MYR Group Inc. (“MYR”) (NASDAQ: MYRG), a holding
company of leading specialty contractors serving the electric
utility infrastructure, commercial and industrial construction
markets in the United States and western Canada, today announced
its first-quarter 2019 financial results.
Highlights
- Record first quarter revenues of $468.1 million
- First quarter net income attributable to MYR of $7.4 million,
or $0.44 per diluted share
- Backlog of $1.14 billion
Management CommentsRick Swartz, MYR’s President
and CEO, said “Our first quarter 2019 financial results included
$468.1 million of revenues, a 35.4% increase over the first quarter
of 2018, marking another record-high revenue quarter for MYR. We
had a solid start in 2019 due to our strong market position,
diverse mix of project types, an active bidding climate, and a
large array of opportunities.”
First Quarter ResultsMYR reported first-quarter
2019 revenues of $468.1 million, an increase of $122.5 million, or
35.4 percent, compared to the first quarter of 2018. Specifically,
the T&D segment reported record high revenues of $272.5
million, an increase of $56.1 million, or 26.0 percent, from the
first quarter of 2018, primarily due to increased volume on
transmission projects. The C&I segment reported record high
revenues of $195.5 million, an increase of $66.3 million, or 51.3
percent, from the first quarter of 2018, primarily due to increases
in volume across both our T&D and C&I segments and
incremental revenues from the Huen Companies, which was acquired in
the third quarter of 2018.
Consolidated gross profit increased to $42.9 million in the
first quarter of 2019, a $7.1 million or 19.9 percent increase from
the first quarter of 2018. The increase in gross profit was due to
higher revenues, partially offset by lower margins. Gross margin
was 9.2 percent for the first quarter of 2019 compared to 10.3
percent for the first quarter of 2018. The decrease in gross margin
was primarily due to inclement weather on certain projects and
inefficiencies related to unanticipated overtime and material
delays associated with a joint venture project in which we own the
majority controlling interest, which were partially offset by net
loss attributable to noncontrolling interest. The joint venture
project is subject to margin guarantees, for which an offset is
recognized in other income. Gross margin was also negatively
impacted by an increase in non-reimbursable cost on a project.
These margin decreases were partially offset by better than
anticipated productivity on a project. Changes in estimates of
gross profit on certain projects resulted in a gross margin
decreases of 0.8 percent and 0.1 percent for the first quarter of
2019 and 2018, respectively.
Selling, general and administrative expenses (“SG&A”)
increased to $33.0 million in the first quarter of 2019, compared
to $28.3 million for the first quarter of 2018. The
period-over-period increase was primarily due to the acquisition of
the Huen Companies and higher employee related expenses to support
operations. As a percentage of revenues, SG&A decreased to 7.0
percent for the first quarter of 2019 from 8.2 percent for the
first quarter of 2018.
Income tax expense was $2.5 million for the first quarter of
2019, with an effective tax rate of 27.8 percent, compared to tax
expense of $2.3 million for the first quarter of 2018, with an
effective tax rate of 28.9 percent. The decrease in the tax rate in
the first quarter of 2019 was primarily due to state income taxes
offset by the impact of our noncontrolling interest. Our inability
to utilize losses experienced in certain Canadian operations
negatively impacted the effective tax rate in the first quarter of
2018.
For the first quarter of 2019, net income attributable to MYR
Group Inc. was $7.4 million, or $0.44 per diluted share
attributable to MYR Group Inc., compared to $5.6 million, or $0.34
per diluted share, for the same period of 2018. First-quarter 2019
EBITDA, a non-GAAP financial measure, was $20.9 million, or 4.5
percent of revenues, compared to $18.0 million, or 5.2 percent of
revenues, in the first quarter of 2018.
Backlog As of March 31, 2019, MYR's backlog was
$1.136 billion, compared to $1.147 billion as of December 31, 2018.
As of March 31, 2019, T&D backlog was $473.6 million, and
C&I backlog was $662.3 million. Total backlog at March 31, 2019
increased $177.4 million, or 18.5 percent, from the $958.5 million
reported at March 31, 2018.
Balance Sheet As of March 31, 2019, MYR had
$148.9 million of borrowing availability under its revolving credit
facility.
