CORAL GABLES, Fla.,
Nov. 2, 2017 /PRNewswire/
-- MasTec, Inc. (NYSE: MTZ) today announced strong third
quarter financial results and increased 2017 guidance.
- Record third quarter 2017 revenue was $1.96 billion, a 23% increase compared with
$1.59 billion for the same period
last year.
- Record third quarter 2017 GAAP net income increased 14% to
$64.2 million, or $0.77 per diluted share, compared to $56.5 million, or $0.69 per diluted share, in the third quarter of
2016.
- Record third quarter 2017 adjusted net income, adjusted diluted
earnings per share and adjusted EBITDA, all non-GAAP measures, were
as follows:
-
- Adjusted net income was $68.0
million, compared to $66.3
million in the same period of the prior year. Adjusted
diluted earnings per share was $0.82,
compared to $0.81 in the third
quarter of 2016.
- Adjusted EBITDA was $180 million,
compared to $165 million in the third
quarter of 2016.
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, "We had strong third quarter results
and are pleased to increase our full year 2017 annual guidance for
the third consecutive quarter. Since the end of the third quarter,
we have received significant amounts of project awards across
multiple segments and expect that our year end 2017 backlog will be
at record levels, exceeding $6
billion, with increasing demand and backlog growth
across all of our segments."
George Pita, MasTec's Executive
Vice President and Chief Financial Officer, noted, "We are proud of
our year-to-date performance, including strong cash flow from
operations. Our capital structure and ample liquidity give us full
financial flexibility to support the significant growth
opportunities that exist across the multiple end markets we
serve."
Based on the information available today, the Company is
increasing 2017 annual guidance, and providing fourth quarter
guidance. The Company currently estimates 2017 annual revenue of
approximately $6.3 billion. 2017
annual GAAP net income is expected to increase 60% over 2016 to
approximately $215 million with GAAP
diluted earnings per share expected to be $2.59, a 61% increase over 2016. 2017 annual
adjusted EBITDA, a non-GAAP measure, is expected to increase 32%
over 2016 to $630 million with
adjusted diluted earnings per share, a non-GAAP measure, expected
to be $2.80, a 47% increase over
2016.
For the fourth quarter of 2017, the Company expects revenue of
approximately $1.3 billion.
Fourth quarter 2017 GAAP net income is expected to approximate
$26 million with GAAP diluted
earnings per share expected to approximate $0.32. Fourth quarter 2017 adjusted EBITDA, a
non-GAAP measure, is expected to approximate $113 million with adjusted diluted earnings per
share, a non-GAAP measure, expected to approximate $0.36.
Management will hold a conference call to discuss these results
on Friday, November 3, 2017 at
9:00 a.m. Eastern Time. The
call-in number for the conference call is (719) 457-2617 and the
replay phone number is (719) 457-0820 with a pass code of
6754317. 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 September 30, 2017 and
2016:
|
Condensed
Unaudited Consolidated Statements of Operations
(In thousands,
except per share amounts)
|
|
|
For the Three
Months
Ended September 30,
|
|
For the Nine
Months
Ended September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
1,955,752
|
|
|
$
|
1,586,181
|
|
|
$
|
5,004,116
|
|
|
$
|
3,792,811
|
|
|
Costs of revenue,
excluding depreciation and amortization
|
1,726,173
|
|
|
1,368,988
|
|
|
4,323,642
|
|
|
3,321,571
|
|
|
Depreciation and
amortization
|
50,101
|
|
|
42,584
|
|
|
138,384
|
|
|
122,249
|
|
|
General and
administrative expenses
|
66,397
|
|
|
67,131
|
|
|
202,001
|
|
|
195,031
|
|
|
Interest expense,
net
|
17,578
|
|
|
13,097
|
|
|
44,966
|
|
|
37,895
|
|
|
Equity in (earnings)
losses of unconsolidated affiliates
|
(7,399)
|
|
|
6
|
|
|
(15,105)
|
|
|
(3,549)
|
|
|
Other income,
net
|
(4,677)
|
|
|
(971)
|
|
|
(4,102)
|
|
|
(12,803)
|
|
|
Income before income
taxes
|
$
|
107,579
|
|
|
$
|
95,346
|
|
|
$
|
314,330
|
|
|
$
|
132,417
|
|
|
Provision for income
taxes
|
(43,378)
|
|
|
(38,816)
|
|
|
(126,170)
|
|
|
(54,331)
|
|
|
Net
income
|
$
|
64,201
|
|
|
$
|
56,530
|
|
|
$
|
188,160
|
|
|
$
|
78,086
|
|
|
Net income
attributable to non-controlling interests
|
449
|
|
|
253
|
|
|
1,770
|
|
|
414
|
|
|
Net income
attributable to MasTec, Inc.
