MasTec Announces Second Quarter Results

- Q2 Revenue of $1.07 Billion

- Q2 Continuing Operations Adjusted EBITDA of $71 Million

- Q2 Continuing Operations Adjusted Diluted EPS of $0.10

- Issues Guidance for the remainder of 2015

Aug 17, 2015, 16:35 ET from MasTec, Inc.

CORAL GABLES, Fla., Aug. 17, 2015 /PRNewswire/ -- MasTec, Inc. (NYSE: MTZ) today announced 2015 second quarter financial results and updated its guidance for the balance of the year.

Second quarter 2015 revenue decreased 3.7% to $1.07 billion from $1.1 billion in the prior year quarter.  The quarterly revenue change was primarily composed of revenue declines in the Electrical Transmission and Communications segments, partially offset by revenue increases in the Oil & Gas and Power Generation & Industrial segments. Second quarter 2015 net loss from continuing operations was $3.8 million, or $0.05 per diluted share, compared to net income from continuing operations of $33.7 million, or $0.39 per diluted share, for the second quarter of 2014. Second quarter 2015 results include approximately $0.14 per diluted share for non-operating and non-core charges not included in prior year results, composed primarily of WesTower acquisition integration costs, Audit Committee investigation related costs and the nonrecurring impact of an income tax law change in Alberta, Canada.

Second quarter 2015 adjusted net income from continuing operations, a non-GAAP measure, was $8.1 million compared to $36.4 million in 2014. Second quarter 2015 continuing operations adjusted diluted earnings per share, a non-GAAP measure, was $0.10, compared to $0.42 last year.  Second quarter 2015 continuing operations adjusted EBITDA, also a non-GAAP measure, was $71.0 million compared to $108.4 million in 2014.

Adjusted net income from continuing operations, continuing operations adjusted diluted earnings per share and continuing operations adjusted EBITDA, non-GAAP measures, exclude, as applicable, WesTower acquisition integration costs, Audit Committee investigation related costs, losses in a non-controlled joint venture, the nonrecurring impact of income tax law changes in Alberta, Canada, and non-cash stock-based compensation expense. Reconciliations of these and other non-GAAP measures to GAAP-reported measures are attached.

Jose R. Mas, MasTec's Chief Executive Officer, commented, "In the second quarter our business was challenged by the adverse impact of rain and flooding across multiple segments, as well as significant disruptions within our Electrical Transmission segment.  While we are not pleased with our current performance, we are very encouraged by the business outlook in multiple segments, especially in Oil & Gas, Wireless and Fiber network upgrades."

George Pita, MasTec's Executive Vice President and CFO, added, "We are pleased to resume a normal financial reporting schedule, and want to thank our dedicated staff who worked tirelessly during this difficult and disruptive period. The integrity of our corporate governance and financial reporting is of paramount importance to us and we are working to improve our control processes to correct the issues that gave rise to the previously reported interim period 2014 adjustments.  While we are disappointed that these adjustments were necessary, we are very pleased that, as initially expected, they did not materially affect our full year 2014 results." 

The Company currently estimates fiscal year 2015 revenue of $4.2 to $4.3 billion. 2015 continuing operations adjusted EBITDA, a non-GAAP measure, is estimated at $325 to $340 million, with continuing operations adjusted diluted earnings per share, a non–GAAP measure, at $0.73 to $0.83.

For the third quarter of 2015, the Company expects revenue of $1.1 to $1.2 billion.  Third quarter 2015 continuing operations adjusted EBITDA, a non-GAAP measure, is estimated between $100 to $108 million, with continuing operations adjusted diluted earnings per share, a non-GAAP measure, estimated between $0.31 to $0.37.

Reconciliations of these and other non-GAAP measures to GAAP-reported measures are attached.

Management will hold a conference call to discuss these results on Tuesday, August 18, 2015 at 9:00 a.m. Eastern time.  The call-in number for the conference call is (913) 312-0416 and the replay number is (719) 457-0820, with a pass code of 3722826.  The replay will be available for 30 days.  Additionally, the call will be broadcast live over the Internet and can be accessed and replayed through the Investors section of the Company's website at www.mastec.com.

