SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark One)
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
__X___ EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the fiscal year ended December 31, 2000
OR
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
______ SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED
Commission File Number 0-3797
The MasTec, Inc. 401(k) Retirement Savings Plan
(Full title of the plan)
MasTec, Inc.
3155 NW 77th Avenue
Miami, FL 33122
(Name of issuer of the securities held
pursuant to the plan and the address of
its principal executive office)
The MasTec, Inc. 401(k) Retirement Savings Plan
Financial Statements and
Supplemental Schedule
December 31, 2000 and 1999
Table of Contents
Pages
Report of Independent Certified Public Accountants 2
Financial Statements:
Statements of Net Assets Available for Benefits
as of December 31, 2000 and 1999 3
Statements of Changes in Net Assets Available for Benefits
for the years ended December 31, 2000 and 1999 4
Notes to Financial Statements 5-9
Supplemental Schedule:
Schedule of Assets Held for Investment
Purposes as of December 31, 2000 10
Exhibits:
Consent of Independent Certified Public Accountants 12
Report of Independent Certified Public Accountants
To the Participants and Administrator of
The MasTec, Inc. 401(k) Retirement Savings Plan:
In our opinion, the accompanying statements of net assets
available for benefits and the related statements of changes in
net assets available for benefits present fairly, in all
material respects, the net assets available for benefits of The
MasTec, Inc. 401(k) Retirement Savings Plan (the "Plan") at
December 31, 2000 and 1999, and the changes in net assets
available for benefits for the years then ended in conformity
with accounting principles generally accepted in the United
States of America. These financial statements are the
responsibility of the Plan's management; our responsibility is
to express an opinion on these financial statements based on
our audits. We conducted our audits of these statements in
accordance with auditing standards generally accepted in the
United States of America, which require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant
estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
Our audits were conducted for the purpose of forming an opinion
on the basic financial statements taken as a whole. The
supplemental schedule of Assets Held for Investment Purposes as
of December 31, 2000 is presented for the purpose of additional
analysis and is not a required part of the basic financial
statements but is supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of
1974. The supplemental schedule is the responsibility of the
Plan's management. The supplemental schedule has been
subjected to the auditing procedures applied in the audits of
the basic financial statements and, in our opinion, are fairly
stated in all material respects in relation to the basic
financial statements taken as a whole.
/s/ PricewaterhouseCoopers LLP
Miami, Florida
May 25, 2001
The MasTec, Inc. 401(k) Retirement Savings Plan
Statements of Net Assets Available for Benefits
December 31, 2000 and 1999
2000 1999
Assets:
Investment at fair value $25,898,370 $26,320,770
Participant notes receivable 1,273,789 808,426
----------- -----------
Total investments 27,172,159 27,129,196
----------- -----------
Receivables:
Participants' contributions 582,575 404,690
Employer's contributions 214,638 73,705
----------- -----------
Total receivables 797,213 478,395
----------- -----------
Net assets available for benefits $27,969,372 $27,607,591
=========== ===========
The accompanying notes are an integral part of these
financial statements.
The MasTec, Inc. 401(k) Retirement Savings Plan
Statements of Changes in Net Assets Available for Benefits
For the Years Ended December 31, 2000 and 1999
2000 1999
------------- -------------
Additions to net assets attributed to:
Investment income:
Net (depreciation) appreciation in
fair value of investments $ (4,163,193) $ 5,425,807
Interest 15,457 10,228
------------- -------------
(4,147,736) 5,436,035
Contributions:
Participants' 6,602,875 6,502,839
Employer's 1,921,997 669,095
------------- -------------
Total additions 4,377,136 12,607,969
------------- -------------
Deductions from net assets attributed to:
Participant's withdrawals 4,015,355 3,953,048
------------- -------------
Total deductions 4,015,355 3,953,048
------------- -------------
Net increase 361,781 8,654,921
Net assets available for benefits:
Beginning of year 27,607,591 18,952,670
------------- -------------
End of year $ 27,969,372 $ 27,607,591
============= =============
The accompanying notes are an integral part of these
financial statements.
