- Record First Quarter 2024 Revenue of $2.7 Billion
- First Quarter 2024 GAAP Net Loss of $34.5 Million, a $46.0 Million Improvement over First Quarter 2023 and Beating Consensus Estimates by $33.1 Million
- First Quarter 2024 Adjusted EBITDA of $157.3 Million, a $54.8 Million Improvement Over First Quarter 2023 and Beating Consensus Estimates by $28.7 Million
- First Quarter 2024 Diluted Loss Per Share of $0.53 and Adjusted Diluted Loss Per Share of $0.13, Beating Consensus Estimates by $0.33 and $0.35, Respectively
- 18-month Backlog as of March 31, 2024 of $12.8 Billion Increased $430 Million sequentially from the Fourth Quarter 2023
- Annual 2024 Guidance Increased to Revenue of $12.55 Billion, GAAP Net Income of $121 Million, Adjusted Net Income of $257 Million, Adjusted EBITDA of $975 Million, Diluted Earnings Per Share of $1.23 and Adjusted Diluted Earnings Per Share of $2.95
CORAL GABLES, Fla., May 2, 2024 /PRNewswire/ -- MasTec, Inc. (NYSE: MTZ) today announced first quarter 2024 financial results and updated its full year 2024 guidance expectations.
First quarter 2024 revenue was up 4% to $2.69 billion, a first quarter record, compared to $2.58 billion for the first quarter of 2023. GAAP net loss was $34.5 million, or $0.53 per diluted share, compared to a net loss of $80.5 million, or $1.05 per diluted share, in the first quarter of 2023.
First quarter 2024 adjusted net loss and adjusted diluted loss per share, both non-GAAP measures, were $3.3 million and $0.13, respectively, as compared to adjusted net loss and adjusted diluted loss per share of $41.9 million and $0.54, respectively, in the first quarter of 2023. First quarter 2024 adjusted EBITDA, also a non-GAAP measure, was $157.3 million, compared to $102.5 million in the first quarter of 2023.
18-month backlog as of March 31, 2024, was $12.8 billion, up $430 million sequentially from the fourth quarter of 2023.
Adjusted net (loss) income, adjusted diluted (loss) earnings per share, adjusted EBITDA, adjusted EBITDA margin and net debt, which are all non-GAAP measures, exclude certain items which are detailed and reconciled to the most comparable GAAP-reported measures in the attached Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures.
Jose Mas, MasTec's Chief Executive Officer, commented "Our first quarter results significantly exceeded our expectations, and I expect 2024 to begin the validation of our investment and diversification strategy over the last few years. I believe that the investments we have made in broadening our service line offerings have placed us at the forefront of the country's future infrastructure needs. The expected power demand growth will have a significant impact on our Power Delivery, Clean Energy and Infrastructure, and Oil and Gas segments; coupled with the increasing demand for data capacity and speed impacting Communications, position all of our segments for growth."
Paul DiMarco, MasTec's Executive Vice President and Chief Financial Officer, noted, "We are pleased to have exceeded our first quarter earnings guidance in each segment and reduced net debt leverage further than expected to 2.7x. We look forward to building on this momentum in subsequent quarters as we focus on executing for our clients and capitalizing on the numerous opportunities afforded by our end markets."
Based on the information available today, the Company is providing second quarter and updating full year 2024 guidance. The Company currently expects full year 2024 revenue of approximately $12.55 billion. Full year 2024 GAAP net income is expected to approximate $121 million, representing 1.0% of revenue, with GAAP diluted earnings per share expected to be $1.23. Full year 2024 adjusted EBITDA is expected to be $975 million, representing 7.8% of revenue, with adjusted diluted earnings per share expected to be $2.95.
For the second quarter of 2024, the Company expects revenue of approximately $3.1 billion. Second quarter 2024 GAAP net income is expected to approximate $40 million, representing 1.3% of revenue, with GAAP diluted earnings per share expected to be $0.43. Second quarter 2024 adjusted EBITDA is expected to approximate $260 million, representing 8.4% of revenue, with adjusted diluted earnings per share expected to be $0.88.
Management will hold a conference call to discuss these results on Friday, May 3, 2024 at 9:00 a.m. Eastern Time. The call-in number for the conference call is (856) 344-9221 or (888) 224-1005 with a pass code of 2706030. Additionally, the call will be broadcast live over the Internet and can be accessed and replayed for 60 days through the Investors section of the Company's website at www.mastec.com.