Summary financial statements for the quarters are as follows:

 

 

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,

2015

2014

2015

2014

As Restated

 As Restated

Revenue  

$

1,066,629

$

1,107,232

$

2,069,896

$

2,065,050

Costs of revenue, excluding depreciation and amortization   

945,947

950,715

1,832,361

1,792,040

Depreciation and amortization               

43,254

36,755

85,852

70,249

General and administrative expenses     

69,250

54,237

143,279

107,564

Interest expense, net              

12,907

12,949

23,880

24,952

Other income, net  

(2,353)

(1,923)

(2,360)

(4,007)

    (Loss) income from continuing operations before income          taxes

(2,376)

54,499

(13,116)

74,252

(Provision for) benefit from income taxes              

(1,444)

(20,761)

2,908

(28,250)

Net (loss) income from continuing operations   

$

(3,820)

$

33,738

$

(10,208)

$

46,002

Discontinued operations:

Net loss from discontinued operations              

-

(149)

-

(272)

Net (loss)  income

$

(3,820)

$

33,589

$

(10,208)

$

45,730

Net loss attributable to non-controlling interests              

(120)

(136)

(245)

(91)

Net (loss) income attributable to MasTec, Inc.        

$

(3,700)

$

33,725

$

(9,963)

$

45,821

Earnings per share:

Basic (loss) earnings per share:

Continuing operations        

$

(0.05)

$

0.43

$

(0.12)

$

0.59

Discontinued operations    

-

(0.00)

-

(0.00)

Total basic (loss) earnings per share              

$

(0.05)

$

0.43

$

(0.12)

$

0.59

Basic weighted average common shares outstanding         

79,830

78,269

81,106

77,810

Diluted (loss) earnings per share:

Continuing operations        

$

(0.05)

$

0.39

$

(0.12)

$

0.53

Discontinued operations    

-

(0.00)

-

(0.00)

Total diluted (loss) earnings per share           

$

(0.05)

$

0.39

$

(0.12)

$

0.53

Diluted weighted average common shares outstanding      

79,830

86,730

81,106

86,675

 

Condensed Unaudited Consolidated Balance Sheets

(In thousands)

June 30,

December 31,

2015

2014

Assets

Current assets        

$

1,354,265

$

1,531,751

Property and equipment, net 

614,826

623,118

Goodwill and other intangibles, net       

1,303,186

1,332,839

Other long-term assets           

84,626

76,272

Total assets  

$

3,356,903

$

3,563,980

Liabilities and Equity

Current liabilities   

$

852,968

$

980,848

Acquisition-related contingent consideration, net of current portion    

87,075

103,515

Long-term debt      

1,136,783

1,061,159

Long-term deferred tax liabilities, net    

189,824

203,476

Other long-term liabilities      

63,102

66,907

Equity    

1,027,151

1,148,075

        Total liabilities and equity         

$

3,356,903

$

3,563,980

 

Condensed Unaudited Consolidated Statements of Cash Flows

(In thousands)

For the Six Months Ended June 30,

2015

2014

As Restated

Net cash provided by operating activities

$

165,853

$

55,319

Net cash used in investing activities

(114,228)

(221,142)

Net cash (used in) provided by financing activities              

(70,368)

159,167

Net effect of currency translation on cash            

(561)

(347)

Net decrease in cash and cash equivalents        

(19,304)

(7,003)

Cash and cash equivalents - beginning of period   

$

24,059

$

22,927

Cash and cash equivalents - end of period      

$

4,755

$

15,924

 

 

 

Reconciliation of Non-GAAP Disclosures and Supplemental 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

2015

2014

2015

2014

 As Restated

 As Restated

Revenue by Reportable Segment

Communications

$

468.9

$

528.1

$

938.8

$

975.2

Oil and Gas

410.5

365.1

737.3

744.9

Electrical Transmission

78.2

116.8

194.3

190.7

Power Generation and Industrial

103.1

94.5

187.4

148.8

Other

6.9

3.7

13.5

6.5

Eliminations

(1.0)

(1.0)

(1.3)

(1.0)

Consolidated revenue

$

1,066.6

$

1,107.2

$

2,069.9

$

2,065.1

For the Three Months Ended June 30,

For the Six Months Ended  June 30,

2015

2014

2015

2014

 As Restated

 As Restated

EBITDA by Reportable Segment – Continuing     Operations

Communications (a)

$

40.5

$

57.8

$

92.2

$

101.3

Oil and Gas

41.3

36.3

62.9

70.9

Electrical Transmission

(21.4)

19.3

(23.9)

16.6

Power Generation and Industrial

8.0

3.9

(0.9)

4.5

Other (b)

(0.0)

0.3

(5.1)

0.6

Corporate (c)

(14.6)

(13.4)

(28.6)

(24.4)

