Welcome to the MasTec's First Quarter 2017 Earnings Conference Call initially broadcast on May 5, 2017. 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, Regina. Good morning, everyone, and welcome to MasTec's first quarter 2017 earnings conference call. The following statement is made pursuant to the Safe Harbor for forward-looking statements described in 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 are the company's expectations on the day of the initial broadcast of this conference call and the company does not undertake to update these expectations based on the 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 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, our 10-Q or 10-K or on the Investors and News sections of our website located at mastec.com. With us today, we have José Mas, our CEO; and George Pita, our CFO. 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. We had another great quarter and have a lot of important things to talk about today. So, I'll turn…

Thanks, José, and good morning, everyone. Today, I'll cover first quarter financial results, including cash flow, liquidity and capital structure, as well as our increased full year 2017 guidance expectations. In summary, we're pleased with our strong first quarter results and to be in the position of increasing our full year 2017 guidance expectation to yet another new record level. While 2017 is shaping up to be a great year, we're also very excited about momentum and growth prospects in 2018 and beyond. As Marc indicated at the beginning of the call, our discussion of financial results and guidance will include non-GAAP adjusted earnings and adjusted EBITDA. Reconciliation and details of all non-GAAP measures can be found in our press release, on our website, and in our SEC filings. When addressing our first quarter 2017 performance, adjusted results exclude the impact of approximately $7 million net of tax related to our proportional share of an expected project loss on a non-control Canadian joint venture. We acquired this 35% minority joint venture interest as part of the Pacer acquisition in 2014 and have had minimal direct construction involvement since that time as the joint venture's sole activity is constructing a bridge in Western Canada, a type of service MasTec does not otherwise engage in. Construction and project management under this venture are directly managed by a third-party and MasTec's interest automatically terminates upon project completion. The project has experienced various delays and increased costs over an extended period. And our joint venture partner currently expects substantial completion towards the latter part of 2017. While we have reflected the full amount of our promotional share of those projects' losses, the joint-venture is actively pursuing several viable alternatives for potential recovery. In addition, MasTec is also pursuing recovery from other parties. Because this…

Thank you. And we'll take our first question from Matt Duncan with Stephens. Please go ahead.

Hey. Good morning, guys. Congrats on yet another great quarter. José Ramón Mas - MasTec, Inc.: Thank you, Matt.

So first question I've got is just with respect to the Oil and Gas segment and what's driving the growth here in the first quarter because my recollection is Rover really didn't get going from a construction perspective until the 2Q? Maybe if you could talk about an update on Rover progress. And then what were the projects specifically that we were closing out there in the first quarter to help the margin level? José Ramón Mas - MasTec, Inc.: So, look, Rover is going exactly as we expected. We were able to finish what we needed to do in the first quarter to get that project rolling and going. We expect to finish that project and be pretty much complete by the end of this year. We'll have some cleanup work that goes into next year. I think our Oil and Gas business is pretty broad-based. We've got a number of projects that we've worked in Q1. Obviously, we were coming off the completion of the Mexican projects. We finished the Dapple project. So we had a couple projects that finished, a bunch of projects started. We're seeing a lot of activity in the shales again, of which, quite frankly, we're trying to take advantage of that as best as we can, although we don't have a significant amount of availability left. But we're working it. We've got some pockets of work we can continue to do. So we're just seeing very strong broad-based activity across our entire Oil and Gas, maybe with the exception of Canada. I still think we're seeing some weakness in Canada, although we are seeing slight improvements already.

