- Record Second Quarter 2023 Revenue Increased 25% Over
Same Quarter Last Year to $2.9
Billion
- Second Quarter 2023 Results Include GAAP Net Income of
$16.8 Million with Adjusted Net
Income of $70.7 Million
- Adjusted EBITDA Increased 43% to $255.4 Million, Diluted Earnings Per Share of
$0.20 and Adjusted Diluted Earnings
Per Share of $0.89, with Adjusted
Diluted Earnings Per Share Exceeding Guidance Expectations by
$0.03.
- Annual 2023 Guidance Range Updated to Revenue of
$12.7 Billion to $13.0 Billion, GAAP Net Income of $111 Million to $141
Million, Adjusted EBITDA of $1.05
Billion to $1.10 Billion,
Diluted Earnings Per Share of $1.38
to $1.77 and Adjusted Diluted
Earnings Per Share of $3.75 to
$4.19
CORAL
GABLES, Fla., Aug. 3, 2023
/PRNewswire/ -- MasTec, Inc. (NYSE: MTZ) today announced 2023
second quarter financial results and updated its full year 2023
guidance range expectation.
Second quarter 2023 revenue was up 25% to $2.87 billion, compared to $2.30 billion for the second quarter of 2022.
GAAP net income was $16.8 million, or
$0.20 per diluted share, compared to
net income of $16.3 million, or
$0.20 per diluted share, in the
second quarter of 2022. Second quarter results include acquisition
and integration costs of $22.7
million related primarily to 2022 acquisition activity.
Second quarter 2023 adjusted net income and adjusted diluted
earnings per share, both non-GAAP measures, were $70.7 million and $0.89, respectively, as compared to adjusted net
income and adjusted diluted earnings per share of $56.0 million and $0.73, respectively, in the second quarter of
2022. Second quarter 2023 adjusted EBITDA, also a non-GAAP measure,
increased 43% to $255.4 million,
compared to $178.5 million in the
second quarter of 2022. Second quarter 2023 results reflect the
impact of strong sequential and year over year financial
performance improvement over the comparable period last year and
the impact of the acquisition of IEA.
18-month backlog as of June 30,
2023, was $13.4 billion, up
22% compared to last year's second quarter.
Adjusted net income, adjusted diluted earnings per share, and
adjusted EBITDA, which are all non-GAAP measures, exclude certain
items which are detailed and reconciled to the most comparable
GAAP-reported measures in the attached Supplemental Disclosures and
Reconciliation of Non-GAAP Disclosures.
Jose Mas, MasTec's Chief
Executive Officer, commented, "All of our segments showed improved
margin performance this quarter compared to the comparable quarter
last year. Our Clean Energy and Infrastructure segment showed the
most improvement with an approximately 400 basis point sequential
improvement in adjusted EBITDA margin in the second quarter and an
approximately 600 basis point improvement over the second quarter
last year. While margins improved as expected, we did begin to see
tighter management of CAPEX by a number of customers. We also
expect revenue at recently acquired IEA to be impacted in the
second half because of project delays, with revenue being pushed
into 2024."
Mr. Mas continued, "We have strong growth potential in all of
our markets, and we are well-positioned to capitalize on these
opportunities in all of our segments. While we are disappointed
with the second half revenue expectations, our focus on improving
margins has materialized and we expect this to continue in the
second half of 2023 and we expect to enter 2024 with significant
revenue growth and margin expansion."
Paul DiMarco, MasTec's Executive
Vice President and Chief Financial Officer, noted, "MasTec had
record revenue and adjusted EBITDA for the second quarter.
Additionally, we made progress on our collections with DSO
improving by 4 days. We remain on track to meet our year-end net
debt leverage goal of low 2 times. The balance sheet remains strong
with approximately $900 million in
liquidity, and we are ready to support the strong growth expected
in all segments."
Based on the information available today, the Company is
providing third quarter and updating full year 2023 guidance. The
Company currently expects full year 2023 revenue to range from
$12.7 billion to $13.0 billion. GAAP net income and diluted
earnings per share for full year 2023 are expected to range between
$111 million and $141 million and $1.38 and $1.77,
respectively. Full year 2023 adjusted EBITDA is expected to range
between $1.05 billion and
$1.10 billion, representing between
8.2% and 8.5% of revenue, and adjusted diluted earnings per
share is expected to range between $3.75 and $4.19.
For the third quarter of 2023, the Company expects revenue to
range from $3.8 billion to
$3.9 billion. Third quarter 2023 GAAP
net income is expected to range between $101
million and $122 million, with
GAAP diluted earnings per share expected to range between
$1.27 and $1.55. Third quarter 2023 adjusted EBITDA is
expected to approximate $360 million
to $390 million or 9.6% to 10.1% of
revenue, with adjusted diluted earnings per share expected to be
$1.85 to $2.13.
Management will hold a conference call to discuss these results
on Friday, August 4, 2023 at
9:00 a.m. Eastern Time. The call-in
number for the conference call is (856) 344-9221 or (888) 394-8218
with a pass code of 3225603. Additionally, the call will be
broadcast live over the Internet and can be accessed and replayed
for 60 days through the Investors section of the Company's website
at www.mastec.com. Presentation materials in support of the call,
along with a guidance summary document, are also available adjacent
to the webcast link.
