MasTec Announces Third Quarter 2024 Financial Results and Increases Guidance for the Year
MasTec (NYSE: MTZ) reported strong Q3 2024 financial results with revenue of $3.3 billion and significant margin expansion. Net income reached $105.4 million, or $1.21 per diluted share, up from $15.3 million in Q3 2023. Adjusted EBITDA increased 13% to $305.9 million. The company's 18-month backlog grew to a record $13.9 billion, up $1.4 billion year-over-year. Cash flow from operations was strong at $650 million year-to-date. MasTec increased its full-year 2024 guidance, expecting revenue of approximately $12.225 billion and adjusted EBITDA of $990 million.
MasTec (NYSE: MTZ) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con un fatturato di 3,3 miliardi di dollari e un significativo ampliamento dei margini. L'utile netto ha raggiunto 105,4 milioni di dollari, ovvero 1,21 dollari per azione diluita, in aumento rispetto ai 15,3 milioni di dollari del terzo trimestre del 2023. L'EBITDA rettificato è aumentato del 13% a 305,9 milioni di dollari. L'ordine accumulato della società è cresciuto a un massimo storico di 13,9 miliardi di dollari, in aumento di 1,4 miliardi di dollari rispetto all'anno precedente. Il flusso di cassa dalle operazioni è stato solido, pari a 650 milioni di dollari da inizio anno. MasTec ha aumentato le sue previsioni per l'intero anno 2024, prevedendo un fatturato di circa 12,225 miliardi di dollari e un EBITDA rettificato di 990 milioni di dollari.
MasTec (NYSE: MTZ) reportó resultados financieros sólidos para el tercer trimestre de 2024, con ingresos de 3.3 mil millones de dólares y una significativa expansión de márgenes. El ingreso neto alcanzó 105.4 millones de dólares, o 1.21 dólares por acción diluida, un aumento desde los 15.3 millones de dólares en el tercer trimestre de 2023. El EBITDA ajustado aumentó un 13% a 305.9 millones de dólares. La cartera de pedidos de la empresa creció a un récord de 13.9 mil millones de dólares, un incremento de 1.4 mil millones de dólares en comparación con el año anterior. El flujo de efectivo de las operaciones fue sólido, alcanzando 650 millones de dólares hasta la fecha. MasTec incrementó su guía para todo el año 2024, esperando ingresos de aproximadamente 12.225 millones de dólares y un EBITDA ajustado de 990 millones de dólares.
MasTec (NYSE: MTZ)는 2024년 3분기 동안 33억 달러의 매출과 함께 강력한 재무 결과를 보고했으며, 상당한 마진 확장이 있었습니다. 순이익은 1억 540만 달러로 증가했으며, 주당 희석 기준으로 1.21달러입니다. 이는 2023년 3분기의 1,530만 달러에서 증가한 수치입니다. 조정된 EBITDA는 13% 증가하여 3억 590만 달러에 달했습니다. 회사의 18개월 백로그는 사상 최고치인 139억 달러로 증가했으며, 지난해에 비해 14억 달러가 증가했습니다. 연초 기준 운영에서 발생한 현금 흐름은 6억 5천만 달러로 견조했습니다. MasTec는 2024년 전체 연간 가이드를 수정하여 약 122억 2천5백만 달러의 매출과 9억 9천만 달러의 조정 EBITDA를 예상하고 있습니다.
MasTec (NYSE: MTZ) a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec des revenus de 3,3 milliards de dollars et une expansion significative des marges. Le bénéfice net a atteint 105,4 millions de dollars, soit 1,21 dollar par action diluée, en hausse par rapport à 15,3 millions de dollars au troisième trimestre 2023. L'EBITDA ajusté a augmenté de 13 % pour atteindre 305,9 millions de dollars. Le carnet de commandes de l'entreprise a atteint un niveau record de 13,9 milliards de dollars, en hausse de 1,4 milliard de dollars par rapport à l'année précédente. Le flux de trésorerie provenant des opérations a été solide, atteignant 650 millions de dollars depuis le début de l'année. MasTec a augmenté ses prévisions pour l'année 2024, s'attendant à des revenus d'environ 12,225 milliards de dollars et un EBITDA ajusté de 990 millions de dollars.
