The following presents the effect of the adjustments on MasTec’s previously reported unaudited net income attributable to MasTec, Inc. (“Net Income”) for each of the affected interim periods (dollar amounts in thousands):



Period	Previously Reported Net Income		Adjustments			Restated Net Income
First Quarter of 2014 (unaudited)	$	16,023	$	(3,926	)	$	12,097
Second Quarter of 2014 (unaudited)	$	32,050	$	1,675		$	33,725
Six Months Ended June 30, 2014 (unaudited)	$	48,073	$	(2,252	)	$	45,821
Third Quarter of 2014 (unaudited)	$	45,271	$	3,715		$	48,986
Nine Months Ended September 30, 2014 (unaudited)	$	93,344	$	1,463		$	94,807

The adjustments above resulted primarily from cost-to-complete estimate changes for two large and complex Electrical Transmission segment projects accounted for under the percentage-of-completion method. The project contracts in question are with third-party clients. One of the contracts was completed in early 2015 and the other contract is expected to be completed in 2016.

In one project, the Company determined that certain project costs that were incurred and recorded by the Company in the third quarter of 2014 should have been foreseeable and, therefore, should have been included in project cost-to-complete estimates as of the first quarter of 2014. In the other project, the Company determined that certain project cost savings that were realized by the Company during the third and fourth quarters of 2014 should have been foreseeable and, therefore, should have been included in project cost-to-complete estimates as of the second quarter of 2014. Interim Net Income adjustments related to these projects totaled negative $3.8 million for the three month period ended March 31, 2014 and positive $1.4 million and $3.6 million for the three month periods ended June 30, 2014 and September 30, 2014, respectively.

In addition, Selected Items were reviewed to further test the reliability of the previously issued financial statements. As a result of this review, the Company recorded additional immaterial adjustments, which resulted in changes to previously reported interim Net Income, which adjustments are reflected in the table above.

The following tables present the impact of the restatement adjustments on MasTec’s previously reported condensed unaudited consolidated financial statements for the three month period ended March 31, 2014, the three and six month periods ended June 30, 2014 and the three and nine month periods ended September 30, 2014. Additionally, certain amounts have been reclassified to conform to current year presentation.

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is the measure of profitability used by management to manage its segments and, accordingly, in its segment reporting. As appropriate, the Company supplements the reporting of consolidated financial information determined in accordance with U.S. GAAP with certain non-U.S. GAAP financial measures, including EBITDA. See Note 16 - Segments for additional discussion. The effect of the restatement adjustments on the Company’s previously reported unaudited consolidated EBITDA for the three month period ended March 31, 2014, the three and six month periods ended June 30, 2014 and the three and nine month periods ended September 30, 2014, along with reconciliations to unaudited consolidated income from continuing operations before income taxes for the respective periods, is presented in the tables below.

RESTATED CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)



	For the Three Months Ended March 31, 2014
	As Reported			Adjustments			As Restated
Revenue	$	964,029		$	(6,211	)	$	957,818
Costs of revenue, excluding depreciation and amortization	841,054			270			841,324
Depreciation and amortization	33,494			—			33,494
General and administrative expenses	53,327			—			53,327
Interest expense, net	12,003			—			12,003
Other income, net	(1,955		)	(128		)	(2,083		)
Income from continuing operations before income taxes	$	26,106		$	(6,353	)	$	19,753
Provision for income taxes	(9,916		)	2,427			(7,489		)
Net income from continuing operations	$	16,190		$	(3,926	)	$	12,264
Discontinued operations:
Net loss from discontinued operations	$	(122	)	$	—		$	(122	)
Net income	$	16,068		$	(3,926	)	$	12,142
Net income attributable to non-controlling interests	45			—			45
Net income attributable to MasTec, Inc.	$	16,023		$	(3,926	)	$	12,097
Earnings per share:
Basic earnings (loss) per share:
Continuing operations	$	0.21		$	(0.05	)	$	0.16
Discontinued operations	(0.00		)	0.00			(0.00		)
Total basic earnings per share ^(a)	$	0.21		$	(0.05	)	$	0.16
Basic weighted average common shares outstanding	77,345			—			77,345
Diluted earnings (loss) per share:
Continuing operations	$	0.19		$	(0.05	)	$	0.14
Discontinued operations	(0.00		)	0.00			(0.00		)
Total diluted earnings per share ^(a)	$	0.19		$	(0.05	)	$	0.14
Diluted weighted average common shares outstanding	86,622			—			86,622


(a)	Earnings per share calculations may contain slight summation differences due to rounding.

The revenue adjustment set forth in the restated condensed unaudited consolidated statements of operations above resulted from a cost-to-complete estimate change on a large and complex Electrical Transmission segment project accounted for under the percentage-of-completion method. In addition, there were other immaterial adjustments identified within various segments, which affected costs of revenue, excluding depreciation and amortization and other income, net. For the three month period ended March 31, 2014, these adjustments resulted in a reduction in revenue of $6.2 million, an increase in costs of revenue, excluding depreciation and amortization, of $0.3 million, an increase in other income, net, of $0.1 million, and a reduction in Net Income of approximately $3.9 million. Basic and diluted earnings per share decreased by $0.05 cents each.



