MasTec Announces Better Than Expected Second Quarter 2020 Results and Record Second Quarter Backlog
MasTec, Inc. (NYSE: MTZ) reported strong second quarter 2020 earnings, with revenue of $1.57 billion and net income of $56.8 million, or $0.78 per share, exceeding expectations. Cash flow from operations reached $293 million, facilitating a $177 million debt reduction. The company's 18-month backlog hit a record $8.2 billion. However, MasTec anticipates continued impacts from the COVID-19 pandemic, leading to an adjusted annual revenue forecast of $7.0 billion. For Q3 2020, guidance includes projected revenue of $1.9 billion and adjusted earnings per share of $1.67.
- Second quarter revenue of $1.57 billion, exceeding expectations.
- Net income of $56.8 million, with adjusted earnings per share of $0.95.
- Record cash flow from operations of $293 million in Q2, enabling $177 million debt reduction.
- Record 18-month backlog of $8.2 billion, a $398 million increase year-over-year.
- Anticipated impacts from COVID-19 include productivity losses and project delays.
- Expected annual revenue reduction to $7.0 billion due to regulatory delays and project shifts.
CORAL GABLES, Fla., July 30, 2020 /PRNewswire/ -- MasTec, Inc. (NYSE: MTZ) today announced better than expected second quarter 2020 financial results and updated its guidance for the remainder of 2020.
Second quarter 2020 revenue was
Second quarter GAAP net income and earnings per diluted share exceeded the Company's expectations at
Second quarter 18-month backlog as of June 30, 2020 was a record
Adjusted net income, adjusted diluted earnings per share and adjusted EBITDA, 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, "The resilience, dedication and focus of the men and women of MasTec resulted in strong second quarter results that exceeded our expectation during these unprecedented times. We are actively monitoring potential volatility caused by the pandemic, while continuing the focus on ensuring the safety of our employees as they provide critical power, communications and other services."
Mr. Mas continued, "Our diversified business model has proven highly resilient, with record first half 2020 cash flow from operations performance of approximately
George Pita, MasTec's Executive Vice President and Chief Financial Officer noted, "We opportunistically took advantage of market conditions shortly after the end of the second quarter to further strengthen our capital structure by offering
Most of MasTec's construction services have been deemed essential under state and local pandemic mitigation orders, and all its business segments have continued to operate. The COVID-19 pandemic has had a negative impact on the Company's operations and the Company expects some continued negative impact for the remainder of 2020. Negative effects include lost productivity from governmental permitting delays, reduced crew productivity due to social distancing and other mitigation measures, lower levels of overhead cost absorption, and/or delayed project start dates, project shutdowns or cancellations that may be imposed on the Company, or its customers. Inclusive of currently expected COVID-19 impacts, the Company estimates 2020 annual revenue of approximately
For the third quarter of 2020, the Company expects revenue of approximately
Senior Management will hold a conference call to discuss these results on Friday, July 31, 2020, at 9:00 a.m. Eastern time. The call-in number for the conference call is (323) 794-2094 or (800) 263-0877 and the replay number is (719) 457-0820, with a pass code of 5797259. 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 Investors section of the Company's website at www.mastec.com.