The following tables set forth the financial results for the
periods ended June 30, 2023 and
2022:
Consolidated
Statements of Operations
|
(unaudited - in
thousands, except per share information)
|
|
|
For the Three Months
Ended
June 30,
|
|
For the Six Months
Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue
|
$ 2,874,115
|
|
$ 2,301,792
|
|
$ 5,458,774
|
|
$ 4,256,192
|
Costs of revenue,
excluding depreciation and amortization
|
2,484,780
|
|
2,028,111
|
|
4,844,274
|
|
3,761,427
|
Depreciation
|
103,038
|
|
87,001
|
|
210,285
|
|
172,195
|
Amortization of
intangible assets
|
42,043
|
|
27,673
|
|
83,987
|
|
53,263
|
General and
administrative expenses
|
176,155
|
|
133,785
|
|
340,069
|
|
279,175
|
Interest expense,
net
|
59,415
|
|
19,387
|
|
112,108
|
|
35,428
|
Equity in earnings of
unconsolidated affiliates, net
|
(7,496)
|
|
(6,587)
|
|
(16,648)
|
|
(13,364)
|
Other income,
net
|
(3,508)
|
|
(5,825)
|
|
(9,709)
|
|
(2,071)
|
Income (loss) before
income taxes
|
$
19,688
|
|
$
18,247
|
|
$
(105,592)
|
|
$
(29,861)
|
(Provision for) benefit
from income taxes
|
(2,934)
|
|
(1,992)
|
|
41,800
|
|
11,157
|
Net income
(loss)
|
$
16,754
|
|
$
16,255
|
|
$
(63,792)
|
|
$
(18,704)
|
Net income
attributable to non-controlling interests
|
1,212
|
|
43
|
|
1,206
|
|
62
|
Net income (loss)
attributable to MasTec, Inc.
|
$
15,542
|
|
$
16,212
|
|
$
(64,998)
|
|
$
(18,766)
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
$
0.20
|
|
$
0.22
|
|
$
(0.84)
|
|
$
(0.25)
|
Basic weighted average
common shares outstanding
|
77,635
|
|
74,445
|
|
77,306
|
|
74,615
|
Diluted earnings
(loss) per share
|
$
0.20
|
|
$
0.20
|
|
$
(0.84)
|
|
$
(0.27)
|
Diluted weighted
average common shares outstanding
|
78,372
|
|
75,537
|
|
77,306
|
|
74,647
|
Consolidated Balance
Sheets
|
(unaudited - in
thousands)
|
|
|
June 30,
2023
|
|
December 31,
2022
|
Assets
|
|
|
|
Current
assets
|
$ 3,829,004
|
|
$ 3,859,127
|
Property and equipment,
net
|
1,753,667
|
|
1,754,101
|
Operating lease
right-of-use assets
|
347,060
|
|
279,534
|
Goodwill,
net
|
2,079,522
|
|
2,045,041
|
Other intangible
assets, net
|
862,775
|
|
946,299
|
Other long-term
assets
|
415,792
|
|
409,157
|
Total
assets
|
$
9,287,820
|
|
$
9,293,259
|
Liabilities and
Equity
|
|
|
|
Current
liabilities
|
$ 2,440,835
|
|
$ 2,496,037
|
Long-term debt,
including finance leases
|
3,154,576
|
|
3,052,193
|
Long-term operating
lease liabilities
|
235,977
|
|
194,050
|
Deferred income
taxes
|
520,820
|
|
571,401
|
Other long-term
liabilities
|
247,192
|
|
238,391
|
Total equity
|
2,688,420
|
|
2,741,187
|
Total liabilities
and equity
|
$
9,287,820
|
|
$
9,293,259
|
Consolidated
Statements of Cash Flows
|
(unaudited - in
thousands)
|
|
|
For the Six Months
Ended
June 30,
|
|
2023
|
|
2022
|
Net cash (used in)
provided by operating activities
|
$
(97,910)
|
|
$
1,541
|
Net cash used in
investing activities
|
(141,460)
|
|
(220,021)
|
Net cash used in
financing activities
|
(12,155)
|
|
(2,984)
|
Effect of currency
translation on cash
|
838
|
|
(343)
|
Net decrease in cash
and cash equivalents
|
(250,687)
|
|
(221,807)
|
Cash and cash
equivalents - beginning of period
|
$
370,592
|
|
$
360,736
|
Cash and cash
equivalents - end of period
|
$
119,905
|
|
$
138,929
|
Backlog by
Reportable Segment (unaudited - in millions)
|
June 30,
2023
|
|
March 31,
2023
|
|
June 30,
2022
|
Communications
|
$
5,420
|
|
$
5,602
|
|
$
5,031
|
Clean Energy and
Infrastructure
|
3,324
|
|
3,546
|
|
1,896
|
Oil and Gas
|
2,042
|
|
2,013
|
|
1,456
|
Power
Delivery
|
2,656
|
|
2,731
|
|
2,622
|
Other
|
—
|
|
—
|
|
—
|
Estimated 18-month
backlog
|
$
13,442
|
|
$
13,892
|
|
$
11,005
|
Backlog is a common measurement used in our industry. Our
methodology for determining backlog may not, however, be comparable
to the methodologies used by others. Estimated backlog represents
the amount of revenue we expect to realize over the next 18 months
from future work on uncompleted construction contracts, including
new contracts under which work has not begun, as well as revenue
from change orders and renewal options. Our estimated backlog also
includes amounts under master service and other service agreements
and our proportionate share of estimated revenue from
proportionately consolidated non-controlled contractual joint
ventures. Estimated backlog for work under master service and other
service agreements is determined based on historical trends,
anticipated seasonal impacts, experience from similar projects and
estimates of customer demand based on communications with our
customers.
