MASTEC INC. is one of the largest providers of construction services to thetelecommunications industry in the United States. The Company's principalbusiness consists of the installation and maintenance of aerial underground and buried copper and fiber optic cable underground conduit manhole systems and relatessed construction for local telephone companies including Regional Bell Operating Companies such as BellSouth Telecommunications Inc. U.S. West Inc. and SBC Communications Inc. and non-Bell local telephone companies such as Sprint Corp. and GTE Corp. MasTec Inc. has a market cap of $1.03 billion; its shares were traded at around $13.62 with a P/E ratio of 13 and P/S ratio of 0.7. Highlight of Business Operations: Depreciation and amortization. Depreciation and amortization was $10.6 million for the three months ended March 31, 2009, compared to $5.0 million for the same period in 2008, representing an increase of $5.6 million or 112.0%. The increase was due primarily to three acquisitions which resulted in the addition of $66.9 million in fixed assets and the addition of $1.9 million in amortization of acquisition-related intangibles.
General and administrative expenses. General and administrative expenses were $23.3 million or 6.8% of revenue for the three months ended March 31, 2009, compared to $19.8 million or 7.6% of revenue for the same period in 2008, representing an increase of $3.5 million but a decrease as a percentage of revenue of 80 basis points. The increase was primarily due to a $4.3 million increase in labor cost, partially offset by a $1.6 million reduction in legal settlement expense. Although labor costs increased, the majority of other costs have remained flat resulting in declining general and administrative costs as a percentage of revenue.
As of March 31, 2009, we had $105.1 million in working capital, defined as current assets less current liabilities, compared to $105.3 million as of December 31, 2008. Cash and cash equivalents, including approximately $18.1 million of restricted cash, increased by $10.3 million from $47.3 million at December 31, 2008 to $57.6 million at March 31, 2009. Restricted cash related to collateral for certain letters of credit is invested in certificates of deposit with a maturity of 90 days.
Net cash provided by operating activities increased by $42.0 million to $49.3 million for the three months ended March 31, 2009 from $7.3 million for the three months ended March 31, 2008 as net income adjusted for non-cash items, such as higher depreciation and amortization, improved by $9.9 million and net collections of accounts receivable, unbilled revenue and retainage, net, increased by $77.3 million. These cash flows were partially offset by an increase of $37.4 million in payments to vendors and changes in other accrued liabilities, including payments of approximately $5.3 million related to the resolution of legacy legal litigation.
Net cash used in financing activities increased by $25.0 million to $25.9 million for the three months ended March 31, 2009 compared to $0.9 million net cash used in financing activities for the three months ended March 31, 2008. The increase in net cash used in financing activities was driven primarily by net repayments of borrowings under the Credit Facility of $22.5 million and repayments of other borrowings of $3.7 million .
In connection with the acquisition of Pumpco, we entered into an equipment term loan in the aggregate amount of $22.5 million at 7.05% interest, payable in 60 monthly installments, maturing in 2013. The proceeds from this equipment term loan were used to pay off $8.7 million of Pumpco indebtedness, with the remaining balance funding a portion of the acquisition purchase price. We also assumed approximately $9.5 million in notes payable for equipment and capital lease obligations. In connection with the acquisition of Nsoro, we assumed approximately $12 million in indebtedness, which was subsequently repaid. In connection with the acquisition of Wanzek, we entered into an 8% convertible note in the principal amount of $55 million due December 2013 with interest payments payable in April, August, and December of each year, commencing in April 2009 and also assumed approximately $15 million of Wanzeks debt. See Note 5 Acquisitions. There are no covenant requirements on this note.
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