Attached files

file filename
8-K - 8-K - MASTEC INCd684236d8k.htm

Exhibit 99.1

 

LOGO

 

Contact:    800 S. Douglas Road, 12th Floor
J. Marc Lewis, Vice President-Investor Relations    Coral Gables, Florida 33134
305-406-1815    Tel: 305-599-1800
305-406-1886 fax    Fax: 305-406-1960
marc.lewis@mastec.com    www.mastec.com

For Immediate Release

MasTec Announces Record 2013 Revenue, Net Income, Diluted Earnings per Share and EBITDA

 

    Quarterly Revenue up 24% to $1.2 Billion

 

    Quarterly Continuing Operations Adjusted Diluted EPS up 13% to $0.53

 

    Quarterly Continuing Operations Adjusted EBITDA up 23% to $123 Million

 

    Annual Revenue up 16% to $4.3 Billion

 

    Annual Continuing Operations Adjusted Diluted EPS up 24% to $1.90

 

    Annual Continuing Operations Adjusted EBITDA up 34% to $449 Million

 

    Annual Continuing Operations Adjusted EBITDA margin up 140 basis points to 10.4% of revenue

 

    Annual Cash Flow from Operations up 16% to $200 Million

 

    Year-end backlog at $4.1 Billion, up 23% over last year

Coral Gables, FL (February 27, 2014) — MasTec, Inc. (NYSE: MTZ) today announced record 2013 full year revenue, net income, diluted earnings per share and EBITDA. This is the fourth consecutive year of record financial results.

Revenue for the fourth quarter of 2013 was $1.16 billion compared to $932 million for the fourth quarter of 2012, an increase of 24%, with strong revenue growth across most segments. Oil and Gas segment revenue increased 103%, Electrical Transmission increased 27% and Communications increased 8%, driven by a 40% increase in wireless projects. Net income from continuing operations was $43 million or $0.50 per diluted share in the fourth quarter 2013, compared to $38 million or $0.46 per diluted share in the fourth quarter of 2012.

Fourth quarter 2013 adjusted net income from continuing operations, a non-GAAP measure, increased to $45 million compared to $38 million in 2012, an increase of 17%. Fourth quarter 2013 continuing operations adjusted diluted earnings per share, a non-GAAP measure, was $0.53 compared to $0.47 in 2012, an increase of 13%. Fourth quarter 2013 continuing operations adjusted EBITDA, a non-GAAP measure, was $123 million compared to $100 million in 2012, an increase of 23%.

Adjusted net income from continuing operations, continuing operations adjusted diluted earnings per share and continuing operations adjusted EBITDA, non-GAAP measures, exclude the impact of discontinued operations, charges related to the legacy Sintel litigation, which took place in Spain and dated back to 2001, loss on extinguishment of debt from the 2013 refinancing of our senior notes due 2017, as well as non-cash stock based compensation expense. Reconciliations of these and other non-GAAP measures to GAAP-reported measures are attached.


LOGO

 

For the year ended December 31, 2013, revenue was $4.3 billion compared to $3.7 billion for 2012, an increase of 16%, with strong revenue growth across most segments. Oil and Gas segment revenue increased 70%, Electrical Transmission increased 37% and Communications increased 11%, driven by a 38% increase in wireless projects. Net income from continuing operations was $148 million or $1.74 per diluted share for the year ended 2013 compared to $117 million or $1.42 per diluted share for the year ended 2012.

For the year ended 2013, adjusted net income from continuing operations, a non-GAAP measure, was $161 million compared to $125 million for the year ended 2012, an increase of 28%. 2013 continuing operations adjusted diluted earnings per share, a non-GAAP measure, was $1.90 compared to $1.53 per diluted share in 2012, an increase of 24%. 2013 continuing operations adjusted EBITDA, a non-GAAP measure, was $449 million compared to $336 million in 2012, an increase of 34%. 2013 continuing operations EBITDA margin, a non-GAAP measure, was 10.4% compared to 9.0% in 2012, a 140 basis point increase. 18-month backlog as of December 31, 2013, increased 23% to $4.1 billion compared to $3.4 billion as of December 31, 2012.

