Myr Group, Inc. · NASDAQ:MYRG
Myr — Investor Presentation (October 2023)
22 slides from Myr's investor presentation, Oct 25, 2023
Slide 1: Investor Presentation Q3 October 2023
1 INVESTOR PRESENTATION Q 3 | O c t o b e r 2 0 2 3 | N A S D A Q : M Y R G
Slide 2: Safe Harbor Statement
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 statements. The forward-looking statem
Slide 3: Delivering Electrical Construction Services for More Than a Century
3 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 65 OFFICE LOCATIONS IN U.S. AND CANADA MYR Group Inc. subsidiaries deliver some of the largest and most notable electrical infrastructure and commercial and industrial projects thr
Slide 4: Record revenue in 2022, up 20% from 2021
4 Achieved record revenue in 2022, up 20% from 2021 $3.50B LTM Q3 2023 $1.53B 2018 $2.07B 2019 $2.25B 2020 $3.01B 2022 RANKED AMONG TOP 5 U.S. SPECIALTY ELECTRICAL CONTRACTORS 28 YEARS IN A ROW $2.50B 2021 CAGR 19.0%
Slide 5: Outlook
5 OUTLOOK • T&D work activity primarily consists of small to medium-sized projects, with some larger transmission, High Voltage Direct Current (HVDC) and utility scale solar projects; and we continue to execute routine maintenance work under long-term Master Services Agreements (MSAs). Strong, long-
Slide 6: T&D Business Segment Update
6 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 September 30, 2023 revenue of $2.01 billion • Approx. 50% of T&D business is Master Service Agreement work • Acquired the Powerline Plus Companies in January of 2022 $893 $1,134 $1,154 $1,302 $1,746 $2,011 $0 $200 $400 $600 $800 $1,0
Slide 7: Transmission infrastructure investment drivers
7 • Aging infrastructure, system hardening, grid reliability, and clean energy projects remain key drivers for transmission infrastructure investment – along with federal, state and local clean energy goals • The $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) will invest significantly i
Slide 8: C&I Business Segment Update
8 • C&I record LTM September 30, 2023 revenue of $1.49 billion • Growth primarily due to increases in volume across all project sizes and incremental revenues from the acquisitions of CSI and the Huen Companies in July of 2019 and 2018, respectively $638 $937 $1,093 $1,197 $1,263 $1,492 $0 $200 $400
Slide 9: C&I market outlook and bidding opportunities
9 • Despite inflation and supply disruptions, our C&I segment sees steady bidding opportunities in our core markets including healthcare, clean energy, transportation and data centers. • Infrastructure Investment and Jobs Act funding is expected to continue driving growth in infrastructure construct
Slide 10: Utility-Scale Solar and Clean Energy Drivers
10 UTILITY-SCALE SOLAR Federal Tax Credits Renewable Portfolio Standards Carbon Policy State Tax Incentives Clean Power Portfolios CLEAN ENERGY DRIVERS SOURCE: SEIA/Wood Mackenzie Power & Renewables U.S. Solar Market Insight Report, Sept. 7, 2023 • The generation mix across the U.S. is changing as t
Slide 11: Clean Energy Transformation Partner
11 CLEAN ENERGY TRANSFORMATION PARTNER MYR Group plays a key role in building the infrastructure needed to deliver clean energy to the power grid. Tremendous investment in electrical infrastructure is needed to meet the needs of the evolving energy landscape. MYR Group remains well positioned to del
Slide 12: Strategic Imperatives for Success
12 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 projects) C&I Well-diversified C&I sector (Transportation, Healthcare, Data Center, EV Infrastructure) Clean Energy Clean energy initiatives d
Slide 13: Cornerstones of Our ESG Practices
13 View 2022 Report CORNERSTONES OF OUR ESG PRACTICES B U I L D I N G A S U S T A I N A B L E F U T U R E • Independent Chairman of the Board • Audit; Compensation; Nominating, Environmental, Social, & Corporate Governance committees comprised solely of independent directors • 3 of 8 Board members a
Slide 14: Delivering Strong Returns
14 D E L I V E R I N G S T R O N G R E T U R N S MYRG - CAGR 38.89% EME - CAGR 31.16% PWR - CAGR 47.65% MTZ - CAGR 12.67% DY - CAGR 10.68% -200.0% -100.0% 0.0% 100.0% 200.0% 300.0% 400.0% 500.0% 600.0% 700.0% Dividend Adjusted Stock Return (01/02/2019 - 09/29/2023) MYRG Div. Adj. Return EME Div. Adj
Slide 15: Financial Snapshot: Q3 Highlights
15 * See reconciliation of non-GAAP measures in on slide 22 FINANCIAL SNAPSHOT Q3 HIGHLIGHTS $21.5M Net Income or $1.28 Per Diluted Share $2.62B Backlog $939.5M Revenue Record High BUSINESS SEGMENT REVENUE (1) $2.01B T&D $1.49B C&I REVENUE (1) $3.50B EBITDA * (1) $187.3M EARNINGS PER DILUTED SHARE (
Slide 16: Well-Positioned to Support Additional Growth
16 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 $77.1 $92.3 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% $0 $20 $40 $60 $80 $100 2018 2019 2020 2021 2022 Q3 LTM 2023 M ill io n s CAPEX Investment CAPEX Spend CAPEX % of Rev 24.3% 17.4% 11.0% 10.1% 8.6% 0.0
Slide 17: Demonstrates Strong, Long-Term Execution
17 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 $3,009 $3,504 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 2018 2019 2020 2021 2022 Q3 LTM 2023 M ill io n s Revenue by Work Type Trans. Dist. C&I 19.0% CAGR $1,147 $1,499 $1,649 $1,7
Slide 18: Experienced Leadership: Executives & Board of Directors
18 EXECUTIVE LEADERSHIP Rick Swartz, CEO MYRG: 41 years Industry: 41 years 21 YEARS EXECUTIVES AVERAGE WITH MYR GROUP Effective February 24, 2023 EXPERIENCED LEADERSHIP 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 exec
Slide 19: Creating Shareholder Value
19 CREATING SHAREHOLDER VALUE ORGANIC GROWTH Expand in new and existing markets that align with core capabilities STRATEGIC ACQUISITIONS Evaluate opportunities to expand and hone business expertise PRUDENT CAPITAL RETURNS Opportunistically repurchase shares Authorized $75M share repurchase program o
Slide 20: Representative Customers
20 REPRESENTATIVE CUSTOMERS MYR Group subsidiaries maintain strong, long-standing relationships with a diverse customer base throughout both our T&D and C&I business segments.
Slide 21: Demonstrates Strong, Long-Term Execution (Reconciliation)
21 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. EBITDA is not recognized under GAAP and does not purport to be an
Slide 22: Financial Ratios
22 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' Equity [B]) + Net Funded Debt] @ beginning and end