Myr Group, Inc. · NASDAQ:MYRG
Myr — Q2 2022 Earnings Presentation
22 slides from Myr's earnings presentation, Jul 27, 2022
Slide 1: Q2 Investor Presentation, July 2022
Q 2 IN V E ST O R P R E SE N TA T IO N 1 INVESTOR PRESENTATION Q 2 | J U LY 2 0 2 2 | N A S D A Q : M Y R G
Slide 2: Safe Harbor Statement
Q 2 IN V E ST O R P R E SE N TA T IO N 2 SAFE HARBOR STATEMENT F O R W A R D - L O O K I N G S T A T E M E N T S 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
Slide 3: A Market Leader Delivering Electrical Construction Services for More Than a Century
Q 2 IN V E ST O R P R E SE N TA T IO N 3 A MARKET LEADER D E L I V E R I N G E L E C T R I C A L C O N S T R U C T I O N S E R V I C E S F O R M O R E T H A N A C E N T U R Y 64 OFFICE LOCATIONS IN U.S. AND CANADA MYR Group Inc. subsidiaries deliver some of the largest and most notable electrical in
Slide 4: Achieved record revenue in 2021, up 11% from 2020
Q 2 IN V E ST O R P R E SE N TA T IO N 4 Achieved record revenue in 2021, up 11% from 2020 $2.60B LTM 06/30/2022 $1.40B 2017 $1.53B 2018 $2.07B 2019 $2.50B 2021 RANKED AMONG TOP 5 U.S. SPECIALTY ELECTRICAL CONTRACTORS 27 YEARS IN A ROW $2.25B 2020 CAGR 14.7%
Slide 5: Outlook
Q 2 IN V E ST O R P R E SE N TA T IO N 5 OUTLOOK • T&D work activity primarily consists of small to medium-sized projects, with some larger transmission, HVDC, and utility scale solar projects; and we continue to execute routine maintenance work under long-term MSAs. Drivers for T&D spending remain
Slide 6: Enhances Our Strong Backlog
Q 2 IN V E ST O R P R E SE N TA T IO N 6 E N H A N C E S O U R S T R O N G B A C K L O G We take a people first focus to encourage collaboration, safe practices, and long- term employment. We invest in our employees by providing trainings, leadership opportunities, cutting-edge tools and resources,
Slide 7: Transmission & Distribution Business Segment Update
Q 2 IN V E ST O R P R E SE N TA T IO N 7 TRANSMISSION & DISTRIBUTION T & D B U S I N E S S S E G M E N T U P D A T E • T&D record LTM June 30, 2022 revenue of $1.44 Billion • ~ 50% of T&D business is Master Service Agreement work • Acquired the Powerline Plus Companies in January of 2022 Transmissio
Slide 8: T&D Market Drivers
Q 2 IN V E ST O R P R E SE N TA T IO N 8 T&D MARKET DRIVERS S T R O N G L O N G - T E R M O U T L O O K • Aging infrastructure, system hardening, grid reliability, and clean energy projects continue to serve as key drivers for continued investments in transmission infrastructure, which is is the bac
Slide 9: Commercial & Industrial Business Segment Update
Q 2 IN V E ST O R P R E SE N TA T IO N 9 COMMERCIAL & INDUSTRIAL C & I B U S I N E S S S E G M E N T U P D A T E • C&I LTM June 30, 2022 revenue of $1.16 Billion • Growth primarily due to increases in volume across all project sizes and incremental revenues from the acquisitions of CSI and the Huen
Slide 10: C&I Outlook
Q 2 IN V E ST O R P R E SE N TA T IO N 10 C&I OUTLOOK A C T I V E M A R K E T • Despite adverse effects of inflation and supply disruptions, our C&I segment sees steady bidding opportunities in our core markets including healthcare, clean energy, transportation and data centers. • The Infrastructure
Slide 11: Market Opportunities
Q 2 IN V E ST O R P R E SE N TA T IO N 11 MARKET OPPORTUNITIES G R O W I N G R E N E W A B L E G E N E R A T I O N M I X In 2021, the US solar market installed record solar capacity and utility-scale solar had its biggest year yet at nearly 17 GWdc installed, more than double the utility solar insta
Slide 12: Clean Energy Transformation Partners