MasTec (NYSE: MTZ) meldete starke Finanzzahlen für das dritte Quartal 2024 mit Einnahmen von 3,3 Milliarden US-Dollar und einer deutlichen Margenexpansion. Der Nettogewinn erreichte 105,4 Millionen US-Dollar, bzw. 1,21 US-Dollar pro verwässerter Aktie, ein Anstieg von 15,3 Millionen US-Dollar im dritten Quartal 2023. Das bereinigte EBITDA stieg um 13% auf 305,9 Millionen US-Dollar. Der Auftragsbestand des Unternehmens wuchs auf einen Rekord von 13,9 Milliarden US-Dollar, ein Anstieg von 1,4 Milliarden US-Dollar im Jahresvergleich. Der Cashflow aus dem operativen Geschäft war stark mit 650 Millionen US-Dollar seit Jahresbeginn. MasTec hob seine Umsatzprognose für das gesamte Jahr 2024 an und erwartet einen Umsatz von etwa 12,225 Milliarden US-Dollar und ein bereinigtes EBITDA von 990 Millionen US-Dollar.
- Net income increased significantly to $105.4 million from $15.3 million YoY
- Record backlog of $13.9 billion, up $1.4 billion YoY
- Strong cash flow from operations at $650 million YTD
- Adjusted EBITDA grew 13% to $305.9 million
- Net debt leverage reduced to 2.2x
- Revenue remained flat at $3.3 billion compared to Q3 2023
Insights
MasTec delivered strong Q3 2024 results with significant margin expansion. Revenue remained stable at
Key positives include record 18-month backlog of
The Clean Energy segment showed notable improvement with margins expanding to
- Third Quarter 2024 Revenue of
$3.3 Billion - Third Quarter 2024 Diluted Earnings Per Share of
$1.21 $1.63 $0.43 $0.39 - Third Quarter 2024 GAAP Net Income of
$105.4 Million $305.9 $33.4 Million $10.9 Million - Record 18-month Backlog as of September 30, 2024 of
$13.9 Billion $1.4 - Year-to-Date Cash Flow Generated by Operating Activities of
$650
Third quarter 2024 revenue was
Third quarter 2024 adjusted net income and adjusted diluted earnings per share, both non-GAAP measures, were
18-month backlog as of September 30, 2024, was
Jose Mas, MasTec's Chief Executive Officer, commented, "I am pleased with our margin expansion that exceeded our guidance and which drove excellent bottom line performance. Once again, our record backlog and bookings in multiple segments illustrate the strength of our diversified business model and provide good visibility to the work that will drive MasTec's performance in 2025 and beyond. I also want to recognize the hard work and dedication of the men and women of MasTec who continue to deliver for our shareholders."
Paul DiMarco, MasTec's Executive Vice President and Chief Financial Officer, noted, "We again significantly exceeded our cash flow targets, generating
Based on the information available today, the Company is providing fourth quarter 2024 and updating full year 2024 guidance. The Company currently expects full year 2024 revenue of approximately
For the fourth quarter of 2024, the Company expects revenue of approximately
Adjusted net income, adjusted net income attributable to MasTec, Inc., adjusted diluted earnings per share, adjusted EBITDA, adjusted EBITDA margin and net debt, 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.
