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MasTec, Inc.
announced today that the Company expects 2007 revenue from
continuing operations to be in the range of $1.04 billion to $1.06 billion,
approximately a 10 to 12 percent increase. Diluted earnings per share from
continuing operations is expected to be between $0.80 and $0.90 per share
for the year, an increase of approximately 30 to 50 percent. The 2007
earnings guidance includes the non-cash impact of stock compensation
expense per Financial Accounting Standards No. 123-R, Share Based Payment
(FASB 123R) of approximately $7.5 million or $0.11 per share.
    MasTec continues to work toward finalizing the previously announced
sale of its discontinued State Department of Transportation assets and
projects and expects the sale to close in the next few weeks.
    The Company now expects 2006 revenue from continuing operations to be
in the range of $942 million to $947 million compared to $848 million for
2005, an increase of over 11 percent. Diluted earnings per share from
continuing operations is expected to be between $0.60 and $0.62 per share
for 2006, an increase of over 60% compared to $0.37 for 2005. The 2006
earnings include the non-cash impact of FASB 123R stock compensation
expense which impacted 2006 by approximately $7.6 million or $0.12 per
diluted share compared to stock compensation expense in 2005 of $500
thousand, or $0.01 per diluted share.
    Regarding 2006, Austin J. Shanfelter, MasTec's President and CEO,
commented, "The Company made significant progress during the year in
growing the business, improving earnings and cash flow from its core
businesses and recapitalizing the Company. We have made significant
progress and taken actions in 2006 that have positioned the company for
success in 2007 and going forward. "
    Regarding fourth quarter continuing operations, Mr. Shanfelter
continued, "The preliminary estimates for the quarter's earnings appear
flat vs. the same quarter in 2005. While revenue grew at roughly a high
single digit rate, earnings were negatively impacted by four issues. First,
MasTec invested significantly in the quarter by hiring and training
approximately 800 new technicians to meet the accelerating demand of its
install-to-the-home operations. Although costly in the fourth quarter of
2006, the investment will have a positive impact on results going forward.
Second, as discussed on our last earnings call, MasTec exited two energy
contracts during the third and fourth quarters that had not been
profitable. The termination costs and earnings drag from these contracts
was significant, but the loss and cash drain have now been eliminated.
Third, legal costs were about $2.5 million above last year's fourth quarter
level. And, finally, the new FASB 123R stock compensation expense in the
quarter was approximately $2 million compared to stock-based compensation
of $100 thousand in 2005."
    Jose Mas, MasTec's Vice Chairman and CEO designate effective March 31,
2007, noted, "After solid improvement in 2006, we look forward to 2007,
where we expect double digit organic revenue growth and EPS growth of over
30%. We are well capitalized and ready to take advantage of the
opportunities in our end markets."
    MasTec is a leading specialty contractor operating throughout North
America across a range of industries. The Company's core activities are the
building, installation, maintenance and upgrade of communication and
utility infrastructure systems. The Company's corporate website is located
at http://www.mastec.com.
    This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act. These statements
are based on management's current expectations and are subject to a number
of risks, uncertainties, and assumptions, including that our revenue and
earnings per share may differ from that projected, that we may be impacted
by business and economic conditions affecting our customers, material
changes in estimates for legal costs or case settlements, the highly
competitive nature of our industry, dependence on a limited number of
customers, the adequacy of our insurance and other reserves and allowances
for doubtful accounts, restrictions imposed by our credit facility and
senior notes, the closing of the discontinued state DOT assets and projects
sale on the anticipated terms and timing, as well as other risks detailed
in our filings with the Securities and Exchange Commission. Actual results
may differ significantly from results expressed or implied in these
statements. We do not undertake any obligation to update forward-looking
statements.
 

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