Welcome to the MasTec fourth quarter 2014 earnings conference call, initially broadcast on February 27, 2015. Let me remind participants that today's call is being recorded. At this time, I'd like to turn the call over to Marc Lewis, MasTec's Vice President of Investor Relations. Marc?

Thanks, Vicki, and good morning, everyone. Welcome to MasTec's fourth quarter and 2014 year-end conference call. The following statement is made regarding the Safe Harbor for forward-looking statements pursuant to the Private Securities Litigation Reform Act of 1995. In these communications, we may make certain statements that are forward-looking, such as statements regarding MasTec's future results, plans and anticipated trends in the industries where we operate. These forward-looking statements represent the company's expectations on the day of the initial broadcast of this conference call, and the company undertakes no obligation to update these expectations based on subsequent events or knowledge. Various risks, uncertainties and assumptions are detailed in our press releases and filings with the SEC. Should one or more of these risks or uncertainties materialize, or should any of our underlying assumptions prove incorrect, actual results may differ significantly from results expressed or implied in these communications. In today's remarks by management, we will be discussing the continued operations, adjusted financial metrics, as discussed and reconciled in yesterday's press release and supporting schedules. In addition, we may use certain non-GAAP financial measures in this conference call. A reconciliation of any non-GAAP financial measures not reconciled in these comments to the most comparable GAAP financial measure can be found in our earnings release, or the Investors and News sections of our website at mastec.com. As we announced in our press release last night, The Audit Committee of the company's board of directors, with the assistance of independent counsel, is undertaking an independent review primarily to determine if certain cost to complete estimates, currently believed to be in the range of zero to $13 million, which were recognized during the company's third quarter of 2014, should have been recognized during the second quarter of 2014. The company currently believes that the…

Thank you. We will go first to Alex Rygiel with FBR. Alex J. Rygiel - FBR Capital Markets & Co.: Thank you. Good morning, gentlemen. And nice quarter. José R. Mas - Chief Executive Officer & Director: Thank you, Alex. Good morning. Alex J. Rygiel - FBR Capital Markets & Co.: José, your visibility into the Oil and gas segment 2015 and 2016 sounds pretty strong. Backlog is up year-over-year right now. It sounds like 1Q bidding opportunities are very, very strong, maybe some of those projects don't start right away, but bidding activity is strong. What is your outlook for margins and pipeline? And do you think the U.S. pipeline operations can see some organic growth in 2015? José R. Mas - Chief Executive Officer & Director: A couple of good questions. First we're very bullish on the oil and gas markets, especially as we look out going into 2016, even 2017. There is a lot going on right now. It's a very active market. We would expect that as 2015 rolls along, our backlog in that segment is going to increase dramatically. From a margin perspective, when you think about the business you know last year at this time, we were talking about some pressure to margins, because I think everybody was expecting the pipeline business to pick up in a big way, and it hadn't yet, I think a lot of those margin pressures subsided as the year went on. So I think margins in the business are good. Obviously, what ends up driving margins is utilization levels, so as you've seen in our business in 2013, we were able to utilize our resources at a higher level, especially with larger pipe work, which translated into much better margins, and I definitely see that taking place as…

We'll go next to Andrew Kaplowitz with Barclays.

Good morning, guys, good cash this quarter. José R. Mas - Chief Executive Officer & Director: Good morning, Andy.

José, so look, you guys, as you know, you've cut guidance a couple of times this quarter, and your guidance range is pretty wide, which you don't normally give. And I know you talked about the limited visibility, especially in oil and gas. But maybe you could talk about what would need to happen for MasTec to reach the middle or higher end of the EPS range, I guess my concern is, we all know there's a lot of visibility issues here, this year in Oil and Gas, why would we not model lowering your range versus highering your range? José R. Mas - Chief Executive Officer & Director: So it's a good question, Andy. Let me start maybe couple of months back. I think the initial look at guidance that we gave for 2015 and at the time we admitted was very early for us. We did because we'd just closed on our WesTower acquisition. We thought that we needed to help people think about what WesTower did to our business going into 2015 and what it meant from a financial perspective. We thought it was prudent at the time. Shortly thereafter our largest customer for both of those businesses, both for MasTec's existing business and for WesTower, they cut CapEx which forced us to take a relook at that time of our guidance and we issued a press release lowering our guidance at that time. And then since that time, oil prices took obviously a very difficult run through the later part of the year that ended up dramatically looking different than when we issued that first guidance. So, we're very frustrated because we think we got a good understanding and then we have things happen to us that are somewhat outside of our control that have forced…

