Mastec (MTZ) has reported 638.74 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $56.28 million, or $0.69 a share in the quarter, compared with $7.62 million, or $0.09 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $66.30 million, or $0.81 a share compared with $20.40 million or $0.26 a share, a year ago.
Revenue during the quarter surged 42.77 percent to $1,586.18 million from $1,111.01 million in the previous year period. Gross margin for the quarter expanded 124 basis points over the previous year period to 13.69 percent. Total expenses were 93.22 percent of quarterly revenues, down from 97.09 percent for the same period last year. This has led to an improvement of 387 basis points in operating margin to 6.78 percent.
Operating income for the quarter was $107.48 million, compared with $32.30 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $164.80 million compared with $91.10 million in the prior year period. At the same time, adjusted EBITDA margin improved 219 basis points in the quarter to 10.39 percent from 8.20 percent in the last year period.
Jose R. Mas, MasTec’s chief executive officer, commented, "Our third quarter results significantly exceeded our expectations, primarily due to strength in our Oil & Gas segment. We continue to have clear visibility for significant new project opportunities in the Oil & Gas segment for 2017 and beyond, and we expect to end 2016 with record Oil & Gas segment backlog."
For the fourth-quarter, Mastec expects revenue to be $1,300 million. It forecasts net income to be $40 million. The company projects adjusted net income to be $132 million. The company projects adjusted basic earnings per share to be $0.54. It projects diluted earnings per share to be $0.48.
For fiscal year 2016, Mastec expects revenue to be $5,100 million. It forecasts net income to be $118 million. The company projects adjusted net income to be $455 million, the company projects adjusted basic earnings per share to be $1.73. It projects diluted earnings per share to be $1.44.
Operating cash flow drops significantlyMastec has generated cash of $127.14 million from operating activities during the nine month period, down 51.21 percent or $133.46 million, when compared with the last year period. The company has spent $94.06 million cash to meet investing activities during the nine month period as against cash outgo of $170.45 million in the last year period.
The company has spent $27.63 million cash to carry out financing activities during the nine month period as against cash outgo of $107.16 million in the last year period.
Working capital increases
Mastec has recorded an increase in the working capital over the last year. It stood at $480.06 million as at Sep. 30, 2016, up 6.47 percent or $29.16 million from $450.90 million on Sep. 30, 2015. Current ratio was at 1.51 as on Sep. 30, 2016, down from 1.57 on Sep. 30, 2015.
Days sales outstanding went down to 33 days for the quarter compared with 89 days for the same period last year.
Debt comes downMastec has recorded a decline in total debt over the last one year. It stood at $950.64 million as on Sep. 30, 2016, down 19.26 percent or $226.77 million from $1,177.41 million on Sep. 30, 2015. Total debt was 29.58 percent of total assets as on Sep. 30, 2016, compared with 36.28 percent on Sep. 30, 2015. Debt to equity ratio was at 0.92 as on Sep. 30, 2016, down from 1.15 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
