Exhibit 99.2

		1360 Post Oak Blvd., Suite 2100 • Houston, TX 77056
		713-629-7600 • www.quantaservices.com
Quanta Services, Inc.
(NYSE: PWR)
People Need Power — The Power of One
Leading Provider of Specialty Contracting Services

Company Profile				May 2004

     Quanta Services, Inc. — Summary Financial Data

Company Profile				May 2004

This document is being published by Quanta Services in continuation of the Company’s goal to provide more disclosure and transparency to the investment community regarding Quanta’s operations, strategies, industry dynamics and conditions, etc. Quanta Services intends to take greater responsibility for and a proactive role in communicating with the investment community and in providing greater operating and financial transparency.

Executive Summary & Selected Highlights

Founded in August 1997, with its IPO in February 1998, Quanta Services is a leading national provider of specialty contracting solutions to the electric power, natural gas, telecom, broadband cable TV and other industries. Quanta was created to respond to the increasing need for the outsourcing of infrastructure services. That is, Quanta’s current and future customers are expecting — as they grow their businesses through mergers and increased outsourcing — specialty contractors to increase the scope of their service capabilities and geographic reach. Through its operating units located throughout the US, Quanta provides design, installation, repair, maintenance and emergency response services that enable its customers to reduce costs, increase operating efficiencies, improve network performance, and provide the best possible services to their customers.

The August 2003 power blackout, the largest in North America’s history, brought to the forefront what the power industry has known for years: the nation’s power grid is old, overloaded, and needs significant upgrading and maintenance to serve the country’s current and future power needs. Quanta estimates that it will cost between $100 billion and $200 billion to upgrade and maintain the country’s transmission and distribution (T&D) system adequately over the next ten to fifteen years. According to Platts, a leading energy news, research and consulting company, before the August 2003 blackout there were $27.5 billion worth of T&D projects to begin in 2004 and be completed by 2008. The discrepancy between the $27.5 billion earmarked before the blackout versus the $100 billion the Electric Power Research Industry estimates it would cost to fix the system illustrates the magnitude of the underinvestment by the electric utility industry in its T&D infrastructure over the years.

Quanta and the industries it serves have faced the most difficult operating conditions in thirty years due to challenging economic and capital markets conditions and the collapse of the telecom industry. Though the Company believes that normal operating conditions may not return for some time, Quanta’s utility customers have improved their balance sheets over the last 18 months and conditions in the telecom industry appear to have stabilized. As operating conditions return to normal and growth opportunities return, there are several major trends that could generate long-term organic revenue growth opportunities of approximately 15% annually:

Faced with extremely difficult operating conditions for the last three years, Quanta has focused on its operations and on maintaining a healthy financial position. As of March 31, 2004, Quanta had $195.7 million of cash on its balance sheet and $32.3 million in available borrowing capacity under its $185 million credit facility. For 1Q04, Quanta generated $34.7 million of cash provided by operating activities, which, less capital expenditures of $11.6 million yielded free cash flow of $23.1 million. In addition, to align its operations with the changing needs of its customers — who are themselves refocusing on their core operations — in 2003 Quanta reorganized its operations to focus on two primary client bases: Electric Power/Natural Gas and Telecom/Broadband Cable TV. Quanta believes it is well positioned, both financially and operationally, to operate in the current environment and to capitalize on future growth opportunities.

Company Profile				May 2004

Table of Contents

Company Profile				May 2004

Quanta Services Company Overview

Founded in August 1997, with its IPO in February 1998, Quanta Services is a leading national provider of specialty contracting solutions to the electric power, natural gas, telecom, broadband cable TV, and specialty services industries. Through its operating units located throughout the US, Quanta provides design, installation, repair, maintenance and emergency response services that enable Quanta’s customers to reduce costs, increase operating efficiencies, improve network performance, and provide the best possible service to their customers. The Company also provides a variety of ancillary services such as inside electrical wiring; intelligent traffic networks; cable and control systems for light rail lines, airports and highways; and specialty rock trenching, directional boring and road milling for industrial and commercial customers.

Quanta was created to respond to the increasing need for outsourced infrastructure services. That is, Quanta’s customers are expecting specialty contractors to increase the scope of their service capabilities and geographic reach as they grow their businesses through mergers and increased outsourcing. Such requirements are a tall order for the average private specialty contractor, so in February 1998, Quanta went public to obtain additional capital to pursue a strategy of “smart growth” consolidation coupled with organic growth, driven by the growth in infrastructure services outsourcing trends and increased customer demands.