	For the Three Months Ended March 31, 2014
Restated Unaudited EBITDA and EBITDA Reconciliation (in millions):	As Reported			Adjustments			As Restated
EBITDA - Continuing operations	$	71.6		$	(6.4	)	$	65.3
Less:
Interest expense, net	(12.0		)	—			(12.0		)
Depreciation and amortization	(33.5		)	—			(33.5		)
Income from continuing operations before income taxes	$	26.1		$	(6.4	)	$	19.8

Impact of Adjustments on Comparison of Results - Electrical Transmission Segment

As previously reported, Electrical Transmission segment revenue and EBITDA for the three month period ended March 31, 2014 totaled $80 million and $3 million, respectively. As restated, Electrical Transmission segment revenue and EBITDA for the three month period ended March 31, 2014 totaled $74 million and negative $3 million, respectively. EBITDA margin for the Electrical Transmission segment, as previously reported, was 4.4% for the three month period ended March 31, 2014, and as restated, was negative 3.7%. As restated, Electrical Transmission segment revenue for the three month period ended March 31, 2014 decreased versus the prior year period by $11 million, or 13%. Acquisitions contributed $5 million of revenue, whereas organic revenue declined by $15 million, primarily as a result of winter weather disruptions and timing of project startups. As restated, Electrical Transmission segment EBITDA for the three month period ended March 31, 2014 decreased versus the prior year period by $6 million, or 180%, and Electrical Transmission segment EBITDA margin declined to negative 3.7% from positive 4.0% in the prior year period, with a majority of this decline due to production inefficiencies resulting from lower organic revenue.

RESTATED CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)



	For the Three Months Ended March 31, 2014
	As Reported			Adjustments			As Restated
Net income	$	16,068		$	(3,926	)	$	12,142
Other comprehensive (loss) income:
Foreign currency translation adjustments, net of tax	(5,335		)	(1		)	(5,336		)
Comprehensive income	$	10,733		$	(3,927	)	$	6,806
Comprehensive income attributable to non-controlling interests	45			—			45
Comprehensive income attributable to MasTec, Inc.	$	10,688		$	(3,927	)	$	6,761

RESTATED CONDENSED UNAUDITED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)



	March 31, 2014
	As Reported			Adjustments			As Restated
Assets
Current assets:
Cash and cash equivalents	$	9,261		$	—		$	9,261
Accounts receivable, net of allowance	1,195,603			(10,367		)	1,185,236
Inventories, net	89,146			—			89,146
Prepaid expenses and other current assets, including discontinued operations	63,926			2,426			66,352
Total current assets	$	1,357,936		$	(7,941	)	$	1,349,995
Property and equipment, net	509,585			—			509,585
Goodwill	912,885			—			912,885
Other intangible assets, net	171,562			—			171,562
Other long-term assets, including discontinued operations	61,439			—			61,439
Total assets	$	3,013,407		$	(7,941	)	$	3,005,466
Liabilities and equity
Current liabilities:
Current maturities of long-term debt	$	52,949		$	—		$	52,949
Accounts payable	440,152			271			440,423
Accrued salaries and wages	68,055			—			68,055
Other accrued expenses	60,581			(128		)	60,453
Acquisition-related contingent consideration, current	64,694			6,806			71,500
Billings in excess of costs and earnings	109,370			—			109,370
Other current liabilities, including discontinued operations	24,588			(4,157		)	20,431
Total current liabilities	$	820,389		$	2,792		$	823,181
Acquisition-related contingent consideration, net of current portion	119,756			(6,806		)	112,950
Long-term debt	841,335			—			841,335
Long-term deferred tax liabilities, net	154,151			—			154,151
Other long-term liabilities	40,929			—			40,929
Total liabilities	$	1,976,560		$	(4,014	)	$	1,972,546
Commitments and contingencies
Equity:
Preferred stock, $1.00 par value: authorized shares - 5,000,000; issued and outstanding shares – none	$	—		$	—		$	—
Common stock, $0.10 par value: authorized shares - 145,000,000; issued shares - 86,993,988 as of March 31, 2014	8,700			—			8,700
Capital surplus	827,863			—			827,863
Contributed shares	6,002			—			6,002
Retained earnings	357,887			(3,926		)	353,961
Accumulated other comprehensive loss	(18,621		)	(1		)	(18,622		)
Treasury stock, at cost; 9,467,286 shares as of March 31, 2014	(150,000		)	—			(150,000		)
Total MasTec, Inc. shareholders’ equity	$	1,031,831		$	(3,927	)	$	1,027,904
Non-controlling interests	$	5,016		$	—		$	5,016
Total equity	$	1,036,847		$	(3,927	)	$	1,032,920
Total liabilities and equity	$	3,013,407		$	(7,941	)	$	3,005,466

As of March 31, 2014, the cost-to-complete estimate changes for the projects discussed above resulted in a decrease in costs and earnings in excess of billings of $6.2 million. There was also a reclassification of $4.2 million from other current liabilities to costs and earnings in excess of billings associated with cost-to-complete estimates. The decrease in Net Income discussed above resulted in an increase in current taxes receivable of $2.4 million. Additionally, there was a $6.8 million reclassification of an earn-out liability that had been earned as of March 31, 2014 from long-term to current liabilities. In addition to the adjustments discussed above, there were other immaterial adjustments identified, which affected accounts payable and other accrued expenses.

