3155 N.W. 77th Avenue
Miami, FL 33122
Tel: 305-559-1800
FAX: 305-406-3138
www.mastec.com
Contact:
J. Marc Lewis, Vice President-Investor Relations
305.406.3165
marc.lewis@mastec.com
For Immediate Release
MasTec Announces 2003 First Quarter Results and Reaffirms
Guidance for 2003
Miami(May 13, 2003) — MasTec, Inc. (NYSE: MTZ) today announced results for the first quarter of 2003. For the quarter ended March 31, 2003, the Company had revenue of $180.6 million and a net loss of $1.6 million, compared with revenue of $203.8 million and a net loss of $24.4 million for the comparable quarter of 2002. Net loss per share was $0.03 and $0.51 for the quarters ended March 31, 2003 and 2002, respectively. Included in the loss for the first quarter of 2002 is a $25.7 million non-cash charge related to the previously disclosed change of accounting method under SFAS 142.
Austin J. Shanfelter, President and CEO stated, “Margins were negatively impacted in the first quarter of 2003 by poor weather in much of the country. As a result, productivity was down as many work crews were unable to be deployed and jobs were delayed. However, in spite of these negative events, the Company’s net income fell within its previously announced guidance range indicating that our cost cutting efforts are paying off.”
For the second quarter of 2003, MasTec expects revenue to be from $210 million to $220 million with earnings per share between $0.03 and $0.05. Looking forward to the entire year, we are reaffirming our previous guidance for 2003. We expect revenue ranging from $750 to $850 million and EPS ranging from $0.18 to $0.28 per share.
Summary financials for the quarter just ended are as follows:
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
| For the Three Months Ended March 31, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2003 | 2002 | |||||||
| Revenue | $ | 180,569 | $ | 203,782 | ||||
| Costs of revenue, excluding depreciation | 152,785 | 164,586 | ||||||
| Depreciation | 8,350 | 9,850 | ||||||
| Amortization | 151 | 128 | ||||||
| General and administrative expenses | 17,909 | 22,079 | ||||||
| Interest expense | 4,656 | 5,047 | ||||||
| Interest income | 118 | 395 | ||||||
| Other income (expense), net | 480 | (274 | ) | |||||
| (Loss) income before (provision) benefit for income taxes, minority | ||||||||
| interest and cumulative effect of accounting change | (2,684 | ) | 2,213 | |||||
| Benefit (provision) for income taxes | 1,060 | (926 | ) | |||||
| Minority interest | 36 | (52 | ) | |||||
| (Loss) income before cumulative effect of accounting change | (1,588 | ) | 1,235 | |||||
| Cumulative effect of accounting change, net of tax | -- | (25,671 | ) | |||||
| Net loss | $ | (1,588 | ) | $ | (24,436 | ) | ||
| Basic weighted average common shares outstanding | 48,018 | 47,908 | ||||||
| Basic (loss) earnings per share before cumulative | ||||||||
| effect of accounting change | $ | (0.03 | ) | $ | 0.03 | |||
| Cumulative effect of accounting change | -- | (0.54 | ) | |||||
| Basic loss per share | $ | (0.03 | ) | $ | (0.51 | ) | ||
| 48,018 | 48,054 | |||||||
| Diluted weighted average common shares outstanding | ||||||||
| Diluted (loss) earnings per share before cumulative | ||||||||
| effect of accounting change | $ | (0.03 | ) | $ | 0.03 | |||
| Cumulative effect of accounting change | -- | (0.53 | ) | |||||
| Diluted loss per share | $ | (0.03 | ) | $ | (0.51 | ) | ||
Consolidated Balance Sheets
(In thousands)
(Unaudited)
| March 31, 2003 | (Audited) December 31, 2002 | |||||||
|---|---|---|---|---|---|---|---|---|
| Assets | ||||||||
| Total current assets | 259,800 | 275,172 | ||||||
| Property and equipment, net | 108,781 | 118,475 | ||||||
| Goodwill | 150,984 | 150,984 | ||||||
| Deferred taxes | 41,325 | 40,271 | ||||||
| Other assets | 41,903 | 38,890 | ||||||
| Total assets | $ | 602,793 | $ | 623,792 | ||||
| Liabilities and Shareholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Current liabilities | $ | 111,083 | $ | 130,395 | ||||
| Other liabilities | 21,691 | 22,214 | ||||||
| Long-term debt | 197,209 | 197,435 | ||||||
| Total shareholders' equity | 272,810 | 273,748 | ||||||
| Total liabilities and shareholders' equity | $ | 602,793 | $ | 623,792 | ||||
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
| For the Three Months Ended March 31, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2003 | 2002 | |||||||
| Cash flows from operating activities: | ||||||||
| Net cash provided by operating activities | 5,235 | 41,323 | ||||||
| Net cash provided by (used in) investing activities | 1,244 | (4,457 | ) | |||||
| Net cash provided by (used in) financing activities | (449 | ) | (69,927 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 6,030 | (33,061 | ) | |||||
| Net effect of currency translation on cash | 359 | (731 | ) | |||||
| Cash and cash equivalents - beginning of period | 8,730 | 48,478 | ||||||
| Cash and cash equivalents - end of period | $ | 15,119 | $ | 14,686 | ||||
Executives of MasTec will hold a conference call with the investment community on Wednesday, May 14, 2003 at 10:30 a.m. eastern time, to discuss first quarter results. The call in number for the conference call is (719) 457-2626 and the replay number is (719) 457-0820, pass code 537483. The replay will run from May 15 to May 29, utilizing the same passcode. Additionally, the call will be broadcast live over the Internet at http://www.firstcallevents.com/service/ajwz381530668gf12.html or through the investor relations section of the Company’s website at www.mastec.com.
MasTec is a leading communications, intelligent traffic and energy infrastructure service provider in North America and Brazil. The Company designs, builds, installs, maintains and monitors internal and external networks for leading telecommunications, broadband, energy and Fortune 1000 companies and for state departments of transportation.
This press release and any accompanying documents contain forward-looking statements, such as statements regarding MasTec’s future growth and profitability, growth strategy, and anticipated trends in the industries and economies in which MasTec operates. These forward-looking statements are based on MasTec’s current expectations and are subject to a number of risks, uncertainties, and assumptions, including that our revenue and profits may differ from that projected, that we may be further impacted by slowdowns in our clients’ businesses or in the economy in general, that our reserves for receivables may be inadequate and that we may experience increased costs associated with realigning our business or may be unsuccessful in those efforts. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from results expressed or implied in any forward-looking statements made by MasTec in this press release. These and other risks are detailed in this press release or documents filed by MasTec with the Securities and Exchange Commission. MasTec does not undertake any obligation to revise these forward-looking statements to reflect future events or circumstances.