• MYR Group Inc. Announces First-Quarter 2021 Results

    Источник: Nasdaq GlobeNewswire / 28 апр 2021 15:22:45   America/Chicago

    HENDERSON, Colo., April 28, 2021 (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, today announced its first-quarter 2021 financial results.

    Highlights for First Quarter 2021

    • Strong quarterly revenues of $592.5 million
    • Record high quarterly net income of $19.9 million, or $1.17 per diluted share
    • Record high quarterly EBITDA of $39.3 million
    • Strong quarter net cash flow from operating activities of $59.4 million and quarter free cash flow of $52.4 million
    • Strong backlog of $1.64 billion

    Management Comments
    Rick Swartz, MYR’s President and CEO, said, “Our strong first-quarter 2021 financial results included record high quarterly net income, EBITDA, and EPS. Net Income of $19.9 million, doubled our first quarter 2020 net income, along with increases in revenues, gross profit, EBITDA and free cash flow as compared to the same period of 2020. Our backlog at the end the first quarter 2021 was $1.64 billion, reflecting the current stability in the markets we serve, as well as our competitive strength.” Mr. Swartz continued, “We believe current economic conditions, the shift toward clean energy, and the need to replace aging infrastructure to strengthen the grid, coupled with a healthy market will continue to drive near term opportunities. Our market may also benefit from the current political climate which supports the investment and implementation of new and upgraded electrical infrastructure to complement the United States environmental and economic goals. Our broad geographic reach, breadth of service offerings, operational improvements, and successful project delivery are further elevating our position in the markets we serve.”

    First Quarter Results
    MYR reported first-quarter 2021 revenues of $592.5 million, an increase of $74.0 million, or 14.3 percent, compared to the first quarter of 2020. Specifically, our Transmission and Distribution (“T&D”) segment reported revenues of $314.9 million for the first quarter of 2021, an increase of $55.6 million, or 21.5 percent, from the first quarter of 2020, primarily due to an increase in revenue on large-sized projects. Our Commercial and Industrial (“C&I”) segment reported revenues of $277.6 million for the first quarter of 2021, an increase of $18.4 million, or 7.1 percent, from the first quarter of 2020, primarily due to an increase in revenue on medium-sized projects. Additionally, revenues during the first-quarter 2020 were negatively impacted by a slight slowdown of C&I work in certain geographic areas related to the COVID-19 pandemic.

    Consolidated gross profit increased to $77.0 million in the first quarter of 2021, an increase of $15.4 million or 24.9 percent, from the first quarter of 2020. The increase in gross profit was due to higher revenues and margins. Gross margin was 13.0 percent for the first quarter of 2021 compared to 11.9 percent for the first quarter of 2020. The increase in gross margin was primarily due to better-than-anticipated productivity on certain projects and a favorable job close-out. These improvements were partially offset by inclement weather experienced on a project, unfavorable pending change order adjustments on certain projects and labor inefficiencies on certain projects. Changes in estimates of gross profit on certain projects resulted in a gross margin increase of 0.1 percent for each of the first quarters of 2021 and 2020.

    Selling, general and administrative expenses increased to $49.6 million in the first quarter of 2021, compared to $45.0 million for the first quarter of 2020. The period-over-period increase was primarily due to an increase in employee incentive compensation costs and an increase in contingent compensation expense related to a prior acquisition.

    Income tax expense was $7.1 million for the first quarter of 2021, with an effective tax rate of 26.2 percent, compared to income tax expense of $4.1 million for the first quarter of 2020, with an effective tax rate of 29.1 percent. The period-over-period decrease in tax rate was primarily due to a favorable impact from stock compensation excess tax benefits.

    For the first quarter of 2021, net income was $19.9 million, or $1.17 per diluted share, compared to $9.9 million, or $0.59 per diluted share, for the same period of 2020. First-quarter 2021 EBITDA, a non-GAAP financial measure, was $39.3 million, compared to $27.4 million in the first quarter of 2020.

    Backlog
    As of March 31, 2021, MYR's backlog was $1.64 billion, compared to $1.65 billion as of December 31, 2020. As of March 31, 2021, T&D backlog was $694.5 million, and C&I backlog was $948.8 million. Total backlog at March 31, 2021 increased $100.0 million, or 6.7 percent, from the $1.54 billion reported at March 31, 2020.

