MasTec Announces Fourth Quarter Results
February 19, 2002
MIAMI, Feb. 19 /PRNewswire-FirstCall/-- MasTec, Inc. (NYSE:MTZ) reported pro forma net income of $5.5 million or $0.12 per share on revenue of $252.9 million for the three months ended December 31, 2001, compared to pro forma net income of $24.5 million or $0.50 per share on revenue of $377.6 million for the same period in 2000. Pro forma results exclude a $37.5 million reserve charge related to receivables in the 2001 quarter and a $28.9 million charge in the 2000 quarter primarily related to write-downs of non-core assets.
Reported results including all charges for the 2001 quarter were a net loss of $18.2 million or $0.38 per share compared to net income of $7.2 million or $0.15 per share for 2000.
For the year ended December 31, 2001, MasTec reported pro forma net income of $39.3 million or $0.82 per share on revenue of $1.2 billion compared to pro forma net income of $80.7 million or $1.67 per share on revenue of $1.3 billion in 2000. Pro forma results exclude charges in 2001 totaling $210.2 million comprised of increases in reserves of $182.2 million relating to receivables, $11.5 million in severance, $6.5 million related to the write-down of an equity investment in a client and $10.0 million of non-core asset write-downs. The pro forma results for 2000 exclude charges of $26.3 million related to severance payments and non-core asset write-downs.
Reported consolidated results including all charges for the 2001 year were a net loss of $92.4 million or $1.93 per share compared to net income of $65.1 million or $1.35 per share in 2000.
The Company has improved its liquidity position from that of 2000. MasTec currently has approximately $41.0 million in borrowings against its new credit facility and has approximately $10 million in cash on hand. We also anticipate receiving approximately $45.0 million in income tax refunds in the first quarter of 2002 as a result of net losses reflected through December 31, 2001.
"Through 2001, MasTec endured the broad economic downturn and the specific impact of the decline in the competitive local exchange telecommunications market," said Austin Shanfelter, MasTec's President and Chief Executive Officer. "The result of 2001 has been a repositioning of our customers and our management and a concentration on our historical core business. In 2002, we expect MasTec to generate predictable, consistent earnings and cash flows and to capitalize on industry opportunities throughout the year."
Focusing on 2002, MasTec expects revenue for the year to be between $900 million and $1 billion and earnings per share to range from $.55 to $.65. MasTec expects revenue for the first quarter to be between $200 million and $225 million and earnings per share to range from $.03 to $.05. "The first quarter estimate reflects the slowdown in the market and represents the inflection point in MasTec's business," said Mr. Shanfelter.
Members of the executive team will hold a conference call on Wednesday, February 20, at 11 a.m. (EST) to discuss the Company 's performance. The conference call number is 913-981-5532. Please dial in to the teleconference 10-15 minutes in advance. A conference call replay will be available from February 20 through March 6 by dialing 719-457-0820, confirmation code 791805. Additionally, the call will be webcast live. Please log on to http://www.videonewswire.com/event.asp?id=3294 to listen to MasTec's
Earnings Conference Call.
Please visit MasTec's Investor Relations web page at
http://www.mastec.com/frame_investor.asp for financial sections of the press
release. These sections may be downloaded into Excel for your convenience in
analyzing Company data. Faxed copies of the financial sections are available
by calling toll free 1-800-444-7797.
MasTec is a leading end-to-end communications and energy infrastructure service provider in North America. MasTec <www.mastec.com> designs, builds, installs and maintains internal and external networks for leading telecommunications, cable television, energy and Fortune 1000 companies.
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.