EBITDA – continuing operations

$

53.8

$

104.2

$

96.6

$

169.5

Non-cash stock-based compensation expense

2.7

4.2

6.3

7.5

Acquisition integration costs

7.8

-

16.6

-

Audit Committee investigation related costs

6.7

-

9.7

-

Losses on non-controlled joint venture

-

-

5.5

-

Adjusted EBITDA – continuing operations

$

71.0

$

108.4

$

134.7

$

176.9

For the Three Months Ended June 30,

For the Six Months Ended  June 30,

2015

2014

2015

2014

 As Restated

 As Restated

EBITDA Margin by Reportable Segment –     Continuing Operations

Communications (a)

8.6%

10.9%

9.8%

10.4%

Oil and Gas            

10.1%

9.9%

8.5%

9.5%

Electrical Transmission          

(27.4)%

16.5%

(12.3)%

8.7%

Power Generation and Industrial           

7.8%

4.1%

(0.5)%

3.0%

Other (b)

(0.2)%

10.9%

(38.2)%

8.7%

Corporate               

 NA

 NA

                   NA  

NA  

EBITDA margin  – continuing operations               

5.0%

9.4%

4.7%

8.2%

Non-cash stock-based compensation expense    

0.3%

0.4%

0.3%

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%

-

Adjusted EBITDA margin  – continuing operations

6.7%

9.8%

6.5%

8.6%

 

(a)     

Included in EBITDA for the Communications segment for the three and six months ended June 30, 2015 is the impact of acquisition integration costs related to WesTower of $7.8 million and $16.6 million, respectively.

(b)    

Included in EBITDA for the Other segment for the three and six months ended June 30, 2015 is the impact of losses on a non-controlled joint venture of $0.0 million and $5.5 million, respectively.

(c)     

Included in EBITDA for the Corporate segment for the three and six months ended June 30, 2015 is the impact of Audit Committee investigation costs of $6.7 million and $9.7 million, respectively.  Non-cash stock-based compensation is also included in the Corporate segment for the three and six months ended June 30, 2015 and June 30, 2014.

 

 

Reconciliation of Non-GAAP Disclosures and Supplemental Disclosures - Unaudited

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

For the Three

Months Ended

For the Six

Months Ended

March 31,

2015

June 30,

2015

June 30,

2015

EBITDA and Adjusted EBITDA Reconciliation – Continuing     Operations

Net loss from continuing operations                     

$

(6.4)

$

(3.8)

$

(10.2)

Interest expense, net                              

11.0

12.9

23.9

(Benefit from) provision for income taxes                     

(4.4)

1.4

(2.9)

Depreciation and amortization              

42.6

43.3

85.9

EBITDA - continuing operations       

$

42.8

$

53.8

$

96.6

Non-cash stock-based compensation expense                   

3.6

2.7

6.3

Acquisition integration costs             

8.8

7.8

16.6

Audit Committee investigation related costs                     

3.0

6.7

9.7

Losses on non-controlled joint venture                             

5.5

-

5.5

Adjusted EBITDA - continuing operations      

$

63.8

$

71.0

$

134.7

EBITDA and Adjusted EBITDA Margin Reconciliation – Continuing Operations

Net loss from continuing operations

(0.6)%

(0.4)%

(0.5)%

Interest expense, net

1.1%

1.2%

1.2%

(Benefit from) provision for income taxes

(0.4)%

0.1%

(0.1)%

Depreciation and amortization

4.2%

4.1%

4.1%

EBITDA margin - continuing operations

4.3%

5.0%

4.7%

Non-cash stock-based compensation expense   

0.4%

0.3%

0.3%

Acquisition integration costs             

0.9%

0.7%

0.8%

Audit Committee investigation related costs                     

0.3%

0.6%

0.5%

Losses on non-controlled joint venture                             

0.5%

-

0.3%

Adjusted EBITDA margin - continuing operations

6.4%

6.7%

6.5%

 

 

For the Three

Months Ended

For the Six

Months Ended

March 31,

2014

June 30,

2014

June 30,

2014

As Restated

As Restated

As Restated

EBITDA and Adjusted EBITDA Reconciliation – Continuing     Operations

Net income from continuing operations

$

12.3

$

33.7

$

46.0

Interest expense, net

12.0

12.9

25.0

Provision for income taxes

7.5

20.8

28.3

Depreciation and amortization

33.5

36.8

70.2

EBITDA - continuing operations

$

65.3

$

104.2

$

169.5

Non-cash stock-based compensation expense

3.3

4.2

7.5

Adjusted EBITDA - continuing operations

$

68.5

$

108.4

$

176.9

EBITDA and Adjusted EBITDA Margin Reconciliation –     Continuing Operations

Net income from continuing operations

1.3%

3.0%

2.2%

Interest expense, net

1.3%

1.2%

1.2%

Provision for income taxes

0.8%

1.9%

1.4%

Depreciation and amortization

3.5%

3.3%

3.4%

EBITDA margin - continuing operations

6.8%

9.4%

8.2%

Non-cash stock-based compensation expense

0.3%

0.4%

0.4%

Adjusted EBITDA margin - continuing operations

7.2%

9.8%

8.6%

 