|
$
|
63,752
|
|
|
$
|
56,277
|
|
|
$
|
186,390
|
|
|
$
|
77,672
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.79
|
|
|
$
|
0.70
|
|
|
$
|
2.31
|
|
|
$
|
0.97
|
|
|
Basic weighted
average common shares outstanding
|
80,953
|
|
|
80,462
|
|
|
80,859
|
|
|
80,323
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
0.77
|
|
|
$
|
0.69
|
|
|
$
|
2.27
|
|
|
$
|
0.96
|
|
|
Diluted weighted
average common shares outstanding
|
82,386
|
|
|
81,545
|
|
|
82,281
|
|
|
81,241
|
|
|
Condensed
Unaudited Consolidated Balance Sheets
(In
thousands)
|
|
|
September 30,
2017
|
|
December 31,
2016
|
|
Assets
|
|
|
|
|
Current
assets
|
$
|
1,747,747
|
|
|
$
|
1,402,486
|
|
|
Property and
equipment, net
|
691,430
|
|
|
549,084
|
|
|
Goodwill and other
intangibles, net
|
1,330,904
|
|
|
1,175,585
|
|
|
Other long-term
assets
|
172,094
|
|
|
55,977
|
|
|
Total
assets
|
$
|
3,942,175
|
|
|
$
|
3,183,132
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
Current
liabilities
|
$
|
1,002,151
|
|
|
$
|
839,990
|
|
|
Long-term
debt
|
1,192,311
|
|
|
961,379
|
|
|
Deferred income
taxes
|
274,465
|
|
|
178,355
|
|
|
Other long-term
liabilities
|
170,203
|
|
|
99,774
|
|
|
Total
equity
|
|
1,303,045
|
|
|
|
1,103,634
|
|
|
Total liabilities
and equity
|
$
|
3,942,175
|
|
|
$
|
3,183,132
|
|
|
|
|
|
Condensed
Unaudited Consolidated Statements of Cash Flows
(In
thousands)
|
|
|
For the Nine
Months Ended September 30,
|
|
2017
|
|
2016
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
178,625
|
|
|
$
|
127,141
|
|
|
Net cash used in
investing activities
|
(249,429)
|
|
|
(94,061)
|
|
|
Net cash provided by
(used in) financing activities
|
75,622
|
|
|
(27,629)
|
|
|
Effect of currency
translation on cash
|
237
|
|
|
(1,008)
|
|
|
Net increase in cash
and cash equivalents
|
5,055
|
|
|
4,443
|
|
|
Cash and cash
equivalents - beginning of period
|
$
|
38,767
|
|
|
$
|
4,984
|
|
|
Cash and cash
equivalents - end of period
|
$
|
43,822
|
|
|
$
|
9,427
|
|
|
Supplemental
Disclosures and Reconciliation of Non-GAAP Disclosures -
Unaudited
(In millions, except
for percentages and per share amounts)
|
|
|
For the Three
Months
Ended September 30,
|
|
For the Nine
Months
September 30,
|
|
Segment
Information
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Revenue by
Reportable Segment
|
|
|
|
|
|
|
|
|
Communications
|
$
|
610.5
|
|
|
$
|
624.3
|
|
|
$
|
1,762.2
|
|
|
$
|
1,728.0
|
|
|
Oil and
Gas
|
1,161.0
|
|
|
736.0
|
|
|
2,757.2
|
|
|
1,454.3
|
|
|
Electrical
Transmission
|
81.8
|
|
|
101.7
|
|
|
277.3
|
|
|
283.6
|
|
|
Power Generation and
Industrial
|
96.9
|
|
|
123.6
|
|
|
204.1
|
|
|
