Welcome to the MasTec Second Quarter 2018 Earnings Conference Call initially broadcast on August 3, 2018. 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?

Thank you. Good morning, everyone. Welcome to MasTec's third quarter earnings call. The following statement is made pursuant to the Safe Harbor for forward-looking statements described in the Private Security 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 on November 2, 2018. And the company does not undertake 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, the actual results may differ significantly from results expressed or implied in these communications. In today's remarks by management, we'll 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 press release, our 10-Q or posted in the PowerPoint Presentation located in 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 Executive Vice President and 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 question-and-answer period and we expect the call to last about 60 minutes We had another great quarter and a lot of important…

Thanks, José, and good morning, everyone. Today I'll cover third quarter financial results, including cash flow, liquidity, working capital usage and capital investments as well as our increased guidance expectation for 2018. 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 non-GAAP measures can be found in our press release, on our website or in our SEC filings. It's worth noting that third quarter 2018 GAAP results reflected an income tax benefit of approximately $18 million or $0.23 per share from completion of the re-measurement process of our U.S. deferred income balances, resulting from the Tax Cuts and Jobs Act. And consistent with our prior treatment, this benefit was not included in our adjusted results. In summary, we had a great third quarter 2018. With record adjusted EBITDA and significant adjusted EBITDA margin rate expansion. And we have, once again, increased our guidance expectation for the 2018 annual period. During the third quarter, we repurchased 1.6 million shares at a cost of $70 million. And in September, our board approved a new $150 million share repurchase authorization, the largest authorization in MasTec's history. Importantly during the third quarter, as expected and previously communicated, we successfully finalized contractual resolution on a large oil and gas project, for which we have reached substantial completion during our second quarter. As indicated in yesterday's release, in October we received over $700 million in cash inflows from this and other large oil and gas projects significantly reducing our leverage since the end of the third quarter. This strong October cash inflow affords us the confidence to further increase our expectation for 2018 annual cash flow from operations to a new record level of over $550 million.…

Thank you. Our first question comes from Andrew Kaplowitz from Citi. Please go ahead. Your line is open.

Hey, guys. Close enough. How you're doing? José Ramón Mas - MasTec, Inc.: Good morning, Andy.

José, so you've been talking for a couple quarters now, about your estimated margin in oil and gas being in a 13% range. But you came in at 15% this quarter and that's despite significant interruptions in Mountain Valley. Last quarter you came in at 16% despite delays. So, maybe you could talk about the underlying margins here in that business. Is it in the high-teens? Kind of like it used to be when you have good mainline pipe in there. Did you have any closed out benefits in the quarter? And is it possible to quantify the regulatory weather delays that cost you in Q3? José Ramón Mas - MasTec, Inc.: Sure. So, I think what we've been saying is we're going into these bids at 12%, 13%, somewhere in that area. We've got some contingencies built into the projects over the last couple of quarters. We've obviously performed better, been able to outperform some of our own estimates. And thus we had 16% margins in Q2 and 15% margins in Q3. We're always closing projects out. So in every quarter, there are ins and outs related to a project. There was some close out benefit in Q3, but nothing abnormal, nothing that wouldn't have allowed us to make that kind of a margin in a normalized period. On a go-forward basis, we're still kind of guiding to the same levels and we've been performing for a couple quarters, as we perform more consistently over time then we'd consider maybe moving that margin profile more to where our actuals are coming in. So, built into guidance we still have the same types of level of margin guidance that we've done in the past, so we're hoping to be able to beat it. Things are going well. It's a very active market, but we've got to perform and deliver out on the field.

