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8-K - FORM 8-K - QUANTA SERVICES, INC. | h77420e8vk.htm |
Exhibit 99.1
PRESS RELEASE |
FOR IMMEDIATE RELEASE
10-16
10-16
Contacts:
|
James Haddox, CFO Reba Reid Quanta Services, Inc. 713-629-7600 |
Kip Rupp / krupp@drg-l.com Ken Dennard / ksdennard@drg-l.com DRG&L 404-880-9276 / 713-529-6600 |
QUANTA SERVICES REPORTS 2010 THIRD QUARTER RESULTS
HOUSTON Nov. 3, 2010 Quanta Services, Inc. (NYSE: PWR) today announced results for the
three and nine months ended Sept. 30, 2010. As previously announced, Quanta completed the
acquisition of Price Gregory Services, Incorporated on Oct. 1, 2009. Therefore, these reported
results of operations include the results of Price Gregory in the three and nine months ended Sept.
30, 2010 and are compared to the pre-acquisition historical results of Quanta for the three and
nine months ended Sept. 30, 2009.
Revenues in the third quarter of 2010 were $1.21 billion compared to revenues of $780.8
million in the third quarter of 2009. For the third quarter of 2010, net income attributable to
common stock was $62.8 million or $0.30 per diluted share. Included in net income attributable to
common stock for the third quarter of 2010 is $9.4 million of income, or a benefit of $0.04 per
diluted share, from the release of income tax contingencies. Net income attributable to common
stock for the third quarter of 2009 was $63.4 million or $0.32 per diluted share. Included in net
income attributable to common stock for the third quarter of 2009 was $22.4 million of income, or a
benefit of $0.11 per diluted share, from the release of income tax contingencies. The benefits
recorded in both periods are due to the expiration of various statutes of limitations related to
federal and state tax returns. Adjusted diluted earnings per share (a non-GAAP measure) were $0.32
for the third quarter of 2010 compared to $0.25 for the third quarter of 2009. Adjusted diluted
earnings per share is GAAP diluted earnings per share before the impact of tax contingency
releases, certain acquisition expenses and certain non-cash items such as amortization of
intangible assets, non-cash interest expense and non-cash compensation expense, all net of tax.
See the attached table for a reconciliation of non-GAAP measures to the reported GAAP measures.
Our third and fourth quarters have been negatively impacted by several project delays and
lower than expected margins on two pipeline projects due to above-average rainfall. We also
incurred approximately $5 million in costs associated with acquisition opportunities and losses on
disposals of equipment during the third quarter, said John R. Colson, chairman and CEO of Quanta
Services. We believe the industries we serve are in a transitional period. Long-awaited telecom
stimulus projects are being awarded, CREZ projects are out for bid, distribution spending is
showing signs of recovery, and the bidding season for our natural gas and pipeline segment appears
to be robust. In general, we are seeing a breakthrough in the accumulation of delayed projects,
postponed bids and deferred infrastructure spending. We believe this breakthrough will impact us
positively beginning in 2011.
Revenues for the first nine months of 2010 were $2.82 billion compared to $2.33 billion for
the first nine months of 2009. For the first nine months of 2010, net income attributable to
common stock was $119.5 million or $0.57 per diluted share, which includes a $0.02 per diluted
share effect of the loss on early extinguishment of debt resulting from the redemption of all of
Quantas outstanding 3.75% convertible subordinated notes on May 14, 2010. Also included in net
income attributable to common stock for the first nine months of 2010 and 2009 are the previously
discussed benefits from the third quarter releases of income tax contingencies. The results for
the first nine months of 2010 compare to net income attributable to common stock of $118.2 million
or $0.59 per diluted share for the first nine months of 2009. Adjusted diluted earnings per share
were $0.69 for the first nine months of 2010 as compared to $0.59 for the first nine months of
2009. See the attached table for a reconciliation of non-GAAP measures to the reported GAAP
measures.
