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MasTec Announces Fourth Quarter and Annual Results, Amended and Expanded Credit Facility and Issues 2017 Guidance

February 23, 2017

- Record Q4 and Annual 2016 Revenue Increased Organically 31% and 22%, respectively, with Annual Revenue at $5.1 Billion
- Q4 and Annual 2016 Significantly Improved Financial Results, with GAAP Net Income of $55.9 Million and $134.0 Million, Respectively
- Q4 and Annual 2016 Adjusted EBITDA of $154 Million and $477 Million, $22 Million Above Forecast

CORAL GABLES, Fla., Feb. 23, 2017 /PRNewswire/ -- MasTec, Inc. (NYSE: MTZ) today announced better than expected 2016 fourth quarter and full year financial results, and issued its initial 2017 guidance range.

  • Fourth quarter 2016 revenue was $1.34 billion, a 31% increase compared with $1.03 billion for the same period last year. GAAP net income was $55.9 million, or $0.66 per diluted share, compared to a net loss of $76.9 million, or $0.96 per diluted share, in the fourth quarter of 2015. The net loss in the 2015 period was primarily caused by a non-cash goodwill and intangible asset impairment related to the Company's western Canadian Oil and Gas operations. 
  • Fourth quarter 2016 adjusted net income, a non-GAAP measure, was $60.0 million compared to $16.8 million in the same period of the prior year.  Fourth quarter 2016 adjusted diluted earnings per share, a non-GAAP measure, was $0.70, compared to $0.21 in the fourth quarter of 2015, and exceeded the company's previously announced 2016 fourth quarter guidance expectation by $0.16 per adjusted diluted share.
  • Fourth quarter 2016 adjusted EBITDA, also a non-GAAP measure, was $154 million, an 87% increase compared to $82 million in the same period in 2015.
  • 18-month backlog as of December 31, 2016 was $5.4 billion, including record Oil & Gas segment backlog of $2.2 billion.

The Company also reported:

  • For the year ended December 31, 2016, revenue was $5.1 billion, a 22% increase compared with $4.2 billion for the prior year. GAAP net income was $134.0 million, or $1.61 per diluted share, compared to a net loss of $79.7 million, or $0.98 per diluted share, in 2015.
  • Full year 2016 adjusted net income, a non-GAAP measure, was $157.7 million compared to $51.4 million for 2015.  Full year 2016 adjusted diluted earnings per share, a non-GAAP measure, was $1.90, compared to $0.64 in 2015, and exceeded the company's previously announced 2016 full year guidance expectation by $0.17 per adjusted diluted share.
  • Full year 2016 adjusted EBITDA, also a non-GAAP measure, was $477 million, a 55% increase compared to $308 million in 2015.
  • During the year ended December 31, 2016, the Company significantly improved its leverage metrics, reducing its book leverage ratio, as noted in the attached schedule, from 3.3 at the beginning of the year to 2.1 as of December 31, 2016.

Adjusted net income, adjusted diluted earnings per share, adjusted EBITDA and book leverage ratio, which are all non-GAAP measures, exclude certain items which are detailed and reconciled to the most comparable GAAP-reported measures in the attached Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures.

Jose Mas, MasTec's Chief Executive Officer, commented, "We exceeded our fourth quarter expectations, driven primarily by improved productivity in our Oil & Gas segment. We also signed pipeline contracts approximating $1.7 billion during the quarter, ending the year, as expected, with record Oil & Gas segment backlog. We expect record results for our Oil & Gas segment in 2017 and continue to have clear visibility to continued opportunities in this segment for several years."

Mr. Mas continued, "I want to thank the men and women of MasTec for their dedicated efforts during 2016 and look forward to a great 2017 and beyond."

The company also announced that it has entered into an amended and restated credit facility with a syndicate of lenders led by Bank of America, N.A. and SunTrust Bank, which increased the capacity under the senior secured credit facility by over $250 million to $1.5 billion and extended the maturity date of the facility to February 2022. The amended credit facility also contains more favorable terms and provides additional flexibility for borrowings in foreign currencies.