After its IPO, Quanta selectively acquired approximately 85 specialty contractors over several years to increase the scope of its services, expand its geographic reach and diversity, and enhance its future growth opportunities. Though initially focused on the electric utility industry, Quanta expanded into the telecom and broadband cable TV infrastructure services industries as its core utility customers began expanding into those unregulated sectors and turned to Quanta to perform simultaneous electrical, telecom and broadband cable TV related projects.

With the challenges in the telecom and broadband cable TV sectors, Quanta’s utility customers largely have ceased pursuing telecom and broadband cable TV initiatives and have refocused on the electric and gas utility side of their businesses. To meet the ever changing needs of its core customers, Quanta has reorganized its operations to focus on two primary client bases: Electric Power/Natural Gas and Telecom/Broadband Cable TV.

Company Profile				May 2004

Major Market Trends & Outsourcing Thesis

New Awareness of Transmission and Distribution Network Upgrade Needs

Due to the number of people impacted by the catastrophic failure of the country’s power grid, the event has increased the nation’s awareness of what has been known in the power industry for many years: the nation’s electrical grid is old, overloaded, and needs significant maintenance and expansion to handle the country’s current and growing power needs. Despite previous power blackouts since the 1960s that left tens of millions of people in the dark, expansion and maintenance of the grid has fallen short. As the country’s population has grown and technology has become a larger part of everyday life, generating capacity has increased nearly eight fold over the past ten years² while demand for electricity has grown over 20%³. However, transmission capacity over the last ten years has fallen by approximately 16% and is expected to decline by approximately 7% from 2003 to 2008⁴.

So far, the August 2003 blackout caught the attention of the media, the general population, the politicians, and the electric utility industry, and discussions are ongoing to find solutions to remedy the problem. For example, the Electric Power Research Institute is beginning a public education campaign to raise some $100 billion from investors, governments and consumers to upgrade the nation’s power grid.

Company Profile				May 2004

Examples of Major Bulk Electric System Power Outages

Source: North American Electric Liability Counsel & US-Canada Power System Outage Task Force

Further, each year there are smaller power outages that occur throughout North America that do not get significant media attention, but are more frequent than one would expect. The dots in the chart below represent individual outages in North America between 1984 and 1997.

Company Profile				May 2004

Customers Focusing on Core Business; Value of End-to-End Solutions

All of the industries Quanta serves are facing very competitive environments. With challenging economic and capital market conditions over the last few years, many companies in the electric and gas utility, telecom, and broadband cable TV industries have refocused on core operations, operating efficiencies and prudent capital investment in their networks. The absolute dollar amount of network capital expenditures by Quanta’s customers has declined over the past few years. However, conditions generally have stabilized and Quanta’s customers will need to begin investing in the development and maintenance of their networks once again.

One way for Quanta’s customers to focus on core operations, operating efficiencies and prudent capital investment is to outsource non-revenue-generating functions, such as network infrastructure development and maintenance. Small owner-operated contractors are not as well positioned as Quanta to serve the broad range of needs that many utilities, telecom, and broadband cable TV companies request. Further, service providers are reducing the number of vendors they deal with to reduce paperwork, bidding and vendor management costs, and time. Increasingly, the industries Quanta serves are looking for companies like Quanta that are able to provide a wide array of network infrastructure services on a national basis — on time and on budget.

Increased Infrastructure Outsourcing

Challenging economic and capital market conditions, stiff competition amongst their peers, focus on efficiencies, and the need to enhance and maintain the lifeblood of their business — their networks — are causing companies in the electric and gas utility, telecom, and broadband cable TV industries to increase the amount of network infrastructure work they outsource to specialty contractors like Quanta Services.

Quanta estimates that annual infrastructure spending in the primary industries Quanta serves is approximately $30-$40 billion. Quanta further estimates that the electric power industry typically outsources approximately 30%-40% of its infrastructure work to specialty contractors, telecom typically outsources approximately 50%-60% of its infrastructure work, and broadband cable TV typically outsources approximately 70%-80% of its infrastructure work to specialty contractors. As economic, capital market, and operating conditions improve for Quanta’s customers and they return to more normalized levels of investment in their networks, Quanta’s annual addressable market opportunity and the amount of work that is outsourced should grow.

Company Profile				May 2004

In addition to service providers outsourcing elements of their network installation and maintenance activities, Quanta believes there is significant opportunity in its customers completely outsourcing the operation and maintenance of their network infrastructure (utilities, telecom and broadband cable TV companies alike). In fact, Quanta is the only specialty contractor to successfully develop and implement a complete infrastructure outsourcing program with an electric utility.

