- Fourth Quarter Revenue Increased 51%

    - Fourth Quarter Diluted EPS Increased 136%

    - Record Annual Revenue and Net Income

CORAL GABLES, fla., March 2 /PRNewswire-FirstCall/ -- MasTec, Inc. (NYSE: MTZ) today announced another record quarter and year for both revenue and net income. Fourth quarter earnings per diluted share increased 136% on a 51% increase in revenue compared with the prior year quarter and annual earnings per diluted share increased sharply, on a 33% increase in revenue over the prior year. Jose R. Mas, MasTec's President and Chief Executive Officer, commented, "We had another terrific quarter and delivered solid financial results for the year. I am very proud of what our team has accomplished."

Revenue for the quarter ended December 31, 2008 was $414 million and net income was $18.2 million, or $0.26 per diluted share compared with revenue of $274 million and net income of $7.3 million, or $0.11 per diluted share for the prior year quarter. The 2008 fourth quarter results include a $2.5 million charge resulting from the final deferred compensation payment to the Company's prior CEO. Prior to this charge, pro forma net income per diluted share was $0.29 for the quarter.

Revenue for the year ended December 31, 2008 was $1.38 billion and net income was $65.8 million, or $0.96 per diluted share compared with revenue of $1.04 billion and a net loss of $7.3 million or $0.11 loss per diluted share for the prior year.

Income from continuing operations for 2008 was $0.97 per diluted share. After adding back the $2.5 million charge for the prior CEO's final deferred compensation payment, pro forma income from continuing operations for 2008 was $1.00 which compares to pro forma earnings of $0.67 for 2007. The 2007 pro forma earnings reflect the add back of $39.3 million in one-time charges for various legacy legal cases, claims and other disputes. Therefore, the $0.67 pro forma amount for 2007 is operationally comparable to the $1.00 pro forma earnings for 2008.

Mr. Mas continued, "In addition to achieving strong financial results, in 2008 we repositioned MasTec to better compete in more diverse markets offering greater growth opportunities. More specifically, we increased our capabilities in the electrical utility transmission sector, we became a significant player in the wireless infrastructure market, and most importantly, we became one of the leading alternative energy infrastructure service providers in the country. The recent passage of the economic stimulus package should have a significant positive impact on the markets we serve. The Company's financial position remains strong with cash, securities available for sale and availability under the Company's credit facility of $150 million. With no significant debt maturities until 2013, we have a solid balance sheet and are well positioned to take advantage of these opportunities."

The Company is reaffirming its earlier guidance and expects 2009 revenue of $1.95 billion to $2.0 billion. Net income per diluted share in 2009 is expected to be between $1.05 and $1.15. Earnings per diluted share are being negatively impacted by large increases in the non-cash amortization expense for acquisition-related intangible assets and by a large increase in the mostly non-cash book tax rate.

Revenue for the first quarter of 2009 is expected to be between $350 million and $360 million, with net income per diluted share of $0.14 to $0.16, which compares to $0.12 in 2008.

The Company's guidance does not include the impact of legacy litigation, or any mark-to-market valuation adjustments on auction rate securities, either positive or negative.

The following tables set forth the financial results for the periods ended December 31, 2008 and 2007:

                   Condensed Consolidated Statements of Operations
                       (In thousands except per share amounts)

                                        Year Ended       Three Months Ended
                                       December 31,          December 31,
                                      2008       2007      2008      2007

    Revenue                       $1,378,663 $1,037,779  $413,883  $273,635
    Costs of revenue               1,180,310    891,606   358,337   236,391
    Depreciation and amortization     28,465     18,088     9,020     5,375
    General and administrative
     expenses                         88,585    113,623    22,998    18,845
    Interest expense, net of
     interest income                  14,758      9,236     4,644     2,100
    Other (income) expense, net         (927)    (3,516)        7       768
      Income from continuing
       operations before income
       taxes and minority interest    67,472      8,742    18,877    10,156
    Provision for Income taxes          (870)         -      (328)        -
    Minority interest                      -     (2,459)        -      (210)
      Income from continuing
       operations                     66,602      6,283    18,549     9,946
    Loss from discontinued
     operations, net                    (814)   (13,611)     (392)   (2,689)
      Net Income (Loss)              $65,788   $(7,328)   $18,157    $7,257
    Basic net (loss) income per
     share:
      Continuing operations            $0.98      $0.10     $0.27     $0.15
      Discontinued operations          (0.01)     (0.21)    (0.01)    (0.04)
         Total basic net income
          (loss) per share             $0.97     $(0.11)    $0.26     $0.11
    Basic weighted average common
     shares outstanding               67,983     66,147    69,154    66,912
    Diluted net income (loss)
     per share:
      Continuing operations            $0.97      $0.09     $0.27     $0.15
      Discontinued operations          (0.01)     (0.20)    (0.01)    (0.04)
         Total diluted net income
          (loss) per share             $0.96     $(0.11)    $0.26     $0.11
      Diluted weighted average
       common shares outstanding      68,916     67,626    70,517    68,122



                        Condensed Consolidated Balance Sheets
                                   (In thousands)