The MasTec, Inc. 401(k) Retirement Savings Plan
Notes to Financial Statements
- ---------------------------------------------------------------------
1. Description of Plan
The following description of The MasTec, Inc. (the "Company"
or "MasTec") 401(k) Retirement Savings Plan (the "Plan")
provides only general information. The Plan agreement
contains a more complete description of the Plan's
provisions.
General
The Plan is a defined contribution plan covering all
employees of the Company who are age twenty-one or older and
have six months of service. Eligible participants may enter
the Plan on January 1 or July 1. It is subject to the
provisions of the Employee Retirement Income Security Act of
1974 ("ERISA") and is exempt from federal and state income
taxes.
The Plan is administered by the Employee Benefits Committee
(Plan Administrator) of MasTec, Inc. Great-West Life &
Annuity Insurance Company is the Recordkeeper of the Plan for
all funds except for the MasTec Common Stock Fund which the
Trustee is Wells Fargo Bank Minnesota, N.A. Plan assets are
held by the Recordkeeper.
Contributions
Participants may contribute from 1% to 15% of their pre-tax
annual compensation, subject to certain dollar amount limits,
as defined in the plan agreement. The maximum contribution
allowed was $10,500 and $10,000 during 2000 and 1999,
respectively.
Company contributions are 50% of each dollar up to 4% of the
participant's gross salary. The Company match is exclusively
in MasTec Common Stock. Whether and to what extent the
Company will match employee contributions beyond 2000 will be
at MasTec's discretion.
During 1999, the defined contribution plans of certain
companies acquired by MasTec, Inc. were converted to the
Plan, and the related employees became participants of the
Plan. The net assets of these plans were converted at a fair
value of approximately $1,740,000 and invested in the Plan in
accordance with the related employees' investment option
elections. Such amounts are included as participants'
contributions for 1999. In 2000, no plans of acquired
companies were converted to the Plan.
Participant Accounts
Each participant's account is credited with the participant's
contribution, the Company's contribution, rollovers into the
Plan and an allocation of the participant accounts' earnings.
Each participant's account is reduced by any withdrawals or
distributions and an allocation of (a) his share of
investment losses and depreciation in value of investments
and (b) any administrative fees paid by the Plan. The
benefit to which a participant is entitled is the
participant's vested account balance.
Transfers and Rollovers
Participants may rollover balances held in other qualified
retirement plans at the discretion of the Plan Administrator.
Withdrawals
Certain withdrawals from participant accounts are only
allowed for financial hardship (in accordance with IRS
regulations).
Participant Notes Receivable
Participants may borrow a maximum of the lesser of (1)
$50,000 or (2) fifty percent (50%) of their individual vested
account balance. Loan terms range from 1-5 years or up to 20
years for the purchase of a primary residence. The loans
bear interest at the published prime rate in the Wall Street
Journal plus 1%.
Payment of Benefits
On termination of service, due to death, disability, or
retirement, a participant receives payment of the vested
accrued benefit in a single lump sum or the payment can be
deferred under certain circumstances to normal retirement
age. For termination of service due to other reasons, a
participant is entitled to receive only the vested percentage
of his account balance.
Vesting
Participants are immediately vested in their contributions
and rollovers and the earnings thereon. Participants are
vested in Company contributions as follows:
Years of Service Percentage
- ---------------- ----------
1 33%
2 66%
3 or more 100%
Participants forfeit the portion of their account balance to
the extent not vested.
2. Summary of Significant Accounting Policies
The significant accounting policies followed by the Plan are
as follows:
Basis of Accounting
The financial statements of the Plan are prepared in
conformity with generally accepted accounting principles.
Use of Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the
financial statements and the reported amounts of additions
and deductions during the reporting period. Actual results
could differ from those estimates.