    Balance Sheet
    As of March 31, 2021, MYR had $362.7 million of borrowing availability under its $375 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 first-quarter 2021 results on Thursday, April 29, 2021 at 8:00 a.m. Mountain time. To participate in the conference call via telephone, please dial (877) 561-2750 (domestic) or (763) 416-8565 (international) and enter conference ID 3066739, at least five minutes prior to the start of the event. A replay of the conference call will be available through Thursday, May 6, 2021, at 11:00 a.m. Mountain time, by dialing (855) 859-2056 or (404) 537-3406 and entering conference ID 3066739. 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 6, 2021 at 11:00 a.m. Mountain 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 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, 2020, 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:
    David Gutierrez, Dresner Corporate Services, 312-780-7204, dgutierrez@dresnerco.com

    Financial tables follow…

    MYR GROUP INC.
    Consolidated Balance Sheets
    As of March 31, 2021 and December 31, 2020

    (in thousands, except share and per share data)March 31,
    2021    		 December 31,
    2020
     (unaudited)  
    ASSETS   
    Current assets:   
    Cash and cash equivalents$73,069  $22,668 
    Accounts receivable, net of allowances of $1,665 and $1,696, respectively373,524  385,938 
    Contract assets, net of allowances of $350 and $359, respectively192,883  185,803 
    Current portion of receivable for insurance claims in excess of deductibles11,342  11,859 
    Refundable income taxes—  1,534 
    Other current assets14,548  28,882 
    Total current assets665,366  636,684 
    Property and equipment, net of accumulated depreciation of $302,134 and $294,366, respectively181,096  185,114 
    Operating lease right-of-use assets21,724  22,291 
    Goodwill66,067  66,065 
    Intangible assets, net of accumulated amortization of $15,045 and $14,467, respectively50,793  51,365 
    Receivable for insurance claims in excess of deductibles26,758  27,043 
    Investment in joint ventures3,644  3,040 
    Other assets3,798  4,257 
    Total assets$1,019,246  $995,859 
        
    LIABILITIES AND STOCKHOLDERS' EQUITY   
    Current liabilities:   
    Current portion of long-term debt$4,381  $4,381 
    Current portion of operating lease obligations6,986  6,612 
    Current portion of finance lease obligations53  318 
    Accounts payable192,241  162,580 
    Contract liabilities140,314  158,396 
    Current portion of accrued self-insurance24,447  24,395 
    Other current liabilities79,402  86,718 
    Total current liabilities447,824  443,400 
    Deferred income tax liabilities18,295  18,339 
    Long-term debt25,039  25,039 
    Accrued self-insurance45,095  45,428 
    Operating lease obligations, net of current maturities14,787  15,730 
    Other liabilities19,742  18,631 
    Total liabilities570,782  566,567 
    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, 2021 and December 31, 2020—  — 
    Common stock—$0.01 par value per share; 100,000,000 authorized shares; 16,817,256 and 16,734,239 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively168  167 
    Additional paid-in capital157,995  158,618 
    Accumulated other comprehensive income276  23 
    Retained earnings290,021  270,480 
    Total stockholders' equity attributable to MYR Group Inc.448,460  429,288 
    Noncontrolling interest4  4 
    Total stockholders’ equity448,464  429,292 
    Total liabilities and stockholders’ equity$1,019,246  $995,859 
            

    MYR GROUP INC.
    Unaudited Consolidated Statements of Operations
    Three Months Ended March 31, 2021 and 2020

     Three months ended
    March 31,
    (in thousands, except per share data)2021 2020
        
    Contract revenues$592,486  $518,470 
    Contract costs515,533  456,838 
    Gross profit76,953  61,632 
    Selling, general and administrative expenses49,647  45,046 
    Amortization of intangible assets578  1,228 
    Gain on sale of property and equipment(683) (1,050)
    Income from operations27,411  16,408 
    Other income (expense):   
    Interest income13  2 
    Interest expense(475) (1,513)
    Other income (expense), net41  (895)
    Income before provision for income taxes26,990  14,002 
    Income tax expense7,062  4,070 
    Net income$19,928  $9,932 
    Income per common share:   
    —Basic$1.19  $0.60 
    —Diluted$1.17  $0.59 
    Weighted average number of common shares and potential common shares outstanding:   
    —Basic16,760  16,627 
    —Diluted17,045  16,742 
          

    MYR GROUP INC.
    Unaudited Consolidated Statements of Cash Flows
    Three Months Ended March 31, 2021 and 2020