RESTATED CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)



	For the Three Months Ended March 31,
	As Reported			Adjustments			As Restated
Cash flows from operating activities:
Net income	$	16,068		$	(3,926	)	$	12,142
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	33,494			—			33,494
Non-cash interest expense	2,362			—			2,362
Non-cash stock-based compensation expense	3,260			—			3,260
Excess tax benefit from stock-based compensation	(3,246		)	—			(3,246		)
Provision for deferred income taxes	3,281			—			3,281
Other non-cash items	623			—			623
(Gains) losses on sales of assets	(1,622		)	—			(1,622		)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable	(43,440		)	10,367			(33,073		)
Inventories	(13,313		)	—			(13,313		)
Other assets, current and long-term portion	9,034			(2,426		)	6,608
Accounts payable and accrued expenses	(14,683		)	143			(14,540		)
Billings in excess of costs and earnings	(12,247		)	—			(12,247		)
Book overdrafts	1,266			—			1,266
Other liabilities, current and long-term portion	(1,231		)	(4,158		)	(5,389		)
Net cash used in operating activities	$	(20,394	)	$	—		$	(20,394	)
Cash flows (used in) provided by investing activities:
Cash paid for acquisitions, net of cash acquired	(23,831		)	—			(23,831		)
Capital expenditures	(35,554		)	—			(35,554		)
Proceeds from sale of property and equipment	3,373			—			3,373
Payments for other investments	(1,098		)	—			(1,098		)
Net cash used in investing activities	$	(57,110	)	$	—		$	(57,110	)
Cash flows provided by (used in) financing activities:
Proceeds from credit facilities	233,872			—			233,872
Repayments of credit facilities	(157,349		)	—			(157,349		)
Repayments of other borrowings	(2,830		)	—			(2,830		)
Payments of capital lease obligations	(10,956		)	—			(10,956		)
Payments of tax withholdings and proceeds from stock-based awards, net	(1,451		)	—			(1,451		)
Excess tax benefit from stock-based compensation	3,246			—			3,246
Payments of financing costs	(218		)	—			(218		)
Net cash provided by financing activities	$	64,314		$	—		$	64,314
Effect of currency translation on cash	(476		)	—			(476		)
Net decrease in cash and cash equivalents	(13,666		)	—			(13,666		)
Cash and cash equivalents - beginning of period	$	22,927		$	—		$	22,927
Cash and cash equivalents - end of period	$	9,261		$	—		$	9,261



Supplemental cash flow information:
Interest paid	$	12,430	$	—	$	12,430
Income taxes paid, net of refunds	$	11,928	$	—	$	11,928
Supplemental disclosure of non-cash information:
Equipment acquired under capital lease	$	8,240	$	—	$	8,240
Equipment acquired under financing arrangements	$	5,780	$	—	$	5,780
Acquisition-related contingent consideration, new business combinations	$	8,700	$	—	$	8,700

RESTATED CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)



	For the Three Months Ended June 30, 2014									For the Six Months Ended June 30, 2014
	As Reported			Adjustments			As Restated			As Reported			Adjustments			As Restated
Revenue	$	1,104,556		$	2,676		$	1,107,232		$	2,068,585		$	(3,535	)	$	2,065,050
Costs of revenue, excluding depreciation and amortization	950,889			(174		)	950,715			1,791,943			97			1,792,040
Depreciation and amortization	36,755			—			36,755			70,249			—			70,249
General and administrative expenses	54,237			—			54,237			107,564			—			107,564
Interest expense, net	12,949			—			12,949			24,952			—			24,952
Other income, net	(2,051		)	128			(1,923		)	(4,007		)	—			(4,007		)
Income from continuing operations before income taxes	$	51,777		$	2,722		$	54,499		$	77,884		$	(3,632	)	$	74,252
Provision for income taxes	(19,714		)	(1,047		)	(20,761		)	(29,630		)	1,380			(28,250		)
Net income from continuing operations	$	32,063		$	1,675		$	33,738		$	48,254		$	(2,252	)	$	46,002
Discontinued operations:
Net loss from discontinued operations	$	(149	)	$	—		$	(149	)	$	(272	)	$	—		$	(272	)
Net income	$	31,914		$	1,675		$	33,589		$	47,982		$	(2,252	)	$	45,730
Net loss attributable to non-controlling interests	(136		)	—			(136		)	(91		)	—			(91		)
Net income attributable to MasTec, Inc.	$	32,050		$	1,675		$	33,725		$	48,073		$	(2,252	)	$	45,821
Earnings per share:
Basic earnings (loss) per share:
Continuing operations	$	0.41		$	0.02		$	0.43		$	0.62		$	(0.03	)	$	0.59
Discontinued operations	(0.00		)	0.00			(0.00		)	(0.00		)	0.00			(0.00		)
Total basic earnings per share ^(a)	$	0.41		$	0.02		$	0.43		$	0.62		$	(0.03	)	$	0.59
Basic weighted average common shares outstanding	78,269			—			78,269			77,810			—			77,810
Diluted earnings (loss) per share:
Continuing operations	$	0.37		$	0.02		$	0.39		$	0.56		$	(0.03	)	$	0.53
Discontinued operations	(0.00		)	0.00			0.00			(0.00		)	0.00			0.00
Total diluted earnings per share ^(a)	$	0.37		$	0.02		$	0.39		$	0.56		$	(0.03	)	$	0.53
Diluted weighted average common shares outstanding	86,730			—			86,730			86,675			—			86,675


(a)	Earnings per share calculations may contain slight summation differences due to rounding.

