- Record Fourth Quarter and Annual Revenue of $3.3 Billion and $12.0
Billion, Respectively
- Full Year 2023 Cash Flow from Operations of $687 Million, a 95% Increase Over Full Year
2022
- Fourth Quarter Reduction in Net Debt of $455 Million
- 2023 Results Include GAAP Net Loss of $47.3 Million, Adjusted Net Income of
$156.7 Million, Adjusted EBITDA of
$860.3 Million, Diluted Loss Per
Share of $0.64 and Adjusted Diluted
Earnings Per Share of $1.97
- Adjusted Diluted Earnings per Share was $0.22 Above the Prior Guidance
Estimate
- Issuing Initial Annual 2024 Guidance Including Revenue of
$12.5 Billion, a 4% Increase Over
2023, GAAP Net Income of $105
Million, Adjusted EBITDA of $955
Million, with Diluted Earnings Per Share of $1.04, and Adjusted Diluted Earnings Per Share of
$2.69
CORAL
GABLES, Fla., Feb. 29,
2024 /PRNewswire/ -- MasTec, Inc. (NYSE: MTZ) today
announced 2023 fourth quarter and full year financial results and
issued its initial 2024 guidance expectation.
For the Fourth Quarter:
Fourth quarter 2023 revenue was up 9.0% to $3.3 billion, compared to $3.0 billion for the fourth quarter of 2022. GAAP
net income was $1.2 million, or
$0.01 per diluted share, compared to
$3.4 million, or $0.04 per diluted share, in the fourth quarter of
2022.
Fourth quarter 2023 adjusted net income and adjusted diluted
earnings per share, both non-GAAP measures, were $52.0 million and $0.66, respectively, as compared to $80.0 million and $1.03, respectively, in the fourth quarter of
2022.
Fourth quarter 2023 adjusted EBITDA, also a non-GAAP measure,
was $231.4 million, compared to
$257.9 million in the fourth quarter
of 2022. Fourth quarter 2023 adjusted EBITDA margin rate was 7.1%
of revenue.
18-month backlog as of December 31,
2023 was $12.4
billion, with sequential growth in each segment,
excluding Oil & Gas, totaling $373
million. The Oil & Gas backlog decrease was
primarily related to the expected 2024 completion of a large
natural gas pipeline project.
Fourth quarter Cash Flow from Operations was very strong at
almost $500 million, enabling
significant net debt reduction. Net debt leverage ratio improved
significantly from 3.4 times at the end of the third quarter to 2.9
times at yearend.
For the Full Year:
For the year ended December 31,
2023, revenue was up 23% to $12.0
billion, compared to $9.8
billion for the prior year. GAAP net loss was $47.3 million, or a loss of $0.64 per diluted share, compared to net income
of $33.9 million, or earnings of
$0.42 per diluted share in 2022.
Full year 2023 adjusted net income and adjusted diluted earnings
per share, both non-GAAP measures, were $156.7 million and $1.97, respectively, compared to $234.8 million and $3.05, respectively, during 2022.
Full year 2023 adjusted EBITDA, also a non-GAAP measure, was up
10% to $860.3 million, compared to
$780.6 million in 2022. Full year
2023 adjusted EBITDA margin rate was 7.2% compared to 8.0% last
year.
Adjusted net income, adjusted diluted earnings per share,
adjusted EBITDA and net debt, which are all non-GAAP measures,
exclude certain items that 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, "Fourth quarter results were in line
with our expectations after a challenging 2023. We look forward to
the opportunities we have this year and expect to deliver record
levels of revenue and adjusted EBITDA in 2024. Demand is very
strong for our services, and I expect 2024 will position us to
deliver double digit revenue and earnings growth in 2025 and
beyond."
Mr. Mas continued, "I'd once again like to thank the 34,000 men
and women of MasTec who work every day to build, maintain, and
improve the nation's communications, transportation, energy, and
industrial infrastructure. It is hard work, and it's because of
them that we have great long-term opportunities."
Paul DiMarco, MasTec's Executive
Vice President, and Chief Financial Officer, noted, "I'm pleased
that we were able to finish 2023 with strong cash flow generation
of almost $500 million in Q4,
significantly exceeding our prior expectations. DSO, at 74 days was
at its lowest level since mid-2017. We are keenly focused on
capital allocation to ensure we are generating appropriate returns
on the capital we deploy. We will continue to focus on improving
the tools and processes we utilize to measure and optimize our
performance, and to capitalize on the robust demand environment
provided by our end markets."