     Three months ended
    March 31,
    (in thousands)2021 2020
        
    Cash flows from operating activities:   
    Net income$19,928  $9,932 
    Adjustments to reconcile net income to net cash flows provided by operating activities:   
    Depreciation and amortization of property and equipment11,293  10,641 
    Amortization of intangible assets578  1,228 
    Stock-based compensation expense1,487  1,080 
    Deferred income taxes(47) 236 
    Gain on sale of property and equipment(683) (1,050)
    Other non-cash items529  (305)
    Changes in operating assets and liabilities, net of acquisitions:   
    Accounts receivable, net12,592  38,089 
    Contract assets, net(6,991) (7,467)
    Receivable for insurance claims in excess of deductibles802  (754)
    Other assets15,314  5,195 
    Accounts payable29,198  (18,091)
    Contract liabilities(18,087) (4,697)
    Accrued self insurance(285) (77)
    Other liabilities(6,238) 1,283 
    Net cash flows provided by operating activities59,390  35,243 
    Cash flows from investing activities:   
    Proceeds from sale of property and equipment651  870 
    Purchases of property and equipment(7,031) (9,138)
    Net cash flows used in investing activities(6,380) (8,268)
    Cash flows from financing activities:   
    Net repayments under revolving lines of credit—  (2,263)
    Payment of principal obligations under equipment notes—  (2,177)
    Payment of principal obligations under finance leases(273) (312)
    Proceeds from exercise of stock options110  82 
    Repurchase of common shares(2,618) (425)
    Other financing activities12  23 
    Net cash flows used in financing activities(2,769) (5,072)
    Effect of exchange rate changes on cash160  (303)
    Net increase in cash and cash equivalents50,401  21,600 
    Cash and cash equivalents:   
    Beginning of period22,668  12,397 
    End of period$73,069  $33,997 
            

    MYR GROUP INC.
    Unaudited Consolidated Selected Data,
    Unaudited Performance Measure and Reconciliation of Non-GAAP Measure
    For the Three and Twelve Months Ended March 31, 2021 and 2020 and
    As of March 31, 2021, December 31, 2020, March 31, 2020 and March 31, 2019

     Three months ended
    March 31,    		 Last twelve months ended
    March 31,    		 
    (dollars in thousands, except share and per share data)2021 2020 2021 2020 
                 
    Summary Statement of Operations Data:            
    Contract revenues$592,486  $518,470  $2,321,408  $2,121,535  
    Gross profit$76,953  $61,632  $291,174  $232,914  
    Income from operations$27,411  $16,408  $97,548  $63,960  
    Income before provision for income taxes$26,990  $14,002  $94,373  $55,277  
    Income tax expense$7,062  $4,070  $25,618  $15,751  
    Net income$19,928  $9,932  $68,755  $40,269  
    Tax rate26.2% 29.1% 27.1% 28.5% 
             
    Per Share Data:        
    Income per common share:        
    - Basic$1.19  $0.60  $4.12 (1) $2.42 (1)
    - Diluted$1.17  $0.59  $4.06 (1) $2.40 (1)
    Weighted average number of common shares and potential common shares outstanding:        
    - Basic16,760  16,627  16,717 (2) 16,615 (2)
    - Diluted17,045  16,742  16,928 (2) 16,727 (2)
                  


    (in thousands)March 31,
    2021    		 December 31,
    2020    		 March 31,
    2020    		 March 31,
    2019
            
    Summary Balance Sheet Data:       
    Total assets$1,019,246  $995,859  $993,246  $795,218 
    Total stockholders’ equity attributable to MYR Group Inc.$448,460  $429,288  $374,982  $330,727 
    Goodwill and intangible assets$116,860  $117,430  $119,713  $89,134 
    Total funded debt (3)$29,420  $29,420  $161,384  $109,946 
                    


    (in thousands)Last twelve months ended
    March 31,
     2021 2020
    Financial Performance Measure (4):   
    Reconciliation of Non-GAAP measure:   
    Net income$68,755  $40,269 
    Interest expense, net3,505  6,527 
    Tax impact of interest(950) (1,860)
    EBI, net of taxes (5)$71,310  $44,936 
            

    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 March 31, 2021 and 2020

     Three months ended
    March 31,    		 Last twelve months ended
    March 31,
    (in thousands, except share, per share data, ratios and percentages)2021 2020 2021 2020
            
