CORAL GABLES, Fla.,
March 19, 2020 /PRNewswire/ --
MasTec, Inc. (NYSE: MTZ) today announced that its Board of
Directors has authorized the repurchase of up to $150 million of MasTec common stock. This
authorization is in addition to $129
million in open share repurchase authorization plans as of
December 31, 2019, under which to
date, MasTec has completed share repurchases approximating
$110 million during the first quarter
of 2020.
José Mas, MasTec's CEO, commented, "During
this challenging and unprecedented period, I'd first like to thank
the men and women of MasTec who are tirelessly working to make sure
our customers are well served. I am also proud of their efforts as
millions of families throughout the U.S. rely on the power,
communications, entertainment and other services we help our
customers provide."
Mr. Mas continued, "We are focused on
managing our capital structure and maintaining a strong balance
sheet, which in periods like these gives us a significant
competitive advantage. We expect share repurchases made during the
first quarter will be funded by first quarter cash flow from
operations and we currently anticipate ending the first quarter
with ample liquidity approximating $900
million dollars. This new authorization will allow us to
continue being opportunistic relative to share buybacks. We will
monitor current conditions and act prudently, however, we believe
this period offers a significant and unique opportunity to create
value for our shareholders. We are optimistic that our diversified
business model provides us fundamental long-term opportunities for
growth as we build and maintain the nation's critical
infrastructure."
The new additional authorization does not obligate MasTec to
repurchase any particular amount of common stock during any period
and the program may be modified or suspended at any time at the
Company's discretion. Stock repurchases may be made from time to
time and the actual amount repurchased will depend on a variety of
factors including market conditions, regulatory and legal
requirements, cash flow and liquidity needs and other factors. The
stock repurchases may be made in both open market and privately
negotiated transactions, and may include the use of derivative
contracts, structured share repurchase agreements and Rule 10b5-1
and Rule 10b-18 trading plans.
Repurchases would be funded from cash on hand and availability
under the Company's revolving credit facility. Liquidity is
defined as cash on hand and borrowing capacity under our revolving
credit facility.
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
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, our customers and our
operations, 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.