Myr Group, Inc. · NASDAQ:MYRG
Myr — Investor Presentation (May 2014)
26 slides from Myr's investor presentation, May 12, 2014
Slide 1: Investor Presentation First Quarter 2014
Investor Presentation 2014 First Quarter Nasdaq: MYRG ¦ www.myrgroup.com Investor Presentation ¦ May ¦ ©2014MYRGROUPINC.
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Various statements in this presentation, and any oral statements regarding the subject matter of this presentation, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Sectio
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 ¦ May ¦ ©2014MYRGROUPINC.
Slide 4: About MYR Group
ABOUT MYR GROUP G:\Shared\Accounting\Pictures\Photos\First 765kV line photo - LE Myers.jpgG:\Shared\Accounting\Pictures\Photos\Sturgeon Work Crew 2.jpgG:\Shared\Accounting\Pictures\Photos\Oldciviccenter hi res-Sturgeon.jpg• MYR Group is a holding company of six specialty electrical contractors – Sub
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS • Strong market position – Transmission and Distribution (T&D) - national presence – Commercial and Industrial (C&I) - regional presence • Highly skilled national workforce • Regulatory environment supports growth • Favorable industry dynamics providing opportunities for stable
Slide 6: Nationwide T&D Services
NATIONWIDE T&D SERVICES • Transmission • Overhead Distribution • Underground Distribution • Foundations & Caissons • Directional Boring • Substation • EPC Services • PCS/Cellular Towers • Emergency Storm Response • Fiber Optics T&D CAPABILITIES MYR Group provides transmission, distribution and subst
Slide 7: Regional C&I Services
REGIONAL C&I SERVICES • Educational/Medical Centers • Industrial Facilities • Water & Wastewater Treatment Plants • Renovations and Major Additions • Data Centers • Technical Services • Voice / Data / Video • Transportation • Traffic Signalization • Bridge, Roadway, Tunnel Lighting • Government & Of
Slide 8: Centralized Fleet Operations
CENTRALIZED FLEET OPERATIONS Company Overview ¦ Market Overview ¦ Strategy ¦ Financial Performance ¦ Investment Outlook ¦ Appendix Screen Clipping200 Ton All-Terrain Crane 5-Drum Side-Winder Puller 80’ Track Material Handler Centralized Fleet Management Regional Support Facilities MYR Group’s centra
Slide 9: Strategic Investment in CAPEX Supported Organic Growth
STRATEGIC INVESTMENT IN CAPEX SUPPORTED ORGANIC GROWTH Successful execution of strategy: Invested in specialty equipment in 2011 - 2013 in anticipation of T&D build-out Grow top-line revenue organically through expansion of T&D capacity Source: S&P Capital IQ ¦ Page 9 Company Overview ¦ Market Overv
Slide 10: Regulatory Environment Supports Growth
REGULATORY ENVIRONMENT SUPPORTS GROWTH August 2005 - Energy Policy Act / Revised in 2009 by the American Recovery and Reinvestment Act •Established minimum reliability standards •Provided federal permitting and siting authority for transmission lines •Encouraged investment in infrastructure July 201
Slide 11: Transmission Spending
TRANSMISSION SPENDING Screen ClippingTransmission spending by electrical utilities driven by: System Reliability Aging Electric Grid Connecting Renewables Plant Retirements “Edison Electric Institute’s 2013 Transmission Projects: At a Glance report highlights more than 150 planned transmission proje
Slide 12: Regional C&I Growth Trends
REGIONAL C&I GROWTH TRENDS 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
Slide 13: 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 existing and new customers Organic Growth •Assess segments of the T&D and C&I markets to bring in-hous
Slide 14: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE $0.00$0.10$0.20$0.30$0.40$0.5012341234123412341234123412008200920102011201220132014Quarterly Diluted EPSDiluted EPS3.9% CAGR $0$100$200$300$400$500$600$700$80012341234123412341234123412008200920102011201220132014MillionsBacklogBacklog - C&IBacklog - T&D8.9% CAGR All reve
Slide 15: Financial Performance Comparison
FINANCIAL PERFORMANCE COMPARISON Source: S&P Capital IQ - NM (Not Meaningful) reflects negative returns/growth and is ignored for comparison purposes Company Overview ¦ Market Overview ¦ Strategy ¦ Financial Performance ¦ Investment Outlook ¦ Appendix ¦ Page 16 2.31x 2.14x 2.05x 1.72x 1.30x 1.28x 0.