Based on the information available today, the Company is
providing both first quarter and full year 2024 guidance. The
Company currently expects full year 2024 revenue will approximate
$12.5 billion, a record level. 2024
full year GAAP net income and diluted earnings per share are
expected to approximate $105 million
and $1.04, respectively. Full year
2024 adjusted EBITDA is expected to approximate $955 million, representing 7.6% of revenue, and
adjusted diluted earnings per share is expected to approximate
$2.69.
For the first quarter of 2024, the Company expects revenue of
approximately $2.6 billion. First
quarter 2024 GAAP net loss is expected to approximate $61 million, with GAAP diluted loss per share
expected to approximate $0.88. First
quarter 2024 adjusted EBITDA is expected to approximate
$130 million or 5.0% of revenue, with
adjusted diluted loss per share expected to approximate
$0.48. The projected loss in the
first quarter is the result of a normal seasonally slow quarter,
project delays and project start-up costs.
Management will hold a conference call to discuss these results
on Friday, March 1, 2024 at
9:00 a.m. Eastern Time. The call-in
number for the conference call is (856) 344-9221 or (888) 256-1007
with a pass code of 4316181. 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 webcast replay will be available for at least
30 days.
The following tables set forth the financial results for the
periods ended December 31, 2023 and
2022:
|
Consolidated
Statements of Operations
|
|
(unaudited - in
thousands, except per share information)
|
|
|
For the Three Months
Ended
December 31,
|
|
For the Years
Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Revenue
|
$ 3,280,083
|
|
$ 3,008,361
|
|
$
11,995,934
|
|
$ 9,778,038
|
|
Costs of revenue,
excluding depreciation and amortization
|
2,912,370
|
|
2,637,071
|
|
10,613,762
|
|
8,586,333
|
|
Depreciation
|
108,611
|
|
107,753
|
|
433,929
|
|
371,240
|
|
Amortization of
intangible assets
|
42,981
|
|
54,666
|
|
169,233
|
|
135,908
|
|
General and
administrative expenses
|
178,190
|
|
155,194
|
|
698,899
|
|
559,437
|
|
Interest expense,
net
|
59,741
|
|
49,942
|
|
234,405
|
|
112,255
|
|
Equity in earnings of
unconsolidated affiliates, net
|
(7,262)
|
|
(9,413)
|
|
(30,697)
|
|
(28,836)
|
|
Other (income) expense,
net
|
(14,562)
|
|
539
|
|
(40,893)
|
|
(1,358)
|
|
Income (loss) before
income taxes
|
$
15
|
|
$
12,609
|
|
$
(82,704)
|
|
$
43,059
|
|
Benefit from (provision
for) income taxes
|
1,177
|
|
(9,239)
|
|
35,408
|
|
(9,171)
|
|
Net income
(loss)
|
$
1,192
|
|
$
3,370
|
|
$
(47,296)
|
|
$
33,888
|
|
Net income
attributable to non-controlling interests
|
439
|
|
146
|
|
2,653
|
|
534
|
|
Net income (loss)
attributable to MasTec, Inc.
|
$
753
|
|
$
3,224
|
|
$
(49,949)
|
|
$
33,354
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
$
0.01
|
|
$
0.04
|
|
$
(0.64)
|
|
$
0.45
|
|
Basic weighted average
common shares outstanding
|
77,879
|
|
76,492
|
|
77,535
|
|
74,917
|
|
Diluted earnings
(loss) per share
|
$
0.01
|
|
$
0.04
|
|
$
(0.64)
|
|
$
0.42
|
|
Diluted weighted
average common shares outstanding
|
78,288
|
|
77,770
|
|
77,535
|
|
76,185
|
|
Consolidated Balance
Sheets
|
|
(unaudited - in
thousands)
|
|
|
December 31,
2023
|
|
December 31,
2022
|
|
Assets
|
|
|
|
|
Current
assets
|
$ 3,974,253
|
|
$ 3,859,127
|
|
Property and equipment,
net
|
1,651,462
|
|
1,754,101
|
|
Operating lease
right-of-use assets
|
418,685
|
|
279,534
|
|
Goodwill,
net
|
2,126,366
|
|
2,045,041
|
|
Other intangible
assets, net
|
784,260
|
|
946,299
|
|
Other long-term
assets
