Company: MTZ
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000015615-25-000052
Chunk: 337

Company: MASTEC INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 7
Chunk 337
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 further detail regarding our cash flows and related activity.

Sources and uses of cash are summarized below (in millions):

Three Months Ended March 31, 20252024Net cash provided by operating activities$78.4 $107.8 Net cash used in investing activities$(34.9)$(13.0)Net cash used in financing activities$(97.7)$(374.8)

Operating Activities.  Cash flow from operations is primarily influenced by changes in the timing of demand for our services and operating margins, but can also be affected by working capital needs associated with the various types of services we provide.  Working capital is affected by changes in total accounts receivable, net, prepaid expenses and other current assets, accounts payable and payroll tax payments, accrued expenses and contract liabilities, all of which tend to be related.  These working capital items are affected by changes in revenue resulting from the timing and volume of work performed, variability in the timing of customer billings and collections of receivables, as well as settlement of payables and other obligations.  Net cash provided by operating activities for the three month period ended March 31, 2025 was $78 million, as compared with $108 million of net cash provided by operating activities for the same period in 2024, for a decrease in net cash provided by operating activities of approximately $29 million, due, in part, to the effect of net decreases in expenses that reconcile net income to operating cash flows, including a decrease in depreciation expense, changes in working capital compared with the prior period, including from the negative effect of timing-related changes in accounts receivable, net and contract liabilities, offset, in part, by the positive effect of timing-related changes in accounts payable and accrued expenses, and an increase in net income as compared with the prior period.

Days sales outstanding, net of contract liabilities, which we refer to as “DSO,” is calculated as total accounts receivable, net of allowance, less contract liabilities, divided by average daily revenue for the most recently completed quarter as of the balance sheet date.  A decrease in DSO has a favorable impact on cash flow from operating activities, while an increase in DSO has a negative impact on cash flow from operating activities.  Our DSO was 66 as of March 31, 2025 as compared with DSO of 60 as of December 31, 2024.  Our DSOs can fluctuate from period to period due to timing of billings, billing terms, collections