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures
|
(unaudited - in
millions, except for percentages and per share
information)
|
|
|
For the Three Months
Ended
June 30,
|
|
For the Six Months
Ended
June 30,
|
Segment
Information
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue by
Reportable Segment
|
|
|
|
|
|
|
|
Communications
|
$
868.7
|
|
$
822.0
|
|
$
1,675.2
|
|
$
1,486.2
|
Clean Energy and
Infrastructure
|
969.7
|
|
494.5
|
|
1,794.6
|
|
930.4
|
Oil and Gas
|
341.8
|
|
341.2
|
|
598.3
|
|
552.2
|
Power
Delivery
|
702.6
|
|
646.5
|
|
1,412.0
|
|
1,296.9
|
Other
|
—
|
|
—
|
|
—
|
|
—
|
Eliminations
|
(8.7)
|
|
(2.4)
|
|
(21.3)
|
|
(9.5)
|
Consolidated
revenue
|
$
2,874.1
|
|
$
2,301.8
|
|
$
5,458.8
|
|
$
4,256.2
|
|
|
For the Three Months
Ended
June 30,
|
|
For the Six Months
Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Adjusted EBITDA by
Segment
|
|
|
|
|
|
|
|
EBITDA
|
$
224.2
|
|
$
152.3
|
|
$
300.8
|
|
$
231.0
|
Non-cash stock-based
compensation expense (a)
|
8.6
|
|
6.8
|
|
17.1
|
|
13.2
|
Acquisition and
integration costs (b)
|
22.7
|
|
12.5
|
|
39.8
|
|
26.1
|
Losses on fair value
of investment (a)
|
—
|
|
7.1
|
|
0.2
|
|
7.1
|
Bargain purchase gain
(a)
|
—
|
|
(0.2)
|
|
—
|
|
(0.2)
|
Adjusted
EBITDA
|
$
255.4
|
|
$
178.5
|
|
$
357.9
|
|
$
277.2
|
Segment:
|
|
|
|
|
|
|
|
Communications
|
$
94.1
|
|
$
85.3
|
|
$
155.8
|
|
$
126.5
|
Clean Energy and
Infrastructure
|
49.7
|
|
(5.2)
|
|
60.2
|
|
5.6
|
Oil and Gas
|
77.0
|
|
64.1
|
|
91.6
|
|
87.6
|
Power
Delivery
|
57.4
|
|
48.4
|
|
106.5
|
|
101.5
|
Other
|
6.7
|
|
7.4
|
|
13.8
|
|
14.4
|
Segment
Total
|
284.9
|
|
200.0
|
|
427.9
|
|
335.6
|
Corporate
|
(29.5)
|
|
(21.5)
|
|
(70.0)
|
|
(58.4)
|
Adjusted
EBITDA
|
$
255.4
|
|
$
178.5
|
|
$
357.9
|
|
$
277.2
|
|
Note: The
Communications, Clean Energy and Infrastructure, and Power Delivery
segments represent the "non-Oil & Gas"
segments.
|
(a)
|
Non-cash stock-based
compensation expense, losses on the fair value of our investment in
AVCT and the bargain purchase gain from a fourth quarter 2021
acquisition are included within Corporate results.
|
(b)
|
For the three month
period ended June 30, 2023, Communications, Clean Energy and
Infrastructure and Power Delivery EBITDA included $4.6 million,
$16.4 million and $0.3 million, respectively, of acquisition and
integration costs related to our recent acquisitions, and Corporate
EBITDA included $1.4 million of such costs, and for the six month
period ended June 30, 2023, $13.5 million, $21.7 million, $1.9
million and $2.7 million of such costs were included in EBITDA of
the segments and Corporate, respectively. For the three month
period ended June 30, 2022, Communications, Oil and Gas, Power
Delivery and Corporate EBITDA included $1.1 million, $1.4 million,
$7.0 million and $3.0 million of such acquisition and integration
costs, respectively, and for the six month period ended June 30,
2022, $1.9 million, $3.3 million, $14.1 million, and $6.8 million
of such costs were included in EBITDA of the segments and
Corporate, respectively.
