MasTec Reports 109% Rise in Income from Continuing Operations in 2006
CORAL GABLES, Fla., March 8 /PRNewswire-FirstCall/ -- MasTec, Inc. (NYSE: MTZ) today announced results for the quarter and year ended December 31, 2006.
For the year ended December 31, 2006, income from continuing operations was $38.9 million, or $0.60 diluted earnings per share, on revenue of $945.8 million. This compares with income from continuing operations of $18.6 million, or $0.37 diluted per share, on revenue of $848.0 million for the prior year. Non-cash 123R stock-based compensation expense of $7.4 million and $0.5 million was included in the results for 2006 and 2005, respectively.
For the quarter ended December 31, 2006, income from continuing operations was $9.0 million, or $0.14 diluted earnings per share, on revenue of $241.1 million. This compares with income from continuing operations of $8.1 million, or $0.16 diluted per share, on revenue of $223.4 million in the prior year quarter. Non-cash 123R stock-based compensation expense of $2.0 million and $0.1 million was included in the fourth quarter results for 2006 and 2005, respectively.
MasTec had gross liquidity, defined as bank cash plus credit line availability, of approximately $124.2 million at December 31, 2006 compared with $58.5 million at the end of 2005. MasTec currently has no cash draws on its bank credit facility.
Austin J. Shanfelter, MasTec's President and Chief Executive Officer, commented, "We have had quite a few positive developments since December of 2005. Our major discontinued operations, and the related distractions, are now behind us and we have completely recapitalized the Company. Our balance sheet has been enhanced with $156 million in new equity and a $150 million, 7 5/8 percent, 10-year, senior note issue, both providing greater financial flexibility for the Company. These events establish the platform for full concentration on business improvements and opportunities under Jose Mas' leadership. I am extremely excited about remaining on MasTec's Board and about Jose's leadership going into 2007."
MasTec's previous guidance forecast for 2007 remains unchanged and it expects revenue to be in the range of $1.04 to $1.06 billion. Earnings per share from continuing operations for 2007 is expected to be between $0.80 and $0.90 per share.
The following tables set forth the financial results for the periods ended December 31, 2005 and 2006:
Consolidated Statements of Operations
(In thousands except per share amounts)
Three Months Ended
Year Ended December 31, December 31,
2006 2005 2006 2005
Revenue $945,806 $848,046 $241,084 $223,442
Costs of revenue 813,406 731,504 208,582 188,119
Depreciation 14,664 16,341 3,893 3,696
General and
administrative
expenses 74,610 64,266 19,486 18,391
Interest expense,
net of interest
income 10,023 19,233 2,034 4,887
Other income
(expense), net 8,106 3,616 3,008 505
Income (loss) from
continuing operations
before benefit for
income taxes and
minority interest 41,209 20,318 10,097 8,854
Minority interest (2,294) (1,714) (1,114) (719)
Income (loss) from
continuing
operations 38,915 18,604 8,983 8,135
Discontinued operations:
Loss from discontinued
operations, net (89,263) (32,637) (23,828) (19,602)
Loss on write-off of
assets of discontinued
operations, net - (583) - -
Net Loss $(50,348) $(14,616) $(14,845) $(11,467)
Basic net (loss)
income per share:
Continuing operations $0.61 $0.38 $0.14 $0.17
Discontinued
operations (1.40) (0.68) (0.37) (0.40)
Total basic net
loss per share $(0.79) $(0.30) $(0.23) $(0.23)
Basic weighted average
common shares
outstanding 63,574 48,952 65,128 49,179
Diluted net (loss)
income per share:
Continuing operations $0.60 $0.37 $0.14 $0.16
Discontinued
operations (1.37) (0.66) (0.36) (0.39)
Total diluted net
loss per share $(0.77) $(0.29) $(0.22) $(0.23)
Diluted weighted
average common shares
outstanding 65,119 49,795 66,317 50,147
Consolidated Balance Sheets
(In thousands)
December 31
2006 2005
Assets
Current assets $339,920 $305,307
Property and equipment, net 61,400 48,027
Goodwill 150,702 127,143
Deferred taxes, net 49,317 51,468
Other assets 44,704 46,070
Long-term assets held for sale 70 6,149
Total assets $646,113 $584,164
Liabilities and Shareholders' Equity
Current liabilities $175,878 $170,238
Other liabilities 36,521 37,359
Long-term debt 128,407 196,104
Long-term liabilities related to
assets held for sale 596 860
Shareholders' equity 304,711 179,603
Total liabilities and shareholders' equity $646,113 $584,164
Consolidated Statements of Cash Flows
(In thousands)
Years Ended December 31,
2006 2005
Net cash provided by (used in)
operating activities $46,207 $(18,434)
Net cash used in investing activities (40,781) (2,314)
Net cash (used in) provided by
financing activities 81,783 3,320
Net increase (decrease) in cash and
cash equivalents 87,209 (17,428)
Net effect of translation on cash (187) (96)
Cash and cash equivalents--beginning of period 2,024 19,548
Cash and cash equivalents--end of period $89,046 $2,024
MasTec will hold a conference call to discuss these results on Friday, March 9, 2006 at 10:00 a.m. Eastern time. The call-in number for the conference call is (913) 312-1292 and the replay number is (719) 457-0820, with a pass code of 3861324. 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 its website at www.mastec.com. MasTec has filed its Form 10-K annual report with the Securities and Exchange Commission, which is available, free of charge, through the investor relations page of the Company's website, or by request through MasTec's investor relations department.
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.
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.
-0- 03/08/2007
/CONTACT: J. Marc Lewis, Vice President-Investor Relations of MasTec,
Inc., +1-305-406-1815, or fax +1-305-406-1886, or marc.lewis@mastec.com /
/Web site: http://www.mastec.com/
(MTZ)
CO: MasTec, Inc.
ST: Florida
IN: TLS CPR
SU: ERN CCA
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9036 03/08/2007 18:02 EST http://www.prnewswire.com