Of the revenue adjustments set forth in the restated condensed unaudited consolidated statements of operations above, $2.3 million and negative $3.9 million, respectively, resulted from cost-to-complete estimate changes for two large and complex Electrical Transmission segment projects accounted for under the percentage-of-completion method for the three and six month periods ended June 30, 2014. In addition, there were other immaterial adjustments identified within various segments, which affected revenue, costs of revenue, excluding depreciation and amortization, and other income, net. For the three month period ended June 30, 2014, the adjustments resulted in an increase in revenue of $2.7 million, a decrease in costs of revenue, excluding depreciation and amortization, of $0.2 million and a decrease in other income, net of $0.1 million. Net Income increased by approximately $1.7 million. For the six month period ended June 30, 2014, revenue decreased by $3.5 million, costs of revenue, excluding depreciation and amortization, increased by $0.1 million, and Net Income decreased by approximately $2.3 million. Basic and diluted earnings per share for the three month period ended June 30, 2014 increased by $0.02 cents each, and for the six month period ended June 30, 2014, decreased by $0.03 cents each.



	For the Three Months Ended June 30, 2014								For the Six Months Ended June 30, 2014
Restated Unaudited EBITDA and EBITDA Reconciliation (in millions):	As Reported			Adjustments		As Restated			As Reported			Adjustments			As Restated
EBITDA - Continuing operations	$	101.5		$	2.7	$	104.2		$	173.1		$	(3.6	)	$	169.5
Less:
Interest expense, net	(12.9		)	—		(12.9		)	(25.0		)	—			(25.0		)
Depreciation and amortization	(36.8		)	—		(36.8		)	(70.2		)	—			(70.2		)
Income from continuing operations before income taxes	$	51.8		$	2.7	$	54.5		$	77.9		$	(3.6	)	$	74.3

Impact of Adjustments on Comparison of Results - Electrical Transmission Segment

As previously reported, Electrical Transmission segment revenue for the three and six month periods ended June 30, 2014 totaled $114 million and $195 million, respectively. As restated, Electrical Transmission segment revenue for the three and six month periods ended June 30, 2014 totaled $117 million and $191 million respectively. As restated, Electrical Transmission segment revenue for the three month period ended June 30, 2014 decreased versus the same period in the prior year by $2 million, or 1.5%. Acquisitions contributed $8 million of revenue for the three month period ended June 30, 2014, whereas organic revenue declined by $10 million as compared to the same period in the prior year, primarily as a result of timing of project startups. As restated, segment revenue for the six month period ended June 30, 2014 decreased versus the same period in the prior year by $12 million, or 6.1%. Acquisitions contributed $13 million of revenue for the six month period ended June 30, 2014, whereas organic revenue declined by $25 million as compared to the same period in the prior year, primarily as a result of first quarter 2014 winter weather disruptions and timing of project startups.

As previously reported, Electrical Transmission EBITDA for the three and six month periods ended June 30, 2014 totaled $17 million and $21 million, respectively. EBITDA margins for the Electrical Transmission segment, as previously reported, were 14.9% and 10.5% for the three and six month periods ended June 30, 2014, respectively. As restated, Electrical Transmission EBITDA for the three and six month periods ended June 30, 2014 totaled $19 million and $17 million, respectively, and EBITDA margins for the Electrical Transmission segment, as restated, were 16.5% and 8.7%, respectively.

As restated, Electrical Transmission EBITDA for the three month period ended June 30, 2014 increased versus the same period in the prior year by $8 million, or 67.7%, and EBITDA margin improved to 16.5% from 9.7% in the prior year period. As restated, EBITDA margins improved by 680 basis points, or approximately $8 million for the three month period ended June 30, 2014, driven primarily by improved project efficiencies versus the same period in prior year. As restated, Electrical Transmission EBITDA for the six month period ended June 30, 2014 increased versus the same period in the prior year by $2 million, or 11.2%, and EBITDA margin improved to 8.7% from 7.3% in the prior year period. As restated, EBITDA margins improved by 140 basis points, or approximately $3 million for the six month period ended June 30, 2014 as compared to the same period in the prior year, driven primarily by improved project efficiencies.