George Pita, MasTec's Executive Vice President and Chief Financial Officer noted, "We had strong financial performance and working capital management during 2016, enabling us to significantly improve our leverage ratios, despite the working capital usage associated with over $900 million in organic revenue growth during the year. We appreciate the continued support and confidence of the financial institutions involved in our credit facility. The amended facility further strengthens our capital structure and liquidity, allowing us full financial flexibility to take advantage of the significant growth opportunities in the markets we serve."

Based on the information available today, the Company is providing both first quarter and full year 2017 guidance. The Company currently estimates 2017 revenue will increase 7% to approximately $5.5 billion. 2017 full year GAAP net income is expected to approximate $188 million, with adjusted EBITDA, a non-GAAP measure, expected to increase 15% to $550 million. 2017 full year GAAP diluted earnings per share are expected to be $2.24, a 39% increase over 2016, with adjusted diluted earnings per share, a non-GAAP measure, expected to be $2.35, a 24% increase over 2016.

For the first quarter of 2017, the Company expects revenue of approximately $1.05 billion.  First quarter 2017 GAAP net income is expected to approximate $40 million, with adjusted EBITDA, a non-GAAP measure, expected to increase 132% and approximate $125 million. First quarter 2017 GAAP diluted earnings per share are expected to approximate $0.48 with adjusted diluted earnings per share, a non-GAAP measure, expected to approximate $0.51. First quarter 2017 guidance reflects expected improved Oil & Gas segment performance due to higher revenues and efficiencies, as well as improvement in the Electrical Transmission segment results.

Management will hold a conference call to discuss these results on Friday, February 24, 2017 at 9:00 a.m. Eastern time.  The call-in number for the conference call is (719) 457-2601 and the replay number is (719) 457-0820, with a pass code of 6638861.  The replay will be available for 30 days.  Additionally, the call will be broadcast live over the Internet and can be accessed and replayed through the Investors section of the Company's website at www.mastec.com.

The following tables set forth the financial results for the periods ended December 31, 2016 and 2015:

 

Condensed Unaudited Consolidated Statements of Operations

(In thousands, except per share amounts)
 
   

For the Three Months Ended

December 31,

  

For the Years Ended

December 31,
   

2016

  

2015

  

2016

  

2015
                 

Revenue  

$

1,341,892

$

1,027,424

$

5,134,703

$

4,208,330

Costs of revenue, excluding depreciation and amortization    

 

1,120,554

  

916,231

  

4,442,125

  

3,721,303

Depreciation and amortization

 

42,666

  

41,614

  

164,915

  

169,662

Goodwill and intangible asset impairment

  

-

  

78,625

  

-

  

78,625

General and administrative expenses      

 

66,402

  

58,833

  

261,433

  

265,910

Interest expense, net

 

12,839

  

12,210

  

50,734

  

48,055

Equity (earnings) in losses of unconsolidated affiliates

  

21

  

4,383

  

(3,528)

  

7,978

Other (income) expense, net   

 

6,008

  

(16,203)

  

(6,795)

  

(15,457)

        Income (loss) before income taxes

$

93,402

$

(68,269)

$

225,819

$

(67,746)

Provision for income taxes     

 

(37,453)

  

(8,668)

  

(91,784)

  

(11,957)

Net income (loss)  

$

55,948

$

(76,937)

$

134,035

$

(79,703)

Net income (loss) attributable to non-controlling interests  

 

2,357

  

(172)

  

2,772

  

(593)

Net income (loss) attributable to MasTec, Inc.

