Quanta Services, Inc.

Good day, ladies and gentlemen, and welcome to the Qantas Services first quarter 2022 earnings conference call. All lines have been placed on a listen-only mode, and the floor will be open for questions and comments following the presentation. If you should require assistance throughout the conference, please press star zero on your telephone keypad to reach a live operator. At this time, it is my pleasure to turn the floor over to your host, Kip Rupp, President, Investor Relations. Thank you. One moment.

Thank you, and welcome, everyone, to the Qantas Services first quarter 2022 earnings conference call. This morning, we issued a press release announcing our first quarter 2022 results, which can be found in the investor relations section of our website at QantasServices.com, along with a summary of our 2022 outlook and commentary we'll be discussing this morning. Additionally, we will use a slide presentation to accompany our prepared remarks, which is viewable through the call's webcast and is also available on the Investor Relations section of the Quantum Services website. Please remember that information reported on this call speaks only as of today, May 5th, 2022, and therefore you are advised that any time-sensitive information may no longer be accurate as of any replay of this call. This call will include forward-looking statements intended to qualify under the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These include all statements reflecting QANU's expectations, intentions, assumptions, or beliefs about future events or performance that do not solely relate to historical or current facts. Forward-looking statements involve certain risks, uncertainties, and assumptions that are difficult to predict or beyond QANU's control, and actual results may differ materially from those expressed or implied. For additional information concerning some of these risks, uncertainties, and assumptions, please refer to the cautionary language included in today's press release, along with the company's periodic reports and other documents filed with the Securities and Exchange Commission, which are available on QANTA's or the SEC's website. You should not place undue reliance on forward-looking statements, and QANTA does not undertake any obligation to update such statements and disclaims any written or oral statements made by any third party regarding the subject matter of this call. Please also note that we will present certain historical or forecasted non-GAAP financial measures in today's call, including adjusted diluted EPS, backlog EBITDA, and free cash flow. Reconciliations of these measures to their most directly comparable GAAP financial measures are included in our earnings release. Lastly, if you would like to be notified when Quanta publishes news releases and other information, please sign up for email alerts through the investor relations section of quantaservices.com. We also encourage investors and others interested in our company to follow Quanta IR and Quanta Services on the social media channels listed on our website. With that, I would now like to turn a call over to Mr. Duke Austin, Quanta's president and CEO. Duke?

