Mastec, Inc. · NYSE:MTZ
Mastec — Q1 2023 Earnings Presentation
22 slides from Mastec's earnings presentation, May 5, 2023
Slide 1: MasTec First Quarter 2023 Earnings Call Presentation
MasTec First Quarter 2023 Earnings Call Presentation May 5, 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 & Q1 2023 Highlights ▪ CFO Financial Review & Outlook ▪ Q&A ▪ Closing Remarks 3
Slide 4: Q1 2023 Summary
Q1 2023 Summary • Record Q1 revenue increased Revenue 32% year-over-year Adjusted • Non-Oil & Gas revenue grew EBITDA1 34% 18 Month Adjusted Backlog2 $102.5M Diluted EPS1 • Total backlog of $13.9B Backlog represents record levels, up $13.9B ($0.54) $913M sequentially and 31% year over year Cash from
Slide 5: Segment Revenue Mix
Diversified Portfolio with Opportunity for Consistent Adjusted EBITDA Margin Expansion 20221 2023 E2 Near Term Potential O&G O&G Comm. O&G Comm. Segment Revenue Mix Comm. $2.0B $1.2B $1.5B $3.6B $4.0B CE&I $3.2B $2.6B ~$9.8B CE&I ~$15.5B $5.0B ~$13.1B CE&I $2.7B $3.0B $6.0B $3.5B PD PD PD Communicat
Slide 6: Expanded Scale & Capacity Adds Incremental Near-term Growth Potential
Expanded Scale & Capacity Adds Incremental Near-term Growth Potential Clean Energy & Communications Infrastructure Power Delivery Oil & Gas Total Near-term Potential ~$4.0B ~$6.0B ~$3.5B ~$2.0B ~$15.5B Revenue 5G and Small Cells, Shift toward Renewable Power Grid Investment to Pipelines for Cleaner
Slide 7: Q1 2023 Segment Results
Q1 2023 Segment Results Revenue1 ($M) Adj. EBITDA1,2 ($M) $3,000 $160 $2,585 $102 $140 $2,500 $99 $257 $15 $120 $23 $1,954 $2,000 $709 $100 $211 $49 $1,500 $80 $53 $650 $10 $825 $60 $1,000 $436 $11 $40 $62 $500 $807 $20 $41 $664 $- $- Q1 2022 Q1 2023 Q1 2022 Q1 2023 Communications Clean Energy Power
Slide 8: Q1 2023 Backlog
Q1 2023 Backlog1 18 Month Backlog ($B) • Total backlog of $13.9B represents record levels, up $16.0 Record $913M sequentially and 31% $13.9 Backlog year over year Levels $14.0 $13.0 $2.7 • Q1 sequential increases in each $12.0 $10.6 $2.7 segment and represented new Power Delivery record levels for b
Slide 9: Cash Flow Profile
Cash Flow Profile DSO1 Cash Flow from Operations ($M) 150 100 132 50 94 89 - 83 (50) (86) (100) Q1 2022 Q4 2022 Q1 2023 Q1 2022 Q1 2023 • Cash flow used by operations was $86M during Q1 2023, reflecting our GAAP net loss and higher than anticipated levels of working capital • DSO rose to 94 days, up
Slide 10: Leverage & Liquidity
Leverage & Liquidity • First quarter cash flow performance contributed to slight increase in leverage1 to 3.5x • Liquidity1 remains strong at ~$1B Leverage1 Liquidity1 ($M) 4.0x 1,400 3.5x 1,231 3.5x 3.3x 1,200 3.0x 994 991 1,000 2.5x 800 2.0x 1.8x 600 1.5x 400 1.0x 0.5x 200 0.0x - Q1 2022 Q4 2022 Q
Slide 11: 2023 Guidance Summary
2023 Guidance Summary1 $M, with exception of EPS Q2 Guidance Full Year Guidance Low High Revenue $3,000 $13,000 $13,200 Adjusted EBITDA1 $250 $1,100 $1,150 Adjusted Net Income 1 $67 $342 $380 Diluted EPS (GAAP) $0.24 $2.11 $2.55 Adjusted Diluted EPS1 $0.86 $4.35 $4.85 1 Guidance issued on May 4, 202
