Myr Group, Inc. · NASDAQ:MYRG
Myr — Investor Presentation (December 2016)
32 slides from Myr's investor presentation, Dec 2, 2016
Slide 1: Investor Presentation Third Quarter 2016
INVESTOR PRESENTATION 20 16 Third Quarter Nasdaq: MYRG
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
Company Overview Strategy Market Overview Financial Performance Investment Outlook Appendix │ Page 3 Investor Presentation │ November │ © 2016MYRGROUPINC . TABLE OF CONTENTS Company Overview │ Strategy │ Market Overview │ Financial Performance │ Investment Outlook │ Appendix
Slide 4: MYR: A Market Leader Positioned for Growth
│ Page 4 Investor Presentation │ November │ ©2016MYRGROUPINC. MYR: A MARKET LEADER POSITIONED FOR GROWTH Strong Market Position x Leader in Transmission & Distribution (T&D) – national x Growing presence in Commercial and Industrial (C&I) – regional x Broad geographic footprint with a strong presenc
Slide 5: Comprehensive North American Service Offerings
Transmission & Distribution T&D Commercial & Industrial C&I │ Page 5 • Transmission up to 765kV • Overhead Distribution • Underground Distribution • Foundations & Caissons • Directional Boring • Substation & Collector Systems • EPC Services • PCS / Cellular Towers • Emergency Storm Response • Fiber
Slide 6: Future Growth and Value Creation Opportunities
Leverage MYR’s market leading position and three - pronged approach to deliver higher growth and higher value │ Page 6 Investor Presentation │ November │ ©2016MYRGROUPINC. FUTURE GROWTH AND VALUE CREATION OPPORTUNITIES Organic Growth Strategic Acquisitions Prudent Capital Return Expand in new and ex
Slide 7: MYR North American Coverage
MYR Group’s Strong Competitive Advantage x A dded 16 new locations from 2015 - 2016, including 8 locations added through three acquisitions x Modern fleet reduces downtime and protects our competitive edge x Centrally managed fleet allows for greater utilization and leverage of resources to effectiv
Slide 8: Executing on MYR's Capital Return Strategy
│ Page 8 • As of July 12, 2016, a total of 6,024,978 shares were repurchased at an average price of $23.64 per share exhausting the remaining availability under the Repurchase Program. • On July 28, 2016 the Board approved an extension of the Repurchase Program to August 15, 2017 and authorized and
Slide 9: 2015-2016 Acquisitions
│ Page 9 Investor Presentation │ November │ ©2016MYRGROUPINC. Geographic Expansion Enhance End Market Exposure Service Offering Expansion Grow Skilled Workforce 2015 - 2016 ACQUISITIONS Company Overview │ Strategy │ Market Overview │ Financial Performance │ Investment Outlook │ Appendix • Expands pr
Slide 10: T&D Market Conditions Remain Favorable
│ Page 10 Source: U.S. Department of Energy | August 2015 Transmission Data Review Miles of Planned Transmission Lines Expected to be completed by 2019 “Planned […] refers to projects where: (a ) Permits have been approved (b ) A design is complete, or (c ) The project is necessary to meet a regulat
Slide 11: T&D Market Conditions Remain Favorable
│ Page 11 Source: The C Three Group, 2016 North American Electric Distribution Market Forecast 2008 - 2020, September 2016 Historical and Projected Transmission Investment (Nominal Dollars) Source: EEI Actual and Planned Transmission Investments By Investor - Owned Utilities (2009 - 2018) Oct. 2015
Slide 12: C&I Market Is Growing
Dodge Momentum Index – by McGraw - Hill Construction - 12 month leading indicator of construction spending for nonresidential building - 91% correlation between construction planning reports and the US Commerce Department’s Put in Place spending over the past 10 years Dodge Momentum Index The Dodge
Slide 13: Strong Long-Term Financial Performance
│ Page 13 Investor Presentation │ November │ ©2016MYRGROUPINC. STRONG LONG - TERM FINANCIAL PERFORMANCE Company Overview │ Strategy │ Market Overview │ Financial Performance │ Investment Outlook │ Appendix $597 $780 $999 $903 $944 $1,062 $1,070 $- $200 $400 $600 $800 $1,000 $1,200 2010 2011 2012 201
Slide 14: Investment in CAPEX Supported Growth Initiatives
Source : S&P Capital IQ │ Page 14 Investor Presentation │ November │ ©2016MYRGROUPINC. Three - pronged approach to capital allocation – including investing in organic growth, strategic acquisitions and capital returns – has driven strong financial performance Successful Execution of Strategy Expects
Slide 15: Balance Sheet Strength to Support Additional Growth and Share Repurchases
• Little off - balance - sheet leverage • Limited goodwill • Modest Debt Leverage • Strong liquidity position • Substantial bonding capacity │ Page 15 Investor Presentation │ November │ ©2016MYRGROUPINC. BALANCE SHEET STRENGTH TO SUPPORT ADDITIONAL GROWTH AND SHARE REPURCHASES Company Overview │ Str
Slide 16: Peer Group Segment Information
