Exhibit 99.1
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Contact: | | |
| J. Marc Lewis, Vice President-Investor Relations | | 800 S. Douglas Road, 12th Floor |
| 305-406-1815 | | Coral Gables, Florida 33134 |
| 305-406-1886 fax | | Tel: 305-599-1800 |
| marc.lewis@mastec.com | | Fax: 305-406-1960 |
| | | www.mastec.com |
For Immediate Release
MasTec Announces Earnings from Continuing Operations
Increase of 80% on 11% Rise in Revenue
Coral Gables, FL(August 3, 2006) — MasTec, Inc. (NYSE: MTZ) today announced that for the quarter ended June 30, 2006, income from continuing operations was $12.1 million, or $0.18 diluted earnings per share, on revenue of $232.1 million. This compares with income from continuing operations of $5.2 million, or $0.10 diluted earnings per share, on revenue of $209.7 million in the prior year quarter. Income from continuing operations for the first six months of 2006 was $0.25 per diluted share compared with a loss from continuing operations of $(0.01) per diluted share for the comparable period of 2005.
The Company currently has gross liquidity, defined as bank cash plus credit line availability, of approximately $110 million, compared with $50 million a year ago. MasTec currently has no cash draws on its $150 million bank credit facility.
The Company’s state department of transportation projects and assets, which were classified as discontinued operations beginning in the fourth quarter of 2005, showed a loss of $35.7 million during the second quarter of 2006. This loss included a $20.8 million non-cash impairment charge to adjust the carrying value of the assets down to estimated realization value upon final sale and disposition. Cash used in discontinued operations was $10.6 million for the second quarter, compared with $9.8 million in the first quarter of 2006. The Company continues to market these projects and assets as it exits from this business.
Austin J. Shanfelter, MasTec’s President and Chief Executive Officer, commented, “We see continued improving trends for our core markets and our overall continuing operations performance is improving each quarter. Customer demand in both telecommunications and energy continues to grow, outsourcing continues to trend positively and customer capital expenditure budgets are growing. MasTec is well positioned to meet these additional customer needs.”
For 2006, MasTec’s guidance forecast remains unchanged. The Company expects revenue from continuing operations to be in the range of $950 to $975 million, a double-digit growth rate. Diluted earnings per share from continuing operations for 2006 is expected to be between $0.70 and $0.80 per share.
Management will hold a conference call to discuss results of operations for the quarter ended June 30, 2006 on Friday, August 4, 2006 at 9:00 a.m. Eastern time. The call-in number for the conference call is (913) 981-5592 and the replay number is (719) 457-0820, with a pass code of 8050407. 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 www.mastec.com.
Summary financials for the quarters are as follows:
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Condensed Unaudited Consolidated Statement of Operations
(In thousands, except per share amounts)
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| | | For the Three Months Ended | |
| | | June 30, | |
| | | 2006 | | | 2005 | |
| Revenue | | $ | 232,100 | | | $ | 209,660 | |
| Costs of revenue, excluding depreciation | | | 198,125 | | | | 182,435 | |
| Depreciation | | | 3,498 | | | | 4,240 | |
| General and administrative expenses, including non-cash stock compensation expense of $2,043 in 2006 and $182 in 2005 | | | 17,373 | | | | 14,031 | |
| Interest expense, net of interest income | | | 2,347 | | | | 4,710 | |
| Other income, net | | | 1,645 | | | | 1,271 | |
| | | | | | | |
| Income from continuing operations before minority interest | | | 12,402 | | | | 5,515 | |
| Minority interest | | | (323 | ) | | | (356 | ) |
| | | | | | | |
Income from continuing operations | | | 12,079 | | | | 5,159 | |
| | | | | | | | | |
| Loss from discontinued operations, net of tax benefit | | | (35,736 | ) | | | (4,043 | ) |
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Net income (loss) | | $ | (23,657 | ) | | $ | 1,116 | |
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| Basic net income (loss) per share: | | | | | | | | |
| Continuing operations | | $ | 0.19 | | | $ | 0.10 | |
| Discontinued operations | | | (0.56 | ) | | | (0.08 | ) |
| | | | | | | |
| Total basic net income (loss) per share | | $ | (0.37 | ) | | $ | 0.02 | |
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Basic weighted average common shares outstanding | | | 64,752 | | | | 48,894 | |
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| Diluted net income (loss) per share: | | | | | | | | |
| Continuing operations | | $ | 0.18 | | | $ | 0.10 | |
| Discontinued operations | | | (0.54 | ) | | | (0.08 | ) |
| | | | | | | |
| Total diluted net income (loss) per share | | $ | (0.36 | ) | | $ | 0.02 | |
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Diluted weighted average common shares outstanding | | | 66,463 | | | | 49,431 | |
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Condensed Unaudited Consolidated Balance Sheets
(In thousands)
| | | | | | | | | |
| | | June 30, | | | December 31, | |
| | | 2006 | | | 2005 | |
Assets | | | | | | | | |
| Total current assets | | $ | 337,680 | | | $ | 305,307 | |
| Property and equipment, net | | | 57,476 | | | | 48,027 | |
| Goodwill | | | 150,630 | | | | 127,143 | |
| Deferred taxes, net | | | 45,946 | | | | 51,468 | |
| Other assets | | | 50,352 | | | | 46,070 | |
| Long-term assets held for sale | | | 1,027 | | | | 6,149 | |
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Total assets | | $ | 643,111 | | | $ | 584,164 | |
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Liabilities and Shareholders’ Equity | | | | | | | | |
| Current liabilities | | $ | 157,063 | | | $ | 170,238 | |
| Other liabilities | | | 36,343 | | | | 37,359 | |
| Long-term debt | | | 126,961 | | | | 196,104 | |
| Long-term liabilities related to assets held for sale | | | 742 | | | | 860 | |
| Total shareholders’ equity | | | 322,002 | | | | 179,603 | |
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Total liabilities and shareholders’ equity | | $ | 643,111 | | | $ | 584,164 | |
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Condensed Unaudited Consolidated Statements of Cash Flows
(In thousands)
| | | | | | | | | |
| | | For the Six Months | |
| | | Ended June 30, | | |
| | | 2006 | | | 2005 | |
Cash flows from operating activities: | | | | | | | | |
| Net cash provided by (used in) operating activities | | $ | 10,392 | | | $ | (14,543 | ) |
| Net cash (used in) investing activities | | | (30,771 | ) | | | (1,541 | ) |
| Net cash provided by financing activities | | | 80,858 | | | | 1,167 | |
| | | | | | | |
| Net increase (decrease) in cash and cash equivalents | | | 60,479 | | | | (14,917 | ) |
| Net effect of currency translation on cash | | | 52 | | | | (42 | ) |
| Cash and cash equivalents — beginning of period | | | 2,024 | | | | 19,548 | |
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Cash and cash equivalents — end of period | | $ | 62,555 | | | $ | 4,589 | |
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MasTec <www.mastec.com> is a leading specialty contractor operating throughout the United States and in Canada across a range of industries. The Company’s core activities are the building, installation, maintenance and upgrade of communication, utility infrastructure and transportation systems.
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 that our revenue and earnings per share may differ from that projected, that we may be impacted by business and economic conditions affecting our customers, the highly competitive nature of our industry, dependence on a limited number of customers, the adequacy of our insurance and other reserves and allowances for doubtful accounts, restrictions imposed by our credit facility and senior notes, 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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