MasTec, Inc.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of report (Date of earliest event reported): August 1, 2007
MASTEC, INC.
(Exact Name of Registrant as Specified in Its Charter)
Florida
(State or Other Jurisdiction of Incorporation)
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Florida
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0-08106
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65-0829355 |
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(State or other jurisdiction
of incorporation)
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(Commission File
Number)
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(IRS Employer
Identification No.) |
800
S. Douglas Road,
12th
Floor, Coral Gables, Florida 33134
(Address of Principal Executive Offices) (Zip Code)
(305) 599-1800
(Registrants Telephone Number, Including Area Code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02 Results of Operations and Financial Condition
On August 1, 2007, MasTec, Inc. (the Company) announced its financial results for the three
and six months ended June 30, 2007. A copy of the Companys earnings press release is furnished as
Exhibit 99.1 to this report on Form 8-K. The information contained in this report on Form 8-K,
including Exhibit 99.1, shall not be deemed filed with the Securities and Exchange Commission nor
incorporated by reference in any registration statement filed by the Company under the Securities
Act of 1933, as amended.
ITEM 7.01 Regulation FD Disclosure
On August 1, 2007, the Company announced its financial results for the three and six months
ended June 30, 2007. In addition, the Company updated its 2007 guidance as set forth in the
earnings release. A copy of the Companys earnings press release is furnished as Exhibit 99.1 to
this report on Form 8-K. The information contained in this report on Form 8-K, including Exhibit
99.1, shall not be deemed filed with the Securities and Exchange Commission nor incorporated by
reference in any registration statement filed by the Company under the Securities Act of 1933, as
amended.
ITEM 9.01 Financial Statements and Exhibits
(d) Exhibits
99.1 Press Release dated August 1, 2007.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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MASTEC, INC.
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Date: August 1, 2007 |
By: |
/s/ C. Robert Campbell
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C. Robert Campbell |
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Executive Vice President and
Chief
Financial Officer |
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3
EXHIBIT INDEX
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Exhibit No. |
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Description |
99.1
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Press Release dated August 1, 2007. |
Ex-99.1 Press Release dated August 1, 2007
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Contact:
J. Marc Lewis, Vice PresidentInvestor Relations
305-406-1815
305-406-1886 fax
marc.lewis@mastec.com
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800 S. Douglas Road, 12th Floor
Coral Gables, Florida 33134
Tel: 305-599-1800
Fax: 305-406-1960
www.mastec.com |
For Immediate Release
MasTecs Second Quarter Income from Continuing
Operations Grew 31% on 11% Increase in Revenue
Coral Gables, FL (August 1, 2007) MasTec, Inc. (NYSE: MTZ) today announced that for the
quarter ended June 30, 2007, income from continuing operations was $16 million, or $0.24 earnings
per diluted share, on revenue of $256 million. This compares with income from continuing
operations of $12 million, or $0.19 per diluted share, on revenue of $231 million in the prior year
quarter.
A number of other financial measures have also improved this quarter. The most significant was
income from continuing operations increasing to 6.3% of revenue for the quarter, an improvement
over 5.3% in the same quarter last year. Cash and liquidity both improved, with quarter-end
balances of $119 and $139 million, respectively. We define liquidity as availability under our
credit facility plus unrestricted bank cash. Cash collections, as measured by accounts receivable
days sales outstanding, or DSOs, improved again this quarter, down to 59 days, the best in the
Companys recent history.
Jose R. Mas, MasTecs President and Chief Executive Officer, commented, We are pleased with our
progress in 2007. While our operating margins are at their highest level in years, we are far from
satisfied. We will continue focusing on margin improvement and growth as we position the Company
to take advantage of the opportunities in the markets we serve.
In addition, MasTec narrowed the range for its full year 2007 guidance. The Company still expects
revenue to be in the range of $1.04 to $1.06 billion, but has now announced that it expects
earnings per share from continuing operations to be between $0.84 and $0.90 per share.
Management will hold a conference call to discuss results of operations for the quarter ended June
30, 2007 on Thursday, August 2, 2007 at 10:00 a.m. Eastern time. The call-in number for the
conference call is (913) 312-1301 and the replay number is (719) 457-0820, with a pass code of
7818149. The replay will run for 30 days. Additionally, the call will be broadcast live over the
Internet and can be accessed and replayed through the investor relations section of the Companys
website at www.mastec.com.