Non-GAAP Financial Measures To supplement MYR’s
financial statements presented in accordance with generally
accepted accounting principles in the United States (“GAAP”), MYR
uses certain non-GAAP measures. Reconciliation to the nearest GAAP
measures of all non-GAAP measures included in this press release
can be found at the end of this release. MYR’s definitions of these
non-GAAP measures may differ from similarly titled measures used by
others. These non-GAAP measures should be considered supplemental
to, and not a substitute for, financial information prepared in
accordance with GAAP.
MYR believes that these non-GAAP measures are useful because
they (i) provide both management and investors meaningful
supplemental information regarding financial performance by
excluding certain expenses and benefits that may not be indicative
of recurring core business operating results, (ii) permit investors
to view MYR’s performance using the same tools that management uses
to evaluate MYR’s past performance, reportable business segments
and prospects for future performance, (iii) publicly disclose
results that are relevant to financial covenants included in MYR’s
credit facility and (iv) otherwise provide supplemental information
that may be useful to investors in evaluating MYR.
Conference Call MYR will host a conference call
to discuss its first-quarter 2019 results on Thursday, May 2, 2019,
at 9:00 a.m. Central time. To participate in the conference call
via telephone, please dial (877) 561-2750 (domestic) or (763)
416-8565 (international) at least five minutes prior to the start
of the event. A replay of the conference call will be available
through Thursday, May 9, 2019, at 1:00 P.M. Eastern time, by
dialing (855) 859-2056 or (404) 537-3406, and entering conference
ID 5690388. MYR will also broadcast the conference call live via
the internet. Interested parties may access the webcast through the
Investor Relations section of MYR's website at www.myrgroup.com.
Please access the website at least 15 minutes prior to the start of
the call to register, download and install any necessary audio
software. The webcast will be available until Thursday, May 9,
2019, at 1:00 P.M. Eastern time.
About MYRMYR is a holding company of leading
specialty contractors serving the electric utility infrastructure,
commercial and industrial construction markets throughout the
United States and western Canada who have the experience and
expertise to complete electrical installations of any type and
size. Their comprehensive services on electric transmission and
distribution networks and substation facilities include design,
engineering, procurement, construction, upgrade, maintenance and
repair services. Transmission and distribution customers include
investor-owned utilities, cooperatives, private developers,
government-funded utilities, independent power producers,
independent transmission companies, industrial facility owners and
other contractors. Commercial and industrial electrical contracting
services are provided to general contractors, commercial and
industrial facility owners, local governments and developers
generally throughout the United States and western Canada. For more
information, visit myrgroup.com.
Forward-Looking Statements Various statements
in this announcement, including those that express a belief,
expectation, or intention, as well as those that are not statements
of historical fact, are forward-looking statements. The
forward-looking statements may include projections and estimates
concerning the timing and success of specific projects and our
future production, revenue, income, capital spending, segment
improvements and investments. Forward-looking statements are
generally accompanied by words such as “anticipate,” “believe,”
“encouraged,” “estimate,” “expect,” “intend,” “likely,” “may,”
“objective,” “outlook,” “plan,” “possible,” “potential,” “project,”
“remain confident,” “should” “unlikely,” or other words that convey
the uncertainty of future events or outcomes. The forward-looking
statements in this announcement speak only as of the date of this
announcement. We disclaim any obligation to update these statements
(unless required by securities laws), and we caution you not to
rely on them unduly. We have based these forward-looking statements
on our current expectations and assumptions about future events.
While our management considers these expectations and assumptions
to be reasonable, they are inherently subject to significant
business, economic, competitive, regulatory and other risks,
contingencies and uncertainties, most of which are difficult to
predict and many of which are beyond our control. No
forward-looking statement can be guaranteed and actual results may
differ materially from those projected. Forward-looking statements
in this announcement should be evaluated together with the many
uncertainties that affect MYR's business, particularly those
mentioned in the risk factors and cautionary statements in Item 1A
of MYR's Annual Report on Form 10-K for the fiscal year ended
December 31, 2018, and in any risk factors or cautionary statements
contained in MYR's subsequent Quarterly Reports on Form 10-Q or
Current Reports on Form 8-K.
