Authorization

MYR Group Inc. Announces First-Quarter 2019 Results

ROLLING MEADOWS, Ill., May 01, 2019 (GLOBE NEWSWIRE) -- MYR Group Inc. (a??MYRa??) (NASDAQ: MYRG), a holding company of leading specialty contractors serving the electric utility infrastructure, commercial and industrial construction markets in the United States and western Canada, today announced its first-quarter 2019 financial results.
Highlights

Record first quarter revenues of $468.1 million



First quarter net income attributable to MYR of $7.4 million, or $0.44 per diluted share



Backlog of $1.14 billion

Management Comments
Rick Swartz, MYRa??s President and CEO, said a??Our first quarter 2019 financial results included $468.1 million of revenues, a 35.4% increase over the first quarter of 2018, marking another record-high revenue quarter for MYR. We had a solid start in 2019 due to our strong market position, diverse mix of project types, an active bidding climate, and a large array of opportunities.a??First Quarter Results
MYR reported first-quarter 2019 revenues of $468.1 million, an increase of $122.5 million, or 35.4 percent, compared to the first quarter of 2018. Specifically, the T&D segment reported record high revenues of $272.5 million, an increase of $56.1 million, or 26.0 percent, from the first quarter of 2018, primarily due to increased volume on transmission projects. The C&I segment reported record high revenues of $195.5 million, an increase of $66.3 million, or 51.3 percent, from the first quarter of 2018, primarily due to increases in volume across both our T&D and C&I segments and incremental revenues from the Huen Companies, which was acquired in the third quarter of 2018.Consolidated gross profit increased to $42.9 million in the first quarter of 2019, a $7.1 million or 19.9 percent increase from the first quarter of 2018. The increase in gross profit was due to higher revenues, partially offset by lower margins. Gross margin was 9.2 percent for the first quarter of 2019 compared to 10.3 percent for the first quarter of 2018. The decrease in gross margin was primarily due to inclement weather on certain projects and inefficiencies related to unanticipated overtime and material delays associated with a joint venture project in which we own the majority controlling interest, which were partially offset by net loss attributable to noncontrolling interest. The joint venture project is subject to margin guarantees, for which an offset is recognized in other income. Gross margin was also negatively impacted by an increase in non-reimbursable cost on a project. These margin decreases were partially offset by better than anticipated productivity on a project. Changes in estimates of gross profit on certain projects resulted in a gross margin decreases of 0.8 percent and 0.1 percent for the first quarter of 2019 and 2018, respectively.Selling, general and administrative expenses (a??SG&Aa??) increased to $33.0 million in the first quarter of 2019, compared to $28.3 million for the first quarter of 2018. The period-over-period increase was primarily due to the acquisition of the Huen Companies and higher employee related expenses to support operations. As a percentage of revenues, SG&A decreased to 7.0 percent for the first quarter of 2019 from 8.2 percent for the first quarter of 2018.Income tax expense was $2.5 million for the first quarter of 2019, with an effective tax rate of 27.8 percent, compared to tax expense of $2.3 million for the first quarter of 2018, with an effective tax rate of 28.9 percent. The decrease in the tax rate in the first quarter of 2019 was primarily due to state income taxes offset by the impact of our noncontrolling interest. Our inability to utilize losses experienced in certain Canadian operations negatively impacted the effective tax rate in the first quarter of 2018.For the first quarter of 2019, net income attributable to MYR Group Inc. was $7.4 million, or $0.44 per diluted share attributable to MYR Group Inc., compared to $5.6 million, or $0.34 per diluted share, for the same period of 2018. First-quarter 2019 EBITDA, a non-GAAP financial measure, was $20.9 million, or 4.5 percent of revenues, compared to $18.0 million, or 5.2 percent of revenues, in the first quarter of 2018.Backlog
As of March 31, 2019, MYR's backlog was $1.136 billion, compared to $1.147 billion as of December 31, 2018. As of March 31, 2019, T&D backlog was $473.6 million, and C&I backlog was $662.3 million. Total backlog at March 31, 2019 increased $177.4 million, or 18.5 percent, from the $958.5 million reported at March 31, 2018.Balance Sheet
As of March 31, 2019, MYR had $148.9 million of borrowing availability under its revolving credit facility.Non-GAAP Financial Measures