|
418,485
|
|
409,157
|
|
Total
assets
|
$
9,373,511
|
|
$
9,293,259
|
|
Liabilities and
Equity
|
|
|
|
|
Current
liabilities
|
$ 2,837,219
|
|
$ 2,496,037
|
|
Long-term debt,
including finance leases
|
2,888,058
|
|
3,052,193
|
|
Long-term operating
lease liabilities
|
292,873
|
|
194,050
|
|
Deferred income
taxes
|
390,399
|
|
571,401
|
|
Other long-term
liabilities
|
243,701
|
|
238,391
|
|
Total equity
|
2,721,261
|
|
2,741,187
|
|
Total liabilities
and equity
|
$
9,373,511
|
|
$
9,293,259
|
|
Consolidated
Statements of Cash Flows
|
|
(unaudited - in
thousands)
|
|
|
For the Years
Ended
December
31,
|
|
2023
|
|
2022
|
|
Net cash provided by
operating activities
|
$
687,277
|
|
$
352,297
|
|
Net cash used in
investing activities
|
(178,061)
|
|
(821,183)
|
|
Net cash (used in)
provided by financing activities
|
(350,998)
|
|
480,897
|
|
Effect of currency
translation on cash
|
751
|
|
(2,155)
|
|
Net increase in cash
and cash equivalents
|
158,969
|
|
9,856
|
|
Cash and cash
equivalents - beginning of period
|
$
370,592
|
|
$
360,736
|
|
Cash and cash
equivalents - end of period
|
$
529,561
|
|
$
370,592
|
|
Backlog by
Reportable Segment (unaudited - in millions)
|
December 31,
2023
|
|
September 30,
2023
|
|
December 31,
2022
|
|
Communications
|
$
5,627
|
|
$
5,299
|
|
$
5,303
|
|
Clean Energy and
Infrastructure
|
3,115
|
|
3,073
|
|
3,227
|
|
Power
Delivery
|
2,440
|
|
2,437
|
|
2,709
|
|
Oil and Gas
|
1,225
|
|
1,681
|
|
1,740
|
|
Other
|
—
|
|
—
|
|
—
|
|
Estimated 18-month
backlog
|
$
12,407
|
|
$
12,490
|
|
$
12,979
|
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
December 31,
|
|
For the Years
Ended
December
31,
|
|
Segment
Information
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Revenue by
Reportable Segment
|
|
|
|
|
|
|
|
|
Communications
|
$
759.9
|
|
$
858.6
|
|
$
3,259.5
|
|
$
3,233.7
|
|
Clean Energy and
Infrastructure
|
1,067.4
|
|
1,125.0
|
|
3,962.0
|
|
2,618.6
|
|
Power
Delivery
|
658.0
|
|
739.8
|
|
2,735.1
|
|
2,725.2
|
|
Oil and Gas
|
802.2
|
|
291.6
|
|
2,072.8
|
|
1,219.6
|
|
Other
|
—
|
|
—
|
|
—
|
|
—
|
|
Eliminations
|
(7.4)
|
|
(6.7)
|
|
(33.5)
|
|
(19.1)
|
|
Consolidated
revenue
|
$
3,280.1
|
|
$
3,008.4
|
|
$
11,995.9
|
|
$
9,778.0
|
|
|
For the Three Months
Ended
December 31,
|
|
For the Years
Ended
December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Adjusted EBITDA by
Segment
|
|
|
|
|
|
|
|
|
EBITDA
|
$
211.3
|
|
$
225.0
|
|
$
754.9
|
|
$
662.5
|
|
Non-cash stock-based
compensation expense (a)
|
9.0
|
|
8.6
|
|
33.3
|
|
27.4
|
|
Acquisition and
integration costs (b)
|
11.0
|
|
26.6
|
|
71.9
|
|
86.0
|
|
Losses, net, on fair
value of investment (a)
|
—
|
|
0.4
|
|
0.2
|
|
7.7
|
|
Project results from
non-controlled joint venture (c)
|
—
|
|
(2.8)
|
|
—
|
|
(2.8)
|
|
Bargain purchase gain
(a)
|
—
|
|
—
|
|
—
|
|
(0.2)
|
|
Adjusted
EBITDA
|
$
231.4
|
|
$
257.9
|
|
$
860.3
|
|
$
780.6
|
|
Segment:
|
|
|
|
|
|
|
|
|
Communications
|
$
57.7
|
|
$
94.9
|
|
$
291.7
|
|
$
331.8
|
|
Clean Energy and
Infrastructure
|
51.7
|
|
79.0
|
|
169.5
|
|
109.2
|
|
Power
Delivery
|
52.8
|
|
56.8
|
|
216.3
|
|
241.9
|
|
Oil and Gas
|
95.5
|
|
33.6
|
|
284.4
|
|
171.5
|
|
Other
|
6.8
|
|
9.0
|
|
25.0
|
|
29.0
|
|
Segment
Total
|
$
264.5
|
|
$
273.3
|
|
$
986.9
|
|
$
883.4
|
|
Corporate
|
(33.2)
|
|
(15.5)
|
|
(126.6)
|
|
(102.8)
|
|
Adjusted
EBITDA
|
$
231.4
|
|
$
257.9
|
|
$
860.3
|
|
$
780.6
|
|
|
|
(a)
|
Non-cash stock-based
compensation expense, losses, net, on the fair value of an
investment and the bargain purchase gain from a prior year
acquisition are included within Corporate EBITDA.