Sure. And then second question, just on outlook for each segment both from a revenue growth and margin perspective for this year. And in Communications if you could break it down between the various pieces that would be helpful as well. José Ramón Mas - MasTec, Inc.: We're super-optimistic, been doing this a long time. I don't think we've ever seen the broad-based opportunity set that we're seeing today across all of our Communications businesses, quite frankly, across all of our businesses, not just Communications. Specifically, in the Communications, we went into this year knowing we had some headwinds, right. We knew that Google was slowing down. We knew that our direct-to-you phone delivery service was probably at risk of being shut down. We knew that one of our customers on the security side was going to slow down their business. So we went into this year and we'll probably have, just based on those three things I mentioned, somewhere between $120 million and $150 million of headwinds for the year. We had them in Q1. I think we more than offset that which we were very pleased with. I think we're seeing a lot of activity and we feel comfortable that we'll be able to offset those headwinds and then some – not really change in our outlook. I think we still have a relatively conservative outlook to the balance of the year, but we expect it to be a somewhat flattish year and then really expect to see significant ramp going into 2018, driven by primarily two big factors. One, really the beginning of 5G. 5G is really not a 2017 play, but there is a lot of things happening around 5G that give us tremendous confidence that we're going to start to see a big boost in 2018 for a long time. And then what we're seeing relative to fiber deployment. Some are very active in 2017. Others are going to be very active in 2018. So you look at what Verizon announced. There are going to be outer year play in the 2018 and beyond, but it's just what's happening in that market today is fantastic. It's way beyond what our expectations were and what we could have hoped for. And I think we'll take advantage of it. And I think it will play well for MasTec and give us, again, tremendous growth opportunities for years to come.

And we'll take our next question from Tahira Afzal. Please go ahead.

Hi, José. Congratulations to you and your team on a solid quarter. José Ramón Mas - MasTec, Inc.: Thank you, Tahira.

So, José, first question is just, I understand the back half you need to fill out on the pipe side. But if I look at your second quarter guidance, the dip down assumption on margin seems fairly conservative. So any color you can provide on what's your assumptions on profitability and why? Because if your margins are similar to what they were in the first quarter your guidance could be up by another $0.20. José Ramón Mas - MasTec, Inc.: Yeah. Well, I think, if you look at Q2 on a year-over-year basis, we are guiding to much improved margins on a year-over-year basis. I think, look, as we think about guidance overall in our entire business, we're being somewhat conservative. We understand that. We don't have pipeline margins in our guidance at Q1 levels. We've talked about that in the past. We had an excellent 2016 from a pipeline perspective. We've had an excellent first quarter. The opportunity to continue to deliver on really high pipeline margins is there, but it's about execution and it's about things going right. So we're conservatively modeling that out as the year goes on, whether it's Q2 or the back-end of the year. If projects go the way that we hope they can and performance goes well and we execute and we don't have any issues, then the opportunity is there to do a lot better. But I think, as we look at it, we've been prudent and conservative based on what we've seen historically. And I think that's kind of how we've built our guidance for the balance of the year.

Got it, José. And really a follow-up to that, more on the telecom side. If you look at Verizon's CapEx spend trends in the first quarter, on the wireline side, on the fiber side it seems they are already up 12% year-on-year. As we look forward and we try to translate all that fiber miles and quantify it in terms of year-on-year growth, are we looking at the mid-teens for the industry and much higher for you, because you are growing within that? Can you add some perspective on what the 5G and the general fiber upgrade cycle means to you in terms of growth rates? José Ramón Mas - MasTec, Inc.: Improving every day is probably what I would say. On the wireless side, again, every carrier is out there talking about – maybe a little bit differently each carrier, but they are all talking about their 5G initiatives and what it's going to mean long-term. Again, I think, we're going to see a lot of activity starting in 2018 across a number of carriers. It's going to be a very active market. We're going to get our share. I think it's going to be very good for our wireless business. We're very excited about that. When we think about the wireline side of it, for us, historically, it hasn't been our biggest business. So I think the upside potential for us there is really, really good. I think we can grow it at very high levels. We've done very, very well this year on project wins and really establishing relationships with new customers. We're very excited about our SEFNCO relationship and what that brings to us and the customer relationships that it brings. So we're really excited. We think the opportunity is there for us to have really good out-years in that business and I think that the sentiment is only getting better. I think we've been very positively surprised with what's happened over the first four months or five months of this year.

