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MYR Group Inc. Announces Second-Quarter and First-Half 2024 Results

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MYR Group Inc. (NASDAQ: MYRG) reported its second-quarter and first-half 2024 financial results, showing a decline in performance. Key highlights include:

- Q2 revenues of $828.9 million, down 6.7% year-over-year
- Q2 net loss of $15.3 million, or ($0.91) per diluted share
- Q2 EBITDA of ($4.7) million
- Backlog of $2.54 billion

The decrease in revenues and profitability was primarily due to unfavorable clean energy projects in the T&D segment and one project in the C&I segment. Despite these challenges, management remains confident in future growth opportunities driven by increased electrification, growing demand for data centers, and continued investments in electrical infrastructure.

MYR Group Inc. (NASDAQ: MYRG) ha riportato i risultati finanziari del secondo trimestre e del primo semestre 2024, evidenziando un calo delle performance. I punti salienti includono:

- Fatturato Q2 di 828,9 milioni di dollari, in calo del 6,7% rispetto all'anno precedente
- Perdita netta Q2 di 15,3 milioni di dollari, ovvero ($0,91) per azione diluita
- EBITDA Q2 di (4,7) milioni di dollari
- Portafoglio ordini di 2,54 miliardi di dollari

Il calo dei ricavi e della redditività è stato principalmente causato da progetti di energia pulita sfavorevoli nel segmento T&D e da un progetto nel segmento C&I. Nonostante queste difficoltà, la direzione rimane fiduciosa nelle opportunità di crescita future, stimolate dall'aumento dell'elettrificazione, dalla crescente domanda di data center e dagli investimenti continui nelle infrastrutture elettriche.

MYR Group Inc. (NASDAQ: MYRG) ha informado sus resultados financieros del segundo trimestre y del primer semestre de 2024, mostrando un declive en el rendimiento. Los puntos destacados incluyen:

- Ingresos del Q2 de 828,9 millones de dólares, una disminución del 6,7% interanual
- Pérdida neta del Q2 de 15,3 millones de dólares, o ($0,91) por acción diluida
- EBITDA del Q2 de (4,7) millones de dólares
- Cartera de pedidos de 2,54 mil millones de dólares

La disminución en los ingresos y la rentabilidad se debió principalmente a proyectos de energía limpia desfavorables en el segmento T&D y a un proyecto en el segmento C&I. A pesar de estos desafíos, la dirección sigue confiando en las oportunidades de crecimiento futuras impulsadas por una mayor electrificación, una creciente demanda de centros de datos y continuas inversiones en infraestructura eléctrica.

MYR Group Inc. (NASDAQ: MYRG)는 2024년 2분기 및 상반기 재무 결과를 발표했으며, 성과가 감소했음을 보여주었습니다. 주요 하이라이트는 다음과 같습니다:

- 2분기 매출 8억 2890만 달러, 전년 대비 6.7% 감소
- 2분기 순손실 1530만 달러, 즉 희석주당 ($0.91)
- 2분기 EBITDA (470만 달러)
- 백로그 25억 4000만 달러

수익과 수익성의 감소는 주로 T&D 부문에서의 불리한 청정 에너지 프로젝트와 C&I 부문에서의 하나의 프로젝트 때문이었습니다. 이러한 어려움에도 불구하고 경영진은 전기화 증가, 데이터 센터에 대한 수요 증가 및 전기 인프라에 대한 지속적인 투자에 의해 주도되는 미래 성장 기회에 대해 확신하고 있습니다.

MYR Group Inc. (NASDAQ: MYRG) a annoncé ses résultats financiers pour le deuxième trimestre et le premier semestre 2024, montrant une baisse de performance. Les points forts incluent :

- Revenus du T2 de 828,9 millions de dollars, en baisse de 6,7 % par rapport à l'année précédente
- Perte nette du T2 de 15,3 millions de dollars, soit ($0,91) par action diluée
- EBITDA du T2 de (4,7) millions de dollars
- Carnet de commandes de 2,54 milliards de dollars

La baisse des revenus et de la rentabilité est principalement due à des projets d'énergie propre défavorables dans le segment T&D et à un projet dans le segment C&I. Malgré ces défis, la direction reste confiante dans les opportunités de croissance futures, alimentées par une électrification accrue, une demande croissante pour les centres de données et des investissements continus dans l'infrastructure électrique.