The following tables set forth the financial results for the periods ended June 30, 2020 and 2019:
Consolidated Statements of Operations (unaudited - in thousands, except per share information) | |||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenue | $ | 1,569,297 | $ | 1,939,006 | $ | 2,985,901 | $ | 3,457,346 | |||||||
Costs of revenue, excluding depreciation and amortization | 1,341,825 | 1,633,400 | 2,568,122 | 2,945,448 | |||||||||||
Depreciation | 57,687 | 55,279 | 110,776 | 109,504 | |||||||||||
Amortization of intangible assets | 9,793 | 4,665 | 17,184 | 9,471 | |||||||||||
General and administrative expenses | 84,959 | 70,819 | 170,473 | 143,436 | |||||||||||
Interest expense, net | 14,808 | 16,623 | 31,812 | 38,881 | |||||||||||
Equity in earnings of unconsolidated affiliates | (6,813) | (6,551) | (14,647) | (12,811) | |||||||||||
Other (income) expense, net | (10,527) | 4,812 | (11,869) | 8,317 | |||||||||||
Income before income taxes | $ | 77,565 | $ | 159,959 | $ | 114,050 | $ | 215,100 | |||||||
Provision for income taxes | (20,738) | (39,736) | (21,161) | (51,770) | |||||||||||
Net income | $ | 56,827 | $ | 120,223 | $ | 92,889 | $ | 163,330 | |||||||
Net (loss) income attributable to non-controlling interests | (178) | 513 | (346) | 507 | |||||||||||
Net income attributable to MasTec, Inc. | $ | 57,005 | $ | 119,710 | $ | 93,235 | $ | 162,823 | |||||||
Earnings per share: | |||||||||||||||
Basic earnings per share | $ | 0.79 | $ | 1.59 | $ | 1.27 | $ | 2.17 | |||||||
Basic weighted average common shares outstanding | 72,045 | 75,183 | 73,392 | 75,088 | |||||||||||
Diluted earnings per share | $ | 0.78 | $ | 1.58 | $ | 1.26 | $ | 2.15 | |||||||
Diluted weighted average common shares outstanding | 72,777 | 75,747 | 74,135 | 75,661 | |||||||||||
Consolidated Balance Sheets (unaudited - in thousands) | |||||||
June 30, | December 31, | ||||||
Assets | |||||||
Current assets | $ | 2,137,048 | $ | 2,173,559 | |||
Property and equipment, net | 972,177 | 905,835 | |||||
Operating lease assets | 198,844 | 229,903 | |||||
Goodwill, net | 1,227,405 | 1,221,440 | |||||
Other intangible assets, net | 202,165 | 211,528 | |||||
Other long-term assets | 252,346 | 254,741 | |||||
Total assets | $ | 4,989,985 | $ | 4,997,006 | |||
Liabilities and Equity | |||||||
Current liabilities | $ | 1,523,391 | $ | 1,219,126 | |||
Long-term debt, including finance leases | 1,115,839 | 1,314,030 | |||||
Long-term operating lease liabilities | 133,535 | 154,553 | |||||
Deferred income taxes | 267,525 | 296,326 | |||||
Other long-term liabilities | 198,859 | 221,280 | |||||
Total equity | 1,750,836 | 1,791,691 | |||||
Total liabilities and equity | $ | 4,989,985 | $ | 4,997,006 | |||
Consolidated Statements of Cash Flows (unaudited - in thousands) | |||||||
For the Six Months Ended June 30, | |||||||
2020 | 2019 | ||||||
Net cash provided by operating activities | $ | 496,502 | $ | 351,461 | |||
Net cash used in investing activities | (136,673) | (122,802) | |||||
Net cash used in financing activities | (383,832) | (196,825) | |||||
Effect of currency translation on cash | 1,214 | (80) | |||||
Net (decrease) increase in cash and cash equivalents | (22,789) | 31,754 | |||||
Cash and cash equivalents - beginning of period | $ | 71,427 | $ | 27,422 | |||
Cash and cash equivalents - end of period | $ | 48,638 | $ | 59,176 | |||
Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures (unaudited - in millions, except for percentages and per share information) | |||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||
Segment Information | 2020 | 2019 | 2020 | 2019 | |||||||||||
Revenue by Reportable Segment | |||||||||||||||
Communications | $ | 654.3 | $ | 652.6 | $ | 1,298.4 | $ | 1,265.4 | |||||||
Oil and Gas | 368.5 | 936.8 | 727.6 | 1,558.1 | |||||||||||
Electrical Transmission | 124.1 | 100.4 | 252.2 | 195.3 | |||||||||||