We'll take our next question from Noelle Dilts with Stifel. Noelle Dilts - Stifel, Nicolaus & Co., Inc.: Thanks. Good morning. José Ramón Mas - MasTec, Inc.: Good morning, Noelle. Noelle Dilts - Stifel, Nicolaus & Co., Inc.: So, first just focusing on the Communications business. For years, we've sort of talked about wireless being the higher margin work and install-to-the-home and wireline being a little bit lower. Just given the changing dynamics in the wireline market, how should we think about the margin profile going forward? José Ramón Mas - MasTec, Inc.: I don't think anything changes. I think that wireline has the opportunity to get a lot better. Wireline has always dragged our margins in the communications group a little bit. It's greatly improved over the course of the last couple – actually the last couple years. I think the opportunity as we get bigger and as utilization picks up that only gets better. So we're probably very encouraged about – from current levels, as more of the work moves into wireline, we feel really good about its ability to increase margins and not really drag margins down of the whole segment. Noelle Dilts - Stifel, Nicolaus & Co., Inc.: Great. And then shifting over to Transmission, given the optimistic outlook you have for 2018 and into 2019, combined with the improvements that you've made in the profitability of that business, how should we think about where you think margins can go over the longer-term as we look out over the next few years? José Ramón Mas - MasTec, Inc.: Look, we had – we actually had a very good second quarter in terms of bookings in that business. We're very excited about other future opportunities that exist for us that we think we'll be successful on some. We're going to see hopefully a lot of growth in that business in 2018. I think if we do there is no reason we shouldn't get back to our historical higher margin levels in that double-digit side, which are obviously significantly different than where we are today and where we've been in the last two years. So, again, very excited about that business and where it's headed. Noelle Dilts - Stifel, Nicolaus & Co., Inc.: Great. Thanks. José Ramón Mas - MasTec, Inc.: Thank you, Noelle.

We'll take our next question from Alex Rygiel from FBR & Co. Min Chung Cho - FBR Capital Markets & Co.: Good morning. This is actually Min for Alex this morning. Congratulations, José, on a fabulous quarter. I was wondering if you could provide any additional detail on the SEFNCO acquisition, just in terms of trailing 12-month revenue, just what their customer base looks like. I understand it's more cable, kind of who their largest customers are and just in terms of their margins versus the Communications margins at MasTec? José Ramón Mas - MasTec, Inc.: Sure. So, SEFNCO reminds me a lot of the nsoro acquisition that we made years ago. It was roughly same size types businesses. SEFNCO is roughly $100 million annual business. It performs at roughly the same margins that we do in our Communications segment. Their biggest customer is Comcast. They work for other cable companies as well. And what we love about it is it really brings us back into that cable TV space that we haven't been in in a long time, really gives us the geography that we haven't performed a lot of work in, which is the West Coast, especially on the wireline side. So it opens up a tremendous amount of opportunities across a lot of different customers both existing SEFNCO customers, as well as MasTec customers. We haven't included SEFNCO in our backlog numbers. So I think that will definitely help. From a profitability perspective, we think depreciation and amortization for the balance of the year will roughly equate to what their earnings will be. So we don't see a big EPS pickup, but I think we've conservatively guided them for the balance of the year and are really looking forward to seeing them grow and what we can…

We'll take our next question from Adam Thalhimer with Thompson Davis. Adam Robert Thalhimer - Thompson Davis & Co., Inc.: Hi. Good morning, guys. Great quarter. José Ramón Mas - MasTec, Inc.: Good morning, Adam. Adam Robert Thalhimer - Thompson Davis & Co., Inc.: José, on SEFNCO, you said it will get you into the cable business, which you haven't been in for a while. What kind of demand trends are you seeing on the cable side? José Ramón Mas - MasTec, Inc.: I think it's similar to all of the other broadband/Internet providers. I think they're going to have their own rounds of upgrades. They're going to have their own rounds of deepening fiber within their system. So, it's a lot of what we're seeing across the industry, just with another customer. And I think it gives us a great customer diversification and the opportunity for us to continue to do that not just in the West Coast, but in other markets. And this is more of actual wireline construction, not actual installation. So, it's a little bit different than what we've done in the past. Adam Robert Thalhimer - Thompson Davis & Co., Inc.: Got it. Okay. And then I'm trying to understand your 5G comments. Could there be fiber work in anticipation of 5G that starts this year? And then we're a year away from antenna work that would hit your Wireless segment. Is that the right way to look at it? José Ramón Mas - MasTec, Inc.: Well, I think, we're still – it depends on what customer we're looking at, right, and they're all a little bit different. I think everybody is deepening fiber into their system. A lot of the wireless carriers are looking at it. If you specifically look at Verizon and their…

We'll take our next question from Jason Wangler with Wunderlich.