MYR Group Inc. (NASDAQ: MYRG) hat seine finanziellen Ergebnisse für das zweite Quartal und das erste Halbjahr 2024 bekannt gegeben, die einen Rückgang der Leistung zeigen. Zu den wesentlichen Punkten gehören:

- Q2-Umsatz von 828,9 Millionen Dollar, ein Rückgang von 6,7% im Jahresvergleich
- Q2-Nettoverlust von 15,3 Millionen Dollar, oder ($0,91) pro verwässerter Aktie
- Q2-EBITDA von (4,7) Millionen Dollar
- Auftragsbestand von 2,54 Milliarden Dollar

Der Rückgang der Umsätze und der Rentabilität war hauptsächlich auf ungünstige Projekte im Bereich der sauberen Energie im T&D-Segment und ein Projekt im C&I-Segment zurückzuführen. Trotz dieser Herausforderungen ist das Management weiterhin zuversichtlich hinsichtlich zukünftiger Wachstumschancen, die durch eine steigende Elektrifizierung, die wachsende Nachfrage nach Rechenzentren und kontinuierliche Investitionen in die elektrische Infrastruktur vorangetrieben werden.

Positive
  • Backlog increased to $2.54 billion from $2.43 billion in the previous quarter
  • Management reports steady bidding activity in both T&D and C&I segments
  • Core businesses in transmission, distribution, and C&I performed well
Negative
  • Q2 revenues decreased by 6.7% year-over-year to $828.9 million
  • Q2 net loss of $15.3 million, compared to net income of $22.3 million in Q2 2023
  • Gross margin decreased to 4.9% in Q2 2024 from 10.1% in Q2 2023
  • SG&A expenses increased to $61.8 million in Q2 2024 from $57.8 million in Q2 2023
  • Total backlog decreased by 7.0% year-over-year

Insights

MYR Group's Q2 2024 results reveal significant challenges, with a notable decline in financial performance. The company reported a quarterly net loss of $15.3 million, or ($0.91) per diluted share, compared to a net income of $22.3 million in Q2 2023. This stark reversal is primarily attributed to issues with clean energy projects in the T&D segment and a problematic project in the C&I segment.

Key financial metrics paint a concerning picture:

  • Quarterly revenues decreased by 6.7% to $828.9 million
  • Gross margin plummeted to 4.9% from 10.1% in Q2 2023
  • EBITDA turned negative at ($4.7) million, down from $47.1 million in Q2 2023

The company's backlog, while still substantial at $2.54 billion, has decreased by 7.0% year-over-year. This could signal potential headwinds for future revenue growth.

Despite these challenges, MYR's management remains optimistic about future prospects, citing increased electrification, growing demand for data centers and continued investments in electrical infrastructure. However, investors should closely monitor the company's ability to successfully complete the troubled projects and return to profitability in the coming quarters.

MYR Group's Q2 2024 results offer a fascinating glimpse into the challenges facing the specialty contracting sector, particularly in the realm of clean energy projects. The company's struggles with these initiatives in its T&D segment highlight the potential risks associated with the rapidly evolving renewable energy landscape.

Several market trends are worth noting:

  • The clean energy sector's complexity is evident, with MYR facing unexpected hurdles that significantly impacted profitability.
  • Despite setbacks, the underlying demand for electrical infrastructure remains strong, as evidenced by the company's substantial $2.54 billion backlog.
  • The data center market continues to be a bright spot, aligning with broader digital transformation trends.

Interestingly, MYR's experience may serve as a cautionary tale for other contractors entering the clean energy space. It underscores the importance of robust project management and risk assessment in this evolving sector.

Looking ahead, the company's ability to navigate these challenges while capitalizing on growing electrification trends will be crucial. Investors and industry observers should watch for signs of improved project execution and margin recovery in future quarters as indicators of MYR's adaptability in this dynamic market.

THORNTON, Colo., July 31, 2024 (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 Canada, announced today its second-quarter and first-half 2024 financial results.

