Attached files
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| 8-K - 8-K - MASTEC INC | d368580d8k.htm |
Exhibit 99.1
MasTec, Inc.
Unaudited Pro Forma Condensed Consolidated Financial Statements
On May 24, 2012, pursuant to an option agreement between Red Ventures, LLC (“Red Ventures”) and MasTec North America, Inc. (“MasTec NA”), a wholly owned subsidiary of MasTec, Inc. (the “Company”), Red Ventures exercised its option to purchase DirectStar TV, LLC and its subsidiaries (collectively, the “DirectStar Business”), and entered into a purchase agreement with MasTec NA, DirectStar and the other parties thereto, pursuant to which Red Ventures agreed to purchase, and MasTec NA agreed to sell, the DirectStar Business for a purchase price, payable in cash, equal to approximately $105.6 million, subject to certain adjustments. The parties consummated the transaction on June 15, 2012.
The following unaudited pro forma condensed consolidated financial statements have been derived from the historical consolidated financial statements of the Company and adjusted to reflect the sale of the DirectStar Business. The unaudited pro forma condensed consolidated balance sheet has been prepared as if the sale had occurred on March 31, 2012, and the unaudited pro forma condensed consolidated statements of operations give effect to the sale as if it had occurred on January 1, 2011. The pro forma adjustments include assumptions that management believes are reasonable.
These unaudited pro forma condensed consolidated financial statements are presented for illustrative purposes only and are not necessarily indicative of the Company’s operating results or financial position that would have been achieved had the sale of the DirectStar Business been completed as of the dates indicated, nor are such financial statements necessarily indicative of future results. These unaudited pro forma condensed consolidated financial statements and the accompanying unaudited notes should be read together with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2012.
MASTEC, INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
AS OF MARCH 31, 2012
(in thousands)
| Historical MasTec, Inc. |
Disposition (a) |
Pro Forma Adjustments |
Pro Forma | |||||||||||||||||
| Assets |
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| Current assets: |
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| Cash and cash equivalents |
$ | 20,131 | $ | (3,089 | ) | $ | 102,976 | (c | ) | $ | 120,018 | |||||||||
| Accounts receivable, net of allowance |
667,064 | (7,939 | ) | — | 659,125 | |||||||||||||||
| Inventories |
100,827 | — | — | 100,827 | ||||||||||||||||
| Other current assets |
35,706 | (535 | ) | 129 | (d | ) | 35,300 | |||||||||||||
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| Total current assets |
$ | 823,728 | $ | (11,563 | ) | $ | 103,105 | $ | 915,270 | |||||||||||
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| Property and equipment, net |
264,968 | (1,263 | ) | — | 263,705 | |||||||||||||||
| Goodwill and other intangible assets, net |
925,693 | (103,804 | ) | — | 821,889 | |||||||||||||||
| Other assets |
55,903 | — | — | 55,903 | ||||||||||||||||
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| Total assets |
$ | 2,070,292 | $ | (116,630 | ) | $ | 103,105 | $ | 2,056,767 | |||||||||||
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| Liabilities and Shareholders’ Equity |
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| Current liabilities: |
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| Current maturities of long-term debt |
$ | 34,440 | $ | — | — | $ | 34,440 | |||||||||||||
| Accounts payable and other accrued expenses |
400,071 | (10,438 | ) | 9,145 | (e | ) | 398,778 | |||||||||||||
| Acquisition-related contingent consideration, current |
17,774 | — | (2,658 | ) | (h | ) | 15,116 | |||||||||||||
| Billings in excess of costs and earnings |
95,407 | — | — | 95,407 | ||||||||||||||||
| Other current liabilities |
30,899 | (5,350 | ) | — | 25,549 | |||||||||||||||
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| Total current liabilities |
$ | 578,591 | $ | (15,788 | ) | $ | 6,487 | $ | 569,290 | |||||||||||
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| Long-term debt |
426,838 | — | — | 426,838 | ||||||||||||||||
| Other liabilities |
235,810 | — | (5,705 | ) | (d | ) | 230,105 | |||||||||||||
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| Total liabilities |
$ | 1,241,239 | $ | (15,788 | ) | $ | 782 | $ | 1,226,233 | |||||||||||
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| Commitments and contingencies |
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| Shareholders’ equity: |
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| Preferred stock |
$ | — | $ | — | $ | — | $ | — | ||||||||||||
| Common stock |
8,526 | — | — | 8,526 | ||||||||||||||||
| Capital surplus |
794,393 | — | — | 794,393 | ||||||||||||||||
| Accumulated surplus |
107,661 | (100,842 | ) | 102,323 | (f | ) | 109,142 | |||||||||||||
| Accumulated other comprehensive loss |
(6,577 | ) | — | — | (6,577 | ) | ||||||||||||||
| Treasury stock, at cost |
(75,000 | ) | — | — | (75,000 | ) | ||||||||||||||
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| Total MasTec, Inc. shareholders’ equity |
829,003 | (100,842 | ) | 102,323 | 830,484 | |||||||||||||||
| Non-controlling interests |
50 | — | — | 50 | ||||||||||||||||
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| Total shareholders’ equity |
$ | 829,053 | $ | (100,842 | ) | $ | 102,323 | $ | 830,534 | |||||||||||
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| Total liabilities and shareholders’ equity |
$ | 2,070,292 | $ | (116,630 | ) | $ | 103,105 | $ | 2,056,767 | |||||||||||
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See accompanying notes to unaudited pro forma condensed consolidated financial statements