Management will hold a conference call to discuss these results on Friday, November 1, 2024, at 9:00 a.m. Eastern Time. The call-in number for the conference call is (856) 344-9221 or (888) 204-4368 with a pass code of 9237122. Additionally, the call will be broadcast live over the Internet and can be accessed and replayed for 60 days 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 September 30, 2024 and 2023:
Consolidated Statements of Operations (unaudited - in thousands, except per share information) | |||||||
For the Three Months Ended | For the Nine Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Revenue | $ 3,252,427 | $ 3,257,077 | $ 8,900,362 | $ 8,715,851 | |||
Costs of revenue, excluding depreciation and amortization | 2,789,274 | 2,857,118 | 7,709,393 | 7,701,392 | |||
Depreciation | 80,193 | 115,033 | 289,769 | 325,318 | |||
Amortization of intangible assets | 34,368 | 42,266 | 101,669 | 126,252 | |||
General and administrative expenses | 168,874 | 180,640 | 501,491 | 520,709 | |||
Interest expense, net | 47,048 | 62,556 | 149,678 | 174,664 | |||
Equity in earnings of unconsolidated affiliates, net | (7,042) | (6,787) | (22,153) | (23,434) | |||
Loss on extinguishment of debt | — | — | 11,344 | — | |||
Other expense (income), net | 2,754 | (16,623) | 4,639 | (26,332) | |||
Income (loss) before income taxes | $ 136,958 | $ 22,874 | $ 154,532 | $ (82,718) | |||
(Provision for) benefit from income taxes | (31,548) | (7,569) | (39,813) | 34,231 | |||
Net income (loss) | $ 105,410 | $ 15,305 | $ 114,719 | $ (48,487) | |||
Net income attributable to non-controlling interests | 10,170 | 1,009 | 26,671 | 2,215 | |||
Net income (loss) attributable to MasTec, Inc. | $ 95,240 | $ 14,296 | $ 88,048 | $ (50,702) | |||
Earnings (loss) per share: | |||||||
Basic earnings (loss) per share | $ 1.22 | $ 0.18 | $ 1.13 | $ (0.65) | |||
Basic weighted average common shares outstanding | 78,044 | 77,640 | 78,004 | 77,418 | |||
Diluted earnings (loss) per share | $ 1.21 | $ 0.18 | $ 1.12 | $ (0.65) | |||
Diluted weighted average common shares outstanding | 78,913 | 78,455 | 78,801 | 77,418 | |||
Consolidated Balance Sheets (unaudited - in thousands) | |||
September 30, | December 31, | ||
Assets | |||
Current assets | $ 3,572,895 | $ 3,974,253 | |
Property and equipment, net | 1,519,378 | 1,651,462 | |
Operating lease right-of-use assets | 398,564 | 418,685 | |
Goodwill, net | 2,135,683 | 2,126,366 | |
Other intangible assets, net | 718,230 | 784,260 | |
Other long-term assets | 418,222 | 418,485 | |
Total assets | $ 8,762,972 | $ 9,373,511 | |
Liabilities and equity | |||
Current liabilities | $ 2,887,751 | $ 2,837,219 | |
Long-term debt, including finance leases | 2,138,697 | 2,888,058 | |
Long-term operating lease liabilities | 264,632 | 292,873 | |
Deferred income taxes | 381,219 | 390,399 | |
Other long-term liabilities | 261,961 | 243,701 | |
Total liabilities | $ 5,934,260 | $ 6,652,250 | |
Total equity | $ 2,828,712 | $ 2,721,261 | |
Total liabilities and equity | $ 8,762,972 | $ 9,373,511 | |
Consolidated Statements of Cash Flows (unaudited - in thousands) | |||
For the Nine Months Ended | |||
2024 | 2023 | ||
Net cash provided by operating activities | $ 649,926 | $ 196,572 | |
Net cash used in investing activities | (80,798) | (171,683) | |
Net cash used in financing activities | (916,513) | (181,587) | |
Effect of currency translation on cash | (951) | 280 | |
Net decrease in cash and cash equivalents | $ (348,336) | $ (156,418) | |
Cash and cash equivalents - beginning of period | $ 529,561 | $ 370,592 | |
Cash and cash equivalents - end of period | $ 181,225 | $ 214,174 | |
Backlog by Reportable Segment (unaudited - in millions) | September 30, | June 30, | September 30, | ||
Communications | $ 5,855 | $ 5,898 | $ 5,299 | ||
Clean Energy and Infrastructure | 4,141 | 3,666 | 3,073 | ||
Power Delivery | 3,160 | 2,974 | 2,437 | ||
Oil and Gas | 702 | 800 | 1,681 | ||
Other | — | — | — | ||
Estimated 18-month backlog | $ 13,858 | $ 13,338 | $ 12,490 |
Backlog is a common measurement used in our industry. Our methodology for determining backlog may not, however, be comparable to the methodologies used by others. Estimated backlog represents the amount of revenue we expect to realize over the next 18 months from future work on uncompleted construction contracts, including new contracts under which work has not begun, as well as revenue from change orders and renewal options. Our estimated backlog also includes amounts under master service and other service agreements and our proportionate share of estimated revenue from proportionately consolidated non-controlled contractual joint ventures. Estimated backlog for work under master service and other service agreements is determined based on historical trends, anticipated seasonal impacts, experience from similar projects and estimates of customer demand based on communications with our customers.