Thanks, Skip. Good morning, everyone, and welcome to Quanta Services' first quarter 2022 earnings conference call. On the call today, I will provide operational and strategic commentary and will then turn it over to Derek Jensen, Kiwana's Chief Financial Officer, who will provide a review of our first quarter results and full year 2022 financial expectations. Following Derek's comments, we welcome your questions. Our first quarter results show that Kiwana is off to a great start this year. With quarterly revenues of $4 billion, each segment generated strong revenue growth during the quarter, despite the impact of normal seasonality. with gap and adjusted diluted VPS of 57 cents and a record $1.37, respectfully. Additionally, total backlog at the quarter end exceeded $20 billion for the first time, which continues to support our 2022 financial expectations. We continue to see opportunities across our service lines driven by our collaborative solution-based approach. the growth of programmatic spending with existing and new customers, and the favorable megatrends we discussed at our recent investor day, which provides strong visibility into near and long-term growth. Our electric power infrastructure solutions operations continue to perform well during the quarter, driven by broad-based business strength from ongoing utility grid modernization and system hardening initiatives and solid and safe executions. Additionally, our communications operations are moving in the right direction and perform well during the quarter. Our electric power outlook remains strong, driven primarily by increasing service line opportunities and market share gains on our base business. Further, we continue to actively pursue large new master service agreements, or MSAs, that are designed to modernize the grid and to support growing electric vehicle penetration and other new technology adoption, and to harden the system to be more resilient to wildfire and severe weather events. We believe these trends provide opportunity for materially greater backlog levels this year. Our conversations about Quanto's EV charging program management solutions continues to advance with companies throughout the electric vehicle ecosystem. Our revenues from EV charging infrastructure work are relatively small. but are expected to increase significantly this year and beyond. We believe EV charging infrastructure opportunities are on the cusp of accelerating and are only just beginning. Additionally, we believe the need to modernize and enhance the power grid to enable higher levels of load growth and continuous power demand caused by growing EV penetration could create significant opportunities for Qantas. Our renewable energy infrastructure solutions segment performed well during the quarter. Many of the macroeconomic uncertainties we are managing through today were known unknowns when we announced our intention to acquire Blattner in September of 2021. And we have prudently taken these risks into consideration for our full year 2022 guidance. We also believe Kiwanis and Blattner's market leading position scope and scale, and technology and geographic diversity, positions the company to manage through times of uncertainty. That said, we reiterate that we did not acquire Blattner for 2022. The addition of Blattner's utility-scale renewable generation solutions to Quanta's existing holistic grid solutions transforms our ability to collaborate early with our customers on their energy transition strategies over the coming decades, which we believe creates a value proposition unique to the industry. We are increasingly confident in our strategy to position Quanta as the infrastructure solutions leader in the energy transition. We are pleased with the performance of our underground utility and infrastructure solutions segment, which delivers strong revenue growth and profitability in the quarter. In particular, our industrial services operations executed well and are experiencing strong demands as the global economy continues to recover and two years of pent-up demand from deferred maintenance and capital spending resumes. We also continue to experience solid demand for our gas utility and pipeline integrity services, which are driven by regulated spend to modernize systems, reduce methane emissions, ensure environmental compliance, and improve safety and reliability. Looking to the coming years, we continue to see emerging opportunities for QANU's underground utility and infrastructure solution operations to play an evolving and increasing role with customers as they increasingly pursue strategies to reduce their carbon footprint and diversify their operations and assets towards greener business opportunities. As we discussed in detail a month ago during our 2022 Investor Day in New York City, Quanta is successfully executing on strategic initiatives to drive operational excellence, total cost solutions for our clients, profitable growth, and value for our stakeholders. Our strategic initiatives uniquely positioned us to not only capitalize on the megatrends, but also enhance our customer relationships and market positioning. As a result, We are able to collaborate with our clients to execute their capital deployment plans even during challenging conditions like the ones we face today, including supply chain, inflation, COVID-19, and regulatory uncertainties. These dynamics are not easy to navigate, but we expect to continue to successfully manage through them. It is during these times that Kiwana demonstrates its resilience, which we believe shows the strength of our operations portfolio strategic initiatives, and platform of solutions. Furthermore, we are developing new solutions throughout the supply chain, which we believe will be a differentiator and will expand our customer base. We believe the glass is half full and see these challenges as opportunities for us to take strategic actions to further differentiate our solutions and mitigate risk for our company and our customers. WANA is a portfolio of exceptional companies with geographic and service line diversity. We are anchored by our commitment to craft skill labor and our self-reformed capabilities and remain dedicated to growing and enhancing our portfolio of services, which strengthens our ability to capture more of a customer's large programmatic spending programs and to operate in a responsible and sustainable way while maintaining a strong financial profile. Looking to the medium and long term, as energy transition and carbon reduction initiatives accelerate, we believe the infrastructure investment and renewable generation necessary to support these initiatives are still in early stages of deployment and that this is arguably the most exciting time in Qantas history. We have profitably grown the company and executed well and expect to continue to do so. Demand for our services is robust across our portfolio and driven by long-term visible and resilient energy transition and technology enablement megatrends. We are confident in the strategic initiatives we are executing on, the competitive position we have in the marketplace, and our positive multiyear outlook. As a result, We believe Quanta has built a platform with the opportunity to deliver a 10% organic adjusted earnings per share CAGR and a strategy with the opportunity to deliver a 15% or better adjusted EPS CAGR through 2026. We are focused on operating the business for the long term and expect to continue to distinguish ourselves through safe execution and best-in-class field leadership. We will pursue opportunities to enhance quantum space business and leadership position in the industry and provide innovative solutions to our customers. We believe quantum diversity, unique operating model, and entrepreneurial mindset form the foundation that will allow us to continue to generate long-term value for our stakeholders. I will now turn the call over to Derek Jensen, our CFO, for his review of our first quarter results and 2022 expectations. Derek.