Condensed Unaudited Consolidated Statements of Operations

(In thousands, except per share amounts)

For the Three Months Ended

June 30,

For the Six Months Ended

June 30,

2016

2015

2016

2015

Revenue  

$

1,232,404

$

1,066,629

$

2,206,630

$

2,069,896

Costs of revenue, excluding depreciation and amortization 

1,068,182

945,947

1,952,583

1,832,361

Depreciation and amortization

40,657

43,254

79,664

85,852

General and administrative expenses      

67,852

69,250

127,900

143,279

Interest expense, net

12,639

12,907

24,797

23,880

Equity in (earnings) losses of unconsolidated affiliates

(489)

2,638

(3,555)

3,223

Other expense (income), net   

1,524

(4,991)

(11,830)

(5,583)

Income (loss) before income taxes

$

42,039

(2,376)

37,071

(13,116)

(Provision for) benefit from income taxes              

(17,601)

(1,444)

(15,514)

2,908

Net income (loss)  

$

24,438

$

(3,820)

$

21,557

$

(10,208)

Net income (loss) attributable to non-controlling interests       

350

(120)

162

(245)

Net income (loss) attributable to MasTec, Inc.               

$

24,088

$

(3,700)

$

21,395

$

(9,963)

Earnings per share:

Basic earnings (loss) per share

$

0.30

$

(0.05)

$

0.27

$

(0.12)

Basic weighted average common shares outstanding   

80,351

79,830

80,253

81,106

Diluted earnings (loss) per share

$

0.30

$

(0.05)

$

0.26

$

(0.12)

Diluted weighted average common shares outstanding   

81,266

79,830

81,043

81,106

Condensed Unaudited Consolidated Balance Sheets

(In thousands)

June 30,

December 31,

2016

2015

Assets

Current assets         

$

1,321,842

$

1,129,758

Property and equipment, net   

559,057

558,667

Goodwill and other intangibles, net        

1,190,672

1,187,890

Other long-term assets           

52,372

51,032

Total assets   

$

3,123,943

$

2,927,347

Liabilities and Equity

Current liabilities    

$

866,434

$

752,535

Acquisition-related contingent consideration, net of current portion      

25,151

41,675

Long-term debt       

998,440

932,868

Long-term deferred tax liabilities, net     

173,220

188,759

Other long-term liabilities       

90,482

68,119

Equity     

970,216

943,391

        Total liabilities and equity           

$

3,123,943

$

2,927,347

Condensed Unaudited Consolidated Statements of Cash Flows

(In thousands)

For the Six Months Ended

June 30,

2016

2015

Net cash provided by operating activities

$

28,488

$

161,289

Net cash used in investing activities

(59,872)

(109,583)

Net cash provided by (used in) financing activities

36,046

(70,368)

Effect of currency translation on cash    

(888)

(642)

Net increase (decrease) in cash and cash equivalents         

3,774

(19,304)

Cash and cash equivalents - beginning of period   

$

4,984

$

24,059

Cash and cash equivalents - end of period       

$

8,758

$

4,755

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures - Unaudited

(In millions, except for percentages and per share amounts)

For the Three Months Ended
June 30,

For the Six Months Ended
June 30,

Segment Information

2016

2015

2016

2015

Revenue by Reportable Segment

Communications

$

592.2

$

468.9

$

1,103.8

$

938.8

Oil and Gas

425.6

410.5

718.4

737.3

Electrical Transmission

95.6

78.2

181.9

194.3

Power Generation and Industrial

119.7

103.1

201.1

187.4

Other

3.9

6.9

7.3

13.5

Eliminations

(4.6)

(1.0)

(5.9)

(1.4)

Corporate

-

-

-

-

Consolidated revenue

$

1,232.4

$

1,066.6

$

2,206.6

$

2,069.9

For the Three Months Ended June 30,

For the Six Months Ended 
June 30,

2016

2015

2016

2015

Adjusted EBITDA by Reportable Segment

Communications

$

66.6

$

48.6

$

128.4

$

109.1

Oil and Gas

56.5

41.3

76.1

62.9

Electrical Transmission

(7.8)

(21.4)

(30.9)

(23.9)

Power Generation and Industrial

4.8

8.0

7.7

(0.9)

Other

0.3

(0.0)

0.5

0.4

Eliminations

-

-

-

-

Corporate

(16.1)

(5.5)

(23.7)

(12.9)