Hey. Good morning. You mentioned a lot of the equipment issues and ramping up some spending there to make sure that you're in front of that. Could you talk to maybe the labor side of that? Are you seeing any tightness there yet or kind of what your expectations are as you start to deploy that equipment? José Ramón Mas - MasTec, Inc.: On the pipeline side, specifically, which is where we made those comments, one of the fortunate things for MasTec is we got started really early on a lot of these projects. So we've done a good job of building a solid workforce. We think we've got a fairly loyal workforce and one that's going to follow us from project to project. As we think about equipment – we still rent a lot of our equipment. So our projects are comprised of a significant amount of owned equipment. We think we've got one of the biggest fleets in North America. But in addition to that, you don't want holding out your fleet. So you look at rentals to help you from different geographic projects or projects in general. As equipment gets tighter, obviously, rental prices change and that becomes a tougher market. So some of what we're thinking about doing is just increasing our internal fleet, then not have to depend on rentals as much. So it becomes more of an equipment issue than a true labor issue, because the labor we've kind of gotten taken care of. But on a pure growth basis, labor is an issue. The market is tightening a little bit. And, again, I think based on the growth levels we've had, the amount of volume we have, we think we're an employer of choice and that will continue to help us long-term.

Thanks. And on the Communications side, the direct-to-you and the install-to-the-home, in general, are those projects now just being looked at as tweaking them, maybe bringing them back out in different ways? And obviously you'd be involved in that or just kind of where do you see that as we take a breather from the tests, if you will? José Ramón Mas - MasTec, Inc.: Again, in our business we've done a few different things, right. We've had our DIRECTV relationship for a long time. That's kind of what's allowed us to build the fulfillment network that we have. That business is doing well. We've tried to expand and really grow our business and use and utilize our warehouses and our people to do multiple things. And I think that's what we've been exploring. I still think the security market is a fantastic market with great opportunities for MasTec. It just happens to be that one of our customers is slowing down in that initiative as we look at what was happening with direct-to-you, Sprint, just a product that they threw it out as a trial. We ran it for about a year and they've decided to pull back on in. There is always going to be projects like that that come in and come out. I think we've benefited from that over the last couple years. This year will be a little bit more of a headwind related to that. But there are a lot of other things and other customers we're talking to that hopefully over time make that up. So, again, that's our business. We're excited about it. We think it's got good long-term potential. But we'll definitely see a little bit of a slowdown in that part of our business this year.

Thank you. I'll turn it back. José Ramón Mas - MasTec, Inc.: Thank you.

We'll take our next question from Brent Thielman with D. A. Davidson. Brent Edward Thielman - D. A. Davidson & Co.: Thanks. Good morning and congratulations on a good quarter. José, on the Communications margins, to get back to those kind of solid double-digit levels, do you need to see a big ramp in kind of 5G, FirstNet, or are there some other initiatives that can kind of get you there? José Ramón Mas - MasTec, Inc.: We've had a couple issues there, right. We had a lot of ramp last year in our fulfillment business. I think we're going to get the benefit of that. We're still mining the benefits of that. So we still have a lot of employees that have less than a year tenure in that business. I think as that improves, we're going to see improving margins there. That definitely hit us at the back end of 2016. We're still feeling that here in early 2017. I think our wireless business – our wireline business is in a significant ramp, right. We grew 30% year-over-year, but the reality is if you back out the fact that we didn't have the levels of Google business in this first part of the year than we did in last first part, the growth rate was actually a lot greater than that. So, we've talked about the fact that there are some depressed margins as you're growing. We'll catch up to that in time. Our wireless business has been relatively flat over the last year or so. As that ramps back up and 5G becomes a bigger part of that, I think, again we'll be able to leverage and build utilization rates which drive margins. So I'm very optimistic about where we can get to on our margins in…

Our next question comes from Bobby Burleson with Canaccord.

