Myr Group, Inc. · NASDAQ:MYRG
Myr — Investor Presentation (March 2016)
32 slides from Myr's investor presentation, Mar 8, 2016
Slide 1: Investor Presentation March 2016
INVESTOR PRESENTATION 20 16 March Nasdaq: MYRG
Slide 2: Forward-Looking Statements
Forward - Looking Statements Various statements in this communication, including those that express a belief, expectation, or intention, as well as those tha t are not statements of historical fact, are forward - looking statements. The forward - looking statements may include projections and estima
Slide 3: Table of Contents
Company Overview Strategy Market Overview Financial Performance Investment Outlook Appendix │ Page 3 Investor Presentation │ March │ © 2016MYRGROUPINC . TABLE OF CONTENTS Company Overview │ Strategy │ Market Overview │ Financial Performance │ Investment Outlook │ Appendix
Slide 4: MYR: A Market Leader Positioned for Growth
│ Page 4 Investor Presentation │ March │ ©2016MYRGROUPINC. MYR: A MARKET LEADER POSITIONED FOR GROWTH Strong Market Position x Leader in Transmission & Distribution (T&D) – national x Growing presence in Commercial and Industrial (C&I) – regional x Broad geographic footprint with a strong presence i
Slide 5: Comprehensive North American Service Offerings
Transmission & Distribution T&D Commercial & Industrial C&I │ Page 5 • Transmission up to 765kV • Overhead Distribution • Underground Distribution • Foundations & Caissons • Directional Boring • Substation & Collector Systems • EPC Services • PCS / Cellular Towers • Emergency Storm Response • Fiber
Slide 6: Future Growth and Value Creation Opportunities
Leverage MYR’s market leading position and three - pronged approach to deliver higher growth and higher value │ Page 6 Investor Presentation │ March │ ©2016MYRGROUPINC. FUTURE GROWTH AND VALUE CREATION OPPORTUNITIES Organic Growth Strategic Acquisitions Prudent Capital Return Expand in new and exist
Slide 7: MYR Group's Strong Competitive Advantage
MYR Group’s Strong Competitive Advantage x MYR added 12 new locations in 2015, including 4 locations that were added through two acquisitions x Modern fleet ensures limited downtime x Centrally located fleet allows for greater efficiency and leverage of resources to effectively service nationwide fo
Slide 8: Executing on MYR's Capital Return Strategy
$0.8 $9.8 $5.1 $1.8 $ - $6.9 $18.3 $11.5 $88.3 $10.5 $15.6 $17.5 $17.5 $24.3 $42.7 $54.2 $142.5 $- $30 $60 $90 $120 $150 2014-Q2 2014-Q3 2014-Q4 2015-Q1 2015-Q2 2015-Q3 2015-Q4 2016 YTD Remain Auth. Millions Qtr $ Cumulative $ │ Page 8 • On February 10, 2016 the Board approved amendments to MYR’s Re
Slide 9: 2015 Acquisitions
│ Page 9 Investor Presentation │ March │ ©2016MYRGROUPINC. Geographic Expansion Enhance End Market Exposure Service Offering Expansion Grow Skilled Workforce 2015 ACQUISITIONS Company Overview │ Strategy │ Market Overview │ Financial Performance │ Investment Outlook │ Appendix • Expanded presence in
Slide 10: T&D Market Conditions Remain Favorable
│ Page 10 Source: U.S. Department of Energy | August 2015 Transmission Data Review Miles of Planned Transmission Lines Expected to be completed by 2019 “Planned […] refers to projects where: (a ) Permits have been approved (b ) A design is complete, or (c ) The project is necessary to meet a regulat
Slide 11: T&D Market Conditions Remain Favorable
│ Page 11 Source: The C Three Group, North American Electric Distribution Market Forecast 2008 - 2020, September 2015 Historical and Projected Transmission Investment (Nominal Dollars) Source: EEI Actual and Planned Transmission Investments By Investor - Owned Utilities (2009 - 2018) Oct. 2015 “The
Slide 12: Dodge Momentum Index and C&I Backlog
Dodge Momentum Index – by McGraw - Hill Construction - 12 month leading indicator of construction spending for nonresidential building - 91% correlation between construction planning reports and the US Commerce Department’s Put in Place spending over the past 10 years Dodge Momentum Index - The Dodg
Slide 13: Strong Long-Term Financial Performance
$0.78 $0.87 $1.60 $1.61 $1.69 $1.30 $- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 2010 2011 2012 2013 2014 2015 Diluted EPS Diluted EPS 10.8% CAGR $43 $49 $81 $85 $92 $83 $- $20 $40 $60 $80 $100 2010 2011 2012 2013 2014 2015 Millions EBITDA Trend EBITDA 14.3% CAGR $326 $386 $398 $409 $434
Slide 14: Investment in CAPEX Supported Growth Initiatives
$21.9 $42.3 $37.2 $42.7 $39.0 $46.6 0.0% 5.0% 10.0% 15.0% 20.0% $- $25 $50 $75 2010 2011 2012 2013 2014 2015 Millions CAPEX Investment CAPEX Spend CAPEX % of Rev Source : S&P Capital IQ │ Page 14 Investor Presentation │ March │ ©2016MYRGROUPINC. Three - pronged approach to capital allocation – inclu
Slide 15: Balance Sheet Strength to Support Additional Growth and Share Repurchases
$4.71 $5.59 $6.48 $7.52 $9.30 $11.11 $12.58 $12.90 $- $2 $4 $6 $8 $10 $12 $14 $16 2008 2009 2010 2011 2012 2013 2014 2015 Tangible Book Value Per Diluted Share • Little off - balance - sheet leverage • Limited goodwill • Steady growth in tangible net worth • Strong liquidity position • Substantial b
Slide 16: Peer Group Segment Information
