Welcome to MasTec's First Quarter 2016 Earnings Conference Call initially broadcast on May 6, 2016. Let me remind all the 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, please go ahead.

Thanks, David. Good morning, everyone. Welcome to MasTec's first quarter 2016 first quarter conference call. The following statement is made pursuant to the Safe Harbor for forward-looking statements in the Private Securities Litigation Reform Act of 1995. In these communications, we may make certain statements that are forward-looking statements, such as statements regarding MasTec's future results, plans and anticipated trends in the industries where we operate. These forward-looking statements reflect the company's expectations on the day of the initial broadcast of this 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 risk 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 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 measure not reconciled in these comments to the most comparable GAAP measure can be found in our earnings press release, or in the Investor Relations section of our website located at mastec.com. With us today we have José Mas, our Chief Executive Officer; and George Pita, our EVP and Chief Financial Officer. The format of the call will be opening remarks and analysis by José followed by a financial review from George. These discussions will be followed by a Q&A period, and we expect the call to last about 60 minutes. I'll now turn the call over to José. José? José Ramón Mas - President, Chief Executive Officer & Director: Thanks,…

Thank you. We'll take our first question from Alan Fleming with Citibank.

Hi, guys. Good morning. George L. Pita - Chief Financial Officer & Executive Vice President: Morning. José Ramón Mas - President, Chief Executive Officer & Director: Morning, Alan.

José, you've been talking about Transmission improving for several quarters. And we know you have one large project ending soon and it sounds like you're being a little bit more cautious here until the market improves. But maybe just talk a little bit more about what's been so challenging in getting this business back to profitability even with the restructuring you've done. And how do we get comfortable that you've got this business right-sized to where it needs to be? Do you need to do something more significant, and have you even thought about exiting this business altogether? José Ramón Mas - President, Chief Executive Officer & Director: Well, look, I think George alluded to it in his comments. We've got, over the last two quarters we've had one project that's faded by $30 million. I think that's been the largest driver of the issues that we've had in Transmission. Obviously, we went through all the issues with our internal investigation and a lot of it had to do with that group last year. So I think a lot of people's times, focus and energy from their day-to-day business unfortunately was spent doing different things. And we talked about the impact that that was having in our business and unfortunately we're still seeing the results of that. So I think we're doing a lot of the right things. We feel good about the projects that we're winning. We feel good about the opportunities that we're seeing, the level of opportunities that exists. But there's no question that we're tired of talking about it, we're tired of missing our numbers quarter-after-quarter. We were fully cognizant of the fact that the level in which we've said and a level in which we've said we're going to improve over the last couple of quarters we haven't executed on. That needs to stop and we need to perform. And there's really nothing else to say about it. It's time to perform in that business. We think we're getting there. And if we don't perform then, obviously, we need to look at what we do relative to that business to put ourselves in the best position to succeed as a company. We've got great opportunities ahead across all of our segments. We're very comfortable with where our business is headed. And we really don't have room to have anything drag us down and we get that and we understand that. And we're going to manage that effectively.

Okay. I appreciate that. Maybe just switch gears to Communications. As wireless starts to ramp and it seems like you have very good momentum in the install-to-the-home business. Maybe just talk a little bit about the potential of adjusted EBITDA margin here in Communications going forward. I mean, you've done a lot of work over the last 12 to 18 month to take cost out of the wireless business. So, how do we think about utilization versus maybe a year ago and where do you think you could be a few months from now as wireless ramps? José Ramón Mas - President, Chief Executive Officer & Director: Look we're getting more bullish. We had a good quarter in Q1. I think as we think about the full-year now, we're expecting EBITDA margins to be higher than we did at this time in our last call. So, internally, we're seeing an improvement in those margins. We expect that margin, that improvement to stick for the balance of the year. So we're expecting nice margins, a nice uptick from 2015. That's a positive sign. We're very encouraged about the levels of activity that we're seeing across all of our businesses in Communication, whether its wireless, whether its installation opportunity, whether it's further wireline growth, it's a solid industry right now. A lot of good things are happening. We're pretty excited about it and I think – I really think we're starting to perform and execute at a very solid level there.