Slide 16: Fundamental Financial Performance
FUNDAMENTAL FINANCIAL PERFORMANCE Company Overview ¦ Market Overview ¦ Strategy ¦ Financial Performance ¦ Investment Outlook ¦ Appendix ¦ Page 17 $1.99 $1.78 $1.62 $1.57 $0.30 NM$0.00$0.50$1.00$1.50$2.00$2.50EMEPWRMTZMYRGPIKEWGLTM EPS (Diluted) Source: S&P Capital IQ - NM (Not Meaningful) reflects n
Slide 17: Balance Sheet Strength
BALANCE SHEET STRENGTH Company Overview ¦ Market Overview ¦ Strategy ¦ Financial Performance ¦ Investment Outlook ¦ Appendix ($50) $0$50$100$150$200$250$30012341234123412341234123412008200920102011201220132014MillionsTotal LiquidityCredit FacilityCashLOCBank DebtTotal Liquidity • No funded debt • Li
Slide 18: 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 30+ years of industry experience Experienced Management •Regulatory environment supports gr
Slide 19: Appendix
Appendix Company Overview ¦ Market Overview ¦ Strategy ¦ Financial Performance ¦ Investment Outlook ¦ Appendix ¦ Page 20 Investor Presentation ¦ May ¦ ©2014MYRGROUPINC.
Slide 20: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Experienced management team that averages more than 20 years with MYR Group and roughly 31 years in our industry Operations management averages 38 years of industry experience Strong corporate culture focused on customer service and safety Invested in management team for
Slide 21: MYR Group Services
MYR GROUP SERVICES Transmission Collector Systems Distribution Traffic Signalization Telecommunications Substation Solar Installations Industrial Storm Restoration EPC Commercial Smart Grid.jpgSmart Grid Company Overview ¦ Market Overview ¦ Strategy ¦ Financial Performance ¦ Investment Outlook ¦ App
Slide 22: MYR Group Customer Sample
MYR GROUP CUSTOMER SAMPLE \\myr-san1b\users\abecker\My Pictures\Logo's\logo_ameren.jpg\\myr-san1b\users\abecker\My Pictures\Logo's\Centerpoint.jpg\\myr-san1b\users\abecker\My Pictures\Logo's\fab9cb60-d48d-412d-ac7b-85df7648c066.jpg\\myr-san1b\users\abecker\My Pictures\Logo's\Central_Maine_Power_2011
Slide 23: Emergency Response Revenue
EMERGENCY RESPONSE REVENUE G:\Shared\Accounting\Pictures\Photos\hurricane Rita Harlan.jpg$31 $24 $10 $43 $16 $14 $31 $41 $15 $0$10$20$30$40$50200520062007200820092010201120122013MillionsStorm RevenueStorm RevenueAverage $25.0MM 2005 – Katrina 2008 – Gustav 2008 – Ike 2011 – Irene 2011 – NE Snowstorm
Slide 24: EBITDA Reconciliation
EBITDA RECONCILIATION $2.46 $1.97 $2.05 $2.34 $3.80 $3.96 $- $1.0 $2.0 $3.0 $4.0 $5.0200820092010201120122013EBITDA / Diluted Share Strong EBITDA Growth •Successful execution of organic growth strategy Company Overview ¦ Market Overview ¦ Strategy ¦ Financial Performance ¦ Investment Outlook ¦ Appen
Slide 25: EBITDA Reconciliation
EBITDA RECONCILIATION $2.46 $1.97 $2.05 $2.34 $3.80 $3.96 $- $1.0 $2.0 $3.0 $4.0 $5.0200820092010201120122013EBITDA / Diluted Share Strong EBITDA Growth •Successful execution of organic growth strategy Company Overview ¦ Market Overview ¦ Strategy ¦ Financial Performance ¦ Investment Outlook ¦ Appen
Slide 26: Financial Ratio Definitions
FINANCIAL RATIO DEFINITIONS Company Overview ¦ Market Overview ¦ Strategy ¦ Financial Performance ¦ Investment Outlook ¦ Appendix ¦ Page 26 S&P Capital IQ Disclaimer of Liability Notice. This may contain information obtained from third parties, including ratings from credit ratings agencies such as