Okay. That's helpful, José. Maybe stepping back, at this point, can you give us any initial thoughts on the puts and takes that you see into 2019? You still have significant Mountain Valley work in 2019. It might trail off in the second half of 2019, but you have more Permian midstream, maybe Canada starts to come back. I think you mentioned on this call you labeled the potential for communications as exponential growth, and you're booking these big transmission awards, one of them starts next year. So, as we look at next year, I think the Street has something like mid-single-digit revenue growth as opposed to double-digit EBITDA growth. Is that kind of what you see at this point? I know it's early. José Ramón Mas - MasTec, Inc.: I do. I think that's – I think those are fair estimates. Obviously, we're very bullish on our business. Just to be clear, we see a lot of big pipeline work as well. So, I don't want that to be tempered. We've got a lot of opportunities. I think in this call we're saying we expect to go into next year with at least the levels of backlog that we entered this year, if not better. So, we're very bullish about what we're going to win from here to the end of the year and really what our pipeline backlog and our total backlog is going to look like going into 2019. It's an extremely active market. And again, we couldn't be more bullish about it. With that said, obviously we have to perform. I still think and we've been saying this for over a year, I still think of the communications growth you're going to start seeing at a slower ramp. And I think middle of 2019 on is where we're really going to see a big pop there, but there's an enormous amount of work. There's a lot of obviously engineering and permitting work that's ongoing now. Construction work is ramping we expect, and we probably – we obviously expect more growth in communications next year than we would across the rest of our business but again bullish across the board. One of the questions I didn't answer for you, Andy, was on some of the constraints and challenges that we did face in the third quarter. Obviously we were shut down on the MVP project for a month. We had two hurricanes, Hurricane Florence and Michael, that actually significantly impacted that project in particular because it rained a lot along the project right away and along the project route. So, we're really proud of the results we've had. We think there's tremendous excitement around the industry and just a lot of activity and work out there.

Thanks, José. Good quarter. José Ramón Mas - MasTec, Inc.: Thank you, Andy.

Thank you. Our next question comes from Tahira Afzal from KeyBanc. Please go ahead. Your line is open.

Thanks. Congrats, José, to you and your team, on a great performance. José Ramón Mas - MasTec, Inc.: Thank you, Tahira.

So, José, on the telecom side, obviously wireline and wireless commentary much stronger than we thought. Obviously you have some moving parts. Not everything ramps up at get-go as you've indicated. Could we be exiting next year at sort of 20%-plus year-on-year growth in telecom? José Ramón Mas - MasTec, Inc.: It's definitely doable, right? So, if you look at the trends in the business, the one business that continues to drop for us is that install business. Consistent on a quarter-over-quarter basis, we actually had slight growth quarter-over-quarter. But if you compare it on a year-over-year basis, it was still down mid-20%. So, that's a headwind that we have facing the communications business. So, when you look at the overall numbers, really strong growth in wireline and wireless. I think if you look a lot of the models that are out there, that it's implying that kind of growth in communications for next year coming out of 2019 and we feel comfortable with that.

Got it, José. And is the electric transmission, the uptick you're now finally seeing, it's pretty exciting. Seems like you have, if I do my math correctly, probably $1 billion or so in bookings that you will be able to garner and recognize by, let's say, middle of next year just on the two projects. If I go back historically, you've come close to doing $500 million plus in revenues there. Right now, you're underutilized. But the margins in that business have hit as high as 13%, 14%. Could you conceivably see those type of margins again in this business in 2020, 2021? José Ramón Mas - MasTec, Inc.: So first, we're super excited with the bookings that we've gotten. You're accurate in saying I don't think we've ever had bookings of this level in this business ever. So we actually have to translate that and let it hit backlog. Unfortunately, we're not going to see a lot of the revenue flow through our books until really late 2019, into 2020. So this isn't necessarily a story for 2019, but it's absolutely a story for 2020 and 2021. I would expect to reach record levels of revenues in those years based on the bookings that we have and the opportunities in front of us, and our ability to be able to, if not hit historical high margin levels, get close to them. So again, it's, I think it's going to be a great part of our story in the coming years. We're very excited about it and it obviously has to play out, but we're super encouraged about where it's headed.

Thanks a lot and congrats again, José. José Ramón Mas - MasTec, Inc.: Thank you, Tahira.

Thank you. Our next question comes from Noelle Dilts from Stifel. Please go ahead. Your line is open. Noelle Christine Dilts - Stifel, Nicolaus & Co., Inc.: Thanks. Good morning and congratulations. José Ramón Mas - MasTec, Inc.: Thanks, Noelle. Noelle Christine Dilts - Stifel, Nicolaus & Co., Inc.: I just wanted to start with, going back again to communications, but you mentioned demand is stronger than anticipated, than you had anticipated. So, I'm just curious if that's coming more from AT&T or other customers? And historically, most of your work, more, the majority of your work on the communications side has been tied to AT&T. So, are you seeing more opportunity emerge with other customers? And then the last question there is really, you're talking about a slower ramp in 2019 now more back half weighted. Is there kind of a reason why? Is it the regulatory side? Or is something else going on there? Thanks. José Ramón Mas - MasTec, Inc.: Sure. So, a couple things. First, I'd start with saying our view on 2019 has not changed. So, I don't... Noelle Christine Dilts - Stifel, Nicolaus & Co., Inc.: Okay. José Ramón Mas - MasTec, Inc.: ...want the implication to be we're changing our view on 2019. We've always said 2019, we've always said in 2018, I think we're almost hitting the numbers we predicted a year ago as we looked at 2018. I think there was a lot of excitement around 2018. We were somewhat tempered in how quick that revenue would hit. And I think we were correct in making those assumptions and in being a little bit more conservative as we looked at 2018. So, our view on 2019 has always been, it was going to start better than where 2018 was, but it…