PEER GROUP SEGMENT INFORMATION Source : S&P Capital IQ | FY 2015 │ Page 16 Investor Presentation │ January │ © 2016MYRGROUPINC . Company Overview │ Strategy │ Market Overview │ Financial Performance │ Investment Outlook │ Appendix MYR Group Quanta Willbros MasTec EMCOR MYRG PWR WG MTZ EME ($ in Mill
Slide 17: Outperforming Our Peers in 2015
│ Page 17 MYR top performing LTM pretax income return and revenue growth Revenue growth includes expansion into new geographic territories, through organic and acquisition growth – see new locations on page 7 Since going public in August 2008, MYR has had no loss quarters, goodwill impairment charge
Slide 18: Three-Pronged Strategy Has Resulted in Leading Returns
Source : S&P Capital IQ - NEG (Negative) reflects negative returns/growth and is ignored for comparison purposes │ Page 18 Good, consistent steward of capital MYR continues to be a top performer with respect to return on investment metrics Investor Presentation │ March │ ©2016MYRGROUPINC. THREE - PR
Slide 19: Delivering Leading Returns
-100.0% -50.0% 0.0% 50.0% 100.0% 150.0% 200.0% 250.0% 300.0% 350.0% Time Period: (12/26/07 - 2/29/16) MYRG - Div Adj Share Return EME - Div Adj Share Return PWR - Div Adj Share Return MTZ - Div Adj Share Return WG - Div Adj Share Return │ Page 19 Investor Presentation │ March │ ©2016MYRGROUPINC. EME
Slide 20: 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 31+ years of industry experience Experienced Management • Regulatory environment supports growth and numerou
Slide 21: Appendix
Appendix │ Page 21 Investor Presentation │ March │ ©2016MYRGROUPINC. Company Overview │ Strategy │ Market Overview │ Financial Performance │ Investment Outlook │ Appendix
Slide 22: Corporate Governance Overview
│ Page 22 Investor Presentation │ March │ ©2016MYRGROUPINC. CORPORATE GOVERNANCE OVERVIEW EXPERIENCED BOARD WITH INDEPENDENT OVERSIGHT STRONG CORPORATE GOVERNANCE PRACTICES ▪ 8 of 9 Directors are independent ▪ 6 of 9 Directors have significant energy / utility experience ▪ Robust lead independent Di
Slide 23: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Experienced management team that averages more than 21 years with MYR Group and approximately 31 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 24: MYR Group Services
MYR GROUP SERVICES Transmission Wind Farms Distribution Traffic Signalization Telecommunications Substation Solar Installations Industrial Storm Restoration EPC Commercial Smart Grid │ Page 24 Investor Presentation │ March │ ©2016MYRGROUPINC. Company Overview │ Strategy │ Market Overview │ Financial
Slide 25: MYR Group Customer Sample
MYR GROUP CUSTOMER SAMPLE │ Page 25 Investor Presentation │ March │ ©2016MYRGROUPINC. Company Overview │ Strategy │ Market Overview │ Financial Performance │ Investment Outlook │ Appendix
Slide 26: Emergency Response Revenue
$31 $24 $10 $43 $16 $14 $31 $41 $15 $13 $8 $- $10 $20 $30 $40 $50 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Millions Storm Revenue Storm Revenue Average $22.3MM EMERGENCY RESPONSE REVENUE 2005 – Katrina 2008 – Gustav 2008 – Ike 2011 – Irene 2011 – NE Snowstorm 2012 - Sandy │ Page 26 Inv
Slide 27: EBITDA Reconciliation
EBITDA RECONCILIATION │ Page 27 Investor Presentation │ March │ ©2016MYRGROUPINC. (In Millions, Expect Per Share Amounts) FY 2008 2009 2010 2011 2012 2013 2014 2015 Net Income 23.6$ 17.2$ 16.1$ 18.3$ 34.3$ 34.8$ 36.5$ 27.3$ Interest Expense, net 0.7 0.6 1.0 0.5 0.8 0.7 0.6 0.7 Provision for Income T
Slide 28: Metric Definitions
Cash used in purchasing property and equipment (5 years) ÷ Revenue (5 years) = 5-Year CAPEX Investment % of Revenue EBIT (Earnings Before Interest, Taxes) X (1 - tax rate) ÷ [Book Value (total stockholders's equity) + Net Debt] @ beginning of LTM = Return on Invested Capital LTM Net Income (includin
Slide 29: Peer Group Segment Information Exhibit
PEER GROUP SEGMENT INFORMATION EXHIBIT │ Page 29 Investor Presentation │ March │ ©2016MYRGROUPINC. NOTE: Presentation groupings were created for comparison purpose of similar market segments. However, all companies do not classify their markets consistently. Please reference the following appendix p
Slide 30: Peer Group Segment Descriptions: MYR Group
PEER GROUP SEGMENT DESCRIPTIONS │ Page 30 MYR GROUP 8. Segment Information MYR Group is a specialty contractor serving the electrical infrastructure market. The Company has two reporting segments, eac h a separate operating segment, which are referred to as T&D and C&I. Transmission and Distribution
Slide 31: Peer Group Segment Descriptions: Willbros
PEER GROUP SEGMENT DESCRIPTIONS │ Page 31 Willbros 13. Segment Information Business Segments The Company has four operating segments: Oil & Gas , Professional Services , Utility T&D and Canada . The Company's segments are comprised of strategic businesses that are defined by the industries or geogra
Slide 32: Peer Group Segment Descriptions: EMCOR
PEER GROUP SEGMENT DESCRIPTIONS │ Page 32 Investor Presentation │ March │ ©2016MYRGROUPINC. EMCOR Group, Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) NOTE 17 Segment Information We have the following reportable segments: (a) United States electrical construc