CORAL GABLES, Fla., May 2 /PRNewswire-FirstCall/ -- MasTec, Inc. (NYSE: MTZ) today announced that for the quarter ended March 31, 2007, income from continuing operations was $7.0 million, or $0.11 earnings per diluted share, on revenue of $241 million. This compares with income from continuing operations of $4.1 million, or $0.07 per diluted share, on revenue of $218 million in the prior year quarter.

Other metrics have also improved. Cash was $114 million at quarter end, compared with $72 million at the end of the first quarter of 2006. Cash collections also continue to improve. Accounts receivable days sales outstanding, or DSOs, improved again this quarter down to 61 days, the best in years. This represents a dramatic improvement compared with 86 days just 18 months ago.

Jose R. Mas, MasTec's President and Chief Executive Officer, commented, "We are off to a good start in 2007 with some significant accomplishments during the first quarter. We refinanced our outstanding bonds for 10 years with improved economics and flexibility. We made a number of hires for our operational management team and started several new customer relationships. We exited poorly performing contracts and sold two underperforming businesses, allowing us to focus on our core businesses. Finally, we also made a strategic acquisition."

Mr. Mas added, "While we continue to make financial progress, we have defined a number of operational objectives for MasTec going forward. Improving operating margins is our number one goal. Additionally, we will focus on expanding our customer base to reduce customer concentration. We will continue to make investments in personnel and equipment to position the Company to participate in projects with higher margins, particularly in the energy transmission area. While our principal strategy concentrates on organic growth, we will consider targeted acquisitions that expand and complement our existing operational footprint."

MasTec's 2007 guidance forecast remains unchanged. The Company expects revenue to be in the range of $1.04 to $1.06 billion, with earnings per share from continuing operations expected to be between $0.80 and $0.90 per share.

Management will hold a conference call to discuss results of operations for the quarter ended March 31, 2007 on Thursday, May 3, 2007 at 10:30 a.m. Eastern time. The call-in number for the conference call is (913) 981-5542 and the replay number is (719) 457-0820, with a pass code of 7997144. The replay will run for 30 days. Additionally, the call will be broadcast live over the Internet and can be accessed and replayed through the investor relations section of the Company's website at http://www.mastec.com.

    Summary financials for the quarters are as follows:



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

                                                  For the Three Months Ended
                                                             March 31,
                                                       2007           2006
    Revenue                                          $240,996       $217,608
    Costs of revenue, excluding depreciation          210,591        190,738
    Depreciation                                        3,780          3,514
    General and administrative expenses,
     including non-cash stock compensation
     expense of $1,967 in 2007 and $1,181 in
     2006                                              19,679         16,131
    Interest expense, net of interest income            2,795          3,496
    Other income (expense), net                         3,485            262
      Income from continuing operations before
       minority interest                                7,636          3,991
    Minority interest                                    (617)           129
      Income from continuing operations                 7,019          4,120

    Loss from discontinued operations                  (5,349)        (8,344)
      Net income (loss)                              $  1,670       $ (4,224)

    Basic net income (loss) per share:
      Continuing operations                          $   0.11       $   0.07
      Discontinued operations                           (0.08)         (0.14)
      Total basic net income (loss) per share        $   0.03          (0.07)
    Basic weighted average common shares
     outstanding                                       65,414       $ 59,291

    Diluted net income (loss) per share:
      Continuing operations                          $   0.11          $0.07
      Discontinued operations                           (0.08)         (0.14)
      Total diluted net income (loss) per share      $   0.03       $  (0.07)

    Diluted weighted average common shares
     outstanding                                       66,586         61,028



                      Condensed Unaudited Balance Sheets
                                (In thousands)

                                                     March 31,   December 31,
                                                       2007            2006
                                                   (Unaudited)      (Audited)
                  Assets
    Total current assets                             $339,305         $339,920
    Property and equipment, net                        63,607           61,212
    Goodwill                                          177,922          151,600
    Deferred taxes, net                                53,462           49,317
    Other assets                                       24,969           43,405
    Long-term assets held for sale                        171              659
        Total assets                                 $659,436         $646,113

           Liabilities and Shareholders' Equity
    Current liabilities                              $154,778         $175,878
    Other liabilities                                  35,656           36,521
    Long-term debt                                    157,699          128,407
    Long-term liabilities related to assets
     held for sale                                          -              596
    Total shareholders' equity                        311,303          304,711
        Total liabilities and shareholders'
         equity                                      $659,436         $646,113



                 Condensed Unaudited Statements of Cash Flows
                                (In thousands)

                                                        For the Three Months
                                                           Ended March 31,
                                                        2007            2006
    Cash flows from operating activities:
      Net cash provided by operating activities       $16,076         $13,992
      Net cash (used in) investing activities         (17,436)        (22,853)
      Net cash provided by financing activities        25,830          78,864
      Net increase in cash and cash equivalents        24,470          70,003
      Net effect of currency translation on cash            9              (2)
      Cash and cash equivalents - beginning of
       period                                          89,046           2,024
    Cash and cash equivalents - end of period        $113,525         $72,025

MasTec is a leading specialty contractor operating throughout North America across a range of industries. The Company's core activities are the building, installation, maintenance and upgrade of communication and utility infrastructure systems. The Company's corporate website is located at http://www.mastec.com.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These statements are based on management's current expectations and are subject to a number of risks, uncertainties, and assumptions, including that our revenue and earnings per share may differ from that projected, that we may be impacted by business and economic conditions affecting our customers, material changes in estimates for legal costs or case settlements, the highly competitive nature of our industry, dependence on a limited number of customers, the ability of our customers to terminate or reduce the amount of work, or in some cases prices paid for services under many of our contracts, the adequacy of our insurance and other reserves and allowances for doubtful accounts, restrictions imposed by our credit facility and senior notes, the outcome of our plans for future operations, growth, and services, including backlog and acquisitions , as well as other risks detailed in our filings with the Securities and Exchange Commission. Actual results may differ significantly from results expressed or implied in these statements. We do not undertake any obligation to update forward-looking statements.

SOURCE MasTec, Inc.

CONTACT: J. Marc Lewis, Vice President-Investor Relations of MasTec, Inc., +1-305-406-1815, fax, +1-305-406-1886, marc.lewis@mastec.com