MIAMI, May 13 /PRNewswire-FirstCall/ -- MasTec, Inc. (NYSE: MTZ) today announced results for the first quarter of 2003. For the quarter ended March 31, 2003, the Company had revenue of $180.6 million and a net loss of $1.6 million, compared with revenue of $203.8 million and a net loss of $24.4 million for the comparable quarter of 2002. Net loss per share was $0.03 and $0.51 for the quarters ended March 31, 2003 and 2002, respectively. Included in the loss for the first quarter of 2002 is a $25.7 million non-cash charge related to the previously disclosed change of accounting method under SFAS 142.

Austin J. Shanfelter, President and CEO stated, "Margins were negatively impacted in the first quarter of 2003 by poor weather in much of the country. As a result, productivity was down as many work crews were unable to be deployed and jobs were delayed. However, in spite of these negative events, the Company's net income fell within its previously announced guidance range indicating that our cost cutting efforts are paying off."

For the second quarter of 2003, MasTec expects revenue to be from $210 million to $220 million with earnings per share between $0.03 and $0.05. Looking forward to the entire year, we are reaffirming our previous guidance for 2003. We expect revenue ranging from $750 to $850 million and EPS ranging from $0.18 to $0.28 per share.

    Summary financials for the quarter just ended are as follows:


                    Consolidated Statements of Operations
                   (In thousands, except per share amounts)
                                 (Unaudited)

                                                       For the Three Months
                                                          Ended March 31,
                                                       2003          2002

    Revenue                                         $180,569       $203,782
    Costs of revenue, excluding depreciation         152,785        164,586
    Depreciation                                       8,350          9,850
    Amortization                                         151            128
    General and administrative expenses               17,909         22,079
    Interest expense                                   4,656          5,047
    Interest income                                      118            395
    Other income (expense), net                          480           (274)
    (Loss) income before (provision) benefit for
      income taxes, minority interest and
      cumulative effect of accounting change          (2,684)         2,213
    Benefit (provision) for income taxes               1,060           (926)
    Minority interest                                     36            (52)
    (Loss) income before cumulative effect of
      accounting change                               (1,588)         1,235
    Cumulative effect of accounting change, net of tax    --        (25,671)
    Net loss                                         $(1,588)     $ (24,436)
    Basic weighted average common shares outstanding  48,018         47,908
    Basic (loss) earnings per share before cumulative
    effect of accounting change                       $(0.03)         $0.03
    Cumulative effect of accounting change                --          (0.54)
    Basic loss per share                              $(0.03)        $(0.51)
    Diluted weighted average common shares
     outstanding                                      48,018         48,054
    Diluted (loss) earnings per share before cumulative
      effect of accounting change                     $(0.03)         $0.03
    Cumulative effect of accounting change                --          (0.53)
    Diluted loss per share                            $(0.03)        $(0.51)


                         Consolidated Balance Sheets
                                (In thousands)
                                 (Unaudited)

                                                                  (Audited)
                                                     March 31,    December 31,
                                                       2003          2002
                              Assets
    Total current assets                             259,800        275,172
    Property and equipment, net                      108,781        118,475
    Goodwill                                         150,984        150,984
    Deferred taxes                                    41,325         40,271
    Other assets                                      41,903         38,890
        Total assets                                $602,793       $623,792

                Liabilities and Shareholders' Equity
    Current liabilities:
    Current liabilities                             $111,083       $130,395
    Other liabilities                                 21,691         22,214
    Long-term debt                                   197,209        197,435
    Total shareholders' equity                       272,810        273,748
        Total liabilities and shareholders' equity  $602,793       $623,792


                    Consolidated Statements of Cash Flows
                                (In thousands)
                                 (Unaudited)

                                                       For the Three Months
                                                         Ended March 31,
                                                        2003         2002
    Cash flows from operating activities:
    Net cash provided by operating activities          5,235         41,323
    Net cash provided by (used in) investing
     activities                                        1,244         (4,457)
    Net cash provided by (used in) financing
     activities                                         (449)       (69,927)
    Net increase (decrease) in cash and cash
      equivalents                                      6,030        (33,061)
    Net effect of currency translation on cash           359           (731)
    Cash and cash equivalents - beginning of period    8,730         48,478
    Cash and cash equivalents - end of period        $15,119        $14,686

Executives of MasTec will hold a conference call with the investment community on Wednesday, May 14, 2003 at 10:30 a.m. eastern time, to discuss first quarter results. The call in number for the conference call is (719) 457-2626 and the replay number is (719) 457-0820, pass code 537483. The replay will run from May 15 to May 29, utilizing the same passcode. Additionally, the call will be broadcast live over the Internet at http://www.firstcallevents.com/service/ajwz381530668gf12.html or through the investor relations section of the Company's website at www.mastec.com.

MasTec is a leading communications, intelligent traffic and energy infrastructure service provider in North America and Brazil. The Company designs, builds, installs, maintains and monitors internal and external networks for leading telecommunications, broadband, energy and Fortune 1000 companies and for state departments of transportation.

This press release and any accompanying documents contain forward-looking statements, such as statements regarding MasTec's future growth and profitability, growth strategy, and anticipated trends in the industries and economies in which MasTec operates. These forward-looking statements are based on MasTec's current expectations and are subject to a number of risks, uncertainties, and assumptions, including that our revenue and profits may differ from that projected, that we may be further impacted by slowdowns in our clients' businesses or in the economy in general, that our reserves for receivables may be inadequate and that we may experience increased costs associated with realigning our business or may be unsuccessful in those efforts. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from results expressed or implied in any forward-looking statements made by MasTec in this press release. These and other risks are detailed in this press release or documents filed by MasTec with the Securities and Exchange Commission. MasTec does not undertake any obligation to revise these forward-looking statements to reflect future events or circumstances.

SOURCE MasTec, Inc.