Myr Group, Inc. · NASDAQ:MYRG
Myr — Investor Presentation (November 2020)
29 slides from Myr's investor presentation, Nov 3, 2020
Slide 1: Investor Presentation Q3 2020 - November 2020 Update
INVESTOR PRESENTATION Q3 2020 NOVEMBER 2020 Update | NASDAQ: MYRG
Slide 2: MYR Group's strategy of conservative, profitable, steady growth
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. 2
Slide 3: Safe Harbor Statement
SAFE HARBOR STATEMENT 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 projec
Slide 4: Table of Contents
TABLE OF CONTENTS Company Overview Strategy Market Overview Financial Performance Investment Outlook Appendix 4 Investor Presentation │ NOVEMBER │ ©2020 MYR GROUP INC.
Slide 5: For more than a century, MYR Group's subsidiaries have served electrical construction needs
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. 5 Investor Presentation │ NOVEMBER │ ©2020 MYR GROUP INC.
Slide 6: A Market Leader
A MARKET LEADER NATIONWIDE EXPANDING HEALTHY ORGANIC & LEADER in T&D PRESENCE in C&I GROWING FOOTPRINT ACQUISITIVE GROWTH STRONG PRESENCE IN LONG STANDING KEY GROWTH MARKETS CLIENT RELATIONSHIPS GROWING REVENUES RECORD BACKLOG EXTENSIVE, STABLE NO EXTRAORDINARY SUPERIOR SAFETY CENTRALIZED FLEET BALA
Slide 7: Strategic Imperatives
STRATEGIC IMPERATIVES Deliver positive financial Sustain a culture that aids results on a consistent basis in attracting, retaining and while positioning the developing the best company for growth people in the industry FINANCIAL ORGANIZATIONAL STRENGTH EXCELLENCE CUSTOMER OPERATIONAL SATISFACTION E
Slide 8: COVID-19 Impacts
COVID-19 IMPACTS • 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- line field employees. • Enacted measu
Slide 9: COVID-19 Impacts
COVID-19 IMPACTS 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, the Company is closely monitoring the impact of the COVID-19 pandemic on all aspects of our business, includi
Slide 10: $2.21B 2020 Q3 LTM Revenue
$2.21B 2020 Q3 LTM REVENUE GROWTH Revenue $2.07B 2019 $1.53B For more than a century, 2018 MYR Group’s subsidiaries have $1.40B served the electrical construction 2017 needs of clients. Our $1.14B reputation for excellence in 2016 both our markets makes us a $1.06B 2015 leader in the industry. $944M
Slide 11: Transmission & Distribution Business Segment
COMPREHENSIVE SERVICE OFFERINGS TRANSMISSION & DISTRIBUTION (T&D) BUSINESS SEGMENT T&D Revenue T&D Revenue 9.4% CAGR Transmission up to 765kV Substations $1,400 $1,200 $1,134 $1,147 $879 $893 $1,000 $819 $800 Millions $600 $400 $200 Overhead and Underground $0 Renewables 2016 2017 2018 2019 2020 Q3
Slide 12: Commercial & Industrial Business Segment
COMPREHENSIVE SERVICE OFFERINGS COMMERCIAL & INDUSTRIAL (C&I) BUSINESS SEGMENT C&I Revenue C&I Revenue 37.3% CAGR Commercial Industrial $1,200 $1,064 $1,000 $937 $800 $638 Millions $600 $524 $324 $400 $200 $0 Telecommunications Renewables 2016 2017 2018 2019 2020 Q3 LTM Segment Updates: ● 09/30/20 L
Slide 13: Strong Competitive Advantage
STRONG COMPETITIVE ADVANTAGE Helping our people reach their WE ARE… fullest potential through investments in training and development Extending our geographical reach and expanding our Building a future driven mindset service offerings and deploying new systems and technologies Inspired to do the ri
Slide 14: Positioned for Growth
POSITIONED FOR GROWTH U.S./CANADA T&D C&I RENEWABLES Long-term growth Transmission market outlook Strength in C&I sector Clean energy initiatives both organically and strong next 5+ years (higher ratio (Airport, Healthcare, Data driving increased via acquisition of small-medium/large projects) Cente
Slide 15: Value Creation Opportunities
VALUE CREATION OPPORTUNITIES 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 custome
