- First Quarter 2023 Revenue Increased 32% Over Same
Quarter Last Year
- First Quarter 2023 Results Include GAAP Net Loss of
$80.5 Million, Adjusted EBITDA of
$102.5 Million, Diluted Loss Per
Share of $1.05 and Adjusted Diluted
Loss Per Share of $0.54, Exceeding
Guidance Expectations by $0.07 and
$0.03 Per Share,
Respectively
- Record 18-month Backlog as of March 31, 2023 of $13.9
Billion, a 31% increase Over the Same Quarter Last
Year
- Annual 2023 Guidance Range Includes Revenue of
$13.0 to $13.2
Billion, GAAP Net Income of $165 to $200
Million, Adjusted EBITDA of $1.10 to $1.15
Billion, Diluted Earnings Per Share of $2.11 to $2.55 and
Adjusted Diluted Earnings Per Share of $4.35 to $4.85
CORAL
GABLES, Fla., May 4, 2023
/PRNewswire/ -- MasTec, Inc. (NYSE: MTZ) today announced 2023 first
quarter financial results and updated its full year 2023 guidance
range expectation.
First quarter 2023 revenue was up 32.2% to $2.58 billion, compared to $1.95 billion for the first quarter of 2022. GAAP
net loss was $80.5 million, or
$1.05 per diluted share, compared to
a net loss of $35.0 million, or
$0.47 per diluted share, in the first
quarter of 2022. First quarter results include acquisition and
integration costs of $17.1 million
related to recent acquisition activity.
First quarter 2023 adjusted net loss and adjusted diluted loss
per share, both non-GAAP measures, were $41.9 million and $0.54, respectively, as compared to adjusted net
loss and adjusted diluted loss per share of $2.0 million and $0.03, respectively, in the first quarter of
2022. First quarter 2023 adjusted EBITDA, also a non-GAAP measure,
was $102.5 million, compared to
$98.7 million in the first quarter of
2022. As expected, first quarter 2023 results reflect the impact of
project inefficiencies, primarily at acquired entities, and
relatively low volume in our Clean Energy and Oil & Gas
segments that reduced fixed cost leverage. The Company's overall
performance reflects the expected significant shift in 2023
operations to non-Oil & Gas segments, as evidenced by record
first quarter backlog in the non-Oil & Gas segments as of
March 31, 2023.
18-month backlog as of March 31,
2023, was $13.9 billion, up 7%
sequentially from the fourth quarter of 2022, and up 31% compared
to last year's first quarter.
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, "As we begin a new year, I am excited
and proud of how we have positioned MasTec to participate in some
of the fastest growing areas of our economy. Our evolution over the
last few years to focus on our nation's energy transition, coupled
with our strength in fiber and wireless construction,
uniquely positions us in these high-demand markets."
Mr. Mas continued, "Our first quarter was in line with our prior
expectations and the year is shaping up as we anticipated. I expect
2023 to be not only a great year, but one in which our
diversification strategy is clearly evidenced in our financial
results."
Paul DiMarco, MasTec's Executive
Vice President and Chief Financial Officer, noted, "We continue to
maintain a strong balance sheet and liquidity profile to support
the expected growth in all of our segments. Additionally, we are
committed to improve leverage metrics in 2023 through the
combination of strong cash flow, improved operating performance and
moderated levels of capital expenditures and strategic investments.
Maintaining our Investment Grade rating is a priority. We've had
good dialogue with the rating agencies on our expected leverage
reduction, as evidenced by Standard and Poor's recent affirmative
action."
Based on the information available today, the Company is
providing second quarter and updating full year 2023 guidance. The
Company currently expects full year 2023 revenue to range from
$13.0 to $13.2
billion. GAAP net income and diluted earnings per share for
full year 2023 are expected to range between $165 million and $200
million and $2.11 and
$2.55, respectively. Full year 2023
adjusted EBITDA is expected to range between $1.10 billion and $1.15
billion, representing between 8.5% and 8.7% of revenue, and
adjusted diluted earnings per share is expected to range between
$4.35 and $4.85.
For the second quarter of 2023, the Company expects revenue of
approximately $3.0 billion. Second
quarter 2023 GAAP net income is expected to approximate
$19 million, with GAAP diluted
earnings per share expected to be $0.24. Second quarter 2023 adjusted EBITDA is
expected to approximate $250 million
or 8.3% of revenue, with adjusted diluted earnings per share
expected to be $0.86.
