CORAL GABLES, Fla., Feb. 27, 2014 /PRNewswire/ -- MasTec, Inc. (NYSE: MTZ) today announced record 2013 full year revenue, net income, diluted earnings per share and EBITDA. This is the fourth consecutive year of record financial results.
Revenue for the fourth quarter of 2013 was $1.16 billion compared to $932 million for the fourth quarter of 2012, an increase of 24%, with strong revenue growth across most segments. Oil and Gas segment revenue increased 103%, Electrical Transmission increased 27% and Communications increased 8%, driven by a 40% increase in wireless projects. Net income from continuing operations was $43 million or $0.50 per diluted share in the fourth quarter 2013, compared to $38 million or $0.46 per diluted share in the fourth quarter of 2012.
Fourth quarter 2013 adjusted net income from continuing operations, a non-GAAP measure, increased to $45 million compared to $38 million in 2012, an increase of 17%. Fourth quarter 2013 continuing operations adjusted diluted earnings per share, a non-GAAP measure, was $0.53 compared to $0.47 in 2012, an increase of 13%. Fourth quarter 2013 continuing operations adjusted EBITDA, a non-GAAP measure, was $123 million compared to $100 million in 2012, an increase of 23%.
Adjusted net income from continuing operations, continuing operations adjusted diluted earnings per share and continuing operations adjusted EBITDA, non-GAAP measures, exclude the impact of discontinued operations, charges related to the legacy Sintel litigation, which took place in Spain and dated back to 2001, loss on extinguishment of debt from the 2013 refinancing of our senior notes due 2017, as well as non-cash stock based compensation expense. Reconciliations of these and other non-GAAP measures to GAAP-reported measures are attached.
For the year ended December 31, 2013, revenue was $4.3 billion compared to $3.7 billion for 2012, an increase of 16%, with strong revenue growth across most segments. Oil and Gas segment revenue increased 70%, Electrical Transmission increased 37% and Communications increased 11%, driven by a 38% increase in wireless projects. Net income from continuing operations was $148 million or $1.74 per diluted share for the year ended 2013 compared to $117 million or $1.42 per diluted share for the year ended 2012.
For the year ended 2013, adjusted net income from continuing operations, a non-GAAP measure, was $161 million compared to $125 million for the year ended 2012, an increase of 28%. 2013 continuing operations adjusted diluted earnings per share, a non-GAAP measure, was $1.90 compared to $1.53 per diluted share in 2012, an increase of 24%. 2013 continuing operations adjusted EBITDA, a non-GAAP measure, was $449 million compared to $336 million in 2012, an increase of 34%. 2013 continuing operations EBITDA margin, a non-GAAP measure, was 10.4% compared to 9.0% in 2012, a 140 basis point increase. 18-month backlog as of December 31, 2013, increased 23% to $4.1 billion compared to $3.4 billion as of December 31, 2012.
For the year ended December 31, 2013, net cash provided by operating activities was $200 million compared to $173 million for the prior year, an increase of $16%. During 2013, MasTec increased Liquidity to $585 million. The Company defines Liquidity as unrestricted cash plus availability under the Company's credit facility.
Jose Mas, MasTec's Chief Executive Officer, commented, "2013 was another record-breaking year for MasTec in terms of revenue, earnings, EBITDA and with strong margin expansion and cash flow. We continue to see great momentum in the markets we serve and are very excited about the growth opportunities for revenue and margin growth that exist across our wireless, oil and gas pipeline, electrical transmission, fiber deployment and renewable power markets. We expect another record year in 2014 and are bullish about our growth prospects in 2015 and beyond."
George Pita, MasTec's Executive Vice President and Chief Financial Officer noted, "We are pleased with the 16% increase in 2013 cash flow from operations and expect continued improvement in cash flow during 2014. Our capital structure and balance sheet are in excellent financial position to support internal growth and other future growth opportunities in the markets we serve."
Today, the Company is issuing both first quarter and full year 2014 guidance. The Company currently estimates 2014 revenue of approximately $4.65 to $4.7 billion. 2014 continuing operations adjusted EBITDA, a non-GAAP measure, is estimated at $520 to $525 million, with continuing operations adjusted diluted earnings per share at $2.27 to $2.30.