MYR Group Inc. Contact:Betty R. Johnson, Chief
Financial Officer, 847-290-1891, investorinfo@myrgroup.com
Investor Contact: Steve Carr, Dresner Corporate
Services, 312-780-7211, scarr@dresnerco.com
Financial tables follow…
|
|
MYR GROUP INC.Consolidated
Balance SheetsAs of March 31, 2019
and December 31, 2018 |
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
(In thousands,
except share and per share data) |
|
2019 |
|
|
|
2018 |
|
|
|
(unaudited) |
|
|
|
ASSETS |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and
cash equivalents |
$ |
1,338 |
|
|
$ |
7,507 |
|
|
Accounts
receivable, net of allowances of $2,020 and $1,331,
respectively |
|
297,967 |
|
|
|
288,427 |
|
|
Contract
assets |
|
188,069 |
|
|
|
160,281 |
|
|
Current
portion of receivable for insurance claims in excess of
deductibles |
|
10,003 |
|
|
|
10,572 |
|
|
Other
current assets |
|
8,379 |
|
|
|
8,847 |
|
|
Total
current assets |
|
505,756 |
|
|
|
475,634 |
|
|
Property and
equipment, net of accumulated depreciation of $260,743 and
$253,495, respectively |
|
162,565 |
|
|
|
161,892 |
|
|
Operating
lease right-of-use assets |
|
16,266 |
|
|
|
— |
|
|
Goodwill |
|
56,592 |
|
|
|
56,588 |
|
|
Intangible
assets, net of accumulated amortization of $7,765 and $7,031,
respectively |
|
32,542 |
|
|
|
33,266 |
|
|
Receivable
for insurance claims in excess of deductibles |
|
16,564 |
|
|
|
17,173 |
|
|
Investment in joint ventures |
|
2,342 |
|
|
|
1,324 |
|
|
Other
assets |
|
2,591 |
|
|
|
2,878 |
|
|
Total
assets |
$ |
795,218 |
|
|
$ |
748,755 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Current
portion of long-term debt |
$ |
3,742 |
|
|
$ |
3,681 |
|
|
Current
portion of operating lease obligations |
|
4,401 |
|
|
|
— |
|
|
Current
portion of finance lease obligations |
|
1,127 |
|
|
|
1,119 |
|
|
Accounts
payable |
|
170,352 |
|
|
|
139,480 |
|
|
Contract
liabilities |
|
28,519 |
|
|
|
58,534 |
|
|
Current
portion of accrued self-insurance |
|
20,901 |
|
|
|
19,633 |
|
|
Income taxes
payable, net |
|
3,109 |
|
|
|
— |
|
|
Other
current liabilities |
|
61,409 |
|
|
|
61,358 |
|
|
Total
current liabilities |
|
293,560 |
|
|
|
283,805 |
|
|
Deferred
income tax liabilities |
|
17,052 |
|
|
|
17,398 |
|
|
Long-term
debt |
|
106,204 |
|
|
|
86,111 |
|
|
Accrued
self-insurance |
|
32,561 |
|
|
|
34,406 |
|
|
Operating
lease obligations, net of current maturities |
|
11,600 |
|
|
|
— |
|
|
Finance
lease obligations, net of current maturities |
|
1,275 |
|
|
|
1,514 |
|
|
Other
liabilities |
|
1,492 |
|
|
|
1,057 |
|
|
Total
liabilities |
|
463,744 |
|
|
|
424,291 |
|
|
Commitments
and contingencies |
|
|
|
|
Stockholders’ equity: |
|
|
|
|
Preferred
stock—$0.01 par value per share; 4,000,000 authorized shares; |
|
|
|
|
none issued
and outstanding at March 31, 2019 and December 31, 2018 |
|
— |
|
|
|
— |
|
|
Common
stock—$0.01 par value per share; 100,000,000 authorized
shares; |
|
|
|
|
16,610,032
and 16,564,961 shares issued and outstanding at March 31, 2019 and
December 31, 2018, respectively |
|
177 |
|
|
|
165 |
|
|
Additional
paid-in capital |
|
148,938 |
|
|
|
148,276 |
|
|
Accumulated
other comprehensive loss |
|
(270 |
) |
|
|
(193 |
) |
|
Retained
earnings |
|
181,882 |
|
|
|
