Supplemental Guarantor Financial Information

6 Months Ended

Jun. 30, 2019

Condensed Unaudited Financial Statements, Supplemental Guarantor Information [Abstract]

Supplemental Guarantor Financial Information

Note 16 – Supplemental Guarantor Condensed Unaudited Consolidating Financial Information

The 4.875% Senior Notes are 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, as of June 30, 2019, each guarantors of the Credit Facility or other outstanding indebtedness (the “Guarantor Subsidiaries”). The Company’s subsidiaries organized outside of the United States and certain domestic subsidiaries (collectively, the “Non-Guarantor Subsidiaries”) do not guarantee these notes. A Guarantor Subsidiary’s guarantee is 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 such Guarantor Subsidiary; if the Guarantor Subsidiary’s guarantee under the Company’s 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 (loss) and cash flows for 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 (LOSS) (in millions)

For the Three Months Ended June 30, 2019	MasTec, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated MasTec, Inc.
Revenue	$	—		$	1,845.9		$	122.3		$	(29.2	)	$	1,939.0
Costs of revenue, excluding depreciation and amortization	—			1,546.1			116.5			(29.2		)	1,633.4
Depreciation and amortization	—			55.4			4.5			—			59.9
General and administrative expenses	0.8			66.0			4.1			—			70.8
Interest expense (income), net	—			32.5			(15.9		)	—			16.6
Equity in earnings of unconsolidated affiliates	—			(0.0		)	(6.6		)	—			(6.6		)
Other expense (income), net	—			40.2			(35.4		)	—			4.8
(Loss) income before income taxes	$	(0.8	)	$	105.7		$	55.1		$	—		$	160.0
Benefit from (provision for) income taxes	0.3			(39.0		)	(1.0		)	—			(39.7		)
Net (loss) income before equity in income from subsidiaries	$	(0.5	)	$	66.7		$	54.1		$	—		$	120.2
Equity in income from subsidiaries, net of tax	120.2			—			—			(120.2		)	—
Net income (loss)	$	119.7		$	66.7		$	54.1		$	(120.2	)	$	120.2
Net income attributable to non-controlling interests	—			—			0.5			—			0.5
Net income (loss) attributable to MasTec, Inc.	$	119.7		$	66.7		$	53.6		$	(120.2	)	$	119.7
Comprehensive income (loss)	$	111.1		$	66.7		$	45.5		$	(111.6	)	$	111.6

For the Three Months Ended June 30, 2018	MasTec, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated MasTec, Inc.
Revenue	$	—		$	1,556.9		$	84.0		$	(23.1	)	$	1,617.8
Costs of revenue, excluding depreciation and amortization	—			1,309.1			80.6			(23.1		)	1,366.6
Depreciation and amortization	—			46.2			5.5			—			51.7
General and administrative expenses	0.8			63.1			3.7			—			67.6
Interest expense (income), net	—			37.1			(16.3		)	—			20.8
Equity in earnings of unconsolidated affiliates	—			—			(5.8		)	—			(5.8		)
Other expense (income), net	—			1.2			(0.4		)	—			0.8
(Loss) income before income taxes	$	(0.8	)	$	100.2		$	16.7		$	—		$	116.2
Benefit from (provision for) income taxes	0.2			(25.9		)	(10.1		)	—			(35.8		)
Net (loss) income before equity in income from subsidiaries	$	(0.6	)	$	74.3		$	6.6		$	—		$	80.4
Equity in income from subsidiaries, net of tax	81.1			—			—			(81.1		)	—
Net income (loss)	$	80.5		$	74.3		$	6.6		$	(81.1	)	$	80.4
Net loss attributable to non-controlling interests	—			—			(0.1		)	—			(0.1		)
Net income (loss) attributable to MasTec, Inc.	$	80.5		$	74.3		$	6.7		$	(81.1	)	$	80.5
Comprehensive income (loss)	$	81.8		$	74.3		$	8.0		$	(82.4	)	$	81.7

CONDENSED UNAUDITED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (in millions)