Okay, that's helpful, José. And then can we talk about the Communications margin increase, I'm just curious what do you think is under your control in terms of the increase, is it most of what you're doing? In other words, is it just integrating WesTower, is it ramping up the businesses 1-gigabit, all that kind of stuff? Do you need to take out more cost in Communications or do you feel very confident that you can get this margin increase? José R. Mas - Chief Executive Officer & Director: Again, we're coming into 2015 very differently than where we were in 2014. I mean in 2014, at this time, we were ramping at very high levels, we were really excited about the business, we thought we were going to have a lot of growth, and we did a lot around the business to increase the number of people we had, we bought a lot of equipment for the business. So we invested a lot in the business, and obviously the revenues didn't materialize. We were waiting to get visibility. So we probably took a little bit longer to act than what we should have, and we kind of found ourselves throughout most of the year overstaffed for the amount of business that we had, which had a big drag to margins. And I think as fourth quarter is also a little bit skewed, because it's the first quarter that we have WesTower, so margins in our Communications segment were definitely negatively impacted by the WesTower acquisition. So when we back all that out and we look at how we did in the fourth quarter outside of that, we were very pleased with our progress. We look at 2015, we look at where we're sized today relative to what we know the business is, and we don't think those issues will reoccur in 2015 versus 2014, which makes us feel that we're going to make a lot of progress on margins this year. We had a very good year in 2013 relative to margins. At that time, we were saying we actually thought margins could improve over time. And quite frankly, we still believe that.

We'll go next to Tahira Afzal with KeyBanc Capital Markets.

Hi, guys. This is Sean on for Tahira today. José R. Mas - Chief Executive Officer & Director: How are you?

So first off, I'd just like to know if you have any clarity from your telecommunications customers regarding any potential changes to spending programs in the wake of the FCCs approval of Title II rules yesterday. The bookings and revenue growth outlook you guys gave in your prepared remarks suggest that there probably isn't a big change to at least the short to medium term economics of network investment, but I would like to get your thoughts there. José R. Mas - Chief Executive Officer & Director: So again, obviously, it was the decision that happened yesterday. When we've looked at forecasting for the year, again, we think we've taken very conservative views based on what we noted. A), it will be interesting to see – I think a lot of customers have already put their opinions out publicly and they differ, and I think there are a lot of people on different ends of the scale. So as we've looked at our book of business, irrespective of what decision was coming down, we didn't think it was going to affect nor our business in 2015 and quite frankly the outlook going forward.

All right, thanks for that, José. Next, moving over to midstream, could you just give us an update on the nature of your relationships with your key midstream customers as it relates to movement towards more preferred alliances or otherwise? José R. Mas - Chief Executive Officer & Director: We typically don't do that. I think we've got great relationships with our customers. We've got a couple customers that we've obviously been doing a lot of work for. I don't think anything has changed there. The nature of contracting in the business is changing somewhat because there's so much work coming that I think we're having a lot more dialogue around partnerships than historically we've had. But I'm not going to get into any specifics with any particular customers.

Okay, great. Thanks for the insight guys and great quarter. José R. Mas - Chief Executive Officer & Director: All right, thank you.

We'll go next to Jason Wangler with Wunderlich.