174,736 |
|
|
Total
stockholders' equity attributable to MYR Group Inc. |
|
330,727 |
|
|
|
322,984 |
|
|
Noncontrolling interest |
|
747 |
|
|
|
1,480 |
|
|
Total
stockholders’ equity |
|
331,474 |
|
|
|
324,464 |
|
|
Total
liabilities and stockholders’ equity |
$ |
795,218 |
|
|
$ |
748,755 |
|
|
|
|
|
|
|
|
|
|
|
|
|
MYR GROUP INC.Unaudited
Consolidated Statements of Operations and Comprehensive
IncomeThree Months Ended March 31, 2019 and
2018 |
|
|
|
Three months ended |
|
March
31, |
(In thousands,
except per share data) |
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
Contract
revenues |
|
$ |
468,094 |
|
|
$ |
345,611 |
|
Contract
costs |
|
|
425,218 |
|
|
|
309,858 |
|
Gross
profit |
|
|
42,876 |
|
|
|
35,753 |
|
Selling,
general and administrative expenses |
|
|
32,987 |
|
|
|
28,280 |
|
Amortization
of intangible assets |
|
|
734 |
|
|
|
117 |
|
Gain on sale
of property and equipment |
|
|
(471 |
) |
|
|
(1,051 |
) |
Income from
operations |
|
|
9,626 |
|
|
|
8,407 |
|
Other income
(expense): |
|
|
|
|
Interest
expense |
|
|
(1,205 |
) |
|
|
(721 |
) |
Other
income, net |
|
|
746 |
|
|
|
249 |
|
Income
before provision for income taxes |
|
|
9,167 |
|
|
|
7,935 |
|
Income tax
expense |
|
|
2,547 |
|
|
|
2,291 |
|
Net
income |
|
|
6,620 |
|
|
|
5,644 |
|
Less: net
loss attributable to noncontrolling interest |
|
|
(733 |
) |
|
|
— |
|
Net income
attributable to MYR Group Inc. |
|
$ |
7,353 |
|
|
$ |
5,644 |
|
Income per
common share attributable to MYR Group Inc.: |
|
|
|
|
—Basic |
|
$ |
0.45 |
|
|
$ |
0.35 |
|
—Diluted |
|
$ |
0.44 |
|
|
$ |
0.34 |
|
Weighted
average number of common shares and potential common shares
outstanding: |
|
|
|
|
—Basic |
|
|
16,514 |
|
|
|
16,321 |
|
—Diluted |
|
|
16,658 |
|
|
|
16,520 |
|
|
|
|
|
|
Net
income |
|
$ |
6,620 |
|
|
$ |
5,644 |
|
Other
comprehensive loss: |
|
|
|
|
Foreign
currency translation adjustment |
|
|
(77 |
) |
|
|
(17 |
) |
Other
comprehensive loss |
|
|
(77 |
) |
|
|
(17 |
) |
Total
comprehensive income |
|
|
6,543 |
|
|
|
5,627 |
|
Less: net
loss attributable to noncontrolling interest |
|
|
(733 |
) |
|
|
— |
|
Total
comprehensive income attributable to MYR Group Inc. |
|
$ |
7,276 |
|
|
$ |
5,627 |
|
|
|
|
|
|
|
MYR GROUP INC.Unaudited
Consolidated Statements of Cash FlowsThree Months
Ended March 31, 2019 and 2018 |
|
|
Three months ended |
March
31, |
(In thousands) |
|
2019 |
|
|
|
2018 |
|
|
|
|
|
Cash flows from operating
activities: |
|
|
|
Net
income |
$ |
6,620 |
|
|
$ |
5,644 |
|
Adjustments
to reconcile net income to net cash flows provided by (used in)
operating activities: |
|
|
|
Depreciation
and amortization of property and equipment |
|
9,815 |
|
|
|
9,275 |
|
Amortization
of intangible assets |
|
734 |
|
|
|
117 |
|
Stock-based
compensation expense |
|
951 |
|
|
|
420 |
|
Deferred
income taxes |
|
(315 |
) |
|
|
48 |
|
Gain on sale
of property and equipment |
|
(471 |
) |
|
|
(1,051 |
) |
Other
non-cash items |
|
(56 |
) |
|
|
702 |
|
Changes in
operating assets and liabilities: |
|
|
|
Accounts
receivable, net |
|
(9,380 |
) |
|
|
23,663 |
|
Contract
assets |
|
(27,615 |
) |
|
|
(12,753 |
) |
Receivable
for insurance claims in excess of deductibles |
|
1,178 |
|
|
|
(290 |
