XML 49 R11.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Acquisitions | 3 Months Ended
--- | ---
Mar. 31, 2014
Business Combinations [Abstract] |
Acquisitions |
4. | ACQUISITIONS:
2014 Acquisitions During the first quarter of 2014, Quanta completed five acquisitions. Four of these five companies are electric power infrastructure services companies located in Canada. The fifth company is a general engineering and construction company, based in California, specializing in hydrant fueling, waterfront and utility construction for the U.S. Department of Defense and is generally included in Quanta’s Oil and Gas Infrastructure Services segment. The aggregate consideration paid for these acquisitions consisted of approximately $79.9 million in cash, 393,052 shares of Quanta common stock and 899,858 exchangeable shares of a Canadian subsidiary of Quanta that are substantially equivalent to, and exchangeable on a one-for-one basis for, Quanta common stock. In addition, Quanta issued one share of Series G preferred stock with voting rights equivalent to Quanta common stock equal to the number of exchangeable shares outstanding at any time. The aggregate value of the above issued securities on the respective closing dates of the acquisitions totaled approximately $36.6 million. As these transactions were effective during the first quarter of 2014, the results are included in Quanta’s consolidated financial statements beginning on the respective dates of acquisition. These acquisitions should enable Quanta to further enhance its electric power infrastructure service offerings in Canada and its oil and gas infrastructure service offerings in the U.S. 2013 Acquisitions During 2013, Quanta acquired six businesses, which included electric power infrastructure services companies and oil and gas infrastructure services companies based in the U.S., Canada and Australia. The aggregate consideration paid for these acquisitions consisted of approximately $341.1 million in cash and 3,547,482 shares of Quanta common stock valued, as of the respective dates of issuance, at approximately $88.9 million. The results for each company have been included in Quanta’s consolidated financial statements beginning on the respective dates of acquisition. These acquisitions have enabled Quanta to further enhance its electric power infrastructure service and oil and gas infrastructure service offerings in the United States and select international markets. The following table summarizes the aggregate consideration paid through March 31, 2014 for the 2014 and 2013 acquisitions and presents the allocation of these amounts to the net tangible and identifiable intangible assets based on their estimated fair values as of the respective acquisition dates. This allocation requires a significant use of estimates and is based on information that was available to management at the time these consolidated financial statements were prepared (in thousands).
|  | 2014 |  |  | 2013 |
Consideration: |  |  |  |  |  |  |  |
Value of Quanta common stock and exchangeable shares issued |  | $ | 36,604 |  |  | $ | 88,895 |
Cash paid |  |  | 79,927 |  |  |  | 341,064 |
Fair value of total consideration transferred |  | $ | 116,531 |  |  | $ | 429,959 |
Current assets |  | $ | 52,986 |  |  | $ | 193,895 |
Property and equipment |  |  | 33,387 |  |  |  | 60,988 |
Other assets |  |  | 3,373 |  |  |  | 1,009 |
Identifiable intangible assets |  |  | 21,048 |  |  |  | 55,124 |
Current liabilities |  |  | (41,281 | ) |  |  | (127,430 | )
Deferred tax liabilities, net |  |  | (3,692 | ) |  |  | (4,083 | )
Other long-term liabilities |  |  | (3,935 | ) |  |  | (5,350 | )
Total identifiable net assets |  |  | 61,886 |  |  |  | 174,153 |
Goodwill |  |  | 54,645 |  |  |  | 255,806 |
|  | $ | 116,531 |  |  | $ | 429,959 |
The fair value of current assets acquired in 2014 included accounts receivable with a fair value of $31.1 million. The fair value of current assets acquired in 2013 included accounts receivable with a fair value of $83.9 million. Goodwill represents the excess of the purchase price over the net amount of the fair values assigned to assets acquired and liabilities assumed. The 2014 and 2013 acquisitions strategically expanded Quanta’s Canadian and Australian service offerings and enhanced its domestic electric power and oil and gas service offerings, which Quanta believes contributes to the recognition of the goodwill. In connection with the 2014 acquisitions, goodwill of $47.0 million was recorded for reporting units included within Quanta’s electric power division and $7.6 million was recorded for reporting units included within Quanta’s oil and gas infrastructure division at March 31, 2014. In connection with the 2013 acquisitions, goodwill of $112.5 million was recorded for reporting units included within Quanta’s electric power division and $143.3 million was recorded for reporting units included within Quanta’s oil and gas infrastructure division at December 31, 2013. Goodwill of approximately $7.6 million and $213.6 million is expected to be deductible for income tax purposes related to the businesses acquired in 2014 and 2013. The unaudited supplemental pro forma results of operations have been provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved by the combined companies for the periods presented or that may be achieved by the combined companies in the future. Future results may vary significantly from the results reflected in the following pro forma financial information because of future events and transactions, as well as other factors (in thousands, except per share amounts):
|  | Three Months Ended March 31, |
|  | 2014 |  |  | 2013 |
Revenues |  | $ | 1,766,756 |  |  | $ | 1,785,809 |
Gross profit |  | $ | 271,736 |  |  | $ | 277,641 |
Selling, general and administrative expenses |  | $ | 174,359 |  |  | $ | 128,020 |
Amortization of intangible assets |  | $ | 8,326 |  |  | $ | 9,236 |
Net income |  | $ | 57,675 |  |  | $ | 89,915 |
Net income attributable to common stock |  | $ | 53,435 |  |  | $ | 85,139 |
Earnings per share attributable to common stock - basic and diluted |  | $ | 0.24 |  |  | $ | 0.39 |
The pro forma combined results of operations for the three months ended March 31, 2014 and 2013 have been prepared by adjusting the historical results of Quanta to include the historical results of the 2014 acquisitions as if they occurred January 1, 2013. The pro forma combined results of operations for the three months ended March 31, 2013 have also been prepared by adjusting the historical results of Quanta to include the historical results of the 2013 acquisitions as if they occurred January 1, 2012. These pro forma combined historical results were then adjusted for the following: a reduction of interest expense and interest income as a result of the repayment of outstanding indebtedness, a reduction of interest income as a result of the cash consideration paid net of cash received, an increase in amortization expense due to the incremental intangible assets recorded related to the 2014 and 2013 acquisitions, an increase or decrease in depreciation expense within cost of services related to the net impact of adjusting acquired property and equipment to the acquisition date fair value and conforming depreciable lives with Quanta’s accounting policies, an increase in the number of outstanding shares of Quanta common stock and certain reclassifications to conform the acquired companies’ presentation to Quanta’s accounting policies. The pro forma results of operations do not include any adjustments to eliminate the impact of acquisition related costs or any cost savings or other synergies that may result from the 2014 and 2013 acquisitions. As noted above, the pro forma results of operations do not purport to be indicative of the actual results that would have been achieved by the combined company for the periods presented or that may be achieved by the combined company in the future. Revenues of approximately $37.0 million and income (loss) before income taxes of approximately $(0.1) million, which includes $4.2 million of acquisition costs, were included in Quanta’s consolidated results of operations for the three months ended March 31, 2014 related to the 2014 acquisitions following their respective dates of acquisition.

X
- Details
Name: | us-gaap_BusinessCombinationsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References No definition available. + Details
Name: | us-gaap_MergersAcquisitionsAndDispositionsDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration