MIAMI, Aug. 12 /PRNewswire-FirstCall/ -- MasTec, Inc. (NYSE: MTZ) today announced results for the second quarter of 2003. For the quarter ended June 30, 2003, the Company had revenue of $209.1 million and a net income of $2.8 million, compared with revenue of $213.0 million and net income of $1.8 million for the comparable quarter of 2002. Net income per share was $0.06 and $0.04 for the quarters ended June 30, 2003 and 2002, respectively.

Austin J. Shanfelter, President and CEO stated, "We are pleased with the second quarter earnings performance. These results represent solid evidence, as can be seen in our improving margins and growth, that our restructuring activities in the fourth quarter of 2002 were successful. A visible trend has emerged that has set the stage for increasing profitability and cash flow."

For the third quarter of 2003, MasTec expects revenue to be from $230 million to $245 million with earnings per share between $0.11 and $0.13. Included in the third quarter earnings estimate is a one time gain, net of costs to close, on the sale of certain non-operating international assets in the amount of $0.02 per share. Looking forward to the entire year, we expect revenue ranging from $825 to $870 million and EPS ranging from $0.22 to $0.28 per share. Additionally, the Company expects an EBITDA margin of 10% by year end.

At the end of the second quarter of 2003, the Company had no outstanding draws on its credit facility and was in full compliance with all of the respective covenants. Cash was used to fund MasTec's ongoing expansion efforts with several customers. "We are very encouraged that the strong top line growth was supported by cash flows from operations," said Donald P. Weinstein, MasTec's Executive Vice President and CFO.

    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 June 30,
                                                         2003         2002
    Revenue                                           $209,108     $213,041
    Costs of revenue, excluding depreciation           175,267      183,018
    Depreciation                                         7,380        8,347
    Amortization                                           132          128
    General and administrative expenses                 15,912       19,266
    Interest expense                                     5,282        4,589
    Interest income                                         94          249
    Other (expense) income, net                           (598)       4,988
    Income before provision for income taxes,
     minority interest and cumulative effect of
     accounting change                                   4,631        2,930
    Provision for income taxes                           1,968        1,197
    Minority interest                                      102           65
    Net income                                          $2,765       $1,798

    Basic weighted average common shares outstanding    48,030       47,914
    Basic earnings per share                             $0.06        $0.04

    Diluted weighted average common shares outstanding  48,215       48,223
    Diluted earnings per share                           $0.06        $0.04


                         Consolidated Balance Sheets
                                (In thousands)
                                 (Unaudited)
                                                                  (Audited)
                                                       June 30,  December 31,
                                                         2003        2002

                       Assets
    Total current assets                              $280,136    $275,172
    Property and equipment, net                         99,650     118,475
    Goodwill                                           150,984     150,984
    Deferred taxes                                      35,857      40,271
    Other assets                                        45,944      38,890
          Total assets                                $612,571    $623,792

        Liabilities and Shareholders' Equity
    Current liabilities                               $115,000    $130,395
    Other liabilities                                   21,470      22,214
    Long-term debt                                     197,156     197,435
    Total shareholders' equity                         278,945     273,748
          Total liabilities and shareholders' equity  $612,571    $623,792


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

                                                        Six Months Ended
                                                             June 30,
                                                         2003        2002

    Net cash (used in) provided by
     operating activities                              $(6,494)    $41,185
    Net cash provided by (used in)
     investing activities                                1,987     (10,208)
    Net cash used in financing activities                 (672)    (68,996)
    Net decrease in cash and cash equivalents           (5,179)    (38,019)
    Net effect of currency translation on cash             672      (1,280)
    Cash and cash equivalents - beginning of period      8,730      48,478
    Cash and cash equivalents - end of period           $4,223      $9,179

Executives of MasTec will hold a conference call with the investment community on Wednesday, August 13, 2003 at 10:30 a.m. eastern time, to discuss second quarter results. The call in number for the conference call is (719) 457-2637 and the replay number is (719) 457-0820, with a passcode of 354413. The replay will run from August 13 to August 27. Additionally, the call will be broadcast live over the Internet at http://www.firstcallevents.com/service/ajwz385821486gf12.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.

EBITDA Explanation and Reconciliation. EBITDA should not be construed as a substitute for either operating income or net income as they are determined in accordance with generally accepted accounting principles (GAAP). SEC Regulation G requires an explanation and reconciliation of any non-GAAP measures, like EBITDA, to their most comparable GAAP measure.

In our guidance for future operations we have projected an EBITDA margin on total revenues. Current exact reconciliation of our projected EBITDA margin to comparable measures of prospective results is not presently possible, particularly because our guidance is of an EBITDA rate to be achieved by year-end 2003 rather than actual economic performance realized during any fiscal quarter of 2003. Projected EBITDA can be reconciled to net income by taking the measurements of GAAP net income and adding back GAAP net interest expense, income taxes, depreciation and amortization, once such amounts are known. It should be noted that our calculation of EBITDA may not be comparable to similarly titled measures reported by other companies.

EBITDA information has been included because it is a commonly used by shareholders and analysts to measure our operating performance in our industry and it allows for a consistent comparison between peer companies. We also use EBITDA to evaluate our operating performance and project future capital needs. The company has significant expenses, including depreciation and amortization, interest expense, and income taxes, which are not reflected in EBITDA.

SOURCE MasTec, Inc.