CORAL GABLES, Fla., Feb. 27,
2020 /PRNewswire/ -- MasTec, Inc. (NYSE: MTZ) today
announced strong 2019 fourth quarter and full year financial
results and issued its initial 2020 guidance expectation.
- Fourth quarter 2019 revenue was $1.7
billion, compared to $1.9
billion for the same period last year. GAAP net income was
$100.7 million, or $1.33 per diluted share, compared to $31.8 million, or $0.41 per diluted share, in the fourth quarter of
2018.
- Fourth quarter 2019 adjusted net income and adjusted diluted
earnings per share, both non-GAAP measures, were $98.8 million, or $1.30 per adjusted diluted share, compared to
$83.1 million, or $1.07 per adjusted diluted share in the fourth
quarter of 2018, a 21.5% increase per adjusted diluted
share.
- Fourth quarter 2019 adjusted EBITDA, also a non-GAAP measure,
was $210.2 million, compared to
$195.8 million in the fourth quarter
of 2018, a 7.4% increase. Fourth quarter adjusted EBITDA margin
rate of 12.3% increased 210 basis points compared to the fourth
quarter of 2018.
- 18-month backlog as of December 31,
2019 was a record $8.0
billion, a 3.9% increase compared to $7.7 billion as of December 31, 2018.
The Company also reported:
- For the year ended December 31,
2019, revenue was $7.2
billion, a 4.3% increase compared to $6.9 billion for the prior year. GAAP net income
was $394.1 million, or $5.17 per diluted share, compared to $259.2 million, or $3.26 per diluted share in 2018.
- Full year 2019 adjusted net income and adjusted diluted
earnings per share, both non-GAAP measures, were $397.2 million or $5.21 per adjusted diluted share, compared to
$300.6 million or $3.77 per adjusted diluted share during 2018, a
38.2% increase per adjusted diluted share.
- Full year 2019 adjusted EBITDA, also a non-GAAP measure, was
$843.2 million, compared to
$721.0 million in 2018, a 17.0%
increase. Full year 2019 adjusted EBITDA margin rate of 11.7%
increased 130 basis points compared to last year.
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, "First I would like to thank the men
and women of MasTec for helping us deliver a fourth consecutive
year of record financial performance. Our backlog as of
December 31, 2019 of $8.0 billion gives us confidence that 2020 will
be yet another record year for MasTec. Importantly, trends in our
end markets support our view of continued and significant growth
opportunities for MasTec in 2021 and beyond."
Mr. Mas concluded, "I am also pleased to note that our Power
Generation & Industrial segment reached the milestone level of
$1 billion in 2019 revenue, a
$700 million increase since 2017. We
expect that this segment, along with our Communications, Oil &
Gas, and Electrical Transmission segments will all show continued
revenue growth in 2020 and beyond."
George Pita, MasTec's Executive
Vice President and Chief Financial Officer, noted, "We continued
our strong cash flow performance trend, with 2019 representing
another year of record annual cash flow from operations of
$550 million. We are also pleased
that our strong cash flow performance and outlook were recognized
by S&P Global Ratings with its recent public debt ratings
upgrade. We expect to generate a new record level of cash flow from
operations in 2020 and enter the new year with our balance sheet in
excellent shape, with ample liquidity and comfortable leverage
metrics. This capital structure enables us to take advantage of the
various growth opportunities our markets afford us and to maximize
shareholder value."
Based on the information available today, the Company is
providing both first quarter and full year 2020 guidance. The
Company currently expects full-year 2020 revenue will approximate
$8.0 billion, another record level.
2020 full year GAAP net income and diluted earnings per share are
expected to approximate record levels at $397 million and $5.19, respectively. Full year 2020 non-GAAP
measures, including adjusted EBITDA and adjusted diluted earnings
per share, represent record levels, with adjusted EBITDA expected
to approximate $900 million, or 11.3%
of revenue, and adjusted diluted earnings per share expected to be
$5.63. As noted in the supplemental
schedules of this release, effective in the first quarter of 2020,
the Company will exclude the amortization of identified intangible
assets for all of the Company's acquisitions in calculating
adjusted net income and adjusted diluted earnings per share for all
presented periods. We believe that this adjustment is common
practice due to the non-cash and non-operational nature of these
purchase accounting related charges and will make our presentation
more comparable to our largest public peer.
