MYR Group Inc. Announces Second-Quarter and First-Half 2024 Results
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.
- 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
- 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
Key financial metrics paint a concerning picture:
- Quarterly revenues decreased by
6.7% to$828.9 million - Gross margin plummeted to
4.9% from10.1% 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
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
Consolidated gross profit decreased to
Selling, general and administrative expenses (“SG&A”) increased to
Income tax benefit was
For the second quarter of 2024, net loss was
First-Half Results
MYR reported first-half 2024 revenues of
Consolidated gross profit decreased to
SG&A increased to
Interest expense increased to
Income tax benefit was
For the first half of 2024, net income was
Backlog
As of June 30, 2024, MYR's backlog was
Balance Sheet
As of June 30, 2024, MYR had
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 | 554,822 | 521,893 | |||||
Contract assets, net of allowances of | 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 | 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 | 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— | — | — | |||||
Common stock— | 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
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