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 Nine Months Ended | ||||||
Segment Information | 2024 | 2023 | 2024 | 2023 | |||
Revenue by Reportable Segment | |||||||
Communications | $ 927.2 | $ 824.4 | $ 2,484.7 | $ 2,499.6 | |||
Clean Energy and Infrastructure | 1,138.4 | 1,099.9 | 2,834.2 | 2,894.5 | |||
Power Delivery | 712.5 | 665.0 | 1,920.1 | 2,077.1 | |||
Oil and Gas | 497.8 | 672.3 | 1,704.0 | 1,270.6 | |||
Other | — | — | — | — | |||
Eliminations | (23.5) | (4.5) | (42.6) | (25.9) | |||
Consolidated revenue | $ 3,252.4 | $ 3,257.1 | $ 8,900.4 | $ 8,715.9 | |||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Adjusted EBITDA and EBITDA Margin by Segment | |||||||||||||||
EBITDA | $ 298.6 | 9.2 % | $ 242.7 | 7.5 % | $ 695.6 | 7.8 % | $ 543.5 | 6.2 % | |||||||
Non-cash stock-based compensation expense (a) | 7.3 | 0.2 % | 7.2 | 0.2 % | 24.0 | 0.3 % | 24.3 | 0.3 % | |||||||
Loss on extinguishment of debt (a) | — | — % | — | — % | 11.3 | 0.1 % | — | — % | |||||||
Acquisition and integration costs (b) | — | — % | 21.1 | 0.6 % | — | — % | 60.9 | 0.7 % | |||||||
Losses on fair value of investment (a) | — | — % | — | — % | — | — % | 0.2 | 0.0 % | |||||||
Adjusted EBITDA | $ 305.9 | 9.4 % | $ 271.1 | 8.3 % | $ 731.0 | 8.2 % | $ 629.0 | 7.2 % | |||||||
Segment: | |||||||||||||||
Communications | $ 106.6 | 11.5 % | $ 78.2 | 9.5 % | $ 237.3 | 9.5 % | $ 234.0 | 9.4 % | |||||||
Clean Energy and Infrastructure | 85.0 | 7.5 % | 57.6 | 5.2 % | 152.8 | 5.4 % | 117.8 | 4.1 % | |||||||
Power Delivery | 54.5 | 7.6 % | 57.0 | 8.6 % | 133.2 | 6.9 % | 163.5 | 7.9 % | |||||||
Oil and Gas | 103.1 | 20.7 % | 97.3 | 14.5 % | 330.9 | 19.4 % | 188.9 | 14.9 % | |||||||
Other | 7.4 | NM | 4.4 | NM | 17.2 | NM | 18.2 | NM | |||||||
Segment Total | $ 356.6 | 11.0 % | $ 294.5 | 9.0 % | $ 871.4 | 9.8 % | $ 722.4 | 8.3 % | |||||||
Corporate | (50.7) | — | (23.4) | — | (140.4) | — | (93.4) | — | |||||||
Adjusted EBITDA | $ 305.9 | 9.4 % | $ 271.1 | 8.3 % | $ 731.0 | 8.2 % | $ 629.0 | 7.2 % | |||||||
NM - Percentage is not meaningful | |
(a) | Non-cash stock-based compensation expense, loss on extinguishment of debt and losses on the fair value of an investment are included within Corporate EBITDA. |
(b) | For the three month period ended September 30, 2023, Communications, Clean Energy and Infrastructure and Power Delivery EBITDA included |
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 Nine Months Ended | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
EBITDA and Adjusted EBITDA Reconciliation | |||||||||||||||
Net income (loss) | $ 105.4 | 3.2 % | $ 15.3 | 0.5 % | $ 114.7 | 1.3 % | $ (48.5) | (0.6) % | |||||||
Interest expense, net | 47.0 | 1.4 % | 62.6 | 1.9 % | 149.7 | 1.7 % | 174.7 | 2.0 % | |||||||
Provision for (benefit from) income taxes | 31.5 | 1.0 % | 7.6 | 0.2 % | 39.8 | 0.4 % | (34.2) | (0.4) % | |||||||
Depreciation | 80.2 | 2.5 % | 115.0 | 3.5 % | 289.8 | 3.3 % | 325.3 | 3.7 % | |||||||