For the first quarter of 2020, the Company expects revenue of
approximately $1.3 billion. First
quarter 2020 GAAP net income is expected to approximate
$29 million, with GAAP diluted
earnings per share expected to be $0.38. First quarter 2020 adjusted EBITDA, a
non-GAAP measure, is expected to approximate $108 million or 8.3% of revenue, with adjusted
diluted earnings per share, a non-GAAP measure, expected to be
$0.48.
Management will hold a conference call to discuss these results
on Friday, February 28, 2020 at
9:00 a.m. Eastern Time. The call-in
number for the conference call is (323) 794-2094 or (800) 263-0877
and the replay phone number is (719) 457-0820 with a pass code of
9606087. The replay will be available for 30 days. Additionally,
the call will be broadcast live over the Internet and can be
accessed and replayed through the Investors section of the
Company's website at www.mastec.com.
The following tables set forth the financial results for the
periods ended December 31, 2019 and
2018:
Consolidated
Statements of Operations
(unaudited - in
thousands, except per share amounts)
|
|
|
|
|
|
For the Three Months
Ended
December 31,
|
|
For the Years
Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenue
|
$
|
1,709,224
|
|
|
$
|
1,917,552
|
|
|
$
|
7,183,188
|
|
|
$
|
6,909,417
|
|
Costs of revenue,
excluding depreciation and amortization
|
1,434,238
|
|
|
1,653,987
|
|
|
6,070,244
|
|
|
5,939,308
|
|
Depreciation and
amortization
|
61,312
|
|
|
56,452
|
|
|
235,482
|
|
|
212,930
|
|
Goodwill and
intangible asset impairment
|
3,319
|
|
|
47,662
|
|
|
3,319
|
|
|
47,662
|
|
General and
administrative expenses
|
78,919
|
|
|
75,743
|
|
|
299,500
|
|
|
287,278
|
|
Interest expense,
net
|
18,848
|
|
|
22,388
|
|
|
77,026
|
|
|
82,571
|
|
Equity in earnings of
unconsolidated affiliates
|
(7,590)
|
|
|
(4,775)
|
|
|
(27,367)
|
|
|
(23,855)
|
|
Other (income)
expense, net
|
(2,277)
|
|
|
197
|
|
|
14,045
|
|
|
(1,780)
|
|
Income before income
taxes
|
$
|
122,455
|
|
|
$
|
65,898
|
|
|
$
|
510,939
|
|
|
$
|
365,303
|
|
Provision for income
taxes
|
(21,771)
|
|
|
(34,074)
|
|
|
(116,843)
|
|
|
(106,072)
|
|
Net
income
|
$
|
100,684
|
|
|
$
|
31,824
|
|
|
$
|
394,096
|
|
|
$
|
259,231
|
|
Net (loss) income
attributable to non-controlling interests
|
(232)
|
|
|
(117)
|
|
|
1,762
|
|
|
(428)
|
|
Net income
attributable to MasTec, Inc.
|
$
|
100,916
|
|
|
$
|
31,941
|
|
|
$
|
392,334
|
|
|
$
|
259,659
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
1.34
|
|
|
$
|
0.42
|
|
|
$
|
5.22
|
|
|
$
|
3.30
|
|
Basic weighted
average common shares outstanding
|
75,344
|
|
|
76,604
|
|
|
75,185
|
|
|
78,695
|
|
Diluted earnings per
share
|
$
|
1.33
|
|
|
$
|
0.41
|
|
|
$
|
5.17
|
|
|
$
|
3.26
|
|
Diluted weighted
average common shares outstanding
|
76,067
|
|
|
77,663
|
|
|
75,846
|
|
|
79,772
|
|
Consolidated
Balance Sheets
(unaudited - in
thousands)
|
|
|
|
|
|
December 31,
2019
|
|
December 31,
2018
|
Assets
|
|
|
|
Current
assets
|
$
|
2,173,559
|
|
|
$
|
