Myr Group, Inc. · NASDAQ:MYRG
Myr — Investor Presentation (April 2020)
28 slides from Myr's investor presentation, Apr 29, 2020
Slide 1: Q1 2020 Investor Presentation, April 2020 Update
Q1 2020 APRIL 2020 Update | NASDAQ: MYRG INVESTOR PRESENTATION
Slide 2: Conservative, profitable, steady growth in electrical construction
2 MYR Group’s ability to execute its strategy of conservative, profitable, steady growth in a focused, scalable market -- electrical construction -- is a strength that differentiates us from the rest.
Slide 3: Safe Harbor Statement
SAFE HARBOR STATEMENT 3 Forward - Looking Statements Various statements in this communication, 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
Slide 4: Table of Contents
TABLE OF CONTENTS Company Overview Strategy Market Overview Financial Performance Investment Outlook Appendix 4 Investor Presentation │ APRIL │ ©2020 MYR GROUP INC.
Slide 5: More than a century serving electrical construction needs
5 For more than a century , MYR Group’s subsidiaries have served the electrical construction needs of clients. Our reputation for excellence in both our markets makes us a leader in the industry. Investor Presentation │ APRIL │ ©2020 MYR GROUP INC.
Slide 6: A Market Leader
6 Investor Presentation │ APRIL │ ©2020 MYR GROUP INC. EXPANDING PRESENCE in C&I NATIONWIDE LEADER in T&D GROWING FOOTPRINT HEALTHY ORGANIC & ACQUISITIVE GROWTH STRONG PRESENCE IN KEY GROWTH MARKETS LONG STANDING CLIENT RELATIONSHIPS GROWING REVENUES RECORD BACKLOG EXTENSIVE, CENTRALIZED FLEET STABL
Slide 7: Strategic Imperatives
7 STRATEGIC IMPERATIVES Ensures we are focused on the right work and programs Deliver positive financial results on a consistent basis while positioning the company for growth Strive to always be the first choice for our clients and remain one of the most reliable and efficient, high - value provide
Slide 8: COVID-19 business operations update
8 Investor Presentation │ APRIL │ ©2020 MYR GROUP INC. • Considered an essential business as a provider of critical infrastructure services. • Remain committed to serving our customers and are responding and adhering to any new or heightened job - site requirements and guidelines to protect our fron
Slide 9: COVID-19 pandemic impact on the company
9 Investor Presentation │ APRIL │ ©2020 MYR GROUP INC. The current COVID - 19 pandemic has had a significant impact on the global economy, including the US and Canadian economies, during the first quarter of 2020. As the situation continues to evolve, the Company is closely monitoring the impact of
Slide 10: Transmission & Distribution business segment
COMPREHENSIVE SERVICE OFFERINGS 10 TRANSMISSION & DISTRIBUTION (T&D) BUSINESS SEGMENT Transmission up to 765kV Overhead and Underground Distribution Substations Foundations & Caissons and Directional Boring Storm Restoration Renewables Segment Updates: ● 3/31/20 LTM T&D revenue of $1,121 million dow
Slide 11: Commercial & Industrial business segment
COMPREHENSIVE SERVICE OFFERINGS 11 COMMERCIAL & INDUSTRIAL (C&I) BUSINESS SEGMENT Industrial Commercial Telecommunications Renewables Transportation/ Traffic Signalization Voice, Data, Video Systems Segment Updates: ● 03/31/20 LTM C&I record revenue of $1,000 Million ● Growth primarily due to increa
Slide 12: Strong Competitive Advantage
STRONG COMPETITIVE ADVANTAGE WE ARE… Expanding our depth and breadth of expertise while refining project delivery capabilities Helping our people reach their fullest potential through investments in training and development Building a future driven mindset and deploying new systems and technologies
Slide 13: Positioned for Growth
POSITIONED FOR GROWTH 13 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 Strength in C&I sector (Airport, Healthcare, Data Center, Hwy/Transp.) RENEWABLES Clean energy initiat
Slide 14: Value Creation Opportunities
VALUE CREATION OPPORTUNITIES 62 ORGANIC GROWTH Expand in new and existing markets that align with core capabilities • Strategic expansion of geographic footprint into new markets • Invest in additional fleet and labor resources to expand capacity • Leverage extensive bid knowledge and long - term cu
Slide 15: July 2019 Acquisition