Management will hold a conference call to discuss these results
on Friday, May 5, 2023 at
9:00 a.m. Eastern Time. The call-in
number for the conference call is (856) 344-9221 or (888) 254-3590
with a pass code of 9075337. Additionally, the call will be
broadcast live over the Internet and can be accessed and replayed
for 60 days 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 March 31, 2023 and
2022:
Consolidated
Statements of Operations (unaudited - in thousands, except
per share information)
|
|
|
|
For the Three Months
Ended March 31,
|
|
2023
|
|
2022
|
Revenue
|
$
2,584,659
|
|
$
1,954,400
|
Costs of revenue,
excluding depreciation and amortization
|
2,359,494
|
|
1,733,316
|
Depreciation
|
107,247
|
|
85,194
|
Amortization of
intangible assets
|
41,944
|
|
25,589
|
General and
administrative expenses
|
163,914
|
|
145,390
|
Interest expense,
net
|
52,693
|
|
16,041
|
Equity in earnings of
unconsolidated affiliates, net
|
(9,152)
|
|
(6,777)
|
Other (income) expense,
net
|
(6,201)
|
|
3,754
|
Loss before income
taxes
|
$
(125,280)
|
|
$
(48,107)
|
Benefit from income
taxes
|
44,734
|
|
13,148
|
Net
loss
|
$
(80,546)
|
|
$
(34,959)
|
Net (loss) income
attributable to non-controlling interests
|
(6)
|
|
19
|
Net loss
attributable to MasTec, Inc.
|
$
(80,540)
|
|
$
(34,978)
|
|
|
|
|
Loss per
share:
|
|
|
|
Basic and diluted loss
per share
|
$
(1.05)
|
|
$
(0.47)
|
Basic and diluted
weighted average common shares outstanding
|
76,984
|
|
74,789
|
Consolidated Balance
Sheets (unaudited - in thousands)
|
|
|
March 31,
2023
|
|
December 31,
2022
|
Assets
|
|
|
|
Current
assets
|
$
3,656,663
|
|
$
3,859,127
|
Property and equipment,
net
|
1,730,602
|
|
1,754,101
|
Operating lease
right-of-use assets
|
276,231
|
|
279,534
|
Goodwill,
net
|
2,065,602
|
|
2,045,041
|
Other intangible
assets, net
|
904,412
|
|
946,299
|
Other long-term
assets
|
421,826
|
|
409,157
|
Total
assets
|
$
9,055,336
|
|
$
9,293,259
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Current
liabilities
|
$
2,378,535
|
|
$
2,496,037
|
Long-term debt,
including finance leases
|
3,045,526
|
|
3,052,193
|
Long-term operating
lease liabilities
|
190,132
|
|
194,050
|
Deferred income
taxes
|
535,531
|
|
571,401
|
Other long-term
liabilities
|
257,980
|
|
238,391
|
Total equity
|
2,647,632
|
|
2,741,187
|
Total liabilities
and equity
|
$
9,055,336
|
|
$
9,293,259
|
Consolidated
Statements of Cash Flows (unaudited - in
thousands)
|
|
|
|
|
For the Three Months
Ended March 31,
|
|
|
|
2023
|
|
2022
|
Net cash (used in)
provided by operating activities
|
|
|
$
(86,371)
|
|
$
131,518
|
Net cash used in
investing activities
|
|
|
(89,486)
|
|
(101,361)
|
Net cash used in
financing activities
|
|
|
(53,442)
|
|
(158,016)
|
Effect of currency
translation on cash
|
|
|
267
|
|
256
|
Net decrease in cash
and cash equivalents
|
|
|
(229,032)
|
|
(127,603)
|
Cash and cash
equivalents - beginning of period
|
|
|
$
370,592
|
|
$
360,736
|
Cash and cash
equivalents - end of period
|
|
|
$
141,560
|
|
$
233,133
|
|
|
|
|
|
|
|
|
|
|
|
|
Backlog by
Reportable Segment (unaudited - in millions)
|
March
31,
2023
|
|
December
31,
2022
|
|
March
31,
2022
|
Communications
|
$
5,602
|
|
$
5,303
|
|
$
4,920
|
Clean Energy and
Infrastructure
|
3,546
|
|
3,227
|
|
1,693
|
Oil and Gas
|
2,013
|
|
1,740
|
|
1,382
|
Power
Delivery
|
2,731
|
|
2,709
|
|
2,650
|
Other
|
—
|
|
—
|
|
—
|
Estimated 18-month
backlog
|
$
13,892
|
|
$
12,979
|
|
$
10,645
|
Backlog is a common measurement used in our industry. Our
methodology for determining backlog may not, however, be comparable
to the methodologies used by others. Estimated backlog
represents the amount of revenue we expect to realize over the next
18 months from future work on uncompleted construction contracts,
including new contracts under which work has not begun, as well as
revenue from change orders and renewal options. Our estimated
backlog also includes amounts under master service and other
service agreements and our proportionate share of estimated revenue
from proportionately consolidated non-controlled contractual joint
ventures. Estimated backlog for work under master service and
other service agreements is determined based on historical trends,
anticipated seasonal impacts, experience from similar projects and
estimates of customer demand based on communications with our
customers.