|
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures
|
(unaudited - in
millions, except for percentages and per share
information)
|
|
|
For the Three Months
Ended
June 30,
|
|
For the Six Months
Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Adjusted EBITDA
Margin by Segment
|
|
|
|
|
|
|
|
EBITDA
Margin
|
7.8 %
|
|
6.6 %
|
|
5.5 %
|
|
5.4 %
|
Non-cash stock-based
compensation expense (a)
|
0.3 %
|
|
0.3 %
|
|
0.3 %
|
|
0.3 %
|
Acquisition and
integration costs (b)
|
0.8 %
|
|
0.5 %
|
|
0.7 %
|
|
0.6 %
|
Losses on fair value
of investment (a)
|
— %
|
|
0.3 %
|
|
0.0 %
|
|
0.2 %
|
Bargain purchase gain
(a)
|
— %
|
|
(0.0) %
|
|
— %
|
|
(0.0) %
|
Adjusted EBITDA
margin
|
8.9 %
|
|
7.8 %
|
|
6.6 %
|
|
6.5 %
|
Segment:
|
|
|
|
|
|
|
|
Communications
|
10.8 %
|
|
10.4 %
|
|
9.3 %
|
|
8.5 %
|
Clean Energy and
Infrastructure
|
5.1 %
|
|
(1.1) %
|
|
3.4 %
|
|
0.6 %
|
Oil and Gas
|
22.5 %
|
|
18.8 %
|
|
15.3 %
|
|
15.9 %
|
Power
Delivery
|
8.2 %
|
|
7.5 %
|
|
7.5 %
|
|
7.8 %
|
Other
|
NM
|
|
NM
|
|
NM
|
|
NM
|
Segment
Total
|
9.9 %
|
|
8.7 %
|
|
7.8 %
|
|
7.9 %
|
Corporate
|
—
|
|
—
|
|
—
|
|
—
|
Adjusted EBITDA
margin
|
8.9 %
|
|
7.8 %
|
|
6.6 %
|
|
6.5 %
|
|
NM - Percentage is not
meaningful
|
Note: The
Communications, Clean Energy and Infrastructure, and Power Delivery
segments represent the "non-Oil & Gas"
segments.
|
(a)
|
Non-cash stock-based
compensation expense, losses on the fair value of our investment in
AVCT and the bargain purchase gain from a fourth quarter 2021
acquisition are included within Corporate results.
|
(b)
|
For the three month
period ended June 30, 2023, Communications, Clean Energy and
Infrastructure and Power Delivery EBITDA included $4.6 million,
$16.4 million and $0.3 million, respectively, of acquisition and
integration costs related to our recent acquisitions, and Corporate
EBITDA included $1.4 million of such costs, and for the six month
period ended June 30, 2023, $13.5 million, $21.7 million, $1.9
million and $2.7 million of such costs were included in EBITDA of
the segments and Corporate, respectively. For the three month
period ended June 30, 2022, Communications, Oil and Gas, Power
Delivery and Corporate EBITDA included $1.1 million, $1.4 million,
$7.0 million and $3.0 million of such acquisition and integration
costs, respectively, and for the six month period ended June 30,
2022, $1.9 million, $3.3 million, $14.1 million, and $6.8 million
of such costs were included in EBITDA of the segments and
Corporate, respectively.
|
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures
|
(unaudited - in
millions, except for percentages and per share
information)
|
|
|
For the Three Months
Ended
June 30,
|
|
For the Six Months
Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
EBITDA and Adjusted
EBITDA Reconciliation
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
16.8
|
|
$
16.3
|
|
$
(63.8)
|
|
$
(18.7)
|
Interest expense,
net
|
59.4
|
|
19.4
|
|
112.1
|
|
35.4
|
Provision for (benefit
from) income taxes
|
2.9
|
|
2.0
|
|
(41.8)
|
|
(11.2)
|
Depreciation
|
103.0
|
|
87.0
|
|
210.3
|
|
172.2
|
Amortization of
intangible assets
|
42.0
|
|
27.7
|
|
84.0
|
|
53.3
|
EBITDA
|
$
224.2
|
|
$
152.3
|
|
$
300.8
|
|
$
231.0
|
Non-cash stock-based
compensation expense
|
8.6
|
|
6.8
|
|
17.1
|
|
13.2
|
Acquisition and
integration costs
|
22.7
|
|
12.5
|
|
39.8
|
|
26.1
|
Losses on fair value
of investment
|
—
|
|
7.1
|
|
0.2
|
|
7.1
|
Bargain purchase
gain
|
—
|
|
(0.2)
|
|
—
|
|
(0.2)
|
Adjusted
EBITDA
|
$
255.4
|
|
$
178.5
|
|
$
357.9
|
|
$
277.2
|
|
|
For the Three Months
Ended
June 30,
|
|
For the Six Months
Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
EBITDA and Adjusted
EBITDA Margin Reconciliation
|
|
|
|
|
|
|
|
Net income
(loss)
|
0.6 %
|
|
0.7 %
|
|
(1.2) %
|
|
(0.4) %
|
Interest expense,
net
|
2.1 %
|
|
0.8 %
|
|
2.1 %
|
|
0.8 %
|
Provision for (benefit