Clean Energy and Infrastructure (a) | 426.1 | 250.2 | 712.4 | 439.6 | |||||||||||
Other | 0.1 | 0.0 | 0.1 | 0.1 | |||||||||||
Eliminations | (3.8) | (1.0) | (4.8) | (1.2) | |||||||||||
Corporate | — | — | — | — | |||||||||||
Consolidated revenue | $ | 1,569.3 | $ | 1,939.0 | $ | 2,985.9 | $ | 3,457.3 | |||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Adjusted EBITDA by Reportable Segment | |||||||||||||||
EBITDA | $ | 159.9 | $ | 236.5 | $ | 273.8 | $ | 373.0 | |||||||
Non-cash stock-based compensation expense | 5.8 | 4.2 | 9.9 | 7.9 | |||||||||||
Adjusted EBITDA | $ | 165.7 | $ | 240.7 | $ | 283.7 | $ | 380.9 | |||||||
Reportable Segment: | |||||||||||||||
Communications | $ | 76.4 | $ | 52.4 | $ | 127.2 | $ | 97.8 | |||||||
Oil and Gas | 80.1 | 179.3 | 154.5 | 286.7 | |||||||||||
Electrical Transmission | (3.2) | 8.7 | 5.1 | 12.4 | |||||||||||
Clean Energy and Infrastructure (a) | 30.1 | 8.9 | 35.0 | 12.1 | |||||||||||
Other | 7.5 | 6.4 | 14.9 | 12.7 | |||||||||||
Corporate | (25.2) | (15.0) | (53.0) | (40.8) | |||||||||||
Adjusted EBITDA | $ | 165.7 | $ | 240.7 | $ | 283.7 | $ | 380.9 | |||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Adjusted EBITDA Margin by Reportable Segment | |||||||||||||||
EBITDA Margin | 10.2 | % | 12.2 | % | 9.2 | % | 10.8 | % | |||||||
Non-cash stock-based compensation expense | 0.4 | % | 0.2 | % | 0.3 | % | 0.2 | % | |||||||
Adjusted EBITDA margin | 10.6 | % | 12.4 | % | 9.5 | % | 11.0 | % | |||||||
Reportable Segment: | |||||||||||||||
Communications | 11.7 | % | 8.0 | % | 9.8 | % | 7.7 | % | |||||||
Oil and Gas | 21.7 | % | 19.1 | % | 21.2 | % | 18.4 | % | |||||||
Electrical Transmission | (2.6) | % | 8.6 | % | 2.0 | % | 6.4 | % | |||||||
Clean Energy and Infrastructure (a) | 7.1 | % | 3.5 | % | 4.9 | % | 2.8 | % | |||||||
Other | NM | NM | NM | NM | |||||||||||
Corporate | — | — | — | — | |||||||||||
Adjusted EBITDA margin | 10.6 | % | 12.4 | % | 9.5 | % | 11.0 | % | |||||||
(a) During the second quarter of 2020, the Company renamed its Power Generation and Industrial segment as the Clean Energy and Infrastructure segment to better represent the nature of the segment's operations, end markets and customer characteristics. There was no change to the composition of the segment or its historical results. |
NM - Percentage is not meaningful |
Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures (unaudited - in millions, except for percentages and per share information) | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
EBITDA and Adjusted EBITDA Reconciliation | ||||||||||||||||
Net income | $ | 56.8 | $ | 120.2 | $ | 92.9 | $ | 163.3 | ||||||||
Interest expense, net | 14.8 | 16.6 | 31.8 | 38.9 | ||||||||||||
Provision for income taxes | 20.7 | 39.7 | 21.2 | 51.8 | ||||||||||||
Depreciation | 57.7 | 55.3 | 110.8 | 109.5 | ||||||||||||
Amortization of intangible assets | 9.8 | 4.7 | 17.2 | 9.5 | ||||||||||||
EBITDA | $ | 159.9 | $ | 236.5 | $ | 273.8 | $ | 373.0 | ||||||||
Non-cash stock-based compensation expense | 5.8 | 4.2 | 9.9 | 7.9 | ||||||||||||
Adjusted EBITDA | $ | 165.7 | $ | 240.7 | $ | 283.7 | $ | 380.9 | ||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
EBITDA and Adjusted EBITDA Margin Reconciliation | |||||||||||
Net income | 3.6 | % | 6.2 | % | 3.1 | % | 4.7 | % | |||
Interest expense, net | 0.9 | % | 0.9 | % | 1.1 | % | 1.1 | % | |||
Provision for income taxes | 1.3 | % | 2.0 | % | 0.7 | % | 1.5 | % | |||
Depreciation | 3.7 | % | 2.9 | % | 3.7 | % | 3.2 | % | |||
Amortization of intangible assets | 0.6 | % | 0.2 | % | 0.6 | % | 0.3 | % | |||
EBITDA margin | 10.2 | % | 12.2 | % | 9.2 | % | 10.8 | % | |||
Non-cash stock-based compensation expense | 0.4 | % | 0.2 | % | 0.3 | % | 0.2 | % | |||
Adjusted EBITDA margin | 10.6 | % | 12.4 | % | 9.5 | % | 11.0 | % | |||
(a) All prior year periods have been updated to conform with the current period presentation. |
Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures (unaudited - in millions, except for percentages and per share information) | |||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Adjusted Net Income Reconciliation | |||||||||||||||
Net income | $ | 56.8 | $ | 120.2 | $ | 92.9 | $ | 163.3 | |||||||
Non-cash stock-based compensation expense | 5.8 | 4.2 | 9.9 | 7.9 | |||||||||||
Amortization of intangible assets | 9.8 | 4.7 | 17.2 | 9.5 | |||||||||||
Income tax effect of adjustments (a) | (3.5) | (2.1) | (6.1) | (6.5) | |||||||||||
Statutory tax rate effects (b) | — | (1.4) | — | (1.4) | |||||||||||
Adjusted net income | $ | 69.0 | $ | 125.6 | $ | 113.8 | $ | 172.8 | |||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Adjusted Diluted Earnings per Share Reconciliation | |||||||||||||||
Diluted earnings per share | $ | 0.78 | $ | 1.58 | $ | 1.26 | $ | 2.15 | |||||||
Non-cash stock-based compensation expense | 0.08 | 0.06 | 0.13 | 0.10 | |||||||||||
Amortization of intangible assets | 0.13 | 0.06 | 0.23 | 0.13 | |||||||||||
Income tax effect of adjustments (a) | (0.05) | (0.03) | (0.08) | (0.09) | |||||||||||
Statutory tax rate effects (b) | — | (0.02) | — | (0.02) | |||||||||||
Adjusted diluted earnings per share | $ | 0.95 | $ | 1.65 | $ | 1.54 | $ | 2.28 | |||||||
(a) | Represents the tax effect of the adjusted items that are subject to tax, including the tax effects of non-cash stock-based compensation expense. Tax effects are determined based on the tax treatment of the related item, the incremental statutory tax rate of the jurisdictions pertaining to the adjustment, and their effect on pre-tax income. |
(b) | For the three and six month periods ended June 30, 2019, includes the effects of changes in Canadian provincial statutory tax rates. |
(c) | All prior year periods have been updated to conform with the current period presentation. |
Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures (unaudited - in millions, except for percentages and per share information) | |||||||
Guidance for the Three Months | For the Three Months Ended | ||||||
EBITDA and Adjusted EBITDA Reconciliation | |||||||
Net income | $ | 106 | $ | 130.1 | |||
Interest expense, net | 16 | 19.3 | |||||
Provision for income taxes | 38 | 43.3 | |||||
Depreciation | 73 | 50.5 | |||||
Amortization of intangible assets | 10 | 4.7 | |||||
EBITDA | $ | 243 | $ | 247.9 | |||
Non-cash stock-based compensation expense | 6 | 4.2 | |||||
Loss on extinguishment of debt (a) | 6 | - | |||||
Adjusted EBITDA | $ | 254 | $ | 252.1 | |||
Guidance for the Three Months | For the Three Months Ended | ||||||
EBITDA and Adjusted EBITDA Margin Reconciliation | |||||||
Net income | 5.6 | % | 6.5 | % | |||
Interest expense, net | 0.8 | % | 1.0 | % | |||
Provision for income taxes | 2.0 | % | 2.1 | % | |||
Depreciation | 3.8 | % | 2.5 | % | |||
Amortization of intangible assets | 0.5 | % | 0.2 | % | |||
EBITDA margin | 12.8 | % | 12.3 | % | |||
Non-cash stock-based compensation expense | 0.3 | % | 0.2 | % | |||
Loss on extinguishment of debt (a) | 0.3 | % | - | % | |||
Adjusted EBITDA margin | 13.4 | % | 12.5 | % | |||
Guidance for the Three Months | For the Three Months Ended | ||||||
Adjusted Net Income Reconciliation | |||||||
Net income | $ | 106 | $ | 130.1 | |||
Non-cash stock-based compensation expense | 6 | 4.2 | |||||
Loss on extinguishment of debt (a) | 6 | - | |||||
Amortization of intangible assets | 10 | 4.7 | |||||
Income tax effect of adjustments (b) | (5) | (1.7) | |||||
Statutory tax rate effects (c) | — | (0.5) | |||||
Adjusted net income | $ | 122 | $ | 136.8 | |||
Guidance for the Three Months | For the Three Months Ended | ||||||
Adjusted Diluted Earnings per Share Reconciliation | |||||||
Diluted earnings per share | $ | 1.45 | $ | 1.69 | |||
Non-cash stock-based compensation expense | 0.08 | 0.06 | |||||
Loss on extinguishment of debt (a) | 0.08 | - | |||||
Amortization of intangible assets | 0.13 | 0.06 | |||||
