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Segments and Related Information
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Segment and Related Information Segments and Related Information
Segment Discussion
The Company manages its operations under five operating segments, which represent its five reportable segments: (1) Communications; (2) Clean Energy and Infrastructure; (3) Oil and Gas; (4) Power Delivery and (5) Other. This structure is generally focused on broad end-user markets for the Company’s labor-based construction services. All five reportable segments derive their revenue from the engineering, installation and maintenance of infrastructure, primarily in North America. In the first quarter of 2022, the Company began integration of HMG. The HMG
acquisition was completed on December 30, 2021, with its initial balance sheet reported within the Company’s Power Delivery segment. During the first quarter of 2022, the Company reported portions of HMG’s operations within its Power Delivery, Communications and Oil and Gas segments, as appropriate, and HMG’s corporate functions within its Corporate results. Accordingly, HMG’s December 31, 2021 balance sheet information was recast to conform with the new reporting structure.
The Communications segment performs engineering, construction, maintenance and customer fulfillment activities related to communications infrastructure, primarily for wireless and wireline/fiber communications and install-to-the-home customers, as well as infrastructure for utilities, among others. The Clean Energy and Infrastructure segment primarily serves energy, utility, government and other end-markets through the installation and construction of power generation facilities, primarily from clean energy and renewable sources, such as wind, solar, biomass, natural gas and hydrogen, as well as battery storage for renewable energy and various types of heavy civil and industrial infrastructure. The Company performs engineering, construction and maintenance services for pipelines and processing facilities for the energy and utilities industries through its Oil and Gas segment. The Power Delivery segment primarily serves the energy and utility industries through the engineering, construction and maintenance of power transmission and distribution infrastructure, including electrical and gas transmission lines, distribution network systems and substations. The Other segment includes certain equity investees, the services of which vary from those provided by the Company’s primary segments, as well as other small business units that perform construction and other services for certain international end-markets.
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is the measure of profitability used by management to manage its segments and, accordingly, in its segment reporting. As appropriate, the Company supplements the reporting of its consolidated financial information determined in accordance with U.S. GAAP with certain non-U.S. GAAP financial measures, including EBITDA. The Company believes these non-U.S. GAAP measures provide meaningful information and help investors understand the Company’s financial results and assess its prospects for future performance. The Company uses EBITDA to evaluate its performance, both internally and as compared with its peers, because it excludes certain items that may not be indicative of the Company’s core operating results for its reportable segments, as well as items that can vary widely across different industries or among companies within the same industry. Segment EBITDA is calculated in a manner consistent with consolidated EBITDA.
Summarized financial information for MasTec’s reportable segments is presented and reconciled to consolidated financial information for total MasTec in the following tables, including a reconciliation of consolidated income before income taxes to EBITDA, all of which are presented in millions. The tables below may contain slight summation differences due to rounding.
For the Three Months Ended March 31,
Revenue:20222021
Communications (a)
$664.2 $568.6 
Clean Energy and Infrastructure
435.9 350.4 
Oil and Gas
211.0 725.5 
Power Delivery
650.5 133.5 
Other
0.0 0.0 
Eliminations(7.2)(2.6)
Consolidated revenue$1,954.4 $1,775.4 
(a)    Revenue generated primarily by utilities customers represented 25.6% and 20.1% of Communications segment revenue for the three month periods ended March 31, 2022 and 2021, respectively.
For the Three Months Ended March 31,
EBITDA:20222021
Communications
$40.3 $48.9 
Clean Energy and Infrastructure
10.9 10.9 
Oil and Gas
21.5 167.6 
Power Delivery
46.1 3.6 
Other
6.9 7.4 
Corporate(47.0)(40.0)
Consolidated EBITDA$78.7 $198.4 
For the three month period ended March 31, 2022, Power Delivery, Communications, Oil and Gas and Corporate EBITDA included $7.0 million, $0.8 million, $2.0 million and $3.8 million, respectively, of acquisition and integration costs related to the Company’s fourth quarter 2021 acquisitions.
For the Three Months Ended March 31,
Depreciation and Amortization:20222021
Communications
$29.0 $21.8 
Clean Energy and Infrastructure
11.4 7.6 
Oil and Gas
31.6 52.1 
Power Delivery
35.7 6.1 
Other
0.0 0.0 
Corporate3.1 2.9 
Consolidated depreciation and amortization$110.8 $90.5 
Assets:March 31,
2022
December 31, 2021 (a)
Communications$2,156.6 $2,100.9 
Clean Energy and Infrastructure970.5 1,067.0 
Oil and Gas1,509.8 1,527.6 
Power Delivery2,038.6 2,017.2 
Other263.0 238.1 
Corporate149.5 170.6 
Consolidated segment assets$7,088.0 $7,121.4 
(a)     Segment assets as of December 31, 2021 were recast during the first quarter of 2022 to conform with the change in segment reporting for the HMG acquisition, the effect of which was a decrease in Power Delivery segment assets of $192.2 million, an increase in assets for the Communications and Oil and Gas segments of $69.4 million and $77.0 million, respectively, and an increase in Corporate assets of $45.8 million.
For the Three Months Ended March 31,
EBITDA Reconciliation:20222021
(Loss) income before income taxes$(48.1)$95.4 
Plus:
Interest expense, net16.0 12.5 
Depreciation85.2 79.3 
Amortization of intangible assets25.6 11.2 
Consolidated EBITDA$78.7 $198.4 
Foreign Operations and Other. MasTec operates primarily in the United States and Canada, and, to a far lesser extent, in Mexico, the Caribbean and India. Revenue derived from U.S. operations totaled $1.9 billion and $1.7 billion for the three month periods ended March 31, 2022 and 2021, respectively. Revenue derived from foreign operations totaled $24.5 million and $46.4 million for the three month periods ended March 31, 2022 and 2021, respectively, which was derived primarily from the Company’s Canadian operations in its Oil and Gas segment, and, to a lesser extent, from the Company’s operations in Mexico. Long-lived assets held in the U.S. included property and equipment, net, of $1.5 billion and $1.4 billion as of March 31, 2022 and December 31, 2021, respectively, and, for the Company’s businesses in foreign countries, totaled $24.6 million and $24.5 million, respectively. Intangible assets and goodwill, net, related to the Company’s U.S. operations totaled approximately $2.2 billion and $2.1 billion as of March 31, 2022 and December 31, 2021, respectively, and for the Company’s businesses in foreign countries, totaled approximately $42.8 million and $43.8 million as of March 31, 2022 and December 31, 2021, respectively. Substantially all of the Company’s long-lived and intangible assets and goodwill in foreign countries relate to its Canadian operations. As of March 31, 2022 and December 31, 2021, amounts due from customers from which foreign revenue was derived accounted for approximately 1% and 2%, respectively, of the Company’s consolidated net accounts receivable position, which represents accounts receivable, net, less deferred revenue. Revenue from governmental entities for the three month periods ended March 31, 2022 and 2021 totaled approximately 6% and 4% of total revenue, respectively, substantially all of which was derived from the Company’s U.S. operations.
Significant Customers
For the three month period ended March 31, 2022, no customer represented greater than 10% of the Company’s total consolidated revenue, and for the three month period ended March 31, 2021, Enbridge, Inc. represented 25% of the Company’s total consolidated revenue.  The Company’s relationship with Enbridge, Inc. is based upon various construction contracts for pipeline activities, for which the related revenue is included within the Oil and Gas segment.