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures (unaudited - in millions, except for percentages
and per share information)
|
|
|
For the Three Months
Ended March 31,
|
Segment
Information
|
2023
|
|
2022
|
Revenue by
Segment
|
|
|
|
Communications
|
$
806.6
|
|
$
664.2
|
Clean Energy and
Infrastructure
|
824.9
|
|
435.9
|
Oil and Gas
|
256.5
|
|
211.0
|
Power
Delivery
|
709.4
|
|
650.5
|
Other
|
—
|
|
—
|
Eliminations
|
(12.7)
|
|
(7.2)
|
Consolidated
revenue
|
$
2,584.7
|
|
$
1,954.4
|
|
|
|
For the Three Months
Ended March 31,
|
|
2023
|
|
2022
|
Adjusted EBITDA by
Segment
|
|
|
|
EBITDA
|
$
76.6
|
|
$
78.7
|
Non-cash stock-based
compensation expense (a)
|
8.5
|
|
6.3
|
Acquisition and
integration costs (b)
|
17.1
|
|
13.6
|
Losses on fair value
of investment (a)
|
0.2
|
|
—
|
Adjusted
EBITDA
|
$
102.5
|
|
$
98.7
|
Segment:
|
|
|
|
Communications
|
$
61.7
|
|
$
41.1
|
Clean Energy and
Infrastructure
|
10.5
|
|
10.9
|
Oil and Gas
|
14.5
|
|
23.5
|
Power
Delivery
|
49.1
|
|
53.2
|
Other
|
7.1
|
|
6.9
|
Segment
Total
|
142.9
|
|
135.6
|
Corporate
|
(40.4)
|
|
(36.9)
|
Adjusted
EBITDA
|
$
102.5
|
|
$
98.7
|
|
|
(a)
|
Non-cash stock-based
compensation expense and losses on the fair value of our investment
in AVCT are included within Corporate results.
|
(b)
|
For the three month
period ended March 31, 2023, Communications, Clean Energy and
Infrastructure and Power Delivery EBITDA included $8.9 million,
$5.2 million and $1.7 million, respectively, of acquisition and
integration costs related to our recent acquisitions, and Corporate
EBITDA included $1.3 million of such costs. For the three
month period ended March 31, 2022, Communications, Oil and Gas and
Power Delivery EBITDA included $0.8 million, $2.0 million and $7.0
million, respectively, of such acquisition and integration costs,
and Corporate EBITDA included $3.8 million.
|
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures (unaudited - in millions, except for percentages
and per share information)
|
|
|
For the Three Months
Ended March 31,
|
|
2023
|
|
2022
|
Adjusted EBITDA
Margin by Segment
|
|
|
|
EBITDA
Margin
|
3.0 %
|
|
4.0 %
|
Non-cash stock-based
compensation expense (a)
|
0.3 %
|
|
0.3 %
|
Acquisition and
integration costs (b)
|
0.7 %
|
|
0.7 %
|
Losses on fair value
of investment (a)
|
0.0 %
|
|
— %
|
Adjusted EBITDA
margin
|
4.0 %
|
|
5.0 %
|
Segment:
|
|
|
|
Communications
|
7.7 %
|
|
6.2 %
|
Clean Energy and
Infrastructure
|
1.3 %
|
|
2.5 %
|
Oil and Gas
|
5.7 %
|
|
11.1 %
|
Power
Delivery
|
6.9 %
|
|
8.2 %
|
Other
|
NM
|
|
NM
|
Segment
Total
|
5.5 %
|
|
6.9 %
|
Corporate
|
—
|
|
—
|
Adjusted EBITDA
margin
|
4.0 %
|
|
5.0 %
|
|
|
NM - Percentage is not
meaningful
|
Note: The
Communications, Clean Energy and Infrastructure, and Power Delivery
segments represent the "non-Oil & Gas"
segments.