Hey, good morning, guys. I'm curious on the Mexico stuff. It sounds obviously very exciting. I was just wondering. Obviously, I think you walked through it a little bit in your prepared remarks. But just with you being part of the consortium, I guess with an equity interest, can you just maybe give an insight of how that's going to work from a cost and I guess your benefit or your revenue perspective as those projects go forward? José R. Mas - Chief Executive Officer & Director: So again, twofold. First, we're very excited about the construction opportunities that those projects bring. As part of one of the consortium members, Energy Transfer is responsible for the construction management of those contracts, so we will have a contract with Energy Transfer to procure and perform those services. We will be paid by Energy Transfer, and it's an arm's length agreement between Energy Transfer and MasTec on the construction of those pipelines. On a separate side as an owner of the consortium and as a member of the ownership group of the consortium, we're going to have an interest in a 24-year – and actually the initial term is 24 years. We will actually own the header in the pipeline. There is a 24-year agreement for a payment stream for the full capacity of that pipeline. So we will enjoy the benefits of the ownership of that consortium. We don't own a majority of that consortium obviously, so we will book that as a member of the consortium.

Okay. José R. Mas - Chief Executive Officer & Director: So two completely different ways to look at it. One will be the construction activities associated with the job up front, which we will be paid for in its entirety. And then two, we will make an investment in the consortium that will have a long-term asset, which again for us is something new. This is the first major equity investment that we make in a project where we will own something. We think the returns are phenomenal and we're very, very excited to be a part of it.

That's great color, thank you. And then I think somebody asked this, just sticking on oil and gas at least. But it sounded like you guys had a lot of good bookings in fourth quarter and even so far this quarter, and we're hearing a lot of pipeline stuff going on. But could you just maybe talk about the regions you're seeing some activity, and even also just the types of work that you're seeing awarded just given that all the turmoil is going on? José R. Mas - Chief Executive Officer & Director: We're seeing broad-based activity. So we're seeing strong activity across the different shale basins, and we're seeing very strong activity on long-line construction that's planned. Again, a lot of the strength in the industry is in the United States. The Canadian market is a little bit different, and obviously the oil sands are being more negatively impacted than some of the other parts of Canada. But from a U.S. perspective, very strong, very broad-based activity.

We will go next to Adam Thalhimer with BB&T Capital Markets. Adam R. Thalhimer - BB&T Capital Markets: Hey, good morning, guys. José R. Mas - Chief Executive Officer & Director: Good morning, Adam. Adam R. Thalhimer - BB&T Capital Markets: On the wireless side, José, I'm curious if there are any other drivers to offset AT&T. You've talked about Sprint in the past. And then, with all the acquisitions that AT&T has made in Mexico, is that an opportunity to do some upgrade work there? José R. Mas - Chief Executive Officer & Director: So a couple things. One, we're very excited about the opportunities in the wireless market as a whole. Again, we think we've got a great relationship with AT&T. We've built a great business there. We support them. We think we're doing a great job for them. But all along, part of our strategy has been we need to diversify our customer base. We need to grow with other customers. It was really the driving force behind our WesTower acquisition. And with that said, we're actually more bullish today probably than when we made the acquisition of what the acquisition can do for us from a customer diversification perspective. I would expect that over the course of this year, you're going to see that materialize, and we're going to see a much more broad-based wireless business with multiple carriers going forward, and we're really, really excited about that. As it relates to AT&T with some of their international expansion, obviously we are in Mexico today building wireless infrastructure for some of the existing Mexican carriers. We understand that AT&T is obviously going to go down there, and they will have their own investment to make. Again, we think we're uniquely positioned because I think we're one of the few providers that they've ever worked with that's already there performing those services. So we look forward to seeing what that means for us. So yes, it's an opportunity, and we'll see how that plays out. Adam R. Thalhimer - BB&T Capital Markets: Okay. And then I want to make sure I understood the 10-K delay. That's just an issue between – where some of the costs – I guess would that impact the COGS line just between Q2 and Q3? There is no annual impact here. José R. Mas - Chief Executive Officer & Director: So what we've said is unfortunately we can only refer back to the statement that Marc read. But yes, we're saying that we do not expect it to affect full-year 2014 financial results.

We'll go next to Dan Mannes with Avondale.

Good morning, everybody. José R. Mas - Chief Executive Officer & Director: Good morning, Dan.