For the first quarter of 2014, the Company expects revenue of approximately $920 million. First quarter 2014 continuing operations adjusted EBITDA, a non-GAAP measure, is estimated at $74 million with continuing operations adjusted diluted earnings per share, a non-GAAP measure, estimated at $0.20. The first quarter is normally our seasonally weakest period and the estimated financial results also reflect the impact of severe weather disruptions early this year. Additionally, 2014 guidance reflects the negative impact of foreign exchange rate changes related to our Canadian operations when compared to 2013.
Estimated 2014 non-GAAP measures are calculated on a basis consistent with historical non-GAAP measures. Reconciliations of these and other non-GAAP measures to GAAP-reported measures are attached.
Management will hold a conference call to discuss these results on Friday, February 28, 2014 at 9:00 a.m. Eastern time. The call-in number for the conference call is (913) 312-1483 and the replay number is (719) 457-0820, with a pass code of 1715065. 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, 2013 and 2012:
Condensed Unaudited Consolidated Statements of Operations | |||||||||
(In thousands, except per share amounts) | |||||||||
For the December 31, | For the December 31, | ||||||||
2013 | 2012 | 2013 | 2012 | ||||||
Revenue | $ | 4,324,787 | $ | 3,726,789 | $ | 1,159,130 | $ | 932,358 | |
Costs of revenue, excluding depreciation & amortization |
3,682,367 |
3,239,195 |
987,081 |
794,139 | |||||
Depreciation and amortization | 140,926 | 91,958 | 37,815 | 26,834 | |||||
General and administrative expenses | 215,402 | 157,524 | 55,641 | 39,332 | |||||
Interest expense, net | 46,442 | 37,376 | 11,893 | 9,492 | |||||
Loss on extinguishment of debt | 5,624 | - | - | - | |||||
Other (income) expense, net | (6,188) | 8,017 | (2,906) | 27 | |||||
Income from continuing operations before income taxes |
$ |
240,214 |
$ |
192,719 |
$ |
69,606 |
$ |
62,533 | |
Provision for income taxes | (92,542) | (76,080) | (26,720) | (24,851) | |||||
Net income from continuing operations | $ | 147,672 | $ | 116,639 | $ | 42,886 | $ | 37,683 | |
Discontinued operations: | |||||||||
Net loss from discontinued operations, including loss on disposal and impairment charges | $ | (6,546) | $ | (9,223) | $ | (1,290) | $ | (1,343) | |
Net income | $ | 141,216 | $ | 107,416 | $ | 41,596 | $ | 36,340 | |
Net income (loss) attributable to non-controlling interests |
266 |
(10) |
95 |
(1) | |||||
Net income attributable to MasTec, Inc. | $ | 140,950 | $ | 107,426 | $ | 41,500 | $ | 36,340 | |
Earnings per share: | |||||||||
Basic earnings (loss) per share: | |||||||||
Continuing operations | $ | 1.92 | $ | 1.49 | $ | 0.55 | $ | 0.50 | |
Discontinued operations | (0.09) | (0.12) | (0.02) | (0.02) | |||||
Total basic earnings per share: | $ | 1.83 | $ | 1.37 | $ | 0.54 | $ | 0.48 | |
Basic weighted average common shares outstanding | 76,923 | 78,275 | 77,240 | 76,087 | |||||
Diluted earnings (loss) per share: | |||||||||
Continuing operations | $ | 1.74 | $ | 1.42 | $ | 0.50 | $ | 0.46 | |
Discontinued operations | (0.08) | (0.11) | (0.02) | (0.02) | |||||
Total diluted earnings per share | $ | 1.66 | $ | 1.31 | $ | 0.49 | $ | 0.45 | |
Diluted weighted average common shares outstanding | 84,901 | 82,082 | 85,395 | 81,835 | |||||
Condensed Unaudited Consolidated Balance Sheets | ||||
(In thousands) | ||||
December 31, | ||||
2013 | 2012 | |||
Assets | ||||
Current assets, including discontinued operations | $ | 1,305,983 | $ | 1,049,641 |
Property and equipment, net | 488,132 | 348,858 | ||
Goodwill and other intangibles, net | 1,064,970 | 963,649 | ||
Long-term assets, including discontinued operations | 60,553 | 54,160 | ||
Total assets | $ | 2,919,638 | $ | 2,416,308 |