RESTATED CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)



	For the Three Months Ended June 30,									For the Six Months Ended June 30,
	As Reported			Adjustments			As Restated			As Reported			Adjustments			As Restated
Net income	$	31,914		$	1,675		$	33,589		$	47,982		$	(2,252	)	$	45,730
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax	7,678			(2		)	7,676			2,343			(3		)	2,340
Comprehensive income	$	39,592		$	1,673		$	41,265		$	50,325		$	(2,255	)	$	48,070
Comprehensive loss attributable to non-controlling interests	(136		)	—			(136		)	(91		)	—			(91		)
Comprehensive income attributable to MasTec, Inc.	$	39,728		$	1,673		$	41,401		$	50,416		$	(2,255	)	$	48,161

RESTATED CONDENSED UNAUDITED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)



	June 30, 2014
	As Reported			Adjustments			As Restated
Assets
Current assets:
Cash and cash equivalents	$	15,924		$	—		$	15,924
Accounts receivable, net of allowance	1,288,672			(8,422		)	1,280,250
Inventories, net	115,627			—			115,627
Prepaid expenses and other current assets, including discontinued operations	69,429			1,380			70,809
Total current assets	$	1,489,652		$	(7,042	)	$	1,482,610
Property and equipment, net	618,672			—			618,672
Goodwill	983,133			—			983,133
Other intangible assets, net	230,592			—			230,592
Other long-term assets, including discontinued operations	73,821			—			73,821
Total assets	$	3,395,870		$	(7,042	)	$	3,388,828
Liabilities and equity
Current liabilities
Current maturities of long-term debt	$	76,914		$	—		$	76,914
Accounts payable	494,090			—			494,090
Accrued salaries and wages	63,845			100			63,945
Other accrued expenses	69,401			—			69,401
Acquisition-related contingent consideration, current	36,479			—			36,479
Billings in excess of costs and earnings	109,805			(837		)	108,968
Other current liabilities, including discontinued operations	17,940			(4,050		)	13,890
Total current liabilities	$	868,474		$	(4,787	)	$	863,687
Acquisition-related contingent consideration, net of current portion	116,929			—			116,929
Long-term debt	1,088,666			—			1,088,666
Long-term deferred tax liabilities, net	186,538			—			186,538
Other long-term liabilities	43,949			—			43,949
Total liabilities	$	2,304,556		$	(4,787	)	$	2,299,769
Commitments and contingencies
Equity:
Preferred stock, $1.00 par value: authorized shares - 5,000,000; issued and outstanding shares – none	$	—		$	—		$	—
Common stock, $0.10 par value: authorized shares - 145,000,000; issued shares - 87,036,192 as of June 30, 2014	8,704			—			8,704
Capital surplus	776,301			—			776,301
Contributed shares	6,002			—			6,002
Retained earnings	389,937			(2,252		)	387,685
Accumulated other comprehensive loss	(10,943		)	(3		)	(10,946		)
Treasury stock, at cost: 5,262,831 shares as of June 30, 2014	(83,385		)	—			(83,385		)
Total MasTec, Inc. shareholders’ equity	$	1,086,616		$	(2,255	)	$	1,084,361
Non-controlling interests	$	4,698		$	—		$	4,698
Total equity	$	1,091,314		$	(2,255	)	$	1,089,059
Total liabilities and equity	$	3,395,870		$	(7,042	)	$	3,388,828

The cost-to-complete estimate changes for the Electrical Transmission projects discussed above, along with an immaterial adjustment for a separate project resulted in a decrease in costs and earnings in excess of billings of $4.4 million. There was also a reclassification of $4.1 million from other current liabilities to costs and earnings in excess of billings associated with cost-to-complete estimates. Billings in excess of costs and earnings decreased by $0.8 million as of June 30, 2014. The decrease in Net Income discussed above resulted in an increase in current taxes receivable of $1.4 million. In addition to the adjustments discussed above, there were other immaterial adjustments identified, which affected costs and earnings in excess of billings and accrued salaries and wages.

RESTATED CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)



	For the Six Months Ended June 30,
	As Reported			Adjustments			As Restated
Cash flows from operating activities:
Net income	$	47,982		$	(2,252	)	$	45,730
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	70,249			—			70,249
Non-cash interest expense	4,642			—			4,642
Non-cash stock-based compensation expense	7,480			—			7,480
Excess tax benefit from stock-based compensation	(3,386		)	—			(3,386		)
Provision for deferred income taxes	11,160			—			11,160
Other non-cash items	438			—			438
(Gains) losses on sales of assets	(2,593		)	—			(2,593		)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable	(21,270		)	8,422			(12,848		)
Inventories	(37,140		)	—			(37,140		)
Other assets, current and long-term portion	4,655			(1,382		)	3,273
Accounts payable and accrued expenses	(8,916		)	100			(8,816		)
Billings in excess of costs and earnings	(12,258		)	(837		)	(13,095		)
Book overdrafts	(1,355		)	—			(1,355		)
Other liabilities, current and long-term portion	(4,369		)	(4,051		)	(8,420		)
Net cash provided by operating activities	$	55,319		$	—		$	55,319
Cash flows (used in) provided by investing activities:
Cash paid for acquisitions, net of cash acquired	(162,901		)	—			(162,901		)
Capital expenditures	(67,566		)	—			(67,566		)
Proceeds from sale of property and equipment	8,752			—			8,752
Proceeds from other investments, net	573			—			573
Net cash used in investing activities	$	(221,142	)	$	—		$	(221,142	)
Cash flows provided by (used in) financing activities:
Proceeds from credit facilities	815,840			—			815,840
Repayments of credit facilities	(463,713		)	—			(463,713		)
Repayment of senior notes, including convertible notes	(105,325		)	—			(105,325		)
Repayments of other borrowings	(7,220		)	—			(7,220		)
Payments of capital lease obligations	(23,023		)	—			(23,023		)
Payments of tax withholdings and proceeds from stock-based awards, net	(578		)	—			(578		)
Excess tax benefit from stock-based compensation	3,386			—			3,386
Payments of acquisition-related contingent consideration	(58,902		)	—			(58,902		)
Payments of financing costs	(1,298		)	—			(1,298		)
Net cash provided by financing activities	$	159,167		$	—		$	159,167
Effect of currency translation on cash	(347		)	—			(347		)
Net decrease in cash and cash equivalents	(7,003		)	—			(7,003		)
Cash and cash equivalents - beginning of period	$	22,927		$	—		$	22,927
Cash and cash equivalents - end of period	$	15,924		$	—		$	15,924



