Supplemental Guarantor Condensed Unaudited Consolidating Financial Information

The New Convertible Notes, Original Convertible Notes are, and, through March 29, 2013, the 7.625% Senior Notes were, fully and unconditionally guaranteed on an unsecured, unsubordinated, joint and several basis by certain of the Company's existing and future 100%-owned direct and indirect domestic subsidiaries that are each guarantors of the Company's Credit Facility or other outstanding indebtedness (the “Guarantor Subsidiaries”). The 4.875% Senior Notes are guaranteed on an unsecured unsubordinated, joint and several basis by the Company's 100%-owned domestic subsidiaries that guarantee the Credit Facility. Certain subsidiaries included in the Company's Guarantor Subsidiaries, which are minor individually and in the aggregate, do not guarantee the 4.875% Senior Notes. The Company's subsidiaries organized outside of the U.S. and certain domestic subsidiaries (collectively, the “Non-Guarantor Subsidiaries”) do not guarantee any of these notes. The subsidiary guarantees are subject to release in certain customary circumstances including upon the sale of a majority of the capital stock or substantially all of the assets of the subsidiary guarantor; if the guarantee under our Credit Facility and other indebtedness is released or discharged (other than due to payment under such guarantee); or when the requirements for legal defeasance are satisfied or the obligations are discharged in accordance with the related indentures.

The following supplemental financial information sets forth the condensed unaudited consolidating balance sheets and the condensed unaudited consolidating statements of operations and comprehensive income and cash flows for the parent company (MasTec, Inc.), the Guarantor Subsidiaries on a combined basis, the Non-Guarantor Subsidiaries on a combined basis and the eliminations necessary to arrive at the information for the Company as reported on a consolidated basis. Eliminations represent adjustments to eliminate investments in subsidiaries and intercompany balances and transactions between or among MasTec, Inc., the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries. Investments in subsidiaries are accounted for using the equity method for this presentation.

CONDENSED UNAUDITED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

For the Three Months Ended June 30, 2013 (in thousands)



	MasTec, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated MasTec, Inc.
Revenue	$	—		$	881,780		$	95,844		$	—		$	977,624
Costs of revenue, excluding depreciation and amortization	—			746,253			76,402			—			822,655
Depreciation and amortization	1			30,390			3,211			—			33,602
General and administrative expenses	655			44,300			6,945			—			51,900
Interest expense, net	—			11,612			226			—			11,838
Other expense (income), net	—			621			(299		)	—			322
(Loss) income from continuing operations before provision for income taxes	$	(656	)	$	48,604		$	9,359		$	—		$	57,307
Benefit from (provision for) income taxes	530			(17,829		)	(4,477		)	—			(21,776		)
(Loss) income from continuing operations before non-controlling interests	$	(126	)	$	30,775		$	4,882		$	—		$	35,531
Income (loss) from discontinued operations, net of tax	—			118			(602		)	—			(484		)
Equity in income from subsidiaries, net of tax	35,173			—			—			(35,173		)	—
Net income (loss)	$	35,047		$	30,893		$	4,280		$	(35,173	)	$	35,047
Net income attributable to non-controlling interests	—			106			—			—			106
Net income (loss) attributable to MasTec, Inc.	$	35,047		$	30,787		$	4,280		$	(35,173	)	$	34,941
Comprehensive income (loss)	$	35,047		$	30,205		$	(1,671	)	$	(35,173	)	$	28,408

CONDENSED UNAUDITED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

For the Three Months Ended June 30, 2012 (in thousands)