324.7
|
|
|
Other
|
10.6
|
|
|
7.6
|
|
|
14.2
|
|
|
14.9
|
|
|
Eliminations
|
(5.0)
|
|
|
(7.0)
|
|
|
(10.9)
|
|
|
(12.7)
|
|
|
Corporate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Consolidated
revenue
|
$
|
1,955.8
|
|
|
$
|
1,586.2
|
|
|
$
|
5,004.1
|
|
|
$
|
3,792.8
|
|
|
|
For the Three
Months
Ended September 30,
|
|
For the Nine
Months
Ended September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
EBITDA
|
$
|
175.3
|
|
|
$
|
151.0
|
|
|
$
|
497.7
|
|
|
$
|
292.6
|
|
|
Non-cash stock-based
compensation expense
|
3.4
|
|
|
3.9
|
|
|
10.5
|
|
|
11.3
|
|
|
Restructuring
charges
|
—
|
|
|
4.7
|
|
|
0.6
|
|
|
13.8
|
|
|
Project results from
non-controlled joint venture
|
0.4
|
|
|
5.1
|
|
|
7.4
|
|
|
5.1
|
|
|
Charges (recoveries)
from multi-employer pension plan withdrawals
|
0.6
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
Adjusted
EBITDA
|
$
|
179.6
|
|
|
$
|
164.8
|
|
|
$
|
516.7
|
|
|
$
|
322.8
|
|
|
Adjusted EBITDA by
Reportable Segment
|
|
|
|
|
|
|
|
|
Communications
|
$
|
65.5
|
|
|
$
|
63.0
|
|
|
$
|
173.6
|
|
|
$
|
191.4
|
|
|
Oil and
Gas
|
108.1
|
|
|
118.0
|
|
|
356.1
|
|
|
194.1
|
|
|
Electrical
Transmission
|
4.5
|
|
|
(3.8)
|
|
|
11.8
|
|
|
(34.7)
|
|
|
Power Generation and
Industrial
|
9.3
|
|
|
6.1
|
|
|
14.8
|
|
|
13.9
|
|
|
Other
|
10.5
|
|
|
2.1
|
|
|
19.0
|
|
|
2.6
|
|
|
Corporate
|
(18.3)
|
|
|
(20.6)
|
|
|
(58.6)
|
|
|
(44.4)
|
|
|
Adjusted
EBITDA
|
$
|
179.6
|
|
|
$
|
164.8
|
|
|
$
|
516.7
|
|
|
$
|
322.8
|
|
|
|
For the Three
Months
Ended September 30,
|
|
For the Nine
Months
Ended September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
EBITDA
Margin
|
9.0
|
%
|
|
9.5
|
%
|
|
9.9
|
%
|
|
7.7
|
%
|
|
Non-cash stock-based
compensation expense
|
0.2
|
%
|
|
0.2
|
%
|
|
0.2
|
%
|
|
0.3
|
%
|
|
Restructuring
charges
|
—
|
%
|
|
0.3
|
%
|
|
0.0
|
%
|
|
0.4
|
%
|
|
Project results from
non-controlled joint venture
|
0.0
|
%
|
|
0.3
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
|
Charges (recoveries)
from multi-employer pension plan withdrawals
|
0.0
|
%
|
|
—
|
%
|
|
0.0
|
%
|
|
—
|
%
|
|
Adjusted EBITDA
margin
|
9.2
|
%
|
|
10.4
|
%
|
|
10.3
|
%
|
|
8.5
|
%
|
|
Adjusted EBITDA
Margin by Reportable Segment
|
|
|
|
|
|
|
|
|
Communications
|
10.7
|
%
|
|
10.1
|
%
|
|
9.9
|
%
|
|
11.1
|
%
|
|
Oil and
Gas
|
9.3
|
%
|
|
16.0
|
%
|
|
12.9
|
%
|
|
13.3
|
%
|
|
Electrical
Transmission
|
5.5
|
%
|
|
(3.7)
|
%
|
|
4.3
|
%
|
|
(12.2)
|
%
|
|
Power Generation and
Industrial
|
9.6
|
%
|
|
4.9
|
%
|
|
7.3
|
%
|
|
4.3
|
%
|
|
Other
|
98.9
|
%
|
|
27.2
|
%
|
|
133.3
|
%
|
|
17.2
|
%
|
|
Corporate
|
NA
|
|
|
NA
|
|
|
NA
|
|
|
NA
