Earnings Per Share

9 Months Ended

Sep. 30, 2022

Basic earnings per share is computed by dividing net income attributable to MasTec by the weighted average number of common shares outstanding for the period, which excludes non-participating unvested restricted share awards. Diluted earnings per share is computed by dividing net income attributable to MasTec by the weighted average number of fully diluted shares, as calculated primarily under the treasury stock method, which includes the potential effect of dilutive common stock equivalents, such as issued but unvested restricted shares. If the Company reports a loss, rather than income, the computation of diluted loss per share excludes the effect of dilutive common stock equivalents, as their effect would be anti-dilutive.

The following table provides details underlying the Company’s earnings per share calculations for the periods indicated (in thousands):


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Net income attributable to MasTec:
Net income - basic (a)	$	48,896	$	111,087	$	30,130	$	252,187
Fair value gain (loss) related to resolved contingent payments (b)	$	143	$	—	$	1,459	$	—
Net income - diluted (a)	$	48,753	$	111,087	$	28,671	$	252,187
Weighted average shares outstanding:
Weighted average shares outstanding - basic(c)	73,936		72,503		74,386		72,481
Dilutive common stock equivalents (d)(e)	1,137		1,474		1,190		1,440
Weighted average shares outstanding - diluted	75,073		73,977		75,576		73,921

(a)For basic net income, calculated as total net income or loss less amounts attributable to non-controlling interests. For diluted net income, calculated as total net income or loss, less amounts attributable to non-controlling interests, adjusted for the fair value gain or loss, if any, related to additional contingent payments to the former owners of an acquired business for which the contingency has been resolved as of the respective period. See discussion above and in Note 3 – Acquisitions, Goodwill and Other Intangible Assets, Net.

(b)For the three and nine month periods ended September 30, 2022, represents the fair value gain or loss related to additional contingent payments for which the contingency has been resolved as of September 30, 2022. See Note 3 – Acquisitions, Goodwill and Other Intangible Assets, Net for additional information.

(c)For the three and nine month periods ended September 30, 2022, basic shares include approximately 140,000 and 114,000 weighted average shares, respectively, related to additional contingent payments.

(d)For the three and nine month periods ended September 30, 2022, weighted average anti-dilutive common stock equivalents totaled approximately 8,000 and 135,000 respectively, and for the three and nine month periods ended September 30, 2021, totaled approximately 10,000 and 109,000, respectively.

(e)For the three and nine month periods ended September 30, 2022, common stock equivalents included approximately 11,000 and 37,000 weighted average shares, respectively, related to additional contingent payments to the former owners of an acquired business.

For the nine month period ended September 30, 2022, the Company repurchased approximately 1,124,000 shares of its common stock, the effect of which on the Company’s weighted average shares outstanding for the period was a reduction of approximately 598,000 shares. See Note 11 – Equity for details of the Company’s share repurchase transactions. Additionally, in May 2022 and December 2021, the Company issued approximately 133,000 and 1,975,000 shares, respectively, of its common stock in conjunction with the HMG acquisition. In addition, in October 2022, the Company issued approximately 2,652,000 shares of its common stock in connection with the recently completed acquisition of IEA. See Note 3 – Acquisitions, Goodwill and Other Intangible Assets, Net for additional information.