Supplemental cash flow information:
Interest paid	$	20,247	$	—	$	20,247
Income taxes paid, net of refunds	$	29,901	$	—	$	29,901
Supplemental disclosure of non-cash information:
Equipment acquired under capital lease	$	44,574	$	—	$	44,574
Equipment acquired under financing arrangements	$	5,780	$	—	$	5,780
Acquisition-related contingent consideration, new business combinations	$	33,612	$	—	$	33,612
Premium shares, conversion of convertible notes	$	114,785	$	—	$	114,785

RESTATED CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)



	For the Three Months Ended September 30,									For the Nine Months Ended September 30,
	As Reported			Adjustments			As Restated			As Reported			Adjustments			As Restated
Revenue	$	1,309,596		$	5,892		$	1,315,488		$	3,378,180		$	2,358		$	3,380,538
Costs of revenue, excluding depreciation and amortization	1,122,961			(100		)	1,122,861			2,914,904			(3		)	2,914,901
Depreciation and amortization	41,747			—			41,747			111,996			—			111,996
General and administrative expenses	59,889			—			59,889			167,454			—			167,454
Interest expense, net	12,643			—			12,643			37,595			—			37,595
Other income, net	(1,416		)	—			(1,416		)	(5,424		)	—			(5,424		)
Income from continuing operations before income taxes	$	73,772		$	5,992		$	79,764		$	151,655		$	2,361		$	154,016
Provision for income taxes	(28,042		)	(2,277		)	(30,319		)	(57,671		)	(898		)	(58,569		)
Net income from continuing operations	$	45,730		$	3,715		$	49,445		$	93,984		$	1,463		$	95,447
Discontinued operations:
Net loss from discontinued operations, including loss on disposal and impairment charges	$	(320	)	$	—		$	(320	)	$	(592	)	$	—		$	(592	)
Net income	$	45,410		$	3,715		$	49,125		$	93,392		$	1,463		$	94,855
Net income attributable to non-controlling interests	139			—			139			48			—			48
Net income attributable to MasTec, Inc.	$	45,271		$	3,715		$	48,986		$	93,344		$	1,463		$	94,807
Earnings per share:
Basic earnings (loss) per share:
Continuing operations	$	0.56		$	0.04		$	0.60		$	1.19		$	0.02		$	1.21
Discontinued operations	(0.00		)	0.00			0.00			(0.01		)	0.00			(0.01		)
Total basic earnings per share ^(a)	$	0.55		$	0.05		$	0.60		$	1.18		$	0.02		$	1.20
Basic weighted average common shares outstanding	81,811			—			81,811			79,158			—			79,158
Diluted earnings (loss) per share:
Continuing operations	$	0.53		$	0.04		$	0.57		$	1.09		$	0.02		$	1.11
Discontinued operations	(0.00		)	0.00			(0.00		)	(0.01		)	0.00			(0.01		)
Total diluted earnings per share ^(a)	$	0.53		$	0.04		$	0.57		$	1.08		$	0.02		$	1.10
Diluted weighted average common shares outstanding	85,824			—			85,824			86,416			—			86,416


(a)	Earnings per share calculations may contain slight summation differences due to rounding.

Of the revenue adjustments set forth in the restated condensed unaudited consolidated statements of operations above, $5.8 million and $1.9 million, respectively, resulted from cost-to-complete estimate changes for two large and complex Electrical Transmission segment projects accounted for under the percentage-of-completion method for the three and nine month periods ended September 30, 2014. In addition, there were other immaterial adjustments identified within various segments, which affected revenue and costs of revenue, excluding depreciation and amortization. For the three month period ended September 30, 2014, the adjustments discussed above resulted in an increase in revenue of $5.9 million, a decrease in costs of revenue, excluding depreciation and amortization, of $0.1 million, and an increase in Net Income of approximately $3.7 million. For the nine month period ended September 30, 2014, the cumulative effect of the adjustments resulted in an increase in revenue of $2.4 million. Net Income increased by approximately $1.5 million. Basic and diluted earnings per share from continuing operations increased by $0.04 cents each for the three month period ended September 30, 2014. Total basic and diluted earnings per share increased by $0.05 cents and $0.04 cents, respectively, for the three month period ended September 30, 2014. Basic and diluted earnings per share for the nine month period ended September 30, 2014 increased by $0.02 cents each.