Liabilities and Equity | ||||
Current liabilities, including discontinued operations | $ | 825,546 | $ | 714,135 |
Acquisition-related contingent consideration, net of current portion | 112,370 | 135,712 | ||
Long-term debt | 765,425 | 546,323 | ||
Long-term deferred tax liabilities, net | 154,883 | 119,388 | ||
Other liabilities | 40,356 | 38,875 | ||
Equity | 1,021,058 | 861,875 | ||
Total liabilities and equity | $ | 2,919,638 | $ | 2,416,308 |
Condensed Unaudited Consolidated Statements of Cash Flows | ||||
(In thousands) | ||||
December 31, | ||||
2013 | 2012 | |||
Net cash provided by operating activities | $ | 200,402 | $ | 172,508 |
Net cash used in investing activities | (263,211) | (94,316) | ||
Net cash provided by (used in) financing activities | 58,993 | (71,796) | ||
Net (decrease) in cash and cash equivalents | (3,816) | 6,396 | ||
Net effect of currency translation on cash | (24) | 91 | ||
Cash and cash equivalents-beginning of period | 26,767 | 20,280 | ||
Cash and cash equivalents-end of period | 22,927 | 26,767 | ||
Cash and cash equivalents of discontinued operations | - | 385 | ||
Cash and cash equivalents of continuing operations | $ | 22,927 | $ | 26,382 |
Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures - Unaudited | ||||||||
(In millions, except for percentages and per share amounts) | ||||||||
For the | For the | |||||||
Segment Information | 2013 | 2012 | 2013 | 2012 | ||||
Revenue by Reportable Segment | ||||||||
Communications | $ | 498.1 | $ | 461.6 | $ | 1,962.6 | $ | 1,772.7 |
Oil and Gas | 494.0 | 243.6 | 1,628.8 | 959.0 | ||||
Electrical Transmission | 107.0 | 84.0 | 428.8 | 312.2 | ||||
Power Generation and Industrial | 57.1 | 140.6 | 294.3 | 668.1 | ||||
Other | 3.1 | 2.6 | 12.3 | 16.7 | ||||
Corporate | - | - | - | - | ||||
Eliminations | (0.1) | (0.1) | (2.0) | (1.9) | ||||
Consolidated revenue | $ | 1,159.1 | $ | 932.4 | $ | 4,324.8 | $ | 3,726.8 |
EBITDA by Reportable Segment – Continuing Operations | ||||||||
Communications | $ | 66.1 | $ | 52.6 | $ | 247.7 | $ | 192.0 |
Oil and Gas | 54.1 | 42.1 | 215.9 | 99.4 | ||||
Electrical Transmission | 14.2 | 7.6 | 41.2 | 38.7 | ||||
Power Generation and Industrial | (1.7) | 3.8 | (16.3) | 32.0 | ||||
Other | (0.1) | 0.2 | 0.5 | 2.0 | ||||
Corporate | (13.4) | (7.5) | (61.4) | (42.0) | ||||
Eliminations | - | - | - | - | ||||
EBITDA – continuing operations | $ | 119.3 | $ | 98.9 | $ | 427.6 | $ | 322.1 |
Non-cash stock-based compensation expense | 3.3 | 1.1 | 12.9 | 4.4 | ||||
Loss on debt extinguishment | - | - | 5.6 | - | ||||
Sintel legal settlement | - | - | 2.8 | 9.6 | ||||
Adjusted EBITDA – continuing operations | $ | 122.6 | $ | 99.9 | $ | 448.9 | $ | 336.1 |
EBITDA Margin by Reportable Segment – Continuing Operations | ||||||||
Communications | 13.3% | 11.4% | 12.6% | 10.8% | ||||
Oil and Gas | 11.0% | 17.3% | 13.3% | 10.4% | ||||
Electrical Transmission | 13.3% | 9.1% | 9.6% | 12.4% | ||||
Power Generation and Industrial | -3.0% | 2.7% | -5.5% | 4.8% | ||||
Other | -1.8% | 8.1% | 3.9% | 11.7% | ||||
Corporate | - | - | - | - | ||||
Eliminations | - | - | - | - | ||||
EBITDA margin – continuing operations | 10.3% | 10.6% | 9.9% | 8.6% | ||||
Non-cash stock-based compensation expense | 0.3% | 0.1% | 0.3% | 0.1% | ||||
Loss on debt extinguishment | - | - | 0.1% | - | ||||
Sintel legal settlement | - | - | 0.1% | 0.3% | ||||
Adjusted EBITDA – continuing operations | 10.6% | 10.7% | 10.4% | 9.0% | ||||
Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures - Unaudited | ||||||||||
(In millions, except for percentages and per share amounts) | ||||||||||
Three Months Ended | Year Ended | |||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | ||||||
EBITDA and Adjusted EBITDA Reconciliation – Continuing Operations | ||||||||||