RECENT HIGHLIGHTS
| Completed Acquisition of Valard Construction On Oct. 25, 2010, Quanta completed the acquisition of Valard Construction (Valard), based in Edmonton, Alberta. Valard delivers full engineering, procurement and construction services and turnkey solutions to the Canadian power industry. The acquisition strategically expands Quantas Canadian service offering and provides Valards diverse customer base with access to Quantas extensive energy infrastructure resources. |
| Secured Contracts for Utility-scale Solar Installations Quanta has initiated work under two contracts with Avenal Solar Holdings LLC for the construction of two utility-scale solar installations near Avenal, Calif. Under the contracts, Quanta is providing engineering, procurement and construction services for the 20-megawatt Sun City Project and the 19-megawatt Sand Drag Project. Also, Constellation Energy has awarded Quanta a contract for the construction of a 4.4-megawatt solar facility. Upon completion, this facility will be the third large-scale solar project that Quanta has installed at the Denver International Airport. |
| Secured Broadband Projects Funded by the American Recovery and Reinvestment Act Quanta has been selected to install approximately 200 miles of fiber in the western part of North Carolina for MCNC, an independent, non-profit organization that employs advanced networking technologies and systems to continuously improve learning and collaboration throughout North Carolinas education community. Over the past 60 days, Quanta has received in excess of $50 million in stimulus-related awards. |
OUTLOOK
The slow economy and regulatory hurdles continue to create a challenging business environment
in the industries Quanta serves. Management cannot predict the timing or extent of the impact that
these issues may have on demand for Quantas services, particularly in the near term. The following
forward-looking statements are based on current expectations and actual results may differ
materially.
After taking into consideration delays in the start-up of several large projects and the lower
than anticipated margins on certain gas transmission projects due to the unfavorable weather
conditions previously discussed, Quanta now expects revenues for the fourth quarter of 2010 to
range between $950 million and $1.05 billion and diluted earnings per share to be between $0.15 and
$0.17. Quanta expects adjusted diluted earnings per share (a non-GAAP measure) for the fourth
quarter of 2010 to range from $0.23 to $0.25. This non-GAAP measure is calculated on the same basis
as the historical adjusted diluted earnings per share presented in this release. Fourth quarter
estimates include the results of Valard for part of the quarter. Amortization of intangibles,
which is subject to adjustment due to the finalization of the purchase price accounting for the
acquisition of Valard, is forecasted to be approximately $10.2 million for the fourth quarter of
2010. In addition, acquisition costs are expected to be about $7.5 million and non-cash stock
compensation expenses are forecasted to be approximately $5.6 million for the fourth quarter of
2010.
Quanta Services has scheduled a conference call for Nov. 3, 2010, at 9:30 a.m. Eastern time.
To participate in the call, dial (480) 629-9818 at least ten minutes before the conference call
begins and ask for the Quanta Services conference call. Investors, analysts and the general public
will also have the opportunity to listen to the conference call over the Internet by visiting the
companys website at www.quantaservices.com. To listen to the call live on the Web, please visit
the Quanta Services website at least fifteen minutes early to register, download and install any
necessary audio software. For those who cannot listen to the live webcast, an archive will be
available shortly after the call on the companys website at www.quantaservices.com. A replay will
also be available through Nov. 10, 2010, and may be accessed at (303) 590-3030, using the pass code
4380675#. For more information, please contact Kip Rupp at DRG&L by calling (404) 880-9276 or
email krupp@drg-l.com.
The non-GAAP measures in this press release and on the companys Web site are provided to
enable investors, analysts and management to evaluate Quantas performance excluding the effects of
certain items that management believes impact the comparability of operating results between
reporting periods. In addition, management believes these measures are useful in comparing
Quantas operating results with those of its competitors. These measures should be used as an
addition to, and not in lieu of, results prepared in conformity with GAAP. Reconciliations of
other GAAP to non-GAAP measures not included in this press release can be found on the companys
Web site at www.quantaservices.com in the Investors & Media section.
Quanta Services is a leading specialized contracting services company, delivering
infrastructure solutions for the electric power, natural gas and pipeline and telecommunication
industries. The companys comprehensive services include designing, installing, repairing and
maintaining network infrastructure nationwide. Additionally, Quanta licenses point-to-point fiber
optic telecommunications infrastructure in select markets and offers related design, procurement,
construction and maintenance services. With operations throughout North America, Quanta has the
manpower, resources and expertise to complete projects that are local, regional, national or
international in scope.