MASTEC, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
2001 2000 2001 2000
Revenue :
North America $238,012 $360,735 $1,164,658 $1,274,985
International 14,893 16,891 57,922 55,311
252,905 377,626 1,222,580 1,330,296
Costs of revenue 202,696 290,665 988,198 1,017,878
Depreciation 12,563 12,246 51,707 52,413
Amortization 2,785 2,399 10,810 11,042
General and administrative
expenses 26,019 27,645 96,345 98,521
Reserve / severance charge 37,521 3,876 193,695 5,584
Interest expense 5,215 3,908 20,426 18,283
Interest income 257 1,076 5,775 4,973
Other (loss) income, net 1,211 (25,416) (14,618) (20,172)
(Loss) income before benefit
(provision) for income
taxes and
minority interest (32,426) 12,547 (147,444) 111,376
Benefit (provision) for
income taxes 14,072 (4,997) 54,858 (45,877)
Minority interest 107 (311) 232 (352)
Net (loss) income $(18,247) $7,239 $(92,354) $65,147
Pro forma net income and
earnings per share:
Net income $5,541 $24,544 $39,320 $80,675
Weighted average common
shares outstanding 47,876 47,634 47,790 46,390
Pro forma basic earnings
per share (1) (2) $0.12 $0.52 $0.82 $1.74
Weighted average common
shares outstanding 47,947 49,441 47,989 48,374
Pro forma diluted earnings
per share (1) (2) $0.12 $0.50 $0.82 $1.67
Reported earnings per share:
Basic earnings per share $(0.38) $0.15 $(1.93) $1.40
Diluted earnings per share $(0.38) $0.15 $(1.93) $1.35
(1) Excludes a $37.5 million and a $210.2 million charge primarily related
to receivables for the three months and twelve months ended
December 31, 2001, respectively.
(2) Excludes severance and non-core assets charges of $28.9 million and
$26.3 million for the three months and twelve months ended
December 31, 2000, respectively.
MASTEC, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, December 31,
2001 2000
Assets
Current assets:
Cash and cash equivalents $48,478 $18,457
Accounts receivable, unbilled
revenue and retainage, net 251,715 392,585
Inventories 25,697 19,643
Income tax refund receivable 44,904 -
Other current assets 23,078 23,079
Total current assets 393,872 453,764
Property and equipment, net 151,774 159,673
Intangibles, net 264,826 262,398
Other assets 40,900 80,510
Total assets $851,372 $956,345
Liabilities and
Shareholders' Equity
Current liabilities:
Current maturities of debt $1,892 $3,323
Accounts payable 75,508 85,797
Other current liabilities 68,410 122,207
Total current liabilities 145,810 211,327
Other liabilities 30,902 38,530
Long-term debt 267,857 206,160
Commitments and contingencies
Shareholders' equity:
Common stock 4,791 4,770
Capital surplus 348,022 346,099
Retained earnings 73,996 166,350
Foreign currency translation
adjustments (20,006) (16,891)
Total shareholders' equity 406,803 500,328
Total liabilities and
shareholders' equity $851,372 $956,345
MASTEC, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Twelve Months Ended December 31,
2001 2000
Cash flows from operating activities:
Net (loss) income $(92,354) $65,147
Adjustments to reconcile net (loss)
income to net cash provided by
(used in)
operating activities:
Depreciation and amortization 62,517 63,455
Minority interest (232) 352
Gain on sale of assets (863) (450)
Write-downs of assets 196,200 23,024
Changes in assets and liabilities
net of effect of acquisitions (110,456) (163,399)
Net cash provided by (used in)
operating activities 54,812 (11,871)
Cash flows from investing activities:
Capital expenditures (43,915) (52,638)
Cash paid for acquisitions (net of
cash acquired) and contingent
consideration (30,313) (55,303)
Other investing activities (9,114) 50,265
Net cash used in investing activities (83,342) (57,676)
Net cash provided by financing
activities 59,791 62,157
Net increase in cash and cash
equivalents 31,261 (7,390)
Effect of translation on cash (1,240) (1,788)
Cash and cash equivalents-beginning
of period 18,457 27,635
Cash and cash equivalents-end of
period $48,478 $18,457
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SOURCE MasTec, Inc.
Web site: http: //www.mastec.com http://www.videonewswire.com/event.asp?id=3294
CONTACT: Donald P. Weinstein, Executive Vice President & CFO of MasTec, +1-305-406-1866, or dweinstein@mastec.com