MasTec Announces Record Fourth Quarter Results
January 29, 2001
2000 Highlights - Strong Foundation for 2001
Our Highlights and Achievements Include:
-- Revenue increased 26% for the year
-- Net income increased 59% for the year
-- Earnings per share increased 40% for the year
-- Operating margins improved from 10.6% to 11.9% for the year for
North America
-- Strengthened balance sheet - rated investment grade
-- Added new services to our portfolio of solutions
MIAMI, Jan. 29 /PRNewswire/ -- MasTec, Inc. (NYSE: MTZ) reported net income of $24.5 million or $.50 per share on revenue of $377.6 million for the three months ended December 31, 2000, compared to net income of $17.0 million or $.39 per share on revenue of $312.4 million for the same period in 1999, an increase of 43% in net income and 21% in revenue over the same period last year. Cash basis earnings -- which exclude the amortization of intangibles -- were $0.53 per share in the fourth quarter of 2000 and $1.83 per share for the year.
For the year ended December 31, 2000, the Company reported net income of $81.0 million or $1.67 per share on revenue of $1.330 billion compared to net income of $50.7 million or $1.19 per share on revenue of $1.059 billion in 1999.
The above financial results exclude after tax charges of $17.3 million or $0.35 per share for the fourth quarter of 2000 and $15.9 million or $0.32 per share (net of previous gains) for the year ended December 31, 2000, as well as $6.0 million or $0.14 per share for the fourth quarter and year ended December 31, 1999 primarily related to non-core international assets.
"Our team members have once again delivered record results in 2000," said Joel-Tomas Citron, President and CEO. "Our business mix and operating methods allow us to gain profitable market share and deliver solid results. The strength of our long-cycle business such as master service agreements combined with our on-going initiatives -- branding, value added service offering and focus on operating efficiencies -- give us confidence that 2001 will be another year of strong earnings performance."
MasTec reported the following:
Datacom Network Services revenue was $326.5 million in the 2000 quarter, up 26% from $259.8 million in the same quarter last year. Operating margin was 14.6% in 2000 compared to 14.0% in the same quarter last year.
Energy Network Services revenue was $34.3 million in 2000, down 13% from $39.4 million in the same quarter last year. Operating margin was 8.2% in 2000, compared to 8.3% percent in the same quarter last year.
Our Brazilian operations reported revenue of $16.8 million in 2000 up 27% compared to $13.2 million in the same quarter last year.
Backlog at December 31, 2000 was $1.5 billion, including master service agreements, substantially all of which will be performed in the next 18 months.
We expect to continue to enhance profitability and drive efficiencies in our business in 2001. We are projecting consolidated growth in revenue of 17%-20% and EPS of $2.05 to $2.15. For the quarter ending March 31, 2001, we anticipate revenue of approximately $325 million and EPS of approximately $0.35.
Members of the executive team will hold a conference call on Tuesday, January 30, at 11 a.m. (EST) to discuss the Company's performance. The conference call number is 913-981-5543. Please dial in to the teleconference 10-15 minutes in advance. A conference call replay will be available from January 30 through February 13 by dialing 719-457-0820, confirmation code 491802. Additionally, the call will be webcasted. Please log on to http://www.videonewswire.com/MASTEC/013001/ 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 the 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 supporting the Internet, Internet-related applications, e-commerce and other communications and energy facilities for leading telecommunications, cable television, energy and Fortune 500 companies.
This press release and any accompanying documents contain or may 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. 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,
2000 1999 2000 1999
Revenue:
Datacom $326,485 $259,800 $1,132,599 $849,201
Energy 34,250 39,417 142,386 153,179
Brazil 16,891 13,229 55,311 55,220
Other 0 0 0 1,422
377,626 312,446 1,330,296 1,059,022
Costs of revenue 290,665 235,673 1,017,878 803,799
Depreciation 12,246 12,579 52,413 46,448
Amortization 2,399 3,018 11,042 9,700
General and administrative
expenses 27,645 27,405 98,521 91,898
Interest expense (3,908) (5,858) (18,283) (26,673)
Interest income 1,076 903 4,973 9,398
Other (expense) income, net (450) 165 563 108
Charges (a) (28,842) (10,200) (26,319) (10,200)
Income before provision for
income taxes and
minority interest 12,547 18,781 111,376 79,810
Provision for income taxes (4,997) (7,912) (45,877) (33,266)
Minority interest (311) 182 (352) (1,818)
Net income $7,239 $11,051 $65,147 $44,726
Pro forma earnings per share(a)
Weighted average common
shares outstanding 47,634 42,237 46,390 41,714
Basic earnings per share(a) $0.52 $0.40 $1.74 $1.22
Weighted average common
shares outstanding 49,441 43,535 48,374 42,624
Diluted earnings per share(a) $0.50 $0.39 $1.67 $1.19
Actual earnings per share
Basic earnings per share $0.15 $0.26 $1.40 $1.07
Diluted earnings per share $0.15 $0.25 $1.35 $1.05
(a) Charges primarily from write down of non-core assets net of gain,
not included in pro forma earnings per share of $17.3 million for
the quarter ended December 31, 2000, $15.9 million for the year
ended December 31, 2000 and $6.0 million for the fourth quarter and
year ended December 31, 1999.
MASTEC, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, December 31,
2000 1999
Assets
Current assets:
Cash and cash equivalents $18,457 $27,635
Accounts receivable, net 394,980 251,576
Inventories 19,643 14,264
Other current assets 29,184 34,634
Total current assets 462,264 328,109
Property and equipment, net 159,673 153,527
Intangibles, net 237,398 151,555
Other assets 80,544 95,218
Total assets $939,879 $728,409
Liabilities and Shareholders' Equity
Current Liabilities:
Current maturities of debt $5,685 $12,200
Accounts payable 85,797 74,408
Other current liabilities 108,379 71,882
Total current liabilities 199,861 158,490
Other liabilities 33,530 45,628
Long-term debt 206,160 267,458
Commitments and contingencies
Shareholders' equity:
Common stock 4,770 4,235
Capital surplus 346,099 167,387
Retained earnings 166,350 101,203
Accumulated translation (16,891) (15,992)
Total shareholders' equity 500,328 256,833
Total liabilities and
shareholders' equity $939,879 $728,409
MASTEC, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)
Year Ended December 31,
2000 1999
Cash flow from operating activities:
Net income $65,147 $44,726
Adjustments to reconcile net income
to net cash (used in) provided by
operating activities:
Depreciation and amortization 63,455 56,148
Minority interest 352 1,818
Loss on sale or write downs of assets 22,574 9,798
Changes in assets and liabilities
net of effect of acquisitions (163,400) 7,645
Net cash (used in) provided by
operating activities (11,871) 120,135
Net cash used in investing activities (57,676) (70,283)
Net cash provided by (used in)
financing activities 62,157 (38,791)
Net (decrease) increase in cash and
cash equivalents (7,390) 11,061
Effect of translation on cash (1,788) (3,290)
Cash and cash equivalents-beginning
of period 27,635 19,864
Cash and cash equivalents-end of period $18,457 $27,635
Contact: Carmen M. Sabater
Senior Vice President & CFO
305-406-1866
csabater@mastec.com
http://www.mastec.com
SOURCE MasTec, Inc.
Web site: http: //www.mastec.com
CONTACT: Carmen M. Sabater, Senior Vice President & CFO of MasTec, 305-406-1866, or csabater@mastec.com