For the year ended December 31, 2013, net cash provided by operating activities was $200 million compared to $173 million for the prior year, an increase of 16%. During 2013, MasTec increased Liquidity to $585 million. The Company defines Liquidity as unrestricted cash plus availability under the Company’s credit facility.

Jose Mas, MasTec’s Chief Executive Officer, commented, “2013 was another record-breaking year for MasTec in terms of revenue, earnings, EBITDA and with strong margin expansion and cash flow. We continue to see great momentum in the markets we serve and are very excited about the growth opportunities for revenue and margin growth that exist across our wireless, oil and gas pipeline, electrical transmission, fiber deployment and renewable power markets. We expect another record year in 2014 and are bullish about our growth prospects in 2015 and beyond.”

George Pita, MasTec’s Executive Vice President and Chief Financial Officer noted, “We are pleased with the 16% increase in 2013 cash flow from operations and expect continued improvement in cash flow during 2014. Our capital structure and balance sheet are in excellent financial position to support internal growth and other future growth opportunities in the markets we serve.”

Today, the Company is issuing both first quarter and full year 2014 guidance. The Company currently estimates 2014 revenue of approximately $4.65 to $4.7 billion. 2014 continuing operations adjusted EBITDA, a non-GAAP measure, is estimated at $520 to $525 million, with continuing operations adjusted diluted earnings per share at $2.27 to $2.30.

For the first quarter of 2014, the Company expects revenue of approximately $920 million. First quarter 2014 continuing operations adjusted EBITDA, a non-GAAP measure, is estimated at $74 million with continuing operations adjusted diluted earnings per share, a non-GAAP measure, estimated at $0.20. The first quarter is normally our seasonally weakest period and the estimated financial results also reflect the impact of severe weather disruptions early this year. Additionally, 2014 guidance reflects the negative impact of foreign exchange rate changes related to our Canadian operations when compared to 2013.


LOGO

 

Estimated 2014 non-GAAP measures are calculated on a basis consistent with historical non-GAAP measures. Reconciliations of these and other non-GAAP measures to GAAP-reported measures are attached.

Management will hold a conference call to discuss these results on Friday, February 28, 2014 at 9:00 a.m. Eastern time. The call-in number for the conference call is (913) 312-1483 and the replay number is (719) 457-0820, with a pass code of 1715065. 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, 2013 and 2012:

Condensed Unaudited Consolidated Statements of Operations

(In thousands, except per share amounts)

 

     For the Years Ended
December 31,
    For the Three Months Ended
December 31,
 
     2013     2012     2013     2012  

Revenue

   $ 4,324,787      $ 3,726,789      $ 1,159,130      $ 932,358   

Costs of revenue, excluding depreciation & amortization

     3,682,367        3,239,195        987,081        794,139   

Depreciation and amortization

     140,926        91,958        37,815        26,834   

General and administrative expenses

     215,402        157,524        55,641        39,332   

Interest expense, net

     46,442        37,376        11,893        9,492   

Loss on extinguishment of debt

     5,624        —          —          —     

Other (income) expense, net

     (6,188     8,017        (2,906     27   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations before income taxes

   $ 240,214      $ 192,719      $ 69,606      $ 62,533   

Provision for income taxes

     (92,542     (76,080     (26,720     (24,851
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income from continuing operations

   $ 147,672      $ 116,639      $ 42,886      $ 37,683   
  

 

 

   

 

 

   

 

 

   

 

 

 

Discontinued operations:

        

Net loss from discontinued operations, including loss on disposal and impairment charges

   $ (6,546   $ (9,223   $ (1,290   $ (1,343
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 141,216      $ 107,416      $ 41,596      $ 36,340   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to non-controlling interests

     266        (10     95        (1
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to MasTec, Inc.