from) income taxes
|
0.1 %
|
|
0.1 %
|
|
(0.8) %
|
|
(0.3) %
|
Depreciation
|
3.6 %
|
|
3.8 %
|
|
3.9 %
|
|
4.0 %
|
Amortization of
intangible assets
|
1.5 %
|
|
1.2 %
|
|
1.5 %
|
|
1.3 %
|
EBITDA
margin
|
7.8 %
|
|
6.6 %
|
|
5.5 %
|
|
5.4 %
|
Non-cash stock-based
compensation expense
|
0.3 %
|
|
0.3 %
|
|
0.3 %
|
|
0.3 %
|
Acquisition and
integration costs
|
0.8 %
|
|
0.5 %
|
|
0.7 %
|
|
0.6 %
|
Losses on fair value
of investment
|
— %
|
|
0.3 %
|
|
0.0 %
|
|
0.2 %
|
Bargain purchase
gain
|
— %
|
|
(0.0) %
|
|
— %
|
|
(0.0) %
|
Adjusted EBITDA
margin
|
8.9 %
|
|
7.8 %
|
|
6.6 %
|
|
6.5 %
|
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures
|
(unaudited - in
millions, except for percentages and per share
information)
|
|
|
For the Three Months
Ended
June 30,
|
|
For the Six Months
Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Adjusted Net Income
Reconciliation
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
16.8
|
|
$
16.3
|
|
$
(63.8)
|
|
$
(18.7)
|
Non-cash stock-based
compensation expense
|
8.6
|
|
6.8
|
|
17.1
|
|
13.2
|
Amortization of
intangible assets
|
42.0
|
|
27.7
|
|
84.0
|
|
53.3
|
Acquisition and
integration costs
|
22.7
|
|
12.5
|
|
39.8
|
|
26.1
|
Losses on fair value
of investment
|
—
|
|
7.1
|
|
0.2
|
|
7.1
|
Bargain purchase
gain
|
—
|
|
(0.2)
|
|
—
|
|
(0.2)
|
Income tax effect of
adjustments (a)
|
(19.3)
|
|
(14.2)
|
|
(48.5)
|
|
(26.8)
|
Adjusted net
income
|
$
70.7
|
|
$
56.0
|
|
$
28.8
|
|
$
54.0
|
|
|
For the Three Months
Ended
June 30,
|
|
For the Six Months
Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Adjusted Diluted
Earnings per Share Reconciliation
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
$
0.20
|
|
$
0.20
|
|
$
(0.84)
|
|
$
(0.27)
|
Non-cash stock-based
compensation expense
|
0.11
|
|
0.09
|
|
0.22
|
|
0.17
|
Amortization of
intangible assets
|
0.54
|
|
0.37
|
|
1.07
|
|
0.70
|
Acquisition and
integration costs
|
0.29
|
|
0.17
|
|
0.51
|
|
0.34
|
Losses on fair value
of investment
|
—
|
|
0.09
|
|
0.00
|
|
0.09
|
Bargain purchase
gain
|
—
|
|
(0.00)
|
|
—
|
|
(0.00)
|
Income tax effect of
adjustments (a)
|
(0.25)
|
|
(0.19)
|
|
(0.62)
|
|
(0.35)
|
Adjusted diluted
earnings per share
|
$
0.89
|
|
$
0.73
|
|
$
0.35
|
|
$
0.70
|
|
|
(a)
|
Represents the tax
effects of the adjusted items that are subject to tax, including
the tax effects of non-cash stock-based compensation expense,
including from share-based payment awards. Tax effects are
determined based on the tax treatment of the related item, the
incremental statutory tax rate of the jurisdictions pertaining to
the adjustment, and their effects on pre-tax income.
|
Calculation of Net
Debt
|
June 30,
2023
|
|
December 31,
2022
|
Current portion of
long-term debt, including finance leases
|
$
169.3
|
|
$
171.9
|
Long-term debt,
including finance leases
|
3,154.6
|
|
3,052.2
|
Less: cash and cash
equivalents
|
(119.9)
|
|
(370.6)
|
Net
Debt
|
$
3,204.0
|
|
$
2,853.5
|
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures
|
(unaudited - in
millions, except for percentages and per share
information)
|
|
|
Guidance for the
Year Ended
December 31,
2023 Est.
|
|
For the Year
Ended December
31, 2022
|
|
For the Year
Ended December
31, 2021
|
EBITDA and Adjusted
EBITDA Reconciliation
|
|
|
|
|
|
Net
income
|
$
111 - 141
|
|
$
33.9
|
|
$
330.7
|
Interest expense,
net
|
220 – 225
|
|
112.3
|
|
53.4
|
Provision for income
taxes
|
30 – 40
|
|
9.2
|
|
99.3
|
Depreciation
|
436
|
|
371.2
|
|
345.6
|
Amortization of
intangible assets
|
168
|
|
135.9
|
|
77.2
|
EBITDA
|
$
966 - 1,011
|
|
$
662.5
|
|
$
906.3
|
Non-cash stock-based
compensation expense
|
34
|
|
27.4
|
|
24.8
|
Acquisition and
integration costs
|
50 - 55
|
|
86.0
|
|
3.6
|
Losses on fair value
of investment
|
0
|
|
7.7
|
|
7.8
|
Bargain purchase
gain
|
—
|
|
(0.2)
|
|
(3.5)
|
Project results from
non-controlled joint venture
|
—
|
|
(2.8)