Amortization of intangible assets | 34.4 | 1.1 % | 42.3 | 1.3 % | 101.7 | 1.1 % | 126.3 | 1.4 % | |||||||
EBITDA | $ 298.6 | 9.2 % | $ 242.7 | 7.5 % | $ 695.6 | 7.8 % | $ 543.5 | 6.2 % | |||||||
Non-cash stock-based compensation expense | 7.3 | 0.2 % | 7.2 | 0.2 % | 24.0 | 0.3 % | 24.3 | 0.3 % | |||||||
Loss on extinguishment of debt | — | — % | — | — % | 11.3 | 0.1 % | — | — % | |||||||
Acquisition and integration costs | — | — % | 21.1 | 0.6 % | — | — % | 60.9 | 0.7 % | |||||||
Losses on fair value of investment | — | — % | — | — % | — | — % | 0.2 | 0.0 % | |||||||
Adjusted EBITDA | $ 305.9 | 9.4 % | $ 271.1 | 8.3 % | $ 731.0 | 8.2 % | $ 629.0 | 7.2 % | |||||||
For the Three Months Ended | For the Nine Months Ended | ||||||
Adjusted Net Income Reconciliation | 2024 | 2023 | 2024 | 2023 | |||
Net income (loss) | $ 105.4 | $ 15.3 | $ 114.7 | $ (48.5) | |||
Adjustments: | |||||||
Non-cash stock-based compensation expense | 7.3 | 7.2 | 24.0 | 24.3 | |||
Amortization of intangible assets | 34.4 | 42.3 | 101.7 | 126.3 | |||
Loss on extinguishment of debt | — | — | 11.3 | — | |||
Acquisition and integration costs | — | 21.1 | — | 60.9 | |||
Losses on fair value of investment | — | — | — | 0.2 | |||
Total adjustments, pre-tax | $ 41.7 | $ 70.6 | $ 137.1 | $ 211.7 | |||
Income tax effect of adjustments (a) | (8.4) | (10.0) | (30.7) | (58.6) | |||
Adjusted net income | $ 138.7 | $ 75.9 | $ 221.0 | $ 104.7 | |||
Net income attributable to non-controlling interests | 10.2 | 1.0 | 26.7 | 2.2 | |||
Adjusted net income attributable to MasTec, Inc. | $ 128.5 | $ 74.9 | $ 194.3 | $ 102.5 | |||
For the Three Months Ended | For the Nine Months Ended | ||||||
Adjusted Diluted Earnings per Share Reconciliation | 2024 | 2023 | 2024 | 2023 | |||
Diluted earnings (loss) per share | $ 1.21 | $ 0.18 | $ 1.12 | $ (0.65) | |||
Adjustments: | |||||||
Non-cash stock-based compensation expense | 0.09 | 0.09 | 0.31 | 0.31 | |||
Amortization of intangible assets | 0.44 | 0.54 | 1.29 | 1.61 | |||
Loss on extinguishment of debt | — | — | 0.14 | — | |||
Acquisition and integration costs | — | 0.27 | — | 0.78 | |||
Losses on fair value of investment | — | — | — | 0.00 | |||
Total adjustments, pre-tax | $ 0.53 | $ 0.90 | $ 1.74 | $ 2.70 | |||
Income tax effect of adjustments (a) | (0.11) | (0.13) | (0.39) | (0.75) | |||
Adjusted diluted earnings per share | $ 1.63 | $ 0.95 | $ 2.47 | $ 1.31 | |||
(a) | Represents the tax effects of the adjusted items that are subject to tax, including the tax effects of non-cash stock-based compensation expense, including from share-based payment awards. 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 effects on pre-tax income. |
Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures (unaudited - in millions, except for percentages and per share information)
| |||
Calculation of Net Debt | September 30, | December 31, | |
Current portion of long-term debt, including finance leases | $ 185.1 | $ 177.2 | |
Long-term debt, including finance leases | 2,138.7 | 2,888.1 | |