Adjusted EBITDA

$

104.3

$

71.0

$

158.1

$

134.7

Non-cash stock-based compensation expense

3.9

2.7

7.4

6.3

Restructuring charges

5.1

-

9.1

-

Acquisition integration costs

-

7.8

-

16.6

Audit Committee investigation related costs

-

6.7

-

9.7

Losses on non-controlled joint venture

-

-

-

5.5

EBITDA

$

95.3

$

53.8

$

141.5

$

96.6

For the Three Months Ended June 30,

For the Six Months Ended
 June 30,

2016

2015

2016

2015

Adjusted EBITDA Margin by Reportable Segment

Communications

11.2%

10.4%

11.6%

11.6%

Oil and Gas            

13.3%

10.1%

10.6%

8.5%

Electrical Transmission          

(8.1)%

(27.4)%

(17.0)%

(12.3)%

Power Generation and Industrial            

4.0%

7.8%

3.8%

(0.5)%

Other

7.2%

(0.3)%

6.8%

2.7%

Eliminations

NA

NA

NA

NA

Corporate

NA

 NA

NA

NA

Adjusted EBITDA margin

8.5%

6.7%

7.2%

6.5%

Non-cash stock-based compensation expense   

0.3%

0.3%

0.3%

0.3%

Restructuring charges

0.4%

-

0.4%

-

Acquisition integration costs              

-

0.7%

-

0.8%

Audit Committee investigation related costs      

-

0.6%

-

0.5%

Losses on non-controlled joint venture              

-

-

-

0.3%

EBITDA margin

7.7%

5.0%

6.4%

4.7%

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures - Unaudited

(In millions, except for percentages and per share amounts)

For the Three Months Ended

June 30, 2016

For the Six Months Ended

June 30, 2016

Total

Percent of Revenue

Total

Percent of Revenue

EBITDA and Adjusted EBITDA Reconciliation

Net income

$

24.4

2.0%

$

21.6

1.0%

Interest expense, net

12.6

1.0%

24.8

1.1%

Provision for income taxes

17.6

1.4%

15.5

0.7%

Depreciation and amortization

40.7

3.3%

79.7

3.6%

EBITDA

$

95.3

7.7%

$

141.5

6.4%

Non-cash stock-based compensation expense

3.9

0.3%

7.4

0.3%

Restructuring charges

5.1

0.4%

9.1

0.4%

Adjusted EBITDA

$

104.3

8.5%

$

158.1

7.2%

For the Three Months Ended

June 30, 2015

For the Six Months Ended

June 30, 2015

Total

Percent of Revenue

Total

Percent of
Revenue

EBITDA and Adjusted EBITDA Reconciliation

Net loss

$

(3.8)

(0.4)%

$

(10.2)

(0.5)%

Interest expense, net

12.9

1.2%

23.9

1.2%

Provision for (benefit from) income taxes

1.4

0.1%

(2.9)

(0.1)%

Depreciation and amortization

43.3

4.1%

85.9

4.1%

EBITDA

$

53.8

5.0%

$

96.6

4.7%

Non-cash stock-based compensation expense

2.7

0.3%

6.3

0.3%

Acquisition integration costs

7.8

0.7%

16.6

0.8%

Audit Committee investigation related costs

6.7

0.6%

9.7

0.5%

Losses on non-controlled joint venture

-

-

5.5

0.3%

Adjusted EBITDA

$

71.0

6.7%

$

134.7

6.5%

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures - Unaudited

(In millions, except for percentages and per share amounts)

For the Three Months Ended

June 30, 2016

For the Six Months Ended

June 30, 2016

Income

Before
Income Taxes

Provision
for Income
Taxes

Net Income

Income

Before
Income Taxes

Provision
for Income
Taxes

Net Income

Adjusted Net Income Reconciliation

Reported U.S. GAAP measure

$

42.0

$

(17.6)

$

24.4

$

37.1

$

(15.5)

$

21.6

     Non-cash stock-based compensation expense

3.9

(1.5)

2.4

7.4

(3.0)

4.4

     Restructuring charges

5.1

(1.9)

3.1

9.1

(3.7)

5.5

Adjusted non-U.S. GAAP measure

$

51.0

$

(21.0)

$

29.9

$

53.6

$

(22.1)