Hey. Good morning. So, just curious with FERC, there has been a lack of a quorum for a couple of months now. And I'm wondering, whether or not there is any impact in terms of holding back – if there is some pent-up approval kind of demand that you guys are expecting, if there is any kind of impact from that lack of additional nominees there. José Ramón Mas - MasTec, Inc.: We're not worried about it. Obviously, 2017, for us, is a year in which we've got more than we can handle on everything that's already approved. As we look at some outer-year projects, there might be some approvals needed. But we think that's going to get taken care of in short order. So it really doesn't affect our business and we're not overly worried about that at all.

Okay. Great. And then in terms of – you mentioned you're in good shape labor wise. I'm wondering, in terms of labor costs whether or not you feel like you need to be proactive about wage increases, considering how tight overall construction labor is getting. José Ramón Mas - MasTec, Inc.: Again, different parts of our business have different dynamics. We feel great about our ability to manage our labor. This is something that we've been doing. This is our business, right. So we think we've got a good handle on that. Again, we think, we've got a very loyal and solid workforce. And as the market moves, we'll adjust accordingly and our customers will pass accordingly. So, again, not something that we're very concerned at how it'll affect or impact us financially.

Okay. Thank you. José Ramón Mas - MasTec, Inc.: Thank you.

We'll take our next question from Alan Fleming with Citi.

Hi. Good morning, guys. José Ramón Mas - MasTec, Inc.: Good morning, Alan.

José, maybe another question on how to think about Oil and Gas backlogs here. I know George has said that backlog could moderate a little bit over the next few quarters, which I think is understandable given the lumpiness of awards. But do you feel like you're in a position here to end or exit 2017 with backlog at similar or higher levels as you are today? José Ramón Mas - MasTec, Inc.: Yes.

Okay. Easy enough. And then maybe, George, a question for you, given the strength of the cash flow in the quarter. We've seen pretty sustainable improvement in cash flow over the last few quarters. So, maybe you can talk a little bit more about some of the changes you've made internally to get cash flow up. And is this just kind of better blocking and tackling on working capital or are you starting to see some benefits from maybe better terms and conditions on some of these larger projects that you booked recently?

I mean it's a little bit of a combination of both. We've certainly been focusing on the blocking and tackling aspects of working capital management. You've seen a pretty sizable reduction in our DSOs over the last say year-and-a-half. And that's been a combination of blocking and tackling and then some improvement in terms. I mean we've been able to negotiate and obtain some improvement in terms in some of our project activity, which is kind of a little bit of a sign of some of the strength of our markets. And so we've been able to benefit from both. And we're very comfortable with where we are today. Obviously, we're sitting at 1.7 times book levered. So we're in a great spot with our capital structure. José Ramón Mas - MasTec, Inc.: And, Alan, the only thing I'd add to that is significant kudos to all the MasTec team, because it's their productivity and execution that allowed us to improve our margins and make a lot more money, which is obviously flowing to cash flow. So, kudos to them and their ability to deliver that for us.

All right. Thanks, guys. Good luck. José Ramón Mas - MasTec, Inc.: Thanks.

Our next question comes from Andrew Wittmann with Baird. Andrew John Wittmann - Robert W. Baird & Co., Inc.: Great. Good morning. My questions were on the pipeline side. I was hoping you could give us a little bit of detail. Anything you can give us to help on the characteristics, maybe the basins, customers, project names, the pipelines that you've signed in the quarter there. I think you mentioned going to construction in the second half of the year. Also, with that, just wanted to understand the permitting environment around those projects as you look at them today. Are they fully permitted and ready to go? That would be helpful to know, I think. Thank you. José Ramón Mas - MasTec, Inc.: Yeah, Andy. We don't talk about project specific, so we're not going to get into that. We'll say it again. It's a very active and robust market. What we have in backlog is ready to construct. So we feel very comfortable about our ability to execute on our backlog and deliver it in the timeframe that we need to, to support our guidance numbers. As we look at outer-year projects, obviously, there is more stuff left in permitting that needs to be accomplished. Again, we think that's going to be one of the big changes as we look forward – is this administration's desire to permit quicker and to get things active. And I think that sentiment is starting to bleed through at different levels across the country. And I wouldn't say we're seeing a ton of that yet but I think we're going to. And I think that's going to allow permitting and some of the issues that we've had in the past and past years to really not be there or to be a lot…