Forward-Looking Statements
This press release (and oral statements regarding the subject matter of this release, including
those made on the conference call and webcast announced herein) contains forward-looking statements
intended to qualify for the safe harbor from liability established by the Private Securities
Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to,
projected revenues and earnings per share and other projections of financial and operating results
and capital expenditures; growth or opportunities in particular markets; the impact of renewable
energy initiatives, the economic stimulus package and other existing or potential legislative
actions on future spending by customers; the potential benefits from acquisitions, including Price
Gregory and Valard; the expected value of, and the scope, services, term and results of any related
projects awarded under, agreements for services to be provided by Quanta; potential opportunities
that may be indicated by bidding activity; statements relating to the business plans or financial
condition of our customers; and Quantas strategies and plans, as well as statements reflecting
expectations, intentions, assumptions or beliefs about future events, and other statements that do
not relate strictly to historical or current facts. Although Quantas management believes that the
expectations reflected in such forward-looking statements are reasonable, it can give no assurance
that such expectations will prove to be correct. These statements can be affected by inaccurate
assumptions and by a variety of risks and uncertainties that are difficult to predict or beyond our
control, including, among others, quarterly variations in operating results, including as a result
of weather, site conditions, project schedules, bidding and spending patterns and other factors
that may affect the timing or productivity on projects; continuing declines in economic and
financial conditions, including weakness in the capital markets; trends and growth opportunities in
relevant markets; delays, reductions in scope or cancellations of existing or pending projects,
including as a result of regulatory processes or capital constraints that may impact our customers;
dependence on fixed price contracts and the potential to incur losses with respect to these
contracts; estimates relating to the use of percentage-of-completion accounting; the possibility
that projects bid are not awarded to Quanta; the successful negotiation, execution, performance and
completion of pending and existing contracts; the ability to generate internal growth; the effect
of natural gas and oil prices on Quantas operations and growth opportunities; the ability to
effectively compete for new projects and market share; the failure of renewable energy initiatives,
the economic stimulus package or other existing or potential legislative actions to result in
increased demand for Quantas services; cancellation provisions within contracts and the risk that
contracts are not renewed or are replaced on less favorable terms; the inability of customers to
pay for services; the failure to recover on payment claims against project owners or to obtain
adequate compensation for customer-requested change orders; risks associated with operating in
international markets; the failure to effectively integrate Price Gregory and Valard and their
operations or to realize potential synergies, such as cross-selling opportunities, from the
acquisitions; the ability to attract skilled labor and retain key personnel and qualified
employees; potential shortage of skilled employees; estimates and assumptions in determining
financial results and backlog; the ability to realize backlog; the ability to successfully
identify, complete and integrate acquisitions; the potential adverse impact resulting from
uncertainty surrounding acquisitions, including the ability to retain key personnel from the
acquired businesses and the potential increase in risks already existing in Quantas operations;
the adverse impact of goodwill or other intangible asset impairments; growth outpacing
infrastructure; unexpected costs or liabilities that may arise from lawsuits or indemnity claims
related to the services Quanta performs; liabilities for claims that are self-insured; potential
additional risk exposure resulting from any unavailability or cancellation of third party insurance
coverage; requirements relating to governmental regulation and changes thereto; inability to
enforce our intellectual property rights or the obsolescence of such rights; risks associated with
the implementation of an information technology solution; potential liabilities relating to
occupational health and safety matters; the potential that participation in joint ventures exposes
us to liability and/or harm to our reputation for failures of our partners; risks associated with
our dependence on suppliers, subcontractors and equipment manufacturers; risks associated with
Quantas fiber optic
licensing business, including regulatory changes and the potential inability to realize a return on
capital investments; beliefs and assumptions about the collectability of receivables; the cost of
borrowing, availability of credit, fluctuations in the price and volume of Quantas common stock,
debt covenant compliance, interest rate fluctuations and other factors affecting financing and
investment activities; the ability to obtain performance bonds; the impact of a unionized workforce
on operations and the ability to complete future acquisitions; the ability to continue to meet the
requirements of the Sarbanes-Oxley Act of 2002; potential exposure to environmental liabilities;
rapid technological and structural changes that could reduce the demand for services; the ability
to access sufficient funding to finance desired growth and operations; and other risks detailed in
Quantas Annual Report on Form 10-K for the year ended December 31, 2009, Quantas Quarterly
Reports on Form 10-Q for the quarters ended March 31, 2010 and June 30, 2010, and any other
documents that Quanta files with the Securities and Exchange Commission (SEC). Should one or more
of these risks materialize, or should underlying assumptions prove incorrect, actual results may
vary materially from those expressed or implied in any forward-looking statements. You are
cautioned not to place undue reliance on these forward-looking statements, which are current only
as of this date. Quanta does not undertake and expressly disclaims any obligation to update or
revise any forward-looking statements, whether as a result of new information, future events or
otherwise. For a discussion of these risks, uncertainties and assumptions, investors are urged to
refer to Quantas documents filed with the SEC that are available through the companys Web site at
www.quantaservices.com or through the SECs Electronic Data Gathering and Analysis Retrieval System
(EDGAR) at www.sec.gov.
