Cash basis earnings — which exclude the amortization of intangibles were $0.38 per share in the first quarter of 2001 compared to $0.30 per share in 2000. These financial results, including the segment information below, excludes an after tax provision of $13.1 million or $0.27 per share for the first quarter of 2001 primarily related to a reserve for a portion of receivables due from clients who have filed for Chapter 11 bankruptcy reorganization recently or who have experienced difficulties in raising funding due to current economic conditions.
MasTec reported the following:
Datacom Network Services revenue was $287.8 million in the first 2001
quarter, up 28% from $225.0 million in the same quarter last year. Operating
margin was 11.4% in 2001 compared to 12.0% in the same quarter last year. The
decline in operating margin was primarily due to a rapid deceleration of
demand for our switching and central office services in our Network Services
Division. The rapid changes required us to make difficult decisions including
team member reductions during April 2001.
Energy Network Services revenue was $36.0 million in 2001, down 3.7% from
$37.4 million in the same quarter last year. Operating margin was 8.1% in
2001, compared to 6.1% percent in the same quarter last year.
Our Brazilian operations reported revenue of $13.4 million in 2001 up
30.1% compared to $10.3 million in the same quarter last year and generated a
loss of $163 thousand compared to a loss of $622 thousand in 2000.
Backlog at March 31, 2001, was $1.6 billion, including master service
agreements, substantially all of which will be performed in the next
18 months.
Our business strategy and long-term vision has not changed. We remain
focused on building a diversified service offering and a diversified client
base. We realize, however, that there will be periods of growth above and
below expectations, said Joel-Tomas Citron, President and CEO. While our
visibility was strong during the first quarter, we believe that recent events
in the telecommunications industry warrant a cautious near-term outlook. We
remain confident that we will maintain the Company’s position as an industry
leader meeting the outsourcing needs of our clients. We project revenue
growth for 2001 of 10% and EPS of $1.74 to $1.82. For the quarter ending
June 30, 2001, we anticipate revenue of approximately $330 to $340 million and
EPS of approximately $0.41 to $0.43.
SOURCE: COMPANY PRESS RELEASE
