1050915--2/29/2008--QUANTA_SERVICES

related topics

{acquisition, growth, future}

{cost, contract, operation}

{cost, operation, labor}

{cost, regulation, environmental}

{financial, litigation, operation}

{tax, income, asset}

{personnel, key, retain}

{customer, product, revenue}

{capital, credit, financial}

{loss, insurance, financial}

{regulation, government, change}

{product, market, service}

{condition, economic, financial}

{operation, international, foreign}

{stock, price, share}

{provision, law, control}

{competitive, industry, competition}

{operation, natural, condition}

{control, financial, internal}

We incurred substantial transaction and Merger-related costs in connection with the Merger and we may not realize all of the anticipated synergies and other benefits from acquiring InfraSource. As a result of the Merger with InfraSource, we are subject to additional risks. An economic downturn may lead to less demand for our services. Project delays or cancellations may result in additional costs to us, reductions in revenues or the payment of liquidated damages. Our dependence upon fixed price contracts could adversely affect our business. Our use of percentage-of-completion accounting could result in a reduction or elimination of previously reported profits. We may be unsuccessful at generating internal growth. Our industry is highly competitive. The Energy Policy Act of 2005 may fail to result in increased spending on the electric power transmission infrastructure. Our business is labor intensive, and we may be unable to attract and retain qualified employees. Our business growth could outpace the capability of our corporate management infrastructure. Factors beyond our control may affect our ability to successfully execute our acquisition strategy, which may have an adverse impact on our growth strategy. We may be unsuccessful at integrating companies that either we have acquired or that we may acquire in the future. Our results of operations could be adversely affected as a result of goodwill impairments. Our financial results are based upon estimates and assumptions that may differ from actual results. During the ordinary course of our business, we may become subject to lawsuits or indemnity claims, which could materially and adversely affect our business and results of operations. We are self-insured against potential liabilities. Our casualty insurance carrier for prior periods is experiencing financial distress, which may require us to make payments for losses that otherwise would be insured. We may incur liabilities or suffer negative financial impact relating to occupational health and safety matters. Our profitability and financial operations may be negatively affected by changes in, or interpretations of, existing state or federal telecommunications regulations or new regulations that could adversely affect our dark fiber leasing business. Our dark fiber leasing business is capital intensive and requires a substantial investment before returns can be realized. Many of our contracts may be canceled on short notice or may not be renewed upon completion or expiration, and we may be unsuccessful in replacing our contracts in such events. Backlog may not be realized or may not result in profits. We extend credit to customers for purchases of our services, and in the past we have had, and in the future we may have, difficulty collecting receivables from major customers that have filed bankruptcy or are otherwise experiencing financial difficulties. A portion of our business depends on our ability to provide surety bonds. We may be unable to compete for or work on certain projects if we are not able to obtain the necessary surety bonds. The departure of key personnel could disrupt our business. Our unionized workforce could adversely affect our operations and our ability to complete future acquisitions. We may not be successful in continuing to meet the requirements of the Sarbanes-Oxley Act of 2002. Our failure to comply with environmental laws could result in significant liabilities. Risks associated with operating in international markets could restrict our ability to expand globally and harm our business and prospects. Opportunities within the government arena could lead to increased governmental regulation applicable to us and unrecoverable start-up costs. The industries we serve are subject to rapid technological and structural changes that could reduce the demand for the services we provide. We may not have access in the future to sufficient funding to finance desired growth and operations. Our convertible subordinated notes are presently convertible or may be convertible in the future, which, if converted, may result in substantial dilution to existing stockholders, lower prevailing market prices for our common stock or cause a significant cash outlay. Certain provisions of our corporate governing documents could make an acquisition of our company more difficult.

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1050915--2/29/2008--QUANTA_SERVICES_INC