Highlights for Second Quarter 2024

  • Quarterly revenues of $828.9 million
  • Quarterly net loss of $15.3 million, or ($0.91) per diluted share
  • Quarterly EBITDA of ($4.7) million
  • Backlog of $2.54 billion

Management Comments
Rick Swartz, MYR’s President and CEO, said, “Our second quarter 2024 financials reflected decreased revenues and consolidated gross profit, compared to the same period of 2023, which were primarily related to unfavorable clean energy projects within our T&D segment and one project within our C&I segment. We expect all of these projects will reach mechanical completion this year.” Mr. Swartz also said, “Aside from these challenged projects, our core businesses in transmission, distribution and C&I performed well, and we see steady bidding activity in both of our segments. Our team continues to execute well and with increased electrification, growing demand for data centers, and continued investments being made in electrical infrastructure, we are confident in our ability to generate positive returns for our shareholders going forward.”

Second Quarter Results
MYR reported second-quarter 2024 revenues of $828.9 million, a decrease of $59.7 million, or 6.7 percent, compared to the second quarter of 2023. Specifically, our Transmission and Distribution (“T&D”) segment reported quarterly revenues of $458.2 million, a decrease of $45.5 million, or 9.0 percent, from the second quarter of 2023, due to a decrease of $39.8 million in revenue on transmission projects and a decrease of $5.8 million in revenue on distribution projects. Our Commercial and Industrial (“C&I”) segment reported quarterly revenues of $370.7 million, a decrease of $14.2 million, or 3.7 percent, from the second quarter of 2023, which was primarily due to the delayed start of certain projects.

Consolidated gross profit decreased to $40.8 million for the second quarter of 2024, compared to $90.1 million for the second quarter of 2023. The decrease in gross profit was due to lower margin and lower revenues. Gross margin decreased to 4.9 percent for the second quarter of 2024 from 10.1 percent for the second quarter of 2023. The decrease in gross margin was primarily related to clean energy projects in T&D, the unfavorable impact of a C&I project, as well as an increase in costs associated with labor, project inefficiencies and schedule compression on certain projects. These margin decreases were partially offset by favorable change orders, better-than-anticipated productivity, a favorable job closeout, favorable joint venture results and favorable materials pricing on a project. Changes in estimates of gross profit on certain projects resulted in gross margin decreases of 7.2 percent and 1.3 percent for the second quarter of 2024 and 2023, respectively.

Selling, general and administrative expenses (“SG&A”) increased to $61.8 million for the second quarter of 2024, compared to $57.8 million for the second quarter of 2023. The period-over-period increase was primarily due to an increase in contingent compensation expense related to a prior acquisition and an increase in employee-related expenses to support future growth, partially offset by a decrease in employee incentive compensation costs.

Income tax benefit was $6.9 million for the second quarter of 2024, with an effective tax rate of 31.0 percent, compared to income tax expense of $9.3 million for the second quarter of 2023, with an effective tax rate of 29.5 percent. The increase in the effective tax rate for the second quarter of 2024 compared to the second quarter of 2023 was primarily due to higher other permanent difference items.

For the second quarter of 2024, net loss was $15.3 million, or ($0.91) per diluted share, compared to net income of $22.3 million, or $1.33 per diluted share, for the same period of 2023. Second-quarter 2024 EBITDA, a non-GAAP financial measure, was ($4.7) million, compared to $47.1 million in the second quarter of 2023.

First-Half Results
MYR reported first-half 2024 revenues of $1.64 billion, a decrease of $55.7 million, or 3.3 percent, compared to the first half of 2023. Specifically, our T&D segment reported revenues of $948.6 million, a decrease of $0.5 million, from the first half of 2023, due to a decrease of $24.0 million in revenue on transmission projects, mostly offset by an increase of $23.5 million in revenue on distribution projects. Our C&I segment reported revenues of $695.8 million, a decrease of $55.4 million, or 7.4 percent from the first half of 2023, which was primarily due to the delayed start of certain projects.

Consolidated gross profit decreased to $127.1 million in the first half of 2024, compared to $174.5 million in the first half of 2023. The decrease in gross profit was due to lower margin and lower revenues. Gross margin decreased to 7.7 percent for the first half of 2024 from 10.3 percent for the first half of 2023. The decrease in gross margin was primarily related to clean energy projects in T&D, labor and project inefficiencies, the unfavorable impact of a C&I project, an increase in costs associated with schedule compression on certain projects and an unfavorable change order. These margin decreases were partially offset by better-than-anticipated productivity, favorable change orders, favorable joint venture results and a favorable job closeout. Changes in estimates of gross profit on certain projects resulted in a gross margin decreases of 4.2 percent and 1.0 percent for the first half of 2024 and 2023, respectively.