A couple questions here. First as it relates to Canada, obviously you have FX and a challenging commodity price environment. Can you talk about the type of work that you're seeing slowing down there? And does this apply across oil and gas and also into electric, or is this really civil and midstream on the oil and gas side? José R. Mas - Chief Executive Officer & Director: Obviously, we don't have a significant presence in Canada on the transmission side. We've got an office up there. We're obviously going after some opportunities, but we're not a large established player there. So it probably wouldn't be correct for me to talk about that because we're not as impacted in that business because we're not in that business in a big way. As it relates to the gas and oil side of the business, the oil sands related activity is being more impacted than anything else. But we are seeing some slight impact to the midstream market. As you think about some of the larger diameter work, that work tends to be a little bit more stable because those projects are in planning process for a lot longer. And by the time they decide to build them, they usually go forward with them because they've got commitments and they've got significant costs already built into those projects. With all that said, our customers very early on in the processes as prices were reducing were very vocal with us that they weren't planning to change their plans. Subsequently, some of them started to make some CapEx reductions. It's still a positive environment. There's still a lot of bidding going on in the market. But again, based on customers' total CapEx spend and a lot of the announcements that have been made, we've got a view of what we expect, and again much more driven by the oil sands than anything else.

Got it. And then real quick, just on the other side of the equation, any benefits here from lower oil, particularly as I think about install-to-the-home and all the trucks you put on the road every day. I'm just wondering if there's any margin benefit you may see over some other parts of your business from the lower cost of oil and diesel? José R. Mas - Chief Executive Officer & Director: We use a lot of fuel, so the answer is, yes. I mean, we're obviously getting the same benefit that everybody else is getting on those prices. Fuel price is already beginning to tick up again. So we've seen a pretty decent shift here in the last couple of weeks on average fuel prices across the country. So again we've taken a pretty conservative view on our models. We haven't modeled in the lower prices that we saw very early in the year because we don't really know where they're going to go. So to the extent that they continue to stay at those levels, then there will be a better benefit than if they continue to tick up like they've been doing in the last couple of weeks.

We'll go next to William Bremer with Maxim Group.

Good morning, José, George and Marc. José R. Mas - Chief Executive Officer & Director: Good morning, Bill.

Nicely done. Let's go right to Mexico. The first project 143 miles, what is the underlying diameter of that award. And then, the second one, I did hear, it was 42-inches. How many miles was the second award? José R. Mas - Chief Executive Officer & Director: So they're both 42-inch projects. The first project is 143 miles, the second project is 194 miles, so it's about 350 miles in total.

Excellent. And have they both been placed or are they going to be placed eventually into backlog. How should I look about that and then more importantly, the underlying margins there and potentially for George, the DSOs in that market, what should we expect there? José R. Mas - Chief Executive Officer & Director: I just want to make a couple of things clear again, right. So when we talk about that market, so we will be working for the Energy Transfer, these particular projects happen to be in the U.S., so we will be getting paid like any other pipeline project, there's going to be a lot of, these projects will ultimately – a big degree of these projects will be financed through project financing. So that's how, a lot of our existing customers fund their work, this is going to be no different. So we expect to be paid under the same terms and conditions that were typically paid for in our project work. What was the second part of the question?

Will you be able to utilize your other tentacles in Electrical Transmission and some Power Gen as well, maybe encompassing some other components that maybe needed as the build out occurs down there? José R. Mas - Chief Executive Officer & Director: So obviously, there's no high voltage transmission on this project, but there is a lot of, we are building a header and the header requires a lot of services that we also procure outside of pipeline construction that we also hope to be involved, and so the answer is, yes.

We'll go next to Noelle Dilts with Stifel. Noelle C. Dilts - Stifel, Nicolaus & Co., Inc.: Hi, good morning. Thanks for taking the question. My first question relates to backlog. You obviously had some very strong large project bookings in the quarter. I was a little bit surprised to see oil and gas like flat sequentially. Can you talk about, if you kind of had to go back and maybe reevaluate your Canadian backlog, was there a bit of offset there, just some of these large project wins. And then secondly, can you tell us either organic backlog growth or maybe just quantify that acquired WesTower backlog? José R. Mas - Chief Executive Officer & Director: Sure. So from an oil and gas perspective, again, we were awarded about $500 million during the fourth quarter, I'd say a little bit of that worked out, performed, and executed in the fourth quarter. The balance of that was almost one-to-one bookings in the fourth quarter. A lot of the things that we've talked about like were not in the – question that I didn't ask that, that Bill asked was, when would this be put in backlog. So a lot of the stuff we've talked about was not yet in backlog as of December 31. Two, these projects in Mexico that we've talked about, one of the projects has now been signed, we do expect to get the second one signed before the end of this quarter. But those are the contracts with CFE, again we will be having a construction contract with Energy Transfer, so depending on the timing of when we actually execute those contracts, it will or will not be in backlog in Q1. For all intents and purposes in our mind, it's in backlog, whether we actually…