To supplement MYRa??s financial statements presented in accordance with generally accepted accounting principles in the United States (a??GAAPa??), MYR uses certain non-GAAP measures. Reconciliation to the nearest GAAP measures of all non-GAAP measures included in this press release can be found at the end of this release. MYRa??s definitions of these non-GAAP measures may differ from similarly titled measures used by others. These non-GAAP measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP.MYR believes that these non-GAAP measures are useful because they (i) provide both management and investors meaningful supplemental information regarding financial performance by excluding certain expenses and benefits that may not be indicative of recurring core business operating results, (ii) permit investors to view MYRa??s performance using the same tools that management uses to evaluate MYRa??s past performance, reportable business segments and prospects for future performance, (iii) publicly disclose results that are relevant to financial covenants included in MYRa??s credit facility and (iv) otherwise provide supplemental information that may be useful to investors in evaluating MYR.Conference Call
MYR will host a conference call to discuss its first-quarter 2019 results on Thursday, May 2, 2019, at 9:00 a.m. Central time. To participate in the conference call via telephone, please dial (877) 561-2750 (domestic) or (763) 416-8565 (international) at least five minutes prior to the start of the event. A replay of the conference call will be available through Thursday, May 9, 2019, at 1:00 P.M. Eastern time, by dialing (855) 859-2056 or (404) 537-3406, and entering conference ID 5690388. MYR will also broadcast the conference call live via the internet. Interested parties may access the webcast through the Investor Relations section of MYR's website at www.myrgroup.com. Please access the website at least 15 minutes prior to the start of the call to register, download and install any necessary audio software. The webcast will be available until Thursday, May 9, 2019, at 1:00 P.M. Eastern time.About MYR
MYR is a holding company of leading specialty contractors serving the electric utility infrastructure, commercial and industrial construction markets throughout the United States and western Canada who have the experience and expertise to complete electrical installations of any type and size. Their comprehensive services on electric transmission and distribution networks and substation facilities include design, engineering, procurement, construction, upgrade, maintenance and repair services. Transmission and distribution customers include investor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners and other contractors. Commercial and industrial electrical contracting services are provided to general contractors, commercial and industrial facility owners, local governments and developers generally throughout the United States and western Canada. For more information, visit myrgroup.com.Forward-Looking Statements
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 success of specific projects and our future production, revenue, income, capital spending, segment improvements and investments. Forward-looking statements are generally accompanied by words such as a??anticipate,a?? a??believe,a?? a??encouraged,a?? a??estimate,a?? a??expect,a?? a??intend,a?? a??likely,a?? a??may,a?? a??objective,a?? a??outlook,a?? a??plan,a?? a??possible,a?? a??potential,a?? a??project,a?? a??remain confident,a?? a??shoulda?? a??unlikely,a?? or other words that convey the uncertainty of future events or outcomes. The forward-looking statements in this announcement speak only as of the date of this announcement. We disclaim any obligation to update these statements (unless required by securities laws), and we caution you not to rely on them unduly. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. No forward-looking statement can be guaranteed and actual results may differ materially from those projected. Forward-looking statements in this announcement should be evaluated together with the many uncertainties that affect MYR's business, particularly those mentioned in the risk factors and cautionary statements in Item 1A of MYR's Annual Report on Form 10-K for the fiscal year ended December 31, 2018, and in any risk factors or cautionary statements contained in MYR's subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.MYR Group Inc. Contact:
Betty R. Johnson, Chief Financial Officer, 847-290-1891, investorinfo@myrgroup.comInvestor Contact:
Steve Carr, Dresner Corporate Services, 312-780-7211, scarr@dresnerco.comFinancial tables followa?