And next we'll go to Alex Rygiel of FBR Capital Markets. Alex J. Rygiel - FBR Capital Markets & Co.: Thanks. Good morning, José and team. José Ramón Mas - President, Chief Executive Officer & Director: Hey, good morning, Alex. Alex J. Rygiel - FBR Capital Markets & Co.: The first question, your first quarter results, clearly if we were to back out sort of those two problem projects, your core results outperformed your internal expectations which is great. How come your full year guidance didn't get raised, because I would have thought that with that outperformance of the core business in the first quarter, if you rolled that forward in 2Q and beyond that that possibly could have caused you to raise your full year numbers? Are you just being conservative here? José Ramón Mas - President, Chief Executive Officer & Director: A couple of things, right. I think, one, when you look at our Transmission business, what we've been saying over the course of the last few quarters is we expected 2016 to be slightly profitable, mid-single-digits. So, if you think about a $15 million positive Transmission EBITDA year now, we show up with a $23 million EBITDA loss in Q1 that by itself is a $38 million swing. So, in essence, by being able to absorb that swing, in theory, we are increasing our overall numbers. That $38 million has got to come from somewhere else and we think we're delivering that to really stay flat. With that said, when we look at guidance, especially in the Oil and Gas market, all of our revenue expectations for the year are already in backlog. We've made I think conservative assumptions relative to how much of that backlog we're going to be able to fully execute in 2016. So,…

And next we'll go to Matt Duncan with Stephens.

Hey, good morning guys. José Ramón Mas - President, Chief Executive Officer & Director: Good morning, Matt.

So José, I was hoping we can start by talking a little bit more about the increased optimism in Communications and you talked about this some in your prepared remarks, but can you maybe tell us where versus wireline, wireless, and installation services, where among those three are you more positive? Is it all three of them or is there one in particular that's really picking up for you. José Ramón Mas - President, Chief Executive Officer & Director: Look, our installation business was up 25% in the first quarter. Our wireline business was up 31% in the first quarter. And we're saying we expect our wireless business to be up double digits on a full-year basis. So across the board, we're seeing excellent results. We're seeing great opportunities. You know, obviously, especially from where we are from a total revenue perspective, we may have bigger opportunities from a growth perspective and installation and in wireline than we do in wireless, but they're are all healthy markets. Wireless is improving, visibility in wireless is improving. And I think longer-term outlook in wireless is improving with the advent of 5G which we're really not going to see in 2016. That's going to be a 2017 and beyond which I think is going to be great for the industry. I think wireless local loop gets started in 2016, but the reality is the big impact and the positive impact of that is going to be in future years. I think we've seen a lot of carriers. Some, in particular, that have delayed some of their strategies and I think we're going to see a nice uptick as the years come. So a lot's written about wireline. Everybody is following that, everybody is tracking it, great opportunities there. I think that the strength of our installation business has quite frankly somewhat surprised us. We're seeing a lot of opportunities related to that, both within our existing customer base and others. And, again, it's almost across the board. It's performing very well right now.

Okay. So it's safe to say then that that segment's probably a double-digit grower this year, it sounds like given the growth rates you're seeing in each of the three pieces. José Ramón Mas - President, Chief Executive Officer & Director: Yes.

Okay. All right. And then the other thing I had is just on the DAPL project. Can you give us some idea where in this quarter you expect to actually begin construction? I think it has been sometime in May last I checked. I just don't know what the current expectation is there. I know the contractor that's building the storage for that job has already begun construction on that piece. And is the completion date for that job still by year-end? It sounds like it must be if you're going to work off most of the Oil and Gas backlog that you've got there. José Ramón Mas - President, Chief Executive Officer & Director: What we tried to do with guidance was give ourselves room. We've been through this before where you're starting a project, you expect to be on it, you get delayed a week or two and we really tried to take a very hard and conservative view on that. Our expectations haven't changed. We expect to start this month. We expect to be substantially complete by yearend. And we're tracking towards that, but we're buying ourselves a little bit of room in case something unforeseen happens.

Okay. Thanks. I'll hop back in queue. José Ramón Mas - President, Chief Executive Officer & Director: Thanks.

