Myr Group, Inc. · NASDAQ:MYRG
Myr — Q4 2022 Earnings Presentation
23 slides from Myr's earnings presentation, Feb 24, 2023
Slide 1: Q4 Investor Presentation, February 2023
Q 4 I N V E S T O R P R E S E N T A T IO N 1 INVESTOR PRESENTATION Q 4 | F e b r u a r y 2 0 2 3 | N A S D A Q : M Y R G
Slide 2: Safe Harbor Statement
Q 4 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
Q 4 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 65 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 2022, up 20%
Q 4 I N V E S T O R P R E S E N T A T IO N 4 Achieved record revenue in 2022, up 20% from 2021 $3.01B 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 16.5%
Slide 5: Outlook
Q 4 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 4 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: Transmission & Distribution Business Segment Update
Q 4 I N V E S T O R P R E S E N T A T IO N 7 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 full year revenue of $1.75 Billion • ~ 50% of T&D business is Master Service Agreement work • Acquired the Powerline Plus Companies in January of 2022 Transmission Up
Slide 8: T&D Market Drivers
Q 4 I N V E S T O R P R E S E N T A T IO N 8 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 remain key drivers for transmission infrastructure investment, which is is the backbone of a reliable, res
Slide 9: Commercial & Industrial Business Segment Update
Q 4 I N V E S T O R P R E S E N T A T IO N 9 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 full year revenue of $1.26 Billion • Growth primarily due to increases in volume across all project sizes and incremental revenues from the acquisitions of CSI and the Hu
Slide 10: C&I Outlook
Q 4 I N V E S T O R P R E S E N T A T IO N 10 C&I OUTLOOK A C T I V E M A R K E T • Despite inflation and supply disruptions, our C&I segment sees steady bidding opportunities in our core markets including healthcare, clean energy, transportation and data centers. • Infrastructure Investment and Job
Slide 11: Market Opportunities: Growing Clean Energy Generation Mix
Q 4 I N V E S T O R P R E S E N T A T IO N 11 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 12: Clean Energy Transformation Partners
Q 4 I N V E S T O R P R E S E N T A T IO N 12 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 13: Positioned for Growth
Q 4 I N V E S T O R P R E S E N T A T IO N 13 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 14: Cornerstones of Our Sustainability Practices
Q 4 I N V E S T O R P R E S E N T A T IO N 14 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 15: Delivering Strong Returns
Q 4 I N V E S T O R P R E S E N T A T IO N 15 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 20.85% EME - CAGR 13.08% PWR - CAGR 29.85% MTZ - CAGR 11.27% DY - CAGR (3.46%) -150.0% -100.0% -50.0% 0.0% 50.0% 100.0% 150.0% 200.0% 250.0% 300.0% 350.0% Dividen
Slide 16: Financial Snapshot: Q4 Highlights
Q 4 I N V E S T O R P R E S E N T A T IO N 16 FINANCIAL SNAPSHOT Q4 HIGHLIGHTS The dedication and talent of our team members contributed to our growing success in 2022. Market indicators remain positive, and we look forward to positioning the company for increased success in 2023..….. Rick Swartz Pr
Slide 17: Balance Sheet Strength
Q 4 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 $77.1 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% $0 $20 $40 $60 $80 $100 2018 2019 2020 2021 2022 M ill io n s CAPEX Investment CAPEX Spend
Slide 18: Financial Performance Demonstrates Strong, Long-Term Execution
Q 4 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 $3,009 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 2018 2019 2020 2021 2022 M ill io n s Revenue by Work Type Trans. Dist. C
Slide 19: Experienced Leaders
Q 4 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 4 I N V E S T O R P R E S E N T A T IO N 20 PRUDENT CAPITAL RETURNS Authorized new $75 million share repurchase program • Effective November 2, 2022; will expire May 8, 2023, or when the authorized funds are exhausted, whichever is earlier • As of December 31, 2022, the Company had $75.0 million o
Slide 21: Representative Customer Sample
Q 4 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 4 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
Q 4 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