Myr Group, Inc. · NASDAQ:MYRG
Myr — Q3 2022 Earnings Presentation
23 slides from Myr's earnings presentation, Oct 28, 2022
Slide 1: Q3 Investor Presentation October 2022
Q 3 I N V E S T O R P R E S E N T A T IO N 1 INVESTOR PRESENTATION Q 3 | O c t o b e r 2 0 2 2 | N A S D A Q : M Y R G
Slide 2: Safe Harbor Statement
Q 3 I N V E S T O R P R E S E N T A 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-loo
Slide 3: A Market Leader Delivering Electrical Construction Services for More Than a Century
Q 3 I N V E S T O R P R E S E N T A 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 electrica
Slide 4: Record revenue in 2021, up 11%
Q 3 I N V E S T O R P R E S E N T A T IO N 4 Achieved record revenue in 2021, up 11% from 2020 $2.79B LTM 09/30/2022 $1.40B 2017 $1.53B 2018 $2.07B 2019 $2.50B 2021 RANKED AMONG TOP 5 U.S. SPECIALTY ELECTRICAL CONTRACTORS 28 YEARS IN A ROW $2.25B 2020 CAGR 15.6%
Slide 5: Outlook
Q 3 I N V E S T O R P R E S E N T A 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 rem
Slide 6: Enhances Our Strong Backlog
Q 3 I N V E S T O R P R E S E N T A 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 resourc
Slide 7: Financial Snapshot Q3 Highlights
Q 3 I N V E S T O R P R E S E N T A T IO N 7 FINANCIAL SNAPSHOT Q3 HIGHLIGHTS We continue to build upon our success in growing the business as demonstrated by our third quarter performance. Our core markets remain active, presenting exciting opportunities to deepen and expand our market presence..….
Slide 8: Transmission & Distribution
Q 3 I N V E S T O R P R E S E N T A T IO N 8 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 September 30, 2022 revenue of $1.59 Billion • ~ 50% of T&D business is Master Service Agreement work • Acquired the Powerline Plus Companies in January of 2022 Tr
Slide 9: T&D Market Drivers
Q 3 I N V E S T O R P R E S E N T A T IO N 9 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
Slide 10: Commercial & Industrial
Q 3 I N V E S T O R P R E S E N T A T IO N 10 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 record LTM September 30, 2022 revenue of $1.21 Billion • Growth primarily due to increases in volume across all project sizes and incremental revenues from the acquisitions of
Slide 11: C&I Outlook
Q 3 I N V E S T O R P R E S E N T A T IO N 11 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 Infrastruc
Slide 12: Market Opportunities
Q 3 I N V E S T O R P R E S E N T A T IO N 12 MARKET OPPORTUNITIES G R O W I N G C L E A N E N E R G Y G E N E R A T I O N M I X UTILITY-SCALE SOLAR Federal Tax Credits Renewable Portfolio Standards Carbon Policy State Tax Incentives Clean Power Portfolios CLEAN ENERGY DRIVERS SOURCE: SEIA/Wood Mack
Slide 13: Clean Energy Transformation Partners
Q 3 I N V E S T O R P R E S E N T A T IO N 13 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 drive
Slide 14: Positioned for Growth
Q 3 I N V E S T O R P R E S E N T A T IO N 14 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/l
Slide 15: Cornerstones of Our Sustainability Practices
Q 3 I N V E S T O R P R E S E N T A T IO N 15 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 electrica
Slide 16: Delivering Strong Returns
Q 3 I N V E S T O R P R E S E N T A T IO N 16 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 19.94% EME - CAGR 7.97% PWR - CAGR 28.56% MTZ - CAGR 5.14% DY - CAGR (3.22%) -150.0% -100.0% -50.0% 0.0% 50.0% 100.0% 150.0% 200.0% 250.0% 300.0% 350.0% Dividend
Slide 17: Balance Sheet Strength
Q 3 I N V E S T O R P R E S E N T A T IO N 17 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 $68.2 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% $0 $20 $40 $60 $80 2018 2019 2020 2021 Q3 LTM 2022 M ill io n s CAPEX Investment CAPEX Spe
Slide 18: Financial Performance Demonstrates Strong, Long-Term Execution
Q 3 I N V E S T O R P R E S E N T A T IO N 18 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 $2,791 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 2018 2019 2020 2021 Q3 LTM 2022 M ill io n s Revenue by Work Type Trans. Dist. C
Slide 19: Experienced Leaders
Q 3 I N V E S T O R P R E S E N T A T IO N 19 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 cr
Slide 20: Prudent Capital Returns
Q 3 I N V E S T O R P R E S E N T A T IO N 20 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 September 30, 2022, the Company had $41.6 million of r
Slide 21: Representative Customer Sample
Q 3 I N V E S T O R P R E S E N T A T IO N 21 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 22: EBITDA Reconciliation
Q 3 I N V E S T O R P R E S E N T A T IO N 22 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. E
Slide 23: Definitions: Financial Ratios
Q 3 I N V E S T O R P R E S E N T A T IO N 23 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 Stockhold