Net income from continuing operations | $ | 19.3 | $ | 35.5 | $ | 49.9 | $ | 42.9 | $ | 147.7 |
Interest expense, net | 10.0 | 11.8 | 12.7 | 11.9 | 46.4 | |||||
Provision for income taxes | 12.3 | 21.8 | 31.7 | 26.7 | 92.5 | |||||
Depreciation and amortization | 31.8 | 33.6 | 37.8 | 37.8 | 140.9 | |||||
EBITDA - continuing operations | $ | 73.5 | $ | 102.7 | $ | 132.1 | $ | 119.3 | $ | 427.6 |
Non-cash stock-based compensation expense | 2.4 | 4.3 | 3.0 | 3.3 | 12.9 | |||||
Loss on debt extinguishment | 5.6 | - | - | - | 5.6 | |||||
Sintel legal settlement | - | 2.8 | - | - | 2.8 | |||||
Adjusted EBITDA - continuing operations | $ | 81.4 | $ | 109.8 | $ | 135.1 | $ | 122.6 | $ | 448.9 |
EBITDA and Adjusted EBITDA Margin Reconciliation – Continuing Operations | ||||||||||
Net income from continuing operations | 2.1% | 3.6% | 3.9% | 3.7% | 3.4% | |||||
Interest expense, net | 1.1% | 1.2% | 1.0% | 1.0% | 1.1% | |||||
Provision for income taxes | 1.3% | 2.3% | 2.5% | 2.3% | 2.1% | |||||
Depreciation and amortization | 3.5% | 3.4% | 3.0% | 3.3% | 3.3% | |||||
EBITDA margin- continuing operations | 8.0% | 10.5% | 10.4% | 10.3% | 9.9% | |||||
Non-cash stock-based compensation expense | 0.3% | 0.4% | 0.2% | 0.3% | 0.3% | |||||
Loss on debt extinguishment | 0.6% | - | - | - | 0.1% | |||||
Sintel legal settlement | - | 0.3% | - | - | 0.1% | |||||
Adjusted EBITDA margin - continuing operations |
8.9% |
11.2% |
10.6% |
10.6% |
10.4% | |||||
Three Months Ended | Year Ended | |||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | ||||||
EBITDA and Adjusted EBITDA Reconciliation– Continuing Operations | ||||||||||
Net income from continuing operations | $ | 11.7 | $ | 31.2 | $ | 36.1 | $ | 37.7 | $ | 116.6 |
Interest expense, net | 9.0 | 9.5 | 9.4 | 9.5 | 37.4 | |||||
Provision for income taxes | 7.8 | 19.9 | 23.5 | 24.9 | 76.1 | |||||
Depreciation and amortization | 20.7 | 21.8 | 22.6 | 26.8 | 92.0 | |||||
EBITDA - continuing operations | $ | 49.2 | $ | 82.4 | $ | 91.7 | $ | 98.9 | $ | 322.1 |
Non-cash stock-based compensation expense | 1.0 | 1.2 | 1.2 | 1.1 | 4.4 | |||||
Sintel legal settlement | - | - | 9.6 | - | 9.6 | |||||
Adjusted EBITDA - continuing operations | $ | 50.2 | $ | 83.5 | $ | 102.5 | $ | 99.9 | $ | 336.1 |
EBITDA and Adjusted EBITDA Margin Reconciliation – Continuing Operations | ||||||||||
Net income from continuing operations | 1.6% | 3.2% | 3.4% | 4.0% | 3.1% | |||||
Interest expense, net | 1.2% | 1.0% | 0.9% | 1.0% | 1.0% | |||||
Provision for income taxes | 1.1% | 2.0% | 2.2% | 2.7% | 2.0% | |||||
Depreciation and amortization | 2.8% | 2.2% | 2.1% | 2.9% | 2.5% | |||||
EBITDA margin- continuing operations | 6.7% | 8.3% | 8.6% | 10.6% | 8.6% | |||||
Non-cash stock-based compensation expense | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | |||||
Sintel legal settlement | - | - | 0.9% | - | 0.3% | |||||
Adjusted EBITDA margin - continuing operations | 6.8% | 8.4% | 9.6% | 10.7% | 9.0% | |||||
Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures – Unaudited | ||||||||||||||||||||||||
(In millions, except for percentages and per share amounts) | ||||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | ||||||||||||||||||||
Adjusted Net Income Reconciliation | ||||||||||||||||||||||||
Net income from continuing operations | $ | 19.3 | $ | 35.5 | $ | 49.9 | $ | 42.9 | $ | 147.7 | ||||||||||||||
Non-cash stock-based compensation expense, net of tax | 1.4 | 2.6 | 1.8 | 2.0 | 8.0 | |||||||||||||||||||
Loss on debt extinguishment, net of tax | 3.4 | - | - | - | 3.5 | |||||||||||||||||||
Sintel legal settlement, net of tax | - | 1.7 | - | - | 1.7 | |||||||||||||||||||
Adjusted net income from continuing operations | $ | 24.2 | $ | 39.9 | $ | 51.8 | $ | 44.9 | $ | 160.8 | ||||||||||||||