$

53,591

$

(76,765)

$

131,263

$

(79,110)
                 

Earnings per share:

                

Basic earnings (loss) per share

$

0.67

$

(0.96)

$

1.63

$

(0.98)

Basic weighted average common shares outstanding

  

80,515

  

79,920

  

80,372

  

80,489

Diluted earnings (loss) per share

$

0.66

$

(0.96)

$

1.61

$

(0.98)

Diluted weighted average common shares outstanding

  

81,740

  

79,920

  

81,394

  

80,489

 

 

Condensed Unaudited Consolidated Balance Sheets

(In thousands)
 
   

December 31,
   

2016

  

2015

Assets

        

Current assets         

$

1,402,486

$

1,129,758

Property and equipment, net   

 

549,084

  

558,667

Goodwill and other intangibles, net        

 

1,175,585

  

1,187,890

Other long-term assets           

 

55,977

  

51,032

Total assets   

$

3,183,132

$

2,927,347
         
         

Liabilities and Equity

        

Current liabilities    

$

839,990

$

752,535

Long-term debt       

 

961,379

  

932,868

Long-term deferred tax liabilities, net     

 

178,355

  

188,759

Other long-term liabilities       

 

99,774

  

109,794

Equity     

 

1,103,634

  

943,391

        Total liabilities and equity           

$

3,183,132

$

2,927,347

 

 

Condensed Unaudited Consolidated Statements of Cash Flows

(In thousands)
 
   

December 31,
   

2016

  

2015
         

Net cash provided by operating activities

$

205,593

$

367,413

Net cash used in investing activities

  

(141,021)

  

(128,700)

Net cash used in financing activities      

 

(29,486)

  

(258,920)

Effect of currency translation on cash    

 

(1,303)

  

1,132

        Net increase (decrease) in cash and cash equivalents      

 

33,783

  

(19,075)

Cash and cash equivalents - beginning of period   

$

4,984

$

24,059

        Cash and cash equivalents - end of period

$

38,767

$

4,984

 

 

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures - Unaudited

(In millions, except for book leverage ratios)
 
   

For the Years Ended

December 31,
   

2016

  

2015

Book Leverage Ratio Calculation

        

Current portion of long-term debt           

$

64.6

$

77.4

Long-term debt

  

961.4

  

932.9

   Total debt 

$

1,026.0

$

1,010.3

Cash and cash equivalents

  

(38.8)

  

(5.0)

   Net debt

$

987.2

$

1,005.3

Adjusted EBITDA

  

476.9

  

308.1

Book leverage ratio

  

                         2.1x

  

                         3.3x
         

                               

 

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures - Unaudited

(In millions, except for percentages and per share amounts)
 
   

For the Three Months Ended
December 31,

  

For the Years Ended    

December 31,

Segment Information

  

2016

  

2015

  

2016

  

2015

Revenue by Reportable Segment

                

Communications

$

595.6

$

521.1

$

2,323.6

$

1,973.2

Oil and Gas

  

570.1

  

350.9

  

2,024.4

  

1,495.1

Electrical Transmission

  

100.2

  

71.3

  

383.8

  

341.5

Power Generation and Industrial

  

81.1

  

79.3

  

405.7

  

381.6

Other

  

1.0

  

6.8

  

15.9

  

24.1

Eliminations

  

(6.0)

  

(2.0)

  

(18.7)

  

(7.2)

Corporate

  

-

  

-

  

-

  

-

Consolidated revenue

$

1,341.9

$

1,027.4

$

5,134.7

$

4,208.3
                 
   

For the Three Months Ended
December 31,

  

For the Years Ended    

December 31,
   

2016

  

2015

  

2016

  

2015

Adjusted EBITDA by Reportable Segment

               

Communications

$

53.8

$

53.1

$

245.2

$

213.1

Oil and Gas

  

109.5

  

43.1

  

303.6

  

157.0

Electrical Transmission

  

0.6

  

(23.7)

  

(34.0)

  

(59.2)

Power Generation and Industrial

  

4.4

  

4.9

  

18.3

  

8.8

Other

  

0.0

  

0.8

  

2.6

  

1.9

Eliminations

  

-

  

-

  

-

  

-

Corporate

  

(14.2)

  

4.2

  

(58.8)

  

(13.5)

Adjusted EBITDA

$

154.1

$

82.3

$

476.9

$

308.1

Non-cash stock-based compensation expense

  