|
|
(b)
|
For the year ended
December 31, 2023, Communications, Clean Energy and Infrastructure
and Power Delivery EBITDA included $22.5 million, $37.1 million and
$8.5 million respectively, of acquisition and integration costs
related to our recent acquisitions, and Corporate EBITDA included
$3.8 million of such costs. For the year ended December 31,
2022, Communications, Clean Energy and Infrastructure, Power
Delivery, Oil and Gas and Corporate EBITDA included $4.7 million,
$6.4 million, $39.0 million, $8.0 million and $27.9 million of such
acquisition and integrations costs, respectively.
|
|
(c)
|
Project results from a
non-controlled joint venture are included within Other segment
results
|
|
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures
|
|
(unaudited - in
millions, except for percentages and per share
information)
|
|
|
For the Three Months
Ended
December 31,
|
|
For the
Years
Ended December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Adjusted EBITDA
Margin by Segment
|
|
|
|
|
|
|
|
|
EBITDA
Margin
|
6.4 %
|
|
7.5 %
|
|
6.3 %
|
|
6.8 %
|
|
Non-cash stock-based
compensation expense (a)
|
0.3 %
|
|
0.3 %
|
|
0.3 %
|
|
0.3 %
|
|
Acquisition and
integration costs (b)
|
0.3 %
|
|
0.9 %
|
|
0.6 %
|
|
0.9 %
|
|
Losses, net, on fair
value of investment (a)
|
— %
|
|
0.0 %
|
|
0.0 %
|
|
0.1 %
|
|
Project results from
non-controlled joint venture (c)
|
— %
|
|
(0.1) %
|
|
— %
|
|
(0.0) %
|
|
Bargain purchase gain
(a)
|
— %
|
|
— %
|
|
— %
|
|
(0.0) %
|
|
Adjusted EBITDA
margin
|
7.1 %
|
|
8.6 %
|
|
7.2 %
|
|
8.0 %
|
|
Segment:
|
|
|
|
|
|
|
|
|
Communications
|
7.6 %
|
|
11.1 %
|
|
8.9 %
|
|
10.3 %
|
|
Clean Energy and
Infrastructure
|
4.8 %
|
|
7.0 %
|
|
4.3 %
|
|
4.2 %
|
|
Power
Delivery
|
8.0 %
|
|
7.7 %
|
|
7.9 %
|
|
8.9 %
|
|
Oil and Gas
|
11.9 %
|
|
11.5 %
|
|
13.7 %
|
|
14.1 %
|
|
Other
|
NM
|
|
NM
|
|
NM
|
|
NM
|
|
Segment
Total
|
8.1 %
|
|
9.1 %
|
|
8.2 %
|
|
9.0 %
|
|
Corporate
|
— %
|
|
— %
|
|
— %
|
|
— %
|
|
Adjusted EBITDA
margin
|
7.1 %
|
|
8.6 %
|
|
7.2 %
|
|
8.0 %
|
|
|
NM - Percentage is not
meaningful
|
|
(a)
|
Non-cash stock-based
compensation expense, losses, net, on the fair value of an
investment and the bargain purchase gain from a prior year
acquisition are included within Corporate EBITDA.
|
|
(b)
|
For the year ended
December 31, 2023, Communications, Clean Energy and Infrastructure
and Power Delivery EBITDA included $22.5 million, $37.1 million and
$8.5 million respectively, of acquisition and integration costs
related to our recent acquisitions, and Corporate EBITDA included
$3.8 million of such costs. For the year ended December 31,
2022, Communications, Clean Energy and Infrastructure, Power
Delivery, Oil and Gas and Corporate EBITDA included $4.7 million,
$6.4 million, $39.0 million, $8.0 million and $27.9 million of such
acquisition and integrations costs, respectively.
|
|
(c)
|
Project results from a
non-controlled joint venture are included within Other segment
results.