Puget Sound Energy was one of the first utilities to announce that it would progressively outsource 100% of its infrastructure operations and maintenance functions. Puget Sound considered twelve different companies for this vital task and chose Quanta for both electric and gas infrastructure outsourcing initiatives. Today, Quanta is managing all electric and gas construction for new residences and businesses in Puget Sound’s Washington service area, as well as managing all related inventory and materials. Productive work hours have increased by at least one hour per day, a 30% cost savings over historical numbers is projected, and service levels continue to improve. Puget Sound and Quanta forged new ground with this outsourcing model. As it has proven successful, more and more companies are seriously examining a complete outsourcing model.

Company Profile				May 2004

Massive Need for Transmission & Distribution Upgrades & Maintenance

The August 2003 power blackout, the largest in North America’s history, brought to the forefront what the power industry has known for years: the nation’s power grid is old, overloaded, and needs significant upgrades and maintenance to serve the country’s current and future power needs. With a now concerned public and 50 million angry northeastern constituents, politicians began taking the grid’s most spectacular failure seriously and have begun discussions toward clarifying the regulatory uncertainty so that electric utilities will have the economic incentive to and be able to attract capital investment for upgrading and maintaining the nation’s power grid.

The challenge the industry faces is not one of a shortage of electricity and generating capacity, but capacity strains and bottlenecks for transmitting and distributing the electricity to the end user. The map above depicts the nation’s major transmission lines and identifies key capacity constraints. As indicated, there are a troubling number of key transmission capacity constraints. While demand for electricity has grown over 20% over the past decade, transmission capacity has fallen by approximately 16% and is expected to decline further by approximately 7% from 2003 to 2008⁴.

Company Profile				May 2004

Following the August 2003 blackout, the power industry began a campaign to raise $100 billion from investors, governments, and consumers to upgrade the various power grids across the nation. Quanta estimates that it will cost between $100 billion and $200 billion to significantly upgrade and maintain the country’s transmission and distribution (T&D) system over the next ten to fifteen years. According to Platts, before the August 2003 blackout there was $27.5 billion worth of T&D projects to begin in 2004 and be completed by 2008. The discrepancy between the amount of earmarked projects before the blackout versus the $100 billion investment the power industry is now trying to attract illustrates the magnitude of the electric power industry’s underinvestment in its T&D infrastructure over the years.

Prior to the August 2003 blackout, R.J. Rudden Associates estimated that bringing spending in line with forecast demand would require a 25% annual increase in transmission spending and a 50% annual increase in distribution spending. *Note the tables below reflect Investor Owned Utilities only*

The majority of the nation’s T&D infrastructure was built shortly after World War II, is over 50 years old in many cases, and is beyond its useful life. The table below illustrates the number of poles installed annually by a particular electric power utility. While the identity of the specific utility will remain concealed, the chart illustrates an investment pattern that is typical for the average US electric utility. The vast majority of the grid system was installed from 1945 to the late 1970’s. With these assets already past or rapidly approaching the end of their useful life, as depicted in the chart below, there is significant demand for pole repair and replacement going forward based on past T&D investment.

Company Profile				May 2004

Electric utilities have underinvested in their T&D infrastructure for three primary reasons: (1) uncertainty regarding the final terms of the Federal Energy Regulatory Commission’s (FERC) standard market design proposal, (2) the inability to recover investment costs in T&D investment under state imposed rate freezes, and (3) balance sheet issues resulting from energy trading losses, telecom business investments, etc. Note that many of the state rate freezes began to expire in 2003 and pressure will mount on utilities to invest in their T&D infrastructure.

Company Profile				May 2004

Expanding and improving current T&D assets to meet current and future power demand is a daunting task. Further complicating the issue, the demand for electricity is expected to continue to grow at a healthy rate for the next few decades as (1) the country’s population expands and (2) we become increasingly dependent on technology, which requires power.

The map below illustrates the estimated demand for electricity by state in the US from 2003 to 2014. It is estimated that overall electricity demand in the US will grow in excess of 20% over this period. Areas such as California and the northeastern US are expected to have 40%-55% increases in electricity demand over the period; note both are areas that have had major blackouts and brownouts in the past few years.