Loss from discontinued operations, net of tax | (0.9) | (0.5) | (3.7) | (1.3) | (6.5) | |||||||||||||||||||
Adjusted net income | $ | 23.2 | $ | 39.4 | $ | 48.0 | $ | 43.6 | $ | 154.3 | ||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | ||||||||||||||||||||
Adjusted Diluted EPS Reconciliation | ||||||||||||||||||||||||
Diluted earnings per share – continuing operations |
$ |
0.23 |
$ |
0.42 |
$ |
0.59 |
$ |
0.50 |
$ |
1.74 | ||||||||||||||
Non-cash stock-based compensation expense, net of tax | 0.02 | 0.03 | 0.02 | 0.02 | 0.09 | |||||||||||||||||||
Loss on debt extinguishment, net of tax | 0.04 | - | - | - | 0.04 | |||||||||||||||||||
Sintel legal settlement, net of tax | - | 0.02 | - | - | 0.02 | |||||||||||||||||||
Adjusted diluted earnings per share - continuing operations | $ | 0.29 | $ | 0.47 | $ | 0.61 | $ | 0.53 | $ | 1.90 | ||||||||||||||
Diluted loss per share - discontinued operations | (0.01) | (0.01) |
(0.04) |
(0.02) |
(0.08) | |||||||||||||||||||
Adjusted diluted earnings per share | $ | 0.28 | $ | 0.47 | $ | 0.56 | $ | 0.51 | $ | 1.82 | ||||||||||||||
Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures – Unaudited | ||||||||||||||||||||||||
(In millions, except for percentages and per share amounts) | ||||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | ||||||||||||||||||||
Adjusted Net Income Reconciliation | ||||||||||||||||||||||||
Net income from continuing operations | $ | 11.7 | $ | 31.2 | $ | 36.1 | $ | 37.7 | $ | 116.6 | ||||||||||||||
Non-cash stock-based compensation expense, net of tax | 0.6 | 0.7 | 0.7 | 0.7 | 2.7 | |||||||||||||||||||
Sintel legal settlement, net of tax | - | - | 5.8 | - | 5.8 | |||||||||||||||||||
Adjusted net income from continuing operations | $ | 12.3 | $ | 31.9 | $ | 42.7 | $ | 38.3 | $ | 125.1 | ||||||||||||||
Income (loss) from discontinued operations, net of tax |
2.5 |
(1.1) |
(9.3) |
(1.3) |
(9.2) | |||||||||||||||||||
Adjusted net income | $ | 14.8 | $ | 30.8 | $ | 33.4 | $ | 37.0 | $ | 115.9 | ||||||||||||||
Three Months Ended | Year Ended | |||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | ||||||
Adjusted Diluted EPS Reconciliation | ||||||||||
Diluted earnings per share – continuing operations |
$ |
0.14 |
$ |
0.38 |
$ |
0.45 |
$ |
0.46 |
$ |
1.42 |
Non-cash stock-based compensation expense, net of tax |
0.01 |
0.01 |
0.01 |
0.01 |
0.03 | |||||
Sintel legal settlement, net of tax | - | - | 0.07 | - | 0.07 | |||||
Adjusted diluted earnings per share - continuing operations | $ | 0.15 | $ | 0.39 | $ | 0.54 | $ | 0.47 | $ | 1.53 |
Diluted earnings (loss) per share -discontinued operations |
0.03 | (0.01) |
(0.12) |
(0.02) |
(0.11) | |||||
Adjusted diluted earnings per share | $ | 0.18 | $ | 0.37 | $ | 0.42 | $ | 0.45 | $ | 1.42 |
Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures – Unaudited | ||||
(In millions, except for percentages and per share amounts) | ||||
Guidance for | Three Months Ended March 31, | |||
2014 Est. | 2013 | |||
EBITDA and Adjusted EBITDA Reconciliation – Continuing Operations | ||||
Net income from continuing operations | $ | 15 | $ | 19.3 |
Interest expense, net | 12 | 10.0 | ||
Provision for income taxes | 9 | 12.3 | ||
Depreciation and amortization | 35 | 31.8 | ||
EBITDA - continuing operations | $ | 70 | $ | 73.5 |
Non-cash stock-based compensation expense | 4 | 2.4 | ||
Loss on debt extinguishment | - | 5.6 | ||
Adjusted EBITDA - continuing operations | $ | 74 | $ | 81.4 |
EBITDA and Adjusted EBITDA Margin Reconciliation – Continuing Operations | ||||
Net income from continuing operations | 1.6% | 2.1% | ||
Interest expense, net | 1.3% | 1.1% | ||
Provision for income taxes | 1.0% | 1.3% | ||
Depreciation and amortization | 3.8% | 3.5% | ||
EBITDA margin- continuing operations | 7.6% | 8.0% | ||
Non-cash stock-based compensation expense | 0.4% | 0.3% | ||