|
|
|
Adjusted EBITDA
margin
|
9.2
|
%
|
|
10.4
|
%
|
|
10.3
|
%
|
|
8.5
|
%
|
|
Supplemental
Disclosures and Reconciliation of Non-GAAP Disclosures -
Unaudited
(In millions, except
for percentages and per share amounts)
|
|
|
For the Three
Months
Ended September 30,
|
|
For the Nine
Months
Ended September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
EBITDA and
Adjusted EBITDA Reconciliation
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
64.2
|
|
|
$
|
56.5
|
|
|
$
|
188.2
|
|
|
$
|
78.1
|
|
|
Interest expense,
net
|
17.6
|
|
|
13.1
|
|
|
45.0
|
|
|
37.9
|
|
|
Provision for income
taxes
|
43.4
|
|
|
38.8
|
|
|
126.2
|
|
|
54.3
|
|
|
Depreciation and
amortization
|
50.1
|
|
|
42.6
|
|
|
138.4
|
|
|
122.2
|
|
|
EBITDA
|
$
|
175.3
|
|
|
$
|
151.0
|
|
|
$
|
497.7
|
|
|
$
|
292.6
|
|
|
Non-cash stock-based
compensation expense
|
3.4
|
|
|
3.9
|
|
|
10.5
|
|
|
11.3
|
|
|
Restructuring
charges
|
—
|
|
|
4.7
|
|
|
0.6
|
|
|
13.8
|
|
|
Project results from
non-controlled joint venture
|
0.4
|
|
|
5.1
|
|
|
7.4
|
|
|
5.1
|
|
|
Charges (recoveries)
from multi-employer pension plan withdrawals
|
0.6
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
Adjusted
EBITDA
|
$
|
179.6
|
|
|
$
|
164.8
|
|
|
$
|
516.7
|
|
|
$
|
322.8
|
|
|
|
|
|
|
For the Three
Months
Ended September 30,
|
|
For the Nine
Months
Ended September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
EBITDA and
Adjusted EBITDA Margin Reconciliation
|
|
|
|
|
|
|
|
|
Net
income
|
3.3
|
%
|
|
3.6
|
%
|
|
3.8
|
%
|
|
2.1
|
%
|
|
Interest expense,
net
|
0.9
|
%
|
|
0.8
|
%
|
|
0.9
|
%
|
|
1.0
|
%
|
|
Provision for income
taxes
|
2.2
|
%
|
|
2.4
|
%
|
|
2.5
|
%
|
|
1.4
|
%
|
|
Depreciation and
amortization
|
2.6
|
%
|
|
2.7
|
%
|
|
2.8
|
%
|
|
3.2
|
%
|
|
EBITDA
margin
|
9.0
|
%
|
|
9.5
|
%
|
|
9.9
|
%
|
|
7.7
|
%
|
|
Non-cash stock-based
compensation expense
|
0.2
|
%
|
|
0.2
|
%
|
|
0.2
|
%
|
|
0.3
|
%
|
|
Restructuring
charges
|
—
|
%
|
|
0.3
|
%
|
|
0.0
|
%
|
|
0.4
|
%
|
|
Project results from
non-controlled joint venture
|
0.0
|
%
|
|
0.3
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
|
Charges (recoveries)
from multi-employer pension plan withdrawals
|
0.0
|
%
|
|
—
|
%
|
|
0.0
|
%
|
|
—
|
%
|
|
Adjusted EBITDA
margin
|
9.2
|
%
|
|
10.4
|
%
|
|
10.3
|
%
|
|
8.5
|
%
|
|
Supplemental
Disclosures and Reconciliation of Non-GAAP Disclosures -
Unaudited
(In millions, except
for percentages and per share amounts)
|
|
|
For the Three
Months
Ended September 30,
|
|
For the Nine
Months
Ended September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Adjusted Net
Income Reconciliation