	MasTec, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated MasTec, Inc.
Revenue	$	—		$	944,529		$	44,345		$	—		$	988,874
Costs of revenue, excluding depreciation and amortization	—			831,595			36,909			—			868,504
Depreciation and amortization	—			21,188			575			—			21,763
General and administrative expenses	641			35,283			2,450			—			38,374
Interest expense (income), net	—			9,492			(5		)	—			9,487
Other (income) expense, net	—			(578		)	212			—			(366		)
(Loss) income from continuing operations before provision for income taxes	$	(641	)	$	47,549		$	4,204		$	—		$	51,112
Benefit from (provision for) income taxes	265			(19,032		)	(1,181		)	—			(19,948		)
(Loss) income from continuing operations before non-controlling interests	$	(376	)	$	28,517		$	3,023		$	—		$	31,164
Loss from discontinued operations, net of tax	—			(492		)	(583		)	—			(1,075		)
Equity in income from subsidiaries, net of tax	30,465			—			—			(30,465		)	—
Net income (loss)	$	30,089		$	28,025		$	2,440		$	(30,465	)	$	30,089
Net loss attributable to non-controlling interests	—			—			(3		)	—			(3		)
Net income (loss) attributable to MasTec, Inc.	$	30,089		$	28,025		$	2,443		$	(30,465	)	$	30,092
Comprehensive income (loss)	$	30,089		$	27,730		$	1,445		$	(30,465	)	$	28,799

CONDENSED UNAUDITED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

For the Six Months Ended June 30, 2013 (in thousands)



	MasTec, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated MasTec, Inc.
Revenue	$	—		$	1,736,304		$	159,968		$	—		$	1,896,272
Costs of revenue, excluding depreciation and amortization				1,482,054			132,100			—			1,614,154
Depreciation and amortization	1			61,520			3,834			—			65,355
General and administrative expenses	986			90,360			9,439			—			100,785
Interest expense, net	—			21,659			224			—			21,883
Loss on extinguishment of debt	—			5,624			—			—			5,624
Other income, net	—			(215		)	(289		)	—			(504		)
(Loss) income from continuing operations before provision for income taxes	$	(987	)	$	75,302		$	14,660		$	—		$	88,975
Benefit from (provision for) income taxes	398			(27,942		)	(6,580		)	—			(34,124		)
(Loss) income from continuing operations before non-controlling interests	$	(589	)	$	47,360		$	8,080		$	—		$	54,851
Loss from discontinued operations, net of tax	—			(612		)	(819		)	—			(1,431		)
Equity in income from subsidiaries, net of tax	54,009			—			—			(54,009		)	—
Net income (loss)	$	53,420		$	46,748		$	7,261		$	(54,009	)	$	53,420
Net income attributable to non-controlling interests	—			109			—			—			109
Net income (loss) attributable to MasTec, Inc.	$	53,420		$	46,639		$	7,261		$	(54,009	)	$	53,311
Comprehensive income (loss)	$	53,420		$	46,282		$	486		$	(54,009	)	$	46,179

CONDENSED UNAUDITED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

For the Six Months Ended June 30, 2012 (in thousands)



	MasTec, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated MasTec, Inc.
Revenue	$	—		$	1,615,087		$	112,044		$	—		$	1,727,131
Costs of revenue, excluding depreciation and amortization	—			1,425,346			95,406			—			1,520,752
Depreciation and amortization	1			41,338			1,141						42,480
General and administrative expenses	749			70,115			4,814			—			75,678
Interest expense (income), net	—			18,446			(8		)	—			18,438
Other (income) expense, net	—			(1,042		)	215			—			(827		)
(Loss) income from continuing operations before provision for income taxes	$	(750	)	$	60,884		$	10,476		$	—		$	70,610
Benefit from (provision for) income taxes	309			(25,202		)	(2,858		)	—			(27,751		)
(Loss) income from continuing operations before non-controlling interests	$	(441	)	$	35,682		$	7,618		$	—		$	42,859
Income (loss) from discontinued operations, net of tax	—			2,752			(1,353		)	—			1,399
Equity in income from subsidiaries, net of tax	44,699			—			—			(44,699		)	—
Net income (loss)	$	44,258		$	38,434		$	6,265		$	(44,699	)	$	44,258
Net loss attributable to non-controlling interests	—			—			(6		)	—			(6		)
Net income (loss) attributable to MasTec, Inc.	$	44,258		$	38,434		$	6,271		$	(44,699	)	$	44,264
Comprehensive income (loss)	$	44,258		$	38,385		$	6,394		$	(44,699	)	$	44,338