Total Debt | $ 2,323.8 | $ 3,065.3 | |
Less: cash and cash equivalents | (181.2) | (529.6) | |
Net Debt | $ 2,142.6 | $ 2,535.7 | |
Guidance for the | For the Year | For the Year | |||||||||
EBITDA and Adjusted EBITDA Reconciliation | |||||||||||
Net income (loss) | $ 187 | 1.5 % | $ (47.3) | (0.4) % | $ 33.9 | 0.3 % | |||||
Interest expense, net | 196 | 1.6 % | 234.4 | 2.0 % | 112.3 | 1.1 % | |||||
Provision for (benefit from) income taxes | 57 | 0.5 % | (35.4) | (0.3) % | 9.2 | 0.1 % | |||||
Depreciation | 371 | 3.0 % | 433.9 | 3.6 % | 371.2 | 3.8 % | |||||
Amortization of intangible assets | 137 | 1.1 % | 169.2 | 1.4 % | 135.9 | 1.4 % | |||||
EBITDA | $ 947 | 7.7 % | $ 754.9 | 6.3 % | $ 662.5 | 6.8 % | |||||
Non-cash stock-based compensation expense | 32 | 0.3 % | 33.3 | 0.3 % | 27.4 | 0.3 % | |||||
Loss on extinguishment of debt | 11 | 0.1 % | — | — % | — | — % | |||||
Acquisition and integration costs | — | — % | 71.9 | 0.6 % | 86.0 | 0.9 % | |||||
Losses on fair value of investment | — | — % | 0.2 | 0.0 % | 7.7 | 0.1 % | |||||
Project results from non-controlled joint venture | — | — % | — | — % | (2.8) | (0.0) % | |||||
Bargain purchase gain | — | — % | — | — % | (0.2) | (0.0) % | |||||
Adjusted EBITDA | $ 990 | 8.1 % | $ 860.3 | 7.2 % | $ 780.6 | 8.0 % | |||||
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 | |||
Adjusted Net Income Reconciliation | |||||
Net income (loss) | $ 187 | $ (47.3) | $ 33.9 | ||
Adjustments: | |||||
Non-cash stock-based compensation expense | 32 | 33.3 | 27.4 | ||
Amortization of intangible assets | 137 | 169.2 | 135.9 | ||
Loss on extinguishment of debt | 11 | — | — | ||
Acquisition and integration costs | — | 71.9 | 86.0 | ||
Losses on fair value of investment | — | 0.2 | 7.7 | ||
Project results from non-controlled joint venture | — | — | (2.8) | ||
Bargain purchase gain | — | — | (0.2) | ||
Total adjustments, pre-tax | $ 180 | $ 274.7 | $ 254.1 | ||
Income tax effect of adjustments (a) | (40) | (75.3) | (58.6) | ||
Statutory and other tax rate effects (b) | — | 4.6 | 5.5 | ||
Adjusted net income | $ 327 | $ 156.7 | $ 234.8 | ||
Net income attributable to non-controlling interests | 31 | 2.7 | 0.5 | ||
Adjusted net income attributable to MasTec, Inc. | $ 296 | $ 154.0 | $ 234.3 | ||
Guidance for the | For the Year | For the Year | |||
Adjusted Diluted Earnings per Share Reconciliation | |||||
Diluted earnings (loss) per share | $ 1.98 | $ (0.64) | $ 0.42 | ||
Adjustments: | |||||
Non-cash stock-based compensation expense | 0.41 | 0.43 | 0.36 | ||
Amortization of intangible assets | 1.73 | 2.16 | 1.78 | ||
Loss on extinguishment of debt | 0.14 | — | — | ||
Acquisition and integration costs | — | 0.92 | 1.13 | ||
Losses on fair value of investment | — | 0.00 | 0.10 | ||
Project results from non-controlled joint venture | — | — | (0.04) | ||
Bargain purchase gain | — | — | (0.00) | ||
Total adjustments, pre-tax | $ 2.28 | $ 3.51 | $ 3.34 | ||