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
64.2
|
|
|
$
|
56.5
|
|
|
$
|
188.2
|
|
|
$
|
78.1
|
|
|
Non-cash stock-based
compensation expense
|
3.4
|
|
|
3.9
|
|
|
10.5
|
|
|
11.3
|
|
|
Restructuring
charges
|
—
|
|
|
4.7
|
|
|
0.6
|
|
|
13.8
|
|
|
Project results from
non-controlled joint venture
|
0.4
|
|
|
5.1
|
|
|
7.4
|
|
|
5.1
|
|
|
Charges (recoveries)
from multi-employer pension plan withdrawals
|
0.6
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
Income
tax effect of adjustments (a)
|
(0.6)
|
|
|
(4.0)
|
|
|
(4.1)
|
|
|
(10.6)
|
|
|
Adjusted net
income
|
$
|
68.0
|
|
|
$
|
66.3
|
|
|
$
|
203.1
|
|
|
$
|
97.7
|
|
|
|
|
|
|
For the Three
Months
Ended September 30,
|
|
For the Nine
Months
Ended September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Adjusted Diluted
EPS Reconciliation
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
|
0.77
|
|
|
$
|
0.69
|
|
|
$
|
2.27
|
|
|
$
|
0.96
|
|
|
Non-cash stock-based
compensation expense
|
0.04
|
|
|
0.05
|
|
|
0.13
|
|
|
0.14
|
|
|
Restructuring
charges
|
—
|
|
|
0.06
|
|
|
0.01
|
|
|
0.17
|
|
|
Project results from
non-controlled joint venture
|
0.00
|
|
|
0.06
|
|
|
0.09
|
|
|
0.06
|
|
|
Charges (recoveries)
from multi-employer pension plan withdrawals
|
0.01
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
|
Income
tax effect of adjustments (a)
|
(0.01)
|
|
|
(0.05)
|
|
|
(0.05)
|
|
|
(0.13)
|
|
|
Adjusted diluted
earnings per share
|
$
|
0.82
|
|
|
$
|
0.81
|
|
|
$
|
2.45
|
|
|
$
|
1.20
|
|
|
|
(a)
Represents the tax effect of the adjusted items that
are subject to tax, including the tax effects of share-based
compensation expense. Tax effects are determined based on the
tax treatment of the related items, the incremental statutory tax
rate of the jurisdictions pertaining to each adjustment, and taking
into consideration their effect on pre-tax income.
|
|
Supplemental
Disclosures and Reconciliation of Non-GAAP Disclosures -
Unaudited
(In millions, except
for percentages and per share amounts)
|
|
|
Guidance for
the
Three Months Ended
December 31, 2017 Est.
|
|
For the
Three Months Ended
December 31, 2016
|
|
EBITDA and
Adjusted EBITDA Reconciliation
|
|
|
|
|
Net
income
|
$
|
26
|
|
|
$
|
55.9
|
|
|
Interest expense,
net
|
16
|
|
|
12.8
|
|
|
Provision for income
taxes
|
18
|
|
|
37.5
|
|
|
Depreciation and
amortization
|
50
|
|
|
42.7
|
|
|
EBITDA
|
$
|
110
|
|
|
$
|
148.9
|
|
|
Non-cash stock-based
compensation expense
|
3
|
|
|
3.8
|
|
|
Restructuring
charges
|
—
|
|
|
1.4
|
|
|
Adjusted
EBITDA
|
$
|
113
|
|
|
$
|
154.1
|
|
|
|
Guidance for
the
Three Months Ended
December 31, 2017 Est.