|
(a)
|
Non-cash stock-based
compensation expense and losses on the fair value of our investment
in AVCT are included within Corporate results.
|
(b)
|
For the three month
period ended March 31, 2023, Communications, Clean Energy and
Infrastructure and Power Delivery EBITDA included $8.9 million,
$5.2 million and $1.7 million, respectively, of acquisition and
integration costs related to our recent acquisitions, and Corporate
EBITDA included $1.3 million of such costs. For the three
month period ended March 31, 2022, Communications, Oil and Gas and
Power Delivery EBITDA included $0.8 million, $2.0 million and $7.0
million, respectively, of such acquisition and integration costs,
and Corporate EBITDA included $3.8 million.
|
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures (unaudited - in millions, except for percentages
and per share information)
|
|
|
|
For the Three Months
Ended March 31,
|
|
2023
|
|
2022
|
EBITDA and Adjusted
EBITDA Reconciliation
|
|
|
|
Net
loss
|
$
(80.5)
|
|
$
(35.0)
|
Interest expense,
net
|
52.7
|
|
16.0
|
Benefit from income
taxes
|
(44.7)
|
|
(13.1)
|
Depreciation
|
107.2
|
|
85.2
|
Amortization of
intangible assets
|
41.9
|
|
25.6
|
EBITDA
|
$
76.6
|
|
$
78.7
|
Non-cash stock-based
compensation expense
|
8.5
|
|
6.3
|
Acquisition and
integration costs
|
17.1
|
|
13.6
|
Losses on fair value
of investment
|
0.2
|
|
—
|
Adjusted
EBITDA
|
$
102.5
|
|
$
98.7
|
|
|
|
For the Three Months
Ended March 31,
|
|
2023
|
|
2022
|
EBITDA and Adjusted
EBITDA Margin Reconciliation
|
|
|
|
Net
loss
|
(3.1) %
|
|
(1.8) %
|
Interest expense,
net
|
2.0 %
|
|
0.8 %
|
Benefit from income
taxes
|
(1.7) %
|
|
(0.7) %
|
Depreciation
|
4.1 %
|
|
4.4 %
|
Amortization of
intangible assets
|
1.6 %
|
|
1.3 %
|
EBITDA
margin
|
3.0 %
|
|
4.0 %
|
Non-cash stock-based
compensation expense
|
0.3 %
|
|
0.3 %
|
Acquisition and
integration costs
|
0.7 %
|
|
0.7 %
|
Losses on fair value
of investment
|
0.0 %
|
|
— %
|
Adjusted EBITDA
margin
|
4.0 %
|
|
5.0 %
|
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures (unaudited - in millions, except for percentages
and per share information)
|
|
|
|
|
|
For the Three Months
Ended March 31,
|
|
|
|
|
2023
|
|
2022
|
Adjusted Net Income
Reconciliation
|
|
|
|
|
|
|
Net
loss
|
|
|
|
$
(80.5)
|
|
$
(35.0)
|
Non-cash stock-based
compensation expense
|
|
|
|
8.5
|
|
6.3
|
Amortization of
intangible assets
|
|
|
|
41.9
|
|
25.6
|
Acquisition and
integration costs
|
|
|
|
17.1
|
|
13.6
|
Losses on fair value
of investment
|
|
|
|
0.2
|
|
—
|
Income tax effect of
adjustments (a)
|
|
|
|
(29.2)
|
|
(12.5)
|
Adjusted net
loss
|
|
|
|
$
(41.9)
|
|
$
(2.0)
|
|
|
|
|
|
|
For the Three Months
Ended March 31,
|
|
|
|
|
2023
|
|
2022
|
Adjusted Diluted
Earnings per Share Reconciliation
|
|
|
|
|
|
|
Diluted loss per
share
|
|
|
|
$
(1.05)
|
|
$
(0.47)
|
Non-cash stock-based
compensation expense
|
|
|
|
0.11
|
|
0.08
|
Amortization of
intangible assets
|
|
|
|
0.54
|
|
0.34
|
Acquisition and
integration costs
|
|
|
|
0.22
|
|
0.18
|
Losses on fair value
of investment
|
|
|
|
0.00
|
|
—
|
Income tax effect of
adjustments (a)
|
|
|
|
(0.38)
|
|
(0.17)
|
Adjusted diluted
loss per share
|
|
|
|
$
(0.54)
|
|
$
(0.03)
|
|
|
(a)
|
Represents the tax
effects of the adjusted items that are subject to tax, including
the tax effects of non-cash stock-based compensation expense,
including from the vesting of share-based payment awards. Tax
effects are determined based on the tax treatment of the related
item, the incremental statutory tax rate of the jurisdictions
pertaining to the adjustment, and their effects on pre-tax
income.
