-Revenue Increased 27% to $388 Million -Net Income Increased 21% to
$19 Million -EBITDA Increased 36% over Prior Year -Year to Date
Cash Provided by Operating Activities Increased 277% to $52 Million
CORAL GABLES, Fla., July 29 /PRNewswire-FirstCall/ -- MasTec, Inc.
(NYSE: MTZ) today announced that revenue for the quarter ended June
30, 2009 increased 27% to $388 million and net income increased 21%
to $19.0 million or $0.25 per diluted share compared with revenue
of $305 million and net income of $15.7 million, or $0.23 per
diluted share for the prior year quarter. The Company continued to
focus on margin improvement and cost containment. Second quarter
gross margin improved again, up 50 basis points to 15.4% from 14.9%
from the previous year's quarter. The margin for earnings before
interest, taxes, depreciation and amortization, or EBITDA,
increased to 9.3% for the quarter just ended, up from 8.7% in the
second quarter of 2008. As a result of the improved financial
performance and the recently completed convertible note issue,
MasTec's balance sheet and cash flow from operations remained
strong. At the end of the second quarter, the Company had $198
million in cash, cash equivalents, securities available for sale
and availability on our bank line of credit, up from $131 million
in the first quarter. Net debt, total debt less cash and cash
equivalents, at the end of the quarter was $235 million, compared
with $257 million at the end of 2008. Jose R. Mas, MasTec's
President and Chief Executive Officer, commented, "We had an
excellent second quarter, in spite of a difficult economic
environment. While we are extremely well positioned for what we
believe will be significant opportunities, 2009 will be more
challenging than we initially projected. While we expect the
activity to increase in the second half of the year, we have
tempered our expectations. Continued tight credit markets and
delays in the Federal government finalization of stimulus plan
regulations, coupled with delays in application procedures for
stimulus related grants, tax credits and loan guarantees have
delayed projects and caused many of our customers to defer capital
expenditures." Mr. Mas continued, "We have bid on a tremendous
amount of wind and other projects in recent weeks. We have been
pleased with our win rate, but have been disappointed by the large
number of recent project deferrals into 2010, which have obviously
had an impact on our expectations for the balance of 2009. However,
these deferrals are setting up 2010 for what could be an
unprecedented year of opportunity for MasTec. In combination with
expected growth in transmission line, wireless and broadband
projects next year, we believe that we will soon enter a period of
significant multi-year revenue and margin strength." Primarily
because of the wind project delays, MasTec's 2009 guidance is being
revised for the remainder of the year, with revenue of
approximately $1.6 billion for the year and earnings of $0.85 per
share. Earnings per diluted share for the year is 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 third quarter
of 2009 is expected to be approximately $425 million, with earnings
per diluted share of $0.25. Our guidance assumes a continued
difficult economy and does not include any additional impact of our
legacy litigation or any mark-to-market valuation adjustments on
auction rate securities, either positive or negative. Management
will hold a conference call to discuss results of operations for
the quarter ended June 30, 2009 on Thursday, July 30, 2009 at 9:00
a.m. Eastern time. The call-in number for the conference call is
(913) 312-1412 and the replay number is (719) 457-0820, with a pass
code of 3340079. 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 the
Company's website at http://www.mastec.com/. Summary financials for
the quarters are as follows: Condensed Unaudited Consolidated
Statement of Operations (In thousands, except per share amounts)
For the Three Months Ended June 30, -------- 2009 2008 ---- ----
Revenue $387,854 $305,034 Costs of revenue, excluding depreciation
and amortization 328,047 259,561 Depreciation and amortization
10,744 6,579 General and administrative expenses, including
non-cash stock compensation expense of $1,068 in 2009 and $1,105 in
2008 24,654 19,404 Interest expense, net of interest income 5,780
3,656 Other income, net (745) (394) ---- ---- Income from
continuing operations before income taxes 19,374 16,228 Income
taxes 383 407 --- --- Income from continuing operations 18,991
15,821 Loss from discontinued operations, net of tax - (85) --- ---
Net income $18,991 $15,736 ======= ======= Basic net income per
share: Continuing operations $0.25 $0.23 Discontinued operations -
- --- --- Total basic net income per share $0.25 $0.23 ===== =====
Basic weighted average common shares outstanding 75,662 67,207
====== ====== Diluted net income per share: Continuing operations
$0.25 $0.23 Discontinued operations - - --- --- Total diluted net
income per share $0.25 $0.23 ----- ----- Diluted weighted average
common shares outstanding 81,963 68,182 ====== ====== Condensed
Unaudited Consolidated Balance Sheets (In thousands) June 30,
December 31, 2009 2008 ---- ---- Assets Total current assets
$430,168 $439,365 Property and equipment, net 150,308 158,013
Goodwill and other intangibles, net 420,311 420,604 Deferred taxes,
net 12,252 25,165 Securities available for sale 22,805 20,580 Other
assets 28,811 27,170 ------ ------ Total assets $1,064,655
$1,090,897 ========== ========== Liabilities and Shareholders'
Equity Current liabilities $262,093 $334,048 Other liabilities
25,220 26,305 Long-term debt 297,456 287,454 Total shareholders'
equity 479,886 443,090 ------- ------- Total liabilities and
shareholders' equity $1,064,655 $1,090,897 ========== ==========
Condensed Unaudited Consolidated Statements of Cash Flows (In
thousands) For the Six Months Ended June 30, -------------- 2009
2008 ---- ---- Cash flows from operating activities: Net cash
provided by operating activities $52,409 $13,896 Net cash used in
investing activities (26,496) (60,753) Net cash provided by
financing activities 5,164 19,531 ----- ------ Net increase
(decrease) in cash and cash equivalents 31,077 (27,326) Net effect
of currency translation on cash 57 (7) Cash and cash equivalents -
beginning of period 47,263 74,288 ------ ------ Cash and cash
equivalents - end of period $78,397 $46,955 ======= =======
Reconciliation of Non-GAAP Disclosures-Unaudited (In millions,
except for percentages and per share data) Three Months Ended Three
Months Ended June 30, 2009 June 30, 2008 ------------------
------------------ Total EBITDA Total EBITDA EBITDA Margin Margin
Reconciliation GAAP Net income $19.0 4.9% $15.7 5.2% Loss from
discontinued operations - 0.0% 0.1 0.0% Interest, net 5.8 1.5% 3.6
1.2% Taxes 0.4 0.1% 0.4 0.1% Depreciation and amortization 10.7
2.8% 6.6 2.2% ---- --- --- --- Earnings before interest, taxes,
depreciation and amortization (EBITDA) $35.9 9.3% $26.4 8.7% =====
=== ===== === Years Ended ----------- EBITDA Reconciliation 2009E
2008 ----- ---- GAAP Net Income $66 $66 Loss from discontinued
operations, net of taxes - 1 Interest, net 22-24 14 Income tax
provision 12-14 1 Amortization 8-10 4 Depreciation 32-36 24 -----
-- Earnings from continuing operations before interest, taxes,
amortization and depreciation (EBITDA) $140-150 $110 ======== ====
Tables may contain slight summation differences due to rounding
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 utility and communication 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, which may, among other things, cause our revenues,
margins and earnings per share to differ from that projected. Such
risks, uncertainties and assumptions may include further or
continued 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 in connection with
past or future acquisitions or conversions of our convertible notes
or other stock issuances, the outcome of our plans for future
operations, growth, and services, including backlog and
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,
Fax: +1-305-406-1886, Web Site: http://www.mastec.com/
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