- Record First Quarter 2024 Revenue of $2.7 Billion
- First Quarter 2024 GAAP Net Loss of $34.5 Million, a $46.0
Million Improvement over First Quarter 2023 and Beating
Consensus Estimates by $33.1
Million
- First Quarter 2024 Adjusted EBITDA of $157.3 Million, a $54.8
Million Improvement Over First Quarter 2023 and Beating
Consensus Estimates by $28.7
Million
- First Quarter 2024 Diluted Loss Per Share of $0.53 and Adjusted Diluted Loss Per Share of
$0.13, Beating Consensus Estimates by
$0.33 and $0.35, Respectively
- 18-month Backlog as of March 31,
2024 of $12.8 Billion
Increased $430 Million sequentially
from the Fourth Quarter 2023
- Annual 2024 Guidance Increased to Revenue of $12.55 Billion, GAAP Net Income of $121 Million, Adjusted Net Income of $257 Million, Adjusted EBITDA of $975 Million, Diluted Earnings Per Share of
$1.23 and Adjusted Diluted Earnings
Per Share of $2.95
CORAL
GABLES, Fla., May 2, 2024
/PRNewswire/ -- MasTec, Inc. (NYSE: MTZ) today announced first
quarter 2024 financial results and updated its full year 2024
guidance expectations.
First quarter 2024 revenue was up 4% to $2.69 billion, a first quarter record, compared
to $2.58 billion for the first
quarter of 2023. GAAP net loss was $34.5
million, or $0.53 per diluted
share, compared to a net loss of $80.5
million, or $1.05 per diluted
share, in the first quarter of 2023.
First quarter 2024 adjusted net loss and adjusted diluted loss
per share, both non-GAAP measures, were $3.3
million and $0.13,
respectively, as compared to adjusted net loss and adjusted diluted
loss per share of $41.9 million and
$0.54, respectively, in the first
quarter of 2023. First quarter 2024 adjusted EBITDA, also a
non-GAAP measure, was $157.3 million,
compared to $102.5 million in the
first quarter of 2023.
18-month backlog as of March 31,
2024, was $12.8 billion, up
$430 million sequentially from the
fourth quarter of 2023.
Adjusted net (loss) income, adjusted diluted (loss) earnings per
share, adjusted EBITDA, adjusted EBITDA margin and net debt, 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 "Our first quarter results
significantly exceeded our expectations, and I expect 2024 to begin
the validation of our investment and diversification strategy over
the last few years. I believe that the investments we have made in
broadening our service line offerings have placed us at the
forefront of the country's future infrastructure needs. The
expected power demand growth will have a significant impact on our
Power Delivery, Clean Energy and Infrastructure, and Oil and Gas
segments; coupled with the increasing demand for data capacity and
speed impacting Communications, position all of our segments for
growth."
Paul DiMarco, MasTec's Executive
Vice President and Chief Financial Officer, noted, "We are pleased
to have exceeded our first quarter earnings guidance in each
segment and reduced net debt leverage further than expected to
2.7x. We look forward to building on this momentum in subsequent
quarters as we focus on executing for our clients and capitalizing
on the numerous opportunities afforded by our end markets."
Based on the information available today, the Company is
providing second quarter and updating full year 2024 guidance. The
Company currently expects full year 2024 revenue of approximately
$12.55 billion. Full year 2024 GAAP
net income is expected to approximate $121
million, representing 1.0% of revenue, with GAAP diluted
earnings per share expected to be $1.23. Full year 2024 adjusted EBITDA is expected
to be $975 million, representing 7.8%
of revenue, with adjusted diluted earnings per share expected to be
$2.95.
For the second quarter of 2024, the Company expects revenue of
approximately $3.1 billion. Second
quarter 2024 GAAP net income is expected to approximate
$40 million, representing 1.3% of
revenue, with GAAP diluted earnings per share expected to be
$0.43. Second quarter 2024 adjusted
EBITDA is expected to approximate $260
million, representing 8.4% of revenue, with adjusted diluted
earnings per share expected to be $0.88.