We'll go next to Vishal Shah with Deutsche Bank.

Hey guys. This is Jerimiah on line for Vishal. José R. Mas - Chief Executive Officer & Director: How are you?

Good. So just wanted to ask about the future Mexican opportunity, you mentioned a couple of other projects that are going to be bid out soon. So what's the kind of timeline that you're looking at for those and when could you actually see a construction timeline ahead of you? José R. Mas - Chief Executive Officer & Director: So again just to reiterate what I said there is about another dozen projects that they've announced that we'll be bidding over the course of the next year, obviously if they bid those and we win, you don't start those projects right away from a CFE perspective because these are our peer designed construct and operated contracts. There is a whole other segment to the Mexico market, which is a lot more like what we do in the U.S. which is direct awards from, for example like the Pemex. We really didn't cover that today. We're also been actively engaged around that and we are hopeful that we're going to win some stuff there too. But we didn't cover that. In our minds, we expect further awards in 2015 and we expect that market to be very robust for us going into 2016 and beyond.

Okay. And then also on a different note here. When we saw this two-week extension to the wind PTC at the end of last year, we heard some potential, I guess, future eligibility for wind PTC. And so I guess is that influencing your business directly? Or do you see kind of more of an uptick than you might have expected this year because of that? José R. Mas - Chief Executive Officer & Director: We were always expecting a really good 2015. I think if we're surprised, we're probably surprised at the strength of what we're now seeing for 2016. We think 2016 is going to be a better year partly due to that small extension because some are using that to push construction activities into 2016.

We'll go next to Ali Hemmings with D.A. Davidson. We'll go next to Veny Aleksandrov with FIG Partners.

Good morning. George L. Pita - Chief Financial Officer & Executive Vice President: Hey good morning, Veny.

My question is on the margins side. You had a couple of great years, kept acquiring companies, growing organically and EBITDA margins have improved. And now because the business went away, when you ramped up production, the margins are getting hurt. So what can you do and I know it's a very tough process, but how can we go back to the double-digit-plus EBITDA margins? José R. Mas - Chief Executive Officer & Director: So look, for us, it's all about execution. We're not making excuses, but obviously the change in the market demand for our services and the rapid changes that we've had to face in the business over the last year, in a couple of our markets have really negatively driven our margins. So, we've got to do a better job at that, we got to execute better. We got to understand and model our business better and right size quicker. I think we're doing that, and I think you'll see the fruits of our labor over the next year. And I think going into 2016 where we are actually expecting some very solid growth across a number of our different segments, I think we're hoping to get to levels that we haven't previously seen.

Perfect. And my second question, the $15 million integration cost that you talked about in addition for the first half of 2015 is not in the guidance, right? George L. Pita - Chief Financial Officer & Executive Vice President: The integration costs are shown as a Reg. G adjustment in our guidance, Veny, so that when you look at them, on an adjusted basis, we've not included those costs just like we did in the fourth quarter. And we said, they were $5 million in the fourth quarter of 2014. We expect about $15 million thereabouts in 2015 and expect that to be principally done by the third quarter.

At this time, I would like to turn the call back over to José for any additional or closing remarks. José R. Mas - Chief Executive Officer & Director: Well again, I just want to thank everybody for participating today. We weren't necessarily happy with the year that we had. We're looking forward to moving on and look forward to updating everybody on our first quarter call. So thank you for participating.

That concludes today's Q4 and 2014 year-end call. Once again, we want to thank all of you. You may now disconnect.