Mastec, Inc. · NYSE:MTZ
Mastec — Q3 2023 Earnings Presentation
19 slides from Mastec's earnings presentation, Nov 1, 2023
Slide 1: MasTec Third Quarter 2023 Earnings Call Presentation
MasTec Third Quarter 2023 Earnings Call Presentation November 1, 2023 NYSE: MTZ
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements include, but are not limited to, statements relating to expectations regarding the future financial and operational performance o
Slide 3: Participants and Agenda
Participants and Agenda José R. Mas Chief Executive Officer Paul A. DiMarco Chief Financial Officer J. Marc Lewis Vice-President, Investor Relations ▪ CEO Opening Remarks ▪ CFO Financial Review & Outlook ▪ Q&A ▪ Appendix 3
Slide 4: Q3 2023 Summary
Q3 2023 Summary • Record Q3 revenue increased 30% year- over-year, however, results were impacted Revenue by continued delays on certain project starts and customer's deferral of previously Adjusted planned activity EBITDA1 • Non-Oil & Gas revenue grew 21% year- 18 Month Adjusted over-year Backlog2
Slide 5: Q3 2023 Segment Results
Q3 2023 Segment Results Revenue1 ($M) Adj. EBITDA1,2 ($M) $271 $3,257 $246 $2,514 1 Consolidated totals also include results from the ‘Other’ segment, Corporate and eliminations. 2 See Appendix for reconciliations of Adjusted measures to GAAP measures. 5
Slide 6: Q3 2023 Backlog
Q3 2023 Backlog1 18 Month Backlog ($B) • Total backlog of $12.5B is up 11% on a year over year basis, further demonstrating the broad-based diversification of our end markets; down 7% sequentially due to timing of project awards and reduced expected near-term activity on MSA projects • Signed or rec
Slide 7: Cash Flow Profile
Cash Flow Profile DSO1 Cash Flow provided by Operations ($M) • Cash flow provided by operations was $294M during Q3 2023, reducing net debt by ~$213M to ~$3B. Cash flow was driven by improved working capital metrics, with DSO and DPO both improving and in line with normal levels • DSO improved seque
Slide 8: Leverage & Liquidity
Leverage & Liquidity • Leverage1 improved slightly from Q2 to 3.4x • Liquidity1 remained strong, improving to $1.16B • Leverage1 at year-end is expected to remain in the low 3x range but we remain committed to returning to sustained target of ~2.5x in 2024 Leverage1 Liquidity1 ($M) 1 Refer to append
Slide 9: 2023 Guidance Summary
2023 Guidance Summary1 ($M, with exception of EPS) Q4 Full Year Guidance Guidance Revenue $3,283 $12,000 Adjusted EBITDA1 $221 $850 Adjusted Net Income1 $35 $140 Diluted EPS (GAAP) ($0.17) ($0.83) Adjusted Diluted EPS1 $0.44 $1.75 1 Guidance issued on October 31, 2023. See Appendix for reconciliatio
Slide 10: Revenue and Adjusted EBITDA Cadence
Revenue and Adjusted EBITDA Cadence Revenue1 $B $6.5 $5.5 $5.5 $4.3 Adjusted EBITDA Margin2 % 1 Guidance as of October 31, 2023. 2 See Appendix for reconciliations of Adjusted measures to GAAP measures. 10
Slide 11: 2023 Cash Flow and Leverage Projections
2023 Cash Flow and Leverage Projections • We currently anticipate 2023 cash flow from operations will approximate $500M for the second half of 2023 and $400M for the full year • We expect year-end leverage1 will be in the low 3x range, but remain committed to returning to sustained target of ~2.5x i
Slide 12: Q&A
“MasTec \kvadtructinre that Delivers Q&A a
Slide 13: Appendix
Appendix j ~ “ MasTec \kraructive that Delivers
Slide 14: Full Year Non-GAAP Reconciliations
Full Year Non-GAAP Reconciliations1,2 For the Year Ended December Guidance for the Year Ended 31, 2022 December 31, 2023 Est.3 EBITDA and Adjusted EBITDA Margin Reconciliation $ (in millions) % margin $ (in millions) % margin Net income (loss) $ 33.9 0.3% $ (61) (0.5)% Interest expense, net 112.3 1.
Slide 15: Quarterly Non-GAAP Reconciliations
Quarterly Non-GAAP Reconciliations1,2 Q3 2022 Q3 2023 Q4 2022 Q4 2023 E3 EBITDA and Adjusted EBITDA Margin Reconciliation $ (in $ (in $ (in $ (in millions) % margin millions) % margin millions) % margin millions) % margin Net income (loss) $ 49.2 2.0% $ 15.3 0.5% $ 3.4 0.1% $ (13) (0.4)% Interest ex
Slide 16: 1st and 2nd Half Non-GAAP Reconciliations
1st and 2nd Half Non-GAAP Reconciliations1,2 EBITDA and Adjusted EBITDA Margin Reconciliation 1H 2022 1H 2023 2H 2022 2H 2023 E3 Net (loss) income $ (19) (0.4)% $ (64) (1.2)% $ 53 1.0% $ 3 0.0% Interest expense, net 35 0.8 % 112 2.1 % 77 1.4% 123 1.9% (Benefit from) provision for income taxes (11) (
Slide 17: 2022 Non-GAAP Reconciliations
2022 Non-GAAP Reconciliations1,2 A reconciliation of EBITDA and EBITDA margin to Adjusted EBITDA and Adjusted EBITDA margin by segment for the periods indicated is as follows (in millions): Adjusted EBITDA and Adjusted EBITDA Margin by Segment For the Year Ended December 31, 2022 EBITDA $ 662.5 6.8%
Slide 18: Q3 2023 Non-GAAP Reconciliations
Q3 2023 Non-GAAP Reconciliations1,2 A reconciliation of EBITDA and EBITDA margin to Adjusted EBITDA and Adjusted EBITDA margin by segment for the periods indicated is as follows (in millions): Adjusted EBITDA and Adjusted EBITDA Margin by Q3 2022 Q3 2023 Segment EBITDA $ 206.5 8.2% $ 242.7 7.5% Non-
Slide 19: Miscellaneous Definitions
Miscellaneous Definitions1 • Backlog - Backlog represents the amount of revenue we expect to realize over the next 18 months from future work on uncompleted construction contracts, including new contracts under which work has not begun, as well as revenue from change orders and renewal options. Our