Management will hold a conference call to discuss these results
on Friday, May 3, 2024 at
9:00 a.m. Eastern Time. The call-in
number for the conference call is (856) 344-9221 or (888) 224-1005
with a pass code of 2706030. 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, 2024 and
2023:
|
Consolidated
Statements of Operations
|
|
(unaudited - in
thousands, except per share information)
|
|
|
For the Three Months
Ended
March 31,
|
|
|
2024
|
|
2023
|
|
|
Revenue
|
$ 2,686,849
|
|
$ 2,584,659
|
|
|
Costs of revenue,
excluding depreciation and amortization
|
2,379,672
|
|
2,359,494
|
|
|
Depreciation
|
107,435
|
|
107,247
|
|
|
Amortization of
intangible assets
|
33,691
|
|
41,944
|
|
|
General and
administrative expenses
|
165,536
|
|
163,914
|
|
|
Interest expense,
net
|
52,059
|
|
52,693
|
|
|
Equity in earnings of
unconsolidated affiliates, net
|
(9,219)
|
|
(9,152)
|
|
|
Other expense (income),
net
|
3,213
|
|
(6,201)
|
|
|
Loss
before income taxes
|
$
(45,538)
|
|
$
(125,280)
|
|
|
Benefit from income
taxes
|
11,079
|
|
44,734
|
|
|
Net
loss
|
$
(34,459)
|
|
$
(80,546)
|
|
|
Net income (loss)
attributable to non-controlling interests
|
6,721
|
|
(6)
|
|
|
Net loss
attributable to MasTec, Inc.
|
$
(41,180)
|
|
$
(80,540)
|
|
|
Loss per
share:
|
|
|
|
|
|
Basic and
diluted loss per share
|
$
(0.53)
|
|
$
(1.05)
|
|
|
Basic and
diluted weighted average common shares outstanding
|
77,942
|
|
76,984
|
|
|
Consolidated Balance
Sheets
|
|
(unaudited - in
thousands)
|
|
|
March 31,
2024
|
|
December 31,
2023
|
|
Assets
|
|
|
|
|
Current
assets
|
$ 3,445,470
|
|
$ 3,974,253
|
|
Property and
equipment, net
|
1,572,766
|
|
1,651,462
|
|
Operating lease
right-of-use assets
|
424,575
|
|
418,685
|
|
Goodwill,
net
|
2,126,041
|
|
2,126,366
|
|
Other intangible
assets, net
|
751,008
|
|
784,260
|
|
Other long-term
assets
|
425,493
|
|
418,485
|
|
Total
assets
|
$ 8,745,353
|
|
$ 9,373,511
|
|
Liabilities and
Equity
|
|
|
|
|
Current
liabilities
|
$ 2,633,371
|
|
$ 2,837,219
|
|
Long-term debt,
including finance leases
|
2,537,091
|
|
2,888,058
|
|
Long-term operating
lease liabilities
|
291,707
|
|
292,873
|
|
Deferred income
taxes
|
347,424
|
|
390,399
|
|
Other long-term
liabilities
|
245,736
|
|
243,701
|
|
Total equity
|
2,690,024
|
|
2,721,261
|
|
Total liabilities and
equity
|
$ 8,745,353
|
|
$ 9,373,511
|
|
Consolidated
Statements of Cash Flows
|
|
(unaudited - in
thousands)
|
|
|
For the Three Months
Ended
March 31,
|
|
2024
|
|
2023
|
|
Net cash provided by
(used in) operating activities
|
$
107,750
|
|
$
(86,371)
|
|
Net cash used in
investing activities
|
(13,031)
|
|
(89,486)
|
|
Net cash used in
financing activities
|
(374,822)
|
|
(53,442)
|
|
Effect of currency
translation on cash
|
(132)
|
|
267
|
|
Net decrease in cash
and cash equivalents
|
$
(280,235)
|
|
$
(229,032)
|
|
Cash and cash
equivalents - beginning of period
|
$
529,561
|
|
$
370,592
|
|
Cash and cash
equivalents - end of period
|
$
249,326
|
|
$
141,560
|
|
Backlog by