Risk and Uncertainties
The plan provides for various investment options in any
combination of stocks, bonds, fixed income securities, mutual
funds, and other investment securities. Investment
securities are exposed to various risks, such as interest
rate, market and credit. Due to the level of risk associated
with certain investment securities and the level of
uncertainty related to changes in the value of investment
securities, it is at least reasonably possible that changes
in risks in the near term would materially affect
participants' account balances and the amounts reported in
the statement of net assets available for plan benefits and
the statement of changes in net assets available for plan
benefits.
Valuation of Investments and Income Recognition
The Plan's investments are valued by the Recordkeeper (Note
1) and are stated at fair value using quoted market prices.
Purchase and sales transactions are recorded on a trade date
basis. Any gain or loss resulting from the sale of fund
units is determined as the difference between the sales
proceeds and the average cost of the units sold. Investment
income is recorded on the accrual basis.
Investment Income
The Plan presents in the statement of changes in net assets
available for benefits the net appreciation (depreciation) in
the fair value of its investments which consists of the
realized gains or losses and the unrealized appreciation
(depreciation) on those investments.
Participant Withdrawals
Withdrawals made by participants are recorded when paid.
Administrative Costs
All administrative expenses of the Plan, including, without
limitation, the allocable portion of compensation of plan
administrative staff and fees of employee benefits
consultants, legal counsel, and auditors' fees are chargeable
to the Plan. The Company may, at its sole discretion, pay
any such expenses, in whole or in part. The Company assumed
responsibility for administrative expenses for the years
ended December 31, 2000 and 1999.
3. Investments
The following investments represented five percent or more of
the Plan's net assets at December 31, 2000:
Maxim Money Market Portfolio $3,895,208
American Century Ultra Fund 1,845,961
Profile Series I - Aggressive Mix Portfolio 2,417,756
Profile Series II - Moderately Aggressive
Mix Portfolio 1,671,764
MasTec Common Stock Fund 4,443,252
The following investments represented five percent or more of
the Plan's net assets at December 31, 1999:
Maxim Money Market Portfolio $4,723,125
American Century Ultra Fund 2,225,358
Fidelity Advisor Growth Opportunities Fund 1,691,331
Profile Series I - Aggressive Mix Portfolio 2,318,948
Profile Series II - Moderately Aggressive
Mix Portfolio 1,417,497
MasTec Common Stock Fund 4,702,122
4. Plan Termination
Although it has not expressed any intent to do so, the
Company has the right under the Plan to discontinue its
contributions at any time and to terminate the Plan subject
to the provisions of ERISA. In the event of Plan
termination, participants will become 100% vested in their
accounts.
5. Tax Status
The Internal Revenue Service has determined and informed the
Company by a letter dated June 17, 1997, that the Plan is
designed in accordance with applicable sections of the IRC.
The Plan has been amended since receiving the determination
letter. However, the Plan Administrator and the Plan's legal
counsel believe that the Plan is designed and is currently
being operated in compliance with the applicable requirements
of the IRC.
