MasTec, Inc. (MTZ)

MTZ 
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MasTec, Inc. (MTZ)

February 20, 2013 9:45 am ET

Executives

Jose Ramon Mas - Chief Executive Officer and Director

C. Robert Campbell - Chief Financial Officer, Principal Accounting Officer and Executive Vice President

Analysts

Andy Kaplowitz - Barclays Capital, Research Division

Seth Smith - Gradient Analytics, Inc.

Presentation

Andy Kaplowitz - Barclays Capital, Research Division

Again, for those of you who don't know me, I'm Andy Kaplowitz. I'm the engineering and construction and machinery analyst. We're very excited to have MasTec with us here today. I've seen this company sort of grow into the great company that it is today. Jose Mas is with us. He is the CEO, son of the founder, and he has done a tremendous amount of work on this company and we're very happy to have him with us. Bob Campbell, the CFO; and Marc Lewis is the VP of Investor Relations. You guys kind of know the drill now around these automatic response questions. What I'm going to do is I'm going to ask the first 2 questions just to kind of get a view of sentiment in the room. Then we're going to move into some of the questions. Again, it helps if you guys participate with me and ask questions as well. So let's start with question number one. Do you currently own the stock? One, yes, you're overweight; two, yes, you're equal weight; or three, yes, we're underweight; or fourth, flat out, no. Go ahead.

[Voting]

Andy Kaplowitz - Barclays Capital, Research Division

A lot of people have been convinced today, Jose, that's good. That's very good.

Jose Ramon Mas

I feel like we're on Jeopardy.

Andy Kaplowitz - Barclays Capital, Research Division

So let's do the second question if we could. What is your general bias towards the stock right now? One, positive; two, negative; or three, neutral.

[Voting]

Question-and-Answer Session

Andy Kaplowitz - Barclays Capital, Research Division

Okay. So a lot of neutral people. It's good for this presentation format because we can -- you can convince some people today. So...

Jose Ramon Mas

I want to meet the negative ones.

Andy Kaplowitz - Barclays Capital, Research Division

So, Jose, one of the things that I really want to ask you, is when I first started covering the company, the company was still very levered to DIRECTV, more communications. And you had a vision of first sort of growing the company and getting into high-growth areas. And also really to get EBITDA margins up. I think those were the 2 goals that you really had. And it seems like generally, you've achieved those goals. There's been some bumps along the way but generally, you've achieved those goals. So now as we look out now over the next 3 to 5 years, what's the new vision for the company, basically?

Jose Ramon Mas

So just taking a step back and I don't think people realize because we've had a lot of growth, we've done very well as a company, we've gone from just under $1 billion in sales to $3.6 billion, $3.7 billion from $50 million in EBITDA, to $325 million, which is the current guidance for '12. We did that from ‘07 to ‘12. And between 2007 and 2012, the markets that we served were just as negatively impacted as the rest of the economy, and I think people don't give us credit for that. We had a great run, but we did it in a market that was choppy. And the market that was choppy over the last few years is really improving. The end -- trends in our end markets are getting a lot better and we’re really had a very early cycle in most of our businesses where we're going to see a lot of growth, a lot of improvement in pricing, a lot of improvement in trends, which I think is going to bode really well for our company for a long time. There's no question that we've made some very good decisions as to the end markets that we want to participate in, and I think, especially when you look at what's happening with the power cycle and with natural gas and with our gas and oil pipeline sector, I think we've got so much room. I think there's so many parts of that business that we're not touching today. I think there's -- I think you're going to see us expand our service offering within our different market sectors to become more of an end-to-end player across all of the end markets that we serve, which I think is going to give us a lot of opportunities. So for us as we talk about the next few years, it's not about the markets that we serve. The markets that we serve are going to be great and those that participate in these markets, all the companies that participate in these markets are going to do very well. For us, it's about execution. We're going to have plenty of opportunities for growth. It's going to be about our ability to execute, to deliver higher margins, which I think we've done a good job at but to your point, we haven't done a great job at. So we've got to get better there and I think we will.

Andy Kaplowitz - Barclays Capital, Research Division

To your point, I mean you've transformed the company. As of gone through, what have you really learned? What have been some of the lessons that you learned over the last few years that will help you as you go over the next 5 years?

Read the rest of this transcript for free on seekingalpha.com