CONDENSED UNAUDITED CONSOLIDATING BALANCE SHEETS

As of June 30, 2013 (in thousands)



	MasTec, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated MasTec, Inc.
Assets
Current assets	$	—	$	1,097,512	$	152,967		$	—		$	1,250,479
Current assets of discontinued operations	—		13,409		8,354			—			21,763
Property and equipment, net	—		418,501		52,043			—			470,544
Goodwill and other intangible assets, net	—		925,104		103,804			—			1,028,908
Net investments in and advances to (from) consolidated affiliates	920,150		199,447		(53,383		)	(1,066,214		)	—
Other assets	8,038		33,545		113			—			41,696
Long-term assets of discontinued operations	—		4,517		2,999			—			7,516
Total assets	$	928,188	$	2,692,035	$	266,897		$	(1,066,214	)	$	2,820,906
Liabilities and Shareholders’ Equity
Current liabilities	$	5	$	750,021	$	38,677		$	—		$	788,703
Current liabilities of discontinued operations	—		5,775		4,130			—			9,905
Long-term debt	—		780,103		26,394			—			806,497
Other liabilities	—		248,272		47,216			—			295,488
Total liabilities	$	5	$	1,784,171	$	116,417		$	—		$	1,900,593
Total shareholders’ equity	$	928,183	$	907,864	$	150,480		$	(1,066,214	)	$	920,313
Total liabilities and shareholders’ equity	$	928,188	$	2,692,035	$	266,897		$	(1,066,214	)	$	2,820,906

CONDENSED UNAUDITED CONSOLIDATING BALANCE SHEETS

As of December 31, 2012 (in thousands)



	MasTec, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated MasTec, Inc.
Assets
Current assets	$	—	$	981,566	$	48,373		$	—		$	1,029,939
Current assets of discontinued operations	—		13,836		4,755			—			18,591
Property and equipment, net	—		338,997		11,381			—			350,378
Goodwill and other intangible assets, net	—		932,481		30,729			—			963,210
Net investments in and advances to (from) consolidated affiliates	854,992		172,348		(21,592		)	(1,005,748		)	—
Other assets	7,701		38,732		80			—			46,513
Long-term assets of discontinued operations	—		4,711		2,937			—			7,648
Total assets	$	862,693	$	2,482,671	$	76,663		$	(1,005,748	)	$	2,416,279
Liabilities and Shareholders’ Equity
Current liabilities	$	20	$	680,536	$	22,811		$	—		$	703,367
Current liabilities of discontinued operations	—		6,498		4,181			—			10,679
Long-term debt	—		546,262		61			—			546,323
Other liabilities	—		273,199		20,776			—			293,975
Total liabilities	$	20	$	1,506,495	$	47,829		$	—		$	1,554,344
Total shareholders’ equity	$	862,673	$	976,176	$	28,834		$	(1,005,748	)	$	861,935
Total liabilities and shareholders’ equity	$	862,693	$	2,482,671	$	76,663		$	(1,005,748	)	$	2,416,279

CONDENSED UNAUDITED CONSOLIDATING STATEMENTS OF CASH FLOWS

For the Six Months Ended June 30, 2013 (in thousands)