|
|
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures
|
|
(unaudited - in
millions, except for percentages and per share
information)
|
|
|
For the Three Months
Ended
December 31,
|
|
For the Years
Ended
December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
EBITDA and Adjusted
EBITDA Reconciliation
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
1.2
|
|
$
3.4
|
|
$
(47.3)
|
|
$
33.9
|
|
Interest expense,
net
|
59.7
|
|
49.9
|
|
234.4
|
|
112.3
|
|
(Benefit from)
provision for income taxes
|
(1.2)
|
|
9.2
|
|
(35.4)
|
|
9.2
|
|
Depreciation
|
108.6
|
|
107.8
|
|
433.9
|
|
371.2
|
|
Amortization of
intangible assets
|
43.0
|
|
54.7
|
|
169.2
|
|
135.9
|
|
EBITDA
|
$
211.3
|
|
$
225.0
|
|
$
754.9
|
|
$
662.5
|
|
Non-cash stock-based
compensation expense
|
9.0
|
|
8.6
|
|
33.3
|
|
27.4
|
|
Acquisition and
integration costs
|
11.0
|
|
26.6
|
|
71.9
|
|
86.0
|
|
Losses, net, on fair
value of investment
|
—
|
|
0.4
|
|
0.2
|
|
7.7
|
|
Project results from
non-controlled joint venture
|
—
|
|
(2.8)
|
|
—
|
|
(2.8)
|
|
Bargain purchase
gain
|
—
|
|
—
|
|
—
|
|
(0.2)
|
|
Adjusted
EBITDA
|
$
231.4
|
|
$
257.9
|
|
$
860.3
|
|
$
780.6
|
|
|
For the Three Months
Ended
December 31,
|
|
For the Years
Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
EBITDA and Adjusted
EBITDA Margin Reconciliation
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
0.0 %
|
|
0.1 %
|
|
(0.4) %
|
|
0.3 %
|
|
Interest expense,
net
|
1.8 %
|
|
1.7 %
|
|
2.0 %
|
|
1.1 %
|
|
(Benefit from)
provision for income taxes
|
(0.0) %
|
|
0.3 %
|
|
(0.3) %
|
|
0.1 %
|
|
Depreciation
|
3.3 %
|
|
3.6 %
|
|
3.6 %
|
|
3.8 %
|
|
Amortization of
intangible assets
|
1.3 %
|
|
1.8 %
|
|
1.4 %
|
|
1.4 %
|
|
EBITDA
margin
|
6.4 %
|
|
7.5 %
|
|
6.3 %
|
|
6.8 %
|
|
Non-cash stock-based
compensation expense
|
0.3 %
|
|
0.3 %
|
|
0.3 %
|
|
0.3 %
|
|
Acquisition and
integration costs
|
0.3 %
|
|
0.9 %
|
|
0.6 %
|
|
0.9 %
|
|
Losses, net, on fair
value of investment
|
— %
|
|
0.0 %
|
|
0.0 %
|
|
0.1 %
|
|
Project results from
non-controlled joint venture
|
— %
|
|
(0.1) %
|
|
— %
|
|
(0.0) %
|
|
Bargain purchase
gain
|
— %
|
|
— %
|
|
— %
|
|
(0.0) %
|
|
Adjusted EBITDA
margin
|
7.1 %
|
|
8.6 %
|
|
7.2 %
|
|
8.0 %
|
|
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures
|
|
(unaudited - in
millions, except for percentages and per share
information)
|
|
|
For the Three Months
Ended
December 31,
|
|
For the Years
Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Adjusted Net Income
Reconciliation
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
1.2
|
|
$
3.4
|
|
$
(47.3)
|
|
$
33.9
|
|
Non-cash stock-based
compensation expense
|
9.0
|
|
8.6
|
|
33.3
|
|
27.4
|
|
Amortization of
intangible assets
|
43.0
|
|
54.7
|
|
169.2
|
|
135.9
|
|
Acquisition and
integration costs
|
11.0
|
|
26.6
|
|
71.9
|
|
86.0
|
|
Losses, net, on fair
value of investment
|
—
|
|
0.4
|
|
0.2
|
|
7.7
|
|
Project results from
non-controlled joint venture
|
—
|
|
(2.8)
|
|
—
|
|
(2.8)
|
|
Bargain purchase
gain
|
—
|
|
—
|
|
—
|
|
(0.2)
|
|
Income tax effect of
adjustments (a)
|
(16.8)
|
|
(16.4)
|
|
(75.3)
|
|
(58.6)
|
|
Statutory and other
tax rate effects (b)
|
4.6
|
|
5.5
|
|
4.6
|
|
5.5
|
|
Adjusted net
income
|
$
52.0
|
|
$
80.0
|
|
$
156.7
|
|
$
234.8
|
|
|
For the Three Months
Ended
December 31,
|
|
For the Years
Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Adjusted Diluted
Earnings per Share Reconciliation
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
$
0.01
|
|
$
0.04
|
|
$
(0.64)
|
|
$
0.42
|
|
Non-cash stock-based
compensation expense
|
0.11
|
|
0.11
|
|
0.43
|
|
0.36
|
|
Amortization of
intangible assets
|
0.55
|
|
0.70
|
|
2.16
|
|
1.78
|
|
Acquisition and
integration costs
|
0.14
|
|
0.34
|
|
0.92
|
|
1.13
|
|
Losses, net, on fair
value of investment
|
—
|
|
0.01
|
|
0.00
|
|
0.10
|
|
Project results from
non-controlled joint venture
|
—
|
|
(0.04)
|
|
—
|
|
(0.04)
|
|
Bargain purchase
gain
|
—
|
|
—
|
|
—
|
|
(0.00)
|
|
Income tax effect of
adjustments (a)
|
(0.21)
|
|
(0.21)
|
|
(0.96)
|
|
(0.77)
|
|
Statutory and other
tax rate effects (b)
|
0.06
|
|
0.07
|
|
0.06
|
|
0.07
|
|
Adjusted diluted
earnings per share
|
$
0.66
|
|
$
1.03
|
|
$
1.97
|
|
$
3.05
|
|
|
|
(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 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, 2023 and 2022, includes the effect of statutory and
other tax rate changes.