The electric utility industry finds itself in the position of playing catch-up from underinvestment, needing to replace and repair a significant amount of its legacy distribution network, and properly plan for future electricity demand. While the August 2003 blackout has caught the attention of utilities and politicians, it is too early to determine if it will result in real efforts to fix the grid. To the extent that this wake up call is heeded, it may take twelve months or more before hurdles are crossed and serious T&D investment begins. However, as the largest specialty electrical infrastructure contractor in the country, Quanta is well positioned to meet the needs of its customers and to harvest the fruits of future increases in T&D network investment by the electric utility industry.

Company Profile				May 2004

Quanta Services Operations Overview

For the quarter ending March 31, 2004, revenues generated by customers in the electric power and natural gas industries accounted for approximately 62% of revenue, telecom for approximately 12%, broadband cable TV for approximately 5% and ancillary services for approximately 21%. For the year 2003, revenues generated by customers in the electric power and natural gas industries accounted for approximately 60% of revenue, telecom for approximately 15%, broadband cable TV for approximately 7%, and ancillary services for approximately 18%.

Quanta estimates that the combined historical average market opportunity for infrastructure spending is approximately $35 billion annually. Of that, Quanta estimates that the largest public and private specialty contractors serving these combined industries only account for 15% or less of the market. Quanta estimates that it commands the largest portion of this estimated 15% share, but that it is less than 5% of the total addressable market. The balance of the market is served by smaller, typically private companies. With its greater scope of services, greater financial and organizational resources, and superior work force, Quanta believes it has significant opportunities to increase its market share over time. Quanta estimates that approximately 30%-40% of electric and gas infrastructure work is typically outsourced, 50%-60% of telecom infrastructure work is outsourced, and 70%-80% of broadband cable TV infrastructure work is outsourced currently.

As the accompanying charts depict, the percentage of revenues Quanta derived from the telecom and broadband cable TV industries in 1Q04 declined versus the year 2001. This is primarily due to the historic collapse of the telecom market and challenging operating environment in the broadband cable TV market. As a result, nearly all of Quanta’s telecom and broadband cable TV customers have been experiencing operating and financial challenges for several years, and a number of Quanta’s telecom and broadband cable TV customers have filed for bankruptcy. As a result, capital expenditures and overall network investment by the telecom and broadband cable TV sectors have declined significantly versus levels in the late 1990s and early 2000, and also relative to normal historical levels.

Company Profile				May 2004

Quanta believes the historic downturn of the telecom industry has reached bottom and that the industry may be stabilizing. Further, there are several telecom initiatives currently in discussion and underway by several government organizations, wire line carriers and wireless carriers that could provide Quanta with pockets of opportunity for its telecom group in the future. However, Quanta currently does not believe these opportunities are indicative of an overall return to historical network investment levels by the telecom industry as a whole.

With the stabilization of several of Quanta’s markets, the Company has begun to see gross margins generally stabilize as well. While operating conditions are still abnormal and many challenges remain, Quanta is also beginning to see some opportunity for margins to improve slightly, but they are not expected to return to historical levels in the near term. To the extent that Quanta’s primary markets remain stable or begin to improve, margins could gradually continue to improve.

Quanta is unique from its competitors because it has always had a diversified network infrastructure service offering for its customers and a diversified customer base. Thus, Quanta is not overly reliant on a given industry or client for business. For 1Q04 Quanta’s largest customer accounted for 7% of revenues. For 1Q04 Quanta’s top ten and top twenty customers accounted for approximately 31% and 43% of revenues, respectively. This diverse customer base reduces Quanta’s reliance on any one customer in a given period and is one reason why the Company was able to remain financially healthy through the tumultuous telecom downturn over the past few years.

Company Profile				May 2004

It is important to understand that Quanta’s business is typically influenced by seasonal factors. These factors include influences due to weather, capital expenditure spending patterns, bidding seasons, and holidays. Typically, the first quarter of the year is the slowest for Quanta, since weather is typically cold, snowy, or wet, and the bidding season for projects to commence throughout the year is just beginning. The second quarter is typically better than the first, as some projects begin, but cold and wet weather can often impact second quarter productivity. The third quarter is typically the best of the year, as projects are in full swing and weather is typically accommodating to work on projects. The fourth quarter of the year is typically not as good as the third, but a bit better than the second. Projects begin to complete in the fourth quarter, things tend to slow due to the holiday season ramping up, and weather can sometimes impact work. However, the fourth quarter can remain robust if some of Quanta’s customers have not yet finished spending their budget, and they race to spend their remaining funds. The Company would note that it has not experienced these normal seasonal patterns for the last few years due to the meltdown in the telecom industry, slowing on the broadband cable TV side of the business, and starts and stops from the utility sector as they have dealt with challenging economic and capital market conditions.