Reconciliation of Non-GAAP Disclosures and Supplemental Disclosures - Unaudited

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

For the Three

Months Ended

For the Six

Months Ended

March 31, 2015

June 30, 2015

June 30, 2015

Adjusted Net Income Reconciliation

Net loss from continuing operations

$

(6.4)

$

(3.8)

$

(10.2)

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

2.1

1.4

3.5

Acquisition integration costs, net of tax           

5.3

4.0

9.2

Audit Committee investigation related costs, net of tax    

1.8

4.0

5.8

Losses on non-controlled joint venture, net of tax 

3.3

(0.2)

3.1

Impact of Alberta tax law change

-

2.8

2.8

Adjusted net income from continuing operations

$

6.1

$

8.1

$

14.2

Loss from discontinued operations, net of tax

(0.0)

(0.0)

(0.0)

Adjusted net income

$

6.1

$

8.1

$

14.2

For the Three

Months Ended

For the Six

Months Ended

March 31, 2015

June 30, 2015

June 30, 2015

Adjusted Diluted EPS Reconciliation (a)

Diluted loss per share – continuing operations

$

(0.08)

$

(0.05)

$

(0.12)

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

0.03

0.02

0.04

Acquisition integration costs, net of tax           

0.06

0.05

0.11

Audit Committee investigation related costs, net of tax    

0.02

0.05

0.07

Losses on non-controlled joint venture, net of tax  

0.04

(0.00)

0.04

Impact of Alberta tax law change

-

0.04

0.03

Adjusted diluted earnings per share - continuing operations

$

0.07

$

0.10

$

0.18

Diluted loss per share – discontinued operations

(0.00)

-

-

Adjusted diluted earnings per share

$

0.07

$

0.10

$

0.18

 

 

For the Three

Months Ended

For the Six

Months Ended

March 31, 2014

June 30, 2014

June 30, 2014

As Restated

As Restated

As Restated

Adjusted Net Income Reconciliation

Net income from continuing operations

$

12.3

$

33.7

$

46.0

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

2.0

2.6

4.6

Adjusted net income from continuing operations

$

14.3

$

36.4

$

50.6

Loss from discontinued operations, net of tax

(0.1)

(0.1)

(0.3)

Adjusted net income

$

14.2

$

36.2

$

50.4

For the Three

Months Ended

For the Six

Months Ended

March 31, 2014

June 30, 2014

June 30, 2014

As Restated

As Restated

As Restated

Adjusted Diluted EPS Reconciliation

Diluted earnings per share – continuing operations

$

0.14

$

0.39

$

0.53

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

0.02

0.03

0.05

Adjusted diluted earnings per share - continuing operations

$

0.17

$

0.42

$

0.59

Diluted (loss) earnings per share – discontinued operations

(0.00)

0.00

0.00

Adjusted diluted earnings per share

$

0.16

$

0.42

$

0.58

 

(a)   

For the three months ended March 31, 2015, and for the three and six months ended June 30, 2015, because the reported loss from continuing operations is income on an adjusted basis, we included an additional 0.5 million weighted average shares to calculate adjusted diluted earnings per share.  

 

 

 