(3.8)

  

(2.9)

  

(15.1)

  

(12.4)

Restructuring charges

  

(1.4)

  

-

  

(15.2)

  

-

Goodwill and intangible asset impairment

  

-

  

(78.6)

  

-

  

(78.6)

Acquisition integration costs

  

-

  

-

  

-

  

(17.8)

Audit Committee investigation related costs

  

-

  

(2.8)

  

-

  

(16.5)

Losses on non-controlled joint venture

  

-

  

(8.0)

  

(5.1)

  

(16.3)

Court mandated mediation settlement

  

-

  

-

  

-

  

(12.2)

Loss on equity investee interest rate swaps

  

-

  

(4.4)

  

-

  

(4.4)

EBITDA

$

148.9

$

(14.4)

$

441.5

$

150.0
                 
   

For the Three Months Ended
December 31,

  

For the Years Ended    

December 31,
   

2016

  

2015

  

2016

  

2015

Adjusted EBITDA Margin by Reportable Segment

             

Communications

 

9.0%

  

10.2%

  

10.6%

  

10.8%

Oil and Gas            

 

19.2%

  

12.3%

  

15.0%

  

10.5%

Electrical Transmission          

 

0.6%

  

(33.3)%

  

(8.9)%

  

(17.3)%

Power Generation and Industrial            

 

5.4%

  

6.2%

  

4.5%

  

2.3%

Other

  

0.1%

  

11.1%

  

16.1%

  

8.1%

Eliminations

  

NA

  

NA

  

NA

  

NA

Corporate

 

NA

  

NA

  

NA

  

NA

Adjusted EBITDA margin

 

11.5%

  

8.0%

  

9.3%

  

7.3%

Non-cash stock-based compensation expense

  

(0.3)%

  

(0.3)%

  

(0.3)%

  

(0.3)%

Restructuring charges

  

(0.1)%

  

-

  

(0.3)%

  

-

Goodwill and intangible asset impairment

  

-

  

(7.7)%

  

-

  

(1.9)%

Acquisition integration costs

  

-

  

-

  

-

  

(0.4)%

Audit Committee investigation related costs

  

-

  

(0.2)%

  

-

  

(0.4)%

Losses on non-controlled joint venture

  

-

  

(0.8)%

  

(0.1)%

  

(0.4)%

Court mandated mediation settlement

  

-

  

-

  

-

  

(0.3)%

Loss on equity investee interest rate swaps

  

-

  

(0.4)%

  

-

  

(0.1)%

EBITDA margin

 

11.1%

  

(1.4)%

  

8.6%

  

3.6%

 

 

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures - Unaudited

 (In millions, except for percentages and per share amounts)
 
   

For the Three Months Ended

December 31,

  

For the Years Ended

December 31,
   

2016

  

2015

  

2016

  

2015

EBITDA and Adjusted EBITDA Reconciliation

                

Net income (loss)

$

55.9

$

(76.9)

$

134.0

$

(79.7)

Interest expense, net

 

12.8

  

12.2

  

50.7

  

48.1

Provision for income taxes

  

37.5

  

8.7

  

91.8

  

12.0

Depreciation and amortization

  

42.7

  

41.6

  

164.9

  

169.7

EBITDA

$

148.9

$

(14.4)

$

441.5

$

150.0

Non-cash stock-based compensation expense

 

3.8

  

2.9

  

15.1

  

12.4

Restructuring charges

  

1.4

  

-

  

15.2

  

-

Goodwill and intangible asset impairment

  

-

  

78.6

  

-

  

78.6

Acquisition integration costs

  

-

  

-

  

-

  

17.8

Audit Committee investigation related costs

  

-

  

2.8

  

-

  

16.5

Losses on non-controlled joint venture

  

-

  

8.0

  

5.1

  

16.3

Court mandated mediation settlement

  

-

  

(0.0)

  

-

  

12.2

Loss on equity investee interest rate swaps

  

-

  

4.4

  

-

  