And our final question comes from Chad Dillard with Deutsche Bank.

Hi. Good morning. José Ramón Mas - MasTec, Inc.: Good morning, Chad.

So now that FirstNet has been awarded to one of your key customers, can you speak to the opportunity set for this ramp and how big of an opportunity is it for MasTec, if you can quantify? Also, should we think about the revenue contribution – how should we think about the revenue contribution ahead? José Ramón Mas - MasTec, Inc.: So in our prepared remarks we said we expect it to start affecting us either in late 2017 or early 2018. I think we're not going to get into specifics about roll out or anything like that. We feel very confident that it's going to be a driver of our business for a long time. It's a very ambitious plan. We expect to be a significant participant in it. And we're very excited about it.

And then just, secondly, with the $200 million and $25 million guide up in revenue and EBITDA, can you just give us an update on how to think about each segment on a full year basis?

Well, we've talked before. Obviously, we're going to have a sizable growth this year in Oil and Gas in our – we've talked about that in the past in terms of expecting that. So I think that view has maybe come up a little bit in terms of our expectation. I think on the Communications side, our expectations are roughly the same. I think it'd include a little bit more with – in the second half of the year with the addition of SEFNCO, but it's basically the same. And in terms of Transmission and Power, the Transmission market, we think, will be slightly down year-over-year, basically about the same in 2017 as it is in 2016. And we're moderating our view a little bit on Power on an annual basis given the softness in the first half of the year.

Great. Thank you very much. José Ramón Mas - MasTec, Inc.: Thank you.

We'll take a follow-up question from Noelle Dilts. Noelle Dilts - Stifel, Nicolaus & Co., Inc.: Thanks, again. So just given that you're making these investments in equipment, I guess, a couple of questions. One, I understand that you're maybe shifting some of that from rentals to ownership, but maybe if you can give us a sense of how much you're adding to your owned fleet capacity. And second, when you think about buying and owning equipment for years, how many years do you expect to keep that equipment busy for and, I guess, how confident are you that you'll be able to do that? José Ramón Mas - MasTec, Inc.: Sure. So our total add – I think the incremental CapEx that we're talking about is roughly $50 million versus where our previous guidance was. So it's not like we are talking about hundreds of millions, but we think that's pretty sizable and important. And it's predominantly in two areas. One is pipeline and one is in wireline construction. We still – again, as I was saying earlier, we still rent a significant portion of our pipeline equipment. So our rental expense is probably close to half of what our total expense are and we always adjust that. So we're always trying to find – we kind of like being in that 50% to 60% owned. So part of this is just re-gauging based on the growth of the business that we've had and we expect to have to make sure that we stay there for a longer period of time. And then on the wireline side, it's just – there is incremental opportunities. We're seeing a lot more. So we always think about CapEx in two ways. We think about maintenance CapEx, which really hasn't changed and then we think about growth CapEx. And I think everything we're talking today is somewhat about growth CapEx and meeting the demands that we're going to see in the future. Noelle Dilts - Stifel, Nicolaus & Co., Inc.: Great. Thank you. José Ramón Mas - MasTec, Inc.: Thanks, Noelle.

And that concludes today's question-and-answer session. Mr. Mas, at this time, I would turn the conference back to you for any additional or closing remarks. José Ramón Mas - MasTec, Inc.: Sure. I'd just like to thank everybody for participating on today's call. And we look forward to talking to you again in – about our second quarter in the next couple months. So, thank you for being here today.

This concludes today's call. Thank you for your participation. You may now disconnect.