Myr Group, Inc. · NASDAQ:MYRG
Myr — Investor Presentation (August 2019)
23 slides from Myr's investor presentation, Aug 14, 2019
Slide 1: Q2 2019 Investor Presentation
August 2019 UPDATE | NASDAQ: MYRG Q2 2019 INVESTOR PRESENTATION
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
Page 3 Investor Presentation │ AUGUST │ ©2019 MYR GROUP INC. Company Overview Strategy Market Overview Financial Performance Investment Outlook Appendix TABLE OF CONTENTS
Slide 4: Company Overview
Company Overview │ Page 4 Investor Presentation │ AUGUST │ ©2019 MYR GROUP INC. $1.53B 2018 Revenue $1.14B 2016 $1.06B 2015 $944M 2014 $903M 2013 $999M 2012 $780M 2011 $597M 2010 • AMONG TOP 5 ENR U.S. Specialty Electrical Contractors for 23 years in a row • REPORTABLE SEGMENTS Commercial & Industri
Slide 5: Company Overview: Strong Market Position
Company Overview │ Page 5 Investor Presentation │ AUGUST │ ©2019 MYR GROUP INC . STRONG MARKET POSITION • A nationwide leader in Transmission & Distribution • Growing regional presence in Commercial and Industrial • Broad geographic footprint with a strong presence in key growth markets • Network of
Slide 6: Company Overview: T&D and C&I Revenue
Company Overview │ Page 6 $447 $622 $829 $722 $700 $795 $819 $879 $893 $1,008 $0 $200 $400 $600 $800 $1,000 $1,200 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q2 LTM Millions T&D Revenue T&D Revenue 9.4% CAGR $150 $158 $170 $180 $244 $267 $324 $524 $638 $754 $0 $100 $200 $300 $400 $500 $600 $7
Slide 7: Strategy
Strategy │ Page 7 Investor Presentation │ AUGUST │ ©2019 MYR GROUP INC . ORGANIC GROWTH Expand in new and existing markets that align with MYR Group’s core capabilities • Strategic expansion of MYR Group’s geographic footprint into new markets • Invest in additional fleet and labor resources to expa
Slide 8: MYR Group's Strong Competitive Advantage
MYR Group’s Strong Competitive Advantage • Added multiple new locations in the past several years through organic growth and five acquisitions • History of successful, quality project execution throughout our 125+ years in business • Centrally managed fleet allows for greater leverage of resources t
Slide 9: Geographic Expansion
Geographic Expansion • Expanded presence in California with established offices in: • Santa Fe Springs, CA • San Marcos, CA • San Jose, CA • Palmdale, CA • Santa Clarita, CA Service Offering Expansion • Offers a wide range of commercial and industrial electrical construction services with significan
Slide 10: Market Overview: T&D Market Conditions Remain Favorable
Market Overview │ Page 10 Source: U.S. Department of Energy | March 2018 Transmission Data Review Miles of Planned Transmission Lines Expected to be completed by 2020 “Planned […] refers to projects where: (a) Permits have been approved (b) A design is complete, or (c) The project is necessary to me
Slide 11: Market Overview: Transmission and Distribution Investment
Market Overview │ Page 11 Source: The C Three Group, 2018 North American Electric Distribution Market Forecast, September 2018 Historical and Projected Transmission Investment (Nominal Dollars) Source: EEI Transmission Projects: At A Glance, October 2018 (Note: r=revised) Transmission Spend Drivers
Slide 12: Market Overview: C&I Backlog and Dodge Momentum Index
C&I’s strong $677.3MM backlog as of 6/30/2019 is driven by: Hospitals Data Centers Airport Projects Transportation Work Aerospace Water / Waste Water Upgrades Market Overview │ Page 12 Dodge Momentum Index – by McGraw - Hill Construction - 12 - mo. leading indicator of construction spending for nonr
Slide 13: Financial Performance
Financial Performance│ Page 13 $0.60 $0.78 $1.00 $0.90 $0.94 $1.06 $1.14 $1.40 $1.53 $1.76 $- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 $2.00 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q2 LTM Billions Revenue by Work Type Trans. Dist. C&I 13.6% CAGR $0.40 $0.41 $0.43 $0.45 $0.43 $
Slide 14: Financial Performance: ROIC and Liquidity
15.7% 13.7% 11.1% 9.3% 8.4% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% EME MTZ DY MYRG PWR 3 - Year Average ROIC • Little off - balance - sheet leverage • Limited goodwill • Modest debt leverage • Strong liquidity position • Substantial bonding capacity • Investment in specialty equipmen
Slide 15: Dividend Adjusted Stock Return
MYRG - CAGR 6.97% EME - CAGR 11.07% PWR - CAGR 2.11% MTZ - CAGR 16.40% DY - CAGR 4.91% -100.0% 0.0% 100.0% 200.0% 300.0% 400.0% 500.0% 600.0% Dividend Adjusted Stock Return (12/26/2007 - 08/09/2019) MYRG Div. Adj. Return EME Div. Adj. Return PWR Div. Adj. Return MTZ Div. Adj. Return DY Div. Adj. Ret
Slide 16: Investment Outlook
Investment Outlook │ Page 16 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 resour
Slide 17: Appendix
Appendix │ Page 17 Investor Presentation │ AUGUST │ ©2019 MYR GROUP INC. APPENDIX
Slide 18: Corporate Governance Overview
EXPERIENCED BOARD WITH INDEPENDENT OVERSIGHT • 7 of 9 directors are independent • 5 of 9 directors have significant energy / utility experience • Independent Chairman of the Board • Audit, Compensation and Nominating / Governance committees comprised solely of independent directors • Separate execut
Slide 19: Experienced Management Team
• Experienced management team averages more than 22 years with MYR Group and more than 30 years in our industry • Strong corporate culture focused on customer service and safety • Investment in management team for the successful execution of large, multi - year projects BETTY JOHNSON Chief Financial
Slide 20: Service Offerings
Appendix │ Page 20 Investor Presentation │ AUGUST │ ©2019 MYR GROUP INC. Transmission Renewables Distribution Traffic Signalization Telecommunications Substation Foundations Industrial Storm Restoration EPC Commercial Smart Grid SERVICE OFFERINGS
Slide 21: MYR Group Customer Sample
Appendix │ Page 21 Investor Presentation │ AUGUST │ ©2019 MYR GROUP INC. MYR GROUP CUSTOMER SAMPLE
Slide 22: EBITDA Reconciliation
Note: LTM diluted weighted average shares outstanding were determined by adding the average shares reported for the last four quart ers 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 perform anc e or to net
Slide 23: S&P Capital IQ Disclaimer of Liability
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 prior written permission