4.4

Adjusted EBITDA

$

154.1

$

82.3

$

476.9

$

308.1
 
 
   

For the Three Months Ended

December 31,

  

For the Years Ended

December 31,
   

2016

  

2015

  

2016

  

2015

EBITDA and Adjusted EBITDA Reconciliation

                

Net income (loss)

  

4.2%

  

(7.5)%

  

2.6%

  

(1.9)%

Interest expense, net

 

1.0%

  

1.2%

  

1.0%

  

1.1%

Provision for income taxes

  

2.8%

  

0.8%

  

1.8%

  

0.3%

Depreciation and amortization

  

3.2%

  

4.1%

  

3.2%

  

4.0%

EBITDA

 

11.1%

  

(1.4)%

  

8.6%

  

3.6%

Non-cash stock-based compensation expense

  

0.3%

  

0.3%

  

0.3%

  

0.3%

Restructuring charges

  

0.1%

  

-

  

0.3%

  

-

Goodwill and intangible asset impairment

  

-

  

7.7%

  

-

  

1.9%

Acquisition integration costs

  

-

  

-

  

-

  

0.4%

Audit Committee investigation related costs

  

-

  

0.3%

  

-

  

0.4%

Losses on non-controlled joint venture

  

-

  

0.8%

  

0.1%

  

0.4%

Court mandated mediation settlement

  

-

  

0.0%

  

-

  

0.3%

Loss on equity investee interest rate swaps

  

-

  

0.4%

  

-

  

0.1%

Adjusted EBITDA

  

11.5%

  

8.0%

  

9.3%

  

7.3%

 

 

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures - Unaudited

 (In millions, except for percentages and per share amounts)
 
   

For the

Three Months Ended

December 31, 2016

    

For the

Year Ended

December 31, 2016

Adjusted Net Income Reconciliation

          

Net income

$

55.9

  

$

134.0

Non-cash stock-based compensation expense

  

3.8

    

15.1

Restructuring charges

  

1.4

    

15.2

Losses on non-controlled joint venture

  

-

    

5.1

Income tax effect of adjustments (a)

  

(1.2)

    

(11.7)

Adjusted net income

$

60.0

  

$

157.7
   
   

For the

Three Months Ended

December 31, 2016

    

For the

Year Ended

December 31, 2016

Adjusted Diluted EPS Reconciliation

         

Diluted earnings per share

$

0.66

  

$

1.61

Non-cash stock-based compensation expense

  

0.05

    

0.19

Restructuring charges

  

0.02

    

0.19

Losses on non-controlled joint venture

  

-

    

0.06

Income tax effect of adjustments (a)

  

(0.01)

    

(0.14)

Adjusted diluted earnings per share

$

0.70

  

$

1.90
 
   

For the

Three Months Ended

December 31, 2015

    

For the

Year Ended

December 31, 2015

Adjusted Net Income Reconciliation

          

Net (loss)

$

(76.9)

  

$

(79.7)

Non-cash stock-based compensation expense

  

2.9

    

12.4

Goodwill and intangible asset impairment

  

78.6

    

78.6

Acquisition integration costs

  

-

    

17.8

Audit Committee investigation related costs

  

2.8

    

17.4

Losses on non-controlled joint venture

  

8.0

    

16.3

Court mandated mediation settlement

  

-

    

12.2

Loss on equity investee interest rate swaps

  

4.4

    

4.4

Impact of Alberta tax law change

  

0.2

    

2.8

Income tax effect of adjustments (a)

  

(3.2)

    

(30.8)

Adjusted net income

$

16.8

  

$

51.4
   
   

For the

Three Months Ended

December 31, 2015

    

For the

Year Ended

December 31, 2015

Adjusted Diluted EPS Reconciliation

         

Diluted (loss) per share

$

(0.96)

  

$

(0.98)

Non-cash stock-based compensation expense

  

0.04

    

0.15

Goodwill and intangible asset impairment

  

0.98

    

0.97

Acquisition integration costs

  

-

    