Quanta Services, Inc. and Subsidiaries Consolidated Statements of Operations For the Three and Nine Months Ended September 30, 2010 and 2009 (In thousands, except per share information) (Unaudited) |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenues |
$ | 1,206,007 | $ | 780,794 | $ | 2,824,792 | $ | 2,332,703 | ||||||||
Cost of services (including depreciation) |
1,016,013 | 633,166 | 2,349,619 | 1,930,162 | ||||||||||||
Gross profit |
189,994 | 147,628 | 475,173 | 402,541 | ||||||||||||
Selling, general and administrative expenses |
82,037 | 71,018 | 245,163 | 217,591 | ||||||||||||
Amortization of intangible assets |
13,396 | 5,448 | 28,334 | 15,260 | ||||||||||||
Operating income |
94,561 | 71,162 | 201,676 | 169,690 | ||||||||||||
Interest expense |
(269 | ) | (2,816 | ) | (4,660 | ) | (8,437 | ) | ||||||||
Interest income |
418 | 338 | 1,166 | 2,047 | ||||||||||||
Loss on early extinguishment of debt |
| | (7,107 | ) | | |||||||||||
Other income (expense), net |
479 | 592 | 371 | 826 | ||||||||||||
Income before income taxes |
95,189 | 69,276 | 191,446 | 164,126 | ||||||||||||
Provision for income taxes |
31,489 | 5,320 | 70,323 | 45,036 | ||||||||||||
Net income |
63,700 | 63,956 | 121,123 | 119,090 | ||||||||||||
Less: Net income attributable to noncontrolling interest |
920 | 520 | 1,613 | 873 | ||||||||||||
Net income attributable to common stock |
$ | 62,780 | $ | 63,436 | $ | 119,510 | $ | 118,217 | ||||||||
Earnings per share attributable to common stock: |
||||||||||||||||
Basic earnings per share |
$ | 0.30 | $ | 0.32 | $ | 0.57 | $ | 0.60 | ||||||||
Diluted earnings per share |
$ | 0.30 | $ | 0.32 | $ | 0.57 | $ | 0.59 | ||||||||
Weighted average shares used in computing earnings per share: |
||||||||||||||||
Basic |
209,428 | 198,608 | 209,125 | 198,618 | ||||||||||||
Diluted |
211,096 | 205,224 | 210,798 | 198,815 | ||||||||||||
Quanta Services, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands) (Unaudited) |
September 30, | December 31, | |||||||
2010 | 2009 | |||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ | 441,247 | $ | 699,629 | ||||
Accounts receivable, net |
787,580 | 688,260 | ||||||
Costs and estimated earnings in excess of billings on
uncompleted contracts |
266,032 | 61,239 | ||||||
Inventories |
46,445 | 33,451 | ||||||
Prepaid expenses and other current assets |
79,958 | 100,213 | ||||||
Total current assets |
1,621,262 | 1,582,792 | ||||||
PROPERTY AND EQUIPMENT, net |
864,279 | 854,437 | ||||||
OTHER ASSETS, net |
39,317 | 45,345 | ||||||
OTHER INTANGIBLE ASSETS, net |
156,501 | 184,822 | ||||||
GOODWILL |
1,449,603 | 1,449,558 | ||||||
Total assets |
$ | 4,130,962 | $ | 4,116,954 | ||||
LIABILITIES AND EQUITY |
||||||||
CURRENT LIABILITIES: |
||||||||
Current maturities of long-term debt and notes payable |
$ | 262 | $ | 3,426 | ||||
Accounts payable and accrued expenses |
440,877 | 422,034 | ||||||
Billings in excess of costs and estimated earnings on
uncompleted contracts |
63,258 | 70,228 | ||||||
Total current liabilities |
504,397 | 495,688 | ||||||
CONVERTIBLE SUBORDINATED NOTES, net |
| 126,608 | ||||||
DEFERRED INCOME TAXES AND OTHER
NON-CURRENT LIABILITIES |
388,490 | 384,097 | ||||||
Total liabilities |
892,887 | 1,006,393 | ||||||
TOTAL STOCKHOLDERS EQUITY |
3,235,084 | 3,109,183 | ||||||
NONCONTROLLING INTEREST |
2,991 | 1,378 | ||||||
TOTAL EQUITY |
3,238,075 | 3,110,561 | ||||||
Total liabilities and equity |
$ | 4,130,962 | $ | 4,116,954 | ||||
Quanta Services, Inc. and Subsidiaries Supplemental Data For the Three and Nine Months Ended September 30, 2010 and 2009 (In thousands, except percentages) (Unaudited) |
Segment Results
We report our results under four reporting segments: (1) Electric Power Infrastructure
Services, (2) Natural Gas and Pipeline Infrastructure Services, (3) Telecommunications
Infrastructure Services and (4) Fiber Optic Licensing.
