Myr Group, Inc. · NASDAQ:MYRG
Myr — Investor Presentation (March 2024)
21 slides from Myr's investor presentation, Mar 5, 2024
Slide 1: Investor Presentation Q4 | March 2024
1 INVESTOR PRESENTATION Q 4 | M A R C H 2 0 2 4 | N A S D A Q : M Y R G
Slide 2: Safe Harbor Notice: Forward-Looking Statements
2 Various statements in this announcement, 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 projections and estimates concerning the timing and suc
Slide 3: MYR Group Inc. - A Market Leader in Electrical Construction
3 QUALITY SOLUTIONS FOR INCREASED ELECTRIFICATION 65+ OFFICE LOCATIONS MYR Group Inc. is a holding company of subsidiaries that have delivered some of the largest and most notable electrical infrastructure and commercial and industrial projects throughout the United States and Canada, since 1891. MY
Slide 4: Record revenue in 2023, up 21% from 2022
4 Achieved record revenue in 2023, up 21% from 2022 $3.64B 2023 $1.53B 2018 $2.07B 2019 $2.25B 2020 $3.01B 2022 RANKED AMONG TOP 5 U.S. SPECIALTY ELECTRICAL CONTRACTORS 28 YEARS IN A ROW $2.50B 2021 CAGR 18.9%
Slide 5: Business and segment highlights
5 • T&D work activity primarily consists of small to medium-sized projects, with some larger transmission, High Voltage Direct Current (HVDC) and utility-scale solar projects. We continue to execute routine maintenance work under long-term Master Services Agreements (MSAs). Strong, long- term driver
Slide 6: Business Segment Update: Transmission & Distribution (T&D)
6 • Record T&D full-year revenue of $2.09 billion • Strong $960M T&D segment backlog as of December 31, 2023 • Strong, long-standing relationships with a diverse customer base where approx. 50% of business is performed under Master Service Agreements • Acquired the Powerline Plus Companies in Januar
Slide 7: T&D Market Outlook: Strong Long-Term Drivers
7Source: The C Three Group, North American Electric Distribution Market Forecast, October 2023 “Overall, distribution spend increased 7% in 2022 over 2021. Investor-owned utility spend increased by 9.1%.” U.S. and Canadian Electric Distribution Actual and Forecasted Capital Expenditures STRONG LONG-
Slide 8: Business Segment Update: Commercial & Industrial (C&I)
8 • Record C&I full-year revenue of $1.55 billion • Strong $1.55B C&I segment backlog as of December 31, 2023 • Growth in our core markets is driven by increasing investments in data centers, transportation, clean energy, and healthcare, as well as reshoring of manufacturing, and we remain well dive
Slide 9: C&I Market Outlook and Core Markets
9 Healthcare Data Centers Airport Projects Transportation Clean Energy & EV Charging E-Commerce Water/Wastewater Facilities Industrial Facilities MYR GROUP CORE C&I MARKETS ACTIVE MARKET DRIVERS C&I MARKET OUTLOOK • Infrastructure Investment and Jobs Act funding is expected to continue driving growt
Slide 10: Clean Energy Generation Mix Driving Market Opportunities
10 CLEAN ENERGY GENERATION MIX DRIVING MARKET OPPORTUNITIES FOR BOTH T&D AND C&I Federal Tax Credits Renewable Portfolio Standards Carbon Policy State Tax Incentives Clean Power Portfolios Customer Demand for Clean Power CLEAN ENERGY DRIVERS UTILITY-SCALE SOLAR SOURCE: SEIA/Wood Mackenzie Power & Re
Slide 11: Clean Energy Transformation Partner
11 We don’t just create connections that empower people – we create connections that help our partners achieve their energy goals. CLEAN ENERGY TRANSFORMATION PARTNER
Slide 12: Strong Market Coupled with Our Competitive Edge
12 STRONG MARKET COUPLED WITH OUR COMPETITIVE EDGE POSITIONS MYR GROUP FOR CONTINUED GROWTH Healthy organic and acquisitive growth Proven execution of corporate strategy Strong financial position Centralized operations for greater efficiency and cross-collaboration Strong presence in key markets wit
Slide 13: Building a Sustainable Future with Corporate Responsibility
13 BUILDING A SUSTAINABLE FUTURE WITH CORPORATE RESPONSIBILITY VIEW REPORT Policy & Guidance Established corporate policies Promote honest and ethical conduct Develop employee awareness and compliance Equity & Inclusion 38% racially/ethnically/gender diverse Board of Directors Established Veteran Em
Slide 14: Delivering Strong Returns
14 DELIVERING STRONG RETURNS DIVIDEND ADJUSTED STOCK RETURN MYRG - CAGR 38.57% EME - CAGR 30.04% PWR - CAGR 49.02% MTZ - CAGR 13.14% DY - CAGR 15.94% -200.0% -100.0% 0.0% 100.0% 200.0% 300.0% 400.0% 500.0% 600.0% 700.0% Dividend Adjusted Stock Return (01/02/2019 - 12/29/2023) MYRG Div. Adj. Return E
Slide 15: Q4 2023 Highlights and Full-Year Financial Overview
15 Q4 2023 HIGHLIGHTS $24.0M Net Income or $1.43 Per Diluted Share $2.51B Backlog $1.00B Revenue Record High Our financial performance illustrates the overall strength of our core markets, the continued demand and investment in electrical infrastructure, which is bringing steady opportunities for ou
Slide 16: Capex, ROIC and Liquidity
16 $50.7 $57.8 $44.4 $52.4 $77.1 $84.7 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% $0 $20 $40 $60 $80 $100 2018 2019 2020 2021 2022 2023 M ill io n s CAPEX Investment CAPEX Spend CAPEX % of Rev 31.4% 18.3% 12.3% 10.6% 7.2% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% EME MYRG DY PWR MTZ 3-Year Average ROIC $(25
Slide 17: Financial Performance: Revenue, Backlog, EBITDA, EPS
17 $1,531 $2,071 $2,247 $2,498 $3,009 $3,644 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 2018 2019 2020 2021 2022 2023 M ill io n s Revenue by Work Type Trans. Dist. C&I 18.9% CAGR $1,147 $1,499 $1,649 $1,789 $2,502 $2,512 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 4 4 4 4 4 4 2018 2019
Slide 18: Executive Leadership
18 EXECUTIVE LEADERSHIP Rick Swartz, CEO MYRG: 41 years Industry: 41 years 19 YEARS EXECUTIVES AVERAGE: WITH MYR GROUP Effective February 24, 2023 MYR Group Inc. has a strong team of experienced leaders that make up our executive team and Board of Directors. We believe diversity of our leadership is
Slide 19: Growth Strategy and Capital Returns
19 ORGANIC GROWTH Expand in new and existing markets that align with core capabilities STRATEGIC ACQUISITIONS Evaluate opportunities to expand and hone business expertise PRUDENT CAPITAL RETURNS Opportunistically repurchase shares Authorized $75M share repurchase program on November 1, 2023 Expires
Slide 20: Non-GAAP Reconciliation
20 Note: LTM diluted weighted average shares outstanding were determined by adding the average shares reported for the last four quarters 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 performance or to net
Slide 21: ROIC Calculation and S&P Capital IQ Disclaimer
21NOTE: Images used throughout this presentation may have been taken before COVID. Net Income (LTM) [A] +[(Net Interest Expense + Amortization of Intangibles)* (1-Effective Tax Rate)] ÷ [Book Value (Total Stockholders' Equity [B]) + Net Funded Debt] @ beginning and ending period average = Return on