Revenues in the fourth quarter of 2020 were $2.91 billion compared to revenues of $3.11 billion in the fourth quarter of 2019, and net income attributable to common stock was $170.1 million, or $1.17 per diluted share, in the fourth quarter of 2020 compared to net income attributable to common stock of $118.1 million, or $0.80 per diluted share, in the fourth quarter of 2019. Adjusted diluted earnings per share attributable to common stock (a non-GAAP measure) was $1.22 for the fourth quarter of 2020 compared to $0.93 for the fourth quarter of 2019.
“Quanta’s utility solutions and delivery model continue to produce world-class execution and performance, which drove fourth quarter results that exceeded our expectations and completed a solid year for Quanta that included improved profitability and record earnings per share and backlog, despite the unprecedented conditions caused by the global pandemic,” said Duke Austin, President and Chief Executive Officer of Quanta Services. “We believe our 2020 results reflect the dedication and operational excellence of our people, the resilience of our business and the sound execution of our strategic initiatives.”
“Our 2021 expectations reflect growth in revenues, net income, adjusted EBITDA and adjusted earnings per share. More importantly, we continue to believe there is opportunity to drive multi-year revenue and earnings growth by focusing on our base business and continuing to provide infrastructure solutions that support our customers’ efforts to increase reliability, safety, efficiency and connectivity through modernization. Incrementally, we believe our solutions play an important role in enabling policies and goals aimed at transitioning towards a carbon neutral economy over the long-term, which many of our utility customers are leading. We are successfully executing on our strategic growth initiatives, which, coupled with our strong financial profile, position us well to continue to deliver value to stockholders.”
Favorably impacting the fourth quarter of 2020 were a $45.1 million release of a valuation allowance against foreign tax credits as a result of a financial restructure during the fourth quarter of 2020 and an $8.2 million benefit related to the release of tax contingencies upon expiration of certain statute of limitations periods. Certain other items also impacted the fourth quarter of 2020 and 2019 results and are reflected as adjustments in the calculation of Quanta’s adjusted diluted earnings per share attributable to common stock (a non-GAAP measure). These items are further described in the accompanying tables reconciling adjusted diluted earnings per share attributable to common stock to GAAP diluted earnings per share attributable to common stock. Quanta completed seven acquisitions during each of 2020 and 2019, and the results of the acquired businesses are included in Quanta’s consolidated results from the respective acquisition dates. For further information on the items that impacted comparability of 2020 and 2019, see the footnotes to the accompanying tables presenting Supplemental Segment Data and reconciliations of adjusted EBITDA and adjusted diluted earnings per share attributable to common stock (non-GAAP measures) to their comparable GAAP financial measures.
RECENT HIGHLIGHTS
- Completed Two Acquisitions During the Fourth Quarter – During the fourth quarter, Quanta completed the acquisition of a business that primarily provides aviation services for the utility industry, principally in California. Additionally, Quanta completed the acquisition of a company that provides heavy civil, industrial and energy construction and maintenance services in the western United States. Quanta believes the services provided by these businesses can support its electric power and underground utility operations in the western United States.
- Stock Repurchased – During the fourth quarter of 2020, Quanta repurchased $49.9 million of its outstanding common stock in the open market, acquiring 0.7 million shares, and during the year ended December 31, 2020, Quanta acquired a total of 6.7 million shares of its common stock for $249.9 million. From December 31, 2020 through February 24, 2021, Quanta also repurchased $7.0 million of its outstanding common stock in the open market, acquiring approximately 100,000 shares. As of February 24, 2021, Quanta had $529.8 million of availability remaining under its current stock repurchase authorizations.
- Increased Quarterly Cash Dividend by 20% – In December 2020, Quanta’s Board of Directors declared a quarterly cash dividend to stockholders of $0.06 per share, or a rate of $0.24 per share on an annualized basis, which represents a 20% increase from Quanta’s prior quarterly cash dividend paid in October 2020.
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