	MasTec, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated MasTec, Inc.
Net cash (used in) provided by operating activities	$	(941	)	$	57,365		$	(41,857	)	$	—	$	14,567
Cash flows (used in) provided by investing activities:
Cash paid for acquisitions, net, including contingent consideration	$	—		$	(26,202	)	$	(107,190	)	$	—	$	(133,392	)
Capital expenditures	—			(70,335		)	(1,047		)	—		(71,382		)
Proceeds from sale of property and equipment	—			18,884			94			—		18,978
Proceeds from sale or redemption of investments	—			5,025			—			—		5,025
Investments in life insurance policies	—			(94		)	—			—		(94		)
Net cash used in investing activities	$	—		$	(72,722	)	$	(108,143	)	$	—	$	(180,865	)
Cash flows provided by (used in) financing activities:
Proceeds from issuance of 4.875% senior notes	$	—		$	400,000		$	—		$	—	$	400,000
Repayment of 7.625% senior notes	—			(150,000		)	—			—		(150,000		)
Proceeds from credit facility	—			461,941			37,725			—		499,666
Repayments of credit facility	—			(524,358		)	(34,238		)	—		(558,596		)
Repayments of other borrowings	—			(18,570		)	—			—		(18,570		)
Repayments of book overdrafts	—			7,989			—			—		7,989
Payments of capital lease obligations	—			(20,900		)	(239		)	—		(21,139		)
Proceeds from stock option exercises and other share-based awards	4,283			—			—			—		4,283
Excess tax benefit from stock-based compensation	—			1,462			—			—		1,462
Payments for debt extinguishment, call premiums	—			(4,116		)	—			—		(4,116		)
Payments of financing costs	—			(7,569		)	—			—		(7,569		)
Net financing activities and advances (to) from consolidated affiliates	(3,233		)	(143,781		)	147,014			—		—
Net cash provided by financing activities	$	1,050		$	2,098		$	150,262		$	—	$	153,410
Net increase (decrease) in cash and cash equivalents	109			(13,259		)	262			—		(12,888		)
Net effect of currency translation on cash	—			—			(274		)	—		(274		)
Cash and cash equivalents - beginning of period	—			17,829			8,938			—		26,767
Cash and cash equivalents - end of period	$	109		$	4,570		$	8,926		$	—	$	13,605
Cash and cash equivalents of discontinued operations	$	—		$	190		$	120		$	—	$	310
Cash and cash equivalents of continuing operations	$	109		$	4,380		$	8,806		$	—	$	13,295

CONDENSED UNAUDITED CONSOLIDATING STATEMENTS OF CASH FLOWS

For the Six Months Ended June 30, 2012 (in thousands)



	MasTec, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated MasTec, Inc.
Net cash (used in) provided by operating activities	$	(697	)	$	20,091		$	(23,638	)	$	—	$	(4,244	)
Cash flows (used in) provided by investing activities:
Cash paid for acquisitions, net, including contingent consideration	$	—		$	(15,862	)	$	—		$	—	$	(15,862	)
Capital expenditures	—			(27,625		)	(865		)	—		(28,490		)
Proceeds from sale of property and equipment	—			3,808			—			—		3,808
Proceeds from disposal of business, net	—			97,728			—			—		97,728
Investment in life insurance policies	(284		)	—			—			—		(284		)
Net cash (used in) provided by investing activities	$	(284	)	$	58,049		$	(865	)	$	—	$	56,900
Cash flows provided by (used in) financing activities:
Proceeds from credit facility	$	—		$	422,550		$	—		$	—	$	422,550
Repayments of credit facility	—			(418,750		)	—			—		(418,750		)
Repayments of other borrowings	—			(10,542		)	—			—		(10,542		)
Proceeds from book overdrafts	—			(5,290		)	—			—		(5,290		)
Payments of capital lease obligations	—			(9,649		)	(19		)	—		(9,668		)
Proceeds from stock option exercises and other share-based awards	766			—			—			—		766
Excess tax benefit from stock-based compensation	—			70			—			—		70
Purchases of treasury stock	(35,087		)	—			—			—		(35,087		)
Payments of financing costs	—			(115		)	—			—		(115		)
Net financing activities and advances (to) from consolidated affiliates	35,302			(63,813		)	28,511			—		—
Net cash provided by (used in) financing activities	$	981		$	(85,539	)	$	28,492		$	—	$	(56,066	)
Net (decrease) increase in cash and cash equivalents	—			(7,399		)	3,989			—		(3,410		)
Net effect of currency translation on cash	—			(114		)	58			—		(56		)
Cash and cash equivalents - beginning of period	—			16,242			4,038			—		20,280
Cash and cash equivalents - end of period	$	—		$	8,729		$	8,085		$	—	$	16,814
Cash and cash equivalents of discontinued operations	$	—		$	105		$	281		$	—	$	386
Cash and cash equivalents of continuing operations	$	—		$	8,624		$	7,804		$	—	$	16,428