|
|
For the
Three Months Ended
December 31, 2016
|
|
EBITDA and
Adjusted EBITDA Margin Reconciliation
|
|
|
|
|
Net
income
|
2.0
|
%
|
|
4.2
|
%
|
|
Interest expense,
net
|
1.2
|
%
|
|
1.0
|
%
|
|
Provision for income
taxes
|
1.4
|
%
|
|
2.8
|
%
|
|
Depreciation and
amortization
|
3.9
|
%
|
|
3.2
|
%
|
|
EBITDA
margin
|
8.5
|
%
|
|
11.1
|
%
|
|
Non-cash stock-based
compensation expense
|
0.3
|
%
|
|
0.3
|
%
|
|
Restructuring
charges
|
—
|
%
|
|
0.1
|
%
|
|
Adjusted EBITDA
margin
|
8.7
|
%
|
|
11.5
|
%
|
|
|
Guidance for
the
Three Months Ended
December 31, 2017 Est.
|
|
For the
Three Months Ended
December 31, 2016
|
|
Adjusted Net
Income Reconciliation
|
|
|
|
|
Net
income
|
$
|
26
|
|
|
$
|
55.9
|
|
|
Non-cash stock-based
compensation expense
|
3
|
|
|
3.8
|
|
|
Restructuring
charges
|
—
|
|
|
1.4
|
|
|
Income tax
effect of adjustments (a)
|
(0)
|
|
|
(1.2)
|
|
|
Adjusted net
income
|
$
|
29
|
|
|
$
|
60.0
|
|
|
|
Guidance for
the
Three Months Ended
December 31, 2017 Est.
|
|
For the
Three Months Ended
December 31, 2016
|
|
Adjusted Diluted
EPS Reconciliation
|
|
|
|
|
Diluted earnings
per share
|
$
|
0.32
|
|
|
$
|
0.66
|
|
|
Non-cash stock-based
compensation expense
|
0.04
|
|
|
0.05
|
|
|
Restructuring
charges
|
—
|
|
|
0.02
|
|
|
Income tax
effect of adjustments (a)
|
(0.00)
|
|
|
(0.01)
|
|
|
Adjusted diluted
earnings per share
|
$
|
0.36
|
|
|
$
|
0.70
|
|
|
|
(a)
Represents the tax effect of the adjusted items that
are subject to tax, including the tax effects of share-based
compensation expense. Tax effects are determined based on the
tax treatment of the related items, the incremental statutory tax
rate of the jurisdictions pertaining to each adjustment, and taking
into consideration their effect on pre-tax income.
|
|
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, 2017 Est.
|
|
For the
Year Ended
December 31, 2016
|
|
For the
Year Ended
December 31, 2015
|
|
EBITDA and
Adjusted EBITDA Reconciliation
|
|
|
|
|
|
|
Net
income
|
$
|
215
|
|
|
$
|
134.0
|
|
|
$
|
(79.7)
|
|
|
Interest expense,
net
|
60
|
|
|
50.7
|
|
|
48.1
|
|
|
Provision for income
taxes
|
144
|
|
|
91.8
|
|
|
12.0
|
|
|
Depreciation and
amortization
|
188
|
|
|
164.9
|
|
|
169.7
|
|
|
EBITDA
|
$
|
608
|
|
|
$
|
441.5
|
|
|
$
|
150.0
|
|
|
Non-cash stock-based
compensation expense
|
14
|
|
|
15.1
|
|
|
12.4
|
|
|
Restructuring
charges
|
1
|
|
|
15.2
|
|
|
—
|
|
|
Goodwill and
intangible asset impairment
|
—
|
|
|
—
|
|
|
78.6
|
|
|
Acquisition
integration costs
|
—
|
|
|
—
|
|
|
17.8
|
|
|
Audit Committee
investigation related costs
|
—
|
|
|
—
|
|
|
16.5
|
|
|
Project results from
non-controlled joint venture
|
7
|
|
|
5.1
|
|
|
16.3
|
|
|
Court mandated
mediation settlement
|
—
|
|
|
—
|
|
|
12.2
|
|
|
Loss on equity
investee interest rate swaps
|
—
|
|
|
—
|
|
|
4.4
|
|
|
Charges (recoveries)
from multi-employer pension plan withdrawals
|
1
|
|
|
—
|
|
|
—
|
|
|
Adjusted
EBITDA
|
$
|
630
|
|
|
$
|
476.9
|
|
|
$
|
308.1
|
|
|
|
Guidance for
the
Year Ended
December 31, 2017 Est.
