CORAL GABLES, Fla., Aug. 3 /PRNewswire-FirstCall/ -- MasTec, Inc. (NYSE: MTZ) today announced that for the quarter ended June 30, 2006, income from continuing operations was $12.1 million, or $0.18 diluted earnings per share, on revenue of $232.1 million. This compares with income from continuing operations of $5.2 million, or $0.10 diluted earnings per share, on revenue of $209.7 million in the prior year quarter. Income from continuing operations for the first six months of 2006 was $0.25 per diluted share compared with a loss from continuing operations of $(0.01) per diluted share for the comparable period of 2005.

The Company currently has gross liquidity, defined as bank cash plus credit line availability, of approximately $110 million, compared with $50 million a year ago. MasTec currently has no cash draws on its $150 million bank credit facility.

The Company's state department of transportation projects and assets, which were classified as discontinued operations beginning in the fourth quarter of 2005, showed a loss of $35.7 million during the second quarter of 2006. This loss included a $20.8 million non-cash impairment charge to adjust the carrying value of the assets down to estimated realization value upon final sale and disposition. Cash used in discontinued operations was $10.6 million for the second quarter, compared with $9.8 million in the first quarter of 2006. The Company continues to market these projects and assets as it exits from this business.

Austin J. Shanfelter, MasTec's President and Chief Executive Officer, commented, "We see continued improving trends for our core markets and our overall continuing operations performance is improving each quarter. Customer demand in both telecommunications and energy continues to grow, outsourcing continues to trend positively and customer capital expenditure budgets are growing. MasTec is well positioned to meet these additional customer needs."

For 2006, MasTec's guidance forecast remains unchanged. The Company expects revenue from continuing operations to be in the range of $950 to $975 million, a double-digit growth rate. Diluted earnings per share from continuing operations for 2006 is expected to be between $0.70 and $0.80 per share.

Management will hold a conference call to discuss results of operations for the quarter ended June 30, 2006 on Friday, August 4, 2006 at 9:00 a.m. Eastern time. The call-in number for the conference call is (913) 981-5592 and the replay number is (719) 457-0820, with a pass code of 8050407. 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 investor relations section of the Company's website at http://www.mastec.com .

    Summary financials for the quarters are as follows:



           Condensed Unaudited Consolidated Statement of Operations
                   (In thousands, except per share amounts)

                                                           For the Three
                                                            Months Ended
                                                              June 30,
                                                         2006         2005

    Revenue                                            $232,100     $209,660
    Costs of revenue, excluding
     depreciation                                       198,125      182,435
    Depreciation                                          3,498        4,240
    General and administrative expenses,
     including non-cash stock compensation
     expense of $2,043 in 2006 and $182 in 2005          17,373       14,031
    Interest expense, net of interest income              2,347        4,710
    Other income, net                                     1,645        1,271
        Income from continuing operations
         before minority interest                        12,402        5,515
        Minority interest                                  (323)        (356)
    Income from continuing operations                    12,079        5,159

    Loss from discontinued operations, net
     of tax benefit                                     (35,736)      (4,043)

        Net income (loss)                              $(23,657)      $1,116
    Basic net income (loss) per share:
      Continuing operations                               $0.19        $0.10
      Discontinued operations                             (0.56)       (0.08)
      Total basic net income (loss) per share            $(0.37)       $0.02
    Basic weighted average common shares
     outstanding                                         64,752       48,894

    Diluted net income (loss) per share:
      Continuing operations                               $0.18        $0.10
      Discontinued operations                             (0.54)       (0.08)
      Total diluted net income (loss) per share          $(0.36)       $0.02

    Diluted weighted average common shares
     outstanding                                         66,463       49,431



               Condensed Unaudited Consolidated Balance Sheets
                                (In thousands)

                                                       June 30,   December 31,
                                                         2006         2005

                        Assets
    Total current assets                               $337,680     $305,307
    Property and equipment, net                          57,476       48,027
    Goodwill                                            150,630      127,143
    Deferred taxes, net                                  45,946       51,468
    Other assets                                         50,352       46,070
    Long-term assets held for sale                        1,027        6,149
          Total assets                                 $643,111     $584,164

         Liabilities and Shareholders' Equity
    Current liabilities                                $157,063     $170,238
    Other liabilities                                    36,343       37,359
    Long-term debt                                      126,961      196,104
    Long-term liabilities related to assets
     held for sale                                          742          860
    Total shareholders' equity                          322,002      179,603
          Total liabilities and shareholders'
           equity                                      $643,111     $584,164



          Condensed Unaudited Consolidated Statements of Cash Flows
                                (In thousands)

                                                        For the Six Months
                                                          Ended June 30,
                                                      2006             2005
    Cash flows from operating activities:
      Net cash provided by (used in)
       operating activities                         $10,392         $(14,543)
      Net cash (used in) investing
       activities                                   (30,771)          (1,541)
      Net cash provided by financing
       activities                                    80,858            1,167
      Net increase (decrease) in cash and
       cash equivalents                              60,479          (14,917)
      Net effect of currency translation
       on cash                                           52              (42)
      Cash and cash equivalents -
       beginning of period                            2,024           19,548
    Cash and cash equivalents - end of
     period                                         $62,555           $4,589

MasTec < http://www.mastec.com > is a leading specialty contractor operating throughout the United States and in Canada across a range of industries. The Company's core activities are the building, installation, maintenance and upgrade of communication, utility infrastructure and transportation systems.

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 that our revenue and earnings per share may differ from that projected, that we may be impacted by business and economic conditions affecting our customers, the highly competitive nature of our industry, dependence on a limited number of customers, the adequacy of our insurance and other reserves and allowances for doubtful accounts, restrictions imposed by our credit facility and senior notes, 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.

CONTACT: J. Marc Lewis, Vice President-Investor Relations, MasTec, Inc., +1-305-406-1815, or fax, +1-305-406-1886, or marc.lewis@mastec.com