) |
Other
assets |
|
(849 |
) |
|
|
1,405 |
|
Accounts
payable |
|
38,220 |
|
|
|
(3,765 |
) |
Contract
liabilities |
|
(30,033 |
) |
|
|
(12,333 |
) |
Accrued self
insurance |
|
(580 |
) |
|
|
(857 |
) |
Other
liabilities |
|
3,576 |
|
|
|
11,808 |
|
Net cash
flows provided by (used in) operating activities |
|
(8,205 |
) |
|
|
22,033 |
|
Cash flows from investing
activities: |
|
|
|
Proceeds
from sale of property and equipment |
|
832 |
|
|
|
1,074 |
|
Purchases of
property and equipment |
|
(9,911 |
) |
|
|
(14,497 |
) |
Net cash
flows used in investing activities |
|
(9,079 |
) |
|
|
(13,423 |
) |
Cash flows from financing
activities: |
|
|
|
Net
borrowings (repayments) under revolving lines of credit |
|
21,609 |
|
|
|
(11,578 |
) |
Payment of
principal obligations under equipment notes |
|
(1,455 |
) |
|
|
— |
|
Payment of
principal obligations under capital leases |
|
(230 |
) |
|
|
(272 |
) |
Proceeds
from exercise of stock options |
|
282 |
|
|
|
581 |
|
Repurchase
of common shares |
|
(778 |
) |
|
|
(934 |
) |
Other
financing activities |
|
(8,364 |
) |
|
|
— |
|
Net cash
flows provided by (used in) financing activities |
|
11,064 |
|
|
|
(12,203 |
) |
Effect of
exchange rate changes on cash |
|
51 |
|
|
|
(31 |
) |
Net decrease
in cash and cash equivalents |
|
(6,169 |
) |
|
|
(3,624 |
) |
Cash and cash
equivalents: |
|
|
|
Beginning of
period |
|
7,507 |
|
|
|
5,343 |
|
End of
period |
$ |
1,338 |
|
|
$ |
1,719 |
|
|
|
|
|
|
|
MYR GROUP INC.Unaudited
Consolidated Selected Data, Unaudited
Performance Measure and Reconciliation of Non-GAAP
MeasureThree and Twelve Months Ended March 31,
2019 and 2018 |
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Last twelve months ended |
|
|
|
|
|
|
|
|
|
March
31, |
|
March
31, |
|
|
(in thousands, except share and
per share data) |
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary Statement of Operations
Data: |
|
|
|
|
|
|
|
|
|
|
Contract revenues |
|
$ |
468,094 |
|
|
$ |
345,611 |
|
|
$ |
1,653,652 |
|
|
$ |
1,448,799 |
|
|
|
Gross profit |
|
$ |
42,876 |
|
|
$ |
35,753 |
|
|
$ |
174,183 |
|
|
$ |
135,017 |
|
|
|
Income from operations |
|
$ |
9,626 |
|
|
$ |
8,407 |
|
|
$ |
51,531 |
|
|
$ |
37,485 |
|
|
|
Income before provision for income taxes |
|
$ |
9,167 |
|
|
$ |
7,935 |
|
|
$ |
44,300 |
|
|
$ |
31,734 |
|
|
|
Income tax expense |
|
$ |
2,547 |
|
|
$ |
2,291 |
|
|
$ |
12,030 |
|
|
$ |
6,136 |
|
|
|
Net
income attributable to MYR Group Inc. |
|
$ |
7,353 |
|
|
$ |
5,644 |
|
|
$ |
32,796 |
|
|
$ |
25,598 |
|
|
|
Tax rate |
|
|
|
|
27.8 |
% |
|
|
28.9 |
% |
|
|
27.2 |
% |
|
|
19.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
Income per common share
attributable to MYR Group
Inc.: |
|
|
|
|
|
|
|
|
|
- Basic |
|
$ |
0.45 |
|
|
$ |
0.35 |
|
|
$ |
2.00 |
|
(1 |
) |
$ |
1.58 |
|
(1 |
) |
|
- Diluted |
|
$ |
0.44 |
|
|
$ |
0.34 |
|
|
$ |
1.97 |
|
(1 |
) |
$ |
1.54 |
|
(1 |
) |
|
Weighted average number of common
shares |
|
|
|
|
|
|
|
|
|
and potential common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
- Basic |
|
|
16,514 |
|
|
|
16,321 |
|
|
|
16,489 |
|
(2 |
) |
|
16,312 |
|
(2 |
) |
|
- Diluted |
|
|
16,658 |
|
|
|
16,520 |
|
|
|
16,628 |
|
(2 |
) |
|
16,507 |