Slide 12: Revenue and Adjusted EBITDA Cadence
Revenue and Adjusted EBITDA Cadence Revenue $B 9.0 $7.4 - $7.6 8.0 7.0 0.9 $5.6 $5.5 6.0 1.6 0.6 0.7 5.0 $4.3 4.0 0.6 1.4 1.4 3.2 3.0 1.3 1.8 1.7 2.0 0.9 1.0 1.5 1.7 1.7 1.9 0.0 1H 22 1H 23 E 2H 22 2H 23 E Oil & Gas Power Delivery Clean Energy & Infrastructure Communications Consolidated Adjusted EB
Slide 13: 2023 Cash Flow and Leverage Projections
2023 Cash Flow and Leverage Projections • We continue to anticipate 2023 cash flow from operations will approximate $550M and expect year-end leverage1 will be in the low 2x range • Coming off the strategic investments we made to diversify our end markets, reducing our leverage is a priority • We re
Slide 14: Closing Remarks
Closing Remarks • We are thankful for the hard work and sacrifices made by our ~33,000 team members • MasTec’s strategic diversification efforts put us at the forefront of America’s energy transition and infrastructure development initiatives • Our current end markets provide significant, diversifie
Slide 15: Q&A
Q&A -MasTec ikvacructure that NeLirers
Slide 16: Appendix
Appendix
Slide 17: Full Year Non-GAAP Reconciliations
Full Year Non-GAAP Reconciliations (1)(2) Low High 3 3 EBITDA and Adjusted EBITDA Reconciliation ($Mn) 2022 % margin 2023 % margin 2023 % margin Net Income $ 34 0.3% $ 165 1.3% $ 200 1.5% Interest expense, net 112 1.1% 215 1.7% 215 1.6% Provision for income taxes 9 0.1% 54 0.4% 66 0.5% Depreciation
Slide 18: Quarterly Non-GAAP Reconciliations
Quarterly Non-GAAP Reconciliations (1)(2) EBITDA and Adjusted EBITDA Reconciliation ($Mn) Q1 2022 % margin Q1 2023 % margin Q2 2022 % margin Q2 2023 3 % margin Net Income $ (35) -1.8% $ (81) -3.1% $ 16 0.7% $ 19 0.6% Interest expense, net 16 0.8% 53 2.0% 19 0.8% 57 1.9% Provision for income taxes (1
Slide 19: 1st and 2nd Half Non-GAAP Reconciliations
1st and 2nd Half Non-GAAP Reconciliations (1)(2) Low High EBITDA and Adjusted EBITDA Reconciliation ($Mn) 1H 2022 % margin 1H 2023 E % margin 2H 2022 % margin 2H 2023 E % margin 2H 2023 E % margin Net Income $ (19) -0.4% $ (61) -1.1% $ 53 1.0% $ 227 3.1% $ 261 3.4% Interest expense, net 35 0.8% 109
Slide 20: 2022 Non-GAAP Reconciliations
2022 Non-GAAP Reconciliations A reconciliation of EBITDA and EBITDA margin to Adjusted EBITDA and Adjusted EBITDA margin by segment for the periods indicated is as follows: 2022 EBITDA $ 662.5 6.8% Non-cash stock-based compensation expense (a) 27.4 0.3% Acquisition and integration costs (b) 86.0 0.9
Slide 21: Q1 2023 Non-GAAP Reconciliations
Q1 2023 Non-GAAP Reconciliations For the Three Months Ended March 31, 2023 2022 Adjusted EBITDA by Segment EBITDA $ 76.6 $ 78.7 Non-cash stock-based compensation expense (a) 8.5 6.3 Acquisition and integration costs (b) 17.1 13.6 Losses on fair value of investment (a) 0.2 — Adjusted EBITDA $ 102.5 $
Slide 22: Miscellaneous Definitions
Miscellaneous Definitions 1 • 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