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) May 8, 2006
MASTEC, INC.
(Exact Name of Registrant as Specified in Its Charter)
Florida
(State or Other
Jurisdiction of Incorporation)
| 0-08106 | 65-0829355 | |
| (Commission File Number) | (IRS Employer Identification No.) |
800 S. Douglas Road,
12th Floor, Coral Gables, Florida 33134
(Address of Principal
Executive Offices) (Zip Code)
(305) 599-1800
(Registrant’s
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:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] 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 May 8, 2006, MasTec, Inc. (the “Company”) issued a press release announcing its financial results as of and for the three months ended March 31, 2006. A copy of the 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.
| a) | Financial Statements of Businesses Acquired Not Applicable. |
| b) | Pro Forma Financial Information Not Applicable. |
| c) | Exhibits: 99.1 Press Release dated May 8, 2006 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Date: May 9, 2006 | MASTEC, INC. BY: /S/ C. Robert Campbell —————————————— C. Robert Campbell Chief Financial Officer MASTEC, INC. |
EXHIBIT INDEX
Number Description
99.1 Press Release dated May 8, 2006
Contact:
J. Marc Lewis, Vice President-Investor Relations
305-406-1815
305-406-1886 fax
marc.lewis@mastec.com
For Immediate Release
MasTec Announces First Quarter Results
Earnings from Continuing Operations of $0.06 Per Share on 13% Rise in Revenue
Coral Gables, FL (May 8, 2006) — MasTec, Inc. (NYSE: MTZ) today announced that for the quarter ended March 31, 2006, income from continuing operations was $3.6 million, or $0.06 diluted earnings per share, on revenue of $218.8 million. This compares with a loss from continuing operations of $5.4 million, or $0.11 diluted loss per share, on revenue of $194.0 million in the prior year quarter.
Austin J. Shanfelter, MasTec’s President and Chief Executive Officer, commented, “We see strong demand for MasTec branded services across all of our markets. In fact, we have the best demand environment that we have seen since 2000. There are multiple leading indicators on future increased spending for most of our customer base.”
The Company currently has gross liquidity, defined as bank cash plus credit line availability, of approximately $105 million, compared with $10 million a year ago. MasTec currently has no cash draws on its $150 million bank credit facility, which was recently amended to provide for better terms and pricing based on the Company’s improved financial position.
Mr. Shanfelter continued, “MasTec continues to make substantial operational progress in a number of areas. Revenue is up, liquidity and cash are both up, general and administrative expense trends are positive, receivables collections are up sharply and our overall performance is improving quarter by quarter. We expect that 2006 will be a good year for MasTec and its investors.”
For 2006, MasTec’s guidance forecast remains unchanged. The Company expects revenue to be in the range of $950 to $975 million, a double-digit growth rate. Earnings per share from continuing operations for 2006 are 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 March 31, 2006 on Tuesday, May 9, 2006 at 9:30 a.m. Eastern time. The call-in number for the conference call is (913) 981-4913 and the replay number is (719) 457-0820, with a pass code of 2504746. 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 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 March 31, | |||||
| 2006 | 2005 | ||||
| Revenue | $ | 218,752 | $ | 193,976 | |
| Costs of revenue, excluding depreciation | 191,957 | 177,077 | |||
| Depreciation | 3,562 | 4,474 | |||
| General and administrative expenses, including non-cash | |||||
| stock compensation expense of $1,181 in 2006 and $24 | |||||
| in 2005 | 16,594 | 14,844 | |||
| Interest expense, net of interest income | 3,485 | 4,832 | |||
| Other income, net | 322 | 1,874 | |||
| Income (loss) from continuing operations before | 3,476 | (5,377) | |||
| minority interest | |||||
| Minority interest | 129 | (66) | |||
| Income (loss) from continuing operations | 3,605 | (5,443) | |||
| Loss from discontinued operations, net of tax benefit | (7,829) | (6,571) | |||
| Net loss | $ | (4,224) | $ | (12,014) | |
| Basic net income (loss) per share: | |||||
| Continuing operations | $ | .06 | $ | (.11) | |
| Discontinued operations | (.13) | (.14) | |||
| Total basic net income (loss) per share | $ | (.07) | $ | (.25) | |
| Basic weighted average common shares outstanding | 59,291 | 48,696 | |||
| Diluted net income (loss) per share: | |||||
| Continuing operations | $ | .06 | $ | (.11) | |
| Discontinued operations | (.13) | (.14) | |||
| Total diluted net income (loss) per share | $ | (.07) | $ | (.25) | |
| Diluted weighted average common shares outstanding | 61,028 | 48,696 | |||
| Condensed Unaudited Balance Sheets | |||||
|---|---|---|---|---|---|
| (In thousands) | |||||
| March 31, 2006 |
December 31, 2005 | ||||
| Assets | |||||
| Total current assets | $ | 350,469 | $ | 305,307 | |
| Property and equipment, net | 46,173 | 48,027 | |||
| Goodwill | 150,630 | 127,143 | |||
| Deferred taxes, net | 54,478 | 51,468 | |||
| Other assets | 47,480 | 46,070 | |||
| Long-term assets held for sale | 5,793 | 6,149 | |||
| Total assets | $ | 655,023 | $ | 584,164 | |
| Liabilities and Shareholders' Equity | |||||
| Current liabilities | $ | 154,791 | $ | 170,238 | |
| Other liabilities | 36,515 | 37,359 | |||
| Long-term debt | 121,082 | 196,104 | |||
| Long-term liabilities related to assets held for sale | 790 | 860 | |||
| Total shareholders' equity | 341,845 | 179,603 | |||
| Total liabilities and shareholders’ equity | $ | 655,023 | $ | 584,164 | |
| Condensed Unaudited Statements of Cash Flows | |||||
|---|---|---|---|---|---|
| (In thousands) | |||||
| For the Three Months Ended March 31, | |||||
| 2006 | 2005 | ||||
| Cash flows from operating activities: | |||||
| Net cash provided by operating activities | $ | 13,992 | $ | 2,562 | |
| Net cash (used in) provided by investing activities | (22,853) | 1,033 | |||
| Net cash provided by financing activities | 78,864 | 500 | |||
| Net increase in cash and cash equivalents | 70,003 | 4,095 | |||
| Net effect of currency translation on cash | (2) | 5 | |||
| Cash and cash equivalents - beginning of period | 2,024 | 19,548 | |||
| Cash and cash equivalents - end of period | $ | 72,025 | $ | 23,648 | |
MasTec <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.