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31, |
|
December
31, |
|
March
31, |
|
March
31, |
|
|
(in
thousands) |
|
|
2019 |
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary Balance Sheet
Data: |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
795,218 |
|
|
$ |
748,755 |
|
|
$ |
591,591 |
|
|
$ |
548,708 |
|
|
|
Total
stockholders’ equity attributable to MYR Group Inc. |
$ |
330,727 |
|
|
$ |
322,984 |
|
|
$ |
293,428 |
|
|
$ |
263,894 |
|
|
|
Goodwill and intangible assets |
|
$ |
89,134 |
|
|
$ |
89,854 |
|
|
$ |
57,708 |
|
|
$ |
58,166 |
|
|
|
Total funded debt |
|
$ |
109,946 |
|
|
$ |
89,792 |
|
|
$ |
67,381 |
|
|
$ |
39,580 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Last twelve months ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
Financial Performance
Measure (3): |
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP measure: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income attributable to MYR Group Inc. |
|
|
|
|
|
$ |
32,796 |
|
|
$ |
25,598 |
|
|
|
Interest expense, net |
|
|
|
|
|
|
4,112 |
|
|
|
2,807 |
|
|
|
Tax impact of interest |
|
|
|
|
|
|
(1,118 |
) |
|
|
(542 |
) |
|
|
EBIT, net of taxes
(4) |
|
|
|
|
|
$ |
35,790 |
|
|
$ |
27,863 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See notes at the end of this earnings
release. |
|
|
|
|
|
|
|
|
MYR GROUP INC.Unaudited
Performance Measures and Reconciliation of Non-GAAP
MeasuresThree and Twelve Months Ended March 31,
2019 and 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Last twelve months ended |
|
|
|
|
|
|
|
|
|
March
31, |
|
March
31, |
|
|
(in thousands, except share, per
share data, ratios and
percentages) |
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Performance
Measures (3): |
|
|
|
|
|
|
|
|
|
|
EBITDA
(5) |
|
$ |
20,921 |
|
|
$ |
18,048 |
|
|
$ |
89,482 |
|
|
$ |
72,763 |
|
|
|
EBITDA per Diluted Share
(6) |
|
$ |
1.26 |
|
|
$ |
1.09 |
|
|
$ |
5.38 |
|
|
$ |
4.41 |
|
|
|
Free Cash Flow
(7) |
|
$ |
(18,116 |
) |
|
$ |
7,536 |
|
|
$ |
8,433 |
|
|
$ |
(35,563 |
) |
|
|
Book Value per Period End Share
(8) |
|
$ |
19.74 |
|
|
$ |
17.58 |
|
|
|
|
|
|
|
Tangible Book Value
(9) |
|
$ |
241,593 |
|
|
$ |
235,720 |
|
|
|
|
|
|
|
Tangible Book Value per Period
End Share (10) |
$ |
14.42 |
|
|
$ |
14.12 |
|
|
|
|
|
|
|
Funded Debt to Equity
Ratio
(11) |
|
|
0.33 |
|
|
|
0.23 |
|
|
|
|
|
|
|
Asset Turnover
(12) |
|
|
|
|
|
|
2.80 |
|
|
|
2.64 |
|
|
|
Return on Assets
(13) |
|
|
|
|
|
|
5.5 |
% |
|
|
4.7 |
% |
|
|
Return on
Equity
(14) |
|
|
|
|
|
|
11.2 |
% |
|
|
9.7 |
% |
|
|
Return on Invested Capital
(17) |
|
|
|
|
|
|
10.0 |
% |
|
|
9.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP Measures: |
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income
attributable to MYR Group Inc. to
EBITDA: |
|
|
|
|
|
|
|
|
|
|
Net
income attributable to MYR Group Inc. |
|
$ |
7,353 |
|
|
$ |
5,644 |
|
|
$ |
32,796 |
|
|
$ |
25,598 |
|
|
|
Net income - noncontrolling interests |
|
|
(733 |
) |
|
|
— |
|
|
|
(526 |
) |
|
|
— |
|
|
|
Net
income |
|
|
6,620 |
|
|
|
5,644 |
|
|
|
32,270 |
|
|
|
25,598 |
|
|
|
Interest expense, net |
|
|
1,205 |
|
|
|
721 |
|
|
|
4,112 |
|
|
|
2,807 |
|
|
|
Provision for income taxes |
|
|
2,547 |
|
|
|
2,291 |
|
|
|
