Myr Group, Inc. · NASDAQ:MYRG
Myr — Investor Presentation (May 2015)
24 slides from Myr's investor presentation, May 29, 2015
Slide 1: Investor Presentation First Quarter 2015
INVESTOR PRESENTATION 20 15 First Quarter Nasdaq: MYRG
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 │ May │ © 2015MYRGROUPINC .
Slide 4: About MYR Group
ABOUT MYR GROUP • MYR Group is a holding company of 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 Transmissi
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 5 Strong market position • Transmission and Distribution (T&D) - national • Commercial and Industrial (C&I) - regional Highly skilled national workforce Regulatory envir
Slide 6: North American Service Offerings
NORTH - AMERICAN SERVICE OFFERINGS Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 6 Transmission & Distribution T&D Commercial & Industrial C&I • Transmission up to 765kV • Overhead Distribution • Underground Distribution • Foundations &
Slide 7: North American Coverage
NORTH - AMERICAN COVERAGE Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 7 Investor Presentation │ May │ ©2015MYRGROUPINC. Office Locations Fleet Locations MYR Group subsidiaries Great Southwestern Construction, Inc. and MYR Transmission
Slide 8: Investment in CAPEX Supported Growth Initiatives
INVESTMENT IN CAPEX SUPPORTED GROWTH INITIATIVES Successful execution of strategy Invested in specialty equipment in 2011 - 2014 to support growth initiatives Grew top - line revenue organically through expansion of T&D capacity Source : S&P Capital IQ | MTZ : 2010 - YTD Q3 2014 │ Page 8 Company Ove
Slide 9: T&D Market Conditions Remain Favorable
T&D MARKET CONDITIONS REMAIN FAVORABLE Transmission spending by electrical utilities driven by System Reliability Aging Electric Grid Connecting Renewables Plant Retirements Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix Source: NERC 2013 Long -
Slide 10: T&D Market Conditions Remain Favorable
T&D MARKET CONDITIONS REMAIN FAVORABLE Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 10 Source: Harris Williams & Co. Transmission & Distribution Infrastructure | Summer 2014 Number of Major U.S. Power Outages Investor Presentation │ May
Slide 11: C&I Market Is Growing
C&I MARKET IS GROWING… 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 construction p
Slide 12: 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 • Exercise discipline when assessing target companies St
Slide 13: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE 46% 56% 51% 59% 68% 68% 58% 27% 18% 24% 21% 15% 12% 16% 27% 26% 25% 20% 17% 20% 26% 0% 20% 40% 60% 80% 100% 2008 2009 2010 2011 2012 2013 2014 % of Total Revenue by Segment Transmission % Distribution % C&I % Company Overview │ Market Overview │ Strategy │ Financial Perf
Slide 14: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE Revenue and backlog growth has been primarily organic Backlog includes signed contracts and 90 days of alliance agreements Not a static business; MYR is constantly marketing to new customers and bidding on new projects Company Overview │ Market Overview │ Strategy │ Fina
Slide 15: Financial Performance Comparison
FINANCIAL PERFORMANCE COMPARISON Source : S&P Capital IQ - NM ( Not Meaningful) reflects negative returns/growth and is ignored for comparison purposes | MTZ #s from Q1 2015 Press Release Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 15
Slide 16: Balance Sheet Strength
BALANCE SHEET STRENGTH Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix • No funded debt • Limited goodwill • Steady growth in tangible net worth • Strong liquidity position • Substantial bonding capacity │ Page 16 39 24 45 30 30 95 55 (17) (16) (
Slide 17: 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 18: Appendix
Appendix Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 18 Investor Presentation │ May │ © 2015MYRGROUPINC .
Slide 19: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Experienced management team that averages more than 19 years with MYR Group and approximately 32 years in our industry Strong corporate culture focused on customer service and safety Invested in management team for the successful execution of large, multi - year projects
Slide 20: 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 21: MYR Group Customer Sample
MYR GROUP CUSTOMER SAMPLE Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 21 Investor Presentation │ May │ © 2015MYRGROUPINC .
Slide 22: Emergency Response Revenue
EMERGENCY RESPONSE REVENUE $31 $24 $10 $43 $16 $14 $31 $41 $15 $13 $0 $10 $20 $30 $40 $50 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Millions Storm Revenue Storm Revenue Average $23.8MM 2005 – Katrina 2008 – Gustav 2008 – Ike 2011 – Irene 2011 – NE Snowstorm 2012 - Sandy Company Overview │ Ma
Slide 23: EBITDA Reconciliation
EBITDA RECONCILIATION Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 23 Investor Presentation │ May │ © 2015MYRGROUPINC . ($ In Millions, Except Per Share Amounts)* FY LTM 2008 2009 2010 2011 2012 2013 2014 3/31/2015 3/31/2014 Net Income
Slide 24: Financial Ratio Definitions
FINANCIAL RATIO DEFINITIONS Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 24 S&P Capital IQ Disclaimer of Liability Notice . This may contain information obtained from third parties, including ratings from credit ratings agencies such as