2,168,989
|
|
Property and
equipment, net
|
905,835
|
|
|
747,808
|
|
Operating lease
assets
|
229,903
|
|
|
—
|
|
Goodwill and other
intangible assets, net
|
1,432,968
|
|
|
1,269,720
|
|
Other long-term
assets
|
254,741
|
|
|
253,436
|
|
Total
assets
|
$
|
4,997,006
|
|
|
$
|
4,439,953
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Current
liabilities
|
$
|
1,219,126
|
|
|
$
|
1,283,611
|
|
Long-term debt,
including finance leases
|
1,314,030
|
|
|
1,324,223
|
|
Long-term operating
lease liabilities
|
154,553
|
|
|
—
|
|
Deferred income
taxes
|
296,326
|
|
|
263,687
|
|
Other long-term
liabilities
|
221,280
|
|
|
176,408
|
|
Total
equity
|
1,791,691
|
|
|
1,392,024
|
|
Total liabilities
and equity
|
$
|
4,997,006
|
|
|
$
|
4,439,953
|
|
Consolidated
Statements of Cash Flows
(unaudited - in
thousands)
|
|
|
|
For the Years Ended
December 31,
|
|
2019
|
|
2018
|
Net cash provided by
operating activities
|
$
|
550,278
|
|
|
$
|
529,956
|
|
Net cash used in
investing activities
|
(261,823)
|
|
|
(181,799)
|
|
Net cash used in
financing activities
|
(244,631)
|
|
|
(361,094)
|
|
Effect of currency
translation on cash
|
181
|
|
|
33
|
|
Net increase
(decrease) in cash and cash equivalents
|
44,005
|
|
|
(12,904)
|
|
Cash and cash
equivalents - beginning of period
|
$
|
27,422
|
|
|
$
|
40,326
|
|
Cash and cash
equivalents - end of period
|
$
|
71,427
|
|
|
$
|
27,422
|
|
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures
(unaudited - in
millions, except for percentages and per share amounts)
|
|
|
|
|
|
For the Three
Months
Ended December 31,
|
|
For the Years
Ended
December 31,
|
Segment
Information
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenue by
Reportable Segment
|
|
|
|
|
|
|
|
Communications
|
$
|
673.9
|
|
|
$
|
649.3
|
|
|
$
|
2,618.8
|
|
|
$
|
2,556.8
|
|
Oil and
Gas
|
586.7
|
|
|
947.1
|
|
|
3,117.2
|
|
|
3,288.7
|
|
Electrical
Transmission
|
115.6
|
|
|
99.7
|
|
|
413.9
|
|
|
397.3
|
|
Power Generation and
Industrial
|
333.0
|
|
|
221.7
|
|
|
1,034.3
|
|
|
665.0
|
|
Other
|
0.1
|
|
|
(0.2)
|
|
|
0.2
|
|
|
3.5
|
|
Eliminations
|
(0.1)
|
|
|
(0.0)
|
|
|
(1.2)
|
|
|
(1.9)
|
|
Corporate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Consolidated
revenue
|
$
|
1,709.2
|
|
|
$
|
1,917.6
|
|
|
$
|
7,183.2
|
|
|
$
|
6,909.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months
Ended December 31,
|
|
For the Years
Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Adjusted EBITDA by
Reportable Segment
|
|
|
|
|
|
|
|
EBITDA
|
$
|
202.6
|
|
|
$
|
144.7
|
|
|
$
|
823.4
|
|
|
$
|
660.8
|
|
Non-cash stock-based
compensation expense
|
4.3
|
|
|
3.4
|
|
|
16.4
|
|
|
13.5
|
|
Goodwill and
intangible asset impairment
|
3.3
|
|
|
47.7
|
|
|
3.3
|
|
|
47.7
|
|
Project results from
non-controlled joint venture
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.0)
|
|
Adjusted
EBITDA
|
$
|
210.2
|
|
|
$
|
195.8
|
|
|
$
|
843.2
|
|
|
$
|
721.0
|
|
Reportable
Segment:
|
|
|
|
|
|
|
|
Communications
|
$
|
54.0
|
|
|
$
|
59.8
|
|
|
$
|
208.8