12,030 |
|
|
|
6,136 |
|
|
|
Depreciation and amortization |
|
|
10,549 |
|
|
|
9,392 |
|
|
|
41,070 |
|
|
|
38,222 |
|
|
|
EBITDA
(5) |
|
$ |
20,921 |
|
|
$ |
18,048 |
|
|
$ |
89,482 |
|
|
$ |
72,763 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income
attributable to MYR Group Inc. per Diluted
Share |
|
|
|
|
|
|
|
|
to EBITDA per Diluted
Share: |
|
|
|
|
|
|
|
|
|
|
Net
income attributable to MYR Group Inc. per share |
$ |
0.44 |
|
|
$ |
0.34 |
|
|
$ |
1.97 |
|
|
$ |
1.54 |
|
|
|
Net income - noncontrolling interests per
share |
|
(0.04 |
) |
|
|
— |
|
|
|
(0.03 |
) |
|
|
— |
|
|
|
Net
income per share |
|
|
0.40 |
|
|
|
0.34 |
|
|
|
1.94 |
|
|
|
1.54 |
|
|
|
Interest expense, net, per share |
|
|
0.07 |
|
|
|
0.04 |
|
|
|
0.25 |
|
|
|
0.17 |
|
|
|
Provision for income taxes per share |
|
|
0.15 |
|
|
|
0.14 |
|
|
|
0.72 |
|
|
|
0.37 |
|
|
|
Depreciation and amortization per share |
|
|
0.64 |
|
|
|
0.57 |
|
|
|
2.47 |
|
|
|
2.33 |
|
|
|
EBITDA per Diluted Share
(6) |
|
$ |
1.26 |
|
|
$ |
1.09 |
|
|
$ |
5.38 |
|
|
$ |
4.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Free Cash
Flow: |
|
|
|
|
|
|
|
|
|
|
Net
cash flow from operating activities |
|
$ |
(8,205 |
) |
|
$ |
22,033 |
|
|
$ |
54,551 |
|
|
$ |
(225 |
) |
|
|
Less: cash used in purchasing property and
equipment |
|
(9,911 |
) |
|
|
(14,497 |
) |
|
|
(46,118 |
) |
|
|
(35,338 |
) |
|
|
Free Cash Flow
(7) |
|
$ |
(18,116 |
) |
|
$ |
7,536 |
|
|
$ |
8,433 |
|
|
$ |
(35,563 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Book Value to
Tangible Book Value: |
|
|
|
|
|
|
|
|
|
Book value (total stockholders' equity attributable to
MYR Group Inc.) |
$ |
330,727 |
|
|
$ |
293,428 |
|
|
|
|
|
|
|
Goodwill and intangible assets |
|
|
(89,134 |
) |
|
|
(57,708 |
) |
|
|
|
|
|
|
Tangible Book Value
(9) |
|
$ |
241,593 |
|
|
$ |
235,720 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Book Value per
Period End Share |
|
|
|
|
|
|
|
|
|
to Tangible Book Value per
Period End Share: |
|
|
|
|
|
|
|
|
|
Book value per period end share |
|
$ |
19.74 |
|
|
$ |
17.58 |
|
|
|
|
|
|
|
Goodwill and intangible assets per period end
share |
|
(5.32 |
) |
|
|
(3.46 |
) |
|
|
|
|
|
|
Tangible Book Value per Period
End Share (10) |
$ |
14.42 |
|
|
$ |
14.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Period End
Shares: |
|
|
|
|
|
|
|
|
|
|
Shares outstanding |
|
|
16,610 |
|
|
|
16,492 |
|
|
|
|
|
|
|
Plus: Common equivalents |
|
|
144 |
|
|
|
199 |
|
|
|
|
|
|
|
Period End Shares
(15) |
|
|
16,754 |
|
|
|
16,691 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31, |
|
March
31, |
|
March
31, |
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
Reconciliation of Invested
Capital to Shareholders
Equity: |
|
|
|
|
|
|
|
|
|
Book value (total stockholders' equity attributable to
MYR Group Inc.) |
|
|
$ |
330,727 |
|
|
$ |
293,428 |
|
|
$ |
263,894 |
|
|
|
Plus: Total Funded
Debt |
|
|
|
|
109,946 |
|
|
|
67,381 |
|
|
|
39,580 |
|
|
|
Less: Cash and cash
equivalents |
|
|
|
|
(1,338 |
) |
|
|
(1,719 |
) |
|
|
(6,939 |
) |
|
|
Invested Capital
(16) |
|
|
|
$ |
439,335 |
|
|
$ |
359,090 |
|
|
$ |
296,535 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See notes at the end of this earnings
release.