Our next question comes from Jamie Cook from Credit Suisse. Please go ahead. Your line is open. Jamie L. Cook - Credit Suisse Securities (USA) LLC: Hi. Good morning. And nice quarter. Good job on the cash flow. I guess the one question I get from investors with the Oil and Gas business being so robust and sort of working capital needs, George, is there any way you can help us on how to think about normalized cash flow for this business over the next couple of years or should we continue to expect volatility just given the working capital needs associated with the Oil and Gas business? And then my second question, José, if you could just talk about sort of terms and conditions, what you're seeing in the oil and gas market, in particular, pricing dynamics, just given the capacity constraints and the fact that the market is so robust. Thank you.

Hey, Jamie, I'll take the first piece. This is George. As far as working capital is concerned, we don't expect it to be volatile going forward. I mean, we've had a couple different instances in terms of contract specifics that have led to some increased usage over time, but the fact that we're in a large project cycle doesn't necessarily change our profile on working capital. We continue to expect our normalized working capital to be in that mid to high 70s in terms of DSOs; that's with large project activity. If you go back, when we were doing Dakota Access, you would see that we were in those numbers and didn't have any issues. The experiences that we had the first part of this year that have now been collected were really related to specific contracts items and those have been pushed behind us. So, from a working capital perspective, we really expect ourselves to be back in a normal range again, that's in that mid to high 70s, and don't see that changing with this cycle of large project activity that's now continuing into 2020 plus. José Ramón Mas - MasTec, Inc.: So, Jamie, I'd add a couple things. One, I do think it's important to note that I think the issues that we did have over the course of the last three quarters or so were very project specific, as George said, and not customary of the overall industry. When we think about terms, conditions and pricing, which was the second part of your question, I think customers today more than ever realize the importance of having contractors that have the ability to complete these jobs, that have the financial wherewithal to complete these jobs, that have experience dealing with the regulatory and environmental issues that are showing up on these jobs. I think we've proven that over the last few years. We've worked on some of the most, if not the most difficult, projects in the U.S. And, I think it's played very well for us. I think customers understand that. I think, from a pricing perspective and terms and conditions, things are very different than they were historically. I think they're definitely become more favorable for the contracting community and things that we can live with. So, when you look at all the issues that we've had on specific projects over the last year and our ability to get through them and negotiate through them and have our customers treat us the way they have, I think is a testament to the partnership that we have with our customers and the importance that they have in what we do for them every single day. Jamie L. Cook - Credit Suisse Securities (USA) LLC: Okay. Thank you. Nice job. I'll get back in queue. José Ramón Mas - MasTec, Inc.: Thanks, Jamie.

Our next question comes from Alex Rygiel from B. Riley FBR. Please go ahead. Your line is open.

José, George and team, great quarter. Congratulations. José Ramón Mas - MasTec, Inc.: Hey, Alex.

Couple quick questions. José, you talked about doubling the, increasing the tower climbing staff by about 50%. Can you talk about the timeline and the effort that's required in order to do that? When those additional tower climbers might come on stream? And how should we think about the revenue opportunity of those additional tower climbers in your model? José Ramón Mas - MasTec, Inc.: Yeah. So, the reality, Alex, is it's probably going to take us through midyear next year. I think this is a multi-year conversation, as we think about the needs of our customers. The reality is that if we had it today, we could probably put them to work today, which is, I think, unbelievable to be able to say that. But I think that's the demand that's starting to exist in the industry today. But it will take us time. We've got schools that we've built across the country, that I think are excellent and are specific to that. So, we're trying to do it as quick as we can, it does take time. So, we'll be building that over the course of the next couple quarters. I think the revenue growth opportunity is commensurate with that growth, if not greater. Again, we've got a lot more customers, doing a lot more work. The industry in general just has a lot more activity, which is creating positive pricing pressure and significant demand issues relative to the supply that's out there.