   $ 140,950      $ 107,426      $ 41,500      $ 36,340   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share:

        

Basic earnings (loss) per share:

        

Continuing operations

   $ 1.92      $ 1.49      $ 0.55      $ 0.50   

Discontinued operations

     (0.09     (0.12     (0.02     (0.02
  

 

 

   

 

 

   

 

 

   

 

 

 

Total basic earnings per share:

   $ 1.83      $ 1.37      $ 0.54      $ 0.48   
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic weighted average common shares outstanding

     76,923        78,275        77,240        76,087   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings (loss) per share:

        

Continuing operations

   $ 1.74      $ 1.42      $ 0.50      $ 0.46   

Discontinued operations

     (0.08     (0.11     (0.02     (0.02
  

 

 

   

 

 

   

 

 

   

 

 

 

Total diluted earnings per share

   $ 1.66      $ 1.31      $ 0.49      $ 0.45   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted weighted average common shares outstanding

     84,901        82,082        85,395        81,835   
  

 

 

   

 

 

   

 

 

   

 

 

 


LOGO

 

Condensed Unaudited Consolidated Balance Sheets

(In thousands)

 

     December 31,  
     2013      2012  
Assets      

Current assets, including discontinued operations

   $ 1,305,983       $ 1,049,641   

Property and equipment, net

     488,132         348,858   

Goodwill and other intangibles, net

     1,064,970         963,649   

Long-term assets, including discontinued operations

     60,553         54,160   
  

 

 

    

 

 

 

Total assets

   $ 2,919,638       $ 2,416,308   
  

 

 

    

 

 

 
Liabilities and Equity      

Current liabilities, including discontinued operations

   $ 825,546       $ 714,135   

Acquisition-related contingent consideration, net of current portion

     112,370         135,712   

Long-term debt

     765,425         546,323   

Long-term deferred tax liabilities, net

     154,883         119,388   

Other liabilities

     40,356         38,875   

Equity

     1,021,058         861,875   
  

 

 

    

 

 

 

Total liabilities and equity

   $ 2,919,638       $ 2,416,308   
  

 

 

    

 

 

 

Condensed Unaudited Consolidated Statements of Cash Flows

(In thousands)

 

     December 31,  
     2013     2012  

Net cash provided by operating activities

   $ 200,402      $ 172,508   

Net cash used in investing activities

     (263,211     (94,316

Net cash provided by (used in) financing activities

     58,993        (71,796
  

 

 

   

 

 

 

Net (decrease) in cash and cash equivalents

     (3,816     6,396   

Net effect of currency translation on cash

     (24     91   

Cash and cash equivalents-beginning of period

     26,767        20,280   
  

 

 

   

 

 

 

Cash and cash equivalents-end of period

     22,927        26,767   
  

 

 

   

 

 

 

Cash and cash equivalents of discontinued operations

     —          385   
  

 

 

   

 

 

 

Cash and cash equivalents of continuing operations

   $ 22,927      $ 26,382   
  

 

 

   

 

 

 


LOGO

 

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    2013     2012     2013     2012  

Revenue by Reportable Segment

        

Communications

   $ 498.1      $ 461.6      $ 1,962.6      $ 1,772.7   

Oil and Gas

     494.0        243.6        1,628.8        959.0   

Electrical Transmission

     107.0        84.0        428.8        312.2   

Power Generation and Industrial

     57.1        140.6        294.3        668.1   

Other

     3.1        2.6        12.3        16.7   

Corporate

     —          —          —          —     

Eliminations

     (0.1     (0.1     (2.0     (1.9
  

 

 

   

 

 

   

 

 

   

 

 

 

Consolidated revenue

   $ 1,159.1      $ 932.4      $ 4,324.8      $ 3,726.8   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA by Reportable Segment – Continuing Operations

        

Communications

   $ 66.1      $ 52.6      $ 247.7      $ 192.0   

Oil and Gas

     54.1        42.1        215.9        99.4   

Electrical Transmission

     14.2        7.6        41.2        38.7   

Power Generation and Industrial

     (1.7     3.8        (16.3     32.0   

Other

     (0.1     0.2        0.5        2.0   

Corporate

     (13.4     (7.5     (61.4     (42.0

Eliminations

     —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA – continuing operations

   $ 119.3      $ 98.9      $ 427.6      $ 322.1   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-cash stock-based compensation expense

     3.3        1.1        12.9        4.4   

Loss on debt extinguishment

     —          —          5.6        —     

Sintel legal settlement

     —          —          2.8        9.6   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA – continuing operations

