There were 400 press releases posted in the last 24 hours and 171,534 in the last 365 days.

MYR Group Inc. Announces Second-Quarter and First-Half 2017 Results

ROLLING MEADOWS, Ill., Aug. 02, 2017 (GLOBE NEWSWIRE) -- MYR Group Inc. (“MYR”) (NASDAQ:MYRG), a holding company of leading specialty contractors serving the electrical infrastructure market in the United States and Canada, today announced its second-quarter and first-half 2017 financial results.

/EIN News/ -- Highlights

  • Second quarter revenues of $356.2 million
  • Second quarter net income of $1.2 million, or $0.07 per diluted share
  • Backlog remains strong at $632.5 million
  • $20.0 million share repurchase program extended through August 2018

Management Comments
Rick Swartz, MYR’s President and CEO, said, "Revenues came in strong at $356.2 million; however, our gross profit was negatively impacted by two projects in the Midwest U.S. and one in Canada. Although we are disappointed with our second quarter results, we are encouraged by the active bidding environment in most of our markets, which is reflected in our solid revenues and sustained backlog. We remain confident that our strong financial position, experienced and dedicated workforce and strong reputation position us to take advantage of this favorable market environment which we expect will generate positive returns for our shareholders.”

Second Quarter Results
MYR reported second quarter 2017 revenues of $356.2 million, an increase of $94.3 million, or 36.0 percent, compared to the second quarter of 2016. Specifically, the T&D segment reported revenues of $239.8 million, an increase of $61.2 million, or 34.2 percent, from the second quarter of 2016, primarily due to higher revenue from large transmission projects and an increase in distribution projects. The C&I segment reported second quarter 2017 revenues of $116.4 million, an increase of $33.1 million, or 39.7 percent, from the second quarter of 2016, due primarily to increased spending from existing customers and the WPE acquisition in late 2016.

Consolidated gross profit decreased to $27.5 million in the second quarter of 2017, compared to $31.4 million in the second quarter of 2016. The decrease in gross profit was primarily due to lower overall gross margin, partially offset by higher revenue. Gross margin decreased to 7.7 percent for the second quarter of 2017 from 12.0 percent for the second quarter of 2016. The decrease in gross margin was largely due to write-downs on three projects. Two projects in the Midwest U.S. were significantly impacted by weather resulting in unbudgeted costs associated with right-of-way access, lower productivity and increased road damage and repair requirements. As a result, we wrote down $2.8 million for these projects in the second quarter. Additionally, one T&D project in Canada experienced cost impacts mainly associated with project delays and schedule extensions. Although we are working with our client to recover these costs, we have not recognized all of the revenues relating to various pending project claims and change orders which resulted in second quarter write-downs on this project of $2.6 million. Margins were also impacted by costs associated with organic and acquisition growth, including the impact of contingent consideration related to margin guarantees of $0.9 million that is classified as other income. Changes in estimates of gross profit on certain projects, including those discussed above, resulted in a gross margin decrease of 2.1 percent for the second quarter of 2017. Gross margin increased 0.1 percent due to changes in estimates of gross profit on certain projects for the second quarter of 2016.

Selling, general and administrative expenses (“SG&A”) increased to $25.0 million in the second quarter of 2017 compared to $22.5 million in the second quarter of 2016. The year-over-year increase was primarily due to $2.8 million of costs associated with our expansion into new geographic markets and higher payroll costs to support operations, partially offset by lower bonus and profit sharing costs. As a percentage of revenues, SG&A decreased to 7.0 percent for the second quarter of 2017 from 8.6 percent for the second quarter of 2016.  

Other income (loss) increased from a loss of $0.1 million in the second quarter of 2016 to income of $0.8 million in the second quarter of 2017 primarily due to contingent consideration related to margin guarantees of $0.9 million recognized on certain contracts associated with the acquisition of WPE. The income tax provision was $2.5 million for the second quarter of 2017, with an effective tax rate of 67.3 percent, compared to a provision of $3.3 million for the second quarter of 2016, with an effective tax rate of 37.8 percent. The increase in the tax rate in the second quarter of 2017 was primarily caused by our inability to utilize losses experienced in certain Canadian operations.

For the second quarter of 2017, net income was $1.2 million, or $0.07 per diluted share, compared to $5.5 million, or $0.31 per diluted share, for the same period of 2016. Second quarter 2017 EBITDA, a non-GAAP financial measure, was $14.1 million, or 3.9 percent of revenues, compared to $18.9 million, or 7.2 percent of revenues, in the second quarter of 2016.