|
|
|
$
|
290.4
|
|
Oil and
Gas
|
134.7
|
|
|
140.1
|
|
|
634.2
|
|
|
451.6
|
|
Electrical
Transmission
|
9.2
|
|
|
5.5
|
|
|
29.5
|
|
|
10.5
|
|
Power Generation and
Industrial
|
25.7
|
|
|
16.1
|
|
|
40.1
|
|
|
40.4
|
|
Other
|
7.1
|
|
|
4.7
|
|
|
26.5
|
|
|
23.4
|
|
Corporate
|
(20.5)
|
|
|
(30.4)
|
|
|
(95.9)
|
|
|
(95.3)
|
|
Adjusted
EBITDA
|
$
|
210.2
|
|
|
$
|
195.8
|
|
|
$
|
843.2
|
|
|
$
|
721.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months
Ended December 31,
|
|
For the Years
Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Adjusted EBITDA
Margin by Reportable Segment
|
|
|
|
|
|
|
|
EBITDA
Margin
|
11.9
|
%
|
|
7.5
|
%
|
|
11.5
|
%
|
|
9.6
|
%
|
Non-cash stock-based
compensation expense
|
0.3
|
%
|
|
0.2
|
%
|
|
0.2
|
%
|
|
0.2
|
%
|
Goodwill and
intangible asset impairment
|
0.2
|
%
|
|
2.5
|
%
|
|
0.0
|
%
|
|
0.7
|
%
|
Project results from
non-controlled joint venture
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
(0.0)
|
%
|
Adjusted EBITDA
margin
|
12.3
|
%
|
|
10.2
|
%
|
|
11.7
|
%
|
|
10.4
|
%
|
Reportable
Segment:
|
|
|
|
|
|
|
|
Communications
|
8.0
|
%
|
|
9.2
|
%
|
|
8.0
|
%
|
|
11.4
|
%
|
Oil and
Gas
|
23.0
|
%
|
|
14.8
|
%
|
|
20.3
|
%
|
|
13.7
|
%
|
Electrical
Transmission
|
8.0
|
%
|
|
5.6
|
%
|
|
7.1
|
%
|
|
2.6
|
%
|
Power Generation and
Industrial
|
7.7
|
%
|
|
7.3
|
%
|
|
3.9
|
%
|
|
6.1
|
%
|
Other
|
NM
|
|
|
NM
|
|
|
NM
|
|
|
661.5
|
%
|
Corporate
|
NA
|
|
|
NA
|
|
|
NA
|
|
|
NA
|
|
Adjusted EBITDA
margin
|
12.3
|
%
|
|
10.2
|
%
|
|
11.7
|
%
|
|
10.4
|
%
|
NM - Percentage is
not meaningful
|
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures
(unaudited - in
millions, except for percentages and per share amounts)
|
|
|
|
|
|
For the Three
Months
Ended December 31,
|
|
For the Years
Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
EBITDA and
Adjusted EBITDA Reconciliation
|
|
|
|
|
|
|
|
Net
income
|
$
|
100.7
|
|
|
$
|
31.8
|
|
|
$
|
394.1
|
|
|
$
|
259.2
|
|
Interest expense,
net
|
18.8
|
|
|
22.4
|
|
|
77.0
|
|
|
82.6
|
|
Provision for income
taxes
|
21.8
|
|
|
34.1
|
|
|
116.8
|
|
|
106.1
|
|
Depreciation and
amortization
|
61.3
|
|
|
56.5
|
|
|
235.5
|
|
|
212.9
|
|
EBITDA
|
$
|
202.6
|
|
|
$
|
144.7
|
|
|
$
|
823.4
|
|
|
$
|
660.8
|
|
Non-cash stock-based
compensation expense
|
4.3
|
|
|
3.4
|
|
|
16.4
|
|
|
13.5
|
|
Goodwill and
intangible asset impairment
|
3.3
|
|
|
47.7
|
|
|
3.3
|
|
|
47.7
|
|
Project results from
non-controlled joint venture
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.0)
|
|
Adjusted
EBITDA
|
$
|
210.2
|
|
|
$
|
195.8
|
|
|
$
|
843.2
|
|
|
$
|
721.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months
Ended December 31,
|
|
For the Years
Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
EBITDA and
Adjusted EBITDA Margin Reconciliation
|
|
|
|
|
|
|
|
Net
income
|
5.9
|
%
|
|
1.7
|
%
|
|
5.5
|
%
|
|
3.8
|
%
|
Interest expense,
net
|
1.1
|
%
|
|
1.2
|
%
|
|
1.1
|
%
|
|
1.2
|
%
|
Provision for income
taxes
|
1.3
|
%
|
|
1.8
|
%
|
|
1.6
|
%
|
|
1.5