SG&A increased to $124.1 million in the first half of 2024, compared to $114.7 million for the first half of 2023. The period-over-period increase was primarily due to an increase in contingent compensation expense related to a prior acquisition and an increase in employee-related expenses to support future growth.

Interest expense increased to $2.3 million in the first half of 2024, compared to $1.7 million for the first half of 2023. The period-over-period increase was primarily due to higher interest rates, partially offset by lower average debt balances during the first half of 2024 as compared to the first half of 2023.

Income tax benefit was $2.7 million for the first half of 2024, with an effective tax rate of negative 281.9 percent, compared to income tax expense of $13.2 million for the first half of 2023, with an effective tax rate of 22.6 percent. The period-over-period change in tax rate was primarily due to lower pretax income and higher other permanent difference items, offset by lower stock compensation excess tax benefits.

For the first half of 2024, net income was $3.7 million, or $0.22 per diluted share, compared to $45.4 million, or $2.70 per diluted share, for the same period of 2023.

Backlog
As of June 30, 2024, MYR's backlog was $2.54 billion, compared to $2.43 billion as of March 31, 2024. As of June 30, 2024, T&D backlog was $830.7 million, and C&I backlog was $1.71 billion. Total backlog at June 30, 2024 decreased $190.5 million, or 7.0 percent, from the $2.73 billion reported at June 30, 2023.

Balance Sheet
As of June 30, 2024, MYR had $426.6 million of borrowing availability under its $490 million 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 second-quarter 2024 results on Thursday, August 1, 2024 at 8:00 a.m. Mountain time. To participate via telephone and join the call live, please register in advance here: https://register.vevent.com/register/BI677e6fd415474feea43f3f2f3bbcb594. Upon registration, telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number and a unique passcode. Participants may access the audio-only webcast of the conference call from the Investors page of MYR Group’s website at myrgroup.com. A replay of the webcast will be available for seven days.

About MYR Group Inc.
MYR Group is a holding company of leading, specialty electrical contractors providing services throughout the United States and Canada through two business segments: Transmission & Distribution (T&D) and Commercial & Industrial (C&I). MYR Group subsidiaries have the experience and expertise to complete electrical installations of any type and size. Through their T&D segment they provide services on electric transmission, distribution networks, substation facilities, clean energy projects and electric vehicle charging infrastructure. Their comprehensive T&D services include design, engineering, procurement, construction, upgrade, maintenance and repair services. T&D customers include investor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners and other contractors. Through their C&I segment, they provide a broad range of services which include the design, installation, maintenance and repair of commercial and industrial wiring generally for airports, hospitals, data centers, hotels, stadiums, commercial and industrial facilities, clean energy projects, manufacturing plants, processing facilities, water/waste-water treatment facilities, mining facilities, intelligent transportation systems, roadway lighting, signalization and electric vehicle charging infrastructure. C&I customers include general contractors, commercial and industrial facility owners, government agencies and developers. 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,” “estimate,” “expect,” “intend,” “likely,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “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, 2023, 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:
Kelly M. Huntington, Chief Financial Officer, 847-290-1891, investorinfo@myrgroup.com

Investor Contact:
David Gutierrez, Dresner Corporate Services, 312-780-7204, dgutierrez@dresnerco.com

Financial tables follow…

MYR GROUP INC.
Consolidated Balance Sheets
As of June 30, 2024 and December 31, 2023
 
(in thousands, except share and per share data)June 30, 
2024
 December 31,  
2023
 (unaudited)  
ASSETS   
Current assets:   
Cash and cash equivalents$1,869  $24,899 
Accounts receivable, net of allowances of $898 and $1,987, respectively 554,822   521,893 
Contract assets, net of allowances of $619 and $610, respectively 402,301   420,616 
Current portion of receivable for insurance claims in excess of deductibles 8,349   8,267 
Refundable income taxes 14,093   4,034 
Prepaid expenses and other current assets 35,871   46,535 
Total current assets 1,017,305   1,026,244 
Property and equipment, net of accumulated depreciation of $387,375 and $380,465, respectively 278,099   268,978 
Operating lease right-of-use assets 40,396   35,012 
Goodwill 115,372   116,953 
Intangible assets, net of accumulated amortization of $32,688 and $30,534, respectively 79,855   83,516 
Receivable for insurance claims in excess of deductibles 33,687   33,739 
Investment in joint ventures 12,861   8,707 
Other assets 5,667   5,597 
Total assets$1,583,242  $1,578,746 
    
