MasTec Posts 83.5% Increase in Net Income for Third Quarter of 2005
November 07, 2005
CORAL GABLES, Fla., Nov. 7 /PRNewswire-FirstCall/ -- MasTec, Inc. (NYSE: MTZ) today announced that for the quarter ended September 30, 2005, net income increased to $7.7 million, or $0.16 basic net income per share and $0.15 diluted net income per share, on revenue of $243.5 million. This compares with net income of $4.2 million, or $0.09 basic and diluted net income per share, on revenue of $246.6 million for the third quarter of 2004.
Austin J. Shanfelter, MasTec's President and Chief Executive Officer, commented, "We are pleased with our continued margin improvement, and we expect the upward trend to continue. We have been disciplined in the quarter to accept new projects only when appropriate margins are available. As our core businesses continue to expand, margin will be our number one focus."
At September 30, 2005, MasTec had gross liquidity, defined as bank cash plus availability on the bank credit facility, of $51 million compared with $20 million at September 30, 2004.
For the fourth quarter of 2005, MasTec expects revenue between $220 and $230 million and earnings per share to range from $0.07 to $0.10 per share. The guidance is based on current expectations and estimates and assumes stability in each of the Company's operations, modest growth in fiber deployment, favorable weather conditions and an economy that remains stable.
Management will hold a conference call to discuss results of operations for the nine-month period ended September 30, 2005 on Tuesday, November 8, 2005 at 10:00 a.m. Eastern time. The call-in number for the conference call is (913) 312-1293 and the replay number is (719) 457-0820, with a pass code of 4170251. The replay will run for 30 days. Additionally, the call will be broadcast live over the Internet and can be accessed through the investor relations section of the Company's website at http://www.mastec.com .
Summary financials for the quarters are as follows:
Condensed Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
For the Three Months
Ended
September 30,
2005 2004
Revenue $243,548 $246,622
Costs of revenue, excluding depreciation 207,373 217,070
Depreciation 4,335 4,084
General and administrative expenses 18,546 16,921
Interest expense, net 4,827 4,710
Other income, net -- (754)
Income from continuing operations before
minority interest 8,467 4,591
Minority interest (573) (326)
Income from continuing operations 7,894 4,265
Discontinued operations:
Loss on discontinued operations, net of tax
benefit of $0 in 2005 and 2004 (145) (42)
Loss on write-off of assets of discontinued
operations, net -- --
Loss on sale of assets of discontinued
operations, net of tax benefit -- --
Net income $7,749 $4,223
Basic weighted average common shares
outstanding 49,039 48,395
Basic net income per share:
Continuing operations $.16 $.09
Discontinued operations -- --
Total basic net income per share $.16 $.09
Diluted weighted average common shares
outstanding 50,033 48,703
Diluted net income per share:
Continuing operations $.15 $.09
Discontinued operations -- --
Total diluted net income per share $.15 $.09
Condensed Balance Sheets
(In thousands)
(Unaudited)
September December
30, 31,
2005 2004
Assets
Total current assets $317,795 $312,258
Property and equipment, net 56,451 69,303
Goodwill 138,640 138,640
Deferred taxes 52,658 50,732
Other assets 43,845 29,590
Total assets $609,389 $600,523
Liabilities and Shareholders' Equity
Current liabilities $185,819 $177,795
Other liabilities 37,039 35,516
Long-term debt 196,126 196,059
Total shareholders' equity 190,405 191,153
Total liabilities and shareholders'
equity $609,389 $600,523
Condensed Statements of Cash Flows
(In thousands)
(Unaudited)
For the Nine Months
Ended September 30,
2005 2004
Cash flows from operating activities:
Net cash used in operating activities $(17,299) $(17,295)
Net cash used in investing activities (2,102) (2,186)
Net cash provided by financing activities 2,297 4,268
Net decrease in cash and cash equivalents (17,104) (15,213)
Net effect of currency translation on cash (90) 261
Cash and cash equivalents - beginning of
period 19,548 19,415
Cash used in discontinued operations 540 (746)
Cash and cash equivalents - end of period $2,894 $3,717
MasTec
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
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