|
%
|
Depreciation and
amortization
|
3.6
|
%
|
|
2.9
|
%
|
|
3.3
|
%
|
|
3.1
|
%
|
EBITDA
margin
|
11.9
|
%
|
|
7.5
|
%
|
|
11.5
|
%
|
|
9.6
|
%
|
Non-cash stock-based
compensation expense
|
0.3
|
%
|
|
0.2
|
%
|
|
0.2
|
%
|
|
0.2
|
%
|
Goodwill and
intangible asset impairment
|
0.2
|
%
|
|
2.5
|
%
|
|
0.0
|
%
|
|
0.7
|
%
|
Project results from
non-controlled joint venture
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
(0.0)
|
%
|
Adjusted EBITDA
margin
|
12.3
|
%
|
|
10.2
|
%
|
|
11.7
|
%
|
|
10.4
|
%
|
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures
(unaudited - in
millions, except for percentages and per share amounts)
|
|
|
|
|
|
For the Three
Months
Ended December 31, 2019
|
|
For the Year
Ended
December 31, 2019
|
Adjusted Net
Income Reconciliation
|
|
|
|
Net
income
|
$
|
100.7
|
|
|
$
|
394.1
|
|
Non-cash stock-based
compensation expense
|
4.3
|
|
|
16.4
|
|
Goodwill and
intangible asset impairment
|
3.3
|
|
|
3.3
|
|
Income tax effect of
adjustments (a)
|
(3.6)
|
|
|
(8.8)
|
|
Statutory tax rate
effects (b)
|
(5.9)
|
|
|
(7.8)
|
|
Adjusted net
income
|
$
|
98.8
|
|
|
$
|
397.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months
Ended December 31, 2019
|
|
For the Year
Ended
December 31, 2019
|
Adjusted Diluted
Earnings per Share Reconciliation
|
|
|
|
Diluted earnings
per share
|
$
|
1.33
|
|
|
$
|
5.17
|
|
Non-cash stock-based
compensation expense
|
0.06
|
|
|
0.22
|
|
Goodwill and
intangible asset impairment
|
0.04
|
|
|
0.04
|
|
Income tax effect of
adjustments (a)
|
(0.05)
|
|
|
(0.12)
|
|
Statutory tax rate
effects (b)
|
(0.08)
|
|
|
(0.10)
|
|
Adjusted diluted
earnings per share
|
$
|
1.30
|
|
|
$
|
5.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months
Ended December 31, 2018
|
|
For the Year
Ended
December 31, 2018
|
Adjusted Net
Income Reconciliation
|
|
|
|
Net
income
|
$
|
31.8
|
|
|
$
|
259.2
|
|
Non-cash stock-based
compensation expense
|
3.4
|
|
|
13.5
|
|
Goodwill and
intangible asset impairment
|
47.7
|
|
|
47.7
|
|
Project results from
non-controlled joint venture
|
—
|
|
|
(1.0)
|
|
Income tax effect of
adjustments (a)
|
(3.5)
|
|
|
(6.0)
|
|
Statutory tax rate
effects (b)
|
3.7
|
|
|
(12.8)
|
|
Adjusted net
income
|
$
|
83.1
|
|
|
$
|
300.6
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months
Ended December 31, 2018
|
|
For the Year
Ended
December 31, 2018
|
Adjusted Diluted
Earnings per Share Reconciliation
|
|
|
|
Diluted earnings
per share
|
$
|
0.41
|
|
|
$
|
3.26
|
|
Non-cash stock-based
compensation expense
|
0.04
|
|
|
0.17
|
|
Goodwill and
intangible asset impairment
|
0.61
|
|
|
0.60
|
|
Project results from
non-controlled joint venture
|
—
|
|
|
(0.01)
|
|
Income tax effect of
adjustments (a)
|
(0.04)
|
|
|
(0.08)
|
|
Statutory tax rate
effects (b)
|
0.05
|
|
|
(0.16)
|
|
Adjusted diluted
earnings per share
|
$
|
1.07
|
|
|
$
|
3.77
|
|
(a) Represents the
tax effect of the adjusted items that are subject to tax, including
the tax effects of non-cash stock-based compensation expense.