All right. The next we'll take our question from Noelle Dilts with Stifel. Noelle Dilts - Stifel, Nicolaus & Co., Inc.: After this very strong growth you saw in install-to-the-home, can you help us understand if that's coming from new geographic territories or more work in your existing territories? And then on their conference call, AT&T did talk about accelerating single truck rolls in the back half of the year, but given the growth that you're seeing, I mean, is there a way to think this as a benefit? Are you actually seeing a benefit from that? Can you just help us understand what you're seeing? José Ramón Mas - President, Chief Executive Officer & Director: Sure. What we've said all along is we think AT&T is doing a good job with DIRECTV. They have big plans, obviously, to grow their customer base and expand their product offering. I think we're seeing a benefit to that. I think if they continue and they reach their goals, they're going to need a lot more technicians to be able to do what they want to do. We're going to play a role in that. We're not going to be the only ones that play a role in that, obviously, in their existing footprint. But we feel good about where we're at. We feel good about the level of work that we're going to enjoy. And we really don't expect much of a difference through the balance of the year. So, it's – like we've said in the past, we don't really expect that to affect us. I know we keep getting asked the question but I think we're demonstrating that it hasn't affected us and I think we feel good about it not really impacting our business in any significant way in the second half of the year and beyond. Noelle Dilts - Stifel, Nicolaus & Co., Inc.: Okay. And then on the problem Transmission job, I know you're 85% done, but can you give us a sense of just how much remaining revenue is coming for the rest of the year just so we know how much is moving through the income statement at breakeven? George L. Pita - Chief Financial Officer & Executive Vice President: Hey, Noelle, it's George. For the balance of the year, it's about somewhere in the neighborhood of $40 million to $50 million that's remaining. Noelle Dilts - Stifel, Nicolaus & Co., Inc.: Okay. Thanks.

And next we'll go to John Rogers with D. A. Davidson. John Bergstrom Rogers - D. A. Davidson & Co.: Hi, good morning. Can you hear me? (49:04 – 49:17)

Capital Markets. Just one moment. Go ahead Matt Tucker.

Sorry about that. I was getting static on my line. First wanted to ask about the AT&T DIRECTV merger. I think there has been some concern that cannibalized some of your work. But in prepared commentary you said you're actually seeing increased demand, I guess, stemming from that. So could you just provide a little bit more color on how you see that affecting your business and our outlook? José Ramón Mas - President, Chief Executive Officer & Director: Sure. Again, we're very excited about the opportunities with DIRECTV and AT&T. We think AT&T is doing a good job relative to the sales side of DIRECTV. We think they've got big plans and to the extent that that they perform at their excitations, we think there's going to be plenty of work for everybody. I think we've demonstrated that in our results, and as we've said we don't really expect that to impact our business in any negative way for either the remainder of the year or beyond.

Great. And then I wanted to ask about the Dakota Access again. I'm sorry to beat a dead horse. You mentioned it is kind of the startup timing is a variable within your second quarter guidance range. And as Matt mentioned, we know that parts of it are under construction. What is causing the uncertainty at this point in terms of when your work starts up? Are there permits that are still needed or if you could just comment on that please? José Ramón Mas - President, Chief Executive Officer & Director: Well, I think if – I'd like to refer back to Energy Transfer's call. They had their earnings call yesterday and they talked about receiving the full required critical permits on that job. Again, there's really – we have a very clear indication of when we expect to start. Again, we're being cautious. We've lived this before. We don't want to give a date and then something happens. And it's a week or two gets delayed for whatever reason you can imagine and it has a dramatic effect on our financial impact. So we tried to build in some cushion. We expect to start this month. We're on track to start this month. We're mobilizing to start this month. But, again, we're being cautious around being very specific around when and how much because it may or it may not change.

Great. Thanks, José. José Ramón Mas - President, Chief Executive Officer & Director: Thank you.

And next we'll go to Jason Wangler with Wunderlich.

Hey, good morning, José. José Ramón Mas - President, Chief Executive Officer & Director: Morning, Jason.

Was just curious -- you mentioned in your prepared comments about a couple more customers kind of in the install-to-the-home type businesses. Was curious if you could maybe even just give us some indications of what kind of products or services you'd be providing. Obviously, the Sprint stuff sounds kind of interesting obviously, and that's been going well. But just an idea of what those markets look like as you start to get into them. José Ramón Mas - President, Chief Executive Officer & Director: I think the important part of the commentary is the fact that customers across the country are really starting to realize and I think recognize us as having a leading third-party – as being the leading third-party fulfillment company. Again, I think a lot of people are trying to differentiate their products through customer touching experiences, which I think is important and I think it's what we can fill in the market. We don't really want to get into specifics because I think a lot of the things are fairly new and innovative. And I think we'll be ready to talk about them as we deploy them in larger scale, so over the course of the next couple conference calls, really hope to share a lot more on that but we're not ready to do so today.