The following tables set forth the financial results for the periods ended March 31, 2024 and 2023:
Consolidated Statements of Operations | ||||
(unaudited - in thousands, except per share information) | ||||
For the Three Months Ended | ||||
2024 | 2023 | |||
Revenue | $ 2,686,849 | $ 2,584,659 | ||
Costs of revenue, excluding depreciation and amortization | 2,379,672 | 2,359,494 | ||
Depreciation | 107,435 | 107,247 | ||
Amortization of intangible assets | 33,691 | 41,944 | ||
General and administrative expenses | 165,536 | 163,914 | ||
Interest expense, net | 52,059 | 52,693 | ||
Equity in earnings of unconsolidated affiliates, net | (9,219) | (9,152) | ||
Other expense (income), net | 3,213 | (6,201) | ||
Loss before income taxes | $ (45,538) | $ (125,280) | ||
Benefit from income taxes | 11,079 | 44,734 | ||
Net loss | $ (34,459) | $ (80,546) | ||
Net income (loss) attributable to non-controlling interests | 6,721 | (6) | ||
Net loss attributable to MasTec, Inc. | $ (41,180) | $ (80,540) | ||
Loss per share: | ||||
Basic and diluted loss per share | $ (0.53) | $ (1.05) | ||
Basic and diluted weighted average common shares outstanding | 77,942 | 76,984 | ||
Consolidated Balance Sheets | |||
(unaudited - in thousands) | |||
March 31, | December 31, | ||
Assets | |||
Current assets | $ 3,445,470 | $ 3,974,253 | |
Property and equipment, net | 1,572,766 | 1,651,462 | |
Operating lease right-of-use assets | 424,575 | 418,685 | |
Goodwill, net | 2,126,041 | 2,126,366 | |
Other intangible assets, net | 751,008 | 784,260 | |
Other long-term assets | 425,493 | 418,485 | |
Total assets | $ 8,745,353 | $ 9,373,511 | |
Liabilities and Equity | |||
Current liabilities | $ 2,633,371 | $ 2,837,219 | |
Long-term debt, including finance leases | 2,537,091 | 2,888,058 | |
Long-term operating lease liabilities | 291,707 | 292,873 | |
Deferred income taxes | 347,424 | 390,399 | |
Other long-term liabilities | 245,736 | 243,701 | |
Total equity | 2,690,024 | 2,721,261 | |
Total liabilities and equity | $ 8,745,353 | $ 9,373,511 | |
Consolidated Statements of Cash Flows | |||
(unaudited - in thousands) | |||
For the Three Months Ended | |||
2024 | 2023 | ||
Net cash provided by (used in) operating activities | $ 107,750 | $ (86,371) | |
Net cash used in investing activities | (13,031) | (89,486) | |
Net cash used in financing activities | (374,822) | (53,442) | |
Effect of currency translation on cash | (132) | 267 | |
Net decrease in cash and cash equivalents | $ (280,235) | $ (229,032) | |
Cash and cash equivalents - beginning of period | $ 529,561 | $ 370,592 | |
Cash and cash equivalents - end of period | $ 249,326 | $ 141,560 | |
Backlog by Reportable Segment (unaudited - in millions) | March 31, | December 31, | March 31, | ||
Communications | $ 5,797 | $ 5,627 | $ 5,602 | ||
Clean Energy and Infrastructure | 3,504 | 3,115 | 3,546 | ||
Power Delivery | 2,479 | 2,440 | 2,731 | ||
Oil and Gas | 1,057 | 1,225 | 2,013 | ||
Other | — | — | — | ||
Estimated 18-month backlog | $ 12,837 | $ 12,407 | $ 13,892 |
Backlog is a common measurement used in our industry. Our methodology for determining backlog may not, however, be comparable to the methodologies used by others. Estimated backlog represents the amount of revenue we expect to realize over the next 18 months from future work on uncompleted construction contracts, including new contracts under which work has not begun, as well as revenue from change orders and renewal options. Our estimated backlog also includes amounts under master service and other service agreements and our proportionate share of estimated revenue from proportionately consolidated non-controlled contractual joint ventures. Estimated backlog for work under master service and other service agreements is determined based on historical trends, anticipated seasonal impacts, experience from similar projects and estimates of customer demand based on communications with our customers.
Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures | ||||
(unaudited - in millions, except for percentages and per share information) | ||||
For the Three Months Ended | ||||
Segment Information | 2024 | 2023 | ||
Revenue by Reportable Segment | ||||
Communications | $ 732.9 | $ 806.6 | ||
Clean Energy and Infrastructure | 753.5 | 824.9 | ||
Power Delivery | 571.0 | 709.4 | ||
Oil and Gas | 633.8 | 256.5 | ||
Other | — | — | ||
Eliminations | (4.4) | (12.7) | ||
Consolidated revenue | $ 2,686.8 | $ 2,584.7 | ||
For the Three Months Ended | ||||
2024 | 2023 | |||
Adjusted EBITDA by Segment | ||||
EBITDA | $ 147.6 | $ 76.6 | ||
Non-cash stock-based compensation expense (a) | 9.7 | 8.5 | ||
Acquisition and integration costs (b) | — | 17.1 | ||
Losses on fair value of investment (a) | — | 0.2 | ||
Adjusted EBITDA | $ 157.3 | $ 102.5 | ||
Segment: | ||||
Communications | $ 48.8 | $ 61.7 | ||
Clean Energy and Infrastructure | 20.4 | 10.5 | ||
Power Delivery | 27.4 | 49.1 | ||
Oil and Gas | 92.8 | 14.5 | ||
Other | 7.0 | 7.1 | ||
Segment Total | $ 196.4 | $ 142.9 | ||
Corporate | (39.1) | (40.4) | ||
Adjusted EBITDA | $ 157.3 | $ 102.5 | ||
(a) | Non-cash stock-based compensation expense and losses on the fair value of an investment are included within Corporate EBITDA. |
(b) | For the three month period ended March 31, 2023, Communications, Clean Energy and Infrastructure and Power Delivery EBITDA included $8.9 million, $5.2 million and $1.7 million, respectively, of acquisition and integration costs related to certain acquisitions, and Corporate EBITDA included $1.3 million of such costs. These acquisition and integration activities were completed in the fourth quarter of 2023. |
Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures | ||||
(unaudited - in millions, except for percentages and per share information) | ||||
For the Three Months Ended | ||||
2024 | 2023 | |||
Adjusted EBITDA Margin by Segment | ||||
EBITDA Margin | 5.5 % | 3.0 % | ||
Non-cash stock-based compensation expense (a) | 0.4 % | 0.3 % | ||
Acquisition and integration costs (b) | — % | 0.7 % | ||
Losses on fair value of investment (a) | — % | 0.0 % | ||
Adjusted EBITDA margin | 5.9 % | 4.0 % | ||
Segment: | ||||
Communications | 6.7 % | 7.7 % | ||
Clean Energy and Infrastructure | 2.7 % | 1.3 % | ||
Power Delivery | 4.8 % | 6.9 % | ||
Oil and Gas | 14.6 % | 5.7 % | ||
Other | NM | NM | ||
Segment Total | 7.3 % | 5.5 % | ||
Corporate | — | — | ||
Adjusted EBITDA margin | 5.9 % | 4.0 % | ||
NM - Percentage is not meaningful | |
(a) | Non-cash stock-based compensation expense and losses on the fair value of an investment are included within Corporate EBITDA. |
(b) | For the three month period ended March 31, 2023, Communications, Clean Energy and Infrastructure and Power Delivery EBITDA included $8.9 million, $5.2 million and $1.7 million, respectively, of acquisition and integration costs related to certain acquisitions, and Corporate EBITDA included $1.3 million of such costs. These acquisition and integration activities were completed in the fourth quarter of 2023. |
Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures | ||||
(unaudited - in millions, except for percentages and per share information) | ||||
For the Three Months Ended | ||||
2024 | 2023 | |||
EBITDA and Adjusted EBITDA Reconciliation | ||||
Net loss | $ (34.5) | $ (80.5) | ||
Interest expense, net | 52.1 | 52.7 | ||
Benefit from income taxes | (11.1) | (44.7) | ||
Depreciation | 107.4 | 107.2 | ||
Amortization of intangible assets | 33.7 | 41.9 | ||
EBITDA | $ 147.6 | $ 76.6 | ||
Non-cash stock-based compensation expense | 9.7 | 8.5 | ||
Acquisition and integration costs | — | |||