Reportable Segment (unaudited - in millions)
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
|
Communications
|
$
5,797
|
|
$
5,627
|
|
$
5,602
|
|
Clean Energy and
Infrastructure
|
3,504
|
|
3,115
|
|
3,546
|
|
Power
Delivery
|
2,479
|
|
2,440
|
|
2,731
|
|
Oil and Gas
|
1,057
|
|
1,225
|
|
2,013
|
|
Other
|
—
|
|
—
|
|
—
|
|
Estimated 18-month
backlog
|
$
12,837
|
|
$
12,407
|
|
$
13,892
|
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
|
2024
|
|
2023
|
|
|
Revenue by
Reportable Segment
|
|
|
|
|
|
Communications
|
$
732.9
|
|
$
806.6
|
|
|
Clean Energy and
Infrastructure
|
753.5
|
|
824.9
|
|
|
Power
Delivery
|
571.0
|
|
709.4
|
|
|
Oil and Gas
|
633.8
|
|
256.5
|
|
|
Other
|
—
|
|
—
|
|
|
Eliminations
|
(4.4)
|
|
(12.7)
|
|
|
Consolidated
revenue
|
$
2,686.8
|
|
$
2,584.7
|
|
|
|
For the Three Months
Ended
March 31,
|
|
|
2024
|
|
2023
|
|
|
Adjusted EBITDA by
Segment
|
|
|
|
|
|
EBITDA
|
$
147.6
|
|
$
76.6
|
|
|
Non-cash stock-based
compensation expense (a)
|
9.7
|
|
8.5
|
|
|
Acquisition and
integration costs (b)
|
—
|
|
17.1
|
|
|
Losses on fair value
of investment (a)
|
—
|
|
0.2
|
|
|
Adjusted
EBITDA
|
$
157.3
|
|
$
102.5
|
|
|
Segment:
|
|
|
|
|
|
Communications
|
$
48.8
|
|
$
61.7
|
|
|
Clean Energy and
Infrastructure
|
20.4
|
|
10.5
|
|
|
Power
Delivery
|
27.4
|
|
49.1
|
|
|
Oil and Gas
|
92.8
|
|
14.5
|
|
|
Other
|
7.0
|
|
7.1
|
|
|
Segment
Total
|
$
196.4
|
|
$
142.9
|
|
|
Corporate
|
(39.1)
|
|
(40.4)
|
|
|
Adjusted
EBITDA
|
$
157.3
|
|
$
102.5
|
|
|
|
|
(a)
|
Non-cash stock-based
compensation expense and losses on the fair value of an investment
are included within Corporate EBITDA.
|
|
(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 certain acquisitions, and Corporate
EBITDA included $1.3 million of such costs. These acquisition and
integration activities were completed in the fourth quarter of
2023.
|
|
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,
|
|
|
2024
|
|
2023
|
|
|
Adjusted EBITDA
Margin by Segment
|
|
|
|
|
|
EBITDA
Margin
|
5.5 %
|
|
3.0 %
|
|
|
Non-cash stock-based
compensation expense (a)
|
0.4 %
|
|
0.3 %
|
|
|
Acquisition and
integration costs (b)
|
— %
|
|
0.7 %
|
|
|
Losses on fair value
of investment (a)
|
— %
|
|
0.0 %
|
|
|
Adjusted EBITDA
margin
|
5.9 %
|
|
4.0 %
|
|
|
Segment:
|
|
|
|
|
|
Communications
|
6.7 %
|
|
7.7 %
|
|
|
Clean Energy and
Infrastructure
|
2.7 %
|
|
1.3 %
|
|
|
Power
Delivery
|
4.8 %
|
|
6.9 %
|
|
|
Oil and Gas
|
14.6 %
|
|
5.7 %
|
|
|
Other
|
NM
|
|
NM
|
|
|
Segment
Total
|
7.3 %
|
|
5.5 %
|
|
|
Corporate
|
—
|
|
—
|
|
|
Adjusted EBITDA
margin
|
5.9 %
|
|
4.0 %
|
|
|
NM - Percentage is not
meaningful
|
|
(a)
|
Non-cash stock-based
compensation expense and losses on the fair value of an investment
are included within Corporate EBITDA.
|
|
(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 certain acquisitions, and Corporate
EBITDA included $1.3 million of such costs. These acquisition and
integration activities were completed in the fourth quarter of
2023.