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 effect on
pre-tax income.
|
|
(b) For the year
ended December 31, 2019, includes the effects of Canadian
provincial statutory tax rates, as well as changes in state tax
rates, and for the year ended December 31, 2018, includes the
effects of the 2017 Tax Act.
|
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures
(unaudited - in
millions)
|
|
|
|
For the Year
Ended
December 31, 2019
|
Free Cash Flow
Compared to Adjusted Net Income
|
|
Adjusted net
income
|
$
|
397.2
|
|
Net cash provided by
operating activities
|
550.3
|
|
Less cash capital
expenditures
|
(126.5)
|
|
Add proceeds on sale
of fixed assets
|
35.0
|
|
Free cash
flow
|
$
|
458.8
|
|
Free cash flow
excess compared to adjusted net income
|
$
|
61.6
|
|
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures
(unaudited - in
millions, except for percentages and per share amounts)
|
|
|
|
|
|
Guidance for the
Three
Months Ended March 31,
2020 Est.
|
|
For the Three
Months
Ended March 31, 2019
|
EBITDA and
Adjusted EBITDA Reconciliation
|
|
|
|
Net
income
|
$
|
29
|
|
|
$
|
43.1
|
|
Interest expense,
net
|
18
|
|
|
22.3
|
|
Provision for income
taxes
|
(4)
|
|
|
12.0
|
|
Depreciation and
amortization
|
60
|
|
|
59.0
|
|
EBITDA
|
$
|
103
|
|
|
$
|
136.4
|
|
Non-cash stock-based
compensation expense
|
5
|
|
|
3.7
|
|
Adjusted
EBITDA
|
$
|
108
|
|
|
$
|
140.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guidance for the
Three
Months Ended March 31,
2020 Est.
|
|
For the Three
Months
Ended March 31, 2019
|
EBITDA and
Adjusted EBITDA Margin Reconciliation
|
|
|
|
Net
income
|
2.2
|
%
|
|
2.8
|
%
|
Interest expense,
net
|
1.4
|
%
|
|
1.5
|
%
|
Provision for income
taxes
|
(0.3)
|
%
|
|
0.8
|
%
|
Depreciation and
amortization
|
4.6
|
%
|
|
3.9
|
%
|
EBITDA
margin
|
7.9
|
%
|
|
9.0
|
%
|
Non-cash stock-based
compensation expense
|
0.4
|
%
|
|
0.2
|
%
|
Adjusted EBITDA
margin
|
8.3
|
%
|
|
9.2
|
%
|
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures
(unaudited - in
millions, except for percentages and per share amounts)
|
|
|
|
|
|
Guidance for the
Three
Months Ended March 31,
2020 Est.
|
|
For the Three
Months
Ended March 31, 2019 (b)
|
Adjusted Net
Income Reconciliation
|
|
|
|
Net
income
|
$
|
29
|
|
|
$
|
43.1
|
|
Non-cash stock-based
compensation expense
|
5
|
|
|
3.7
|
|
Income
tax effect of adjustments (a)
|
(1)
|
|
|
(3.2)
|
|
Adjusted net income,
including intangible asset amortization expense
|
$
|
32
|
|
|
$
|
43.6
|
|
Intangible asset
amortization expense, net of tax effect
|
|
4
|
|
|
|
3.6
|
|
Adjusted net
income, excluding intangible asset amortization expense, net of tax
effect
|
$
|
37
|
|
|
$
|
47.2
|
|
|
|
|
|
|
|
|
|
|
Guidance for the
Three
Months Ended March 31,
2020 Est.
|
|
For the Three
Months
Ended March 31, 2019 (b)
|
Adjusted Diluted
Earnings per Share Reconciliation
|
|
|
|
Diluted earnings
per share
|
$
|
0.38
|
|
|
$
|
0.57
|
|
Non-cash stock-based
compensation expense
|
0.06
|
|
|
0.05
|
|
Income
tax effect of adjustments (a)
|
(0.02)
|
|
|
(0.04)
|
|
Adjusted diluted
earnings per share, including intangible asset amortization
expense
|
$
|
0.42
|
|
|
$
|
0.58
|
|
Intangible asset
amortization expense, net of tax effect
|
|
0.06
|
|
|
|
0.04
|
|
Adjusted diluted
earnings per share, excluding intangible asset amortization
expense, net of tax effect
|
$
|
0.48
|
|
|
$
|
0.62
|
|
(a) Represents the
tax effect of the adjusted items that are subject to tax, including
the tax effects of non-cash stock-based compensation expense.