0.22

Audit Committee investigation related costs

  

0.03

    

0.21

Losses on non-controlled joint venture

  

0.10

    

0.20

Court mandated mediation settlement

  

-

    

0.15

Loss on equity investee interest rate swaps

  

0.05

    

0.05

Impact of Alberta tax law change

  

-

    

0.03

Income tax effect of adjustments (a)

  

(0.04)

    

(0.38)

Adjusted diluted earnings per share

$

0.21

  

$

0.64
               

(a) Represents the tax effect of the adjusted items that are subject to tax. The tax effects of the adjusted items were determined based on the tax treatment of the related items, the incremental statutory tax rate of the jurisdictions pertaining to each adjustment, and taking into consideration their effect on pre-tax income.

 

 

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures - Unaudited

 (In millions, except for percentages and per share amounts)
 
   

Guidance for the

Three Months Ended

March 31, 2017 Est.

    

For the

Three Months Ended

March 31, 2016

EBITDA and Adjusted EBITDA Reconciliation 

         

Net income (loss)

$

40

  

$

(2.9)

Interest expense, net

  

13

    

12.2

Provision for income taxes

  

25

    

(2.1)

Depreciation and amortization

  

43

    

39.0

EBITDA

$

121

  

$

46.2

Non-cash stock-based compensation expense    

 

4

    

3.5

Restructuring charges

  

-

    

4.1

Adjusted EBITDA 

$

125

  

$

53.8
           

EBITDA and Adjusted EBITDA Margin Reconciliation 

         

Net income (loss)

 

3.8%

    

(0.3)%

Interest expense, net

  

1.3%

    

1.2%

Provision for income taxes

  

2.4%

    

(0.2)%

Depreciation and amortization

  

4.1%

    

4.0%

EBITDA margin 

 

11.5%

    

4.7%

Non-cash stock-based compensation expense    

 

0.4%

    

0.4%

Restructuring charges

  

-

    

0.4%

Adjusted EBITDA margin

  

11.9%

    

5.5%
   
   

Guidance for the

Three Months Ended

March 31, 2017 Est.

    

For the

Three Months Ended

March 31, 2016

Adjusted Net Income Reconciliation

        

Net income (loss)

$

40

  

$

(2.9)

Non-cash stock-based compensation expense

  

4

    

3.5

Restructuring charges

  

-

    

4.1

Income tax effect of adjustments (a)

  

(2)

    

(3.2)

Adjusted net income

$

42

  

$

1.5
   
   

Guidance for the

Three Months Ended

March 31, 2017 Est.

    

For the

Three Months Ended

March 31, 2016

Adjusted Diluted EPS Reconciliation

         

Diluted earnings (loss) per share

$

0.48

  

$

(0.03)

Non-cash stock-based compensation expense

  

0.05

    

0.04

Restructuring charges

  

-

    

0.05

Income tax effect of adjustments (a)

  

(0.02)

    

(0.04)

Adjusted diluted earnings per share

$

0.51

  

$

0.02
 

(a)    Represents the tax effect of the adjusted items that are subject to tax. The tax effects of the adjusted items were determined based on the tax treatment of the related items, the incremental statutory tax rate of the jurisdictions pertaining to each adjustment, and taking into consideration their effect on pre-tax income.

 

 

 

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures - Unaudited

(In millions, except for percentages and per share amounts)
 
   

Guidance for the Year Ended

December 31,

  

For the

Year Ended

December 31,

  

For the

Year Ended

December 31,
   

2017 Est.

  

2016

  

2015

EBITDA and Adjusted EBITDA Reconciliation

            

Net income (loss)

$

188

$

134.0

$

(79.7)

Interest expense, net

  

54

  

50.7

  

48.1

Provision for income taxes

  

120

  

91.8

  

12.0

Depreciation and amortization

  

173

  

164.9

  

169.7

EBITDA

$

535

$

441.5

$

150.0

Non-cash stock-based compensation expense  

 

15

  

15.1

  

12.4

Restructuring charges

  

-

  