LIABILITIES AND SHAREHOLDERS' EQUITY   
Current liabilities:   
Current portion of long-term debt$6,617  $7,053 
Current portion of operating lease obligations 10,472   9,237 
Current portion of finance lease obligations 2,168   2,039 
Accounts payable 344,130   359,363 
Contract liabilities 256,622   240,411 
Current portion of accrued self-insurance 24,190   28,269 
Accrued income taxes    237 
Other current liabilities 103,244   100,593 
Total current liabilities 747,443   747,202 
Deferred income tax liabilities 47,647   48,230 
Long-term debt 38,448   29,188 
Accrued self-insurance 51,700   51,796 
Operating lease obligations, net of current maturities 29,897   25,775 
Finance lease obligations, net of current maturities 1,645   314 
Other liabilities 33,120   25,039 
Total liabilities 949,900   927,544 
Commitments and contingencies   
Shareholders’ equity:   
Preferred stock—$0.01 par value per share; 4,000,000 authorized shares; none issued and outstanding at June 30, 2024 and December 31, 2023     
Common stock—$0.01 par value per share; 100,000,000 authorized shares; 16,648,028 and 16,684,492 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively 166   167 
Additional paid-in capital 160,001   162,386 
Accumulated other comprehensive loss (7,525)  (3,880)
Retained earnings 480,700   492,529 
Total shareholders’ equity 633,342   651,202 
Total liabilities and shareholders’ equity$1,583,242  $1,578,746 
        


MYR GROUP INC.
Unaudited Consolidated Statements of Operations
Three and Six Months Ended June 30, 2024 and 2023
 
 Three months ended 
June 30,
 Six months ended 
June 30,
(in thousands, except per share data)2024
 2023
 2024
 2023
Contract revenues$828,890  $888,616  $1,644,452  $1,700,232 
Contract costs 788,047   798,489   1,517,366   1,525,713 
Gross profit 40,843   90,127   127,086   174,519 
Selling, general and administrative expenses 61,839   57,775   124,072   114,739 
Amortization of intangible assets 1,217   1,229   2,445   2,455 
Gain on sale of property and equipment (1,506)  (1,315)  (2,995)  (2,539)
Income (loss) from operations (20,707)  32,438   3,564   59,864 
Other income (expense):       
Interest income 81   193   223   514 
Interest expense (1,241)  (1,154)  (2,295)  (1,740)
Other income (expense), net (270)  120   (533)  30 
Income (loss) before provision for income taxes (22,137)  31,597   959   58,668 
Income tax expense (benefit) (6,860)  9,324   (2,703)  13,232 
Net income (loss)$(15,277) $22,273  $3,662  $45,436 
Income (loss) per common share:       
—Basic$(0.91) $1.33  $0.22  $2.73 
—Diluted$(0.91) $1.33  $0.22  $2.70 
Weighted average number of common shares and potential common shares outstanding:       
—Basic 16,756   16,707   16,734   16,662 
—Diluted 16,809   16,809   16,820   16,817 
                


MYR GROUP INC.
Unaudited Consolidated Statements of Cash Flows
Six Months Ended June 30, 2024 and 2023
 
