Myr Group, Inc. · NASDAQ:MYRG
Myr — Investor Presentation (March 2021)
28 slides from Myr's investor presentation, Mar 5, 2021
Slide 1: Q4 2020 March 2021 Update Investor Presentation
Q4 2020 March 2021 Update | NASDAQ: MYRG INVESTOR PRESENTATION
Slide 2: MYR Group's strategy of conservative, profitable, steady growth
2 MYR Group’s ability to execute its strategy of conservative, profitable, steady growth in a focused, scalable market -- electrical construction -- is a strength that differentiates us from the rest.
Slide 3: Safe Harbor Statement
SAFE HARBOR STATEMENT 3 Forward-Looking Statements Various statements in this communication, including those that express a belief, expectation, or intention, as well as those that are not statements of historical fact, are forward-looking statements. The forward- looking statements may include proj
Slide 4: Table of Contents
TABLE OF CONTENTS Company Overview Strategy Market Overview Financial Performance Investment Outlook Appendix 4 Investor Presentation │ MARCH │ ©2021 MYR GROUP INC.
Slide 5: For more than a century, MYR Group's subsidiaries have served electrical construction needs
5 For more than a century, MYR Group’s subsidiaries have served the electrical construction needs of clients. Our reputation for excellence in both our markets makes us a leader in the industry. Investor Presentation │ MARCH │ ©2021 MYR GROUP INC.
Slide 6: A Market Leader
6 Investor Presentation │ MARCH │ ©2021 MYR GROUP INC. EXPANDING PRESENCE in C&I NATIONWIDE LEADER in T&D GROWING FOOTPRINT HEALTHY ORGANIC & ACQUISITIVE GROWTH STRONG PRESENCE IN KEY GROWTH MARKETS LONG STANDING CLIENT RELATIONSHIPS GROWING REVENUES STRONG BACKLOG EXTENSIVE, CENTRALIZED FLEET STABL
Slide 7: Strategic Imperatives
7 STRATEGIC IMPERATIVES Ensures we are focused on the right work and programs Deliver positive financial results on a consistent basis while positioning the company for growth Strive to always be the first choice for our clients and remain one of the most reliable and efficient, high- value provider
Slide 8: COVID-19 business operations update
8 Investor Presentation │ MARCH │ ©2021 MYR GROUP INC. • Considered an essential business as a provider of critical infrastructure services. • Remain committed to serving our customers and are responding and adhering to any new or heightened job-site requirements and guidelines to protect our front-
Slide 9: COVID-19 pandemic impact
9 Investor Presentation │ MARCH │ ©2021 MYR GROUP INC. Since March of 2020, the COVID-19 pandemic has had a significant impact on the global economy, including the US and Canadian economies. As the situation continues to evolve, we are closely monitoring the impact of the COVID-19 pandemic on all as
Slide 10: Record revenues and revenue growth
10 $2.25B 2020 $1.14B 2016 $1.06B 2015 $944M 2014 $903M 2013 $999M 2012 $780M 2011 $1.40B 2017 $1.53B 2018 AMONG TOP 5 ENR U.S. Specialty Electrical Contractors for 25 years in a row REPORTABLE SEGMENTS Commercial & Industrial (C&I) Transmission & Distribution (T&D) RECORD REVENUES Reached record re
Slide 11: Transmission & Distribution business segment
COMPREHENSIVE SERVICE OFFERINGS 11 TRANSMISSION & DISTRIBUTION (T&D) BUSINESS SEGMENT Transmission up to 765kV Overhead and Underground Distribution Substations Foundations & Caissons and Directional BoringStorm Restoration Renewables Segment Updates: ● Full year T&D record revenue of $1,154 Million
Slide 12: Commercial & Industrial business segment
COMPREHENSIVE SERVICE OFFERINGS 12 COMMERCIAL & INDUSTRIAL (C&I) BUSINESS SEGMENT IndustrialCommercial Telecommunications Renewables Transportation/ Traffic Signalization Voice, Data, Video Systems Segment Updates: ● Full year C&I record revenue of $1,093 Million ● Growth primarily due to increases
Slide 13: Strong Competitive Advantage
STRONG COMPETITIVE ADVANTAGE WE ARE… Expanding our depth and breadth of expertise while refining project delivery capabilities Helping our people reach their fullest potential through investments in training and development Building a future driven mindset and deploying new systems and technologies
Slide 14: Positioned for Growth