|
|
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,
|
|
|
2024
|
|
2023
|
|
|
EBITDA and Adjusted
EBITDA Reconciliation
|
|
|
|
|
|
Net loss
|
$
(34.5)
|
|
$
(80.5)
|
|
|
Interest expense,
net
|
52.1
|
|
52.7
|
|
|
Benefit from income
taxes
|
(11.1)
|
|
(44.7)
|
|
|
Depreciation
|
107.4
|
|
107.2
|
|
|
Amortization of
intangible assets
|
33.7
|
|
41.9
|
|
|
EBITDA
|
$
147.6
|
|
$
76.6
|
|
|
Non-cash stock-based
compensation expense
|
9.7
|
|
8.5
|
|
|
Acquisition and
integration costs
|
—
|
|
17.1
|
|
|
Losses on fair value
of investment
|
—
|
|
0.2
|
|
|
Adjusted
EBITDA
|
$
157.3
|
|
$
102.5
|
|
|
|
For the Three Months
Ended
March 31,
|
|
|
2024
|
|
2023
|
|
|
EBITDA and Adjusted
EBITDA Margin Reconciliation
|
|
|
|
|
|
Net loss
|
(1.3) %
|
|
(3.1) %
|
|
|
Interest
expense, net
|
1.9 %
|
|
2.0 %
|
|
|
Benefit from income
taxes
|
(0.4) %
|
|
(1.7) %
|
|
|
Depreciation
|
4.0 %
|
|
4.1 %
|
|
|
Amortization of
intangible assets
|
1.3 %
|
|
1.6 %
|
|
|
EBITDA
margin
|
5.5 %
|
|
3.0 %
|
|
|
Non-cash stock-based
compensation expense
|
0.4 %
|
|
0.3 %
|
|
|
Acquisition and
integration costs
|
— %
|
|
0.7 %
|
|
|
Losses on fair value
of investment
|
— %
|
|
0.0 %
|
|
|
Adjusted EBITDA
margin
|
5.9 %
|
|
4.0 %
|
|
|
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,
|
|
|
2024
|
|
2023
|
|
|
Adjusted Net Loss
Reconciliation
|
|
|
|
|
|
Net loss
|
$
(34.5)
|
|
$
(80.5)
|
|
|
Non-cash stock-based
compensation expense
|
9.7
|
|
8.5
|
|
|
Amortization of
intangible assets
|
33.7
|
|
41.9
|
|
|
Acquisition and
integration costs
|
—
|
|
17.1
|
|
|
Losses on fair value
of investment
|
—
|
|
0.2
|
|
|
Income tax effect of
adjustments (a)
|
(12.2)
|
|
(29.2)
|
|
|
Adjusted net
loss
|
$
(3.3)
|
|
$
(41.9)
|
|
|
|
For the Three Months
Ended
March 31,
|
|
|
2024
|
|
2023
|
|
|
Adjusted Diluted
Loss per Share Reconciliation
|
|
|
|
|
|
Diluted loss per
share
|
$
(0.53)
|
|
$
(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 on fair value
of investment
|
—
|
|
0.00
|
|
|
Income tax effect of
adjustments (a)
|
(0.16)
|
|
(0.38)
|
|
|
Adjusted diluted loss
per share
|
$
(0.13)
|
|
$
(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.
|
|
|
|
|
|
Calculation of Net
Debt
|
March 31,
2024
|
|
December 31,
2023
|
|
Current portion of
long-term debt, including finance leases
|
$
180.6
|
|
$
177.2
|
|
Long-term debt,
including finance leases
|
2,537.1
|
|
2,888.1
|
|
Total Debt
|
$
2,717.7
|
|
$
3,065.3
|
|
Less: cash and cash
equivalents
|
(249.3)
|
|
(529.6)
|
|
Net Debt
|
$
2,468.4
|
|
$
2,535.7
|
|
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)
|
$
121
|
|
$
(47.3)
|
|
$
33.9
|
|
Interest expense,
net
|
213
|
|
234.4
|
|
112.3
|
|
Provision for (benefit
from) income taxes
|
45
|
|
(35.4)
|
|
9.2
|
|
Depreciation
|
424
|
|
433.9
|
|
371.2
|
|
Amortization of
intangible assets
|
134
|
|
169.2
|
|
135.9
|
|
EBITDA
|
$
937
|
|
$
754.9
|
|
$
662.5
|
|
Non-cash stock-based
compensation expense
|
38
|
|
33.3
|
|
27.4
|
|
Acquisition and
integration costs
|
—
|
|
71.9
|
|
86.0
|
|
Losses 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
|
$
975
|
|
$
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)
|
1.0 %
|
|
(0.4) %
|
|
0.3 %
|
|
Interest expense,
net
|
1.7 %
|
|
2.0 %
|
|
1.1 %
|
|
Provision for (benefit
from) income taxes
|
0.4 %
|
|
(0.3) %
|
|
0.1 %
|
|
Depreciation
|
3.4 %
|
|
3.6 %
|
|
3.8 %
|
|
Amortization of
intangible assets
|
1.1 %
|
|
1.4 %
|
|
1.4 %
|
|
EBITDA
margin
|
7.5 %
|
|
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 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
|
7.8 %
|
|
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)
|
$
121
|
|
$
(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 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)
|
(36)
|
|
(75.3)
|
|
(58.6)
|
|
Statutory and other
tax rate effects (b)
|
—
|
|
4.6
|
|
5.5
|
|
Adjusted net
income
|
$
257
|
|
$
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
|
$
1.23
|
|
$
(0.64)
|
|
$
0.42
|
|
Non-cash stock-based
compensation expense
|
0.48
|
|
0.43
|
|
0.36
|
|
Amortization of
intangible assets
|
1.70
|
|
2.16
|
|
1.78
|
|
Acquisition and
integration costs
|
—
|
|
0.92
|
|
1.13
|
|
Losses 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)
|
(0.46)
|
|
(0.96)
|
|
(0.77)
|
|
Statutory and other
tax rate effects (b)
|
—
|
|
0.06
|
|
0.07
|
|
Adjusted diluted
earnings per share
|
$
2.95
|
|
$
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, represents the effect of statutory and
other tax rate changes.