And secondly, customer concentration is always been a part of the MasTec story, but you talked a number of times on this call with regards to a broadening of opportunities, whether or not it's telecom with Verizon and Comcast or it's in your power business with two new big projects starting up in 2019 and hopefully 2020 or whether or not it's next year breadth of opportunities within your Oil and Gas business. So, can you kind of help us to understand maybe what the corporate strategy is and where you think the diversification is going to two years out? José Ramón Mas - MasTec, Inc.: Yeah. So, I think when you look at it, right, AT&T has been the one constant. It's the one customer that's been a top or top 3 customer for a long time. Part of it is the acquisition of DirecTV. When DirecTV was around you had two customers between them and AT&T that made a significant portion of our business. We've got a great relationship with them. It's broken out into a bunch of different subsets of work. So, we've got wireless, we've got wireline, we've got the installation business. We've been working with them for over 50 years. We've got a great relationship and we have zero concerns around our customer concentration with AT&T. When you look at other customer concentration, the reality is we have significant customer rotation. So, those other customers aren't always at the top, right? If Energy Transfer's got a lot of work, they end up being a big customer. Right now, EQT is a big customer but we're, because we're working on a big project. Next year, our big pipeline projects will probably be with other customers that aren't the same ones that we're working with today. So, they'll pop on our list. So, I think it's very healthy because there's constant rotation depending on who has the work. And then, what you've seen is the, when you get into the 4 through 10 for us, the customers that are now becoming our 4 through 10 are large customers that can ultimately be a lot larger for us. So, for Verizon to consistently be on that list now for quarters, for Comcast to consistently be on that list and the opportunities that we have to continue to grow them, I think we've got a great customer base. We're very proud of it. We've got hundreds if not thousands of customers that we work for across the year throughout all of our businesses. But obviously the big ones are the ones that impact us the most. And we're very comfortable with the customer diversification that we have today and with the improvements that we've made it in over the last couple of years.

Thank you. José Ramón Mas - MasTec, Inc.: Thanks, Alex.

Our next question comes from Adam Thalhimer. Please go ahead. Your line is open. Adam Robert Thalhimer - Thompson Davis & Co., Inc.: Hey. Good morning, guys. Great quarter. José Ramón Mas - MasTec, Inc.: Good morning, Adam. Adam Robert Thalhimer - Thompson Davis & Co., Inc.: I also wanted to ask about the tower climbers. José, what's really driving that? Is it all FirstNet or is it more broad than that? José Ramón Mas - MasTec, Inc.: It's more broad. I think ultimately 5G is going to require every tower to be touched. I think there's been this idea that 5G is only fiber based, it's not, 5G who requires a significant amount of fiber, it's definitely a part of what's going to happen there. But at the end of the day, towers have to be touched and it's a – it's complex, it's more difficult, it's a smaller workforce base. And, the needs are exponential because all the different carriers are out there trying to do this within a similar time interval. So, it's going to be a very interesting market for years to come and a very active market for years to come. Adam Robert Thalhimer - Thompson Davis & Co., Inc.: Okay. And then secondly, I wanted to ask about Puerto Rico. Can you, I think that was $500 million contract. I mean does all of that hit in 2019? And what's the margin profile of that work? José Ramón Mas - MasTec, Inc.: Yeah. We're hopeful. Puerto Rico has got a year's worth of work. In their own estimates they talk about having work to finish over the next five to seven years in the range of $5 billion to $8 billion. The first awards of that came middle of the year this year when the announcements of those projects were made. Things, unfortunately, are a little bit slower there than what we'd like to see. Again, we expect to mobilize on that project before year-end. And, we have currently a $500 million contract that we do think will be used in 2019, so, and then there's a bunch of other work that's going to be bid in early 2019 that I think we're well-positioned for. So, I think there's very strong long-term opportunities in Puerto Rico; really not a lot built into our guidance for the balance of 2018, but something we're pretty excited about. Adam Robert Thalhimer - Thompson Davis & Co., Inc.: Okay. Thanks. José Ramón Mas - MasTec, Inc.: Thanks, Adam.

Our next question comes from Chad Dillard from Deutsche Bank. Please go ahead. Your line is open.