Income tax effect of adjustments (b) | (0.06) | (0.02) | |||||
Statutory tax rate effects (c) | — | (0.01) | |||||
Adjusted diluted earnings per share | $ | 1.67 | $ | 1.78 | |||
(a) | Includes the costs expected to be incurred in connection with the refinancing of the existing |
(b) | Represents the tax effect of the adjusted items that are subject to tax, including the tax effects of non-cash stock-based compensation expense. Tax effects are determined based on the tax treatment of the related item, the incremental statutory tax rate of the jurisdictions pertaining to the adjustment, and their effect on pre-tax income. |
(c) | For the 3 month period ending September 30, 2019, includes foreign and/or state statutory rate changes. |
(d) | All prior year periods have been updated to conform with the current period presentation. |
Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures (unaudited - in millions, except for percentages and per share information) | |||||||||||
Guidance for the | For the Year | For the Year | |||||||||
EBITDA and Adjusted EBITDA Reconciliation | |||||||||||
Net income | $ | 314 | $ | 394.1 | $ | 259.2 | |||||
Interest expense, net | 63 | 77.0 | 82.6 | ||||||||
Provision for income taxes | 101 | 116.8 | 106.1 | ||||||||
Depreciation | 259 | 212.5 | 192.3 | ||||||||
Amortization of intangible assets | 36 | 23.0 | 20.6 | ||||||||
EBITDA | $ | 774 | $ | 823.4 | $ | 660.8 | |||||
Non-cash stock-based compensation expense | 21 | 16.4 | 13.5 | ||||||||
Loss on extinguishment of debt (a) | 6 | - | - | ||||||||
Goodwill and intangible asset impairment | — | 3.3 | 47.7 | ||||||||
Project results from non-controlled joint venture | — | — | (1.0) | ||||||||
Adjusted EBITDA | $ | 800 | $ | 843.2 | $ | 721.0 | |||||
Guidance for the | For the Year | For the Year | |||||||||
EBITDA and Adjusted EBITDA Margin Reconciliation | |||||||||||
Net income | 4.5 | % | 5.5 | % | 3.8 | % | |||||
Interest expense, net | 0.9 | % | 1.1 | % | 1.2 | % | |||||
Provision for income taxes | 1.4 | % | 1.6 | % | 1.5 | % | |||||
Depreciation | 3.7 | % | 3.0 | % | 2.8 | % | |||||
Amortization of intangible assets | 0.5 | % | 0.3 | % | 0.3 | % | |||||
EBITDA margin | 11.1 | % | 11.5 | % | 9.6 | % | |||||
Non-cash stock-based compensation expense | 0.3 | % | 0.2 | % | 0.2 | % | |||||
Loss on extinguishment of debt (a) | 0.1 | % | - | % | - | % | |||||
Goodwill and intangible asset impairment | — | % | 0.0 | % | 0.7 | % | |||||
Project results from non-controlled joint venture | — | % | — | % | (0.0) | % | |||||
Adjusted EBITDA margin | 11.4 | % | 11.7 | % | 10.4 | % | |||||
(a) Includes the costs expected to be incurred in connection with the refinancing of the existing |
(b) All prior year periods have been updated to conform with the current period presentation. |
Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures - Unaudited (unaudited - in millions, except for percentages and per share information) | |||||||||||
Guidance for the | For the Year | For the Year | |||||||||
Adjusted Net Income Reconciliation | |||||||||||
Net income | $ | 314 | $ | 394.1 | $ | 259.2 | |||||
Non-cash stock-based compensation expense | 21 | 16.4 | 13.5 | ||||||||
Loss on extinguishment of debt (a) | 6 | - | - | ||||||||
Amortization of intangible assets | 36 | 23.0 | 20.6 | ||||||||
Goodwill and intangible asset impairment | — | 3.3 | 47.7 | ||||||||
Project results from non-controlled joint venture | — | — | (1.0) | ||||||||
Income tax effect of adjustments (b) | (14) | (13.2) | (10.5) | ||||||||
Statutory tax rate effects (c) | — | (7.8) | (12.8) | ||||||||
Adjusted net income | $ | 363 | $ | 415.9 | $ | 316.7 | |||||
Guidance for the | For the Year | For the Year | |||||||||
Adjusted Diluted Earnings per Share Reconciliation | |||||||||||
Diluted earnings per share | $ | 4.27 | $ | 5.17 | $ | 3.26 | |||||
Non-cash stock-based compensation expense | 0.28 | 0.22 | 0.17 | ||||||||