Reconciliation of Non-GAAP Disclosures and Supplemental Disclosures - Unaudited

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

Guidance for the

Three Months Ended

September 30,

For the

Three Months Ended

September 30,

2015 Est.

2014

As Restated

EBITDA and Adjusted EBITDA Reconciliation  -   Continuing Operations

Net income from continuing operations

$

21 - 25

$

49.4

Interest expense, net

13

12.6

Provision for income taxes

17 - 20

30.3

Depreciation and amortization

42

41.7

EBITDA - continuing operations

$

93 – 101

$

134.2

Non-cash stock-based compensation expense   

3

4.1

Audit Committee investigation related costs

4

-

Adjusted EBITDA  - continuing operations

$

100 - 108

$

138.3

EBITDA and Adjusted EBITDA Margin Reconciliation  -       Continuing Operations

Net income from continuing operations

  1.9% - 2.1%

3.8%

Interest expense, net

  1.1% - 1.2%

1.0%

Provision for income taxes

1.5% - 1.7%

2.3%

Depreciation and amortization

3.5% - 3.8%

3.2%

EBITDA margin  - continuing operations

8.4%

10.2%

Non-cash stock-based compensation expense   

0.3%

0.3%

Audit Committee investigation related costs

0.3% - 0.4%

-

Adjusted EBITDA margin - continuing operations

9.0% - 9.1%

10.5%

Guidance for the

Three Months Ended

September 30,

For the

Three Months Ended

September 30,

2015 Est.

2014

As Restated

Adjusted Net Income from Continuing Operations and Adjusted     Diluted EPS – Continuing Operations Reconciliation

Adjusted Net Income from Continuing Operations Reconciliation

Net income from continuing operations

$

21 – 25

$

49.4

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

2

2.5

Audit Committee investigation related costs, net of tax

2

-

Adjusted net income from continuing operations

$

25 – 29

$

52.0

Guidance for the

Three Months Ended

September 30,

For the

Three Months Ended

September 30,

2015 Est.

2014

As Restated

Adjusted Diluted EPS Reconciliation - Continuing Operations

Diluted earnings per share – continuing operations

$

0.26 – 0.32

$

0.57

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

0.02

0.03

Audit Committee investigation related costs, net of tax    

0.03

-

Adjusted diluted earnings per share - continuing operations

$

0.31 – 0.37  

$

0.60

 

 

Reconciliation of Non-GAAP Disclosures and Supplemental 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,

2015 Est.

2014

2013

EBITDA and Adjusted EBITDA Reconciliation - Continuing    Operations

Net income from continuing operations

$

28 -36

$

122.0

$

147.7

Interest expense, net

50

50.8

46.4

Provision for income taxes

28 - 34

76.4

92.5

Depreciation and amortization

170

154.5

140.9

EBITDA - continuing operations

$

276 – 291

$

403.7

$

427.6

Non-cash stock-based compensation expense      

13

15.9

12.9

Acquisition integration costs               

17

5.3

-

Audit Committee investigation related costs

15

-

-

Losses on non-controlled joint venture

6

-

-

Loss on extinguishment of debt

-

-

5.6

Sintel legal settlement charge

-

-

2.8

Adjusted EBITDA - continuing operations

$

325 - 340

$

424.9

$

448.9

EBITDA and Adjusted EBITDA Margin Reconciliation - Continuing Operations

Net income from continuing operations

0.7% – 0.8%

2.6%

3.4%

Interest expense, net

1.2%

1.1%

1.1%

Provision for income taxes

0.7% - 0.8%

1.7%

2.1%

Depreciation and amortization

4.0% - 4.1%

3.3%

3.3%

EBITDA margin- continuing operations

6.6% – 6.8%

8.8%

9.9%

Non-cash stock-based compensation expense

0.3%

0.3%

0.3%

Acquisition integration costs               

0.4%

0.1%

-

Audit Committee investigation related costs

0.3%

-

-

Losses on non-controlled joint venture

0.1%

-

-

Loss on extinguishment of debt

-

-

0.1%

Sintel legal settlement charge

-

-

0.1%

Adjusted EBITDA margin - continuing operations

7.7% - 7.9%

9.2%

10.4%

 

Guidance for the Year Ended

December 31,

For the

Year Ended

December 31,

For the

Year Ended

December 31,

2015 Est.

2014

2013

Adjusted Net Income from Continuing Operations and Adjusted    Diluted EPS - Continuing Operations Reconciliations

Adjusted Net Income from Continuing Operations Reconciliation

Net income from continuing operations

$

28 – 36

$

122.0

$

147.7

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

7

9.8

8.0

Acquisition integration costs, net of tax           

9

3.2

-

Audit Committee investigation related costs, net of tax

9

-

-

Losses on non-controlled joint venture, net of tax

3

-

-

Loss on extinguishment of debt, net of tax

-

-

3.5

Sintel legal settlement charge, net of tax

-

-

1.7

Impact of Alberta tax law change, net of tax

3

-

-

Adjusted net income from continuing operations

$

59 - 67

$

135.0

$

160.8

Guidance for the Year Ended

December 31,

For the

Year Ended

December 31,

For the Year Ended December 31,

 2015 Est.

2014

2013

Adjusted Diluted EPS Reconciliation - Continuing Operations

Diluted earnings per share - continuing operations

$

0.35 – 0.45

$

1.42

$

1.74

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

0.09

0.11

0.09

Acquisition integration costs, net of tax           

0.11

0.04

-

Audit Committee investigation related costs, net of tax

0.11

-

-

Losses on non-controlled joint venture, net of tax

0.04

-

-

Loss on extinguishment of debt, net of tax

-

-

0.04

Sintel legal settlement charge, net of tax

-

-

0.02

Impact of Alberta tax law change, net of tax

0.03

-

-

Adjusted diluted earnings per share - continuing operations

$

0.73 – 0.83

$

1.57

$

1.90

 

 

Tables may contain differences due to rounding.