   $ 122.6      $ 99.9      $ 448.9      $ 336.1   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA Margin by Reportable Segment – Continuing Operations

        

Communications

     13.3     11.4     12.6     10.8

Oil and Gas

     11.0     17.3     13.3     10.4

Electrical Transmission

     13.3     9.1     9.6     12.4

Power Generation and Industrial

     -3.0     2.7     -5.5     4.8

Other

     -1.8     8.1     3.9     11.7

Corporate

     —          —          —          —     

Eliminations

     —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA margin – continuing operations

     10.3     10.6     9.9     8.6
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-cash stock-based compensation expense

     0.3     0.1     0.3     0.1

Loss on debt extinguishment

     —          —          0.1     —     

Sintel legal settlement

     —          —          0.1     0.3
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA – continuing operations

     10.6     10.7     10.4     9.0
  

 

 

   

 

 

   

 

 

   

 

 

 


LOGO

 

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures - Unaudited

(In millions, except for percentages and per share amounts)

 

     Three Months Ended     Year Ended  
     March 31,
2013
    June 30,
2013
    September 30,
2013
    December 31,
2013
    December 31,
2013
 

EBITDA and Adjusted EBITDA Reconciliation – Continuing Operations

          

Net income from continuing operations

   $ 19.3      $ 35.5      $ 49.9      $ 42.9      $ 147.7   

Interest expense, net

     10.0        11.8        12.7        11.9        46.4   

Provision for income taxes

     12.3        21.8        31.7        26.7        92.5   

Depreciation and amortization

     31.8        33.6        37.8        37.8        140.9   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA - continuing operations

   $ 73.5      $ 102.7      $ 132.1      $ 119.3      $ 427.6   

Non-cash stock-based compensation expense

     2.4        4.3        3.0        3.3        12.9   

Loss on debt extinguishment

     5.6        —          —          —          5.6   

Sintel legal settlement

     —          2.8        —          —          2.8   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA - continuing operations

   $ 81.4      $ 109.8      $ 135.1      $ 122.6      $ 448.9   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA and Adjusted EBITDA Margin Reconciliation – Continuing Operations

          

Net income from continuing operations

     2.1     3.6     3.9     3.7     3.4

Interest expense, net

     1.1     1.2     1.0     1.0     1.1

Provision for income taxes

     1.3     2.3     2.5     2.3     2.1

Depreciation and amortization

     3.5     3.4     3.0     3.3     3.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA margin - continuing operations

     8.0     10.5     10.4     10.3     9.9

Non-cash stock-based compensation expense

     0.3     0.4     0.2     0.3     0.3

Loss on debt extinguishment

     0.6     —          —          —          0.1

Sintel legal settlement

     —          0.3     —          —          0.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin - continuing operations

     8.9     11.2     10.6     10.6     10.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     Three Months Ended     Year Ended  
     March 31,
2012
    June 30,
2012
    September 30,
2012
    December 31,
2012
    December 31,
2012
 

EBITDA and Adjusted EBITDA Reconciliation – Continuing Operations

          

Net income from continuing operations

   $ 11.7      $ 31.2      $ 36.1      $ 37.7      $ 116.6   

Interest expense, net

     9.0        9.5        9.4        9.5        37.4   

Provision for income taxes

     7.8        19.9        23.5        24.9        76.1   

Depreciation and amortization

     20.7        21.8        22.6        26.8        92.0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA - continuing operations

   $ 49.2      $ 82.4      $ 91.7      $ 98.9      $ 322.1   

Non-cash stock-based compensation expense

     1.0        1.2        1.2        1.1        4.4   

Sintel legal settlement

     —          —          9.6        —          9.6   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA - continuing operations

   $ 50.2      $ 83.5      $ 102.5      $ 99.9      $ 336.1   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA and Adjusted EBITDA Margin Reconciliation – Continuing Operations

          

Net income from continuing operations

     1.6     3.2     3.4     4.0     3.1

Interest expense, net

     1.2     1.0     0.9     1.0     1.0

Provision for income taxes

     1.1     2.0     2.2     2.7     2.0

Depreciation and amortization

     2.8     2.2     2.1     2.9     2.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA margin - continuing operations