|
|
—
|
Adjusted
EBITDA
|
$ 1,050 -
1,100
|
|
$
780.6
|
|
$
939.1
|
|
|
Guidance for the
Year Ended
December 31,
2023 Est.
|
|
For the Year
Ended December
31, 2022
|
|
For the Year
Ended December
31, 2021
|
EBITDA and Adjusted
EBITDA Margin Reconciliation
|
|
|
|
|
|
Net
income
|
0.9 - 1.1
%
|
|
0.3 %
|
|
4.2 %
|
Interest expense,
net
|
1.7 %
|
|
1.1 %
|
|
0.7 %
|
Provision for income
taxes
|
0.2 - 0.3 %
|
|
0.1 %
|
|
1.2 %
|
Depreciation
|
3.4 %
|
|
3.8 %
|
|
4.3 %
|
Amortization of
intangible assets
|
1.3 %
|
|
1.4 %
|
|
1.0 %
|
EBITDA
margin
|
7.6 - 7.8
%
|
|
6.8 %
|
|
11.4 %
|
Non-cash stock-based
compensation expense
|
0.3 %
|
|
0.3 %
|
|
0.3 %
|
Acquisition and
integration costs
|
0.4 %
|
|
0.9 %
|
|
0.0 %
|
Losses on fair value
of investment
|
0.0 %
|
|
0.1 %
|
|
0.1 %
|
Bargain purchase
gain
|
— %
|
|
(0.0) %
|
|
(0.0) %
|
Project results from
non-controlled joint venture
|
— %
|
|
(0.0) %
|
|
— %
|
Adjusted EBITDA
margin
|
8.2 - 8.5
%
|
|
8.0 %
|
|
11.8 %
|
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures
|
(unaudited - in
millions, except for percentages and per share
information)
|
|
|
Guidance for the
Year Ended
December 31,
2023 Est.
|
|
For the Year
Ended December
31, 2022
|
|
For the Year
Ended December
31, 2021
|
Adjusted Net Income
Reconciliation
|
|
|
|
|
|
Net
income
|
$
111 – 141
|
|
$
33.9
|
|
$
330.7
|
Non-cash stock-based
compensation expense
|
34
|
|
27.4
|
|
24.8
|
Amortization of
intangible assets
|
168
|
|
135.9
|
|
77.2
|
Acquisition and
integration costs
|
50 – 55
|
|
86.0
|
|
3.6
|
Losses on fair value
of investment
|
0
|
|
7.7
|
|
7.8
|
Bargain purchase
gain
|
—
|
|
(0.2)
|
|
(3.5)
|
Project results from
non-controlled joint venture
|
—
|
|
(2.8)
|
|
—
|
Income tax effect of
adjustments (a)
|
(66) - (67)
|
|
(58.6)
|
|
(27.4)
|
Statutory tax rate
effects (b)
|
—
|
|
5.5
|
|
6.7
|
Adjusted net
income
|
$
297 - 332
|
|
$
234.8
|
|
$
420.0
|
|
|
Guidance for the
Year Ended
December 31,
2023 Est.
|
|
For the Year
Ended December
31, 2022
|
|
For the Year
Ended December
31, 2021
|
Adjusted Diluted
Earnings per Share Reconciliation
|
|
|
|
|
|
Diluted earnings per
share
|
$
1.38 - 1.77
|
|
$
0.42
|
|
$
4.45
|
Non-cash stock-based
compensation expense
|
0.43
|
|
0.36
|
|
0.34
|
Amortization of
intangible assets
|
2.14
|
|
1.78
|
|
1.04
|
Acquisition and
integration costs
|
0.64 - 0.70
|
|
1.13
|
|
0.05
|
Losses on fair value
of investment
|
0.00
|
|
0.10
|
|
0.11
|
Bargain purchase
gain
|
—
|
|
(0.00)
|
|
(0.05)
|
Project results from
non-controlled joint venture
|
—
|
|
(0.04)
|
|
—
|
Income tax effect of
adjustments (a)
|
(0.84) -
(0.85)
|
|
(0.77)
|
|
(0.37)
|
Statutory tax rate
effects (b)
|
—
|
|
0.07
|
|
0.09
|
Adjusted diluted
earnings per share
|
$
3.75 - 4.19
|
|
$
3.05
|
|
$
5.65
|
|
(a)
|
Represents the tax
effects of the adjusted items that are subject to tax, including
the tax effects of non-cash stock-based compensation expense,
including from share-based payment awards. Tax effects are
determined based on the tax treatment of the related item, the
incremental statutory tax rate of the jurisdictions pertaining to
the adjustment, and their effects on pre-tax income.
|
(b)
|
For the years ended
December 31, 2022 and 2021, includes the effect of changes in state
tax rates.