 

MasTec, Inc. is a leading infrastructure construction company operating mainly throughout North America across a range of industries. The Company's primary activities include the engineering, building, installation, maintenance and upgrade of energy, utility and communications infrastructure, such as: electrical utility transmission and distribution; natural gas and petroleum pipeline infrastructure; wireless, wireline and satellite communications; power generation, including renewable energy infrastructure; and industrial infrastructure.  MasTec's customers are primarily in these industries.  The Company's corporate website is located at www.mastec.com.  The Company's website should be considered as a recognized channel of distribution, and the Company may periodically post important, or supplemental, information regarding contracts, awards or other related news on the Presentations/Webcasts page in the Investors section therein.  Jose Mas, CEO of MasTec, has led the Company since April of 2007.

 

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 the effect of economic conditions on demand for our services, trends in oil, natural gas, electricity and other energy source prices; reduced capital expenditures by our customers, reduced financing availability, customer consolidation and technological and regulatory changes in the industries we serve; market conditions, technological developments and regulatory changes that affect us or our customers' industries; our ability to accurately estimate the costs associated with our fixed price and other contracts, including any material changes in estimates for completion of projects, and performance on such projects; customer disputes related to our performance of services; disputes with, or failures of, our subcontractors to deliver agreed-upon supplies or services in a timely fashion; any material changes in estimates for legal costs or case settlements or adverse determinations on any claim, lawsuit or proceeding; our ability to replace non-recurring projects with new projects; the timing and extent of fluctuations in geographic, weather, equipment and operational factors affecting the industries in which we operate; our ability to attract and retain qualified personnel, key management and skilled employees, including from acquired businesses, and our ability to enforce any noncompetition agreements, integrate acquired businesses within expected timeframes and achieve the revenue, cost savings and earnings levels from such acquisitions at or above the levels projected; any exposure related to divested businesses; any exposure resulting from system or information technology interruptions or data security breaches; the impact of U.S. federal, local or state tax legislation and other regulations affecting renewable energy, electricity prices, electrical transmission, oil and gas production, broadband and related projects and expenditures; the effect of state and federal regulatory initiatives, including costs of compliance with existing and future environmental requirements; increases in fuel, maintenance, materials, labor and other costs; fluctuations in foreign currencies; risks associated with operating in international markets, which could restrict our ability to expand globally and harm our business and prospects or any failure to comply with laws applicable to our foreign activities; the highly competitive nature of our industry; our dependence on a limited number of customers; the ability of our customers, including our largest customers, to terminate or reduce the amount of work, or in some cases, the prices paid for services on short or no notice under our contracts; the impact of any unionized workforce on our operations, including labor availability and relations; liabilities associated with multi-employer pension plans, including underfunding and withdrawal liabilities, for our operations that employ unionized workers; the adequacy of our insurance, legal and other reserves and allowances for doubtful accounts; restrictions imposed by our credit facility, senior notes, and any future loans or securities; our ability to obtain performance and surety bonds; the outcome of our plans for future operations, growth and services, including business development efforts, backlog, acquisitions and dispositions; any dilution or stock price volatility that shareholders may experience in connection with shares we may issue as consideration for earn-out obligations or as purchase consideration in connection with past or future acquisitions, or other stock issuances; 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. Other risks include uncertainties related to the previously disclosed Audit Committee's independent investigation, including, without limitation: the time needed to complete the investigation; whether the Audit Committee's investigation will lead to the discovery of additional accounting errors, whether the investigation will discover any additional material weakness in internal control over financial reporting or discover other adverse facts; unanticipated material issues that could delay the completion of the investigation or cause additional delays in the release and filing of the Company's financial results and periodic financial reports; and possible regulatory action or private party litigation. We do not undertake any obligation to update forward-looking statements.

 

SOURCE MasTec, Inc.



RELATED LINKS

http://www.mastec.com