2009 Revenue Increased 18% 2009 EBITDA Increased 39% 2009 Cash Flow
from Operations Doubled Fourth Quarter Revenue Increased 20% Fourth
Quarter EBITDA Increased 55% CORAL GABLES, fla., Feb. 24
/PRNewswire-FirstCall/ -- MasTec, Inc. (NYSE: MTZ) today announced
record fourth quarter and 2009 revenue and net income. "We had an
excellent fourth quarter and an excellent year despite a very
difficult economy. We set new records in revenue and earnings while
improving margins and increasing cash flow, all evidence of the
benefits of our diversified business model," declared MasTec's CEO,
Jose Mas. Revenue for the quarter ended December 31, 2009 was $496
million and net income was $18.2 million compared with revenue of
$414 million and net income of $18.2 million for the prior year
quarter. Fourth quarter EBITDA increased 55% to $50 million,
compared with $33 million in the fourth quarter of 2008. GAAP fully
diluted earnings per share were $0.22 per diluted share for the
fourth quarter of 2009 compared with $0.26 per diluted share for
the prior year quarter. It should be noted that net income for the
fourth quarter of 2009 was burdened by a 29% book tax rate compared
to a 2% book tax rate for the fourth quarter of 2008. The
quarter-over-quarter increase in mostly non-cash book tax expense
was $7 million, or $0.08 per diluted share. The Company has $121
million in Federal tax net operating losses, or NOLs, to utilize
against most cash tax obligations. Also, the fourth quarter of 2009
included an increase in amortization of acquisition intangibles
which had a $5 million, or $0.03 per diluted share, negative impact
on earnings compared to the same quarter a year ago. For 2009,
revenue was up 18% to $1.6 billion and net income was up 8% to
$70.7 million, both record results. EBITDA was up 39% to $153
million. For the year, GAAP fully diluted earnings per share were
$0.90 per diluted share, compared to $0.96 per diluted share in
2008. Again, it should be noted that net income for 2009 was
burdened by an 11% book tax rate compared to a 1% book tax rate for
2008. The year-over-year increase in mostly non-cash book tax
expense was $7.5 million, or $0.09 per diluted share. Also, 2009
included an increase in amortization of acquisition intangibles
which had a $9 million, or $0.07 per diluted share, negative impact
on earnings compared to 2008. Mr. Mas concluded, "In addition to
achieving strong financial results in 2009, through the acquisition
of Precision Pipeline and our continued growth, we solidified
MasTec's position in the markets we serve. Spending for domestic
energy, in both natural gas and renewables, is expected to increase
as is wireless infrastructure spending by our communications
customers. MasTec has never been in a better position to exploit
these growth opportunities." Bob Campbell, MasTec's Executive Vice
President and Chief Financial Officer noted, "We have maintained a
strong financial position and thus are able to take full advantage
of the growth opportunities in our markets. Cash flow and liquidity
are in excellent shape. 2009 Net cash provided by operating
activities of $124 million was more than double the prior year.
Liquidity, defined as unrestricted cash and availability under the
Company's credit facility, was $160 million at December 31, 2009,
compared with $111 million at the end of last year. With no
significant debt maturities until 2013 and beyond, we have a solid
balance sheet and capital structure and we are well positioned to
expand service to our customers in our growth markets." Today, the
Company is issuing both first quarter and annual 2010 guidance.
Even though we expect to pay only modest cash taxes for 2010
because of our NOLs, our guidance for 2010 GAAP earnings will
include an estimated 40.6% book tax rate compared to only 10.6% for
2009. Additionally, MasTec will have increased amortization of
intangibles and a higher share count due to two convertible debt
issuances. Since these changes make GAAP earnings comparisons
difficult, we are also providing supplemental non-GAAP EBITDA
guidance. All non-GAAP numbers are reconciled on the attached
tables. The Company currently expects 2010 revenue of approximately
$2.1 billion compared to $1.6 billion for 2009 and we expect 2010
EBITDA of $218 million to $223 million compared to $153 million for
2009. We expect 2010 GAAP fully diluted earnings per share of $0.92
to $0.95 compared to $0.90 for 2009. The 2010 guidance includes an
increase in the year-over-year book tax rate, resulting in a 43-45
cent reduction in GAAP earnings per share. Our business remains
seasonal, and with the acquisition of additional northern-based
businesses, our first quarter seasonality should be more pronounced
going forward. Furthermore, recent harsh weather across the entire
country, including areas typically not impacted by winter storms,
has reduced productivity and increased costs for the first quarter
of 2010. Finally, combined with our increased seasonality, we now
have higher costs for depreciation, amortization and interest and a
higher share count which will have a disproportionately negative
earnings impact in lower revenue quarters. As a result of these
factors, for the first quarter of 2010, the Company expects revenue
of approximately $420 million compared to $342 million a year ago.