PEER GROUP SEGMENT INFORMATION Source : S&P Capital IQ | LTM 2016 │ Page 16 Investor Presentation │ November │ © 2016MYRGROUPINC . Company Overview │ Strategy │ Market Overview │ Financial Performance │ Investment Outlook │ Appendix MYR Group Quanta Willbros MasTec EMCOR ($ in Millions) LTM Revenue
Slide 17: Peer Group Performance Comparison
│ Page 17 Revenue growth includes expansion into new geographic territories, through organic and acquisition growth – see new locations on page 7 Since going public in August 2008, MYR has had no loss quarters, goodwill impairment charges or extraordinary losses Investor Presentation │ November │ ©2
Slide 18: Three-Pronged Strategy Has Resulted in Strong Financial Metrics
Source : S&P Capital IQ - NM (Not Meaningful) reflects negative returns and is ignored for comparison purposes. 3 year average is from September 2014 – September 2016 │ Page 18 Good, consistent steward of capital MYR continues to be a top performer with respect to return on investment metrics Invest
Slide 19: Delivering Strong Returns
│ Page 19 Investor Presentation │ November │ ©2016MYRGROUPINC. DELIVERING STRONG RETURNS Company Overview │ Strategy │ Market Overview │ Financial Performance │ Investment Outlook │ Appendix • MYR closed on its 144A private placement in December 2007; approximately 17.8 million shares of stock were
Slide 20: 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 32 years of industry experience Experienced Management • Regulatory environment supports growth and numerous
Slide 21: Appendix
Appendix │ Page 21 Investor Presentation │ November │ ©2016MYRGROUPINC. Company Overview │ Strategy │ Market Overview │ Financial Performance │ Investment Outlook │ Appendix
Slide 22: Corporate Governance Overview
│ Page 22 Investor Presentation │ November │ ©2016MYRGROUPINC. CORPORATE GOVERNANCE OVERVIEW EXPERIENCED BOARD WITH INDEPENDENT OVERSIGHT STRONG CORPORATE GOVERNANCE PRACTICES ▪ 9 of 10 Directors are independent ▪ 6 of 10 Directors have significant energy / utility experience ▪ Robust lead independe
Slide 23: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Experienced management team that averages more than 22 years with MYR Group and approximately 32 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 Renewables Distribution Traffic Signalization Telecommunications Substation Foundations Industrial Storm Restoration EPC Commercial Smart Grid │ Page 24 Investor Presentation │ November │ ©2016MYRGROUPINC. Company Overview │ Strategy │ Market Overview │ Financial Perf
Slide 25: MYR Group Customer Sample
MYR GROUP CUSTOMER SAMPLE │ Page 25 Investor Presentation │ November │ ©2016MYRGROUPINC. Company Overview │ Strategy │ Market Overview │ Financial Performance │ Investment Outlook │ Appendix
Slide 26: Emergency Response Revenue
$31 $24 $10 $43 $16 $14 $31 $41 $15 $13 $8 $5 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD Millions Storm Revenue Storm Revenue Average $20.9MM EMERGENCY RESPONSE REVENUE 2005 – Katrina 2008 – Gustav 2008 – Ike 2011 – Irene 2011 – NE Snows
Slide 27: EBITDA Reconciliation
EBITDA RECONCILIATION │ Page 27 Investor Presentation │ November │ ©2016MYRGROUPINC. Company Overview │ Strategy │ Market Overview │ Financial Performance │ Investment Outlook │ Appendix ($ In Millions, Except Per Share Amounts)* FY LTM 2010 2011 2012 2013 2014 2015 9/30/2016 9/30/2015 Net Income 16
Slide 28: Financial Ratio Definitions
FINANCIAL RATIO DEFINITIONS │ 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 Standard & Poor’s. Reproduction and distribution of third party content in any form is prohibited exc
Slide 29: Peer Group Segment Information Exhibit
PEER GROUP SEGMENT INFORMATION EXHIBIT │ Page 29 Investor Presentation │ November │ ©2016MYRGROUPINC. NOTE: Presentation groupings were created for comparison purpose of similar market segments. However, all companies do not classify their markets consistently. Please reference the following appendi
Slide 30: Peer Group Segment Descriptions: MYR Group
PEER GROUP SEGMENT DESCRIPTIONS │ Page 30 MYR GROUP 10. Segment Information MYR Group is a specialty contractor serving the electrical infrastructure market in the United States and parts of Canada. The Co mpa ny has two reporting segments, each a separate operating segment, which are referred to as
Slide 31: Peer Group Segment Descriptions: Willbros
PEER GROUP SEGMENT DESCRIPTIONS │ Page 31 Willbros Business Segments Willbros has three operating segments: Oil & Gas , Utility T&D and Canada . Our segments are comprised of strategic businesses that are defined by the industries or geographic regions they serve. Eac h i s managed as an operation w
Slide 32: Peer Group Segment Descriptions: EMCOR
PEER GROUP SEGMENT DESCRIPTIONS │ Page 32 Investor Presentation │ November │ ©2016MYRGROUPINC. EMECOR NOTE 13 Segment Information We have the following reportable segments which provide services associated with the design, integration, installation, start - up , operation and maintenance of various