For the Six Months Ended June 30, 2019	MasTec, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated MasTec, Inc.
Revenue	$	—		$	3,247.1		$	262.6		$	(52.4	)	$	3,457.3
Costs of revenue, excluding depreciation and amortization	—			2,745.6			252.2			(52.4		)	2,945.4
Depreciation and amortization	—			109.9			9.1			—			119.0
General and administrative expenses	1.6			133.3			8.5			—			143.4
Interest expense (income), net	—			70.2			(31.3		)	—			38.9
Equity in losses (earnings) of unconsolidated affiliates	—			0.1			(12.9		)	—			(12.8		)
Other expense (income), net	—			45.2			(36.9		)	—			8.3
(Loss) income before income taxes	$	(1.6	)	$	142.8		$	73.9		$	—		$	215.1
Benefit from (provision for) income taxes	0.6			(51.0		)	(1.4		)	—			(51.8		)
Net (loss) income before equity in income from subsidiaries	$	(1.0	)	$	91.8		$	72.5		$	—		$	163.3
Equity in income from subsidiaries, net of tax	163.8			—			—			(163.8		)	—
Net income (loss)	$	162.8		$	91.8		$	72.5		$	(163.8	)	$	163.3
Net income attributable to non-controlling interests	—			—			0.5			—			0.5
Net income (loss) attributable to MasTec, Inc.	$	162.8		$	91.8		$	72.0		$	(163.8	)	$	162.8
Comprehensive income (loss)	$	148.6		$	91.8		$	58.4		$	(149.7	)	$	149.1

For the Six Months Ended June 30, 2018	MasTec, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated MasTec, Inc.
Revenue	$	—		$	2,822.5		$	269.6		$	(77.5	)	$	3,014.6
Costs of revenue, excluding depreciation and amortization	—			2,445.3			236.1			(77.5		)	2,603.9
Depreciation and amortization	—			89.5			12.1			—			101.6
General and administrative expenses	1.5			122.4			7.3			—			131.2
Interest expense (income), net	—			70.0			(32.1		)	—			37.9
Equity in earnings of unconsolidated affiliates	—			—			(11.4		)	—			(11.4		)
Other income, net	—			(1.4		)	(0.9		)	—			(2.3		)
(Loss) income before income taxes	$	(1.5	)	$	96.7		$	58.5		$	—		$	153.8
Benefit from (provision for) income taxes	0.4			(24.9		)	(22.3		)	—			(46.9		)
Net (loss) income before equity in income from subsidiaries	$	(1.1	)	$	71.8		$	36.2		$	—		$	106.9
Equity in income from subsidiaries, net of tax	108.2			—			—			(108.2		)	—
Net income (loss)	$	107.1		$	71.8		$	36.2		$	(108.2	)	$	106.9
Net loss attributable to non-controlling interests	—			—			(0.2		)	—			(0.2		)
Net income (loss) attributable to MasTec, Inc.	$	107.1		$	71.8		$	36.4		$	(108.2	)	$	107.1
Comprehensive income (loss)	$	115.5		$	71.8		$	44.7		$	(116.7	)	$	115.3

CONDENSED UNAUDITED CONSOLIDATING BALANCE SHEETS (in millions)

As of June 30, 2019	MasTec, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated MasTec, Inc.
Assets
Total current assets	$	—	$	1,949.1	$	244.0	$	(66.1	)	$	2,127.0
Property and equipment, net	—		810.9		41.9		—			852.8
Operating lease assets	—		223.9		17.6		—			241.5
Goodwill and other intangible assets, net	—		1,251.7		82.6		—			1,334.4
Investments in and advances to consolidated affiliates, net	1,530.4		1,111.6		849.0		(3,491.0		)	—
Other long-term assets	17.7		38.2		185.8		—			241.7
Total assets	$	1,548.1	$	5,385.4	$	1,420.9	$	(3,557.1	)	$	4,797.4
Liabilities and equity
Total current liabilities	$	—	$	1,328.0	$	129.2	$	(66.1	)	$	1,391.2
Long-term debt, including finance leases	—		1,245.5		5.3		—			1,250.8
Long-term operating lease liabilities	—		155.0		13.7		—			168.7
Other long-term liabilities	—		425.4		10.0		—			435.3
Total liabilities	$	—	$	3,153.9	$	158.2	$	(66.1	)	$	3,246.0
Total equity	$	1,548.1	$	2,231.5	$	1,262.7	$	(3,491.0	)	$	1,551.3
Total liabilities and equity	$	1,548.1	$	5,385.4	$	1,420.9	$	(3,557.1	)	$	4,797.4

As of December 31, 2018	MasTec, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated MasTec, Inc.
Assets
Total current assets	$	—	$	1,993.0	$	248.5	$	(72.5	)	$	2,169.0
Property and equipment, net	—		699.2		48.6		—			747.8
Goodwill and other intangible assets, net	—		1,188.0		81.7		—			1,269.7
Investments in and advances to consolidated affiliates, net	1,373.1		1,138.4		816.9		(3,328.4		)	—
Other long-term assets	16.8		42.0		194.6		—			253.4
Total assets	$	1,389.9	$	5,060.6	$	1,390.3	$	(3,400.9	)	$	4,440.0
Liabilities and equity
Total current liabilities	$	—	$	1,185.9	$	170.2	$	(72.5	)	$	1,283.6
Long-term debt, including finance leases	—		1,319.4		4.9		—			1,324.2
Other long-term liabilities	—		429.2		10.8		—			440.1
Total liabilities	$	—	$	2,934.5	$	185.9	$	(72.5	)	$	3,047.9
Total equity	$	1,389.9	$	2,126.1	$	1,204.4	$	(3,328.4	)	$	1,392.0
Total liabilities and equity	$	1,389.9	$	5,060.6	$	1,390.3	$	(3,400.9	)	$	4,440.0

