Exhibit 99.1
Contact:
J. Marc Lewis, Vice President-Investor Relations
305-406-1815
305-406-1886 fax
marc.lewis@mastec.com
800 S. Douglas Road, 12th Floor
Coral Gables, Florida 33134
Tel: 305-599-1800
Fax: 305-406-1960
www.mastec.com
For Immediate Release
MasTec Reports Fourth Quarter 2007 Results and Issues 2008 Guidance
Coral Gables, FL(February 27, 2008) — MasTec, Inc. (NYSE: MTZ) today announced results for the quarter and year ended December 31, 2007.
For the quarter ended December 31, 2007, income from continuing operations was $9.9 million, or $0.15 diluted earnings per share, on revenue of $273.6 million. This compares with income from continuing operations of $9.3 million, or $0.14 per diluted share, on revenue of $240.1 million in the prior year quarter.
For the year ended December 31, 2007, income from continuing operations was $6.3 million, or $0.09 diluted earnings per share, on revenue of $1.04 billion. This compares with income from continuing operations of $40.0 million, or $0.62 per diluted share, on revenue of $940.4 million for the prior year. Excluding the previously disclosed $39.3 million charge for the acceleration of the settlement of legacy litigation, claims and other disputes, non-GAAP income from continuing operations was $45.5 million, or $0.67 per diluted share.
The Company is optimistic regarding its outlook for 2008.
The Company expects 2008 revenue of $1.125 billion to $1.160 billion, an 8% to 12% increase over 2007. Earnings per diluted share from continuing operations in 2008 is expected to be between $0.85 and $0.90. This represents a 27% to 34% increase over 2007 non-GAAP income from continuing operations of $0.67 per diluted share.
The first quarter has historically been the Company’s softest quarter due to the slow beginning of our customers’ annual budget processes and general winter weather conditions, which prevent many activities and also reduce overall efficiency and productivity. Although the Company does not normally give quarterly guidance, revenue for the first quarter of 2008 is expected to be between $250 million and $260 million, with diluted earnings per share from continuing operations of $0.11 to $0.12.
The annual and quarterly guidance does not include any of the impact of our previously disclosed legacy litigation, either positive or negative.
Jose Mas, MasTec’s President and Chief Executive Officer, commented, “We spent a lot of time and effort getting legacy issues behind us in 2007. We also worked hard in improving our operations, growing our business and positioning the Company to take advantage of the opportunities before us. We are off to a good start in 2008 and are encouraged by the activity in our markets despite the overall economic conditions.”
The following tables set forth the financial results for the periods ended December 31, 2007 and 2006:
Condensed Consolidated Statements of Operations
(In thousands except per share amounts)
| | | | | | | | | | | | | | | | | |
| | | | | | Three Months Ended | |
| | | Year Ended December 31, | | | December 31, | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
| Revenue | | $ | 1,037,779 | | | $ | 940,421 | | | $ | 273,635 | | | $ | 240,060 | |
| Costs of revenue | | | 891,606 | | | | 808,142 | | | | 236,391 | | | | 207,394 | |
| Depreciation | | | 16,988 | | | | 14,490 | | | | 4,843 | | | | 3,852 | |
| General and administrative expenses | | | 114,723 | | | | 73,353 | | | | 19,377 | | | | 19,336 | |
| Interest expense, net of interest income | | | 9,236 | | | | 10,083 | | | | 2,100 | | | | 2,045 | |
| Other income (expense), net | | | 3,516 | | | | 7,991 | | | | (768 | ) | | | 3,000 | |
| | | | | | | | | | | | | |
| Income from continuing operations before benefit for income taxes and minority interest | | | 8,742 | | | | 42,344 | | | | 10,156 | | | | 10,433 | |
| Minority interest | | | (2,459 | ) | | | (2,294 | ) | | | (210 | ) | | | (1,114 | ) |
| | | | | | | | | | | | | |
Income from continuing operations | | | 6,283 | | | | 40,050 | | | | 9,946 | | | | 9,319 | |
| Discontinued operations: | | | | | | | | | | | | | | | | |
| Loss from discontinued operations, net | | | (13,611 | ) | | | (90,398 | ) | | | (2,689 | ) | | | (24,164 | ) |
| | | | | | | | | | | | | |
Net Income (Loss) | | $ | (7,328 | ) | | $ | (50,348 | ) | | $ | 7,257 | | | $ | (14,845 | ) |
| | | | | | | | | | | | | |
Basic net income (loss) per share: | | | | | | | | | | | | | | | | |
| Continuing operations | | $ | 0.10 | | | $ | 0.63 | | | $ | 0.15 | | | $ | 0.14 | |
| Discontinued operations | | | (0.21 | ) | | | (1.42 | ) | | | (0.04 | ) | | | (0.37 | ) |
| | | | | | | | | | | | | |
| Total basic net income (loss) per share | | $ | (0.11 | ) | | $ | (0.79 | ) | | $ | 0.11 | | | $ | (0.23 | ) |
| | | | | | | | | | | | | |
| Basic weighted average common shares outstanding | | | 66,147 | | | | 63,574 | | | | 66,912 | | | | 65,128 | |
| | | | | | | | | | | | | |