Q 2 IN V E ST O R P R E SE N TA T IO N 12 CLEAN ENERGY TRANSFORMATION PARTNERS Tremendous investment in electrical infrastructure is needed to meet the needs of the evolving energy landscape. As the clean energy sector expands, efforts to accelerate this transformation provide solid growth drivers f
Slide 13: Positioned for Growth
Q 2 IN V E ST O R P R E SE N TA T IO N 13 POSITIONED FOR GROWTH S T R O N G M A R K E T C O U P L E D W I T H O U R C O M P E T I T I V E E D G E U.S./Canada Long-term growth both organically and via acquisition T&D Transmission market outlook strong next 5+ years (higher ratio of small-medium/large
Slide 14: Cornerstones of Our Sustainability Practices
Q 2 IN V E ST O R P R E SE N TA T IO N 14 CORNERSTONES OF OUR SUSTAINABILITY PRACTICES Reducing our environmental impact, protecting the safety and wellbeing of our people, and supporting the communities where we live and operate remain a top priority as we continue to provide critical electrical in
Slide 15: Delivering Strong Returns
Q 2 IN V E ST O R P R E SE N TA T IO N 15 DELIVERING STRONG RETURNS D I V I D E N D A D J U S T E D S T O C K R E T U R N MYRG - CAGR 22.24% EME - CAGR 5.67% PWR - CAGR 29.90% MTZ - CAGR 8.32% DY - CAGR (3.97%) -150.0% -100.0% -50.0% 0.0% 50.0% 100.0% 150.0% 200.0% 250.0% 300.0% Dividend Adjusted St
Slide 16: Balance Sheet Strength
Q 2 IN V E ST O R P R E SE N TA T IO N 16 BALANCE SHEET STRENGTH W E L L - P O S I T I O N E D T O S U P P O R T A D D I T I O N A L G R O W T H $50.7 $57.8 $44.4 $52.4 $61.8 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% $0 $20 $40 $60 $80 2018 2019 2020 2021 Q2 LTM 2022 M ill io ns CAPEX Investment CAPEX Spend CA
Slide 17: Financial Performance Demonstrates Strong, Long-Term Execution
Q 2 IN V E ST O R P R E SE N TA T IO N 17 FINANCIAL PERFORMANCE D E M O N S T R A T E S S T R O N G , L O N G - T E R M E X E C U T I O N $1,531 $2,071 $2,247 $2,498 $2,601 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 2018 2019 2020 2021 Q2 LTM 2022 M ill io ns Revenue by Work Type Trans. Dist. C&I 16
Slide 18: Experienced Leaders
Q 2 IN V E ST O R P R E SE N TA T IO N 18 EXPERIENCED LEADERS E X E C U T I V E S & B O A R D O F D I R E C T O R S MYR Group Inc. has a strong team of experienced leaders that make up our executive team and Board of Directors. We believe diversity of our leadership is a critical component of creati
Slide 19: Prudent Capital Returns
Q 2 IN V E ST O R P R E SE N TA T IO N 19 PRUDENT CAPITAL RETURNS Authorized $75 million share repurchase program • Effective May 5, 2022; will expire November 7, 2022, or when the authorized funds are exhausted, whichever is earlier • As of June 30, 2022, the Company had $51.5 million of remaining
Slide 20: Representative Customer Sample
Q 2 IN V E ST O R P R E SE N TA T IO N 20 MYR Group subsidiaries maintain strong, long-standing relationships with a diverse customer base throughout both our T&D and C&I business segments. REPRESENTATIVE CUSTOMER SAMPLE
Slide 21: EBITDA Reconciliation
Q 2 IN V E ST O R P R E SE N TA T IO N 21 EBITDA RECONCILIATION D E M O N S T R A T E S S T R O N G , L O N G - T E R M E X E C U T I O N Note: LTM diluted weighted average shares outstanding were determined by adding the average shares reported for the last four quarters and dividing by four. EBITD
Slide 22: Definitions: Financial Ratios
Q 2 IN V E ST O R P R E SE N TA T IO N 22 DEFINITIONS F I N A N C I A L R A T I O S NOTE: Images used throughout this presentation may have been taken before COVID. Net Income (LTM) [A] +[(Net Interest Expense + Amortization of Intangibles)* (1-Effective Tax Rate)] ÷ [Book Value (Total Stockholders'