MasTec, Inc. Q1 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Overall Performance

  • Revenue: $1.417 billion, above prior guidance. Compared to Q1 2019, revenue was up from $1.4 billion.
  • Adjusted EBITDA: $118 million, exceeding expectations by $10 million.
  • Adjusted EPS: $0.60, above guidance by $0.12.
  • Operating Cash Flow: $203 million, a record and $250 million higher than Q1 2019.
  • Backlog: $8.3 billion, the highest in company history (vs. $7.7 billion at year-end 2019).

COVID-19 Impact

  • All segments classified as essential operations; work largely continued.
  • Primary issues: permitting delays, social distancing measures affecting productivity, and a handful of market shutdowns (e.g., San Francisco, Seattle, NYC).
  • MasTec maintained its workforce to avoid furloughs, causing some short-term underutilization.

Segment Highlights

Communications

  • Revenue: $644 million, up 5% YoY (from $613 million).
  • Adjusted EBITDA margin: 7.9%; margins improved ~50 bps YoY.
  • Wireline/wireless up 10%; installation services down 20% due to in-home access issues.
  • Backlog decline entirely related to a $350 million reduction in install‑to‑home business due to COVID re-assessment.
  • Full-year 2020 expectations: flat revenue vs. 2019 second half; ~100 bps margin improvement for the year.

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Operator: Welcome to the MasTec's First Quarter 2020 Earnings Conference Call, initially broadcast on May 1st, 2020. Let me remind participants that today's call is being recorded. At this time, I would like to turn the conference over to Marc Lewis, MasTec's Vice President of Investor Relations. Marc? Marc Lewis: Thanks, Ian, and good morning, everyone. Welcome to MasTec's first quarter call. The following statements made pursuant to the safe harbor for forward-looking statements described in the Private Securities Litigation Reform Act of 1995. In these communication, we may make certain statements that are forward-looking, such as statements regarding MasTec' future results, plans and anticipated trends in the industries where we operate. These forward-looking statements are the company's expectations on the day of initial broadcast of this conference call, and the company does not undertake to update these expectations based on subsequent events or knowledge. Various risks, uncertainties and assumptions are detailed in our press releases and filings with the SEC. Should one or more of these risks or uncertainties materialize or should any of our underlying assumptions prove incorrect, actual results may differ significantly from results expressed or implied in these communications. In today's remarks by management, we will be discussing adjusted financial metrics as discussed and reconciled in yesterday's press release and supporting schedules. In addition, we may use cer

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