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MasTec Inc. Reports Operating Results (10-Q)

August 04, 2010 | About:
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10qk

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MasTec Inc. (MTZ) filed Quarterly Report for the period ended 2010-06-30.

Mastec Inc. has a market cap of $847.2 million; its shares were traded at around $11.14 with a P/E ratio of 13.2 and P/S ratio of 0.5. Mastec Inc. had an annual average earning growth of 39.3% over the past 5 years.MTZ is in the portfolios of Chuck Royce of Royce& Associates, Paul Tudor Jones of The Tudor Group, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors.

Highlight of Business Operations:

Revenue. Our revenue was $495.1 million for the three months ended June 30, 2010, compared to $387.9 million for the same period in 2009, representing an increase of $107.2 million, or 27.6%. Of the total increase, approximately $64.5 million resulted from new business activities, primarily acquisitions. The remaining increase is attributable to growth in our organic businesses, primarily our renewables and wireless businesses. Despite the increase in year over year revenues, some of our businesses have been negatively impacted as a result of the continued slow pace of growth in the U.S. economy, which has led to increased competitive and pricing pressures as well as slower developing business. Key customers driving growth in the second quarter of 2010 include AT&T, Talisman Energy, Spectra Energy and Edison Mission Energy.

Depreciation and amortization. Depreciation and amortization was $14.2 million for the three months ended June 30, 2010, compared to $10.7 million for the same period in 2009, representing an increase of $3.5 million, or 32.7%. The increase was primarily driven by recent acquisitions, which resulted in the addition of $3.3 million in depreciation and $1.3 million in amortization, partially offset by a decrease in depreciation on past investments in information technology.

Interest expense, net. Interest expense, net of interest income was $7.3 million, or 1.5% of revenue, for the three months ended June 30, 2010, compared to $5.8 million, or 1.5% of revenue, for the same period in 2009, representing an increase of approximately $1.5 million. This increase resulted from higher average debt balances due to $215 million in new senior convertible notes issued in June and November 2009, respectively. The increase in interest expense was partially offset by the repayment of the $55 million 8% convertible notes in June 2009. We expect interest expense to increase in 2010 as compared with 2009 due to the full year impact of the senior convertible notes issued in 2009.

Other expense (income), net. Other expense, net, was $0.6 million for three months ended June 30, 2010 compared to other income, net, of $0.7 million for the three months ended June 30, 2009. The reduction in other income of $1.3 million as compared with the same period in the prior year is primarily attributable to $0.4 million of credit losses on our structured finance auction rate securities, $0.3 million of lease termination costs and lower gains on, and fewer sales of, assets as compared with the same period in 2009.

Revenue. Our revenue was $945.3 million for the six months ended June 30, 2010, compared to $730.0 million for the same period in 2009, representing an increase of $215.3 million, or 29.5%. Of the total increase, approximately $158.6 million resulted from new business activities, primarily acquisitions. The remaining increase is attributable to growth in our organic businesses, primarily our renewables and wireless businesses. Despite the increase in year over year revenues, some of our businesses have been negatively impacted as a result of the continued slow pace of growth in the U.S. economy, which has led to increased competitive and pricing pressures as well as slower developing business. In addition, the six months ended June 30, 2010 were impacted by seasonality due to changes in business mix, combined with unfavorable weather conditions, as compared with the same period in 2009. Key customers driving growth in the first half of 2010 include Enbridge, AT&T, Edison Mission Energy, Spectra Energy and Great River Energy.

Depreciation and amortization. Depreciation and amortization was $28.4 million for the six months ended June 30, 2010, compared to $21.4 million for the same period in 2009, representing an increase of $7.0 million, or 32.7%. The increase was primarily driven by recent acquisitions, which resulted in the addition of $6.5 million in depreciation and $2.6 million in amortization, partially offset by a decrease in depreciation on past investments in information technology.

Read the The complete Report

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