|
|
Calculation of Net
Debt
|
December 31,
2023
|
|
December 31,
2022
|
|
Current portion of
long-term debt, including finance leases
|
$
177.2
|
|
$
171.9
|
|
Long-term debt,
including finance leases
|
2,888.1
|
|
3,052.2
|
|
Total
Debt
|
$
3,065.3
|
|
$
3,224.1
|
|
Less: cash and cash
equivalents
|
(529.6)
|
|
(370.6)
|
|
Net
Debt
|
$
2,535.7
|
|
$
2,853.5
|
|
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures
|
|
(unaudited - in
millions, except for percentages and per share
information)
|
|
|
Guidance for the
Three Months
Ended March 31,
2024 Est.
|
|
For the Three
Months Ended
March 31, 2023
|
|
EBITDA and Adjusted
EBITDA Reconciliation
|
|
|
|
|
Net
loss
|
$
(61)
|
|
$
(80.5)
|
|
Interest expense,
net
|
60
|
|
52.7
|
|
Benefit from income
taxes
|
(23)
|
|
(44.7)
|
|
Depreciation
|
110
|
|
107.2
|
|
Amortization of
intangible assets
|
34
|
|
41.9
|
|
EBITDA
|
$
121
|
|
$
76.6
|
|
Non-cash stock-based
compensation expense
|
9
|
|
8.5
|
|
Acquisition and
integration costs
|
—
|
|
17.1
|
|
Losses, net, on fair
value of investment
|
—
|
|
0.2
|
|
Adjusted
EBITDA
|
$
130
|
|
$
102.5
|
|
|
Guidance for the
Three Months
Ended March 31,
2024 Est.
|
|
For the Three
Months Ended
March 31, 2023
|
|
EBITDA and Adjusted
EBITDA Margin Reconciliation
|
|
|
|
|
Net
loss
|
(2.3) %
|
|
(3.1) %
|
|
Interest expense,
net
|
2.3 %
|
|
2.0 %
|
|
Benefit from income
taxes
|
(0.9) %
|
|
(1.7) %
|
|
Depreciation
|
4.2 %
|
|
4.1 %
|
|
Amortization of
intangible assets
|
1.3 %
|
|
1.6 %
|
|
EBITDA
margin
|
4.6 %
|
|
3.0 %
|
|
Non-cash stock-based
compensation expense
|
0.4 %
|
|
0.3 %
|
|
Acquisition and
integration costs
|
— %
|
|
0.7 %
|
|
Losses, net, on fair
value of investment
|
— %
|
|
0.0 %
|
|
Adjusted EBITDA
margin
|
5.0 %
|
|
4.0 %
|
|
Supplemental
Disclosures and Reconciliation of Non-GAAP
Disclosures
|
|
(unaudited - in
millions, except for percentages and per share
information)
|
|
|
Guidance for the
Three Months
Ended March 31,
2024 Est.
|
|
For the Three
Months Ended
March 31, 2023
|
|
Adjusted Net Loss
Reconciliation
|
|
|
|
|
Net
loss
|
$
(61)
|
|
$
(80.5)
|
|
Non-cash stock-based
compensation expense
|
9
|
|
8.5
|
|
Amortization of
intangible assets
|
34
|
|
41.9
|
|
Acquisition and
integration costs
|
—
|
|
17.1
|
|
Losses, net, on fair
value of investment
|
—
|
|
0.2
|
|
Income tax effect of
adjustments (a)
|
(12)
|
|
(29.2)
|
|
Adjusted net
loss
|
$
(29)
|
|
$ (41.9)
|
|
|
Guidance for the
Three Months
Ended March 31,
2024 Est.
|
|
For the Three
Months Ended
March 31, 2023
|
|
Adjusted Diluted
Loss per Share Reconciliation
|
|
|
|
|
Diluted loss per
share
|
$
(0.88)
|
|
$ (1.05)
|
|
Non-cash stock-based
compensation expense
|
0.12
|
|
0.11
|
|
Amortization of
intangible assets
|
0.43
|
|
0.54
|
|
Acquisition and
integration costs
|
—
|
|
0.22
|
|
Losses, net, on fair
value of investment
|
—
|
|
0.00
|
|
Income tax effect of
adjustments (a)
|
(0.15)
|
|
(0.38)
|
|
Adjusted diluted
loss per share
|
$
(0.48)
|
|
$ (0.54)
|
|
|
|
(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 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.