A



A



MYR GROUP INC.
Consolidated Balance Sheets
As of March 31, 2019and December 31, 2018



A



A



A



A



A



A



A



March 31,



A



December 31,



A



(In thousands, except share and per share data)



A



A2019



A



A



A



2018



A



A



A



(unaudited)



A



A



A



ASSETS



A



A



A



A



Current assets:



A



A



A



A



Cash and cash equivalents



$



A 1,338



A



A



$



A 7,507



A



A



Accounts receivable, net of allowances of $2,020 and $1,331, respectively



A



A 297,967



A



A



A



A 288,427



A



A



Contract assets



A



A 188,069



A



A



A



A 160,281



A



A



Current portion of receivable for insurance claims in excess of deductiblesA



A



A 10,003



A



A



A



A 10,572



A



A



Other current assetsA



A



A 8,379



A



A



A



A 8,847



A



A



Total current assetsA



A



A 505,756



A



A



A



A 475,634



A



A



Property and equipment, net of accumulated depreciation of $260,743 and $253,495, respectively



A



A 162,565



A



A



A



A 161,892



A



A



Operating lease right-of-use assets



A



A 16,266



A



A



A



A a??



A



A



GoodwillA



A



A 56,592



A



A



A



A 56,588



A



A



Intangible assets, net of accumulated amortization of $7,765 and $7,031, respectively



A



A 32,542



A



A



A



A 33,266



A



A



Receivable for insurance claims in excess of deductiblesA



A



A 16,564



A



A



A



A 17,173



A



A



Investment in joint ventures



A



A 2,342



A



A



A



A 1,324



A



A



Other assetsA



A



A 2,591



A



A



A



A 2,878



A



A



Total assetsA



$



A 795,218



A



A



$



A 748,755



A



A



A



A



A



A



A



LIABILITIES AND STOCKHOLDERS' EQUITY



A



A



A



A



Current liabilities:



A



A



A



A



Current portion of long-term debt



$



A 3,742



A



A



$



A 3,681



A



A



Current portion of operating lease obligations



A



A 4,401



A



A



A



A a??



A



A



Current portion of finance lease obligations



A



A 1,127



A



A



A



A 1,119



A



A



Accounts payableA



A



A 170,352



A



A



A



A 139,480



A



A



Contract liabilities



A



A 28,519



A



A



A



A 58,534



A



A



Current portion of accrued self-insurance



A



A 20,901



A



A



A



A 19,633



A



A



Income taxes payable, netA



A



A 3,109



A



A



A



A a??



A



A



Other current liabilitiesA



A



A 61,409



A



A



A



A 61,358



A



A



Total current liabilitiesA



A



A 293,560



A



A



A



A 283,805



A



A



Deferred income tax liabilitiesA



A



A 17,052



A



A



A



A 17,398



A



A



Long-term debt



A



A 106,204



A



A



A



A 86,111



A



A



Accrued self-insurance



A



A 32,561



A



A



A



A 34,406



A



A



Operating lease obligations, net of current maturities



A



A 11,600



A



A



A



A a??



A



A



Finance lease obligations, net of current maturities



A



A 1,275



A



A



A



A 1,514



A



A



Other liabilitiesA



A



A 1,492



A



A



A



A 1,057



A



A



Total liabilitiesA



A



A 463,744



A



A



A



A 424,291



A



A



Commitments and contingencies



A



A



A



A



Stockholdersa?? equity:



A



A



A



A



Preferred stocka??$0.01 par value per share; 4,000,000 authorized shares;



A



A



A



A



none issued and outstanding at March 31, 2019 and December 31, 2018



A



A a??



A



A



A



A a??



A



A



Common stocka??$0.01 par value per share; 100,000,000 authorized shares;



A



A



A



A



16,610,032 and 16,564,961 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively



A



A 177



A



A



A



A 165



A



A



Additional paid-in capitalA



A



A 148,938



A



A



A



A 148,276



A



A



Accumulated other comprehensive loss



A



A (270



)



A



A



A (193



)



A



Retained earnings



A



A 181,882



A



A



A



A 174,736



A



A



Total stockholders' equity attributable to MYR Group Inc.