MASTEC, INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2012
(in thousands, except per share amounts)
| Historical MasTec, Inc. |
Disposition (b) | Pro Forma Adjustments |
Pro Forma | |||||||||||||||||
| Revenue |
$ | 778,476 | $ | (34,855 | ) | $ | — | $ | 743,621 | |||||||||||
| Costs of revenue, excluding depreciation and amortization |
684,657 | (27,326 | ) | — | 657,331 | |||||||||||||||
| Depreciation and amortization |
20,954 | (79 | ) | — | 20,875 | |||||||||||||||
| General and administrative expenses |
40,809 | (1,955 | ) | 454 | (g | ) | 39,308 | |||||||||||||
| Interest expense, net |
8,992 | — | — | 8,992 | ||||||||||||||||
| Other income, net |
(454 | ) | — | — | (454 | ) | ||||||||||||||
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| Income before provision for income taxes |
$ | 23,518 | $ | (5,495 | ) | $ | (454 | ) | $ | 17,569 | ||||||||||
| Provision for income taxes |
(9,348 | ) | 2,123 | 176 | (7,049 | ) | ||||||||||||||
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| Net income |
$ | 14,170 | $ | (3,372 | ) | $ | (278 | ) | $ | 10,520 | ||||||||||
| Net loss attributable to non-controlling interests |
(2 | ) | — | — | (2 | ) | ||||||||||||||
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| Net income attributable to MasTec, Inc. |
$ | 14,172 | $ | (3,372 | ) | $ | (278 | ) | $ | 10,522 | ||||||||||
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| Earnings per share: |
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| Basic earnings per share |
$ | 0.18 | $ | 0.13 | ||||||||||||||||
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| Basic weighted average common shares outstanding |
80,615 | 80,615 | ||||||||||||||||||
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| Diluted earnings per share |
$ | 0.17 | $ | 0.13 | ||||||||||||||||
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| Diluted weighted average common shares outstanding |
83,906 | 83,906 | ||||||||||||||||||
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See accompanying notes to unaudited pro forma condensed consolidated financial statements
MASTEC, INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2011
(in thousands, except per share amounts)
| Historical MasTec, Inc. |
Disposition (b) | Pro Forma Adjustments |
Pro Forma | |||||||||||||||||
| Revenue |
$ | 3,008,977 | $ | (148,476 | ) | $ | — | $ | 2,860,501 | |||||||||||
| Costs of revenue, excluding depreciation and amortization |
2,606,091 | (115,164 | ) | — | 2,490,927 | |||||||||||||||
| Depreciation and amortization |
75,228 | (325 | ) | — | 74,903 | |||||||||||||||
| General and administrative expenses |
148,432 | (10,838 | ) | 110 | (g | ) | 137,704 | |||||||||||||
| Interest expense, net |
34,423 | 4 | — | 34,427 | ||||||||||||||||
| Gain on remeasurement of equity interest in acquiree |
(29,041 | ) | — | — | (29,041 | ) | ||||||||||||||
| Other income, net |
(183 | ) | — | — | (183 | ) | ||||||||||||||
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| Income before provision for income taxes |
$ | 174,027 | $ | (22,153 | ) | $ | (110 | ) | $ | 151,764 | ||||||||||
| Provision for income taxes |
(68,055 | ) | 8,441 | 42 | (59,572 | ) | ||||||||||||||
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| Net income |
$ | 105,972 | $ | (13,712 | ) | $ | (68 | ) | $ | 92,192 | ||||||||||
| Net loss attributable to non-controlling interests |
(29 | ) | — | — | (29 | ) | ||||||||||||||
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| Net income attributable to MasTec, Inc. |
$ | 106,001 | $ | (13,712 | ) | $ | (68 | ) | $ | 92,221 | ||||||||||
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| Earnings per share: |
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| Basic earnings per share |
$ | 1.29 | $ | 1.12 | ||||||||||||||||
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| Basic weighted average common shares outstanding |
82,182 | 82,182 | ||||||||||||||||||
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| Diluted earnings per share |
$ | 1.23 | $ | 1.07 | ||||||||||||||||
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| Diluted weighted average common shares outstanding |
86,718 | 86,718 | ||||||||||||||||||
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See accompanying notes to unaudited pro forma condensed consolidated financial statements
MasTec, Inc.
Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements
| (a) | Reflects the pro forma elimination of the assets, liabilities and equity associated with the DirectStar Business, which are included in the Company’s historical condensed consolidated balance sheet. |
| (b) | Reflects the pro forma elimination of the operating results of the DirectStar Business, which are included in the Company’s historical consolidated statements of operations. |
| (c) | Represents gross proceeds from the sale of the DirectStar Business, net of accrued earnout liabilities, further discussed at (h) below. |
| (d) | Represents adjustments to tax balances to reflect the reversal of existing deferred tax liabilities associated with the DirectStar Business. |
| (e) | Represents estimated current taxes payable on the sale of the DirectStar Business calculated at statutory tax rates. |
| (f) | Represents gross proceeds of approximately $105.6 million, net of estimated current taxes payable and the reversal of deferred tax liabilities associated with the DirectStar Business. |
| (g) | Represents the add back of certain administrative costs previously allocated to the DirectStar Business, which would otherwise have been included in the Company’s historical consolidated statements of operations. |
| (h) | Represents accrued earnout liabilities associated with the DirectStar Business, which are included in the Company’s historical condensed consolidated balance sheet. |