CONDENSED UNAUDITED CONSOLIDATING STATEMENTS OF CASH FLOWS (in millions)

For the Six Months Ended June 30, 2019	MasTec, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated MasTec, Inc.
Net cash provided by operating activities	$	—		$	315.8		$	35.7		$	—	$	351.5
Cash flows from investing activities:
Cash paid for acquisitions, net of cash acquired	—			(94.6		)	—			—		(94.6		)
Capital expenditures	—			(54.9		)	(2.6		)	—		(57.5		)
Proceeds from sale of property and equipment	—			11.5			8.0			—		19.6
Payments for other investments	—			(3.6		)	(1.3		)	—		(5.0		)
Proceeds from other investments	—			10.8			3.9			—		14.7
Net cash (used in) provided by investing activities	$	—		$	(130.8	)	$	8.0		$	—	$	(122.8	)
Cash flows from financing activities:
Proceeds from credit facilities	—			1,620.7			7.2			—		1,627.9
Repayments of credit facilities	—			(1,748.2		)	(5.8		)	—		(1,754.0		)
Proceeds from other borrowings, net	—			0.0			—			—		0.0
Payments of finance lease obligations	—			(37.6		)	(1.1		)	—		(38.6		)
Payments of acquisition-related contingent consideration	—			(29.3		)	—			—		(29.3		)
Proceeds from non-controlling interests	—			—			0.6			—		0.6
Repurchase of common stock	(5.7		)	—			—			—		(5.7		)
Proceeds from stock-based awards, net	2.3			—			—			—		2.3
Net financing activities and advances from (to) consolidated affiliates	3.4			24.0			(27.4		)	—		—
Net cash used in financing activities	$	—		$	(170.4	)	$	(26.5	)	$	—	$	(196.8	)
Effect of currency translation on cash	—			—			(0.1		)	—		(0.1		)
Net increase in cash and cash equivalents	$	—		$	14.6		$	17.1		$	—	$	31.8
Cash and cash equivalents - beginning of period	$	—		$	11.9		$	15.6		$	—	$	27.4
Cash and cash equivalents - end of period	$	—		$	26.5		$	32.7		$	—	$	59.2

For the Six Months Ended June 30, 2018	MasTec, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated MasTec, Inc.
Net cash (used in) provided by operating activities	$	—		$	(129.6	)	$	152.8		$	—	$	23.2
Cash flows from investing activities:
Cash paid for acquisitions, net of cash acquired	—			(6.7		)	—			—		(6.7		)
Capital expenditures	—			(85.1		)	(2.9		)	—		(88.0		)
Proceeds from sale of property and equipment	—			12.3			1.6			—		13.9
Payments for other investments	—			(11.2		)	(24.5		)	—		(35.7		)
Proceeds from other investments	—			—			5.4			—		5.4
Net cash used in investing activities	$	—		$	(90.7	)	$	(20.4	)	$	—	$	(111.1	)
Cash flows from financing activities:
Proceeds from credit facilities	—			1,623.3			15.6			—		1,638.9
Repayments of credit facilities	—			(1,357.6		)	(17.0		)	—		(1,374.6		)
Repayments of other borrowings, net	—			(15.5		)	(0.3		)	—		(15.8		)
Payments of finance lease obligations	—			(34.4		)	(3.5		)	—		(37.9		)
Payments of acquisition-related contingent consideration	—			(15.9		)	—			—		(15.9		)
Repurchase of common stock	(128.3		)	—			—			—		(128.3		)
Distributions to non-controlling interests	—			(0.6		)	—			—		(0.6		)
Proceeds from stock-based awards, net	1.9			—			—			—		1.9
Net financing activities and advances from (to) consolidated affiliates	126.4			11.8			(138.2		)	—		—
Net cash provided by (used in) financing activities	$	—		$	211.1		$	(143.4	)	$	—	$	67.7
Effect of currency translation on cash	—			—			0.5			—		0.5
Net decrease in cash and cash equivalents	$	—		$	(9.2	)	$	(10.5	)	$	—	$	(19.6	)
Cash and cash equivalents - beginning of period	$	—		$	10.0		$	30.3		$	—	$	40.3
Cash and cash equivalents - end of period	$	—		$	0.8		$	19.8		$	—	$	20.7