Quanta Services(US:PWR)2023-02-23 15:03Fleet and Employee Overview - As of December 31, 2022, the total fleet size was approximately 68,000 units, which includes owned and leased trucks and specialty construction equipment[47]. - The company had approximately 47,300 employees as of December 31, 2022, including 9,000 salaried and 38,300 hourly employees[56]. - Approximately 34% of employees were covered by collective bargaining agreements as of December 31, 2022, which require adherence to specified wages and workplace rules[56]. Revenue Patterns and Project Challenges - Seasonal revenue patterns indicate that the first quarter typically has the lowest revenues due to adverse weather conditions, while the third quarter usually sees the highest revenues[51]. - Regulatory challenges, including delays in permitting, have negatively impacted certain projects and customer spending, particularly in the renewable energy sector[54]. - The U.S. Department of Commerce's investigation into solar panel imports caused disruptions in the supply chain, impacting project timelines in the renewable energy market[54]. Safety and Labor Initiatives - The company has invested significantly in safety programs and training facilities, including the Quanta Advanced Training Center, to enhance employee safety and operational efficiency[58]. - The company is proactively addressing labor shortages by developing strategic relationships with universities and expanding training facilities[60]. Financial Overview - As of December 31, 2022, the company's fixed-rate debt was $2.57 billion, with a fair value of $2.00 billion for its senior notes[302]. - 69% of the company's debt portfolio incurred interest at a fixed rate, while 31% incurred interest at a variable rate[301]. - The weighted average interest rate on borrowings under the senior credit facility was 3.0%, and 4.5% for the commercial paper program[303]. - A 50 basis point change in interest rates would impact interest expense by approximately $5.8 million[303]. - The company recognized net foreign currency gains of $0.7 million and $5.1 million for the years ended December 31, 2022 and 2021, respectively[308]. - The company maintains a balanced position in foreign currencies to minimize exchange gains and losses[307]. Climate Change and Regulatory Impact - The company is exposed to climate-related risks that could impact operational results due to severe weather events and changing climate conditions[68]. - The transition to a reduced-carbon economy is expected to increase demand for renewable energy infrastructure services[71]. - The company has strategically focused on expanding natural gas utility services in response to climate change concerns[72]. - New regulations related to climate change could significantly increase operational costs, particularly regarding greenhouse gas emissions[73]. - The company believes that regulatory changes and new legislation, such as the IRA and IIJA, will support long-term demand for its services in the renewable energy sector[54].