A



A 330,727



A



A



A



A 322,984



A



A



Noncontrolling interest



A



A 747



A



A



A



A 1,480



A



A



Total stockholdersa?? equityA



A



A 331,474



A



A



A



A 324,464



A



A



Total liabilities and stockholdersa?? equityA



$



A 795,218



A



A



$



A 748,755



A



A



A



A



A



A



A



A



A



A



A



A




A



MYR GROUP INC.
Unaudited Consolidated Statements of Operations and Comprehensive Income
Three Months Ended March 31, 2019 and 2018



A



A



A



Three months ended



A



AMarch 31,A



(In thousands, except per share data)



A



A



2019



A



A



A



2018



A



A



A



A



A



A



Contract revenuesA



A



$



A 468,094



A



A



$



A 345,611



A



Contract costsA



A



A



A 425,218



A



A



A



A 309,858



A



Gross profitA



A



A



A 42,876



A



A



A



A 35,753



A



Selling, general and administrative expensesA



A



A



A 32,987



A



A



A



A 28,280



A



Amortization of intangible assetsA



A



A



A 734



A



A



A



A 117



A



Gain on sale of property and equipmentA



A



A



A (471



)



A



A



A (1,051



)



Income from operationsA



A



A



A 9,626



A



A



A



A 8,407



A



Other income (expense):



A



A



A



A



Interest expenseA



A



A



A (1,205



)



A



A



A (721



)



Other income, net



A



A



A 746



A



A



A



A 249



A



Income before provision for income taxesA



A



A



A 9,167



A



A



A



A 7,935



A



Income tax expense



A



A



A 2,547



A



A



A



A 2,291



A



Net income



A



A



A 6,620



A



A



A



A 5,644



A



Less: net loss attributable to noncontrolling interest



A



A



A (733



)



A



A



A a??



A



Net income attributable to MYR Group Inc.



A



$



A 7,353



A



A



$



A 5,644



A



Income per common share attributable to MYR Group Inc.:



A



A



A



A



a??BasicA



A



$



A 0.45



A



A



$



A 0.35



A



a??DilutedA



A



$



A 0.44



A



A



$



A 0.34



A



Weighted average number of common shares and potential common shares outstanding:



A



A



A



A



a??BasicA



A



A



A 16,514



A



A



A



A 16,321



A



a??DilutedA



A



A



A 16,658



A



A



A



A 16,520



A



A



A



A



A



A



Net income



A



$



A 6,620



A



A



$



A 5,644



A



Other comprehensive loss:



A



A



A



A



Foreign currency translation adjustment



A



A



A (77



)



A



A



A (17



)



Other comprehensive loss



A



A



A (77



)



A



A



A (17



)



Total comprehensive income



A



A



A 6,543



A



A



A



A 5,627



A



Less: net loss attributable to noncontrolling interest



A



A



A (733



)



A



A



A a??



A



Total comprehensive income attributable to MYR Group Inc.



A



$



A 7,276



A



A



$



A 5,627



A



A



A



A



A



A





A



MYR GROUP INC.
Unaudited Consolidated Statements of Cash Flows
Three Months Ended March 31, 2019 and 2018



A



A



Three months ended



AMarch 31,A



(In thousands)



A



A2019A



A



A



A



A2018A



A



A



A



A



A



ACash flows from operating activities:A



A



A



A



Net income



$



A 6,620



A



A



$



A 5,644



A



Adjustments to reconcile net income to net cash flows provided by (used in) operating activities:



A



A



A



Depreciation and amortization of property and equipment



A



A 9,815



A



A



A



A 9,275



A



Amortization of intangible assetsA



A



A 734



A



A



A



A 117



A



Stock-based compensation expense



A



A 951



A



A



A



A 420



A



Deferred income taxesA



A



A (315



)



A



A



A 48



A



Gain on sale of property and equipmentA



A



A (471



)