Electric Utility Infrastructure Services

Quanta has the ability to handle any electrical infrastructure need for its customers. From project-based engineering and construction of a multi-state, several hundred mile, high voltage transmission line and substation system to complex underground distribution networks, Quanta can handle every size and scope of power project. In fact, there are more than 200,000 miles of overhead electrical lines and thousands of miles of underground electrical cable that have been built and/or are maintained by Quanta Services.

Some of Quanta’s power infrastructure services capabilities include:

Company Profile				May 2004

Energized Services

Barehand crews can safely handle and efficiently repair live lines up to 765kV. On one project, Quanta used barehand techniques to repair a nuclear plant’s 345kV substation switches in one day without shutting down the reactor. This saved the utility an estimated $10 million — the cost associated with shutting down the reactor, making repairs, returning it to operation and making spot market power purchases during the down time.

Coupling the LineMaster Robotic Arm technology with Quanta’s barehand and hotstick methods provides a complete energized solution that increases efficiency, reliability, levelization, and safety.

Company Profile				May 2004

Energized Services Case Study

The advent of a high-temperature conductor, or ACSS (aluminum conductor steel supported), meant that the ACSS could carry twice the load of the conductors KCP&L was using on the line, and that if the 345-kV line could be reconductored with the ACSS, KCP&L could use the existing H-frames supporting the line. If this were able to be done while the line remained energized, the line’s capacity problem would be solved and customers would not experience any service disruption.

Because of Quanta’s unmatched expertise in energized services, proprietary tools and work methods, KCP&L approached Quanta to work toward a rebuild solution on the 345-kV LaCygne-Stillwell Line. Quanta worked with KCP&L and developed a plan predicated on reconductoring the line while energized at 345-kV. At that time, Quanta had worked on many energized projects for KCP&L, but none of this magnitude.

To do the job, Quanta used the Equal Potential Stringing Method, which isolated the working area and the conductor being pulled, used proprietary processes, tools and equipment to solve complicated issues and completed the project — all while the line remained in service. The project ran smoothly and was completed a month ahead of schedule, a major accomplishment given the snow and mud experienced at the start of the project in February and spring rains and storms in May.

In summary, Quanta and KCP&L broke new ground with this project in solving transmission congestion problems and upgrading conductors in an energized state. The project was completed ahead of schedule in under five months and cost less than $8 million. Had the line been replaced using traditional installation methods, the project would have taken longer, required the line to be shut down for periods at a time, been significantly more costly, and been disruptive to customers.

Company Profile				May 2004

Natural Gas & Pipeline Services

Like the electric power industry, the continued growth of the natural gas industry is expected to generate significant activity, including the development of new pipelines and expansion or upgrades of current systems. Natural gas consumption in the US is expected to rise significantly over the next two decades. It is estimated that the US needs 263,000 miles of distribution pipelines and another 38,000 miles of large diameter transmission pipelines. With the implementation of new legislative mandates requiring more structured and regular maintenance and monitoring of systems, there has been a sharp increase in demand for gas and pipeline services.

Quanta is involved in the assessment, development, maintenance, and expansion of natural gas pipelines. Quanta delivers a comprehensive set of solutions for the natural gas and pipeline industries, including surveying, designing, installing, maintaining, and repairing and testing for all systems and methods of transmitting natural gas. This includes transmission and distribution pipelines, gathering systems, compressor stations, and meter stations.

Quanta also provides services for:

Telecom Network Services

Company Profile				May 2004

Broadband Cable TV Services

Quanta designs, installs, maintains and repairs entire residential and commercial broadband cable TV networks using both analog and digital technology. Quanta’s experience in the latest broadband, telephony, and data technologies, coupled with its inside and outside plant capabilities, enable Quanta to seamlessly handle all phases of a network’s lifespan — from design and installation to upgrade and maintenance projects. Likewise, Quanta’s ability to design and install all types of broadband cable industry systems — coaxial, fiber optic and hybrid systems — provides customers with a reliable resource for all potential needs. Quanta’s scope of services supports advanced technologies including frame relay, SONET, Dense Wave Division Multiplexing (DWDM), and MPEG. From DSL, ADSL and HDSL to video-on-demand, voice over IP or a full headend facility, Quanta can do it all.

Quanta’s broadband cable network services include:

Specialty Services

In addition to the comprehensive services previously described, Quanta provides a number of specialty services, many of which have applications and customers that span the electric and gas utility, telecom, and broadband cable TV industries. Quanta’s specialty services capabilities include:

Company Profile				May 2004

Understanding Margins

It is important to understand how various factors — some controllable, some not - - impact Quanta’s gross margins on a quarterly or annual basis.

