- Fourth Quarter Revenue Increased 51% CORAL GABLES, fla., March 2
/PRNewswire-FirstCall/ -- MasTec, Inc. (NYSE: MTZ) today announced
another record quarter and year for both revenue and net income.
Fourth quarter earnings per diluted share increased 136% on a 51%
increase in revenue compared with the prior year quarter and annual
earnings per diluted share increased sharply, on a 33% increase in
revenue over the prior year. Jose R. Mas, MasTec's President and
Chief Executive Officer, commented, "We had another terrific
quarter and delivered solid financial results for the year. I am
very proud of what our team has accomplished." Revenue for the
quarter ended December 31, 2008 was $414 million and net income was
$18.2 million, or $0.26 per diluted share compared with revenue of
$274 million and net income of $7.3 million, or $0.11 per diluted
share for the prior year quarter. The 2008 fourth quarter results
include a $2.5 million charge resulting from the final deferred
compensation payment to the Company's prior CEO. Prior to this
charge, pro forma net income per diluted share was $0.29 for the
quarter. Revenue for the year ended December 31, 2008 was $1.38
billion and net income was $65.8 million, or $0.96 per diluted
share compared with revenue of $1.04 billion and a net loss of $7.3
million or $0.11 loss per diluted share for the prior year. Income
from continuing operations for 2008 was $0.97 per diluted share.
After adding back the $2.5 million charge for the prior CEO's final
deferred compensation payment, pro forma income from continuing
operations for 2008 was $1.00 which compares to pro forma earnings
of $0.67 for 2007. The 2007 pro forma earnings reflect the add back
of $39.3 million in one-time charges for various legacy legal
cases, claims and other disputes. Therefore, the $0.67 pro forma
amount for 2007 is operationally comparable to the $1.00 pro forma
earnings for 2008. Mr. Mas continued, "In addition to achieving
strong financial results, in 2008 we repositioned MasTec to better
compete in more diverse markets offering greater growth
opportunities. More specifically, we increased our capabilities in
the electrical utility transmission sector, we became a significant
player in the wireless infrastructure market, and most importantly,
we became one of the leading alternative energy infrastructure
service providers in the country. The recent passage of the
economic stimulus package should have a significant positive impact
on the markets we serve. The Company's financial position remains
strong with cash, securities available for sale and availability
under the Company's credit facility of $150 million. With no
significant debt maturities until 2013, we have a solid balance
sheet and are well positioned to take advantage of these
opportunities." The Company is reaffirming its earlier guidance and
expects 2009 revenue of $1.95 billion to $2.0 billion. Net income
per diluted share in 2009 is expected to be between $1.05 and
$1.15. Earnings per diluted share are being negatively impacted by
large increases in the non-cash amortization expense for
acquisition-related intangible assets and by a large increase in
the mostly non-cash book tax rate. Revenue for the first quarter of
2009 is expected to be between $350 million and $360 million, with
net income per diluted share of $0.14 to $0.16, which compares to
$0.12 in 2008. The Company's guidance does not include the impact
of legacy litigation, or any mark-to-market valuation adjustments
on auction rate securities, either positive or negative. The
following tables set forth the financial results for the periods
ended December 31, 2008 and 2007: Condensed Consolidated Statements
of Operations (In thousands except per share amounts) Year Ended
Three Months Ended December 31, December 31, 2008 2007 2008 2007
Revenue $1,378,663 $1,037,779 $413,883 $273,635 Costs of revenue
1,180,310 891,606 358,337 236,391 Depreciation and amortization
28,465 18,088 9,020 5,375 General and administrative expenses
88,585 113,623 22,998 18,845 Interest expense, net of interest
income 14,758 9,236 4,644 2,100 Other (income) expense, net (927)
(3,516) 7 768 Income from continuing operations before income taxes
and minority interest 67,472 8,742 18,877 10,156 Provision for
Income taxes (870) - (328) - Minority interest - (2,459) - (210)
Income from continuing operations 66,602 6,283 18,549 9,946 Loss
from discontinued operations, net (814) (13,611) (392) (2,689) Net
Income (Loss) $65,788 $(7,328) $18,157 $7,257 Basic net (loss)
income per share: Continuing operations $0.98 $0.10 $0.27 $0.15
Discontinued operations (0.01) (0.21) (0.01) (0.04) Total basic net
income (loss) per share $0.97 $(0.11) $0.26 $0.11 Basic weighted
average common shares outstanding 67,983 66,147 69,154 66,912
Diluted net income (loss) per share: Continuing operations $0.97
$0.09 $0.27 $0.15 Discontinued operations (0.01) (0.20) (0.01)
(0.04) Total diluted net income (loss) per share $0.96 $(0.11)
$0.26 $0.11 Diluted weighted average common shares outstanding
68,916 67,626 70,517 68,122 Condensed Consolidated Balance Sheets
(In thousands) December 31 2008 2007 Assets Current assets $439,365
$367,407 Property and equipment, net 158,013 81,939 Goodwill and
other intangibles, net 420,604 202,829 Deferred taxes, net 25,165
30,386 Securities available for sale 20,580 - Other assets 27,170
28,188 Total assets $1,090,897 $710,749 Liabilities and
Shareholders' Equity Current liabilities $334,048 $203,595 Other
