Myr Group, Inc. · NASDAQ:MYRG
Myr — Q1 2023 Earnings Presentation
22 slides from Myr's earnings presentation, Apr 27, 2023
Slide 1: Investor Presentation Q1 April 2023
INVESTOR PRESENTATION Q1 | April 2023 | NASDAQ: MYRG 1
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT 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 forward-looking statements. The forward-looking statements may include projections and S T
Slide 3: A Market Leader
A MARKET LEADER DELIVERING ELECTRICAL CONSTRUCTION SERVICES FOR MORE THAN A CENTURY MYR Group Inc. subsidiaries deliver some of the largest and CONTINUED GROWTH most notable electrical infrastructure and commercial and Healthy organic and acquisitive growth REPORTABLE SEGMENTS TRANSMISSION & DISTRIB
Slide 4: Ranked Among Top 5 U.S. Specialty Electrical Contractors
RANKED AMONGTOP 5 U.S. SPECIALTY ELECTRICAL CONTRACTORS 28 YEARS IN A ROW $3.18B LTM Q1 2023 Achieved record revenue in 2022, up 20% from 2021 $3.01B 2022 $2.50B 2021 $2.25B 2020 $2.07B 2019 $1.53B 2018 CAGR 18.8% 4
Slide 5: Outlook
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-t
Slide 6: Transmission & Distribution Business Segment Update
TRANSMISSION & DISTRIBUTION TRANSMISSION T & D B U S I N E S S S E G M E N T U P D AT E • T&D record LTM March 31, 2023 revenue of $1.83 billion DISTRIBUTION • Approx. 50% of T&D business is Master Service Agreement work • Acquired the Powerline Plus Companies in January of 2022 SUBSTATION T&D Reven
Slide 7: T&D Market Outlook
T&D MARKET OUTLOOK STRONG LONG-TERM DRIVERS U.S. and Canadian Electric Distribution Actual and Forecasted Capital Expenditures • Aging infrastructure, system hardening, grid reliability, and clean energy projects remain key drivers for transmission infrastructure investment – along with “Overall dis
Slide 8: Commercial & Industrial Business Segment Update
COMMERCIAL & INDUSTRIAL C & I B U S I N E S S S E G M E N T U P D AT E COMMERCIAL • C&I record LTM March 31, 2023 revenue of $1.36 billion • Growth primarily due to increases in volume across all project sizes and incremental revenues from the acquisitions of CSI and the Huen INDUSTRIAL Companies in
Slide 9: C&I Market Outlook
C&I MARKET OUTLOOK C&I’s strong $1.39B backlog as of March 31, 2023 is driven by: ACTIVE MARKET Hospitals Data Centers • Despite inflation and supply disruptions, our C&I segment sees steady bidding opportunities in our core Airport Projects markets including healthcare, clean energy, transportation
Slide 10: Market Opportunities
MARKET OPPORTUNITIES GROWING CLEAN ENERGY GENERATION MIX CREATES OPPORTUNITIES FOR BOTH BUSINESS SEGMENTS UTILITY-SCALE SOLAR Despite the complex procurement environment, Wood Mackenzie forecasts that 139 GWdc of total • The generation mix across the U.S. is changing as traditional baseload generati
Slide 11: Clean Energy Transformation Partner
CLEAN ENERGY TRANSFORMATION PARTNER Tremendous investment in electrical infrastructure is needed to meet the needs of the evolving energy landscape. MYR Group remains well positioned to deliver this critical infrastructure, serving as a long-term MYR Group plays a key role partner for our clients as
Slide 12: Positioned for Growth
POSITIONED FOR GROWTH STRONG MARKET COUPLED WITH OUR COMPETITIVE EDGE • Proven execution of corporate strategy Long-term growth U.S./Canada both organically and • Strong financial position via acquisition • Centralized operations to allow for greater Transmission market outlook efficiency and cross-
Slide 13: Cornerstones of Our ESG Practices
CORNERSTONES OF OUR ESG PRACTICES B U I L D I N G A S U S TA I N A B L E F U T U R E • Strive for sustainability on all our • Safety is a core value and our • Independent Chairman of the Board projects by reducing waste and commitment results in achieving some diligently implementing measures that o
Slide 14: Dividend Adjusted Stock Return
DIVIDEND ADJUSTED STOCK RETURN DELIVERING STRONG RETURNS Dividend Adjusted Stock Return (01/02/2019 - 03/31/2023) MYRG Div. Adj. Return EME Div. Adj. Return PWR Div. Adj. Return MTZ Div. Adj. Return DY Div. Adj. Return 500.0% PWR - CAGR 50.37% Dividend Adjusted Stock Return Stock Price as of: MYRG E
Slide 15: Financial Snapshot
FINANCIAL SNAPSHOT FINANCIAL “ OVERVIEW We continue expanding our strong Q1 HIGHLIGHTS customer relationships through alliance $1.83B T&D agreements and project work across our $1.36B C&I BUSINESS SEGMENT districts. We also see healthy bidding activity REVENUE $811.6M $23.2M $2.67B and intend to str
Slide 16: Balance Sheet Strength
BALANCE SHEET STRENGTH WELL-POSITIONED TO SUPPORT ADDITIONAL GROWTH CAPEX Investment CAPEX Spend CAPEX % of Rev • Little off-balance-sheet leverage $100 10.0% Millions $82.6 • Low debt leverage $77.1 $80 8.0% $57.8 • Strong balance sheet with $363.3M in availability under $60 $44.4 $52.4 6.0% our $3
Slide 17: Financial Performance
FINANCIAL PERFORMANCE D E M O N S T R AT 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 Revenue by Work Type Backlog Backlog > 12 Mo 12 Mo. Backlog 19.4% CAGR Trans. Dist. C&I 14.1% CAGR $3.00 $2.67 Billions $3,500 $3,184 $2.50 $3,009 $2.50 Millions $3,000 $2,247 $2,498 $2.00 $1.79 $2,500 $1.
Slide 18: Experienced Leadership
EXPERIENCED LEADERSHIP EXECUTIVES & BOARD OF DIRECTORS BOARD OF DIRECTORS STATISTICS MYR Group Inc. has a strong team of experienced leaders that make up our executive team and Board of Directors. We believe diversity of our leadership is a critical 38% 25% 88% 7:1 Diverse Majority Effective Februar
Slide 19: Creating Shareholder Value
CREATING SHAREHOLDER VALUE Strategic expansion of geographic footprint into new markets Invest in additional fleet and labor resources to ORGANIC GROWTH expand capacity Expand in new and existing Leverage extensive bid knowledge and long- markets that align with core term customer relationships capa
Slide 20: Representative Customers
REPRESENTATIVE CUSTOMERS MYR Group subsidiaries maintain strong, long-standing relationships with a diverse customer base throughout both our T&D and C&I business segments. 20
Slide 21: Reconciliation of Non-GAAP Measures
RECONCILIATION of Non-GAAP Measures D E M O N S T R AT E S S T R O N G , L O N G - T E R M E X E C U T I O N EBITDA Free Cash Flow ($ In Mi l l i ons , Except Per Sha re Amounts )* FY LTM LTM 2019 2020 2021 2022 3/31/2023 3/31/2023 Net Income $ 36.2 $ 58.8 $ 85.0 $ 83.4 $ 85.9 Net cash flow from ope
Slide 22: Definitions
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 with the DEFINITIONS prior written p