Income tax effect of adjustments (a) | (0.51) | (0.96) | (0.77) | ||
Statutory and other tax rate effects (b) | — | 0.06 | 0.07 | ||
Adjusted diluted earnings per share | $ 3.75 | $ 1.97 | $ 3.05 |
(a) | Represents the tax effects of the adjusted items that are subject to tax, including the tax effects of non-cash stock-based compensation expense, including from share-based payment awards. 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 effects on pre-tax income. |
(b) | For the years ended December 31, 2023 and 2022, represents the effects of statutory and other tax rate changes. |
Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures (unaudited - in millions, except for percentages and per share information) | |||||||
Guidance for the Three | For the Three Months | ||||||
EBITDA and Adjusted EBITDA Reconciliation | |||||||
Net income | $ 72 | 2.2 % | $ 1.2 | 0.0 % | |||
Interest expense, net | 46 | 1.4 % | 59.7 | 1.8 % | |||
Provision for (benefit from) income taxes | 17 | 0.5 % | (1.2) | (0.0) % | |||
Depreciation | 81 | 2.4 % | 108.6 | 3.3 % | |||
Amortization of intangible assets | 35 | 1.0 % | 43.0 | 1.3 % | |||
EBITDA | $ 251 | 7.5 % | $ 211.3 | 6.4 % | |||
Non-cash stock-based compensation expense | 8 | 0.2 % | 9.0 | 0.3 % | |||
Acquisition and integration costs | — | — % | 11.0 | 0.3 % | |||
Adjusted EBITDA | $ 259 | 7.8 % | $ 231.4 | 7.1 % | |||
Guidance for the | For the Three | ||
Adjusted Net Income Reconciliation | |||
Net income | $ 72 | $ 1.2 | |
Adjustments: | |||
Non-cash stock-based compensation expense | 8 | 9.0 | |
Amortization of intangible assets | 35 | 43.0 | |
Acquisition and integration costs | — | 11.0 | |
Total adjustments, pre-tax | $ 43 | $ 63.0 | |
Income tax effect of adjustments (a) | (10) | (16.8) | |
Statutory tax rate effects (b) | — | 4.6 | |
Adjusted net income | $ 106 | $ 52.0 | |
Net income attributable to non-controlling interests | 4 | 0.4 | |
Adjusted net income attributable to MasTec, Inc. | $ 102 | $ 51.6 |
Guidance for the | For the Three | ||
Adjusted Diluted Earnings per Share Reconciliation | |||
Diluted earnings per share | $ 0.86 | $ 0.01 | |
Adjustments: | |||
Non-cash stock-based compensation expense | 0.10 | 0.11 | |
Amortization of intangible assets | 0.44 | 0.55 | |
Acquisition and integration costs | — | 0.14 | |
Total adjustments, pre-tax | $ 0.54 | $ 0.80 | |
Income tax effect of adjustments (a) | (0.12) | (0.21) | |
Statutory tax rate effects (b) | — | 0.06 | |
Adjusted diluted earnings per share | $ 1.29 | $ 0.66 |
(a) | Represents the tax effects of the adjusted items that are subject to tax, including the tax effects of non-cash stock-based compensation expense, including from share-based payment awards. 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 effects on pre-tax income. |
(b) | For the three month period ended December 31, 2023, represents the effects of statutory and other tax rate changes. |
The tables may contain slight summation differences due to rounding.