Slide 16: July 2019 Acquisition: CSI Electrical Contractors
JULY 2019 ACQUISITION CSI ELECTRICAL CONTRACTORS, INC. Expands Geographic Reach Expands Service Offerings Increases Skilled Workforce & End Market Exposure • Expands our breadth of C&I service • Offers a wide range of commercial • High-quality workforce and offerings in California and and industrial
Slide 17: Favorable T&D Market Conditions
FAVORABLE T&D MARKET CONDITIONS U.S. and Canadian Electric Distribution Actual and Forecasted There may be delays on some spending Capital Expenditures by Ownership Type due to COVID‐19 which could impact previously reported projections, however market drivers remain favorable for the long‐term. Dri
Slide 18: Market Opportunities
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. UTILITY SOLAR In Q2, the U.S. solar market installed 3.5GW of PV, 70% of which comprised of utility-sc
Slide 19: Active C&I Market
ACTIVE C&I MARKET C&I’s strong $973.0M backlog as of 09/30/2020 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 vulnerable to economic slowdown • The primar
Slide 20: Delivering Strong Returns
DELIVERING STRONG RETURNS Dividend Adjusted Stock Return (01/04/2016 ‐ 10/30/2020) MYRG Div. Adj. Return EME Div. Adj. Return PWR Div. Adj. Return MTZ Div. Adj. Return DY Div. Adj. Return 350.0% Dividend Adjusted Stock Return 300.0% Stock Price as of: MYRG EME PWR MTZ DY 1/4/2016 $ 20.36 $ 45.14 $ 2
Slide 21: Balance Sheet Strength to Support Additional Growth
BALANCE SHEET STRENGTH TO SUPPORT ADDITIONAL GROWTH CAPEX Investment Little off‐balance‐sheet leverage CAPEX Spend CAPEX % of Rev $80 10.0% Limited goodwill $57.8 8.0% Modest debt leverage Millions $60 $50.7 $45.9 6.0% Strong liquidity position – Renewed credit facility in Q3 2019, $40 increasing th
Slide 22: Strong Long-Term Financial Performance
STRONG LONG-TERM FINANCIAL PERFORMANCE Revenue by Work Type Backlog Backlog > 12 Mo 12 Mo. Backlog 31.4% CAGR Trans. Dist. C&I 19.2% CAGR $2.00 $1.80 $1.72 $2,500 $1.54 $1.55 $2,210 $1.60 $1.50 $2,071 Billions $1.37 $2,000 $1.40 $1.16 $1,531 $1.10 $1.15$1.14 $1,403 $1.20 Millions $0.96 $1.01 $1,500
Slide 23: Investment Outlook
INVESTMENT OUTLOOK Proven Strategy Execution Experienced Solid execution of corporate Management strategy has solidified MYR Group’s Executive Management position as a market leader in large average 31+ years of industry transmission line construction experience Positive Industry Outlook Favorable G
Slide 24: Corporate Governance Overview
CORPORATE GOVERNANCE OVERVIEW DIVERSE AND EXPERIENCED BOARD WITH INDEPENDENT OVERSIGHT • 7 of 9 directors are independent • 3 of 7 independent directors are diverse • 5 of 9 directors have significant energy / utility experience • Independent Chairman of the Board • Audit, Compensation and Nominatin
Slide 25: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Rick Swartz Betty Johnson Tod Cooper Chief Executive Officer Chief Financial Officer Chief Operating Officer – 38 years with MYRG 20 years with MYRG Transmission & Distribution 38 years in industry 31 years in industry 29 years with MYRG 31 years in industry EXPERIENCED M
Slide 26: Appendix
APPENDIX 26
Slide 27: MYR Group Customer Sample
MYR GROUP CUSTOMER SAMPLE 27 Investor Presentation │ NOVEMBER │ ©2020 MYR GROUP INC.
Slide 28: EBITDA Reconciliation
EBITDA RECONCILIATION ($ In Millions, Except Per Share Amounts)* LTM 2016 2017 2018 2019 9/30/2020 Net Income$ 21.4 $ 21.2 $ 31.3 $ 36.2 $ 53.4 Interest Expense, net 1.3 2.6 3.6 6.2 $ 5.7 Income Tax Expense 16.9 3.5 11.8 14.2 $ 21.0 Depreciation and Amortization 39.2 38.6 39.9 44.5 $ 46.5 EBITDA$ 78
Slide 29: Financial Ratio Definitions
FINANCIAL RATIO S&P Capital IQ Disclaimer of Liability Notice DEFINITIONS 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