 Six months ended
June 30,
(in thousands)2024 2023
Cash flows from operating activities:   
Net income$3,662  $45,436 
Adjustments to reconcile net income to net cash flows provided by operating activities:   
Depreciation and amortization of property and equipment 29,659   26,040 
Amortization of intangible assets 2,445   2,455 
Stock-based compensation expense 4,248   4,304 
Gain on sale of property and equipment (2,995)  (2,539)
Other non-cash items 1,266   (221)
Changes in operating assets and liabilities:   
Accounts receivable, net (34,139)  (1,714)
Contract assets, net 17,057   (81,243)
Receivable for insurance claims in excess of deductibles (30)  459 
Other assets (3,507)  3,147 
Accounts payable (10,336)  23,004 
Contract liabilities 16,514   1,468 
Accrued self-insurance (4,161)  (1,962)
Other liabilities 10,688   (2,790)
Net cash flows provided by operating activities 30,371   15,844 
Cash flows from investing activities:   
Proceeds from sale of property and equipment 3,380   3,331 
Purchases of property and equipment (45,961)  (41,730)
Net cash flows used in investing activities (42,581)  (38,399)
Cash flows from financing activities:   
Borrowings under revolving lines of credit 290,907   185,330 
Repayments under revolving lines of credit (279,488)  (178,247)
Payment of principal obligations under equipment notes (2,595)  (2,512)
Payment of principal obligations under finance leases (549)  (584)
Proceeds from exercise of stock options    20 
Repurchase of common stock (14,251)   
Debt refinancing costs (33)  (2,120)
Payments related to tax withholding for stock-based compensation (5,866)  (7,936)
Other financing activities 1,600    
Net cash flows used in financing activities (10,275)  (6,049)
Effect of exchange rate changes on cash (545)  414 
Net decrease in cash and cash equivalents (23,030)  (28,190)
Cash and cash equivalents:   
Beginning of period 24,899   51,040 
End of period$1,869  $22,850 
    
Supplemental cash flow information:   
Noncash financing activities:   
Share repurchases not settled$2,008  $ 
        


MYR GROUP INC.
Unaudited Consolidated Selected Data,
Unaudited Performance Measure and Reconciliation of Non-GAAP Measure
For the Three, Six and Twelve Months Ended June 30, 2024 and 2023 and
As of June 30, 2024, December 31, 2023, June 30, 2023 and June 30, 2022
 
 Three months ended 
June 30,
 Last twelve months ended 
June 30,
 
(dollars in thousands, except share and per share data)2024 2023 2024 2023 
Summary Statement of Operations Data:        
Contract revenues$828,890  $888,616  $3,588,125  $3,364,036  
Gross profit$40,843  $90,127  $316,964  $357,134  
Income (loss) from operations$(20,707) $32,438  $72,793  $123,624  
Income (loss) before provision for income taxes$(22,137) $31,597  $67,295  $120,550  
Income tax expense (benefit)$(6,860) $9,324  $18,079  $32,105  
Net income (loss)$(15,277) $22,273  $49,216  $88,445  
Tax rate 31.0%  29.5%  26.9%  26.6% 
         
Per Share Data:        
Income (loss) per common share:        
–    Basic$(0.91) $1.33  $2.95 (1)$5.31 (1)
–    Diluted$(0.91) $1.33  $2.92 (1)$5.26 (1)
Weighted average number of common shares and potential common shares outstanding:        
–    Basic 16,756   16,707   16,718 (2) 16,640 (2)
–    Diluted 16,809   16,809   16,828 (2) 16,818 (2)
                 


(in thousands)June 30,
2024
 December 31,
2023
 June 30,
2023
 June 30,
2022
Summary Balance Sheet Data:       
Total assets$1,583,242 $1,578,746 $1,464,803 $1,264,369
Total shareholders’ equity$633,342 $651,202 $604,300 $531,082
Goodwill and intangible assets$195,227 $200,469 $202,989 $207,151
Total funded debt (3)$45,065 $36,241 $45,125 $55,446
            


 Three months ended
June 30,
 Six months ended
June 30, 2024
(dollars in thousands)2024
 2023
 2024
 2023
Segment Results:Amount Percent Amount Percent Amount Percent Amount Percent
Contract revenues:               
Transmission & Distribution$458,209  55.3% $503,737  56.7% $948,604  57.7% $949,060  55.8%
Commercial & Industrial 370,681  44.7   384,879  43.3   695,848  42.3   751,172  44.2 
Total$828,890  100.0% $888,616  100.0% $1,644,452  100.0% $1,700,232  100.0%
Operating income (loss):               
Transmission & Distribution$(8,300) (1.8)% $37,734  7.5% $21,536  2.3% $70,554  7.4%
Commercial & Industrial 1,608  0.4   12,623  3.3   13,031  1.9   23,250  3.1 
Total (6,692) (0.8)  50,357  5.7   34,567  2.1   93,804  5.5 
Corporate (14,015) (1.7)  (17,919) (2.0)  (31,003) (1.9)  (33,940) (2.0)
Consolidated$(20,707) (2.5)% $32,438  3.7% $3,564  0.2% $59,864  3.5%
                            