Again, it is important to understand how various factors impact gross margin. Just because gross margin narrows in a quarter may not mean that Quanta is not managing its costs of services well.

Company Profile				May 2004

Quanta’s Growth Strategy — Steady Organic Growth Supplemented by Selected Acquisitions

As discussed, the past three years have been the most challenging and abnormal operating environment for Quanta and its peers in thirty years. No one could have predicted the severity and depth of the telecom industry’s collapse and challenging environment for cable TV, leading to the significant reduction in network development and maintenance investment. The electric power industry, to a lesser extent, was impacted as well.

Throughout this period, Quanta transitioned from a company focused on growth to a company focused on managing its business in a tumultuous environment. Quanta has been successful in reducing its cost structure, streamlining and focusing on operations, and improving its balance sheet. Though the operating environment has not returned to normal or demonstrated a return to a growth trend, Quanta has positioned the Company to operate successfully in the current environment and is well positioned to capitalize on growth opportunities as conditions improve.

In normal market conditions, Quanta enjoyed solid organic revenue growth in excess of 20%. Quanta believes that a sustainable long-term organic revenue growth rate for its business is approximately 10% to 15% in normal operating conditions. This growth will be driven by the need to invest in the expansion and maintenance of the nation’s power grid and continued development and maintenance of telecom and broadband cable TV networks as technology continues to develop new applications and services. It will also be driven by increased network infrastructure installation and maintenance outsourcing trends.

Since the founding of Quanta, the Company has augmented its organic growth with strategic acquisitions of top tier companies, enabling it to expand its service offering and geographic reach to better serve its customers. Quanta has not completed an acquisition since early 2002, but as business conditions return to normal, Quanta may elect to selectively and opportunistically pursue the acquisition of companies to continue to enhance its service offering and expand its geographic reach.

We would note that Quanta has not purchased start-up companies or turnarounds, instead focusing on companies with an average operating history of 20 to 30 years and with a record of operational excellence and profitability. Quanta has a disciplined acquisition approach that focuses on various financial, geographic, and management criteria including:

Company Profile				May 2004

Recent Financial Results & Commentary

As discussed earlier, the first quarter of a given year is typically the slowest and most unpredictable quarter of the year. Quanta’s 1Q04 was more difficult and unpredictable than normal due to project delays, inclement weather and a lack of high margin storm restoration work that typically helps Quanta offset adverse first quarter operating conditions. However, Quanta reported 1Q04 revenue of $355.0 million, which was solidly within its revenue guidance range of $340 million to $360 million and its backlog increased to $1,032 million as of the end of 1Q04 versus $1,008 million at the end of 2003.

1Q04 financial results included the following highlights:

SG&A expenses rose in 1Q04 to $43.4 million versus $39.0 million in 1Q03. The increase in SG&A expenses was due primarily to start-up expenses necessary for Quanta to establish its Quanta Government Solutions business, created to pursue the significant opportunities in the government project arena. To date in 2004, Quanta has made important investments in people, processes and systems for this initiative, which Quanta believes offers significant near- and long-term opportunities. Quanta’s strategic decision to pursue government contracts is long-term in nature and the Company does not intend to abandon this initiative once spending in its other core industry segments resume. Quanta believes no other company is as strongly positioned to leverage these opportunities as Quanta.

SG&A was also impacted by higher costs associated with systems and procedures formalization, implementation and testing to comply with certain provisions of Sarbanes-Oxley and higher non-cash compensation expenses related to amortization of its restricted stock awards as a result of its options exchange program initiated in 1Q03. Quanta believes SG&A expenses should decline over the balance of 2004 as costs associated with the development of Quanta Government Solutions and costs related to Sarbanes-Oxley decline.

Loss from operations in 1Q04 was $16.6 million versus 1Q03 loss from operations of $1.2 million. Quanta’s net loss attributable to common stock for 1Q04 was $11.7 million, or ($0.10) per share versus a net loss of $2.7 million, or ($0.03) per share in 1Q03.

Company Profile				May 2004

Cash flow from operations in 1Q04 was approximately $34.7 million. Cash flow from operations of $34.7 million less capital expenditures in the quarter of approximately $11.6 million generated free cash flow of approximately $23.1 million in 1Q04. For the year 2004, Quanta estimates it will generate approximately $100 million in free cash flow, inclusive of an estimated $30 million tax refund the Company anticipates receiving in the third or fourth quarter of 2004.

