(RTTNews) - Energy infrastructure solutions provider Quanta Services, Inc. (PWR: News ) Wednesday reported an increase in profit for the third quarter, benefiting from income tax related gains. On an adjusted basis, earnings declined from a year ago on lower revenues, as the sluggish economy continues to negatively impact industries the company serves.

Net income attributable to common stock for the quarter increased to $63.44 million or $0.32 per share from $51.94 million or $0.28 per share in the prior-year quarter.

Third quarter results included a $22.4 million gain, or a benefit of $0.11 per share, from the release of income tax contingencies due to the expiration of various statutes of limitations related to federal and state tax returns.

Excluding items, net income was $50.32 million or $0.25 per share, lower than $66.07 million or $0.32 per share in the previous year.

On an average, 16 analysts polled by Thomson Reuters expected the company to earn $0.21 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly revenues plunged to $780.79 million from $1.05 billion last year. Analysts expected the company to report revenues of $857.82 million for the quarter.

John Colson, the chairman and chief executive of Quanta, said, "However, our gross margins improved 130 basis points over the third quarter of 2008, a quarter during which we achieved $110 million more in higher margin emergency restoration service revenues. This gross margin improvement reflects our successful strategy of not pursuing lower margin work for the sake of revenues."
Provision for income taxes for the quarter was $5.32 million, much lower than $36.61 million in the comparable period. Interest expenses declined to $2.82 million from $9.84 million a year ago.

In the preceding second quarter, Quanta has reported lower profit and revenues. Net income attributable to common stock was $33.43 million or $0.17 per share, compared to $37.67 million or $0.21 per share in the year earlier period, on revenues of $813.38 million, lower than $960.88 million.

For the first nine-months, Quanta reported net income attributable to common stock of $118.2 million or $0.59 per share, higher than $111.1 million or $0.63 per share in the same period last year. On an adjusted basis, earnings declined to $120.26 million or $0.59 per share from $154.97 million or $0.76 per share in the prior year. Year-to-date, revenues declined to $2.33 billion from $2.86 billion a year ago.

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