Myr Group, Inc. · NASDAQ:MYRG
Myr — Investor Presentation (November 2014)
26 slides from Myr's investor presentation, Nov 12, 2014
Slide 1: Investor Presentation Third Quarter 2014
Investor Presentation 2014 Third Quarter Nasdaq : MYRG │ www.myrgroup.com Investor Presentation │ November │ ©2014MYRGROUPINC.
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Various statements in this presentation, and any oral statements regarding the subject matter of this presentation, are “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Sect
Slide 3: Table of Contents
TABLE OF CONTENTS Company Overview Market Overview Strategy Financial Performance Investment Outlook Appendix Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 3 Investor Presentation │ November │ ©2014MYRGROUPINC.
Slide 4: About MYR Group
ABOUT MYR GROUP • MYR Group is a holding company of six specialty electrical contractors – Subsidiaries date back to 1891 – Numerous offices across North America • Transmission and Distribution ( T&D ) customers include: – Investor Owned Utilities – Cooperatives – Municipalities – Independent Transm
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS • Strong market position – Transmission and Distribution ( T&D ) - national presence – Commercial and Industrial ( C&I ) - regional presence • Highly skilled national workforce • Regulatory environment supports growth • Favorable industry dynamics providing opportunities for st
Slide 6: Nationwide T&D Services
NATIONWIDE T&D SERVICES • Transmission • Overhead Distribution • Underground Distribution • Foundations & Caissons • Directional Boring • Substation • EPC Services • PCS/Cellular Towers • Emergency Storm Response • Fiber Optics T&D CAPABILITIES MYR Group provides transmission, distribution and subst
Slide 7: Regional C&I Services
REGIONAL C&I SERVICES • Educational/Medical Centers • Industrial Facilities • Water & Wastewater Treatment Plants • Renovations and Major Additions • Data Centers • Technical Services • Voice, Data & Video Systems • Transportation / Traffic Signalization • Airports / Airfield Lighting • Bridge, Road
Slide 8: Centralized Fleet Operations
CENTRALIZED FLEET OPERATIONS Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix 200 Ton All - Terrain Crane 5 - Drum Side - Winder P uller Excavator w/ Hyd . Thumb 80’ Track Material Handler Centralized Fleet Management Regional Support Facilities M
Slide 9: Strategic Investment in CAPEX Supported Organic Growth
STRATEGIC INVESTMENT IN CAPEX SUPPORTED ORGANIC GROWTH Successful execution of strategy: Invested in specialty equipment in 2011 - 2013 in anticipation of T&D build - out Grow top - line revenue organically through expansion of T&D capacity Source : S&P Capital IQ │ Page 9 Company Overview │ Market
Slide 10: Regulatory Environment Supports Growth
REGULATORY ENVIRONMENT SUPPORTS GROWTH August 2005 - Energy Policy Act / Revised in 2009 by the American Recovery and Reinvestment Act • Established minimum reliability standards • Provided federal permitting and siting authority for transmission lines • Encouraged investment in infrastructure July
Slide 11: Transmission Spending
TRANSMISSION SPENDING Transmission spending by electrical utilities driven by: System Reliability Aging Electric Grid Connecting Renewables Plant Retirements “Edison Electric Institute’s 2013 Transmission Projects: At a Glance report highlights more than 150 planned transmission projects totaling ab
Slide 12: Regional C&I Growth Trends
REGIONAL C&I GROWTH TRENDS Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix Dodge Momentum Index – by McGraw - Hill Construction - 12 month leading indicator of construction spending for nonresidential building - 91% correlation between constructi
Slide 13: Future Growth Opportunities
FUTURE GROWTH OPPORTUNITIES • Invest in additional fleet and labor resources to expand capacity • Leverage extensive bid knowledge and long - term customer relationships to secure future contracts with new and existing customers Organic Growth • Assess segments of the T&D and C&I markets to bring in
Slide 14: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE $0 $50 $100 $150 $200 $250 $300 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 2008 2009 2010 2011 2012 2013 2014 Millions Quarterly Revenue by Work Type Trans. Dist. C&I 9.6% CAGR 46% 56% 51% 59% 68% 68% 27% 18% 24% 21% 15% 12% 27% 26% 25% 20% 17% 20% 0% 20% 40%
Slide 15: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 2008 2009 2010 2011 2012 2013 2014 Quarterly Diluted EPS Diluted EPS 8.5% CAGR $0 $100 $200 $300 $400 $500 $600 $700 $800 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 2008
Slide 16: Financial Performance Comparison
FINANCIAL PERFORMANCE COMPARISON Source : S&P Capital IQ - NM ( Not Meaningful) reflects negative returns/growth and is ignored for comparison purposes | WG’s metrics are as of 06/30/2014 Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 16
Slide 17: Fundamental Financial Performance
FUNDAMENTAL FINANCIAL PERFORMANCE Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 17 Source : S&P Capital IQ - NM ( Not Meaningful) reflects negative returns/growth and is ignored for comparison purposes | WG’s metrics are as of 06/30/2014
Slide 18: Balance Sheet Strength
BALANCE SHEET STRENGTH Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix ($50) $0 $50 $100 $150 $200 $250 $300 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 2008 2009 2010 2011 2012 2013 2014 Millions Total Liquidity Credit Facility Cash LO
Slide 19: Investment Outlook
INVESTMENT OUTLOOK • Solid execution of corporate strategy has solidified MYR Group’s position as a market leader in large transmission line construction Proven Strategy Execution • Executive Management average 30+ years of industry experience Experienced Management • Regulatory environment supports
Slide 20: Appendix
Appendix Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 20 Investor Presentation │ November │ ©2014MYRGROUPINC.
Slide 21: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Experienced management team that averages more than 22 years with MYR Group and approximately 33 years in our industry Operations management averages 37 years of industry experience Strong corporate culture focused on customer service and safety Invested in management tea
Slide 22: MYR Group Services
MYR GROUP SERVICES Transmission Collector Systems Distribution Traffic Signalization Telecommunications Substation Solar Installations Industrial Storm Restoration EPC Commercial Smart Grid Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 2
Slide 23: MYR Group Customer Sample
MYR GROUP CUSTOMER SAMPLE Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 23 Investor Presentation │ November │ ©2014MYRGROUPINC.
Slide 24: Emergency Response Revenue
EMERGENCY RESPONSE REVENUE $31 $24 $10 $43 $16 $14 $31 $41 $15 $0 $10 $20 $30 $40 $50 2005 2006 2007 2008 2009 2010 2011 2012 2013 Millions Storm Revenue Storm Revenue Average $25.0MM 2005 – Katrina 2008 – Gustav 2008 – Ike 2011 – Irene 2011 – NE Snowstorm 2012 - Sandy Company Overview │ Market Over
Slide 25: EBITDA Reconciliation
EBITDA RECONCILIATION $2.46 $1.97 $2.05 $2.34 $3.80 $3.96 $- $1.0 $2.0 $3.0 $4.0 $5.0 2008 2009 2010 2011 2012 2013 EBITDA / Diluted Share Strong EBITDA Growth Successful execution of organic growth strategy Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │
Slide 26: Financial Ratio Definitions
FINANCIAL RATIO DEFINITIONS Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 26 S&P Capital IQ Disclaimer of Liability Notice . This may contain information obtained from third parties, including ratings from credit ratings agencies such as