     6.7     8.3     8.6     10.6     8.6

Non-cash stock-based compensation expense

     0.1     0.1     0.1     0.1     0.1

Sintel legal settlement

     —          —          0.9     —          0.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin - continuing operations

     6.8     8.4     9.6     10.7     9.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


LOGO

 

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures – Unaudited

(In millions, except for percentages and per share amounts)

 

     Three Months Ended     Year Ended  
     March 31,
2013
    June 30,
2013
    September 30,
2013
    December 31,
2013
    December 31,
2013
 

Adjusted Net Income Reconciliation

          

Net income from continuing operations

   $ 19.3      $ 35.5      $ 49.9      $ 42.9      $ 147.7   

Non-cash stock-based compensation expense, net of tax

     1.4        2.6        1.8        2.0        8.0   

Loss on debt extinguishment, net of tax

     3.4        —          —          —          3.5   

Sintel legal settlement, net of tax

     —          1.7        —          —          1.7   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income from continuing operations

   $ 24.2      $ 39.9      $ 51.8      $ 44.9      $ 160.8   

Loss from discontinued operations, net of tax

     (0.9     (0.5     (3.7     (1.3     (6.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income

   $ 23.2      $ 39.4      $ 48.0      $ 43.6      $ 154.3   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     Three Months Ended     Year Ended  
     March 31,
2013
    June 30,
2013
    September 30,
2013
    December 31,
2013
    December 31,
2013
 

Adjusted Diluted EPS Reconciliation

          

Diluted earnings per share – continuing operations

   $ 0.23      $ 0.42      $ 0.59      $ 0.50      $ 1.74   

Non-cash stock-based compensation expense, net of tax

     0.02        0.03        0.02        0.02        0.09   

Loss on debt extinguishment, net of tax

     0.04        —          —          —          0.04   

Sintel legal settlement, net of tax

     —          0.02        —          —          0.02   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted diluted earnings per share - continuing operations

   $ 0.29      $ 0.47      $ 0.61      $ 0.53      $ 1.90   

Diluted loss per share - discontinued operations

     (0.01     (0.01     (0.04     (0.02     (0.08
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted diluted earnings per share

   $ 0.28      $ 0.47      $ 0.56      $ 0.51      $ 1.82   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


LOGO

 

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures – Unaudited

(In millions, except for percentages and per share amounts)

 

     Three Months Ended     Year Ended  
     March 31,
2012
     June 30,
2012
    September 30,
2012
    December 31,
2012
    December 31,
2012
 

Adjusted Net Income Reconciliation

       

Net income from continuing operations

   $ 11.7       $ 31.2      $ 36.1      $ 37.7      $ 116.6   

Non-cash stock-based compensation expense, net of tax

     0.6         0.7        0.7        0.7        2.7   

Sintel legal settlement, net of tax

     —           —          5.8        —          5.8   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income from continuing operations

   $ 12.3       $ 31.9      $ 42.7      $ 38.3      $ 125.1   

Income (loss) from discontinued operations, net of tax

     2.5         (1.1     (9.3     (1.3     (9.2
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income

   $ 14.8       $ 30.8      $ 33.4      $ 37.0      $ 115.9   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

     Three Months Ended     Year Ended  
     March 31,
2012
     June 30,
2012
    September 30,
2012
    December 31,
2012
    December 31,
2012
 

Adjusted Diluted EPS Reconciliation

           

Diluted earnings per share – continuing operations

   $ 0.14       $ 0.38      $ 0.45      $ 0.46      $ 1.42   

Non-cash stock-based compensation expense, net of tax

     0.01         0.01        0.01        0.01        0.03   

Sintel legal settlement, net of tax

     —           —          0.07        —          0.07   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted diluted earnings per share - continuing operations

   $ 0.15       $ 0.39      $ 0.54      $ 0.47      $ 1.53   

Diluted earnings (loss) per share - discontinued operations

     0.03         (0.01     (0.12     (0.02     (0.11
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted diluted earnings per share

   $ 0.18       $ 0.37      $ 0.42      $ 0.45      $ 1.42   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 