Okay. That's fair. And this one may be a little bit early too, but just obviously with the work in Texas and the Waha starting up, how are you seeing the Mexico market develop actually in-country? Are you seeing anything going on there or just kind of your take on what's been happening in the last few months there? José Ramón Mas - President, Chief Executive Officer & Director: Look, it's a fantastic market. It's going to be incredible. We've been working there – we've been there for a long time now. We're chasing a lot of opportunities. Obviously, the market's been disruptive with commodity prices. I think we've seen a shift in how work's going to get done there, but, again, we've been a very active participant, and I think it's going to bode well for us. I think we're getting really close, and we're hoping in the near future it's going to have a significant positive impact to our business.

I'll turn it back. Thank you very much. José Ramón Mas - President, Chief Executive Officer & Director: Thanks.

And next we'll go to Justin Hauke with Robert W. Baird. Justin P. Hauke - Robert W. Baird & Co., Inc. (Broker): Yeah. Hi, thanks, guys. So, I guess, I just wanted to ask a question about the Oil and Gas margins and how to think about them in the second half. And really the reason why is with the change from the Waha business and that flowing through as equity income, I think that just flows through as income to your EBITDA in that segment. And so the mid-teens that you put up this quarter ex the charges, that would be one of your best margin quarters. So I'm trying to think about the second half. As that Waha stuff comes in, you get more of that income, plus you get the utilization. I mean, are we thinking EBITDA margins could be closer to 20%? José Ramón Mas - President, Chief Executive Officer & Director: So, couple things. First, we're going to continue to have a Canadian business that's going to be a drag on overall EBITDA margins and we understand that and accept that. We're, again, longer term we're very bullish on the Canadian market and what it means for our company and the opportunities that are going to present themselves there. There is no question that as these larger jobs start and utilization levels pick up, that the opportunity for margin expansion continues. I didn't really follow you relative to Waha equity and things like that. The actual equity that we have on the project -- there's really no flow-through on financials there. That project actually won't start generating revenues until it's complete and it's collecting dollars. So, it's not affecting segment EBITDA, so that doesn't play a role in it whatsoever. It's strictly on the work…

We'll go to our next question from Avondale Partners, we have Dan Mannes.

Thanks. Good morning, everyone. José Ramón Mas - President, Chief Executive Officer & Director: Good morning, Dan.

First of all, a quick follow-up on the Communications side, margins ex the settlement about 10%. Given the higher, the growth in DIRECTV which I guess, I've assumed is a higher margin piece. Should we anticipate maybe some more benefit there or is there may be some offset as you're doing kind of these demos from the cost side? Basically, more broadly, how should we think about that as the mix is changing and we're seeing maybe more of the install business? José Ramón Mas - President, Chief Executive Officer & Director: Look, again, we're pretty excited with our performance in the first quarter. We're expecting a margin uptick in that business relative to last year. So there's no question that on a full-year basis we now have a more optimistic view in our Communications business than we had going into the year. And we expect nice year-over-year improvement that I think is driven by the whole of the business. Obviously, that's inclusive of what's happening in installations but it's also inclusive of what's happening in wireline and in wireless. No question to your last comment, we are investing in that business both from a wireline perspective and an installation perspective. We've got a lot of growth markets there, a lot of areas where we're adding resources and there is some drag that comes with that, but I think over time it more than pays for itself and I think that's all inclusive in the margin profile that we're talking about for the year.

Makes sense. And the secondly on the Electric side, just listening to your initial comments, given some of the end-market challenges and some of the execution issues, should we think about you guys managing this maybe as a smaller business in the near-term, or are you still having challenges with overhead absorption? I just want to make sure I understand kind of your plan here. Is it to try to grow it back and cover overhead or is it maybe to shrink it down and make it a little bit more manageable? José Ramón Mas - President, Chief Executive Officer & Director: It's a good question and I think what we're talking about today is saying, we're not going to chase revenue for the sake of chasing revenue and just trying to cover costs. I think we're going to right-size the business to the size of where we think we can be most effective. Obviously, that depends on market conditions and the market is evolving. The market is getting better. So I think we're going to reevaluate that on a go forward basis. But, today, our goal is to manage the business at the best size, in which we think we can execute and it probably means shrinking the business or running at a lower level than we historically had rightsizing it, making it profitable and then really taking advantage of the opportunities as the market improves.

That makes sense. Thanks. José Ramón Mas - President, Chief Executive Officer & Director: Thanks, Dan.

And next we'll go to William Bremer with Maxim Group.