                                                             December 31
                                                           2008      2007
                             Assets
    Current assets                                       $439,365  $367,407
    Property and equipment, net                           158,013    81,939
    Goodwill and other intangibles, net                   420,604   202,829
    Deferred taxes, net                                    25,165    30,386
    Securities available for sale                          20,580         -
    Other assets                                           27,170    28,188
        Total assets                                   $1,090,897  $710,749

               Liabilities and Shareholders' Equity
    Current liabilities                                  $334,048  $203,595
    Other liabilities                                      26,305    32,310
    Long-term debt                                        287,454   160,279
    Shareholders' equity                                  443,090   314,565
        Total liabilities and shareholders' equity     $1,090,897  $710,749



                Condensed Consolidated Statements of Cash Flows
                                 (In thousands)

                                                     Years Ended December 31,
                                                          2008          2007
     Net cash provided by operating activities          $58,182       $68,698
     Net cash used in investing activities             (141,987)      (62,457)
     Net cash provided by financing activities           56,988        32,756
         Net increase in cash and cash equivalents      (26,817)       38,997
     Net effect of translation on cash                     (208)            9
     Cash and cash equivalents--beginning of period      74,288        35,282
         Cash and cash equivalents--end of period       $47,263       $74,288



                 Reconciliation of Non-GAAP Disclosures-Unaudited
              (In millions, except for percentages and per share data)

                                       For the Year Ended December 31, 2007
                                                                     Earnings
    Income from Continuing Operations            Pre-tax             per
    Reconciliation                     Total     Operating  EBITDA   Diluted
                                   (in millions) Margin     Margin   Share
    GAAP Income from continuing
     operations                         $6.3       0.6%      3.2%      $0.09
    Charges for settlement of
     litigation, claims and other
     disputes                           39.3       3.8%      3.8%       0.58
    Income from continuing
     operations excluding charges
     for settlement of litigation,
     claims and other disputes         $45.6       4.4%      7.0%      $0.67



                                       For the Year Ended December 31, 2008
                                                                     Earnings
    Income from Continuing Operations            Pre-tax             per
    Reconciliation                     Total     Operating  EBITDA   Diluted
                                   (in millions) Margin     Margin   Share
    GAAP Income from continuing
     operations                        $66.6       4.9%      8.0%      $0.97
    Charge resulting from the final
     deferred compensation payment
     to prior CEO                        2.5       0.2%      0.2%       0.04
    Income from continuing operations
     excluding the final deferred
     compensation payment to prior CEO $69.1       5.1%      8.2%      $1.00



    Diluted Net Income Per Share Reconciliation       Three Months Ended
                                                      December 31, 2008

       Diluted net income per share                         $0.26
       Charge resulting from the final deferred
        compensation payment to prior CEO                    0.04
       Pro forma diluted net income per share               $0.29


    Tables may contain differences due to rounding.

MasTec will hold a conference call to discuss these results on March 3, 2009 at 9:00 a.m. Eastern time. The call-in number for the conference call is (913) 312-1300 and the replay number is (719) 457-0820, with a pass code of 2345074. 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 our website at www.mastec.com. MasTec has filed its Form 10-K annual report with the Securities and Exchange Commission, which is available, free of charge, through the investor relations page of the Company's website, or by request through MasTec's investor relations department.

MasTec is a leading specialty contractor operating mainly throughout the United States across a range of industries. The Company's core activities are the building, installation, maintenance and upgrade of communication and utility infrastructure systems. The Company's corporate website is located at www.mastec.com.

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 further economic downturns, reduced capital expenditures, reduced financing availability, customer consolidation and technological and regulatory changes in the industries we serve; market conditions, technical and regulatory changes that affect us or our customers' industries; our ability to retain qualified personnel and key management from acquired businesses and integrate acquisitions with MasTec within the expected timeframes and achieve the revenue, cost savings and earnings levels from the acquisition at or above the levels projected; the impact of the American Recovery and Reinvestment Act of 2009 and any similar local or state regulations affecting renewable energy, electrical transmission, broadband expansion and related projects and expenditures; our ability to attract and retain qualified managers and skilled employees; increases in fuel, maintenance, materials, labor and other costs; any liquidity issues related to our securities held for sale; material changes in estimates for legal costs or case settlements; adverse determinations on any claim, lawsuit or proceeding; the highly competitive nature of our industry; our dependence on a limited number of customers; the ability of our customers to terminate or reduce the amount of work, or in some cases prices paid for services under many of our contracts; the adequacy of our insurance, legal and other reserves and allowances for doubtful accounts; any exposure related to our divested state Department of Transportation projects and assets; restrictions imposed by our credit facility, senior notes and any future loans or securities; any dilution or stock price volatility which shareholders may experience in connection with shares we may issue as consideration for earn-out obligations entered into, or as a result of conversions of convertible stock issued, in connection with past or future acquisitions; 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.

    -0-                           03/02/2009
    /CONTACT:  J. Marc Lewis, Vice President-Investor Relations,
+1-305-406-1815, +1-305-406-1886 fax, marc.lewis@mastec.com/
    /Web Site:  http://www.mastec.com /
    (MTZ)

CO:  MasTec, Inc.

ST:  Florida
IN:  CST STW CPR NET HRD
SU:  ERN CCA ERP

PR
-- FL77532 --
5432 03/02/2009 16:52 EST http://www.prnewswire.com