Loss on extinguishment of debt (a) | 0.08 | - | - | ||||||||
Amortization of intangible assets | 0.49 | 0.30 | 0.26 | ||||||||
Goodwill and intangible asset impairment | — | 0.04 | 0.60 | ||||||||
Project results from non-controlled joint venture | — | — | (0.01) | ||||||||
Income tax effect of adjustments (b) | (0.18) | (0.17) | (0.14) | ||||||||
Statutory tax rate effects (c) | — | (0.10) | (0.16) | ||||||||
Adjusted diluted earnings per share | $ | 4.93 | $ | 5.46 | $ | 3.98 | |||||
(a) | Includes the costs expected to be incurred in connection with the refinancing of the existing |
(b) | Represents the tax effect of the adjusted items that are subject to tax, including the tax effects of non-cash stock-based compensation expense. Tax effects are determined based on the tax treatment of the related item, the incremental statutory tax rate of the jurisdictions pertaining to the adjustment, and their effect on pre-tax income. |
(c) | For the year ended December 31, 2019, includes the effects of Canadian provincial statutory tax rates, as well as changes in state tax rates, and for the year ended December 31, 2018, includes the effects of the 2017 Tax Act. |
(d) | All prior year periods have been updated to conform with the current period presentation. |
(e) | Reflects revised estimate for tax effects as compared to earnings release filed on February 27, 2020. |
The tables may contain slight summation differences due to rounding.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the new senior unsecured notes (the "Offering") or any other securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. In addition, this press release is not and should not be construed as a notice of redemption for the
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 and other infrastructure, such as: wireless, wireline/fiber, and customer fulfillment activities; petroleum and natural gas pipeline infrastructure; electrical utility transmission and distribution; power generation; heavy civil, 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 and webcasts on the Events & Presentations 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 currently available operating, financial, economic and other information, and are subject to a number of significant risks and uncertainties. A variety of factors, many of which are beyond our control, could cause actual future results to differ materially from those projected in the forward-looking statements. Specific factors that might cause such a difference include, but are not limited to: risks related to the completion of the Offering and the redemption of the 2023 Notes; risks related to adverse effects of health epidemics and pandemics or other outbreaks of communicable diseases, such as the COVID-19 pandemic; market conditions, technological developments, regulatory changes or other governmental policy uncertainty that affects us or our customers' industries; the effect on demand for our services of changes in the amount of capital expenditures by our customers due to, among other things, economic conditions, including potential adverse effects of public health issues, such as the COVID-19 pandemic on economic activity generally, our customers and our operations, commodity price fluctuations, the availability and cost of financing, and customer consolidation in the industries we serve; activity in the oil and gas, utility and power generation industries and the impact on our customers' expenditure levels caused by fluctuations in prices of oil, natural gas, electricity and other energy sources; our ability to manage projects effectively and in accordance with our estimates, as well as 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 estimates of the recoverability of change orders; the timing and extent of fluctuations in operational, geographic and weather factors affecting our customers, projects and the industries in