See 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 June 30, 2024 and 2023
 
 Three months ended
June 30,
 Last twelve months ended
June 30,
(in thousands, except share, per share data, ratios and percentages)2024 2023 2024 2023
        
Financial Performance Measures (4):       
EBITDA (5)$(4,703) $47,064  $134,939  $180,667 
EBITDA per Diluted Share (6)$(0.28) $2.80  $8.02  $10.74 
EBIA, net of taxes (7)$(13,637) $23,817  $56,375  $95,021 
Free Cash Flow (8)$2,503  $(43,429) $(3,424) $34,844 
Book Value per Period End Share (9)$37.92  $35.94     
Tangible Book Value (10)$438,115  $401,311     
Tangible Book Value per Period End Share (11)$26.23  $23.87     
Funded Debt to Equity Ratio (12) 0.07   0.07     
Asset Turnover (13)     2.45   2.66 
Return on Assets (14)     3.4%  7.0%
Return on Equity (15)     8.1%  16.7%
Return on Invested Capital (16)     8.7%  16.0%
        
Reconciliation of Non-GAAP Measures:       
Reconciliation of Net Income (Loss) to EBITDA:       
Net income (loss)$(15,277) $22,273  $49,216  $88,445 
Interest expense, net 1,160   961   4,897   3,515 
Income tax expense (benefit) (6,860)  9,324   18,079   32,105 
Depreciation and amortization 16,274   14,506   62,747   56,602 
EBITDA (5)$(4,703) $47,064  $134,939  $180,667 
        
Reconciliation of Net Income (Loss) per Diluted Share to EBITDA per Diluted Share:       
Net income (loss) per share$(0.91) $1.33  $2.92  $5.26 
Interest expense, net, per share 0.07   0.06   0.29   0.21 
Income tax expense (benefit) per share (0.41)  0.55   1.08   1.90 
Depreciation and amortization per share 0.97   0.86   3.73   3.37 
EBITDA per Diluted Share (6)$(0.28) $2.80  $8.02  $10.74 
        
Reconciliation of Non-GAAP measure:       
Net income (loss)$(15,277) $22,273  $49,216  $88,445 
Interest expense, net 1,160   961   4,897   3,515 
Amortization of intangible assets 1,217   1,229   4,897   5,444 
Tax impact of interest and amortization of intangible assets (737)  (646)  (2,635)  (2,383)
EBIA, net of taxes (7)$(13,637) $23,817  $56,375  $95,021 
        
Calculation of Free Cash Flow:       
Net cash flow from operating activities$22,681  $(21,314) $85,543  $123,209 
Less: cash used in purchasing property and equipment (20,178)  (22,115)  (88,967)  (88,365)
Free Cash Flow (8)$2,503  $(43,429) $(3,424) $34,844 
        
See notes at the end of this earnings release.
 


MYR GROUP INC.
Unaudited Performance Measures and Reconciliation of Non-GAAP Measures
As of June 30, 2024, 2023 and 2022
 
(in thousands, except per share amounts)June 30, 2024 June 30, 2023
Reconciliation of Book Value to Tangible Book Value:   
Book value (total shareholders' equity)$633,342  $604,300 
Goodwill and intangible assets (195,227)  (202,989)
Tangible Book Value (10)$438,115  $401,311 
    
Reconciliation of Book Value per Period End Share to Tangible Book Value per Period End Share:   
Book value per period end share$37.92  $35.94 
Goodwill and intangible assets per period end share (11.69)  (12.07)
Tangible Book Value per Period End Share (11)$26.23  $23.87 
    
Calculation of Period End Shares:   
Shares outstanding 16,648   16,710 
Plus: common equivalents 53   102 
Period End Shares (17) 16,701   16,812 
        


(in thousands)June 30, 2024 June 30, 2023 June 30, 2022
Reconciliation of Invested Capital to Shareholders Equity:     
Book value (total shareholders' equity)$633,342  $604,300  $531,082 
Plus: total funded debt 45,065   45,125   55,446 
Less: cash and cash equivalents (1,869)  (22,850)  (22,057)
Invested Capital$676,538  $626,575  $564,471 
Average Invested Capital (18)$651,557  $595,523   
 
See notes at the end of this earnings release.
 