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||||||||||
Electric Power |
$ | 532,603 | 44.2 | % | $ | 512,797 | 65.7 | % | $ | 1,452,774 | 51.4 | % | $ | 1,551,496 | 66.5 | % | ||||||||||||||||
Natural Gas and Pipeline |
551,674 | 45.7 | 131,628 | 16.9 | 1,003,728 | 35.5 | 433,138 | 18.6 | ||||||||||||||||||||||||
Telecommunications |
93,618 | 7.8 | 113,998 | 14.6 | 289,506 | 10.3 | 284,024 | 12.2 | ||||||||||||||||||||||||
Fiber Optic Licensing |
28,112 | 2.3 | 22,371 | 2.8 | 78,784 | 2.8 | 64,045 | 2.7 | ||||||||||||||||||||||||
Consolidated revenues |
$ | 1,206,007 | 100.0 | % | $ | 780,794 | 100.0 | % | $ | 2,824,792 | 100.0 | % | $ | 2,332,703 | 100.0 | % | ||||||||||||||||
Operating income (loss): |
||||||||||||||||||||||||||||||||
Electric Power |
$ | 60,361 | 11.3 | % | $ | 66,778 | 13.0 | % | $ | 150,567 | 10.4 | % | $ | 178,768 | 11.5 | % | ||||||||||||||||
Natural Gas and Pipeline |
53,118 | 9.6 | 2,097 | 1.6 | 97,388 | 9.7 | 8,157 | 1.9 | ||||||||||||||||||||||||
Telecommunications |
5,605 | 6.0 | 12,317 | 10.8 | 12,499 | 4.3 | 18,684 | 6.6 | ||||||||||||||||||||||||
Fiber Optic Licensing |
13,266 | 47.2 | 11,757 | 52.6 | 39,265 | 49.8 | 32,023 | 50.0 | ||||||||||||||||||||||||
Corporate and Non-Allocated Costs |
(37,789 | ) | N/A | (21,787 | ) | N/A | (98,043 | ) | N/A | (67,942 | ) | N/A | ||||||||||||||||||||
Consolidated operating income |
$ | 94,561 | 7.8 | % | $ | 71,162 | 9.1 | % | $ | 201,676 | 7.1 | % | $ | 169,690 | 7.3 | % | ||||||||||||||||
Backlog
Backlog represents the amount of revenue that we expect to realize from work to be
performed in the future on uncompleted contracts, including new contractual arrangements on
which work has not yet begun. The backlog estimates include amounts under long-term
maintenance contracts or master service agreements (MSAs), in addition to construction
contracts. We estimate the amount of work to be disclosed as backlog as the estimate of
future work to be performed by using recurring historical trends inherent in the current
MSAs, factoring in seasonal demand and projecting customer needs based upon ongoing
communications with the customer. In many instances, our customers are not contractually
committed to specific volumes of services under our MSAs, and many of our contracts may be
terminated with notice. There can be no assurance as to our customers requirements or that
our estimates are accurate. In addition, many of our MSAs, as well as contracts for fiber
optic licensing, are subject to renewal options. For purposes of calculating backlog, we have
included future renewal options only to the extent that the renewals can reasonably be
expected to occur. We also included in backlog our share of the work to be performed under
contracts signed by joint ventures in which we have an interest.