LOGO

 

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures – Unaudited

(In millions, except for percentages and per share amounts)

 

     Guidance for
Three Months
Ended March 31,
    Three Months
Ended March 31,
 
     2014 Est.     2013  

EBITDA and Adjusted EBITDA Reconciliation – Continuing Operations

    

Net income from continuing operations

   $ 15      $ 19.3   

Interest expense, net

     12        10.0   

Provision for income taxes

     9        12.3   

Depreciation and amortization

     35        31.8   
  

 

 

   

 

 

 

EBITDA - continuing operations

   $ 70      $ 73.5   

Non-cash stock-based compensation expense

     4        2.4   

Loss on debt extinguishment

     —          5.6   
  

 

 

   

 

 

 

Adjusted EBITDA - continuing operations

   $ 74      $ 81.4   
  

 

 

   

 

 

 

EBITDA and Adjusted EBITDA Margin Reconciliation – Continuing Operations

    

Net income from continuing operations

     1.6     2.1

Interest expense, net

     1.3     1.1

Provision for income taxes

     1.0     1.3

Depreciation and amortization

     3.8     3.5
  

 

 

   

 

 

 

EBITDA margin - continuing operations

     7.6     8.0

Non-cash stock-based compensation expense

     0.4     0.3

Loss on debt extinguishment

     —          0.6
  

 

 

   

 

 

 

Adjusted EBITDA margin - continuing operations

     8.1     8.9
  

 

 

   

 

 

 
     Guidance for
Three Months
Ended March 31,
    Three Months
Ended March 31,
 
     2014 Est.     2013  

Adjusted Net Income from Continuing Operations and Adjusted Diluted EPS – Continuing Operations Reconciliations

    

Adjusted Net Income from Continuing Operations Reconciliation

    

Net income from continuing operations

   $ 15      $ 19.3   

Non-cash stock-based compensation expense, net of tax

     2        1.4   

Loss on debt extinguishment, net of tax

     —          3.4   
  

 

 

   

 

 

 

Adjusted net income from continuing operations

   $ 17      $ 24.2   
  

 

 

   

 

 

 
     Guidance for
Three Months
Ended March 31,
    Three Months
Ended March 31,
 
     2014 Est.     2013  

Adjusted Diluted EPS Reconciliation – Continuing Operations

    

Diluted earnings per share – continuing operations

   $ 0.17      $ 0.23   

Non-cash stock-based compensation expense, net of tax

     0.03        0.02   

Loss on debt extinguishment, net of tax

     —          0.04   
  

 

 

   

 

 

 

Adjusted diluted earnings per share – continuing operations

   $ 0.20      $ 0.29   
  

 

 

   

 

 

 


LOGO

 

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures – Unaudited

(In millions, except for percentages and per share amounts)

 

     Guidance for
Years Ended

December 31,
  Year Ended
December 31,
    Year Ended
December 31,
 
     2014 Est.   2013     2012  

EBITDA and Adjusted EBITDA Reconciliation – Continuing Operations

      

Net income from continuing operations

   $187-190   $ 147.7      $ 116.6   

Interest expense, net

   46     46.4        37.4   

Provision for income taxes

   114-116     92.5        76.1   

Depreciation and amortization

   156     140.9        92.0   
  

 

 

 

 

   

 

 

 

EBITDA - continuing operations

   $504-509   $ 427.6      $ 322.1   

Non-cash stock-based compensation expense

   16     12.9        4.4   

Loss on debt extinguishment

   —       5.6        —     

Sintel legal settlement

   —       2.8        9.6   
  

 

 

 

 

   

 

 

 

Adjusted EBITDA - continuing operations

   $520-525   $ 448.9      $ 336.1   
  

 

 

 

 

   

 

 

 

EBITDA and Adjusted EBITDA Margin Reconciliation – Continuing Operations

      

Net income from continuing operations

   4.0%     3.4     3.1

Interest expense, net

   1.0%     1.1     1.0

Provision for income taxes

   2.5%     2.1     2.0

Depreciation and amortization

   3.3%     3.3     2.5
  

 

 

 

 

