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MasTec Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: November 1, 2012 05:04PM

MasTec Inc. (MTZ) filed Quarterly Report for the period ended 2012-09-30. Mastec, Inc. has a market cap of $1.65 billion; its shares were traded at around $22.59 with a P/E ratio of 20.9 and P/S ratio of 0.6. Mastec, Inc. had an annual average earning growth of 41.1% over the past 5 years.



Highlight of Business Operations:

Third quarter 2012 income from continuing operations was $36.1 million, or $0.45 cents per diluted share. Third quarter 2012 income from continuing operations includes an after-tax effect of $5.8 million, or $0.07 per share, resulting from the legal settlement charge discussed above. Excluding this charge, third quarter income from continuing operations and diluted earnings per share were $41.9 million and $0.53 cents, respectively. As compared with our third quarter 2011 results, income from continuing operations and diluted earnings per share increased by approximately $11.1 million and $0.18 cents per share, or approximately 36% and 51%, respectively. See "Adjusted Income From Continuing Operations and Adjusted Income From Continuing Operations Per Diluted Share" below.

Revenue. Our revenue was $1.1 billion for the three months ended September 30, 2012, as compared with $816.2 million for the same period in 2011, representing an increase of approximately $251.1 million or 30.8%. Third quarter 2012 revenues were favorably affected by demand for our power generation and industrial, electrical transmission and oil and gas pipeline and facility services. Key customers driving growth during the second quarter of 2012 included Chesapeake Midstream Partners LP, Mid-American Energy and Energy Transfer Company. Revenue from power generation and industrial projects of $201.9 million increased by approximately $176.9 million for the three months ended September 30, 2012 as compared to the same period in the prior year. The growth in power generation and industrial project work has been driven largely by customers seeking to complete wind installation projects under the current federal production tax credit program, which requires that qualified facilities be placed in service by December 31, 2012. In addition, solar project activity increased versus the prior year. Third quarter 2012 oil and gas pipeline and facility project work benefited from approximately $72.3 million of incremental revenue from natural gas and petroleum pipeline infrastructure project activities.

Revenue. Our revenue was $2.8 billion for the nine months ended September 30, 2012, as compared with $2.1 billion for the same period in 2011, representing an increase of $694.7 million or 33.1%. Of this increase, $164.7 million, or approximately 23.7%, was attributable to businesses acquired in 2011. Organic revenues increased by $530.0 million, or 25.2%. Revenues for the nine months ended September 30, 2012 were favorably affected by demand for our power generation and industrial, oil and gas pipeline and facility, electrical transmission and install-to-the-home services. Key customers driving this growth included Mid-American Energy, Duke Energy and Chesapeake Midstream Partners LP. Revenue from power generation and industrial projects increased by $395.3 million to almost $500.9 million for the nine months ended September 30, 2012 as compared with 2011. The growth in power generation and industrial project work has been driven largely by customers seeking to complete wind installation projects under the current federal production tax credit program, which requires that qualified facilities be placed in service by December 31, 2012. In addition, solar project activity increased versus the prior year. Oil and gas pipeline and facility project work benefited from approximately $137.5 million of incremental revenue from natural gas and petroleum pipeline infrastructure project activities for the nine month period ended September 30, 2012 as compared with 2011. Acquisitions contributed approximately $46.2 million of oil and gas pipeline and facility revenues for the nine months ended September 30, 2012.

Depreciation and amortization. Depreciation and amortization was $65.1 million, or 2.3% of revenue, for the nine month period ended September 30, 2012, as compared with $52.8 million, or 2.5% of revenue, for the same period in 2011, representing an increase of approximately $12.3 million, or 23.3%. The increase was driven by $11.5 million of higher organic business depreciation expense, as well as $4.2 million of acquisition-related depreciation and amortization. The increase in organic business depreciation expense resulted from

Accounts receivable increased by $233.2 million during the nine month period ended September 30, 2012, representing a use of cash, as compared with an increase in accounts receivable of $227.0 million for the nine month period ended September 30, 2011. Accounts payable and accrued expenses increased by $176.3 million during the nine month period ended September 30, 2012, representing a source of cash, as compared with an increase of $93.5 million for the same period in the prior year, an improvement of $82.8 million. Billings in excess of costs and earnings decreased, representing a use of cash. This use in cash decreased from $61.9 million for the nine month period ended September 30, 2011 to $3.4 million for the nine month period ended September 30, 2012, an improvement of $58.5 million.

Read the The complete Report



Stocks Discussed: MTZ,
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