$

31.5

For the Three Months Ended
June 30, 2016

For the Six Months Ended

June 30, 2016

Adjusted Diluted EPS Reconciliation

Diluted earnings per share

$

0.30

$

0.26

Non-cash stock-based compensation expense, net of tax

0.03

0.05

Restructuring charges, net of tax        

0.04

0.07

Adjusted diluted earnings per share

$

0.36

$

0.39

For the Three Months Ended

June 30, 2015

For the Six Months Ended

June 30, 2015

(Loss) Income

Before
Income Taxes

Provision
for Income
Taxes

Net (Loss) Income

(Loss) Income

Before
Income Taxes

Provision
for Income
Taxes

Net (Loss) Income

Adjusted Net Income Reconciliation

Reported U.S. GAAP measure

$

(2.4)

$

(1.4)

$

(3.8)

$

(13.1)

$

2.9

$

(10.2)

   Non-cash stock-based compensation expense

2.7

(1.3)

1.4

6.3

(2.8)

3.5

Acquisition integration costs

7.8

(3.8)

4.0

16.6

(7.4)

9.2

   Audit Committee investigation related costs

7.5

(3.5)

4.0

10.5

(4.7)

5.8

Losses on non-controlled joint venture

-

(0.2)

(0.2)

5.5

(2.4)

3.1

   Impact of Alberta tax law change

-

2.8

2.8

-

2.8

2.8

Adjusted non-U.S. GAAP measure

$

15.6

$

(7.5)

$

8.1

$

25.8

$

(11.6)

$

14.2

For the Three Months Ended

June 30, 2015

For the Six Months Ended
June 30, 2015

Adjusted Diluted EPS Reconciliation

Diluted loss per share

$

(0.05)

$

(0.12)

Non-cash stock-based compensation expense, net of tax

0.02

0.04

Acquisition integration costs, net of tax

0.05

0.11

Audit Committee investigation related costs, net of tax

0.05

0.07

Losses on non-controlled joint venture, net of tax

(0.00)

0.04

Impact of Alberta tax law change

0.04

0.03

Adjusted diluted earnings per share

$

0.10

$

0.18

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures - Unaudited

(In millions, except for percentages and per share amounts)

Guidance for the

Three Months Ended

September 30, 2016 Est.

For the

Three Months Ended

September 30, 2015

EBITDA and Adjusted EBITDA Reconciliation 

Net income

$

52

$

7.4

Interest expense, net

13

12.0

Provision for income taxes

38

6.2

Depreciation and amortization

44

42.2

EBITDA

$

148

$

67.8

Non-cash stock-based compensation expense    

4

3.2

Restructuring charges

3

-

Acquisition integration costs              

-

1.2

Audit Committee investigation related costs

-

4.1

Losses on non-controlled joint venture

-

2.8

Court mandated mediation settlement

-

12.2

Adjusted EBITDA 

$

155

$

91.1

EBITDA and Adjusted EBITDA Margin Reconciliation 

Net income

3.5%

0.7%

Interest expense, net

0.9%

1.1%

Provision for income taxes

2.5%

0.6%

Depreciation and amortization

3.0%

3.8%

EBITDA margin 

9.8%

6.1%

Non-cash stock-based compensation expense    

0.3%

0.3%

Restructuring charges

0.2%

-

Acquisition integration costs              

-

0.1%

Audit Committee investigation related costs

-

0.4%

Losses on non-controlled joint venture

-

0.3%

Court mandated mediation settlement

-

1.1%

Adjusted EBITDA margin

10.3%

8.2%

Guidance for the

Three Months Ended

September 30, 2016 Est.

For the

Three Months Ended

September 30, 2015

Adjusted Net Income Reconciliation

Net income

$

52

$

7.4

Non-cash stock-based compensation expense, net of tax   

3

1.8

Restructuring charges, net of tax

2

-

Acquisition integration costs, net of tax             

-

0.7

Audit Committee investigation related costs, net of tax      

-

2.3

Impact of Alberta tax law change

-

(0.2)

Losses on non-controlled joint venture, net of tax              

-

1.6

Court mandated mediation settlement, net of tax

-

6.8

Adjusted net income

$

57

$

20.4

Guidance for the

Three Months Ended

September 30, 2016 Est.