(1)Last-twelve-months earnings per share is the sum of earnings per share reported in the last four quarters.
(2)Last-twelve-months weighted average basic and diluted shares were determined by adding the weighted average shares reported for the last four quarters and dividing by four.
(3)Funded debt includes outstanding borrowings under our revolving credit facility and our outstanding equipment notes.
(4)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.
(5)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 (loss) as a measure of operating performance or to net cash flows provided by operating activities as a measure of liquidity. Certain material covenants contained within our credit agreement are based on EBITDA with certain additional adjustments, including our interest coverage ratio and leverage ratio, 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 provides MYR Group Inc. and its investors with an additional tool to compare our operating performance on a consistent basis by removing the impact of certain items that management believes to not directly reflect the company’s core operations. Management further believes that EBITDA is useful to investors and other external users of our financial statements in evaluating the company’s operating performance and cash flow because EBITDA is widely used by investors to measure a company’s operating performance without regard to items such as interest expense, taxes, depreciation and amortization, which can vary substantially from company to company depending upon accounting methods and book value of assets, useful lives placed on assets, capital structure and the method by which assets were acquired.
(6)EBITDA per diluted share is calculated by dividing EBITDA by the weighted average number of diluted shares outstanding for the period. EBITDA per diluted share is not recognized under GAAP and does not purport to be an alternative to income (loss) per diluted share.
(7)EBIA, net of taxes is defined as net income (loss) plus net interest plus amortization of intangible assets, less the tax impact of net interest and amortization of intangible assets. The tax impact of net interest and amortization of intangible assets is computed by multiplying net interest and amortization of intangible assets by the effective tax rate. Management uses EBIA, net of taxes, to measure our results exclusive of the impact of financing and amortization of intangible assets costs.
(8)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 (loss), 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.
(9)Book value per period end share is calculated by dividing total shareholders’ equity at the end of the period by the period end shares outstanding.
(10)Tangible book value is calculated by subtracting goodwill and intangible assets outstanding at the end of the period from shareholders’ equity. Tangible book value is not recognized under GAAP and does not purport to be an alternative to book value or shareholders’ equity.
(11)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 (loss) per diluted share.
(12)The funded debt to equity ratio is calculated by dividing total funded debt at the end of the period by total shareholders’ equity at the end of the period.
(13)Asset turnover is calculated by dividing the current period revenue by total assets at the beginning of the period.
(14)Return on assets is calculated by dividing net income (loss) for the period by total assets at the beginning of the period.
(15)Return on equity is calculated by dividing net income (loss) for the period by total shareholders’ equity at the beginning of the period.
(16)Return on invested capital is calculated by dividing EBIA, net of taxes, less any dividends, by average invested capital. Return on invested capital is not recognized under GAAP, and is a key metric used by management to determine our executive compensation.
(17)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.
(18)Average invested capital is calculated by adding net funded debt (total funded debt less cash and marketable securities) to total shareholders’ equity and calculating the average of the beginning and ending of each period.

FAQ

What were MYR Group's Q2 2024 revenue and earnings?

MYR Group reported Q2 2024 revenues of $828.9 million and a net loss of $15.3 million, or ($0.91) per diluted share.

How did MYR Group's Q2 2024 results compare to Q2 2023?

MYR Group's Q2 2024 results showed a decline compared to Q2 2023. Revenues decreased by 6.7%, and the company reported a net loss compared to a net income of $22.3 million in Q2 2023.

What factors impacted MYR Group's Q2 2024 performance?

MYR Group's Q2 2024 performance was negatively impacted by unfavorable clean energy projects in the T&D segment and one project in the C&I segment, as well as increased costs associated with labor and project inefficiencies.

What is MYR Group's current backlog as of Q2 2024?

MYR Group's backlog as of June 30, 2024, was $2.54 billion, compared to $2.43 billion as of March 31, 2024.

How did MYR Group's T&D and C&I segments perform in Q2 2024?

The T&D segment reported quarterly revenues of $458.2 million, a 9.0% decrease from Q2 2023. The C&I segment reported quarterly revenues of $370.7 million, a 3.7% decrease from Q2 2023.

MYR Group, Inc.

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Engineering & Construction
Water, Sewer, Pipeline, Comm & Power Line Construction
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United States of America
THORNTON