MasTec Reports Third Quarter Net Income of $21.6 Million

MasTec, Inc, reportedly announced that revenue for the quarter ended September 30, 2009 was $397 million with net income of $21.6 million, or $0.27 per diluted share, as compared to revenue of $398 million and net income of $24.1 million, or $0.35 per diluted share for the last year quarter.

 

The company aims to focus on margin improvement and cost containment. Third quarter gross margin improved, up 60 basis points to 15.6 percent from 15.0 percent from the last year's quarter. The margin for earnings before interest, taxes, depreciation and amortization, or EBITDA, increased to 9.7 percent for the quarter just ended, up from 9.1 percent in the last year third quarter.

 

“Once again, we had an excellent quarter, in spite of a difficult economic environment. Continued tight credit markets and delays in the federal government finalization of stimulus plan programs have delayed projects and caused many of our customers to defer capital expenditures,” Jose R. Mas, MasTec's president and CEO, said. “However, with the recent release of Federal stimulus grant monies, combined with this month's rollout of the Federal alternative energy loan guarantee program, projects are beginning to be awarded. The loan guarantees are estimated to support up to $70 billion in new renewable projects and we are already beginning to see our order book build nicely for 2010 and beyond, particularly in alternative energy.”

 

"There is no question that the second half of 2009 has been a difficult year for us and our industry,” Mas said. “However, our recent contract wins further reinforce our belief that 2010 could be an unprecedented year of opportunity for MasTec. Despite the slower second half of 2009, we have been able to improve margins, while operating with excess capacity to retain our ramp-up capabilities.”

 

MasTec's balance sheet and cash flow from operations remained steady and up. At the end of the second quarter, MasTec's liquidity, defined as cash plus availability under the company’s credit facility $183 million, compared with $108 million previous year.

 

“Cash flow from operations of $86 million for the September year-to-date period was double last year's cash flow and cash of $95 million was also double our cash at September a year ago,” Bob Campbell, MasTec's executive vice president and chief financial officer said. “Over the last two years, we have expanded into a number of new growth markets while maintaining excellent liquidity and a solid capital structure.”

 

MasTec's 2009 earnings guidance has been increased to $0.88 per diluted share for 2009. Previous guidance was $0.85 per diluted share. Revenue guidance is being adjusted to $1.55 billion. Earnings per diluted share for the year is negatively impacted by large increases in the non-cash amortization expense for acquisition-related intangible assets and the mostly non-cash book tax rate.