|
Calculation of Net
Debt
|
March 31,
2023
|
|
December 31,
2022
|
Current portion of
long-term debt, including finance leases
|
$
166.7
|
|
$
171.9
|
Long-term debt,
including finance leases
|
3,045.5
|
|
3,052.2
|
Less: cash and cash
equivalents
|
(141.6)
|
|
(370.6)
|
Net
Debt
|
$
3,070.6
|
|
$
2,853.5
|
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures (unaudited - in millions, except for percentages
and per share information)
|
|
|
Guidance for the
Year Ended
December 31,
2023 Est.
|
|
For the Year
Ended December
31, 2022
|
|
For the Year
Ended December
31, 2021
|
EBITDA and Adjusted
EBITDA Reconciliation
|
|
|
|
|
|
Net
income
|
$
165 - 200
|
|
$
33.9
|
|
$
330.7
|
Interest expense,
net
|
215
|
|
112.3
|
|
53.4
|
Provision for income
taxes
|
54 - 66
|
|
9.2
|
|
99.3
|
Depreciation
|
428
|
|
371.2
|
|
345.6
|
Amortization of
intangible assets
|
168
|
|
135.9
|
|
77.2
|
EBITDA
|
$ 1,030 –
1,076
|
|
$
662.5
|
|
$
906.3
|
Non-cash stock-based
compensation expense
|
34
|
|
27.4
|
|
24.8
|
Acquisition and
integration costs
|
35 - 40
|
|
86.0
|
|
3.6
|
Bargain purchase
gain
|
—
|
|
(0.2)
|
|
(3.5)
|
Losses on fair value
of investment
|
0
|
|
7.7
|
|
7.8
|
Project results from
non-controlled joint venture
|
—
|
|
(2.8)
|
|
—
|
Adjusted
EBITDA
|
$
1,100 – 1,150
|
|
$
780.6
|
|
$
939.1
|
|
|
|
Guidance for the
Year Ended
December 31,
2023 Est.
|
|
For the Year
Ended December
31, 2022
|
|
For the Year
Ended December
31, 2021
|
EBITDA and Adjusted
EBITDA Margin Reconciliation
|
|
|
|
|
|
Net
income
|
1.3 - 1.5
%
|
|
0.3 %
|
|
4.2 %
|
Interest expense,
net
|
1.6 – 1.7 %
|
|
1.1 %
|
|
0.7 %
|
Provision for income
taxes
|
0.4 – 0.5 %
|
|
0.1 %
|
|
1.2 %
|
Depreciation
|
3.2 – 3.3
%
|
|
3.8 %
|
|
4.3 %
|
Amortization of
intangible assets
|
1.3 %
|
|
1.4 %
|
|
1.0 %
|
EBITDA
margin
|
7.9 – 8.2
%
|
|
6.8 %
|
|
11.4 %
|
Non-cash stock-based
compensation expense
|
0.3 %
|
|
0.3 %
|
|
0.3 %
|
Acquisition and
integration costs
|
0.3 %
|
|
0.9 %
|
|
0.0 %
|
Bargain purchase
gain
|
— %
|
|
(0.0) %
|
|
(0.0) %
|
Losses on fair value
of investment
|
0.0 %
|
|
0.1 %
|
|
0.1 %
|
Project results from
non-controlled joint venture
|
— %
|
|
(0.0) %
|
|
— %
|
Adjusted EBITDA
margin
|
8.5 – 8.7
%
|
|
8.0 %
|
|
11.8 %
|
Supplemental
Disclosures and Reconciliation of Non-GAAP Disclosures -
Unaudited (unaudited - in millions, except for percentages
and per share information)
