) adjusted earnings increased 21% to 47 cents per share in the
second quarter of 2013 from 39 cents a share in the year-ago
quarter. The results were ahead of both the Zacks Consensus
Estimate of 43 cents as well as management's guidance of 42 cents
Including one time items, earnings grew 11% to 42 cents per share
from the prior-year quarter's earnings of 38 cents.
MasTec's net sales dropped 1% year on year to $978 million in the
quarter, but it exceeded the company guidance of $950 million and
also beat the Zacks Consensus Estimate of $965 million. Revenues
in the Electrical Transmission segment increased 33% year over
year, Communications revenues were up 15% and Oil and Gas sales
increased 13%. However, revenues at the Power Generation and
Industrial segment were affected by $135 million due to lower
wind farm construction work related to uncertainties over the
extension of wind-farm tax benefits that were not resolved until
the end of 2012.
Cost of sales went down 5% to $823 million in the reported
quarter. Gross profit improved 29% to $154 million from the
year-ago quarter. Gross margin expanded 370 basis points (bps)
year over year to 15.9% in the quarter.
General and administrative expenses increased 35% to $51.9
million in the quarter. Operating profit improved 15% to $69.5
million in the quarter from $60.2 million in the prior-year
quarter. Consequently, operating margin expanded 100 bps year
over year to 7.1%.
Adjusted EBITDA (Earnings before interest, tax, depreciation and
amortization) was $110 million in the reported quarter, a y-o-y
increase of 31%. Adjusted EBITDA margin expanded 280 basis points
to 11.2% from 8.4% in the year-ago quarter.
Cash and cash equivalents were $13.6 million as of Jun 30, 2013
compared with $16.8 million as of Jun 30, 2012. Cash flow from
operating activities was $14.6 million in the first half of 2013
compared with an outflow of $16.8 million in the prior-year
comparable period. Long-term debt amounted to $806 million as of
Jun 30, 2013, compared with $546 million as of Dec 31, 2012. The
debt-to-capitalization ratio expanded to 46.7% as of Jun 30, 2013
from 38.8% as of Dec 31, 2012.
Backlog was $4.1 billion at the end of the quarter, a 34%
increase from $3.1 billion at the end of the year-ago quarter.
The growth was led by the Oil and Gas and Electrical Transmission
For the full year 2013, MasTec expects revenues to be around
$4.15 billion and adjusted EBITDA of $448 million. MasTec now
expects adjusted earnings per share to be $1.88, representing an
annual increase of 23%. MasTec expects improved cash flow and a
reduction in net debt of $100 million or more over the remainder
of the year.
For the third-quarter of 2013, the company projected about $1.15
billion of revenues, continuing operations EBITDA is estimated to
be $135 million and diluted earnings per share from continuing
operations is expected to be around 60 cents.
Coral Gables, Fla.-based MasTec is a leading infrastructure
construction company operating mainly throughout North America
across a range of industries. Its activities include engineering,
building, installation, maintenance and upgrade of energy,
utility and communications infrastructure and industrial
MasTec has a Zacks Rank #3 (Hold).
Chicago Bridge & Iron Company N.V.
) reported second-quarter 2013 adjusted earnings of $1.04 per
share, in line with the Zacks Consensus Estimate, but up 38.6%
year over year on the back of strong project activities and
robust backlog during the quarter.
EMCOR Group Inc.
) second-quarter 2013 adjusted earnings dipped 4% to 48 cents
from 50 cents in the year-ago quarter. Adjusted earnings also
fell short of the Zacks Consensus Estimate of 53 cents.
Granite Construction Incorporated
) second quarter earnings increased 40% year on year to 7 cents a
share, but were way behind the Zacks Consensus Estimate of 32
CHICAGO BRIDGE (CBI): Free Stock Analysis
EMCOR GROUP INC (EME): Free Stock Analysis
GRANITE CONSTRU (GVA): Free Stock Analysis
MASTEC INC (MTZ): Free Stock Analysis Report
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