POSITIONED FOR GROWTH 14 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/large projects) C&I Strength in C&I sector (Airport, Healthcare, Data Center, Hwy/Transp.) RENEWABLES Clean energy initiatives
Slide 15: Value Creation Opportunities
VALUE CREATION OPPORTUNITIES 63 ORGANIC GROWTH Expand in new and existing markets that align with core capabilities • Strategic expansion of geographic footprint into new markets • Invest in additional fleet and labor resources to expand capacity • Leverage extensive bid knowledge and long-term cust
Slide 16: Favorable T&D Market Conditions
16 FAVORABLE T&D MARKET CONDITIONS Source: The C Three Group, North American Electric Distribution Market Forecast, September 2019 Drivers of T&D Spend System Reliability Aging Electric Grid Connecting Renewables Plant Retirements Storm Hardening Housing Starts “Capital expenditures came in at $40.4
Slide 17: Market Opportunities
17 MARKET OPPORTUNITIES The generation mix across the U.S. is changing as traditional baseload generation resources retire and renewable generation provides an increasingly large percentage of demand. Investor Presentation │ MARCH │ ©2021 MYR GROUP INC. In Q3, the U.S. solar market installed 3.8GW o
Slide 18: Active C&I Market and backlog
18 Investor Presentation │ MARCH │ ©2021 MYR GROUP INC. C&I’s strong $895.5M backlog as of 12/31/2020 is driven by: Hospitals Data Centers Airport Projects Transportation Work Aerospace Water / Wastewater Upgrades • Most of our primary markets are deemed critical and essential and may be less vulner
Slide 19: Delivering Strong Returns
19 DELIVERING STRONG RETURNS MYRG - CAGR 24.20% EME - CAGR 15.18% PWR - CAGR 29.11% MTZ - CAGR 31.19% DY - CAGR 1.95% -100.0% -50.0% 0.0% 50.0% 100.0% 150.0% 200.0% 250.0% 300.0% 350.0% Dividend Adjusted Stock Return (01/04/2016 - 12/31/2020) MYRG Div. Adj. Return EME Div. Adj. Return PWR Div. Adj.
Slide 20: Balance Sheet Strength to Support Additional Growth
$25.4 $30.8 $50.7 $57.8 $44.4 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% $0 $20 $40 $60 $80 2016 2017 2018 2019 2020 M il li o n s CAPEX Investment CAPEX Spend CAPEX % of Rev 20 BALANCE SHEET STRENGTH TO SUPPORT ADDITIONAL GROWTH 15.3% 13.6% 10.6% 8.7% 6.5% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0%
Slide 21: Strong Long-Term Financial Performance
21 STRONG LONG-TERM FINANCIAL PERFORMANCE $1,142 $1,403 $1,531 $2,071 $2,247 $- $500 $1,000 $1,500 $2,000 $2,500 2016 2017 2018 2019 2020 M il li o n s Revenue by Work Type Trans. Dist. C&I 18.4% CAGR $0.66 $0.63 $0.70 $0.68 $0.96 $1.01 $1.10 $1.15 $1.14 $1.16 $1.37 $1.50 $1.54 $1.55 $1.72 $1.65 $0.
Slide 22: Investment Outlook
Strong Financial Position Strong equity base provides capacity to add leverage for additional potential acquisitions, organic growth and share repurchases Centralized Fleet & Corporate Operations Centralization allows for greater efficiency and leverage of company resources Positive Industry Outlook
Slide 23: Corporate Governance Overview
23 CORPORATE GOVERNANCE OVERVIEW DIVERSE AND EXPERIENCED BOARD WITH INDEPENDENT OVERSIGHT • 7 of 9 directors are independent • 3 of 7 independent directors are diverse • 5 of 9 directors have significant energy / utility experience • Independent Chairman of the Board • Audit, Compensation, Nominatin
Slide 24: Experienced Management Team
24 Chief Executive Officer 38 years with MYRG 38 years in industry Rick Swartz Chief Financial Officer 20 years with MYRG 31 years in industry Betty Johnson Chief Legal Officer 2 year with MYRG 23 years in industry William Fry Chief Operating Officer – Transmission & Distribution 30 years with MYRG
Slide 25: Appendix
25 APPENDIX
Slide 26: MYR Group Customer Sample
MYR GROUP CUSTOMER SAMPLE 26 Investor Presentation │ MARCH │ ©2021 MYR GROUP INC.
Slide 27: EBITDA Reconciliation
27 EBITDA RECONCILIATION Note: LTM diluted weighted average shares outstanding were determined by adding the average shares reported for the last four quarters and dividing by four. EBITDA is not recognized under GAAP and does not purport to be an alternative to net income as a measure of operating
Slide 28: Financial Ratio Definitions
FINANCIAL RATIO DEFINITIONS 28 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