MasTec uses EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin, as well as Adjusted Net Income, Adjusted Net Income Attributable to MasTec, Inc., Adjusted Diluted Earnings Per Share and Net Debt, to evaluate our performance, both internally and as compared with its peers, because these measures exclude certain items that may not be indicative of its core operating results, as well as items that can vary widely across different industries or among companies within the same industry. MasTec believes that these adjusted measures provide a baseline for analyzing trends in its underlying business. MasTec believes that these non-
MasTec, Inc. is a leading infrastructure construction company operating mainly throughout
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements include, but are not limited to, statements relating to expectations regarding the future financial and operational performance of MasTec; expectations regarding MasTec's business or financial outlook; expectations regarding MasTec's plans, strategies and opportunities; expectations regarding opportunities, technological developments, competitive positioning, future economic conditions and other trends in particular markets or industries; the impact of inflation on MasTec's costs and the ability to recover increased costs, as well as other statements reflecting expectations, intentions, assumptions or beliefs about future events and other statements that do not relate strictly to historical or current facts. 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 in addition to those mentioned above, many of which are beyond our control, could cause actual future results to differ materially from those projected in the forward-looking statements. Other factors that might cause such a difference include, but are not limited to: market conditions, including from rising or elevated levels of inflation or interest rates, regulatory or policy changes, including permitting processes and tax incentives that affect us or our customers' industries, supply chain issues and technological developments; the effect of federal, local, state, foreign or tax legislation and other regulations affecting the industries we serve and related projects and expenditures; project delays due to permitting processes, compliance with environmental and other regulatory requirements and challenges to the granting of project permits, which could cause increased costs and delayed or reduced revenue; 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 economic downturns, inflationary issues, the availability and cost of financing, supply chain disruptions, climate-related matters, customer consolidation in the industries we serve and/or the effects of public health matters; activity in the industries we serve and the impact on the expenditure levels of our customers of, among other items, fluctuations in commodity prices, including for fuel and energy sources, fluctuations in the cost of materials, labor, supplies or equipment, and/or supply-related issues that affect availability or cause delays for such items; the outcome of our plans for future operations, growth and services, including business development efforts, backlog, acquisitions and dispositions; risks related to completed or potential acquisitions, including our ability to integrate acquired businesses within expected timeframes, including their business operations, internal controls and/or systems, which may be found to have material weaknesses, and our ability to achieve the revenue, cost savings and earnings levels from such acquisitions at or above the levels projected, as well as the risk of potential asset impairment charges and write-downs of goodwill; 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; our ability to attract and retain qualified personnel, key management and skilled employees, including from acquired businesses, our ability to enforce any noncompetition agreements, and our ability to maintain a workforce based upon current and anticipated workloads; any material changes in estimates for legal costs or case settlements or adverse determinations on any claim, lawsuit or proceeding; the adequacy of our insurance, legal and other reserves; the timing and extent of fluctuations in operational, geographic and weather factors, including from climate-related events, that affect 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; the effect of state and federal regulatory initiatives, including risks related to the costs of compliance with existing and potential future environmental, social and governance requirements, including with respect to climate-related matters; requirements of and restrictions imposed by our credit facility, term loans, senior notes and any future loans or securities; systems and information technology interruptions and/or data security breaches that could adversely affect our ability to operate, our operating results, our data security or our reputation, or other cybersecurity-related matters; our dependence on a limited number of customers and our ability to replace non-recurring projects with new projects; risks associated with potential environmental issues and other hazards from our operations; 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; risks associated with volatility of our stock price or any dilution or stock price volatility that shareholders may experience, including as a result of shares we may issue as purchase consideration in connection with acquisitions, or as a result of other stock issuances; our ability to obtain performance and surety bonds; 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; risks related to our operations that employ a unionized workforce, including labor availability, productivity and relations, risks related to a small number of our existing shareholders having the ability to influence major corporate decisions, as well as risks associated with multiemployer union pension plans, including underfunding and withdrawal liabilities; risks associated with our internal controls over financial reporting, 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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