Good morning gentlemen. José Ramón Mas - President, Chief Executive Officer & Director: Good morning, Bill.

Can we first go into pricing of what you're seeing primarily in the Oil and Gas segment? What is coming in the door now versus say six months ago? How is the pricing there? José Ramón Mas - President, Chief Executive Officer & Director: Again, it's a big industry with lots of subsections, right. So we've got – you can't generalize, so obviously Canada is very different than what we're experiencing on long-haul. The long-haul market's great. It's been really good for a long time. Obviously, there's an enormous amount of demand for services, so we don't expect that to change. When you look at some of the tighter markets like Canada and maybe even some of the smaller gathering stuff, those are much tougher businesses, because people are really trying to keep their people busy and probably bidding things lower than they should be. We're lucky to be in a position today where we don't have to chase that, where we're in a different market and we can allow that to kind of play out. Again, we alluded in our comments to the fact that we do expect there to be attrition of contractors over the next couple of years. If you're not in a sweet spot in that business, it's a tough market. We think that's healthy for the market. We think it's healthy for us. And we hope to be able to take advantage of those opportunities as they happen.

The question really was really domestic on pricing there, if you're seeing the quarter on long haul. José Ramón Mas - President, Chief Executive Officer & Director: Again, it's excellent.

Okay. We had a lot of weather issues in this second quarter. Is that going to be affecting any of the startups and how do you see that affecting the overall quarter? José Ramón Mas - President, Chief Executive Officer & Director: No, look, we're starting – our start-ups – we started Waha. Again, we've talked a lot about that DAPL today and when we expect to start. So, now, we don't really expect to have much or any impact on the jobs that we're starting. And I don't think the weather pattern has been any dramatically different than what it always is.

Okay, great. Hey George one for you on CapEx. I think you said net of disposals in the range of $140 million to $160 million; if that's correct, can you give us a little break down of where you're making those investments? George L. Pita - Chief Financial Officer & Executive Vice President: The majority of that investment would be – pretty typical with the way we've done in the past, but we'll see increasing investment in the Oil and Gas sector, given the strength that we're expecting both for balance of 2016 and then into 2017.

Okay. Thank you.

And next we'll take Chad Dillard with Deutsche Bank.

Hi, good morning. José Ramón Mas - President, Chief Executive Officer & Director: Hey, good morning.

So, just wanted to dig into the install-to-home growth this quarter. You guys did about 25%. Just want to understand whether it was more coming from the DIRECTV installations, the AT&T going from DIRECTV or is it actually market expansion? And then also, I know that AT&T talked about DIRECTV subscriptions wrapping up in the second half of the year. And, again, you guys have put up pretty great numbers in the first quarter. So what I'm trying to understand is from here do you think you can actually accelerate that year-over-year growth through the rest of the year? José Ramón Mas - President, Chief Executive Officer & Director: So, the first answer is it's a combination of everything. We saw growth across the board. We experienced really nice growth with AT&T as well in that business. So it wasn't like it came off the backs of others, it was actually diversified growth across a number of customers including our largest customer. We're very bullish on where the business is headed. Like we said earlier, we think DIRECTV has or AT&T has big plans for DIRECTV and if they can execute on that, there's going to be plenty of work for everybody and plenty of opportunities for us. So we're hopeful they're able to execute and we're here to support them.

And then can I get your updated thoughts on Canada. I think in the last call you mentioned a 30% decline. Has that changed, and how far are we from bottom in this business? José Ramón Mas - President, Chief Executive Officer & Director: I think now we're at the bottom. We've taken a very similar approach than what we just talked about in Transmission where we have a good presence in the market. We're not really chasing work for the sake of keeping our people busy. We've got good customers that we're supporting that are going to allow us to stay in market and have a good presence there. And as the market comes back, I think we're going to be in a great position because I think a lot of people – again I think it's going to be a lot of the same things where we're going to see a lot of contractors and a lot of vendors go away. And as the market comes back, I think it's going to be a less competitive environment that will give us an opportunity to actually have a better business long term than what we had in the past.

Thanks. I'll jump back in queue. José Ramón Mas - President, Chief Executive Officer & Director: Thanks.

That is all the time we have for questions today. I'd now like to turn the call back over to José Mas for any additional or closing remarks. José Ramón Mas - President, Chief Executive Officer & Director: So this concludes our first quarter call. Really want to appreciate everyone's time and spending it with us today and we look forward to updating you on our second quarter call. Thank you.

And that does conclude today's conference.