We expect first quarter EBITDA of $30 million to $32 million and
GAAP fully diluted earnings per share of $0.07 to $0.08. The Q1
2010 negative impact of the change in year-over-year book tax rate
is a 6 cent reduction in earnings per share. The following tables
set forth the financial results for the periods ended December 31,
2009 and 2008: Condensed Consolidated Statements of Operations (In
thousands except per share amounts) Year Ended Three Months Ended
December 31, December 31, 2009 2008 2009 2008 ---- ---- ---- ----
Revenue $1,623,502 $1,378,663 $496,281 $413,883 Costs of revenue
1,376,125 1,179,190 421,911 354,725 Depreciation and amortization
49,539 28,465 17,392 9,020 General and administrative expenses
96,932 89,705 25,313 26,610 Interest expense, net of interest
income 24,690 14,758 7,379 4,644 Other (income) expense, net
(2,917) (927) (1,281) 7 ------ ---- ------ --- Income from
continuing operations before income taxes 79,133 67,472 25,567
18,877 Provision for Income taxes (8,385) (870) (7,384) (328)
------ ---- ------ ---- Income from continuing operations 70,748
66,602 18,183 18,549 Loss from discontinued operations, net - (814)
- (392) --- ---- ------ ---- Net Income $70,748 $65,788 $18,183
$18,157 ======= ======= ======= ======= Basic net income per share:
Continuing operations $0.93 $0.98 $0.24 $0.27 Discontinued
operations - (0.01) - (0.01) --- ----- --- ----- Total basic net
income per share $0.93 $0.97 $0.24 $0.26 ===== ===== ===== =====
Basic weighted average common shares outstanding 75,701 67,983
75,869 69,154 ====== ====== ====== ====== Diluted net income per
share: Continuing operations $0.90 $0.97 $0.22 $0.27 Discontinued
operations - (0.01) - (0.01) --- ----- --- ----- Total diluted net
income per share $0.90 $0.96 $0.22 $0.26 ===== ===== ===== =====
Diluted weighted average common shares outstanding 81,762 68,916
87,712 70,517 ====== ====== ====== ====== Condensed Consolidated
Balance Sheets (In thousands) December 31 -----------------------
2009 2008 ---- ---- Assets Current assets $525,807 $439,365
Property and equipment, net 198,812 158,013 Goodwill and other
intangibles, net 579,544 420,604 Deferred taxes, net - 25,165
Securities available for sale 24,511 20,580 Other assets 34,775
27,170 Total assets $1,363,449 $1,090,897 ========== ==========
Liabilities and Shareholders' Equity Current liabilities $322,784
$334,048 Deferred tax liability 49,275 - Long-term debt 409,923
287,454 Other liabilities 53,305 26,305 Shareholders' equity
528,162 443,090 ------- ------- Total liabilities and shareholders'
equity $1,363,449 $1,090,897 ========== ========== Condensed
Consolidated Statements of Cash Flows (In thousands) Years Ended
December 31, ------------------------ 2009 2008 ---- ---- Net cash
provided by operating activities $124,139 $58,182 Net cash used in
investing activities (176,024) (141,987) Net cash provided by
financing activities 93,277 56,988 ------ ------ Net increase in
cash and cash equivalents 41,392 (26,817) Net effect of translation
on cash (134) (208) Cash and cash equivalents--beginning of period
47,263 74,288 ------ ------ Cash and cash equivalents--end of
period $88,521 $47,263 ======= ======= Reconciliation of Non-GAAP
Disclosures-Unaudited (In thousands, except for percentages) Three
Months Ended Three Months Ended December 31, 2009 December 31, 2008
--------------------- --------------------- Percent of Percent of
EBITDA Reconciliation Total Revenue Total Revenue ----- ---------
----- ----------- GAAP Net income $18,183 3.7% $18,157 4.4% Loss
from discontinued operations - - 392 0.1% Interest, net 7,379 1.5%
4,644 1.1% Income taxes 7,384 1.5% 328 0.1% Depreciation and
amortization 17,392 3.5% 9,020 2.2% ------ --- ----- --- Earnings
before interest, taxes, depreciation and amortization (EBITDA)
$50,338 10.1% $32,541 7.9% ======= ==== ====== === Year Ended Year
Ended December 31, 2009 December 31, 2008 ---------------------
--------------------- Percent of Percent of EBITDA Reconciliation
Total Revenue Total Revenue ----- --------- ----- ----------- GAAP
Net income $70,748 4.4% $65,788 4.8% Loss from discontinued
operations - - 814 0.1% Interest, net 24,690 1.5% 14,758 1.1%
Income taxes 8,385 0.5% 870 0.1% Depreciation and amortization