|
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures
|
(unaudited - in
millions, except for percentages and per share
information)
|
|
|
Guidance for the
Three Months
Ended September 30,
2023 Est.
|
|
For the Three
Months Ended
September 30,
2022
|
EBITDA and Adjusted
EBITDA Reconciliation
|
|
|
|
Net
income
|
$
101 – 122
|
|
$
49.2
|
Interest expense,
net
|
56 – 57
|
|
26.9
|
Provision for income
taxes
|
33 – 40
|
|
11.1
|
Depreciation
|
112
|
|
91.3
|
Amortization of
intangible assets
|
42
|
|
28.0
|
EBITDA
|
$
344 – 373
|
|
$
206.5
|
Non-cash stock-based
compensation expense
|
9
|
|
5.7
|
Acquisition and
integration costs
|
8
|
|
33.3
|
Losses on fair value
of investment
|
—
|
|
0.1
|
Adjusted
EBITDA
|
$
360 - 390
|
|
$
245.6
|
|
|
|
|
|
|
Guidance for the
Three Months
Ended September 30,
2023 Est.
|
|
For the Three
Months Ended
September 30,
2022
|
EBITDA and Adjusted
EBITDA Margin Reconciliation
|
|
|
|
Net
income
|
2.7 - 3.2
%
|
|
2.0 %
|
Interest expense,
net
|
1.5 %
|
|
1.1 %
|
Provision for income
taxes
|
0.9 - 1.0 %
|
|
0.4 %
|
Depreciation
|
2.9 - 3.0 %
|
|
3.6 %
|
Amortization of
intangible assets
|
1.1 %
|
|
1.1 %
|
EBITDA
margin
|
9.1 - 9.7
%
|
|
8.2 %
|
Non-cash stock-based
compensation expense
|
0.2 %
|
|
0.2 %
|
Acquisition and
integration costs
|
0.2 %
|
|
1.3 %
|
Losses on fair value
of investment
|
— %
|
|
0.0 %
|
Adjusted EBITDA
margin
|
9.6 - 10.1
%
|
|
9.8 %
|
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures
|
(unaudited - in
millions, except for percentages and per share
information)
|
|
|
Guidance for the
Three Months
Ended September 30,
2023 Est.
|
|
For the Three
Months Ended
September 30,
2022
|
Adjusted Net Income
Reconciliation
|
|
|
|
Net
income
|
$
101 – 122
|
|
$
49.2
|
Non-cash stock-based
compensation expense
|
9
|
|
5.7
|
Amortization of
intangible assets
|
42
|
|
28.0
|
Acquisition and
integration costs
|
8
|
|
33.3
|
Losses on fair value
of investment
|
—
|
|
0.1
|
Income tax effect of
adjustments (a)
|
(13)
|
|
(15.5)
|
Adjusted net
income
|
$
146 - 168
|
|
$
100.8
|
|
|
Guidance for the
Three Months
Ended September 30,
2023 Est.
|
|
For the Three
Months Ended
September 30,
2022
|
Adjusted Diluted
Earnings per Share Reconciliation
|
|
|
|
Diluted earnings per
share
|
$
1.27 - 1.55
|
|
$
0.65
|
Non-cash stock-based
compensation expense
|
0.11
|
|
0.08
|
Amortization of
intangible assets
|
0.54
|
|
0.37
|
Acquisition and
integration costs
|
0.10
|
|
0.44
|
Losses on fair value
of investment
|
—
|
|
0.00
|
Income tax effect of
adjustments (a)
|
(0.17)
|
|
(0.21)
|
Adjusted diluted
earnings per share
|
$
1.85 - 2.13
|
|
$
1.34
|
|
|
(a)
|
Represents the tax
effects of the adjusted items that are subject to tax, including
the tax effects of non-cash stock-based compensation expense,
including from share-based payment awards. Tax effects are
determined based on the tax treatment of the related item, the
incremental statutory tax rate of the jurisdictions pertaining to
the adjustment, and their effects on pre-tax income.
|
The tables may contain slight summation differences due to
rounding.
MasTec, Inc. is a leading infrastructure construction company
operating mainly throughout North
America across a range of industries. The Company's primary
activities include the engineering, building, installation,
maintenance and upgrade of communications, energy, utility and
other infrastructure, such as: power delivery services, including
transmission, distribution, environmental planning and compliance,
wireless, wireline/fiber and customer fulfillment activities;
power generation, primarily from clean energy and renewable
sources; pipeline distribution infrastructure, including natural
gas, carbon capture sequestration, water and pipeline integrity
services; heavy civil; industrial infrastructure; and environmental
remediation services. MasTec's customers are primarily in these
industries. The Company's corporate website is located at
www.mastec.com. The Company's website should be considered as a
recognized channel of distribution, and the Company may
periodically post important, or supplemental, information regarding
contracts, awards or other related news and webcasts on the Events
& Presentations page in the Investors section therein.
This presentation contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act.