- Last-twelve-months earnings per share is the sum of earnings
per share attributable to MYR Group Inc. reported in the last four
quarters.
- Last-twelve-months average basic and diluted shares
attributable to MYR Group Inc. were determined by adding the
average shares reported for the last four quarters and dividing by
four.
- These financial performance measures are provided as
supplemental information to the financial statements. These
measures are used by management to evaluate our past performance,
our prospects for future performance and our ability to comply with
certain material covenants as defined within our credit agreement,
and to compare our results with those of our peers. In addition, we
believe that certain of the measures, such as book value, tangible
book value, free cash flow, asset turnover, return on equity, and
debt leverage are measures that are monitored by sureties, lenders,
lessors, suppliers and certain investors. Our calculation of each
measure is described in the following notes; our calculation may
not be the same as the calculations made by other companies.
- EBIT, net of taxes is defined as net income attributable to MYR
Group Inc. plus net interest, less the tax impact of net interest.
The tax impact of net interest is computed by multiplying net
interest by the effective tax rate. Management uses EBIT, net of
taxes, to measure our results exclusive of the impact of financing
costs.
- EBITDA is defined as earnings before interest, taxes,
depreciation and amortization. EBITDA is not recognized under
GAAP and does not purport to be an alternative to net income as a
measure of operating performance or to net cash flows provided by
operating activities as a measure of liquidity. EBITDA is a
component of the debt to EBITDA covenant, as defined in our credit
agreement, which we must comply with to avoid potential immediate
repayment of amounts borrowed or additional fees to seek relief
from our lenders. In addition, management considers EBITDA a useful
measure because it eliminates differences which are caused by
different capital structures as well as different tax rates and
depreciation schedules when comparing our measures to our peers’
measures.
- EBITDA per diluted share is calculated by dividing EBITDA by
the weighted average number of diluted shares attributable to MYR
Group Inc. outstanding for the period. EBITDA per diluted share is
not recognized under GAAP and does not purport to be an alternative
to income per diluted share.
- Free cash flow, which is defined as cash flow provided by
operating activities minus cash flow used in purchasing property
and equipment, is not recognized under GAAP and does not purport to
be an alternative to net income attributable to MYR Group Inc.,
cash flow from operations or the change in cash on the balance
sheet. Management views free cash flow as a measure of operational
performance, liquidity and financial health.
- Book value per period end share is calculated by dividing total
stockholders’ equity attributable to MYR Group Inc. at the end of
the period by the period end shares outstanding.
- Tangible book value is calculated by subtracting goodwill and
intangible assets outstanding at the end of the period from
stockholders’ equity attributable to MYR Group Inc. Tangible book
value is not recognized under GAAP and does not purport to be an
alternative to book value or stockholders’ equity attributable to
MYR Group Inc.
- Tangible book value per period end share is calculated by
dividing tangible book value at the end of the period by the period
end number of shares outstanding. Tangible book value per period
end share is not recognized under GAAP and does not purport to be
an alternative to income per diluted share.
- The funded debt to equity ratio is calculated by dividing total
funded debt at the end of the period by total stockholders’ equity
attributable to MYR Group Inc. at the end of the period.
- Asset turnover is calculated by dividing the current period
revenue by total assets at the beginning of the period.
- Return on assets is calculated by dividing net income
attributable to MYR Group Inc. for the period by total assets at
the beginning of the period.
- Return on equity is calculated by dividing net income
attributable to MYR Group Inc. for the period by total
stockholders’ equity attributable to MYR Group Inc. at the
beginning of the period.
- Period end shares is calculated by adding average common stock
equivalents for the quarter to the period end balance of common
stock outstanding. Period end shares is not recognized under GAAP
and does not purport to be an alternative to diluted shares.
Management views period end shares as a better measure of shares
outstanding as of the end of the period.
- Invested capital is calculated by adding net funded debt (total
funded debt less cash and marketable securities) to total
stockholders’ equity attributable to MYR Group Inc.
- Return on invested capital is calculated by dividing EBIT, net
of taxes, less any dividends, by invested capital at the beginning
of the period. Return on invested capital is not recognized under
GAAP, and is a key metric used by management to determine our
executive compensation.
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