- Earnings of $0.27 per Diluted Share for the Quarter -
Year-to-date Cash Provided by Operating Activities Doubled to $86
Million - Guidance Increased to $0.88 per Diluted Share for 2009
CORAL GABLES, Fla., Oct. 28 /PRNewswire-FirstCall/ -- MasTec, Inc.
(NYSE: MTZ) today announced that revenue for the quarter ended
September 30, 2009 was $397 million with net income of $21.6
million, or $0.27 per diluted share, compared with revenue of $398
million and net income of $24.1 million, or $0.35 per diluted share
for the prior year quarter. The Company continued to focus on
margin improvement and cost containment. Third quarter gross margin
improved again, up 60 basis points to 15.6% from 15.0% from the
previous year's quarter. The margin for earnings before interest,
taxes, depreciation and amortization, or EBITDA, increased to 9.7%
for the quarter just ended, up from 9.1% in the third quarter of
2008. Jose R. Mas, MasTec's President and Chief Executive Officer,
commented, "Once again, we had an excellent quarter, in spite of a
difficult economic environment. Continued tight credit markets and
delays in the Federal government finalization of stimulus plan
programs have delayed projects and caused many of our customers to
defer capital expenditures. However, with the recent release of
Federal stimulus grant monies, combined with this month's rollout
of the Federal alternative energy loan guarantee program, projects
are beginning to be awarded. The loan guarantees are estimated to
support up to $70 billion in new renewables projects and we are
already beginning to see our order book build nicely for 2010 and
beyond, particularly in alternative energy." Mr. Mas continued,
"There is no question that the second half of 2009 has been a
difficult year for us and our industry. However, our recent
contract wins further reinforce our belief that 2010 could be an
unprecedented year of opportunity for MasTec. Despite the slower
second half of 2009, we have been able to improve margins, while
operating with excess capacity to retain our ramp-up capabilities."
MasTec's balance sheet and cash flow from operations remained
strong. At the end of the second quarter, MasTec's liquidity,
defined as cash plus availability under our credit facility was
$183 million, compared with $108 million last year. Regarding
MasTec's continued strong cash flow and balance sheet, Bob
Campbell, MasTec's Executive Vice President and Chief Financial
Officer noted, "Cash flow from operations of $86 million for the
September year-to-date period was double last year's cash flow and
cash of $95 million was also double our cash at September a year
ago. Over the last two years, we have expanded into a number of new
growth markets while maintaining excellent liquidity and a solid
capital structure." MasTec's 2009 earnings guidance has been
increased to $0.88 per diluted share for 2009. Previous guidance
was $0.85 per diluted share. Revenue guidance is being adjusted to
$1.55 billion. 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 the mostly
non-cash book tax rate. Management will also hold a conference call
to discuss these results on Thursday, October 29, 2009 at 9:00 a.m.
Eastern time. The call-in number for the conference call is (913)
312-0705 and the replay number is (719) 457-0820, with a pass code
of 1744552. 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 September 30, 2009 2008 Revenue $397,248
$397,754 Costs of revenue, excluding depreciation and amortization
335,241 338,060 Depreciation and amortization 10,760 7,839 General
and administrative expenses, including non-cash stock compensation
expense of $744 in 2009 and $790 in 2008 23,710 23,885 Interest
expense, net of interest income 5,769 3,963 Other income, net (393)
(391) Income from continuing operations before income taxes 22,161
24,398 Income taxes 517 102 Income from continuing operations
21,644 24,296 Loss from discontinued operations, net of tax - (182)
Net income $21,644 $24,114 Basic net income per share: Continuing
operations $0.29 $0.36 Discontinued operations - - Total basic net
income per share $0.29 $0.36 Basic weighted average common shares
Outstanding 75,727 67,578 Diluted net income per share: Continuing
operations $0.27 $0.36 Discontinued operations - (0.01) Total
diluted net income per share $0.27 $0.35 Diluted weighted average
common shares Outstanding 83,989 68,567 Condensed Unaudited
Consolidated Balance Sheets (In thousands) September 30, December
31, 2009 2008 Assets Total current assets $424,810 $439,365
Property and equipment, net 146,783 158,013 Goodwill and other
intangibles, net 437,653 420,604 Deferred taxes, net 17,430 25,165
Securities available for sale 23,748 20,580 Other assets 28,689
27,170 Total assets $1,079,113 $1,090,897 Liabilities and
Shareholders' Equity Current liabilities $254,734 $334,048 Other
liabilities 25,862 26,305 Long-term debt 294,653 287,454 Total
shareholders' equity 503,864 443,090 Total liabilities and
shareholders' equity $1,079,113 $1,090,897 Condensed Unaudited
Consolidated Statements of Cash Flows (In thousands) For the Nine
Months Ended September 30, 2009 2008 Net cash provided by operating
activities $85,586 $42,668 Net cash used in investing activities
(38,827) (90,157) Net cash provided by financing activities 1,185
18,348 Net increase (decrease) in cash and cash equivalents 47,944
(29,141) Net effect of currency translation on cash 109 (24) Cash
and cash equivalents - beginning of Period 47,263 74,288 Cash and
cash equivalents - end of period $95,316 $45,123 Reconciliation of
Non-GAAP Disclosures-Unaudited (In millions, except for percentages
and per share data) Three Months Ended Three Months Ended September
30, 2009 September 30, 2008 EBITDA Total EBITDA Total EBITDA
Reconciliation Margin Margin GAAP Net income $21.6 5.4% $24.1 6.1%
Loss from discontinued operations - 0.0% 0.2 0.0% Interest, net 5.8
1.5% 4.0 1.0% Taxes 0.5 0.1% 0.1 0.0% Depreciation and amortization
10.8 2.7% 7.8 2.0% Earnings before interest, taxes, depreciation
and amortization (EBITDA) $38.7 9.7% $36.2 9.1% Nine Months Ended
Nine Months Ended September 30, 2009 September 30, 2008 EBITDA
Total EBITDA Total EBITDA Reconciliation Margin Margin GAAP Net
income $52.6 4.7% $47.7 4.9% Loss from discontinued operations -
0.0% 0.4 0.1% Interest, net 17.3 1.5% 10.1 1.0% Taxes 1.0 0.1% 0.5
0.1% Depreciation and amortization 32.1 2.8% 19.5 2.0% Earnings
before interest, taxes, depreciation and amortization (EBITDA)
$103.0 9.1% $78.2 8.1% Years Ended EBITDA Reconciliation 2009E 2008
GAAP Net Income $69 $66 Loss from discontinued operations, net of
taxes - 1 Interest, net 23-24 14 Income tax provision 10-11 1
Amortization 10-11 4 Depreciation 33-35 24 Earnings from continuing
operations before interest, taxes, amortization and depreciation
(EBITDA) $145-150 $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 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 of MasTec, Inc., +1-305-406-1815, +1-305-406-1886 fax,
Web Site: http://www.mastec.com/
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