|
|
For the
Year Ended
December 31, 2016
|
|
For the
Year Ended
December 31, 2015
|
|
EBITDA and
Adjusted EBITDA Margin Reconciliation
|
|
|
|
|
|
|
Net
income
|
3.4
|
%
|
|
2.6
|
%
|
|
(1.9)
|
%
|
|
Interest expense,
net
|
1.0
|
%
|
|
1.0
|
%
|
|
1.1
|
%
|
|
Provision for income
taxes
|
2.3
|
%
|
|
1.8
|
%
|
|
0.3
|
%
|
|
Depreciation and
amortization
|
3.0
|
%
|
|
3.2
|
%
|
|
4.0
|
%
|
|
EBITDA
margin
|
9.6
|
%
|
|
8.6
|
%
|
|
3.6
|
%
|
|
Non-cash stock-based
compensation expense
|
0.2
|
%
|
|
0.3
|
%
|
|
0.3
|
%
|
|
Restructuring
charges
|
0.0
|
%
|
|
0.3
|
%
|
|
—
|
%
|
|
Goodwill and
intangible asset impairment
|
—
|
%
|
|
—
|
%
|
|
1.9
|
%
|
|
Acquisition
integration costs
|
—
|
%
|
|
—
|
%
|
|
0.4
|
%
|
|
Audit Committee
investigation related costs
|
—
|
%
|
|
—
|
%
|
|
0.4
|
%
|
|
Project results from
non-controlled joint venture
|
0.1
|
%
|
|
0.1
|
%
|
|
0.4
|
%
|
|
Court mandated
mediation settlement
|
—
|
%
|
|
—
|
%
|
|
0.3
|
%
|
|
Loss on equity
investee interest rate swaps
|
—
|
%
|
|
—
|
%
|
|
0.1
|
%
|
|
Charges (recoveries)
from multi-employer pension plan withdrawals
|
0.0
|
%
|
|
—
|
%
|
|
—
|
%
|
|
Adjusted EBITDA
margin
|
10.0
|
%
|
|
9.3
|
%
|
|
7.3
|
%
|
|
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, 2017 Est.
|
|
For the
Year Ended
December 31, 2016
|
|
For the
Year Ended
December 31, 2015
|
|
Adjusted Net
Income Reconciliation
|
|
|
|
|
|
|
Net
income
|
$
|
215
|
|
|
$
|
134.0
|
|
|
$
|
(79.7)
|
|
|
Non-cash stock-based
compensation expense
|
14
|
|
|
15.1
|
|
|
12.4
|
|
|
Restructuring
charges
|
1
|
|
|
15.2
|
|
|
—
|
|
|
Goodwill and
intangible asset impairment
|
—
|
|
|
—
|
|
|
78.6
|
|
|
Acquisition
integration costs
|
—
|
|
|
—
|
|
|
17.8
|
|
|
Audit Committee
investigation related costs
|
—
|
|
|
—
|
|
|
17.4
|
|
|
Project results from
non-controlled joint venture
|
7
|
|
|
5.1
|
|
|
16.3
|
|
|
Court mandated
mediation settlement
|
—
|
|
|
—
|
|
|
12.2
|
|
|
Loss on equity
investee interest rate swaps
|
—
|
|
|
—
|
|
|
4.4
|
|
|
Impact of Alberta tax
law change
|
—
|
|
|
—
|
|
|
2.8
|
|
|
Charges (recoveries)
from multi-employer pension plan withdrawals
|
1
|
|
|
—
|
|
|
—
|
|
|
Income
tax effect of adjustments (a)
|
(5)
|
|
|
(11.7)
|
|
|
(30.8)
|
|
|
Adjusted net
income
|
$
|
232
|
|
|
$
|
157.7
|
|
|
$
|
51.4
|
|
|
|
Guidance for
the
Year Ended
December 31, 2017 Est.