JULY 2019 ACQUISITION 15 • Expands our breadth of C&I service offerings in California and strengthens our market position in delivering cost - effective solutions to both new and existing customers • Expanded presence in California with established offices in: • Santa Fe Springs • San Marcos • San J
Slide 16: Favorable T&D Market Conditions
16 FAVORABLE T&D MARKET CONDITIONS Source: The C Three Group, North American Electric Distribution Market Forecast, September 2019 Historical and Projected Transmission Investment (Nominal Dollars) Source: EEI Transmission Projects: At A Glance, October 2018 (Note: r=revised) Transmission Spend Driv
Slide 17: Market Opportunities
17 MARKET OPPORTUNITIES The generation mix across the U.S. is changing as traditional baseload generation resources retire and renewable generation provides an increasingly large percentage of demand. Investor Presentation │APRIL │ ©2020 MYR GROUP INC. 45 GW of utility solar are operational today re
Slide 18: Active C&I Market and backlog
18 Investor Presentation │ APRIL │ ©2020 MYR GROUP INC. C&I’s strong $1.08B backlog as of 03/31/2020 is driven by: Hospitals Data Centers Airport Projects Transportation Work Aerospace Water / Wastewater Upgrades Associated General Contractors of America Construction spending in February increased 6
Slide 19: Delivering Strong Returns
19 DELIVERING STRONG RETURNS MYRG - CAGR 5.57% EME - CAGR 8.04% PWR - CAGR 2.16% MTZ - CAGR 10.23% DY - CAGR 0.25% -100.0% 0.0% 100.0% 200.0% 300.0% 400.0% 500.0% 600.0% 700.0% Dividend Adjusted Stock Return (12/26/2007 - 04/17/2020) MYRG Div. Adj. Return EME Div. Adj. Return PWR Div. Adj. Return MT
Slide 20: Balance Sheet Strength to Support Additional Growth
20 BALANCE SHEET STRENGTH TO SUPPORT ADDITIONAL GROWTH 18.3% 15.8% 9.9% 8.9% 8.7% 0.0% 5.0% 10.0% 15.0% 20.0% EME MTZ MYRG DY PWR 3 - Year Average ROIC Little off - balance - sheet leverage Limited goodwill Modest debt leverage Strong liquidity position – Renewed credit facility in Q3 2019, increasi
Slide 21: Strong Long-Term Financial Performance
21 STRONG LONG - TERM FINANCIAL PERFORMANCE $0.60 $0.78 $1.00 $0.90 $0.94 $1.06 $1.14 $1.40 $1.53 $2.07 $2.12 $- $0.50 $1.00 $1.50 $2.00 $2.50 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1 LTM Billions Revenue by Work Type Trans. Dist. C&I 12.9% CAGR $0.66 $0.63 $0.70 $0.68 $0.96 $1.01 $
Slide 22: Investment Outlook
Strong Financial Position Strong equity base provides capacity to add leverage for additional potential acquisitions, organic growth and share repurchases Centralized Fleet & Corporate Operations Centralization allows for greater efficiency and leverage of company resources Positive Industry Outlook
Slide 23: Appendix
23 APPENDIX
Slide 24: Corporate Governance Overview
24 CORPORATE GOVERNANCE OVERVIEW EXPERIENCED BOARD WITH INDEPENDENT OVERSIGHT • 7 of 9 directors are independent • 5 of 9 directors have significant energy / utility experience • Independent Chairman of the Board • Audit, Compensation and Nominating / Governance committees comprised solely of indepe
Slide 25: Experienced Management Team
25 Chief Executive Officer 37 years with MYRG 37 years in industry Rick Swartz Chief Financial Officer 20 years with MYRG 31 years in industry Betty Johnson Chief Legal Officer 1 year with MYRG 22 years in industry William Fry Chief Operating Officer – Transmission & Distribution 29 years with MYRG
Slide 26: MYR Group Customer Sample
MYR GROUP CUSTOMER SAMPLE 26 Investor Presentation │ APRIL │ ©2020 MYR GROUP INC.
Slide 27: EBITDA Reconciliation
27 EBITDA RECONCILIATION Note: LTM diluted weighted average shares outstanding were determined by adding the average shares reported for the last four quart ers and dividing by four. EBITDA is not recognized under GAAP and does not purport to be an alternative to net income as a measure of operating
Slide 28: Financial Ratio Definitions
FINANCIAL RATIO DEFINITIONS 28 S&P Capital IQ Disclaimer of Liability Notice This may contain information obtained from third parties, including ratings from credit ratings agencies such as Standard & Poor’s. Reproduction and distribution of third - party content in any form is prohibited except wit