|
|
|
Guidance for the
Year Ended
December 31,
2023 Est.
|
|
For the Year
Ended December
31, 2022
|
|
For the Year
Ended December
31, 2021
|
Adjusted Net Income
Reconciliation
|
|
|
|
|
|
Net
income
|
$
165 - 200
|
|
$
33.9
|
|
$
330.7
|
Non-cash stock-based
compensation expense
|
34
|
|
27.4
|
|
24.8
|
Amortization of
intangible assets
|
168
|
|
135.9
|
|
77.2
|
Acquisition and
integration costs
|
35 - 40
|
|
86.0
|
|
3.6
|
Bargain purchase
gain
|
—
|
|
(0.2)
|
|
(3.5)
|
Losses on fair value
of investment
|
0
|
|
7.7
|
|
7.8
|
Project results from
non-controlled joint venture
|
—
|
|
(2.8)
|
|
—
|
Income tax effect of
adjustments (a)
|
(60) –
(61)
|
|
(58.6)
|
|
(27.4)
|
Statutory tax rate
effects (b)
|
—
|
|
5.5
|
|
6.7
|
Adjusted net
income
|
$
342 - 380
|
|
$
234.8
|
|
$
420.0
|
|
|
|
Guidance for the
Year Ended
December 31,
2023 Est.
|
|
For the Year
Ended December
31, 2022
|
|
For the Year
Ended December
31, 2021
|
Adjusted Diluted
Earnings per Share Reconciliation
|
|
|
|
|
|
Diluted earnings per
share
|
$
2.11 – 2.55
|
|
$
0.42
|
|
$
4.45
|
Non-cash stock-based
compensation expense
|
0.43
|
|
0.36
|
|
0.34
|
Amortization of
intangible assets
|
2.14
|
|
1.78
|
|
1.04
|
Acquisition and
integration costs
|
0.45 – 0.51
|
|
1.13
|
|
0.05
|
Bargain purchase
gain
|
—
|
|
(0.00)
|
|
(0.05)
|
Losses on fair value
of investment
|
0.00
|
|
0.10
|
|
0.11
|
Project results from
non-controlled joint venture
|
—
|
|
(0.04)
|
|
—
|
Income tax effect of
adjustments (a)
|
(0.77) –
(0.78)
|
|
(0.77)
|
|
(0.37)
|
Statutory tax rate
effects (b)
|
—
|
|
0.07
|
|
0.09
|
Adjusted diluted
earnings per share
|
$
4.35 – 4.85
|
|
$
3.05
|
|
$
5.65
|
|
|
(a)
|
Represents the tax
effects of the adjusted items that are subject to tax, including
the tax effects of non-cash stock-based compensation expense,
including from the vesting of share-based payment awards. Tax
effects are determined based on the tax treatment of the related
item, the incremental statutory tax rate of the jurisdictions
pertaining to the adjustment, and their effects on pre-tax
income.
|
(b)
|
For the years ended
December 31, 2022 and 2021, includes the effect of changes in state
tax rates.
|
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures (unaudited - in millions, except for percentages
and per share information)
|
|
|
Guidance for the
Three Months Ended
June 30, 2023 Est.
|
|
For the Three
Months
Ended June 30, 2022
|
EBITDA and Adjusted
EBITDA Reconciliation
|
|
|
|
Net
income
|
$
19
|
|
$
16.3
|
Interest expense,
net
|
57
|
|
19.4
|
Provision for income
taxes
|
9
|
|
2.0
|
Depreciation
|
105
|
|
87.0
|
Amortization of
intangible assets
|
42
|
|
27.7
|
EBITDA
|
$
231
|
|
$
152.3
|
Non-cash stock-based
compensation expense
|
9
|
|
6.8
|
Acquisition and
integration costs
|
10
|
|
12.5
|
Bargain purchase
gain
|
—
|
|
(0.2)
|
Losses on fair value
of investment
|
—
|
|
7.1
|
Adjusted
EBITDA
|
$
250
|
|
$
178.5
|
|
|
|
Guidance for the
Three Months Ended
June 30, 2023 Est.
