta's customers include American Electric Power, AT&T, BC Transmission Corporation, CenterPoint Energy, Comcast, Crosstex Energy Services, Duke Energy, Entergy, Exelon, Florida Power & Light, Georgia Power Company, Northeast Utilities System, Pacific Gas and Electric, Puget Sound Energy, San Diego Gas & Electric, Sempra Energy Company, Southern California Edison, Verizon Communications, Westar Energy, Inc., Wisconsin Public Service and Xcel Energy. Quanta’s 10 customers accounted for 30.3% of its consolidated revenues during 2008. Its customer accounted for approximately 4.4% of its consolidated revenues in 2008.

Infrastructure Services Segment

Quanta provides a variety of end-to-end services to the electric power and gas industries, including installation, repair and maintenance of electric power transmission lines ranging in capacity from 69,000 volts to 765,000 volts; installation, repair and maintenance of electric power distribution networks; provision of planning services for electric distribution networks; energized installation, maintenance and upgrades utilizing bare hand and hot stick methods and its robotic arm, and design and construction of independent power producer (IPP) transmission and substation facilities. Other services include design and construction of substation projects; installation of fiber optic lines for voice, video and data transmission on existing electric power infrastructure; installation of broadband over power line (BPL) technology on electric distribution networks; installation and maintenance of joint trench systems, which include electric power, natural gas and telecommunications networks in one trench; trenching and horizontal boring for underground electric power network installations; design and installation of wind turbine facilities; installation of redundant systems, switchyards and transmission networks for renewable generation power plants such as wind and solar; provision of technical strategic consulting for electric transmission and distribution systems; cable and fault locating and storm damage and other emergency restoration work. Quanta provides various services to the natural gas industry, including installation and maintenance of gas transmission and distribution systems; trenching and horizontal boring for underground gas network installations; provision of cathodic protection design and installation services, and provision of pipeline testing and integrity services.

Quanta's telecommunications and cable television network services include fiber optic, copper and coaxial cable installation, and maintenance for video, data and voice transmission; design, construction and maintenance of digital subscriber line (DSL) networks; leasing point-to-point telecommunications infrastructure through its dark fiber business; engineering and erection of cellular, digital, personal communication systems (PCS), microwave and other wireless communications towers; design, and installation of switching systems for incumbent local-exchange carriers, newly competitive local exchange carriers, long-distance providers and cable television providers. Other services include installation and maintenance of joint trench systems, which include telecommunication, electric power and natural gas networks in one trench; trenching and plowing applications; horizontal directional boring; vacuum excavation services; cable locating; upgrading power and telecommunications infrastructure for cable installations; splicing and testing of fiber optic and copper networks and balance sweep certification of coaxial networks; residential installation and customer connects, both analog and digital, for cable television, telephone and Internet services, and storm damage and other emergency restoration work.

Quanta provides a range of ancillary services to commercial, industrial and governmental entities, including design, installation, maintenance and repair of electrical components, fiber optic cabling and building control and automation systems, and installation of intelligent traffic networks, such as traffic signals, controllers, connecting signals, variable message signs, closed circuit television and other monitoring devices for governments. Other services include installation of cable and control systems for light rail lines, airports and highways, provision of specialty rock trenching, rock saw, rock wheel, directional boring and road milling for industrial and commercial customers, and installation of fueling systems.

Dark Fiber Segment

The Company provides services related to fiber-optic telecommunications facilities which, includes design, procurement and construction of fiber-optic telecommunications facilities, with ownership retained by it. It licensing the right to use a portion of the capacity of the fiber-optic telecommunications facilities and ongoing maintenance of fiber-optic telecommunications facilities licensed to customers.