    Financial Performance Measures (4):       
    EBITDA (6)$39,323  $27,382  $144,333  $107,640 
    EBITDA per Diluted Share (7)$2.31  $1.64  $8.52  $6.44 
    Free Cash Flow (8)$52,359  $26,105  $157,066  $51,292 
    Book Value per Period End Share (9)$26.22  $22.32     
    Tangible Book Value (10)$331,600  $255,269     
    Tangible Book Value per Period End Share (11)$19.39  $15.19     
    Funded Debt to Equity Ratio (12)0.07  0.43     
    Asset Turnover (13)    2.34  2.67 
    Return on Assets (14)    6.9% 5.1%
    Return on Equity (15)    18.3% 12.2%
    Return on Invested Capital (18)    14.2% 10.2%
            
    Reconciliation of Non-GAAP Measures:       
    Reconciliation of Net Income to EBITDA:       
    Net income attributable to MYR Group Inc.$19,928  $9,932  $68,755  $40,269 
    Net income (loss) attributable to noncontrolling interest—  —  —  (743)
    Net income19,928  9,932  68,755  39,526 
    Interest expense, net462  1,511  3,505  6,527 
    Income tax expense7,062  4,070  25,618  15,751 
    Depreciation and amortization11,871  11,869  46,455  45,836 
    EBITDA (6)$39,323  $27,382  $144,333  $107,640 
            
    Reconciliation of Net Income per Diluted Share to EBITDA per Diluted Share:       
    Net income attributable to MYR Group Inc. per share$1.17  $0.59  $4.06  $2.40 
    Net income (loss) attributable to noncontrolling interest per share—  —  —  (0.04)
    Net income per share1.17  0.59  4.06  2.36 
    Interest expense, net, per share0.03  0.09  0.21  0.39 
    Income tax expense per share0.41  0.24  1.51  0.94 
    Depreciation and amortization per share0.70  0.72  2.74  2.75 
    EBITDA per Diluted Share (7)$2.31  $1.64  $8.52  $6.44 
            
    Calculation of Free Cash Flow:       
    Net cash flow from operating activities$59,390  $35,243  $199,314  $108,347 
    Less: cash used in purchasing property and equipment(7,031) (9,138) (42,248) (57,055)
    Free Cash Flow (8)$52,359  $26,105  $157,066  $51,292 
            

    See notes at the end of this earnings release.

    MYR GROUP INC.
    Unaudited Performance Measures and Reconciliation of Non-GAAP Measures
    As of March 31, 2021, 2020 and 2019

    (in thousands)March 31, 2021 March 31, 2020
        
    Reconciliation of Book Value to Tangible Book Value:   
    Book value (total stockholders' equity attributable to MYR Group Inc.)$448,460  $374,982 
    Goodwill and intangible assets(116,860) (119,713)
    Tangible Book Value (10)$331,600  $255,269 
        
    Reconciliation of Book Value per Period End Share to Tangible Book Value per Period End Share:   
    Book value per period end share$26.22  $22.32 
    Goodwill and intangible assets per period end share(6.83) (7.13)
    Tangible Book Value per Period End Share (11)$19.39  $15.19 
        
    Calculation of Period End Shares:   
    Shares outstanding16,817  16,685 
    Plus: common equivalents285  115 
    Period End Shares (16)17,102  16,800 
          


    (in thousands)March 31, 2021 March 31, 2020 March 31, 2019
          
    Reconciliation of Invested Capital to Stockholders Equity:     
    Book value (total stockholders' equity attributable to MYR Group Inc.)$448,460  $374,982  $330,727 
    Plus: total funded debt29,420  161,384  109,946 
    Less: cash and cash equivalents(73,069) (33,997) (1,338)
    Invested Capital (17)$404,811  $502,369  $439,335 
                

    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) EBI, net of taxes is defined as net income 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 EBI, net of taxes, to measure our results exclusive of the impact of financing costs.
    (6) 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. 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.
    (7) 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 per diluted share.
    (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, 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 stockholders’ 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 stockholders’ equity. Tangible book value is not recognized under GAAP and does not purport to be an alternative to book value or stockholders’ 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 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 stockholders’ 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 for the period by total assets at the beginning of the period.
    (15) Return on equity is calculated by dividing net income for the period by total stockholders’ equity at the beginning of the period.
    (16) 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.
    (17) Invested capital is calculated by adding net funded debt (total funded debt less cash and marketable securities) to total stockholders’ equity.
    (18) Return on invested capital is calculated by dividing EBI, 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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