1050915--3/1/2010--QUANTA_SERVICES

related topics

{cost, contract, operation}

{acquisition, growth, future}

{loss, insurance, financial}

{condition, economic, financial}

{cost, operation, labor}

{cost, regulation, environmental}

{tax, income, asset}

{personnel, key, retain}

{regulation, change, law}

{financial, litigation, operation}

{customer, product, revenue}

{capital, credit, financial}

{system, service, information}

{gas, price, oil}

{regulation, government, change}

{product, market, service}

{investment, property, distribution}

{property, intellectual, protect}

{stock, price, share}

{competitive, industry, competition}

{control, financial, internal}

The ongoing economic downturn and instability in the financial markets may adversely impact our customers future spending as well as payment for our services and, as a result, our operations and growth. An economic downturn in any of the industries we serve may lead to less demand for our services. Project performance issues, including those caused by third parties, or certain contractual obligations may result in additional costs to us, reductions in revenues or the payment of liquidated damages. Our use of fixed price contracts could adversely affect our business and results of operations. Our operating results can be negatively affected by weather conditions. 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. As a result of the acquisition of Price Gregory, our profitability and financial condition may be adversely affected by risks associated with the natural gas and oil industry, such as price fluctuations and supply and demand for natural gas. We may not realize all of the anticipated benefits from acquiring Price Gregory. Our business is highly competitive. Legislative actions and initiatives relating to electric power, renewable energy and telecommunications may fail to result in increased demand for our services. 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. Our business is labor intensive, and we may be unable to attract and retain qualified employees. Backlog may not be realized or may not result in profits. Our financial results are based upon estimates and assumptions that may differ from actual results. 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 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 Fiber Optic Licensing segment. The business of our Fiber Optic Licensing segment is capital intensive and requires substantial investments, and returns on investments may be less than expected for various reasons. We extend credit to customers for purchases of our services and may enter into longer-term deferred payment arrangements or provide other financing or investment arrangements with certain of our customers, which subjects us to potential credit or investment risk that could, if realized, adversely affect our results of operations or financial condition. We are self-insured against potential liabilities. 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. Unavailability or cancellation of third party insurance coverage would increase our overall risk exposure as well as disrupt our operations. The departure of key personnel could disrupt our business. Our unionized workforce and related obligations could adversely affect our operations. We may incur liabilities or suffer negative financial or reputational impacts relating to occupational health and safety matters. Risks associated with operating in international markets could restrict our ability to expand globally and harm our business and prospects, and we could be adversely affected by our failure to comply with the laws applicable to our foreign activities, including the U.S. Foreign Corrupt Practices Act and other similar worldwide anti-bribery laws. Our participation in joint ventures exposes us to liability and/or harm to our reputation for failures of our partners. We are in the process of implementing an information technology ( IT ) solution, which could temporarily disrupt day-to-day operations at certain operating units. Our dependence on suppliers, subcontractors and equipment manufacturers could expose us to the risk of loss in our operations. Our business growth could outpace the capability of our corporate management infrastructure. Opportunities within the government arena could subject us to increased governmental regulation and costs. 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. Our failure to comply with environmental laws could result in significant liabilities. We may not be successful in continuing to meet the requirements of the Sarbanes-Oxley Act of 2002. If we are unable to enforce our intellectual property rights or if our intellectual property rights become obsolete, our competitive position could be adversely impacted. We may not have access in the future to sufficient funding to finance desired growth and operations. The industries we serve are subject to rapid technological and structural changes that could reduce the demand for the services we provide. Our convertible subordinated notes may be convertible in the future, which, if converted, may result in dilution to existing stockholders, lower prevailing market prices for our common stock or cause a significant cash outlay.

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1050915--3/1/2010--QUANTA_SERVICES_INC