The MasTec, Inc. 401(k) Retirement Savings Plan
Schedule of Assets Held for Investment Purposes
December 31, 2000
Identity of Party Description of Investment Fair Value
- ------------------------------ ------------------------- ----------
Lord Abbett Bond - Debenture A Bond Fund $ 12,593
Invesco Select Income Bond Fund 11,977
Maximum Bond Index Bond Fund 60,736
Maximum Loomis Sayles Corporate
Bond Portfolio Bond Fund 136,330
Maximum U.S. Government Mortgage
Securities Portfolio Bond Fund 64,810
Maximum Global Bond Portfolio Bond Fund 54,729
Maximum Short-Term Maturity Bond
Portfolio Bond Fund 32,218
Maximum Money Market Portfolio Short-Term Fund 3,895,208
Maximum Index European Portfolio International Fund 58,221
Fidelity Advisor Overseas Fund International Fund 125,753
Maxim Invesco ADR International Fund 39,434
Maxim Index Pacific Portfolio International Fund 63,364
Janus Worldwide International Fund 519,051
Putnam Global Growth Fund International Fund 441,568
AIM Charter Fund Large-Cap Fund 443,400
Fidelity Advisor Growth
Opportunities Fund Large-Cap Fund 1,181,931
Orchard Index 500 Fund Large-Cap Fund 532,698
Maximum Founder's Growth & Income Large-Cap Fund 150,047
Invesco Blue Chip Growth Inv. Large-Cap Fund 92,503
Janus Twenty Large-Cap Fund 533,522
American Century Ultra Fund Large-Cap Fund 1,845,961
AIM Weingarten Fund Large-Cap Fund 649,094
Maximum Growth Index Portfolio Large-Cap Fund 422,844
American Century Income & Growth Large-Cap Fund 18,365
Fidelity Advisor Equity Income Large-Cap Fund 545,018
Putnam Fund for Growth & Income Large-Cap Fund 630,000
Maxim Value Index Large-Cap Fund 246,363
AIM Constellation Fund Mid-Cap Fund 1,001,226
MFS Capital Opportunities Mid-Cap Fund 145,199
Maxim T. Rowe Price Mid-Cap Growth Mid-Cap Fund 230,478
American Century Equity Income Fund Mid-Cap Fund 47,040
Portfolio Series I-
Aggressive Mix Portfolio Profile Series 2,417,756
Portfolio Series II- Moderately
Aggressive Mix Portfolio Profile Series 1,671,764
Portfolio Series III-Moderate
Mix Portfolio Profile Series 1,371,927
Portfolio Series IV-Moderately
Conservative Mix Portfolio Profile Series 263,361
Portfolio Series V-Conservative
Mix Portfolio Profile Series 152,769
Dreyfus Emerging Leaders Small-Cap Fund 78,768
Orchard Index 600 Fund Small-Cap Fund 130,690
Lord Abbett Developing Growth Fund Small-Cap Fund 139,192
Maxim Ariel Small-Cap
Value Portfolio Small-Cap Fund 20,092
Maxim Loomis Sayles Small-Cap
Value Portfolio Small-Cap Fund 150,554
Invesco Financial Services Specialty Fund 50,290
Invesco Health Sciences Specialty Fund 171,092
American Century Real Estate Specialty Fund 11,494
Dreyfus Premier Technology Growth Specialty Fund 296,586
MFS Utilities Specialty Fund 72,412
Great-West Life & Annuity Guaranteed Certified
Insurance Company Fund 197,811
Mastec Common Stock Fund Common Stock Fund 4,443,248
First Colony Life Insurance Company Life Insurance Fund 26,883
Participant loans, fully amortized Loans to participants
8%-11% 1,273,789
-----------
$27,172,159
===========
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Trustee (or other persons who administer the employee benefit
plan) have duly caused this annual report to be signed on its behalf
by the undersigned hereunto duly authorized.
THE MASTEC, INC.
401(k) RETIREMENT SAVINGS PLAN
Date: June 28, 2001 /s/ CARMEN M. SABATER
---------------------
Carmen M. Sabater
Executive Vice President
Chief Financial Officer
(Trustee)
Date: June 28, 2001 /s/ JOSE SARIEGO
---------------------
Jose Sariego
Senior Vice President -
General Counsel
(Trustee)
EXHIBITS
Exhibit 23:
Consent of Independent Certified Public Accountants
We hereby consent to the incorporation by reference in the
Registration Statement on Form S-8 (File No. 033-55327) of
MasTec, Inc. of our report dated May 25, 2001 relating to
the financial statements of The MasTec, Inc. 401(k) Retirement
Savings Plan, which appears in this Form 11-K.
/s/ PricewaterhouseCoopers LLP
Miami, Florida
June 28, 2001