Diluted net income (loss) per share: | | | | | | | | | | | | | | | | |
| Continuing operations | | $ | 0.09 | | | $ | 0.62 | | | $ | 0.15 | | | $ | 0.14 | |
| Discontinued operations | | | (0.20 | ) | | | (1.39 | ) | | | (0.04 | ) | | | (0.36 | ) |
| | | | | | | | | | | | | |
| Total diluted net income (loss) per share | | $ | (0.11 | ) | | $ | (0.77 | ) | | $ | 0.11 | | | $ | (0.22 | ) |
| | | | | | | | | | | | | |
| Diluted weighted average common shares outstanding | | | 67,626 | | | | 65,119 | | | | 68,122 | | | | 66,317 | |
| | | | | | | | | | | | | |
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Condensed Consolidated Balance Sheets
(In thousands)
| | | | | | | | | |
| | | December 31 | |
| | | 2007 | | | 2006 | |
Assets | | | | | | | | |
| Current assets | | $ | 367,407 | | | $ | 339,920 | |
| Property and equipment, net | | | 81,939 | | | | 61,212 | |
| Goodwill | | | 202,829 | | | | 151,600 | |
| Deferred taxes, net | | | 30,386 | | | | 49,317 | |
| Other assets | | | 28,188 | | | | 43,405 | |
| Long-term assets held for sale | | | — | | | | 659 | |
| | | | | | | |
| Total assets | | $ | 710,749 | | | $ | 646,113 | |
| | | | | | | |
| | | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | |
| Current liabilities | | $ | 207,945 | | | $ | 175,878 | |
| Other liabilities | | | 27,960 | | | | 36,521 | |
| Long-term debt | | | 160,279 | | | | 128,407 | |
| Long-term liabilities related to assets held for sale | | | — | | | | 596 | |
| Shareholders’ equity | | | 314,565 | | | | 304,711 | |
| | | | | | | |
| Total liabilities and shareholders’ equity | | $ | 710,749 | | | $ | 646,113 | |
| | | | | | | |
Condensed Consolidated Statements of Cash Flows
(In thousands)
| | | | | | | | | |
| | | Years Ended December 31, | |
| | | 2007 | | | 2006 | |
| Net cash provided by operating activities | | $ | 68,698 | | | $ | 46,394 | |
| Net cash used in investing activities | | | (62,457 | ) | | | (94,732 | ) |
| Net cash provided by financing activities | | | 32,756 | | | | 81,783 | |
| | | | | | | |
| Net increase in cash and cash equivalents | | | 38,997 | | | | 33,445 | |
| Net effect of translation on cash | | | 9 | | | | (187 | ) |
| Cash and cash equivalents—beginning of period | | | 35,282 | | | | 2,024 | |
| | | | | | | |
| Cash and cash equivalents—end of period | | $ | 74,288 | | | $ | 35,282 | |
| | | | | | | |
MasTec will hold a conference call to discuss these results on February 28, 2008 at 10:30 a.m. Eastern time. The call-in number for the conference call is (913) 312-0981 and the replay number is (719) 457-0820, with a pass code of 1076450. 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 our website at www.mastec.com. MasTec has filed its Form 10-K annual report with the Securities and Exchange Commission, which is available, free of charge, through the investor relations page of the Company’s website, or by request through MasTec’s investor relations department.
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 communication and utility infrastructure systems. The Company’s corporate website is located atwww.mastec.com.
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MasTec, Inc.
Reconciliation of Non-GAAP Disclosures- Unaudited
| | | | | | | | | |
| | | For the Year Ended | |
| | | December 31, 2007 | |
| Reconciliation of Earnings per Share, | | | | | | |
| excluding charges for legacy | | | | | | |
| litigation, claims and other disputes: | | Per Share | | | Total (000s) | |
| Income from continuing operations per common share, in accordance with GAAP - diluted | | $ | 0.09 | | | $ | 6,283 | |
| Charge for settlement of litigation, claims and other disputes | | | 0.58 | | | | 39,260 | |
| | | | | | | |
| Income from continuing operations per common share, excluding charge for settlement of litigation, claims and other disputes- diluted | | $ | 0.67 | | | $ | 45,543 | |
| | | | | | | |
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 revenues, margins and earnings per share may differ from that projected; that we may be impacted by business and economic conditions affecting us or our customers, including economic downturns, reduced capital expenditures, consolidation and technological and regulatory changes in the industries we serve and any liquidity issues related to our securities held for sale; material changes in estimates for legal costs or case settlements; 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 to terminate or reduce the amount of work, or in some cases prices paid for services under many of our contracts; the adequacy of our insurance, legal and other reserves and allowances for doubtful accounts; any exposure related to our recently sold DOT projects and assets; restrictions imposed by our credit facility and senior notes; the outcome of our plans for future operations, growth, and services, including backlog and acquisitions; 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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