A



A



A (1,051



)



Other non-cash itemsA



A



A (56



)



A



A



A 702



A



Changes in operating assets and liabilities:



A



A



A



Accounts receivable, netA



A



A (9,380



)



A



A



A 23,663



A



Contract assets



A



A (27,615



)



A



A



A (12,753



)



Receivable for insurance claims in excess of deductiblesA



A



A 1,178



A



A



A



A (290



)



Other assetsA



A



A (849



)



A



A



A 1,405



A



Accounts payableA



A



A 38,220



A



A



A



A (3,765



)



Contract liabilitiesA



A



A (30,033



)



A



A



A (12,333



)



Accrued self insurance



A



A (580



)



A



A



A (857



)



Other liabilitiesA



A



A 3,576



A



A



A



A 11,808



A



Net cash flows provided by (used in) operating activities



A



A (8,205



)



A



A



A 22,033



A



ACash flows from investing activities:A



A



A



A



Proceeds from sale of property and equipmentA



A



A 832



A



A



A



A 1,074



A



Purchases of property and equipmentA



A



A (9,911



)



A



A



A (14,497



)



Net cash flows used in investing activities



A



A (9,079



)



A



A



A (13,423



)



ACash flows from financing activities:A



A



A



A



Net borrowings (repayments) under revolving lines of credit



A



A 21,609



A



A



A



A (11,578



)



Payment of principal obligations under equipment notes



A



A (1,455



)



A



A



A a??



A



Payment of principal obligations under capital leases



A



A (230



)



A



A



A (272



)



Proceeds from exercise of stock options



A



A 282



A



A



A



A 581



A



Repurchase of common shares



A



A (778



)



A



A



A (934



)



Other financing activities



A



A (8,364



)



A



A



A a??



A



Net cash flows provided by (used in) financing activities



A



A 11,064



A



A



A



A (12,203



)



Effect of exchange rate changes on cash



A



A 51



A



A



A



A (31



)



Net decrease in cash and cash equivalents



A



A (6,169



)



A



A



A (3,624



)



ACash and cash equivalents:A



A



A



A



Beginning of periodA



A



A 7,507



A



A



A



A 5,343



A



End of periodA



$



A 1,338



A



A



$



A 1,719



A



A



A



A



A




A



A



MYR GROUP INC.
Unaudited Consolidated Selected Data,
AUnaudited Performance Measure and Reconciliation of Non-GAAP Measure
Three and Twelve Months Ended March 31, 2019 and 2018



A



A



A



A



A



A



A



A



A



A



Three months ended



A



Last twelve months ended



A



A



A



A



A



A



A



A



A



AMarch 31,A



A



AMarch 31,A



A



A



A(in thousands, except share and per share data)A



A



A2019A



A



A



A



A2018A



A



A



A



A2019A



A



A



A



A2018A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



ASummary Statement of Operations data:A



A



A



A



A



A



A



A



A



A



A



AContract revenuesA



A



$



A 468,094



A



A



$



A 345,611



A



A



$



A 1,653,652



A



A



$



A 1,448,799



A



A



A



AGross profitA



A



$



A 42,876



A



A



$



A 35,753



A



A



$



A 174,183



A



A



$



A 135,017



A



A



A



AIncome from operationsA



A



$



A 9,626



A



A



$



A 8,407



A



A



$



A 51,531



A



A



$



A 37,485



A



A



A



AIncome before provision for income taxesA



A



$



A 9,167



A



A



$



A 7,935



A



A



$



A 44,300



A



A



$



A 31,734



A



A



A



AIncome tax expenseA



A



$



A 2,547



A



A



$



A 2,291



A



A



$



A 12,030



A



A



$



A 6,136



A



A



A



ANet income attributable to MYR Group Inc.A



A



$



A 7,353



A



A



$



A 5,644



A



A



$



A 32,796



A



A



$



A 25,598



A



A



A



ATax rateA



A



A



A



A



27.8



%



A



A



28.9



%



A



A



27.2



%



A



A



19.3



%



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



APer Share data:A



A



A



A



A



A



A



A



A



A



A



AIncome per common share attributable to MYR Group Inc.:A



A



A



A



A



A



A



A



A



A



A-ABasicA



A



$



A 0.45



A



A



$



A 0.35



A



A



$



A 2.00



A



(1



)



