ROLLING MEADOWS, Ill., April 29, 2020 (GLOBE NEWSWIRE) — 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, announced today its first-quarter 2020 financial results.
HighlightsFirst quarter revenues of $518.5 millionFirst-quarter net income attributable to MYR of $9.9 million, or $0.59 per diluted shareFirst-quarter EBITDA of $27.4 millionRecord backlog of $1.54 billionManagement Comments
Rick Swartz, MYR’s President and CEO, said, “Our first-quarter 2020 financial results included $518.5 million of revenues, a 10.8 percent increase over the first quarter of 2019, and increases in gross profit, earnings per share, net income and EBITDA. Backlog in the first quarter was $1.54 billion, a slight increase over our record backlog in fourth quarter of 2019. We had a solid start in 2020 due to our strong market position, large array of project activity and a very active bidding environment. Our first quarter financial results were minimally impacted by the COVID-19 pandemic as most of our operations are considered critical and essential businesses and social distancing orders around the country did not start until the last month of the quarter. We cannot predict the total impact to our future business until the stay-at-home orders are lifted and the economy starts to rebound in the months ahead. We are fortunate to be in an industry that constructs, maintains and supports critical electric infrastructure. As a leader in the electrical construction industry we remain focused, on keeping our people safe, providing superior service to our clients and supporting our communities during this difficult time.”First Quarter Results
MYR reported first-quarter 2020 revenues of $518.5 million, an increase of $50.4 million, or 10.8 percent, compared to the first quarter of 2019. Specifically, our Transmission and Distribution (“T&D”) segment reported revenues of $259.3 million for the first quarter of 2020, a decrease of $13.2 million, or 4.9 percent, from the first quarter of 2019, primarily due to reduced volume on a medium-size transmission project that is nearing completion. Our Commercial and Industrial (“C&I”) segment reported revenues of $259.2 million for the first quarter of 2020, an increase of $63.7 million, or 32.6 percent, from the first quarter of 2019, primarily due to incremental revenues from the CSI Electrical Contractors, Inc (“CSI”) acquisition, partially offset by a decrease due to the timing of activity on various-sized projects along with a slowdown of work related to the COVID-19 pandemic.Consolidated gross profit increased to $61.6 million in the first quarter of 2020, an increase of $18.7 million or 43.7 percent, from the first quarter of 2019. The increase in gross profit was due to higher revenues and margins. Gross margin was 11.9 percent for the first quarter of 2020 compared to 9.2 percent for the first quarter of 2019. The increase in gross margin was primarily due to better-than-anticipated productivity on certain projects, partially offset by labor inefficiencies on certain projects, some of which we are in ongoing negotiations to receive reimbursement and inclement weather experienced on certain projects. Changes in estimates of gross profit on certain projects resulted in a gross margin increase of 0.1 percent and decrease of 0.8 percent for the first quarter of 2020 and 2019, respectively.Selling, general and administrative expenses (“SG&A”) increased to $45.0 million in the first quarter of 2020, compared to $33.0 million for the first quarter of 2019. The period-over-period increase was primarily due to the acquisition of CSI along with higher employee-related expenses to support the growth in our operations.Income tax expense was $4.1 million for the first quarter of 2020, with an effective tax rate of 29.1 percent, compared to income tax expense of $2.5 million for the first quarter of 2019, with an effective tax rate of 27.8 percent. The period-over-period increase was primarily due to excess tax expense pertaining to the vesting of stock awards related to our stock compensation program along the impact of foreign earnings and the associated impact of the global intangible low tax income (“GILTI”).For the first quarter of 2020, net income attributable to MYR Group Inc. was $9.9 million, or $0.59 per diluted share attributable to MYR Group Inc., compared to $7.4 million, or $0.44 per diluted share, for the same period of 2019. First-quarter 2020 EBITDA, a non-GAAP financial measure, was $27.4 million, compared to $20.9 million in the first quarter of 2019.Backlog
As of March 31, 2020, MYR’s backlog was $1.54 billion, compared to $1.50 billion as of December 31, 2019. As of March 31, 2020, T&D backlog was $456.8 million, and C&I backlog was $1.08 billion. Total backlog at March 31, 2020 increased $404.3 million, or 35.6 percent, from the $1.14 billion reported at March 31, 2019.Balance Sheet
As of March 31, 2020, MYR had $185.1 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 2020 results on Thursday, April 30, 2020 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) and enter conference ID 6289207, at least five minutes prior to the start of the event. A replay of the conference call will be available through Thursday, May 7, 2020, at 1:00 P.M. Eastern time, by dialing (855) 859-2056 or (404) 537-3406 and entering conference ID 6289207. 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 7, 2020 at 1:00 P.M. Eastern time.About MYR
MYR 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 StatementsVarious 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,” “estimate,” “expect,” “intend,” “may,” “likely,” “unlikely,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should” 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, 2019, 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.comInvestor Contact:
David Gutierrez, Dresner Corporate Services, 312-780-7204, dgutierrez@dresnerco.comFinancial tables follow…
MYR GROUP INC.
Consolidated Balance Sheets
As of March 31, 2020 and December 31, 2019MYR GROUP INC.
Unaudited Consolidated Statements of Operations and Comprehensive Income
Three Months Ended March 31, 2020 and 2019MYR GROUP INC.
Unaudited Consolidated Statements of Cash Flows
Three Months Ended March 31, 2020 and 2019MYR GROUP INC.
Unaudited Consolidated Selected Data,
Unaudited Performance Measure and Reconciliation of Non-GAAP Measure
Three and Twelve Months Ended March 31, 2020 and 2019See notes at the end of this earnings release.
MYR GROUP INC.
Unaudited Performance Measures and Reconciliation of Non-GAAP Measures
Three and Twelve Months Ended March 31, 2020 and 2019See notes at the end of this earnings release.
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