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 effect on
pre-tax income.
|
|
(b) Certain prior
year amounts have been reclassified to conform with the 2020 period
presentation.
|
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures
(unaudited - in
millions, except for percentages and per share amounts)
|
|
|
|
|
|
|
|
Guidance for
the
Year Ended
December 31,
2020 Est.
|
|
For the Year
Ended December
31, 2019
|
|
For the Year
Ended December
31, 2018
|
EBITDA and
Adjusted EBITDA Reconciliation
|
|
|
|
|
|
Net
income
|
$
|
397
|
|
|
$
|
394.1
|
|
|
$
|
259.2
|
|
Interest expense,
net
|
75
|
|
|
77.0
|
|
|
82.6
|
|
Provision for income
taxes
|
126
|
|
|
116.8
|
|
|
106.1
|
|
Depreciation and
amortization
|
281
|
|
|
235.5
|
|
|
212.9
|
|
EBITDA
|
$
|
880
|
|
|
$
|
823.4
|
|
|
$
|
660.8
|
|
Non-cash stock-based
compensation expense
|
20
|
|
|
16.4
|
|
|
13.5
|
|
Goodwill and
intangible asset impairment
|
—
|
|
|
3.3
|
|
|
47.7
|
|
Project results from
non-controlled joint venture
|
—
|
|
|
—
|
|
|
(1.0)
|
|
Adjusted
EBITDA
|
$
|
900
|
|
|
$
|
843.2
|
|
|
$
|
721.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guidance for
the
Year Ended
December 31,
2020 Est.
|
|
For the Year
Ended December
31, 2019
|
|
For the Year
Ended December
31, 2018
|
EBITDA and
Adjusted EBITDA Margin Reconciliation
|
|
|
|
|
|
Net
income
|
5.0
|
%
|
|
5.5
|
%
|
|
3.8
|
%
|
Interest expense,
net
|
0.9
|
%
|
|
1.1
|
%
|
|
1.2
|
%
|
Provision for income
taxes
|
1.6
|
%
|
|
1.6
|
%
|
|
1.5
|
%
|
Depreciation and
amortization
|
3.5
|
%
|
|
3.3
|
%
|
|
3.1
|
%
|
EBITDA
margin
|
11.0
|
%
|
|
11.5
|
%
|
|
9.6
|
%
|
Non-cash stock-based
compensation expense
|
0.3
|
%
|
|
0.2
|
%
|
|
0.2
|
%
|
Goodwill and
intangible asset impairment
|
—
|
%
|
|
0.0
|
%
|
|
0.7
|
%
|
Project results from
non-controlled joint venture
|
—
|
%
|
|
—
|
%
|
|
(0.0)
|
%
|
Adjusted EBITDA
margin
|
11.3
|
%
|
|
11.7
|
%
|
|
10.4
|
%
|
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures
(unaudited - in
millions, except for percentages and per share amounts)
|
|
|
|
|
|
|
|
Guidance for
the
Year Ended
December 31,
2020 Est.
|
|
For the Year
Ended December
31, 2019 (c)
|
|
For the Year
Ended December
31, 2018 (c)
|
Adjusted Net
Income Reconciliation
|
|
|
|
|
|
Net
income
|
$
|
397
|
|
|
$
|
394.1
|
|
|
$
|
259.2
|
|
Non-cash stock-based
compensation expense
|
20
|
|
|
16.4
|
|
|
13.5
|
|
Goodwill and
intangible asset impairment
|
—
|
|
|
3.3
|
|
|
47.7
|
|
Project results from
non-controlled joint venture
|
—
|
|
|
—
|
|
|
(1.0)
|
|
Income
tax effect of adjustments (a)
|
(5)
|
|
|
(8.8)
|
|
|
(6.0)
|
|
Statutory tax rate
effects (b)
|
—
|
|
|
(7.8)
|
|
|
(12.8)