15.2

  

-

Goodwill and intangible asset impairment

  

-

  

-

  

78.6

Acquisition integration costs             

 

-

  

-

  

17.8

Audit Committee investigation related costs

  

-

  

-

  

16.5

Losses on non-controlled joint venture

  

-

  

5.1

  

16.3

Court mandated mediation settlement

  

-

  

-

  

12.2

Loss on equity investee interest rate swaps

  

-

  

-

  

4.4

Adjusted EBITDA

$

550

$

476.9

$

308.1
             

EBITDA and Adjusted EBITDA Margin Reconciliation

          

Net income (loss)

  

3.4%

  

2.6%

  

(1.9)%

Interest expense, net

  

1.0%

  

1.0%

  

1.1%

Provision for income taxes

  

2.2%

  

1.8%

  

0.3%

Depreciation and amortization

  

3.1%

  

3.2%

  

4.0%

EBITDA margin

  

9.7%

  

8.6%

  

3.6%

Non-cash stock-based compensation expense  

 

0.3%

  

0.3%

  

0.3%

Restructuring charges

  

-

  

0.3%

  

-

Goodwill and intangible asset impairment

  

-

  

-

  

1.9%

Acquisition integration costs             

 

-

  

-

  

0.4%

Audit Committee investigation related costs

  

-

  

-

  

0.4%

Losses on non-controlled joint venture

  

-

  

0.1%

  

0.4%

Court mandated mediation settlement

  

-

  

-

  

0.3%

Loss on equity investee interest rate swaps

  

-

  

-

  

0.1%

Adjusted EBITDA margin

  

10.0%

  

9.3%

  

7.3%
             
   

Guidance for the
Year Ended

December 31,

  

For the

Year Ended

December 31,

  

For the

Year Ended

December 31,
   

2017 Est.

  

2016

  

2015

Adjusted Net Income Reconciliation

            

Net income (loss)

$

188

$

134.0

$

(79.7)

Non-cash stock-based compensation expense   

 

15

  

15.1

  

12.4

Restructuring charges

  

-

  

15.2

  

-

Goodwill and intangible asset impairment

  

-

  

-

  

78.6

Acquisition integration costs

  

-

  

-

  

17.8

Audit Committee investigation related costs

  

-

  

-

  

17.4

Losses on non-controlled joint venture 

 

-

  

5.1

  

16.3

Court mandated mediation settlement

  

-

  

-

  

12.2

Loss on equity investee interest rate swaps

  

-

  

-

  

4.4

Impact of Alberta tax law change

  

-

  

-

  

2.8

Income tax effect of adjustments (a)

 

(6)

  

(11.7)

  

(30.8)

Adjusted net income

$

197

$

157.7

$

51.4
             
   

Guidance for the
Year Ended

December 31,

  

For the

Year Ended

December 31,

  

For the

Year Ended

December 31,
   

2017 Est.

  

2016

  

2015

Adjusted Diluted EPS Reconciliation

            

Diluted earnings (loss) per share

$

2.24

$

1.61

$

(0.98)

Non-cash stock-based compensation expense   

 

0.18

  

0.19

  

0.15

Restructuring charges

  

-

  

0.19

  

-

Goodwill and intangible asset impairment

  

-

  

-

  

0.97

Acquisition integration costs

  

-

  

-

  

0.22

Audit Committee investigation related costs

  

-

  

-

  

0.21

Losses on non-controlled joint venture

  

-

  

0.06

  

0.20

Court mandated mediation settlement

  

-

  

-

  

0.15

Loss on equity investee interest rate swaps

  

-

  

-

  

0.05

Impact of Alberta tax law change

  

-

  

-

  

0.03

Income tax effect of adjustments (a)

  

(0.07)

  

(0.14)

  

(0.38)

Adjusted diluted earnings per share

$

2.35

$

1.90

$

0.64
 

(a) Represents the tax effect of the adjusted items that are subject to tax. The tax effects of the adjusted items were determined based on the tax treatment of the related items, the incremental statutory tax rate of the jurisdictions pertaining to each adjustment, and taking into consideration their effect on pre-tax income.