liabilities 26,305 32,310 Long-term debt 287,454 160,279
Shareholders' equity 443,090 314,565 Total liabilities and
shareholders' equity $1,090,897 $710,749 Condensed Consolidated
Statements of Cash Flows (In thousands) Years Ended December 31,
2008 2007 Net cash provided by operating activities $58,182 $68,698
Net cash used in investing activities (141,987) (62,457) Net cash
provided by financing activities 56,988 32,756 Net increase in cash
and cash equivalents (26,817) 38,997 Net effect of translation on
cash (208) 9 Cash and cash equivalents--beginning of period 74,288
35,282 Cash and cash equivalents--end of period $47,263 $74,288
Reconciliation of Non-GAAP Disclosures-Unaudited (In millions,
except for percentages and per share data) For the Year Ended
December 31, 2007 Earnings Income from Continuing Operations
Pre-tax per Reconciliation Total Operating EBITDA Diluted (in
millions) Margin Margin Share GAAP Income from continuing
operations $6.3 0.6% 3.2% $0.09 Charges for settlement of
litigation, claims and other disputes 39.3 3.8% 3.8% 0.58 Income
from continuing operations excluding charges for settlement of
litigation, claims and other disputes $45.6 4.4% 7.0% $0.67 For the
Year Ended December 31, 2008 Earnings Income from Continuing
Operations Pre-tax per Reconciliation Total Operating EBITDA
Diluted (in millions) Margin Margin Share GAAP Income from
continuing operations $66.6 4.9% 8.0% $0.97 Charge resulting from
the final deferred compensation payment to prior CEO 2.5 0.2% 0.2%
0.04 Income from continuing operations excluding the final deferred
compensation payment to prior CEO $69.1 5.1% 8.2% $1.00 Diluted Net
Income Per Share Reconciliation Three Months Ended December 31,
2008 Diluted net income per share $0.26 Charge resulting from the
final deferred compensation payment to prior CEO 0.04 Pro forma
diluted net income per share $0.29 Tables may contain differences
due to rounding. MasTec will hold a conference call to discuss
these results on March 3, 2009 at 9:00 a.m. Eastern time. The
call-in number for the conference call is (913) 312-1300 and the
replay number is (719) 457-0820, with a pass code of 2345074. The
replay will run for 30 days. Additionally, the call will be
broadcast live over the Internet and can be accessed and replayed
through the investor relations section of our website at
http://www.mastec.com/. MasTec has filed its Form 10-K annual
report with the Securities and Exchange Commission, which is
available, free of charge, through the investor relations page of
the Company's website, or by request through MasTec's investor
relations department. MasTec is a leading specialty contractor
operating mainly throughout the United States across a range of
industries. The Company's core activities are the building,
installation, maintenance and upgrade of communication and utility
infrastructure systems. The Company's corporate website is located
at http://www.mastec.com/. This press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act. These statements are based on
management's current expectations and are subject to a number of
risks, uncertainties, and assumptions, including further economic
downturns, reduced capital expenditures, reduced financing
availability, customer consolidation and technological and
regulatory changes in the industries we serve; market conditions,
technical and regulatory changes that affect us or our customers'
industries; our ability to retain qualified personnel and key
management from acquired businesses and integrate acquisitions with
MasTec within the expected timeframes and achieve the revenue, cost
savings and earnings levels from the acquisition at or above the
levels projected; the impact of the American Recovery and
Reinvestment Act of 2009 and any similar local or state regulations
affecting renewable energy, electrical transmission, broadband
expansion and related projects and expenditures; our ability to
attract and retain qualified managers and skilled employees;
increases in fuel, maintenance, materials, labor and other costs;
any liquidity issues related to our securities held for sale;
material changes in estimates for legal costs or case settlements;
adverse determinations on any claim, lawsuit or proceeding; the
highly competitive nature of our industry; our dependence on a
limited number of customers; the ability of our customers to
terminate or reduce the amount of work, or in some cases prices
paid for services under many of our contracts; the adequacy of our
insurance, legal and other reserves and allowances for doubtful
accounts; any exposure related to our divested state Department of
Transportation projects and assets; restrictions imposed by our
credit facility, senior notes and any future loans or securities;
any dilution or stock price volatility which shareholders may
experience in connection with shares we may issue as consideration
for earn-out obligations entered into, or as a result of
conversions of convertible stock issued, in connection with past or
future acquisitions; as well as other risks detailed in our filings
with the Securities and Exchange Commission. Actual results may
differ significantly from results expressed or implied in these
statements. We do not undertake any obligation to update
forward-looking statements. DATASOURCE: MasTec, Inc. CONTACT: J.
Marc Lewis, Vice President-Investor Relations, +1-305-406-1815,
+1-305-406-1886 fax, Web Site: http://www.mastec.com/
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