Summary financials are as follows:
Condensed Unaudited Consolidated Statements of Operations
(In thousands, except per share amounts)
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For the Three Months Ended |
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June 30, |
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2007 |
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2006 |
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Revenue |
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$ |
256,284 |
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$ |
230,516 |
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Costs of revenue, excluding depreciation |
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213,327 |
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196,718 |
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Depreciation |
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4,082 |
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3,456 |
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General and administrative expenses, including non-cash
stock compensation expense of $1,500 in 2007 and
$2,043 in 2006 |
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20,234 |
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16,994 |
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Interest expense, net of interest income |
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2,120 |
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2,362 |
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Other income, net |
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573 |
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1,634 |
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Income from continuing operations before minority interest |
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17,094 |
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12,620 |
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Minority interest |
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(1,035 |
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(323 |
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Income from continuing operations |
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16,059 |
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12,297 |
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Loss from discontinued operations |
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(158 |
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(35,954 |
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Net income (loss) |
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$ |
15,901 |
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$ |
(23,657 |
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Basic net income (loss) per share: |
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Continuing operations |
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$ |
0.24 |
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$ |
0.19 |
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Discontinued operations |
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(0.00 |
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(0.56 |
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Total basic net income (loss) per share |
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$ |
0.24 |
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$ |
(0.37 |
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Basic weighted average common shares outstanding |
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65,854 |
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64,752 |
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Diluted net income (loss) per share: |
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Continuing operations |
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$ |
0.24 |
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$ |
0.19 |
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Discontinued operations |
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(0.00 |
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(0.54 |
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Total diluted net income (loss) per share |
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$ |
0.24 |
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(0.36 |
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Diluted weighted average common shares outstanding |
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67,431 |
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66,463 |
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2
Condensed Consolidated Balance Sheets
(In thousands)
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June 30, |
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2007 (Unaudited) |
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December
31, 2006 |
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Assets |
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Total current assets |
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$ |
342,464 |
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$ |
339,920 |
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Property and equipment, net |
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71,749 |
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61,212 |
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Goodwill |
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181,013 |
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151,600 |
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Deferred taxes, net |
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52,652 |
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49,317 |
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Other assets |
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27,448 |
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43,405 |
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Long-term assets held for sale |
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659 |
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Total assets |
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$ |
675,326 |
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$ |
646,113 |
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Liabilities and Shareholders Equity |
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Current liabilities |
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$ |
148,162 |
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$ |
175,878 |
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Other liabilities |
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34,364 |
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36,521 |
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Long-term debt |
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160,780 |
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128,407 |
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Long-term liabilities related to assets held for sale |
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596 |
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Total shareholders equity |
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332,020 |
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304,711 |
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Total liabilities and shareholders equity |
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$ |
675,326 |
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$ |
646,113 |
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3
Condensed Unaudited Consolidated Statements of Cash Flows
(In thousands)
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For the Six Months |
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Ended June 30, |
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2007 |
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2006 |
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Net cash provided by operating activities |
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$ |
27,255 |
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$ |
10,392 |
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Net cash used in investing activities |
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(24,046 |
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(30,771 |
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Net cash provided by financing activities |
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27,199 |
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80,858 |
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Net increase in cash and cash equivalents |
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30,408 |
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60,479 |
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Net effect of currency translation on cash |
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9 |
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52 |
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Cash and cash equivalents beginning of period |
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89,046 |
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2,024 |
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Cash and cash equivalents end of period |
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$ |
119,463 |
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$ |
62,555 |
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MasTec is a leading specialty contractor operating mainly throughout the United States across
a range of industries. The Companys core activities are the building, installation, maintenance
and upgrade of communication and utility infrastructure systems. The Companys 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 managements 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, material changes in estimates for legal costs or case
settlements, the highly competitive nature of our industry, 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 and other
reserves and allowances for doubtful accounts, restrictions imposed by our credit facility and
senior notes, the outcome of our plans for future operations, growth, and services, including
backlog and 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.
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