   

 

 

 

EBITDA margin - continuing operations

   10.8%     9.9     8.6

Non-cash stock-based compensation expense

   0.4%     0.3     0.1

Loss on debt extinguishment

   —       0.1     —     

Sintel legal settlement

   —       0.1     0.3
  

 

 

 

 

   

 

 

 

Adjusted EBITDA margin - continuing operations

   11.2%     10.4     9.0
  

 

 

 

 

   

 

 

 

 

     Guidance for
Years Ended

December 31,
   Year Ended
December 31,
     Year Ended
December 31,
 
     2014 Est.    2013      2012  

Adjusted Net Income from Continuing Operations and Adjusted Diluted EPS – Continuing Operations Reconciliations

     

Adjusted Net Income from Continuing Operations Reconciliation

     

Net income from continuing operations

   $187-190    $ 147.7       $ 116.6   

Non-cash stock-based compensation expense, net of tax

   10      8.0         2.7   

Loss on debt extinguishment, net of tax

   —        3.5         —     

Sintel legal settlement, net of tax

   —        1.7         5.8   
  

 

  

 

 

    

 

 

 

Adjusted net income from continuing operations

   $197-200    $ 160.8       $ 125.1   
  

 

  

 

 

    

 

 

 

 

     Guidance for
Years Ended
December 31,
   Year Ended
December 31,
     Year Ended
December 31,
 
     2014 Est.    2013      2012  

Adjusted Diluted EPS Reconciliation – Continuing Operations

     

Diluted earnings per share – continuing operations

   $2.15-2.18    $ 1.74       $ 1.42   

Non-cash stock-based compensation expense, net of tax

   0.12      0.09         0.03   

Loss on debt extinguishment, net of tax

   —        0.04         —     

Sintel legal settlement, net of tax

   —        0.02         0.07   
  

 

  

 

 

    

 

 

 

Adjusted diluted earnings per share - continuing operations

   $2.27-2.30    $ 1.90       $ 1.53   
  

 

  

 

 

    

 

 

 

Tables may contain differences due to rounding.


LOGO

 

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 energy, utility and communications infrastructure, such as: electrical utility transmission and distribution; natural gas and petroleum pipeline infrastructure; wireless, wireline and satellite communications; power generation, including renewable energy infrastructure; 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. Jose Mas, CEO of MasTec, has led the Company since April of 2007.

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 the effect of economic downturns on demand for our services, reduced capital expenditures by our customers, reduced financing availability, customer consolidation and technological and regulatory changes in the industries we serve; market conditions, technological developments and regulatory changes that affect us or our customers’ industries; the activity in the oil and gas and electricity industry and the expenditure levels impacted by the trends in electricity, oil, natural gas and other energy source prices; the highly competitive nature of our industry; 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; our ability to manage projects effectively and in accordance with our estimates; the timing and extent of fluctuations in geographic, weather, and operational factors affecting our customers, projects and the industries in which we operate; 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; customer disputes related to our performance of services; any material changes in estimates for legal costs or case settlements or adverse determinations on any claim, lawsuit or proceeding; disputes with, or failures of, our subcontractors to deliver agreed-upon supplies or services in a timely fashion; our ability to replace non-recurring projects with new projects; our dependence on a limited number of customers; the adequacy of our insurance, legal and other reserves and allowances for doubtful accounts; risks related to acquisitions and joint ventures; 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, integrate acquired businesses within expected timeframes and achieve the revenue, cost savings and earnings levels from such acquisitions at or above the levels projected; any exposure resulting from system or information technology interruptions or data security breaches; the impact of U.S. federal, local or state tax legislation and other regulations 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 safety and environmental requirements; increases in fuel, maintenance, materials, labor and other costs; the impact of being required to pay our subcontractors even if our customers do not pay; fluctuations in foreign currencies; risks associated with operating in 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; risks associated with potential environmental issues and other hazards from our operations; 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; restrictions imposed by our credit facility, senior notes, convertible 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; 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 conversions of convertible notes or other stock issuances; our ability to settle conversions of our convertible notes in cash due to contractual restrictions, including those contained in our credit facility, and the availability of cash; 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.