Myr Group, Inc. · NASDAQ:MYRG
Myr — Investor Presentation (January 2016)
32 slides from Myr's investor presentation, Jan 12, 2016
Slide 1: Investor Presentation January 2016
INVESTOR PRESENTATION 20 16 January Nasdaq: MYRG
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Forward - Looking Statements Various statements in these materials, including those that express a belief, expectation, or intention, as well as those tha t a re not statements of historical fact, are forward - looking statements. The forward - looking statements may include pr
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 │ January │ © 2016MYRGROUPINC .
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 & Ca
Slide 7: North American Coverage
NORTH AMERICAN COVERAGE Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 7 Office Locations Office Locations New Office Locations in the last 12 Months Investor Presentation │ January │ © 2016MYRGROUPINC . New C&I Locations: Westbrook, ME S
Slide 8: T&D Market Conditions Remain Favorable
T&D MARKET CONDITIONS REMAIN FAVORABLE Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 8 Source: U.S. Department of Energy | August 2015 Transmission Data Review Miles of Planned Transmission Lines Expected to be completed by 2019 “Planned
Slide 9: T&D Market Conditions Remain Favorable
T&D MARKET CONDITIONS REMAIN FAVORABLE Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 9 Source: Harris Williams & Co. Transmission & Distribution Infrastructure | Summer 2014 Number of Major U.S. Power Outages Historical and Projected Tra
Slide 10: 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 11: 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 • Look for opportunities that are good cultural fits • E
Slide 12: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE 46% 56% 51% 59% 68% 68% 58% 56% 27% 18% 24% 21% 15% 12% 16% 19% 27% 26% 25% 20% 17% 20% 26% 25% 0% 20% 40% 60% 80% 100% 2008 2009 2010 2011 2012 2013 2014 2015 (Q3 LTM) % of Total Revenue by Segment Transmission % Distribution % C&I % Company Overview │ Market Overview │
Slide 13: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE Backlog includes signed contracts and 90 days of alliance agreements Not a static business; MYR is consistently marketing to new customers, bidding on new projects and expanding to new geographic territories Company Overview │ Market Overview │ Strategy │ Financial Perfo
Slide 14: Investment in CAPEX Supported Growth Initiatives
INVESTMENT IN CAPEX SUPPORTED GROWTH INITIATIVES Successful execution of strategy Invested in specialty equipment in 2011 – 2015 which contributed to organic top - line revenue growth Source : S&P Capital IQ │ Page 14 $616 $631 $597 $780 $999 $903 $944 $1,041 $0 $200 $400 $600 $800 $1,000 $1,200 200
Slide 15: Balance Sheet Strength
BALANCE SHEET STRENGTH Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix • No funded debt • Little off - balance - sheet leverage • Limited goodwill • Steady growth in tangible net worth • Strong liquidity position • Substantial bonding capacity │
Slide 16: Share Repurchase Program
SHARE REPURCHASE PROGRAM Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 16 $0.8 $9.8 $5.1 $1.8 $ - $6.9 $18.3 $24.8 $10.5 $15.6 $17.5 $17.5 $24.3 $42.7 $67.5 $ - $10 $20 $30 $40 $50 $60 $70 $80 2014 - Q2 2014 - Q3 2014 - Q4 2015 - Q1 2015
Slide 17: Peer Group Segment Information
PEER GROUP SEGMENT INFORMATION Source : S&P Capital IQ | LTM Q3 2015 Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 17 Investor Presentation │ January │ © 2016MYRGROUPINC . MYR Group Quanta Willbros MasTec EMCOR MYRG PWR WG MTZ EME ($ in
Slide 18: Peer Group Performance Comparison
PEER GROUP PERFORMANCE COMPARISON Source : S&P Capital IQ - NM ( Not Meaningful) reflects negative returns/growth and is ignored for comparison purposes | LTM Q3 2015 Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 18 14.4% 10.1% 9.0% 0.8%
Slide 19: Peer Group Performance Comparison
PEER GROUP PERFORMANCE COMPARISON Source : S&P Capital IQ - NM ( Not Meaningful) reflects negative returns/growth and is ignored for comparison purposes | LTM Q3 2015 Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 19 5.4% 4.8% 4.0% 1.0% N
Slide 20: Dividend Adjusted Stock Return
DIVIDEND ADJUSTED STOCK RETURN Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 20 Investor Presentation │ January │ © 2016MYRGROUPINC . MYRG, 60.4% EME, 93.7% PWR, - 24.1% MTZ, 68.7% WG, - 93.3% -100.0% -50.0% 0.0% 50.0% 100.0% 150.0% 200.
Slide 21: 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 33+ years of industry experience Experienced Management • Regulatory environment supports
Slide 22: Appendix
Appendix Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 22 Investor Presentation │ January │ © 2016MYRGROUPINC .
Slide 23: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Experienced management team that averages more than 21 years with MYR Group and approximately 33 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 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 25: MYR Group Customer Sample
MYR GROUP CUSTOMER SAMPLE Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 25 Investor Presentation │ January │ © 2016MYRGROUPINC .
Slide 26: 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 $23.8MM 2005 – Katrina 2008 – Gustav 2008 – Ike 2011 – Irene 2011 – NE Snowstorm 2012 - Sandy Company Overview │ Ma
Slide 27: EBITDA Reconciliation
EBITDA RECONCILIATION Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 27 (In Millions, Except Per Share Amounts) FY LTM 2008 2009 2010 2011 2012 2013 2014 9/30/2015 9/30/2014 Net Income 23.6$ 17.2$ 16.1$ 18.3$ 34.3$ 34.8$ 36.5$ 35.6$ 32.4$
Slide 28: Financial Ratio Definitions
FINANCIAL RATIO DEFINITIONS Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 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
Slide 29: Peer Group Segment Information Exhibit
PEER GROUP SEGMENT INFORMATION EXHIBIT Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 29 Investor Presentation │ January │ © 2016MYRGROUPINC . NOTE: Presentation groupings were created for comparison purpose of similar market segments. Ho
Slide 30: Peer Group Segment Descriptions
PEER GROUP SEGMENT DESCRIPTIONS Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 30 MYR GROUP 8. Segment Information MYR Group is a specialty contractor serving the electrical infrastructure market. The Company has two reporting segments, e
Slide 31: Peer Group Segment Descriptions
PEER GROUP SEGMENT DESCRIPTIONS Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 31 Willbros 13. Segment Information Business Segments The Company has four operating segments: Oil & Gas , Professional Services , Utility T&D and Canada . The
Slide 32: Peer Group Segment Descriptions
PEER GROUP SEGMENT DESCRIPTIONS Company Overview │ Market Overview │ Strategy │ Financial Performance │ Investment Outlook │ Appendix │ Page 32 Investor Presentation │ January │ © 2016MYRGROUPINC . EMCOR Group, Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) NO