$



A 1.58



A



(1



)



A



A-ADilutedA



A



$



A 0.44



A



A



$



A 0.34



A



A



$



A 1.97



A



(1



)



$



A 1.54



A



(1



)



A



AWeighted average number of common sharesA



A



A



A



A



A



A



A



A



A



AAand potential common shares outstanding:A




A



A



A



A



A



A



A



A



A



A



A-ABasicA



A



A



A 16,514



A



A



A



A 16,321



A



A



A



A 16,489



A



(2



)



A



A 16,312



A



(2



)



A



A-ADilutedA



A



A



A 16,658



A



A



A



A 16,520



A



A



A



A 16,628



A



(2



)



A



A 16,507



A



(2



)



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



AMarch 31,A



A



ADecember 31,A



A



AMarch 31,A



A



AMarch 31,A



A



A



A(in thousands)A



A



A



A2019



A



A



A



2018



A



A



A



2018



A



A



A



2017



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



ASummary Balance Sheet data:A



A



A



A



A



A



A



A



A



A



A



ATotal assetsA



A



$



A 795,218



A



A



$



A 748,755



A



A



$



A 591,591



A



A



$



A 548,708



A



A



A



ATotal stockholdersa?? equity attributable to MYR Group Inc.A



$



A 330,727



A



A



$



A 322,984



A



A



$



A 293,428



A



A



$



A 263,894



A



A



A



AGoodwill and intangible assetsA



A



$



A 89,134



A



A



$



A 89,854



A



A



$



A 57,708



A



A



$



A 58,166



A



A



A



ATotal funded debtA



A



$



A 109,946



A



A



$



A 89,792



A



A



$



A 67,381



A



A



$



A 39,580



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



Last twelve months ended



A



A



A



A



A



A



A



A



A



A



A



A



A



AMarch 31,A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A2019A



A



A



A



A2018A



A



A



A



AFinancial Performance Measure (3):A



A



A



A



A



A



A



A



A



A



A



AReconciliation of Non-GAAP measure:A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



ANet income attributable to MYR Group Inc.A



A



A



A



A



A



$



A 32,796



A



A



$



A 25,598



A



A



A



AInterest expense, netA



A



A



A



A



A



A



A 4,112



A



A



A



A 2,807



A



A



A



ATax impact of interestA



A



A



A



A



A



A



A (1,118



)



A



A



A (542



)



A



A



AEBIT, net of taxes (4)A



A



A



A



A



A



$



A 35,790



A



A



$



A 27,863



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



ASee notes at the end of this earnings release.



A



A



A



A



A



A



A



A



AMYR GROUP INC.
Unaudited Performance Measures and Reconciliation of Non-GAAP Measures
Three and Twelve Months Ended March 31, 2019 and 2018



A



A



A



A



A



A



A



A



A



A



A



A



Three months ended



A



Last twelve months ended



A



A



A



A



A



A



A



A



A



AMarch 31,A



A



AMarch 31,A



A



A



A(in thousands, except share, per share data, ratios and percentages)A



A



A2019A



A



A



A



A2018A



A



A



A



A2019A



A



A



A



A2018A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



A



AFinancial Performance Measures (3):A



A



A



A



A



A



A



A



A



A



A



AEBITDA (5)A



A



$



A 20,921



A



A



$



A 18,048



A



A



$



A 89,482



A



A



$



A 72,763



A



A



A



AEBITDA per Diluted Share (6)A



A



$



A 1.26



A



A



$



A 1.09



A



A



$



A 5.38



A



A



$



A 4.41



A



A



A



AFree Cash Flow (7)A



A



$



A (18,116



)
See also:
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