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

So, can you discuss the ramp-up work for fiber and 5G as we enter 2019, and how should we think about the cost absorption and the margin ramp as we go into next year compared to this year particularly as you guys are hiring more tower climbers? And then secondly, I mean, labor is obviously pretty tight in this market right now. How do you guys plan to get bodies in the door and to what extent do you have ability to improve pricing and contracts to cover the incremental labor cost? José Ramón Mas - MasTec, Inc.: So, couple things, right? We're already experiencing growth. We had 30% year-over-year growth in wireline, we had double-digit growth in wireless in the third quarter. So, I think we're already living with some of those challenges that you lay out. We've had to hire more people. We've had to add people on. We've been doing that. It's been built into the margins we've been able to deliver. And I think it's important when we talk about those margins to see that those margins have increased, right, we expect to finish this year at north of 100-basis point improvement from where we were last year. That's a significant improvement in our comms business despite some of the growth and growth initiatives that we've had to cover. When you think about people and labor, I think that's one of our strengths. We do a lot around training. We do a lot around building our own resources, training them, and getting them proficient quickly. So that's one of our strengths. That's where we think you know we can bring a lot of value to our customers. I think a lot of the opportunities that we're seeing today are incremental opportunities which allow them to be priced on the spot market which is increased because of the demand for services. So I think that's a positive. As I think about margins going into the next couple quarters in communications, we've got two challenges. One is we've got some comps relative to the hurricanes, where the hurricanes had – have strong margins. We had a lot of that work in Q4 and Q1. And then I think you've got the expenses that we'll have in terms of hiring people which I think we're already doing a lot of that, so some of that is already built into the margins. I think when things normalize and we're at the level of people that we need. You're going to see our performance be better than the performance that we've been able to deliver over the last couple of quarters. So longer term, mid to longer term, I expect our Communications margins to improve. Over the next couple quarters, we're going to have to manage through the incremental workforce and what we've got to do there. And I think we've kind of embedded all that in our guidance assumptions that we've put out.

Great. That's helpful. And then also, can you talk about the impact of the FCC's 5G FAST plan? I mean, obviously, it's a pretty big positive. But, have you actually started to see that impact yet? And, has it given you better timing certainty or allows you to build a more accurate work schedule? José Ramón Mas - MasTec, Inc.: Every customer is different, right? So every customer has a little bit different set of plans. Obviously when we think about what's currently happening, a lot of our business today is more being driven by FirstNet than it is for 5G. I think a lot of that we're going to start seeing the benefit of in 2019.

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

Our final question comes from Brent Thielman from D.A. Davidson. Please go ahead. Your line is open. Brent Edward Thielman - D. A. Davidson & Co.: Thanks. Great quarter. José Ramón Mas - MasTec, Inc.: Good morning, Brent. Brent Edward Thielman - D. A. Davidson & Co.: Good morning. José, with all the opportunities in the Permian and as you work through MVP, do you think we could see a material shift in the composition of the backlog, I guess, toward projects addressing that basin? José Ramón Mas - MasTec, Inc.: So, the short answer is yes. The broader answer is we already have a significant presence in that basin. So, if you look at the work that we're doing today, we're doing a lot of work in that basin today. It's a big driver of revenue for us. It always has been. I think we're as, about as well positioned there is anybody in the country. When you look at just about every major project of note that's being built there, we are involved. We have won a piece of it. So, we have, I think we already have great diversification both for that basin and within that basin with different customer sets. There is an enormous amount of work coming out in that basin that will continue to come out over the next couple of years. And I think we're going to be a big beneficiary of that. Brent Edward Thielman - D. A. Davidson & Co.: Okay. And then just on transmission, with the timing of some of these large projects, I guess into 2019, late 2019, 2020, is that when we should start to think about that business getting back towards historical profitability levels? Are there some levers you can pull to get there sooner? José Ramón Mas - MasTec, Inc.: I think that's when we'll get to historical levels. I think profitability will improve from now to then, but not to historical levels. I think we need that kind of volume and utilization of our resources to be able to get back to those levels. Brent Edward Thielman - D. A. Davidson & Co.: All right. Thank you. José Ramón Mas - MasTec, Inc.: Thanks, Brent.

It appears there are no further questions at this time. I would like to turn the call back over to José Mas for any closing remarks. José Ramón Mas - MasTec, Inc.: All right. I just want to thank everybody for participating today and for your interest in MasTec. And we look forward to updating you on our year-end call. Thank you.

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