|
|
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,
2024 Est.
|
|
For the Three
Months Ended
June 30, 2023
|
|
EBITDA and Adjusted
EBITDA Reconciliation
|
|
|
|
|
Net income
|
$
40
|
|
$
16.8
|
|
Interest expense,
net
|
54
|
|
59.4
|
|
Provision for income
taxes
|
15
|
|
2.9
|
|
Depreciation
|
108
|
|
103.0
|
|
Amortization of
intangible assets
|
34
|
|
42.0
|
|
EBITDA
|
$
250
|
|
$
224.2
|
|
Non-cash stock-based
compensation expense
|
10
|
|
8.6
|
|
Acquisition and
integration costs
|
—
|
|
22.7
|
|
Adjusted
EBITDA
|
$
260
|
|
$
255.4
|
|
|
|
|
|
Guidance for the
Three Months
Ended June 30,
2024 Est.
|
|
For the Three
Months Ended
June 30, 2023
|
|
EBITDA and Adjusted
EBITDA Margin Reconciliation
|
|
|
|
|
Net income
|
1.3 %
|
|
0.6 %
|
|
Interest expense,
net
|
1.7 %
|
|
2.1 %
|
|
Provision for income
taxes
|
0.5 %
|
|
0.1 %
|
|
Depreciation
|
3.5 %
|
|
3.6 %
|
|
Amortization of
intangible assets
|
1.1 %
|
|
1.5 %
|
|
EBITDA
margin
|
8.1 %
|
|
7.8 %
|
|
Non-cash stock-based
compensation expense
|
0.3 %
|
|
0.3 %
|
|
Acquisition and
integration costs
|
— %
|
|
0.8 %
|
|
Adjusted EBITDA
margin
|
8.4 %
|
|
8.9 %
|
|
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,
2024 Est.
|
|
For the Three
Months Ended
June 30, 2023
|
|
Adjusted Net Income
Reconciliation
|
|
|
|
|
Net income
|
$
40
|
|
$
16.8
|
|
Non-cash stock-based
compensation expense
|
10
|
|
8.6
|
|
Amortization of
intangible assets
|
34
|
|
42.0
|
|
Acquisition and
integration costs
|
—
|
|
22.7
|
|
Income tax effect of
adjustments (a)
|
(8)
|
|
(19.3)
|
|
Adjusted net
income
|
$
75
|
|
$
70.7
|
|
|
Guidance for the
Three Months
Ended June 30,
2024 Est.
|
|
For the Three
Months Ended
June 30, 2023
|
|
Adjusted Diluted
Earnings per Share Reconciliation
|
|
|
|
|
Diluted earnings per
share
|
$
0.43
|
|
$
0.20
|
|
Non-cash stock-based
compensation expense
|
0.12
|
|
0.11
|
|
Amortization of
intangible assets
|
0.43
|
|
0.54
|
|
Acquisition and
integration costs
|
—
|
|
0.29
|
|
Income tax effect of
adjustments (a)
|
(0.10)
|
|
(0.25)
|
|
Adjusted diluted
earnings per share
|
$
0.88
|
|
$
0.89
|
|
|
|
(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.
|
The tables may contain slight summation differences due to
rounding.
MasTec uses EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin,
as well as Adjusted Net (Loss) Income, Adjusted Diluted (Loss)
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 press release 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, risks
related to a small number of our existing shareholders having the
ability to influence major corporate decisions, 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.