Quanta Services raises earnings expectations for 2001

Quanta Services, Inc. (Houston, TX) announced today that it was raising its expectations for earnings in 2001 to the range of $2.14 to $2.18 per share as a result of the acquisition of four companies that are expected to produce annualized revenues of approximately $94 million in 2001 and the conclusion of Quanta's management services agreement with UtiliCorp United Inc. (UtiliCorp).

The four companies Quanta acquired include

• JT Telecommunications Inc.(Camarillo, CA) — installs and maintains central office equipment and telecommunications systems
  
• Professional Teleconcepts Group (Norwich, NY) — similar services to JT Telecom
  
• Network Electric Company (Reno, NV) — provides electrical contracting and engineering services to the distributed power and commercial and industrial markets
  
• Parkside Utility Construction (Johnston, RI) — installs and maintains infrastructure for the telecommunications industry.

"These four high quality service providers expand our capabilities in the fast growing central office equipment and installation markets," stated John Colson, Quanta Services' Chief Executive Officer. "In addition, we have acquired one of the premier contractors to the distributed power markets, which are rapidly growing due to the demand for more environmentally friendly power sources."

Additionally, Quanta announced today that it agreed to conclude its obligations under the management services agreement with UtiliCorp in exchange for a one-time payment to UtiliCorp of approximately $28.7 million. Quanta entered into the management services agreement as a condition to UtiliCorp's investment of $186 million in Quanta in September 1999. The management services agreement required Quanta to make quarterly payments to UtiliCorp of $2,325,000 through September 30, 2005.

"Our relationship with UtiliCorp, our largest shareholder, continues to be extremely strong," added Mr. Colson. "The conclusion of this management services agreement does not affect UtiliCorp's investment in Quanta or the existing strategic alliance agreement between Quanta and UtiliCorp. In fact, we believe this financial transaction delivers additional value to our shareholders."

Edited by Jerry R. Borland, P.E.
Managing Editor, EC Online
jborland@vertical.net