MasTec's Net Income Rises 53% on 31% Increase in Revenue
April 29, 2009
-Gross Profit improved 46% - margin up 160 basis points
-Net Income improved 53% - margin up 50 basis points
-EBITDA improved 83% - margin up 240 basis points
-Cash Provided by Operating Activities increased 7-fold to $49 million
CORAL GABLES, Fla.,
The Company continued to focus on margin improvement and cost containment. First quarter gross margin improved to 15.0% from 13.4% from the previous year's quarter and net income margin improved to 3.5% from 3.0% in 2008. The margin for earnings before interest, taxes, depreciation and amortization, or EBITDA margin, increased 240 basis points to 8.3% for the quarter just ended, up from 5.9% in the first quarter of 2008.
As a result of the improved financial performance,
Revenue for the second quarter of 2009 is expected to be approximately
Our guidance assumes a continued difficult economy and does not include any additional impact of our legacy litigation or any mark-to-market valuation adjustments on auction rate securities, either positive or negative.
Management will hold a conference call to discuss results of operations
for the quarter ended
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,
2009 2008
Revenue $342,119 $261,992
Costs of revenue, excluding depreciation
and amortization 290,926 226,844
Depreciation and amortization 10,643 5,028
General and administrative expenses,
including non-cash stock compensation
expense of $822 in 2009 and $844 in 2008 23,255 19,806
Interest expense, net of interest income 5,762 2,496
Other income, net 497 151
Income from continuing operations before
income taxes 12,030 7,969
Income taxes (101) (33)
Income from continuing operations 11,929 7,936
Loss from discontinued operations, net of tax - (155)
Net income $11,929 $7,781
Basic net income per share:
Continuing operations $0.16 $0.12
Discontinued operations - -
Total basic net income per share $0.16 $0.12
Basic weighted average common shares
outstanding 75,546 67,187
Diluted net income per share:
Continuing operations $0.16 $0.12
Discontinued operations - -
Total diluted net income per share $0.16 $0.12
76,565 67,585
Diluted weighted average common shares
outstanding
Condensed Unaudited Consolidated Balance Sheets
(In thousands)
March 31, December 31,
2009 2008
Assets
Total current assets $378,107 $439,365
Property and equipment, net 155,185 158,013
Goodwill and other intangibles, net 418,107 420,604
Deferred taxes, net 16,793 25,165
Securities available for sale 21,009 20,580
Other assets 27,451 27,170
Total assets $1,016,652 $1,090,897
Liabilities and Shareholders' Equity
Current liabilities $273,017 $334,048
Other liabilities 25,199 26,305
Long-term debt 261,202 287,454
Total shareholders' equity 457,234 443,090
Total liabilities and shareholders' equity $1,016,652 $1,090,897
Condensed Unaudited Consolidated Statements of Cash Flows
(In thousands)
For the Three Months
Ended March 31,
2009 2008
Cash flows from operating activities:
Net cash provided by operating activities $49,300 $7,334
Net cash (used in) provided by investing
activities (13,101) 835
Net cash (used in) financing activities (25,946) (934)
Net increase in cash and cash equivalents 10,253 7,235
Net effect of currency translation on cash 107 -
Cash and cash equivalents - beginning of
period 47,263 74,288
Cash and cash equivalents - end of period $57,623 $81,523
Reconciliation of Non-GAAP Disclosures-Unaudited
(In millions, except for percentages and per share data)
Three Months Ended Three Months Ended
------------------ ------------------
March 31, 2009 March 31, 2008
-------------- --------------
Total EBITDA Total EBITDA
EBITDA Reconciliation Margin Margin
GAAP Net income $11.9 3.5% $7.8 3.0%
Loss from discontinued
operations - 0.0% 0.2 0.0%
Interest, net 5.8 1.7% 2.5 1.0%
Taxes 0.1 0.0% 0.0 0.0%
Depreciation and
amortization 10.6 3.1% 5.0 1.9%
Earnings before interest,
taxes, depreciation and
amortization (EBITDA) $28.4 8.3% $15.5 5.9%
Years Ended
EBITDA Reconciliation 2009 2008
GAAP Net Income $85-93 $66
Loss from discontinued operations, net of taxes - (1)
Income from continuing operations 85-93 $67
Interest, net 26-28 14
Income tax provision 23-29 1
Amortization 9-10 4
Depreciation 37-40 24
Earnings from continuing operations before
interest, taxes, amortization and
depreciation (EBITDA) $180-200 $110
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, which may, among other things, cause our
revenues, margins and earnings per share to differ from that projected. Such
risks, uncertainties and assumptions may include further or continued economic
downturns, reduced capital expenditures, reduced financing availability,
customer consolidation and technological and regulatory changes in the
industries we serve; market conditions, technical and regulatory changes that
affect us or our customers' industries; our ability to retain qualified
personnel and key management from acquired businesses and integrate
acquisitions with
SOURCEMasTec, Inc. -0-04/29/2009 /CONTACT:J. Marc Lewis , Vice President-Investor Relations,MasTec, Inc. , +1-305-406-1815, or +1-305-406-1886 fax, marc.lewis@mastec.com/ /Web Site: http://www.mastec.com / (MTZ) CO:MasTec, Inc. ; MTZ ST:Florida IN: TLS TEQ CPR SU: ERN ERP CCA PR -- FL07955 -- 585504/29/2009 16:54 EDT http://www.prnewswire.com