	For the Three Months Ended September 30,								For the Nine Months Ended September 30,
Restated Unaudited EBITDA and EBITDA Reconciliation (in millions):	As Reported			Adjustments		As Restated			As Reported			Adjustments		As Restated
EBITDA - Continuing operations	$	128.2		$	6.0	$	134.2		$	301.2		$	2.4	$	303.6
Less:
Interest expense, net	(12.6		)	—		(12.6		)	(37.6		)	—		(37.6		)
Depreciation and amortization	(41.7		)	—		(41.7		)	(112.0		)	—		(112.0		)
Income from continuing operations before income taxes	$	73.8		$	6.0	$	79.8		$	151.7		$	2.4	$	154.0

Impact of Adjustments on Comparison of Results - Electrical Transmission Segment

As previously reported, Electrical Transmission segment revenue for the three and nine month periods ended September 30, 2014 totaled $133 million and $327 million, respectively. As restated, Electrical Transmission segment revenue for the three and nine month periods ended September 30, 2014 totaled $138 million and $329 million, respectively. As restated, Electrical Transmission segment revenue for the three month period ended September 30, 2014 increased versus the same period in the prior year by $20 million, or 16.6%. Organic revenue growth totaled $17 million, and acquisitions contributed $3 million of increased revenue for the three month period ended September 30, 2014. As restated, segment revenue for the nine month period ended September 30, 2014 increased versus the same period in the prior year by $7 million, or 2.3%. Acquisitions contributed $16 million of increased revenue for the nine month period ended September 30, 2014, whereas organic revenue declined by $9 million versus the same period in the prior year, primarily as a result of first quarter 2014 winter weather disruptions and timing of project startups.

As previously reported, Electrical Transmission EBITDA for the three and nine month periods ended September 30, 2014 totaled $13 million and $33 million, respectively. EBITDA margins for the Electrical Transmission segment, as previously reported, were 9.6% and 10.1% for the three and nine month periods ended September 30, 2014, respectively. As restated, Electrical Transmission EBITDA for the three and nine month periods ended September 30, 2014 totaled $19 million and $35 million, respectively, and EBITDA margins for the Electrical Transmission segment, as restated, were 13.4% and 10.7%, respectively.

As restated, Electrical Transmission EBITDA for the three month period ended September 30, 2014 increased versus the same period in the prior year by $6 million, or 53.3%, and EBITDA margin improved to 13.4% from 10.2% in the prior year period. As restated, EBITDA margins improved by 320 basis points, or approximately $4 million for the three month period ended September 30, 2014 versus the same period in the prior year, driven primarily by improved project efficiencies. As restated, Electrical Transmission EBITDA for the nine month period ended September 30, 2014 increased versus the same period in the prior year by $8 million, or 30.0%, and EBITDA margin improved to 10.7% from 8.4% in the prior year period. As restated, EBITDA margins improved by 230 basis points, or approximately $8 million for the nine month period ended September 30, 2014 as compared to the same period in the prior year, driven primarily by improved project efficiencies.

RESTATED CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)



	For the Three Months Ended September 30,									For the Nine Months Ended September 30,
	As Reported			Adjustments			As Restated			As Reported			Adjustments			As Restated
Net income	$	45,410		$	3,715		$	49,125		$	93,392		$	1,463		$	94,855
Other comprehensive (loss) income:
Foreign currency translation adjustments, net of tax	(12,944		)	(7		)	(12,951		)	(10,601		)	(10		)	(10,611		)
Comprehensive income	$	32,466		$	3,708		$	36,174		$	82,791		$	1,453		$	84,244
Comprehensive income attributable to non-controlling interests	139			—			139			48			—			48
Comprehensive income attributable to MasTec, Inc.	$	32,327		$	3,708		$	36,035		$	82,743		$	1,453		$	84,196

RESTATED CONDENSED UNAUDITED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)