For the

Three Months Ended

September 30, 2015

Adjusted Diluted EPS Reconciliation

Diluted earnings per share

$

0.64

$

0.09

Non-cash stock-based compensation expense, net of tax   

0.03

0.02

Restructuring charges, net of tax

0.03

-

Acquisition integration costs, net of tax             

-

0.01

Audit Committee investigation related costs, net of tax      

-

0.03

Impact of Alberta tax law change

-

(0.00)

Losses on non-controlled joint venture, net of tax              

-

0.02

Court mandated mediation settlement, net of tax

-

0.08

Adjusted diluted earnings per share

$

0.69

$

0.26

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures - Unaudited

(In millions, except for percentages and per share amounts)

Guidance for the
Year Ended

December 31,

For the

Year Ended

December 31,

For the

Year Ended

December 31,

2016 Est.

2015

2014

EBITDA and Adjusted EBITDA Reconciliation - Continuing Operations

Net income (loss) from continuing operations

$

112

$

(79.7)

$

122.0

Interest expense, net

52

48.1

50.8

Provision for income taxes

80

12.0

76.4

Depreciation and amortization

169

169.7

154.5

EBITDA - continuing operations

$

412

$

150.0

$

403.7

Non-cash stock-based compensation expense    

16

12.4

15.9

Restructuring charges

12

-

-

Goodwill and intangible asset impairment

-

78.6

-

Acquisition integration costs               

-

17.8

5.3

Audit Committee investigation related costs

-

16.5

-

Losses on non-controlled joint venture

-

16.3

-

Court mandated mediation settlement

-

12.2

-

Loss on equity investee interest rate swaps

-

4.4

-

Adjusted EBITDA - continuing operations

$

440

$

308.1

$

424.9

EBITDA and Adjusted EBITDA Margin Reconciliation - Continuing Operations

Net income (loss) from continuing operations

2.2%

(1.9)%

2.6%

Interest expense, net

1.0%

1.1%

1.1%

Provision for income taxes

1.6%

0.3%

1.7%

Depreciation and amortization

3.4%

4.0%

3.3%

EBITDA margin- continuing operations

8.2%

3.6%

8.8%

Non-cash stock-based compensation expense    

0.3%

0.3%

0.3%

Restructuring charges

0.2%

-

-

Goodwill and intangible asset impairment

-

1.9%

-

Acquisition integration costs               

-

0.4%

0.1%

Audit Committee investigation related costs

-

0.4%

-

Losses on non-controlled joint venture

-

0.4%

-

Court mandated mediation settlement

-

0.3%

-

Loss on equity investee interest rate swaps

-

0.1%

-

Adjusted EBITDA margin - continuing operations

8.8%

7.3%

9.2%

Guidance for the Year Ended

December 31,

For the

Year Ended

December 31,

For the

Year Ended

December 31,

2016 Est.

2015

2014

Adjusted Net Income from Continuing Operations Reconciliation

Net income (loss) from continuing operations

$

112

$

(79.7)

$

122.0

Non-cash stock-based compensation expense, net of tax

10

8.1

9.8

Restructuring charges, net of tax

8

-

-

Goodwill and intangible asset impairment, net of tax

-

76.4

-

Acquisition integration costs, net of tax

-

9.9

3.2

Audit Committee investigation related costs, net of tax

-

11.3

-

Losses on non-controlled joint venture, net of tax

-

13.0

-

Court mandated mediation settlement, net of tax

-

6.8

-

Loss on equity investee interest rate swaps, net of tax

-

2.9

-

Impact of Alberta tax law change

-

2.8

-

Adjusted net income from continuing operations

$

129

$

51.4

$

135.0

Guidance for the
Year Ended

December 31,

For the

Year Ended

December 31,

For the
Year Ended
December 31,

 2016 Est.

2015

2014

Adjusted Diluted EPS Reconciliation - Continuing Operations

Diluted earnings (loss) per share - continuing operations

$

1.36

$

(0.98)

$

1.42

Non-cash stock-based compensation expense, net of tax

0.12

0.10

0.11

Restructuring charges, net of tax

0.09

-

-

Goodwill and intangible asset impairment, net of tax

-

0.94

-

Acquisition integration costs, net of tax

-

0.12

0.04

Audit Committee investigation related costs, net of tax

-

0.14

-

Losses on non-controlled joint venture, net of tax

-

0.16

-

Court mandated mediation settlement, net of tax

-

0.08

-

Loss on equity investee interest rate swaps, net of tax

-

0.04

-

Impact of Alberta tax law change

-

0.03

-

Adjusted diluted earnings per share - continuing operations

$

1.57

$

0.64

$

1.57