|
|
For the Three
Months
Ended June 30, 2022
|
EBITDA and Adjusted
EBITDA Margin Reconciliation
|
|
|
|
Net
income
|
0.6 %
|
|
0.7 %
|
Interest expense,
net
|
1.9 %
|
|
0.8 %
|
Provision for income
taxes
|
0.3 %
|
|
0.1 %
|
Depreciation
|
3.5 %
|
|
3.8 %
|
Amortization of
intangible assets
|
1.4 %
|
|
1.2 %
|
EBITDA
margin
|
7.7 %
|
|
6.6 %
|
Non-cash stock-based
compensation expense
|
0.3 %
|
|
0.3 %
|
Acquisition and
integration costs
|
0.3 %
|
|
0.5 %
|
Bargain purchase
gain
|
— %
|
|
(0.0) %
|
Losses on fair value
of investment
|
— %
|
|
0.3 %
|
Adjusted EBITDA
margin
|
8.3 %
|
|
7.8 %
|
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures (unaudited - in millions, except for percentages
and per share information)
|
|
|
Guidance for the
Three Months Ended
June 30, 2023 Est.
|
|
For the Three
Months
Ended June 30, 2022
|
Adjusted Net Income
Reconciliation
|
|
|
|
Net
income
|
$
19
|
|
$
16.3
|
Non-cash stock-based
compensation expense
|
9
|
|
6.8
|
Amortization of
intangible assets
|
42
|
|
27.7
|
Acquisition and
integration costs
|
10
|
|
12.5
|
Bargain purchase
gain
|
—
|
|
(0.2)
|
Losses on fair value
of investment
|
—
|
|
7.1
|
Income tax effect of
adjustments (a)
|
(12)
|
|
(14.2)
|
Statutory tax rate
effects
|
—
|
|
—
|
Adjusted net
income
|
$
67
|
|
$
56.0
|
|
|
|
Guidance for the
Three Months Ended
June 30, 2023 Est.
|
|
For the Three
Months
Ended June 30, 2022
|
Adjusted Diluted
Earnings per Share Reconciliation
|
|
|
|
Diluted earnings per
share
|
$
0.24
|
|
$
0.20
|
Non-cash stock-based
compensation expense
|
0.11
|
|
0.09
|
Amortization of
intangible assets
|
0.54
|
|
0.37
|
Acquisition and
integration costs
|
0.13
|
|
0.17
|
Bargain purchase
gain
|
—
|
|
(0.00)
|
Losses on fair value
of investment
|
—
|
|
0.09
|
Income tax effect of
adjustments (a)
|
(0.16)
|
|
(0.19)
|
Statutory tax rate
effects
|
—
|
|
—
|
Adjusted diluted
earnings per share
|
$
0.86
|
|
$
0.73
|
|
|
(a)
|
Represents the tax
effects of the adjusted items that are subject to tax, including
the tax effects of non-cash stock-based compensation expense,
including from the vesting of share-based payment awards. Tax
effects are determined based on the tax treatment of the related
item, the incremental statutory tax rate of the jurisdictions
pertaining to the adjustment, and their effects 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 and
other infrastructure, such as: power delivery services, including
transmission and distribution, wireless, wireline/fiber and
customer fulfillment activities; power generation, primarily from
clean energy and renewable sources; pipeline infrastructure,
including natural gas pipeline and distribution infrastructure;
heavy civil; 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 and webcasts on
the Events & Presentations page in the Investors section
therein.
This presentation contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act.