Quanta’s backlog at the end of 1Q04 was $1,032 million, up from backlog at the end of 2003 of $1,008 million and higher versus 1Q03 backlog of $980 million. For the quarter, Quanta’s largest customer accounted for 7% of revenues. Quanta’s top 10 customers for the quarter accounted for 31% of revenues and top 20 customers accounted for 43% of revenues. At the end of 1Q04, Quanta’s employee count was 10,605 versus 11,217 at the end of 2003.

Quanta’s days sales outstanding (DSOs), which includes current accounts receivable plus costs and estimated earnings in excess of billings on uncompleted contracts less billings in excess of costs and estimated earnings on uncompleted contracts, was 92 days at the end of 1Q04 versus 88 days at the end of 1Q03 and compared to 83 days at the end of 4Q03. Quanta’s 1Q04 DSO of 92 days increased from DSOs at the end of 2003 primarily due to the seasonal decline in revenues from $431 million in 4Q03 to $355 million in 1Q04. Quanta expects its DSOs to decline from 92 days at the end of 1Q04 towards historical levels through the course of the year.

In November 2003 Quanta announced that it was awarded a project with American Electric Power (AEP). Quanta continues to move forward on this project to meet AEP’s goals, budget and timeline. With 47 employees deployed, the project is in full swing with right of way acquisition, clearing, receiving materials, and the initial phase of construction in progress.

Quanta has seen its telecom (both wire line and wireless) and specialty business environments experience increased stability, as its customers’ capital spending levels appear to have stabilized, albeit at reduced levels. Most of Quanta’s telecom customers appear to be maintaining their current, though reduced levels of capital expenditures, but do not show indication of a significant upward trend in spending due to regulatory uncertainties.

Company Profile				May 2004

There are specific pockets of growth in the telecom sector that will ultimately benefit Quanta’s business in the long-term. The single largest opportunity for Quanta’s telecom operations is the potential move by telecom carriers to install fiber-to-the premise (FTTP) in a meaningful way. Recently, Verizon awarded a large FTTP project to one of Quanta’s competitors. However, there are additional opportunities for Quanta to pursue FTTP work with Verizon in markets such as Florida, Texas and California, as the most recent award is not believed to encompass the majority of Verizon’s total contemplated FTTP initial project. It is believed that the remainder of Verizon’s initial FTTP project will be awarded more on a market by market basis, and Quanta will compete for these projects in each market at its subsidiary level. This is a positive development for the industry as a whole as Verizon’s first-mover decision may spur other large telecom companies to expedite FTTP initiatives in their markets and/or encourage cable operators to continue to upgrade their networks to compete with FTTP networks and services. Further, the work should enable the industry as a whole to improve margins as new projects are put out for bid.

On the cable side, Quanta continued to perform cable work for Comcast and Adelphia, including maintenance, upgrades and new builds. Quanta believes Comcast’s spending levels will decline through the balance of the year as it completes its system upgrades. As a result of Comcast being expected to complete the majority of its system upgrades toward the middle of 2004, it is expected that overall cable network spending will decline in 2004 versus 2003.

Finally, Quanta recently announced that Kenneth W. Trawick was named president, Telecommunications and Cable Television Division. Prior to this appointment, Mr. Trawick served as president of Trawick Construction Company, a Quanta operating unit. Previously, he was vice president of Quanta with responsibility for nationwide business development, unit collaboration and asset utilization among Quanta’s telecommunications and cable operating units. Prior to becoming vice president of Quanta, he held various management positions at Trawick Construction including executive vice president and director.

Outlook

For 2Q04, Quanta expects revenues to range from $380 million to $410 million and diluted EPS to be between $0.02 and $0.05. Quanta expects operating margins for 2Q04 to be between 3% and 4%; average diluted shares outstanding for 2Q04 of approximately 115 million; and the Company estimates its effective tax rate for 2Q04 to be between 48% and 49%.

Due to recent spikes in aluminum, copper, steel, and other commodity prices, among other things, that could affect Quanta’s customer’s capital spending decisions in the short-term, Quanta will update full year guidance after the second quarter bidding season has been completed and visibility has improved.

Operating conditions remained challenging in 1Q04, but Quanta is optimistic about the future of its business and will maintain its focus on improving margins and strategically positioning the Company for immediate and future opportunities. While the August 2003 blackout magnifies the need for significant T&D investment, it is uncertain when, or if, the electric utility industry will significantly invest in the power grid in response to its failure. While uncertainties remain, Quanta believes that if capital spending by its customers remains stable, 2004 should present a better operating environment than 2003.