|
|
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,
2024 Est.
|
|
For the Year
Ended December
31, 2023
|
|
For the Year
Ended December
31, 2022
|
|
EBITDA and Adjusted
EBITDA Reconciliation
|
|
|
|
|
|
|
Net income
(loss)
|
$
105
|
|
$
(47.3)
|
|
$
33.9
|
|
Interest expense,
net
|
210
|
|
234.4
|
|
112.3
|
|
Provision for (benefit
from) income taxes
|
33
|
|
(35.4)
|
|
9.2
|
|
Depreciation
|
436
|
|
433.9
|
|
371.2
|
|
Amortization of
intangible assets
|
134
|
|
169.2
|
|
135.9
|
|
EBITDA
|
$
917
|
|
$
754.9
|
|
$
662.5
|
|
Non-cash stock-based
compensation expense
|
38
|
|
33.3
|
|
27.4
|
|
Acquisition and
integration costs
|
—
|
|
71.9
|
|
86.0
|
|
Losses, net, on fair
value of investment
|
—
|
|
0.2
|
|
7.7
|
|
Project results from
non-controlled joint venture
|
—
|
|
—
|
|
(2.8)
|
|
Bargain purchase
gain
|
—
|
|
—
|
|
(0.2)
|
|
Adjusted
EBITDA
|
$
955
|
|
$
860.3
|
|
$
780.6
|
|
|
Guidance for the
Year Ended
December 31,
2024 Est.
|
|
For the Year
Ended December
31, 2023
|
|
For the Year
Ended December
31, 2022
|
|
EBITDA and Adjusted
EBITDA Margin Reconciliation
|
|
|
|
|
|
|
Net income
(loss)
|
0.8 %
|
|
(0.4) %
|
|
0.3 %
|
|
Interest expense,
net
|
1.7 %
|
|
2.0 %
|
|
1.1 %
|
|
Provision for (benefit
from) income taxes
|
0.3 %
|
|
(0.3) %
|
|
0.1 %
|
|
Depreciation
|
3.5 %
|
|
3.6 %
|
|
3.8 %
|
|
Amortization of
intangible assets
|
1.1 %
|
|
1.4 %
|
|
1.4 %
|
|
EBITDA
margin
|
7.3 %
|
|
6.3 %
|
|
6.8 %
|
|
Non-cash stock-based
compensation expense
|
0.3 %
|
|
0.3 %
|
|
0.3 %
|
|
Acquisition and
integration costs
|
— %
|
|
0.6 %
|
|
0.9 %
|
|
Losses, net, on fair
value of investment
|
— %
|
|
0.0 %
|
|
0.1 %
|
|
Project results from
non-controlled joint venture
|
— %
|
|
— %
|
|
(0.0) %
|
|
Bargain purchase
gain
|
— %
|
|
— %
|
|
(0.0) %
|
|
Adjusted EBITDA
margin
|
7.6 %
|
|
7.2 %
|
|
8.0 %
|
|
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,
2024 Est.
|
|
For the Year
Ended December
31, 2023
|
|
For the Year
Ended December
31, 2022
|
|
Adjusted Net Income
Reconciliation
|
|
|
|
|
|
|
Net income
(loss)
|
$
105
|
|
$
(47.3)
|
|
$
33.9
|
|
Non-cash stock-based
compensation expense
|
38
|
|
33.3
|
|
27.4
|
|
Amortization of
intangible assets
|
134
|
|
169.2
|
|
135.9
|
|
Acquisition and
integration costs
|
—
|
|
71.9
|
|
86.0
|
|
Losses, net, on fair
value of investment
|
—
|
|
0.2
|
|
7.7
|
|
Project results from
non-controlled joint venture
|
—
|
|
—
|
|
(2.8)
|
|
Bargain purchase
gain
|
—
|
|
—
|
|
(0.2)
|
|
Income tax effect of
adjustments (a)
|
(41)
|
|
(75.3)
|
|
(58.6)
|
|
Statutory and other
tax rate effects (b)