Loss on debt extinguishment | - | 0.6% | ||
Adjusted EBITDA margin - continuing operations | 8.1% | 8.9% | ||
Guidance for Three Months Ended March 31, |
Three Months Ended March 31, | |||
2014 Est. | 2013 | |||
Adjusted Net Income from Continuing Operations and Adjusted Diluted EPS – Continuing Operations Reconciliations | ||||
Adjusted Net Income from Continuing Operations Reconciliation | ||||
Net income from continuing operations | $ | 15 | $ | 19.3 |
Non-cash stock-based compensation expense, net of tax | 2 | 1.4 | ||
Loss on debt extinguishment, net of tax | - | 3.4 | ||
Adjusted net income from continuing operations | $ | 17 | $ | 24.2 |
Guidance for Three Months Ended March 31, |
Three Months Ended March 31, | |||
2014 Est. | 2013 | |||
Adjusted Diluted EPS Reconciliation– Continuing Operations | ||||
Diluted earnings per share – continuing operations | $ | 0.17 | $ | 0.23 |
Non-cash stock-based compensation expense, net of tax | 0.03 | 0.02 | ||
Loss on debt extinguishment, net of tax | - | 0.04 | ||
Adjusted diluted earnings per share – continuing operations | $ | 0.20 | $ | 0.29 |
Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures – Unaudited | ||||||
(In millions, except for percentages and per share amounts) | ||||||
Guidance for December 31, |
Year Ended December 31, | Year Ended December 31, | ||||
2014 Est. | 2013 | 2012 | ||||
EBITDA and Adjusted EBITDA Reconciliation – Continuing Operations | ||||||
Net income from continuing operations | $ | 187-190 | $ | 147.7 | $ | 116.6 |
Interest expense, net | 46 | 46.4 | 37.4 | |||
Provision for income taxes | 114-116 | 92.5 | 76.1 | |||
Depreciation and amortization | 156 | 140.9 | 92.0 | |||
EBITDA - continuing operations | $ | 504-509 | $ | 427.6 | $ | 322.1 |
Non-cash stock-based compensation expense | 16 | 12.9 | 4.4 | |||
Loss on debt extinguishment | - | 5.6 | - | |||
Sintel legal settlement | - | 2.8 | 9.6 | |||
Adjusted EBITDA - continuing operations | $ | 520-525 | $ | 448.9 | $ | 336.1 |
EBITDA and Adjusted EBITDA Margin Reconciliation – Continuing Operations | ||||||
Net income from continuing operations | 4.0% | 3.4% | 3.1% | |||
Interest expense, net | 1.0% | 1.1% | 1.0% | |||
Provision for income taxes | 2.5% | 2.1% | 2.0% | |||
Depreciation and amortization | 3.3% | 3.3% | 2.5% | |||
EBITDA margin- continuing operations | 10.8% | 9.9% | 8.6% | |||
Non-cash stock-based compensation expense | 0.4% | 0.3% | 0.1% | |||
Loss on debt extinguishment | - | 0.1% | - | |||
Sintel legal settlement | - | 0.1% | 0.3% | |||
Adjusted EBITDA margin - continuing operations | 11.2% | 10.4% | 9.0% | |||
Guidance for December 31, |
Year Ended December 31, |
Year Ended December 31, | |||||||||||
2014 Est. | 2013 | 2012 | |||||||||||
Adjusted Net Income from Continuing Operations and Adjusted Diluted EPS – Continuing Operations Reconciliations | |||||||||||||
Adjusted Net Income from Continuing Operations Reconciliation | |||||||||||||
Net income from continuing operations | $ | 187-190 | $ | 147.7 | $ | 116.6 | |||||||
5.9 | |||||||||||||
Non-cash stock-based compensation expense, net of tax | 10 | 8.0 | 2.7 | ||||||||||
Loss on debt extinguishment, net of tax | - | 3.5 | - | ||||||||||
Sintel legal settlement, net of tax | - | 1.7 | 5.8 | ||||||||||
Adjusted net income from continuing operations | $ | 197-200 | $ | 160.8 | $ | 125.1 | |||||||
Guidance for December 31, | Year Ended December 31, |
Year Ended December 31, | ||||||||||
2014 Est. | 2013 | 2012 | ||||||||||
Adjusted Diluted EPS Reconciliation – Continuing Operations | ||||||||||||
Diluted earnings per share – continuing operations | $ | 2.15-2.18 | $ | 1.74 | $ | 1.42 | ||||||
5.9 | ||||||||||||
Non-cash stock-based compensation expense, net of tax | 0.12 | 0.09 | 0.03 | |||||||||
Loss on debt extinguishment, net of tax | - | 0.04 | - | |||||||||