which we operate; the highly competitive nature of our industry and 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, and/or customer disputes related to our performance of services and the resolution of unapproved change orders; risks related to completed or potential acquisitions, including our ability to identify suitable acquisition or strategic investment opportunities, to integrate acquired businesses within expected timeframes and to 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 and write-downs of goodwill; our dependence on a limited number of customers and our ability to replace non-recurring projects with new projects; risks associated with potential environmental, health and safety issues and other hazards from our operations, as well as the potential for liability as a result of the COVID-19 pandemic, including issues with regulators or claims alleging exposure to COVID-19 relating to our operations or facilities; disputes with, or failures of, our subcontractors to deliver agreed-upon supplies or services in a timely fashion, and the risk of being required to pay our subcontractors even if our customers do not pay us; risks related to our strategic arrangements, including our equity investments; any exposure resulting from system or information technology interruptions or data security breaches; any material changes in estimates for legal costs or case settlements or adverse determinations on any claim, lawsuit or proceeding; the effect of state and federal regulatory initiatives, including costs of compliance with existing and potential future safety and environmental requirements, including with respect to climate change; the effect of federal, local, state, foreign or tax legislation and other regulations affecting the industries we serve and related projects and expenditures; the adequacy of our insurance, legal and other reserves; 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; fluctuations in fuel, maintenance, materials, labor and other costs; risks related to our operations that employ a unionized workforce, including labor availability, productivity and relations, as well as risks associated with multiemployer union pension plans, including underfunding and withdrawal liabilities; risks associated with operating in or expanding into additional international markets, including risks from fluctuations in foreign currencies, foreign labor and general business conditions and risks from failure to comply with laws applicable to our foreign activities and/or governmental policy uncertainty; restrictions imposed by our credit facility, senior 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; risks associated with volatility of our stock price or 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 other stock issuances; as well as other risks detailed in our filings with the Securities and Exchange Commission. We believe these forward-looking statements are reasonable; however, you should not place undue reliance on any forward-looking statements, which are based on current expectations. Furthermore, forward-looking statements speak only as of the date they are made. If any of these risks or uncertainties materialize, or if any of our underlying assumptions are incorrect, our actual results may differ significantly from the results that we express in, or imply by, any of our forward-looking statements. These and other risks are detailed in our filings with the Securities and Exchange Commission. We do not undertake any obligation to publicly update or revise these forward-looking statements after the date of this press release to reflect future events or circumstances, except as required by applicable law. We qualify any and all of our forward-looking statements by these cautionary factors.
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SOURCE MasTec, Inc.
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