The following table presents our total backlog by reportable segment as of September 30,
2010 and June 30, 2010 along with an estimate of the backlog amounts expected to be realized
within 12 months of each balance sheet date:
Backlog as of | ||||||||||||||||
September 30, 2010 | June 30, 2010 | |||||||||||||||
12 Month | Total | 12 Month | Total | |||||||||||||
Electric Power |
$ | 1,562,553 | $ | 4,163,150 | $ | 1,415,873 | $ | 3,881,347 | ||||||||
Natural Gas and Pipeline |
627,697 | 841,433 | 981,434 | 1,288,624 | ||||||||||||
Telecommunications |
189,329 | 315,090 | 170,166 | 253,038 | ||||||||||||
Fiber Optic Licensing |
95,815 | 403,957 | 92,347 | 412,669 | ||||||||||||
Total |
$ | 2,475,394 | $ | 5,723,630 | $ | 2,659,820 | $ | 5,835,678 | ||||||||
Quanta Services, Inc. and Subsidiaries Reconciliation of Non-GAAP Financial Measures For the Three and Nine Months Ended September 30, 2010 and 2009 (In thousands, except per share information) (Unaudited) |
The non-GAAP measure of adjusted diluted earnings per share is provided to enable
investors to evaluate performance excluding the effects of items that management believes impact
the comparability of operating results between periods. More particularly, (i) amortization of
intangible assets are impacted by Quantas acquisition activity, which can cause these amounts to
vary from period-to-period; (ii) non-cash interest expense varies from period-to-period depending
on the amount of the convertible subordinated notes outstanding during the period; (iii) non-cash
compensation expense may vary due to acquisition activity, factors influencing the estimated fair
value of performance-based awards, estimated forfeiture rates and amounts granted during the
period; (iv) acquisition costs vary period-to-period depending on the level of Quantas acquisition
activity ongoing during the period; and (v) the loss on early extinguishment of debt is a
non-recurring expense that occurred as a result of Quantas redemption of all of its 3.75%
convertible subordinated notes in the second quarter of 2010.
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Adjusted diluted earnings per share: |
||||||||||||||||
Net income attributable to common stock (GAAP as reported) |
$ | 62,780 | $ | 63,436 | $ | 119,510 | $ | 118,217 | ||||||||
Adjustments: |
||||||||||||||||
Impact of loss on early extinguishment of debt, net of
tax (1) |
| | 4,493 | | ||||||||||||
Impact of tax contingency releases(2) |
(9,428 | ) | (22,446 | ) | (9,428 | ) | (22,446 | ) | ||||||||
Acquisition costs |
1,726 | 1,313 | 2,524 | 1,313 | ||||||||||||
Adjusted net income attributable to common stock before
certain non-cash adjustments |
55,078 | 42,303 | 117,099 | 97,084 | ||||||||||||
Non-cash stock-based compensation, net of tax |
3,477 | 3,031 | 10,652 | 8,927 | ||||||||||||
Non-cash interest expense, net of tax |
| 711 | 1,107 | 2,092 | ||||||||||||
Amortization of intangible assets, net of tax |
8,172 | 3,323 | 17,284 | 9,309 | ||||||||||||
Adjusted net income attributable to common stock after
certain
non-cash adjustments |
66,727 | 49,368 | 146,142 | 117,412 | ||||||||||||
Effect of convertible subordinated notes under the if-
converted method interest expense addback, net of tax |
| 949 | 1,412 | 2,846 | ||||||||||||
Adjusted net income attributable to common stock for
adjusted diluted earnings per share |
$ | 66,727 | $ | 50,317 | $ | 147,554 | $ | 120,258 | ||||||||
Calculation of weighted average shares for adjusted
diluted earnings per share: |
||||||||||||||||
Weighted average shares outstanding for basic earnings per
share |
209,428 | 198,608 | 209,125 | 198,618 | ||||||||||||
Effect of dilutive stock options |
136 | 201 | 141 | 197 | ||||||||||||
Effect of shares held in escrow |
1,532 | | 1,532 | | ||||||||||||
Effect of convertible subordinated notes under the if
converted method weighted convertible shares issuable |
| 6,415 | 3,149 | 6,415 | ||||||||||||
Weighted average shares outstanding for adjusted diluted
earnings per share |
211,096 | 205,224 | 213,947 | 205,230 | ||||||||||||
Adjusted diluted earnings per share |
$ | 0.32 | $ | 0.25 | $ | 0.69 | $ | 0.59 | ||||||||
(1) | Reflects the elimination of the loss on early extinguishment of debt associated with the May 14, 2010 redemption of all of Quantas outstanding 3.75% convertible subordinated notes. | |
(2) | Reflects the elimination of tax benefits primarily associated with the expiration of various federal and state tax statutes of limitations during the third quarters of 2010 and 2009. |