MasTec(MTZ) - 2024 Q2 - Quarterly Report

Financial Performance - Revenue for Q2 2024 was $2,961,086, an increase of 3.0$2,874,115 in Q2 2023[6] - Net income for Q2 2024 was $43,768, compared to$16,754 in Q2 2023, representing a year-over-year increase of 161.5%[6] - Comprehensive income for Q2 2024 was $42,893, compared to$22,337 in Q2 2023, indicating a year-over-year increase of 92.5%[8] - The net loss for the six months ended June 30, 2024, was $9,309,000, compared to a net loss of$63,792,000 for the same period in 2023[19] - The Company recognized revenue of approximately $374.1 million for the six-month period ended June 30, 2024, compared to$342.2 million for the same period in 2023, representing an increase of about 9.5%[43] - Consolidated revenue for the six months ended June 30, 2024, was $5,648 million, an increase of approximately$189 million, or 3%, compared to $5,459 million for the same period in 2023[96] Assets and Liabilities - Total assets decreased to$8,678,986 as of June 30, 2024, down from $9,373,511 at the end of 2023, reflecting a decline of 7.4$5,944,879 as of June 30, 2024, down from $6,652,250 at the end of 2023, a reduction of 10.6$2,734,107,000, a slight decrease from $2,741,187,000 as of December 31, 2023[15] - As of June 30, 2024, the total debt obligations amounted to$2,578.3 million, a decrease from $3,078.8 million as of December 31, 2023, reflecting a reduction of approximately 16.3$372,199,000, a significant improvement from cash used of $97,910,000 in the prior year[19] - The company incurred capital expenditures of$56,907,000 for the six months ended June 30, 2024, down from $119,067,000 in the same period of 2023[19] - Capital expenditures for the first half of 2024 were approximately$57 million, with an estimated total of $175 million planned for the full year[107] Expenses - General and administrative expenses decreased to$167,081 in Q2 2024, down from $176,155 in Q2 2023, a decrease of 5.1$50.6 million, down from $59.4 million in the same period in 2023[89] - General and administrative expenses totaled$333 million, or 5.9% of revenue, for the six months ended June 30, 2024, a decrease of approximately $7 million, or 2$135.1 million in Q2 2024, compared to $77.0 million in Q2 2023, reflecting a growth of 75.3$608 million, or 102%, totaling $1,206 million for the six months ended June 30, 2024, driven by higher project activity[98] - Communications segment revenue decreased by approximately$118 million, or 7%, totaling $1,558 million for the six months ended June 30, 2024, attributed to lower wireless and wireline project activity[96] Backlog and Future Expectations - Estimated backlog as of June 30, 2024, is$13.338 billion, an increase from $12.837 billion as of March 31, 2024[85] - The company anticipates realizing approximately 45$69 million in cash and an earn-out liability valued at approximately $1 million[34] - In July 2024, the company acquired a construction company for approximately$35 million in cash, focusing on underground utility infrastructure[34] - The company plans to continue evaluating opportunities for strategic acquisitions and investments, indicating a proactive approach to growth[107] Tax and Regulatory Matters - The Company’s effective tax rate for the six-month period ended June 30, 2024, was 47.0%, reflecting an increase in non-deductible expenses compared to the same period in 2023[63] - The effective tax rate for the three months ended June 30, 2024, was 30.7%, compared to 14.9% for the same period in 2023[94] - The SEC adopted final rules for climate-related disclosures, effective for fiscal years beginning on or after January 1, 2025, which the Company is currently monitoring[28] Shareholder Information - The company had $77.3 million available for future share repurchases under its March 2020 share repurchase program as of June 30, 2024[60] - During the three months ended June 30, 2024, the company repurchased a total of 25,291 shares of common stock at an average price of$98.61 per share[130] Risk Factors - There have been no material changes to risk factors disclosed in the 2023 Form 10-K, including those related to inflation and interest rates[129] - The company is subject to fluctuations in foreign currency exchange rates, which could increase with future expansion outside the United States[123] - Management actively monitors inflationary factors and their potential effects on business operations and financial condition[121]