Forward-looking statements include, but are not limited to,
statements relating to expectations regarding the future financial
and operational performance of MasTec; expectations regarding
MasTec's business or financial outlook; expectations regarding
MasTec's plans, strategies and opportunities; expectations
regarding opportunities, technological developments, competitive
positioning, future economic conditions and other trends in
particular markets or industries; the impact of inflation on
MasTec's costs and the ability to recover increased costs, as well
as other statements reflecting expectations, intentions,
assumptions or beliefs about future events and other statements
that do not relate strictly to historical or current facts. These
statements are based on currently available operating, financial,
economic and other information, and are subject to a number of
significant risks and uncertainties. A variety of factors in
addition to those mentioned above, many of which are beyond our
control, could cause actual future results to differ materially
from those projected in the forward-looking statements. Other
factors that might cause such a difference include, but are not
limited to: market conditions, including levels of
inflation, rising interest rates or supply chain
issues, technological developments, regulatory or
policy changes, including permitting processes and tax incentives
that affect us or our customers' industries; the effect of federal,
local, state, foreign or tax legislation and other regulations
affecting the industries we serve and related projects and
expenditures; the effect on demand for our services of changes in
the amount of capital expenditures by our customers due to, among
other things, economic conditions, including the potential adverse
effects of potential recessionary concerns,
inflationary issues, supply chain disruptions and higher interest
rates, the availability and cost of financing,
climate-related matters, customer consolidation in the
industries we serve and/or the effects of public health matters;
activity in the industries we serve and the impact on our
customers' expenditure levels caused by fluctuations in commodity
prices, including for fuel and energy sources, and/or
fluctuations in materials, labor, supplies, equipment and other
costs, or supply-related issues that affect availability or cause
delays for such items; our ability to manage projects
effectively and in accordance with our estimates, as well as our
ability to accurately estimate the costs associated with our fixed
price and other contracts, including any material changes in
estimates for completion of projects and estimates of the
recoverability of change orders; risks related to completed
or potential acquisitions, such as IEA, including our ability to
integrate acquired businesses within expected timeframes, including
their business operations, internal controls and/or systems, which
may be found to have material weaknesses, and our ability to
achieve the revenue, cost savings and earnings levels from such
acquisitions at or above the levels projected, as well as the risk
of potential asset impairment charges and write-downs of
goodwill; our ability to attract and retain qualified
personnel, key management and skilled employees, including from
acquired businesses, our ability to enforce any noncompetition
agreements, and our ability to maintain a workforce based upon
current and anticipated workloads; any material changes
in estimates for legal costs or case settlements or adverse
determinations on any claim, lawsuit or proceeding; the adequacy of
our insurance, legal and other reserves; the timing and
extent of fluctuations in operational, geographic and weather
factors affecting our customers, projects and the industries in
which we operate; the highly competitive nature of our industry and
the ability of our customers, including our largest customers, to
terminate or reduce the amount of work, or in some cases, the
prices paid for services, on short or no notice under our
contracts, and/or customer disputes related to our performance of
services and the resolution of unapproved change orders;
requirements of and restrictions imposed by our credit facility,
term loans, senior notes and any future loans or securities;
the effect of state and federal regulatory initiatives,
including risks related to the costs of compliance with existing
and potential future environmental, social and governance
requirements, including with respect to climate-related
matters; our dependence on a limited number of customers and
our ability to replace non-recurring projects with new
projects; risks associated with potential environmental
issues and other hazards from our operations; disputes with, or
failures of, our subcontractors to deliver agreed-upon supplies or
services in a timely fashion, and the risk of being required to pay
our subcontractors even if our customers do not pay us; any
exposure resulting from system or information technology
interruptions or data security breaches; the outcome of our plans
for future operations, growth and services, including business
development efforts, backlog, acquisitions and dispositions;
risks related to our strategic arrangements, including our
equity investments; risks associated with volatility of
our stock price or any dilution or stock price volatility that
shareholders may experience in connection with shares we may issue
as purchase consideration in connection with past or future
acquisitions, or as consideration for earn-out obligations or as a
result of other stock issuances; our ability to obtain performance
and surety bonds; risks related to our operations that employ a
unionized workforce, including labor availability, productivity and
relations, as well as risks associated with multiemployer union
pension plans, including underfunding and withdrawal liabilities;
risks associated with operating in or expanding into additional
international markets, including risks from fluctuations in foreign
currencies, foreign labor and general business conditions and risks
from failure to comply with laws applicable to our foreign
activities and/or governmental policy uncertainty; risks
associated with material weaknesses in our internal control over
financial reporting and our ability to remediate such
weaknesses; a small number of our existing shareholders
have the ability to influence major corporate decisions, as well as
other risks detailed in our filings with the Securities and
Exchange Commission. We believe these forward-looking statements
are reasonable; however, you should not place undue reliance on any
forward-looking statements, which are based on current
expectations. Furthermore, forward-looking statements speak only as
of the date they are made. If any of these risks or uncertainties
materialize, or if any of our underlying assumptions are incorrect,
our actual results may differ significantly from the results that
we express in, or imply by, any of our forward-looking statements.
These and other risks are detailed in our filings with the
Securities and Exchange Commission. We do not undertake any
obligation to publicly update or revise these forward-looking
statements after the date of this press release to reflect future
events or circumstances, except as required by applicable law. We
qualify any and all of our forward-looking statements by these
cautionary factors.
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SOURCE MasTec, Inc.