|
—
|
|
4.6
|
|
5.5
|
|
Adjusted net
income
|
$
234
|
|
$
156.7
|
|
$
234.8
|
|
|
Guidance for the
Year Ended
December 31,
2024 Est.
|
|
For the Year
Ended December
31, 2023
|
|
For the Year
Ended December
31, 2022
|
|
Adjusted Diluted
Earnings per Share Reconciliation
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
$
1.04
|
|
$
(0.64)
|
|
$
0.42
|
|
Non-cash stock-based
compensation expense
|
0.48
|
|
0.43
|
|
0.36
|
|
Amortization of
intangible assets
|
1.69
|
|
2.16
|
|
1.78
|
|
Acquisition and
integration costs
|
—
|
|
0.92
|
|
1.13
|
|
Losses, net, on fair
value of investment
|
—
|
|
0.00
|
|
0.10
|
|
Project results from
non-controlled joint venture
|
—
|
|
—
|
|
(0.04)
|
|
Bargain purchase
gain
|
—
|
|
—
|
|
(0.00)
|
|
Income tax effect of
adjustments (a)
|
(0.52)
|
|
(0.96)
|
|
(0.77)
|
|
Statutory and other
tax rate effects (b)
|
—
|
|
0.06
|
|
0.07
|
|
Adjusted diluted
earnings per share
|
$
2.69
|
|
$
1.97
|
|
$
3.05
|
|
|
|
(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 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, 2023 and 2022, includes the effect of statutory and
other tax rate changes.
|
The tables may contain slight summation differences due to
rounding.
MasTec uses EBITDA and Adjusted EBITDA, as well as Adjusted Net
Income, Adjusted Diluted Earnings Per Share and net debt, to
evaluate our performance, both internally and as compared with its
peers, because these measures exclude certain items that may not be
indicative of its core operating results, as well as items that can
vary widely across different industries or among companies within
the same industry. MasTec believes that these adjusted measures
provide a baseline for analyzing trends in its underlying
business. MasTec believes that these non-U.S. GAAP financial
measures provide meaningful information and help investors
understand its financial results and assess its prospects for
future performance. Because non-U.S. GAAP financial measures are
not standardized, it may not be possible to compare these financial
measures with other companies' non-U.S. GAAP financial measures
having the same or similar names. These financial measures should
not be considered in isolation from, as substitutes for, or
alternative measures of, reported net income or diluted earnings
per share or total debt, and should be viewed in conjunction with
the most comparable U.S. GAAP financial measures and the provided
reconciliations thereto. MasTec believes these non-U.S. GAAP
financial measures, when viewed together with its U.S. GAAP results
and related reconciliations, provide a more complete understanding
of its business. Investors are strongly encouraged to review the
company's consolidated financial statements and publicly filed
reports in their entirety and not rely on any single financial
measure.
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, utility and
other infrastructure, such as: wireless, wireline/fiber and
customer fulfillment activities; power delivery infrastructure,
including transmission, distribution, environmental planning and
compliance; power generation infrastructure, primarily from clean
energy and renewable sources; pipeline infrastructure, including
for natural gas, water and carbon capture sequestration pipelines
and pipeline integrity services; heavy civil and industrial
infrastructure, including roads, bridges and rail; and
environmental remediation services. 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; 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 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 from rising or
elevated levels of inflation or interest rates, regulatory or
policy changes, including permitting processes and tax incentives
that affect us or our customers' industries, supply chain issues
and technological developments; the effect of federal, local,
state, foreign or tax legislation and other regulations affecting
the industries we serve and related projects and expenditures;
project delays due to permitting processes, compliance with
environmental and other regulatory requirements and challenges to
the granting of project permits, which could cause increased costs
and delayed or reduced revenue; 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 potential economic downturns, inflationary issues, the
availability and cost of financing, supply chain disruptions,
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 the
expenditure levels of our customers of, among other items,
fluctuations in commodity prices, including for fuel and energy
sources, fluctuations in the cost of materials, labor, supplies or
equipment, and/or supply-related issues that affect availability or
cause delays for such items; the outcome of our plans for future
operations, growth and services, including business development
efforts, backlog, acquisitions and dispositions; 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 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; 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, including from climate-related
events, that affect 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; 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; requirements of and
restrictions imposed by our credit facility, term loans, senior
notes and any future loans or securities; systems and information
technology interruptions and/or data security breaches that could
adversely affect our ability to operate, our operating results, our
data security or our reputation, or other cybersecurity-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; 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,
including as a result of shares we may issue as purchase
consideration in connection with acquisitions, or as a result of
other stock issuances; our ability to obtain performance and surety
bonds; 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 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 our internal controls over financial reporting, 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.