	September 30, 2014
	As Reported			Adjustments			As Restated
Assets
Current assets:
Cash and cash equivalents	$	7,067		$	—		$	7,067
Accounts receivable, net of allowance	1,389,903			(4,225		)	1,385,678
Inventories, net	105,038			—			105,038
Prepaid expenses and other current assets, including discontinued operations	71,944			—			71,944
Total current assets	$	1,573,952		$	(4,225	)	$	1,569,727
Property and equipment, net	614,359			—			614,359
Goodwill	1,000,024			—			1,000,024
Other intangible assets, net	222,212			—			222,212
Other long-term assets, including discontinued operations	59,579			—			59,579
Total assets	$	3,470,126		$	(4,225	)	$	3,465,901
Liabilities and equity
Current liabilities
Current maturities of long-term debt	$	71,798		$	—		$	71,798
Accounts payable	481,840			—			481,840
Accrued salaries and wages	82,083			—			82,083
Other accrued expenses	82,054			898			82,952
Acquisition-related contingent consideration, current	39,126			—			39,126
Billings in excess of costs and earnings	130,997			(1,265		)	129,732
Other current liabilities, including discontinued operations	22,976			(5,311		)	17,665
Total current liabilities	$	910,874		$	(5,678	)	$	905,196
Acquisition-related contingent consideration, net of current portion	115,649			—			115,649
Long-term debt	1,088,289			—			1,088,289
Long-term deferred tax liabilities, net	180,449			—			180,449
Other long-term liabilities	45,978			—			45,978
Total liabilities	$	2,341,239		$	(5,678	)	$	2,335,561
Commitments and contingencies
Equity:
Preferred stock, $1.00 par value: authorized shares - 5,000,000; issued and outstanding shares – none	$	—		$	—		$	—
Common stock, $0.10 par value: authorized shares - 145,000,000; issued shares - 87,106,042 as of September 30, 2014	8,711			—			8,711
Capital surplus	781,400			—			781,400
Contributed shares	6,002			—			6,002
Retained earnings	435,208			1,463			436,671
Accumulated other comprehensive loss	(23,887		)	(10		)	(23,897		)
Treasury stock, at cost: 5,262,831 shares as of September 30, 2014	(83,385		)	—			(83,385		)
Total MasTec, Inc. shareholders’ equity	$	1,124,049		$	1,453		$	1,125,502
Non-controlling interests	$	4,838		$	—		$	4,838
Total equity	$	1,128,887		$	1,453		$	1,130,340
Total liabilities and equity	$	3,470,126		$	(4,225	)	$	3,465,901

A reclassification adjustment associated with cost-to-complete estimates reduced other current liabilities and costs and earnings in excess of billings by $5.3 million. Additionally, other cost-to-complete estimate changes for the projects discussed above resulted in an increase in costs and earnings in excess of billings of $1.1 million, for a net decrease in cost in excess of billings and earnings of $4.2 million as of September 30, 2014. Billings in excess of costs and earnings decreased by $1.3 million as of September 30, 2014. The increase in Net Income discussed above resulted in an increase in current taxes payable of $0.9 million.

RESTATED CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)



	For the Nine Months Ended September 30,
	As Reported			Adjustments			As Restated
Cash flows from operating activities:
Net income	$	93,392		$	1,463		$	94,855
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	111,996			—			111,996
Non-cash interest expense	6,052			—			6,052
Non-cash stock-based compensation expense	11,584			—			11,584
Excess tax benefit from stock-based compensation	(3,494		)	—			(3,494		)
Provision for deferred income taxes	4,294			—			4,294
Other non-cash items	1,136			—			1,136
(Gains) losses on sales of assets, including impairment charges on discontinued operations	(4,068		)	—			(4,068		)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable	(131,175		)	4,225			(126,950		)
Inventories	(27,553		)	—			(27,553		)
Other assets, current and long-term portion	5,202			—			5,202
Accounts payable and accrued expenses	14,521			898			15,419
Billings in excess of costs and earnings	4,171			(1,275		)	2,896
Book overdrafts	(10,399		)	—			(10,399		)
Other liabilities, current and long-term portion	5,360			(5,311		)	49
Net cash provided by operating activities	$	81,019		$	—		$	81,019
Cash flows (used in) provided by investing activities:
Cash paid for acquisitions, net of cash acquired	(162,901		)	—			(162,901		)
Capital expenditures	(90,962		)	—			(90,962		)
Proceeds from sale of property and equipment	12,204			—			12,204
Proceeds from disposal of business, net of cash divested	—			—			—
Payments for other investments, net	(1,046		)	—			(1,046		)
Net cash used in investing activities	$	(242,705	)	$	—		$	(242,705	)
Cash flows provided by (used in) financing activities:
Proceeds from credit facilities	1,319,623			—			1,319,623
Repayments of credit facilities	(955,151		)	—			(955,151		)
Repayment of senior notes, including convertible notes	(105,325		)	—			(105,325		)
Repayments of other borrowings	(15,827		)	—			(15,827		)
Payments of capital lease obligations	(38,358		)	—			(38,358		)
Proceeds from stock-based awards, net of tax withholdings	318			—			318
Excess tax benefit from stock-based compensation	3,494			—			3,494
Payments of acquisition-related contingent consideration	(60,341		)	—			(60,341		)
Payments of financing costs, including call premiums on extinguishment of debt	(1,455		)	—			(1,455		)
Net cash provided by financing activities	$	146,978		$	—		$	146,978
Effect of currency translation on cash	(1,152		)	—			(1,152		)
Net decrease in cash and cash equivalents	$	(15,860	)	$	—		$	(15,860	)
Cash and cash equivalents - beginning of period	$	22,927		$	—		$	22,927
Cash and cash equivalents - end of period	$	7,067		$	—		$	7,067



Supplemental cash flow information:
Interest paid	$	35,106	$	—	$	35,106
Income taxes paid, net of refunds	$	46,423	$	—	$	46,423
Supplemental disclosure of non-cash information:
Equipment acquired under capital lease	$	55,488	$	—	$	55,488
Equipment acquired under financing arrangements	$	6,851	$	—	$	6,851
Acquisition-related contingent consideration, new business combinations	$	34,988	$	—	$	34,988
Premium shares, conversion of convertible notes	$	114,785	$	—	$	114,785