|
|
For the
Year Ended
December 31, 2016
|
|
For the
Year Ended
December 31, 2015
|
|
Adjusted Diluted
EPS Reconciliation
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
|
2.59
|
|
|
$
|
1.61
|
|
|
$
|
(0.98)
|
|
|
Non-cash stock-based
compensation expense
|
0.17
|
|
|
0.19
|
|
|
0.15
|
|
|
Restructuring
charges
|
0.01
|
|
|
0.19
|
|
|
—
|
|
|
Goodwill and
intangible asset impairment
|
—
|
|
|
—
|
|
|
0.97
|
|
|
Acquisition
integration costs
|
—
|
|
|
—
|
|
|
0.22
|
|
|
Audit Committee
investigation related costs
|
—
|
|
|
—
|
|
|
0.21
|
|
|
Project results from
non-controlled joint venture
|
0.09
|
|
|
0.06
|
|
|
0.20
|
|
|
Court mandated
mediation settlement
|
—
|
|
|
—
|
|
|
0.15
|
|
|
Loss on equity
investee interest rate swaps
|
—
|
|
|
—
|
|
|
0.05
|
|
|
Impact of Alberta tax
law change
|
—
|
|
|
—
|
|
|
0.03
|
|
|
Charges (recoveries)
from multi-employer pension plan withdrawals
|
0.01
|
|
|
—
|
|
|
—
|
|
|
Income
tax effect of adjustments (a)
|
(0.06)
|
|
|
(0.14)
|
|
|
(0.38)
|
|
|
Adjusted diluted
earnings per share
|
$
|
2.80
|
|
|
$
|
1.90
|
|
|
$
|
0.64
|
|
|
|
(a)
Represents the tax effect of the adjusted items that
are subject to tax, including the tax effects of share-based
compensation expense. Tax effects are determined based on the
tax treatment of the related items, the incremental statutory tax
rate of the jurisdictions pertaining to each adjustment, and taking
into consideration their effect 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 and utility
infrastructure, such as: wireless, wireline/fiber, satellite
communications and customer fulfillment activities; petroleum and
natural gas pipeline infrastructure; electrical utility
transmission and distribution; power generation; 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 on the
Presentations/Webcasts 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 trends in oil, natural gas, electricity and other energy
source prices; volatility in capital expenditures by our customers,
financing availability and cost, customer consolidation and
technological and regulatory changes in the industries we serve;
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 performance on such
projects; our ability to manage projects effectively and in
accordance with our estimates; the effect of economic conditions on
demand for our services; market conditions, technological
developments and regulatory changes that affect us or our
customers' industries; the highly competitive nature of our
industry; risks related to our strategic arrangements, including
our cost and equity investees; fluctuations in foreign currencies;
risks associated with operating in or expanding into additional
international markets, which could restrict our ability to expand
globally and harm our business and prospects or any failure to
comply with laws applicable to our foreign activities; customer
disputes related to our performance of services; disputes with, or
failures of, our subcontractors to deliver agreed-upon supplies or
services in a timely fashion; any material changes in estimates for
legal costs or case settlements or adverse determinations on any
claim, lawsuit or proceeding; our ability to replace non-recurring
projects with new projects; the timing and extent of fluctuations
in geographic, weather, equipment and operational factors affecting
the industries in which we operate; 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, integrate acquired businesses within
expected timeframes and 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, including write-downs of goodwill; any exposure related to
divested businesses; any exposure resulting from system or
information technology interruptions or data security breaches;
risks related to the restatement of certain of our fiscal year 2014
interim financial statements; the impact of U.S. federal, local or
state tax legislation and other regulations affecting corporate
income taxes, as well as, those affecting renewable energy,
electricity prices, electrical transmission, oil and gas
production, broadband and related projects and expenditures; the
effect of state and federal regulatory initiatives, including costs
of compliance with existing and future environmental requirements;
increases in fuel, maintenance, materials, labor and other costs;
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, the 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 multi-employer pension
plans, including underfunding and withdrawal liabilities, for our
operations that employ unionized workers; the adequacy of our
insurance, legal and other reserves and allowances for doubtful
accounts; restrictions imposed by our credit facility, senior
notes, and any future loans or securities; our ability to obtain
performance and surety bonds; the outcome of our plans for future
operations, growth and services, including business development
efforts, backlog, acquisitions and dispositions; 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 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.