Company Profile				May 2004

Quanta Services, Inc.
Historical Financial and Operating Data
(In Thousands, Except Per Share Data)

Company Profile				May 2004

Peer Operation & Valuation Comparison

The specialty contracting industry is highly fragmented and very competitive. Quanta estimates that its annual addressable market is approximately $30 billion to $40 billion. Quanta believes that the top five specialty contractors (based on revenues) account for approximately 15% of this annual market opportunity. Quanta estimates that it commands the largest portion of this estimated 15% share, but that it is less than 5% of the total addressable market. The remaining 85% market share is held by smaller, private specialty contracting companies.

With its diversified service offering and customer base, and national presence, Quanta is unique. Below is a table of Quanta’s peer group indicating the various markets each specialty contractor serves. Also included is a peer valuation analysis of a broader peer group that includes several companies in the construction and engineering sector. While Quanta may not compete directly with some of these companies, they are included because they perform construction and engineering services and are often impacted by similar macro and/or other trends as Quanta. Of this peer group, Dycom Industries and MasTec are Quanta’s closest public peers, however, both focus more on the telecom and broadband cable TV industries.

Specialty Contracting Services Market

Peer Valuation Comparison
Specialty Contractors/Construction & Engineering

* EPS estimates from First Call using fiscal year end unless noted

Company Profile				May 2004

Executive Management Bios

John R. Colson has been a member of the Board of Directors since 1998 and has served as Chairman of the Board of Directors since 2002. Mr. Colson has served as Quanta’s Chief Executive Officer since December 1997. He joined PAR Electrical Contractors, Inc. (PAR), an electrical specialty contractor and now a subsidiary of Quanta, in 1971 and served as its President from 1991 to December 1997. He is currently a director of the Missouri Valley Chapter of the National Electrical Contractors Association (NECA), a regent of the Electrical Contracting Foundation, and, since May 1999, a director of U. S. Concrete, Inc.

James H. Haddox has served as Quanta’s Chief Financial Officer since November 1997, and served as Secretary from December 1997 until March 1999 and as Treasurer from December 1997 until September 1999.

John R. Wilson has been a member of the Board of Directors since 1998. He has served as Quanta’s President of the Electric Power and Gas Division since January 2003, and served as a Senior Vice President of Quanta from June 2001 until January 2003, as a Regional Vice President of Quanta from April 1999 until June 2001, and as President of PAR, an electrical specialty contractor and now a subsidiary of Quanta, from 1997 until January 2003. Mr. Wilson joined PAR in 1977 and served as an Executive Vice President from 1991 until 1997.

Kenneth W. Trawick has served as President, Telecommunications and Cable Television Division since May 2004 after serving as President of Trawick Construction Company, a Quanta operating unit. Previously, he was Vice President of Quanta with responsibility for nationwide business development, unit collaboration and asset utilization among Quanta’s telecommunications and cable operating units. Prior to becoming Vice President of Quanta, he held various management positions at Trawick Construction including Executive Vice President and Director.

James F. O’Neil III has served as Quanta’s Senior Vice President of Operations Integration and Audit since December 2002 and served as the Company’s Vice President of Operations Integration from August 1999 until December 2002. From 1980 until 1999, Mr. O’Neil held various positions with Halliburton Company, a provider of products and services to the petroleum and energy industries, most recently as Director, Global Deepwater Development.

Benadetto G. Bosco has served as Quanta’s Senior Vice President of Outsourcing since April 2003 and served as the Company’s Vice President of Outsourcing from July 2002 until April 2003. From 1997 until joining Quanta, he served as Vice President of Network/National Sales for Exelon Infrastructure Services, Inc., a provider of transmission and distribution infrastructure services to the electrical, gas, telecommunications and cable utilities. Mr. Bosco holds an M.B.A. degree.

Derrick A. Jensen has served as Quanta’s Vice President and Controller since December 1997 and as the Company’s Chief Accounting Officer since March 1999. Mr. Jensen is a Certified Public Accountant.

Dana A. Gordon has served as Quanta’s Vice President, General Counsel and Secretary since January 2001 and as the Company’s Chief Compliance Officer since August 2002, and served as Associate General Counsel from August 1999 until December 2000. From 1996 until joining Quanta, Ms. Gordon was an associate in the corporate department of the law firm of Weil, Gotshal & Manges LLP. Ms. Gordon holds a J.D. degree.