|
|
Adjusted net income,
including intangible asset amortization expense
|
$
|
413
|
|
|
$
|
397.2
|
|
|
$
|
300.6
|
|
Intangible asset
amortization expense, net of tax effect
|
|
18
|
|
|
|
17.2
|
|
|
|
16.1
|
|
Adjusted net
income, excluding intangible asset amortization expense, net of tax
effect
|
$
|
431
|
|
|
$
|
414.4
|
|
|
$
|
316.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guidance for
the
Year Ended
December 31,
2020 Est.
|
|
For the Year
Ended December
31, 2019 (c)
|
|
For the Year
Ended December
31, 2018 (c)
|
Adjusted Diluted
Earnings per Share Reconciliation
|
|
|
|
|
|
Diluted earnings
per share
|
$
|
5.19
|
|
|
$
|
5.17
|
|
|
$
|
3.26
|
|
Non-cash stock-based
compensation expense
|
0.27
|
|
|
0.22
|
|
|
0.17
|
|
Goodwill and
intangible asset impairment
|
—
|
|
|
0.04
|
|
|
0.60
|
|
Project results from
non-controlled joint venture
|
—
|
|
|
—
|
|
|
(0.01)
|
|
Income
tax effect of adjustments (a)
|
(0.06)
|
|
|
(0.12)
|
|
|
(0.08)
|
|
Statutory tax rate
effects (b)
|
—
|
|
|
(0.10)
|
|
|
(0.16)
|
|
Adjusted diluted
earnings per share, including intangible asset amortization
expense
|
$
|
5.40
|
|
|
$
|
5.21
|
|
|
$
|
3.77
|
|
Intangible asset
amortization expense, net of tax effect
|
|
0.23
|
|
|
|
0.23
|
|
|
|
0.20
|
|
Adjusted diluted
earnings per share, excluding intangible asset amortization
expense, net of tax effect
|
$
|
5.63
|
|
|
$
|
5.44
|
|
|
$
|
3.97
|
|
(a) Represents the
tax effect of the adjusted items that are subject to tax, including
the tax effects of non-cash stock-based compensation expense.
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 effect on
pre-tax income.
|
|
(b) For the year
ended December 31, 2019, includes the effects of Canadian
provincial statutory tax rates, as well as changes in state tax
rates, and for the year ended December 31, 2018, includes the
effects of the 2017 Tax Act.
|
|
(c) Certain prior
year amounts have been reclassified to conform with the 2020 period
presentation.
|
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 and utility and
other infrastructure, such as: wireless, wireline/fiber, and
customer fulfillment activities; petroleum and natural gas pipeline
infrastructure; electrical utility transmission and distribution;
power generation; heavy civil, and industrial infrastructure.
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 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 market conditions, technological developments, regulatory
changes or other governmental policy uncertainty that affects us or
our customers' industries; 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 potential
adverse effects of public health issues, such as the coronavirus
outbreak on economic activity generally, commodity price
fluctuations, the availability and cost of financing, and customer
consolidation in the industries we serve; activity in the oil and
gas, utility and power generation industries and the impact on our
customers' expenditure levels caused by fluctuations in prices of
oil, natural gas, electricity and other energy sources; 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; 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, 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; risks related to completed or potential
acquisitions, including our ability to identify suitable
acquisition or strategic investment opportunities, to integrate
acquired businesses within expected timeframes and to achieve the
revenue, cost savings and earnings levels from such acquisitions at
or above the levels projected, including the risk of potential
asset impairment charges and write- downs of goodwill; 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; risks related to our strategic
arrangements, including our equity investments; any exposure
resulting from system or information technology interruptions or
data security breaches; any material changes in estimates for legal
costs or case settlements or adverse determinations on any claim,
lawsuit or proceeding; the effect of state and federal regulatory
initiatives, including costs of compliance with existing and
potential future safety and environmental requirements, including
with respect to climate change; the effect of federal, local,
state, foreign or tax legislation and other regulations affecting
the industries we serve and related projects and expenditures; the
adequacy of our insurance, legal and other reserves; the outcome of
our plans for future operations, growth and services, including
business development efforts, backlog, acquisitions and
dispositions; our ability to maintain a workforce based upon
current and anticipated workloads; our ability to attract and
retain qualified personnel, key management and skilled employees,
including from acquired businesses, and our ability to enforce any
noncompetition agreements; fluctuations in fuel, maintenance,
materials, labor and other costs; risks related to our operations
that employ a unionized workforce, including labor availability,
productivity and relations, as well as risks associated with
multi-employer 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; restrictions imposed by our credit facility, senior
notes, and any future loans or securities; our ability to obtain
performance and surety bonds; a small number of our existing
shareholders have the ability to influence major corporate
decisions; 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 consideration
for earn-out obligations or as purchase consideration in connection
with past or future acquisitions, or as a result of other stock
issuances; 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.
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SOURCE MasTec, Inc.