49,539 3.1% 28,465 2.1% ------ --- ------ --- Earnings before
interest, taxes, depreciation and amortization (EBITDA) $153,362
9.4% $110,695 8.0% ======== === ======== === Three Months Ended
Three Months Ended March 31, 2010E March 31, 2009
--------------------- --------------------- Percent of Percent of
EBITDA Reconciliation Total Revenue Total Revenue ----- ---------
----- ----------- GAAP Net income $5,200-6,400 1.2-1.5% $11,929
3.5% Interest, net 7,400 1.8% 5,762 1.7% Income taxes 3,500-4,300
0.8-1.0% 101 0.0% Depreciation and amortization 13,900 3.3% 10,643
3.1% ------ --- ------ --- Earnings before interest, taxes,
depreciation and amortization (EBITDA) $30,000-32,000 7.1-7.6%
$28,435 8.3% ============== ======== ======= === Years Ended
--------------------------------- EBITDA Reconciliation 2010E 2009
2008 ----- ---- ---- GAAP Net Income $78,400-81,400 $70,748 $65,788
Loss from discontinued operations, net of taxes - - 814 Interest,
net 29,000 24,690 14,758 Income taxes 53,600-55,600 8,385 870
Amortization 13,000 12,940 3,658 Depreciation 44,000 36,599 24,807
------ ------ ------ Earnings from continuing operations before
interest, taxes, amortization and depreciation (EBITDA)
$218,000-223,000 $153,362 $110,695 ---------------- --------
-------- EBITDA margin 10.4-10.6% 9.4% 8.0% ================
======== ======== Tables may contain differences due to rounding.
The Company's senior management will hold a conference call to
discuss these results on Thursday, February 25, 2010 at 9:00 a.m.
Eastern time. The call-in number for the conference call is (913)
312-0824 and the replay number is (719) 457-0820, with a pass code
of 5695847. 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/. 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
communications infrastructure, including electrical utility
transmission and distribution, wind farms, solar farms, other
renewable energy and natural gas infrastructure, wireless,
wireline, satellite communication and water and sewer 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,
including 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
accurately estimate the costs associated with our fixed-price and
other contracts and performance on such projects; our ability to
replace non-recurring projects with new projects; our ability to
retain qualified personnel and key management, including from
acquired businesses, enforce any noncompetition agreements,
integrate acquired businesses within the expected timeframes and
achieve the revenue, cost savings and earnings levels from such
acquisitions 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 and related projects and expenditures; the
effect of state and federal regulatory initiatives, including costs
of compliance with existing and future environmental requirements;
our ability to attract and retain qualified managers and skilled
employees; trends in oil and natural gas prices; increases in fuel,
maintenance, materials, labor and other costs; the timing and
extent of fluctuations in geographic, weather, equipment and
operational factors affecting the industries in which we operate;
any material changes in estimates for legal costs or case
settlements or 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, including our largest customers, to terminate or reduce
the amount of work, or in some cases prices paid for services on
short or no notice under our contracts; the impact of any unionized
workforce on our operations, including labor availability and
relations; liabilities associated with multiemployer union pension
plans, including underfunding liabilities, for our operations that
employ unionized workers; any liquidity issues related to our
securities held for sale; 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, convertible notes and any future loans or securities; the
outcome of our plans for future operations, growth and services,
including business development efforts, backlog and acquisitions;
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 as a result of conversions of convertible notes or
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. 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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