Sintel legal settlement, net of tax | - | 0.02 | 0.07 | |||||||||
Adjusted diluted earnings per share - continuing operations | $ | 2.27-2.30 | $ | 1.90 | $ | 1.53 | ||||||
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 energy, utility and communications infrastructure, such as: electrical utility transmission and distribution; natural gas and petroleum pipeline infrastructure; wireless, wireline and satellite communications; power generation, including renewable energy infrastructure; 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. Jose Mas, CEO of MasTec, has led the Company since April of 2007.
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 the effect of economic downturns on demand for our services, reduced capital expenditures by our customers, reduced financing availability, customer consolidation and technological and regulatory changes in the industries we serve; market conditions, technological developments and regulatory changes that affect us or our customers' industries; the activity in the oil and gas and electricity industry and the expenditure levels impacted by the trends in electricity, oil, natural gas and other energy source prices; the highly competitive nature of our industry; 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; our ability to manage projects effectively and in accordance with our estimates; the timing and extent of fluctuations in geographic, weather, and operational factors affecting our customers, projects and the industries in which we operate; 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; customer disputes related to our performance of services; any material changes in estimates for legal costs or case settlements or adverse determinations on any claim, lawsuit or proceeding; disputes with, or failures of, our subcontractors to deliver agreed-upon supplies or services in a timely fashion; our ability to replace non-recurring projects with new projects; our dependence on a limited number of customers; the adequacy of our insurance, legal and other reserves and allowances for doubtful accounts; risks related to acquisitions and joint ventures; the outcome of our plans for future operations, growth and services, including business development efforts, backlog, acquisitions and dispositions; our ability to maintain a workforce based upon current and anticipated workloads; 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; any exposure resulting from system or information technology interruptions or data security breaches; the impact of U.S. federal, local or state tax legislation and other regulations 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 safety and environmental requirements; increases in fuel, maintenance, materials, labor and other costs; the impact of being required to pay our subcontractors even if our customers do not pay; fluctuations in foreign currencies; risks associated with operating in 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; risks associated with potential environmental issues and other hazards from our operations; 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; restrictions imposed by our credit facility, senior notes, convertible notes and any future loans or securities; our ability to obtain performance and surety bonds; a small number of our existing shareholders have the ability to influence major corporate decisions; 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 as a result of conversions of convertible notes or other stock issuances; our ability to settle conversions of our convertible notes in cash due to contractual restrictions, including those contained in our credit facility, and the availability of cash; 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.