 

Tables may contain differences due to rounding.

MasTec, Inc. is a leading infrastructure construction company operating mainly throughout North America across a range of industries.  The Company's primary activities include the engineering, building, installation, maintenance and upgrade of communications, energy and utility infrastructure, such as: wireless, wireline/fiber, satellite communications and customer fulfillment activities; petroleum and natural gas pipeline infrastructure; electrical utility transmission and distribution; power generation; and industrial infrastructure.  MasTec's customers are primarily in these industries.  The Company's corporate website is located at www.mastec.com.  The Company's website should be considered as a recognized channel of distribution, and the Company may periodically post important, or supplemental, information regarding contracts, awards or other related news on the Presentations/Webcasts page in the Investors section therein. 

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 trends in oil, natural gas, electricity and other energy source prices;  volatility in capital expenditures by our customers, financing availability and cost, customer consolidation and technological and regulatory changes in the industries we serve; our ability to accurately estimate the costs associated with our fixed price and other contracts, including any material changes in estimates for completion of projects, and performance on such projects; our ability to manage projects effectively and in accordance with our estimates;  the effect of economic conditions on demand for our services; market conditions, technological developments and regulatory changes that affect us or our customers' industries; the highly competitive nature of our industry; risks related to our strategic arrangements, including our cost and equity investees;  fluctuations in foreign currencies; risks associated with operating in or expanding into additional international markets, which could restrict our ability to expand globally and harm our business and prospects or any failure to comply with laws applicable to our foreign activities; customer disputes related to our performance of services; disputes with, or failures of, our subcontractors to deliver agreed-upon supplies or services in a timely fashion; any material changes in estimates for legal costs or case settlements or adverse determinations on any claim, lawsuit or proceeding; our ability to replace non-recurring projects with new projects; the timing and extent of fluctuations in geographic, weather, equipment and operational factors affecting the industries in which we operate; our ability to attract and retain qualified personnel, key management and skilled employees, including from acquired businesses, and our ability to enforce any noncompetition agreements, integrate acquired businesses within expected timeframes and achieve the revenue, cost savings and earnings levels from such acquisitions at or above the levels projected, including the risk of potential asset impairment charges, including write-downs of goodwill; any exposure related to divested businesses; any exposure resulting from system or information technology interruptions or data security breaches; risks related to the restatement of certain of our fiscal year 2014 interim financial statements; the impact of U.S. federal, local or state tax legislation and other regulations affecting corporate income taxes, as well as, those affecting renewable energy, electricity prices, electrical transmission, oil and gas production, broadband and related projects and expenditures; the effect of state and federal regulatory initiatives, including costs of compliance with existing and future environmental requirements; increases in fuel, maintenance, materials, labor and other costs; our dependence on a limited number of customers; the ability of our customers, including our largest customers, to terminate or reduce the amount of work, or in some cases, the prices paid for services on short or no notice under our contracts; the impact of any unionized workforce on our operations, including labor availability and relations; liabilities associated with multi-employer pension plans, including underfunding and withdrawal liabilities, for our operations that employ unionized workers; the adequacy of our insurance, legal and other reserves and allowances for doubtful accounts; restrictions imposed by our credit facility, senior notes, and any future loans or securities; our ability to obtain performance and surety bonds; the outcome of our plans for future operations, growth and services, including business development efforts, backlog, acquisitions and dispositions; any dilution or stock price volatility that shareholders may experience in connection with shares we may issue as consideration for earn-out obligations or as purchase consideration in connection with past or future acquisitions, or other stock issuances; 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.

 

 

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mastec-announces-fourth-quarter-and-annual-results-amended-and-expanded-credit-facility-and-issues-2017-guidance-300412923.html

SOURCE MasTec, Inc.

J. Marc Lewis, Vice President-Investor Relations, 305-406-1815, 305-406-1886 fax, marc.lewis@mastec.com

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