Forward-looking statements include, but are not limited to,
statements relating to expectations regarding the future financial
and operational performance of MasTec; the projected impact and
benefits of IEA on MasTec's operating or financial results;
expectations regarding MasTec's business or financial outlook;
expectations regarding MasTec's plans, strategies and
opportunities; expectations regarding opportunities, technological
developments, competitive positioning, future economic conditions
and other trends in particular markets or industries; the potential
strategic benefits and synergies expected from the acquisition of
IEA; the development of and opportunities with respect to future
projects, including renewable and other projects designed to
support transition to a carbon-neutral economy; MasTec's ability to
successfully integrate the operations of IEA and related
integration costs; the impact of inflation on MasTec's costs and
the ability to recover increased costs, as well as other statements
reflecting expectations, intentions, assumptions or beliefs about
future events and other statements that do not relate strictly to
historical or current facts. These statements are based on
currently available operating, financial, economic and other
information, and are subject to a number of significant risks and
uncertainties. A variety of factors in addition to those mentioned
above, many of which are beyond our control, could cause actual
future results to differ materially from those projected in the
forward-looking statements. Other factors that might cause such a
difference include, but are not limited to: market
conditions, including levels of inflation, rising interest rates or
supply chain issues, technological developments,
regulatory or policy changes, including permitting processes and
tax incentives that affect us or our customers' industries; the
effect of federal, local, state, foreign or tax legislation and
other regulations affecting the industries we serve and related
projects and expenditures; the effect on demand for our services of
changes in the amount of capital expenditures by our customers due
to, among other things, economic conditions, including the
potential adverse effects of potential recessionary
concerns, inflationary issues, supply chain disruptions and higher
interest rates, the availability and cost of financing,
climate-related matters, customer consolidation in the
industries we serve and/or the effects of public health matters;
activity in the industries we serve and the impact on our
customers' expenditure levels caused by fluctuations in commodity
prices, including for fuel and energy sources, and/or
fluctuations in materials, labor, supplies, equipment and other
costs, or supply-related issues that affect availability or cause
delays for such items; our ability to manage projects
effectively and in accordance with our estimates, as well as 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 estimates of the
recoverability of change orders; risks related to completed
or potential acquisitions, including our ability to integrate
acquired businesses within expected timeframes, including their
business operations, internal controls and/or systems, which may be
found to have material weaknesses, and our ability to achieve the
revenue, cost savings and earnings levels from such acquisitions at
or above the levels projected, as well as the risk of potential
asset impairment charges and write-downs of
goodwill; our ability to attract and retain qualified
personnel, key management and skilled employees, including from
acquired businesses, our ability to enforce any noncompetition
agreements, and our ability to maintain a workforce based upon
current and anticipated workloads; any material changes
in estimates for legal costs or case settlements or adverse
determinations on any claim, lawsuit or proceeding; the adequacy of
our insurance, legal and other reserves; the timing and
extent of fluctuations in operational, geographic and weather
factors affecting our customers, projects and the industries in
which we operate; the highly competitive nature of our industry and
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, and/or customer disputes related to our performance of
services and the resolution of unapproved change orders;
requirements of and restrictions imposed by our credit facility,
term loans, senior notes and any future loans or securities;
the effect of state and federal regulatory initiatives,
including risks related to the costs of compliance with existing
and potential future environmental, social and governance
requirements, including with respect to climate-related
matters; our dependence on a limited number of customers and
our ability to replace non-recurring projects with new
projects; risks associated with potential environmental
issues and other hazards from our operations; disputes with, or
failures of, our subcontractors to deliver agreed-upon supplies or
services in a timely fashion, and the risk of being required to pay
our subcontractors even if our customers do not pay us; any
exposure resulting from system or information technology
interruptions or data security breaches; the outcome of our plans
for future operations, growth and services, including business
development efforts, backlog, acquisitions and dispositions;
risks related to our strategic arrangements, including our
equity investments; risks associated with volatility of
our stock price or any dilution or stock price volatility that
shareholders may experience in connection with shares we may issue
as purchase consideration in connection with past or future
acquisitions, or as consideration for earn-out obligations or as a
result of other stock issuances; our ability to obtain performance
and surety bonds; risks related to our operations that employ a
unionized workforce, including labor availability,
productivity and relations, as well as risks associated with
multiemployer union pension plans, including underfunding and
withdrawal liabilities; risks associated with operating in or
expanding into additional international markets, including risks
from fluctuations in foreign currencies, foreign labor and general
business conditions and risks from failure to comply with laws
applicable to our foreign activities and/or governmental policy
uncertainty; risks associated with material weaknesses
in our internal control over financial reporting and our ability to
remediate such weaknesses; a small number of our
existing shareholders have the ability to influence major corporate
decisions, as well as other risks detailed in our filings with the
Securities and Exchange Commission. We believe these
forward-looking statements are reasonable; however, you should not
place undue reliance on any forward-looking statements, which are
based on current expectations. Furthermore, forward-looking
statements speak only as of the date they are made. If any of these
risks or uncertainties materialize, or if any of our underlying
assumptions are incorrect, our actual results may differ
significantly from the results that we express in, or imply by, any
of our forward-looking statements. These and other risks are
detailed in our filings with the Securities and Exchange
Commission. We do not undertake any obligation to publicly update
or revise these forward-looking statements after the date of this
press release to reflect future events or circumstances, except as
required by applicable law. We qualify any and all of our
forward-looking statements by these cautionary factors.
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SOURCE MasTec, Inc.