First-Half Results

MYR reported first-half 2017 revenues of $656.3 million, an increase of $140.7 million, or 27.3 percent, compared to first-half 2016. Specifically, the T&D segment reported revenues of $435.5 million, an increase of $73.9 million, or 20.4 percent, from the first half of 2016, primarily due to higher revenue from large transmission projects and an increase in distribution projects. The C&I segment reported first-half 2017 revenues of $220.8 million, an increase of $66.8 million, or 43.4 percent, from first-half 2016, due primarily to increased spending from existing customers and the WPE acquisition in late 2016.

Consolidated gross profit decreased to $53.3 million in the first half of 2017, compared to $58.7 million in the first half of 2016. The decrease in gross profit was primarily due to lower overall gross margin, partially offset by higher revenue. Gross margin decreased to 8.1 percent for the first half of 2017 from 11.4 percent for the first half of 2016. The decline in our gross margin was largely due to write-downs on three projects. Two projects in the Midwest U.S. were significantly impacted by weather resulting in unbudgeted costs associated with right-of-way access, lower productivity and increased road damage and repair requirements. As a result, we wrote down $4.0 million for these projects this year. One T&D project in Canada experienced cost impacts mainly associated with project delays and schedule extensions. Although we are working with our client to recover these costs, we have not recognized all of the revenues relating to various pending project claims and change orders which resulted in write-downs on this project of $2.4 million. A higher mix of smaller, shorter duration T&D work also impacted margins in the first half of 2017. The shift in the mix of work also caused a decline in our fleet utilization and increased mobilization and demobilization costs. Margins were also impacted by costs associated with organic and acquisition growth, including the impact of contingent consideration related to margin guarantees of $1.7 million that is classified as other income. These impacts were partially offset by settlements related to previously unrecognized revenues on a project claim and pending change orders. Changes in estimates of gross profit on certain projects, including those discussed above, resulted in a gross margin decrease of 1.0 percent for the first half of 2017. Gross margin decreased 0.7 percent due to changes in estimates of gross profit on certain projects for the first half of 2016.

Selling, general and administrative expenses (“SG&A”) increased to $50.8 million in the first half of 2017 compared to $46.4 million in the first half of 2016. The year-over-year increase was primarily due to $5.1 million of costs associated with our expansion into new geographic markets and higher payroll costs to support operations, partially offset by lower bonus and profit sharing costs. Additionally, $1.0 million of costs associated with activist investor activities were incurred in the first half of 2016. As a percentage of revenues, SG&A decreased to 7.7 percent for the first half of 2017 from 9.0 percent for the first half of 2016.

Other income was $1.6 million for the first half of 2017 compared to $0.1 million in the first half of 2016. The increase was primarily attributable to contingent consideration related to margin guarantees of $1.7 million recognized on certain contracts associated with the acquisition of WPE. The income tax provision was $2.2 million for the first half of 2017 with an effective tax rate of 47.2 percent, compared to a provision of $4.6 million for the first half of 2016 with an effective tax rate of 38.0 percent. The increase in the tax rate in first half of 2017 was primarily caused by our inability to utilize losses experienced in certain Canadian operations, partially offset by excess tax benefits of approximately $1.0 million pertaining to the vesting of stock awards and the exercise of stock options.

For the first half of 2017, net income was $2.4 million, or $0.15 per diluted share, compared to $7.5 million, or $0.40 per diluted share, for the same period of 2016. First-half 2017 EBITDA, a non-GAAP financial measure, was $25.2 million, or 3.8 percent of revenues, compared to $32.2 million, or 6.2 percent of revenues, in the first half of 2016.

Share Repurchase Program
MYR’s current share repurchase program will expire on August 15, 2017. On July 27, 2017, the Board of Directors approved a new $20 million share repurchase program that will begin when our current program expires. The new share repurchase program will continue in effect through August 15, 2018 or until the authorized funds are exhausted.

Backlog
As of June 30, 2017, MYR's backlog was $632.5 million, consisting of $295.0 million in the T&D segment and $337.5 million in the C&I segment. Total backlog of $632.5 million was $28.4 million lower than the $660.9 million reported at March 31, 2017. T&D backlog decreased $61.9 million, or 17.3 percent, from March 31, 2017, while C&I backlog increased $33.6 million, or 11.0 percent, over the same period. Total backlog at June 30, 2017 increased $157.5 million, or 33.1 percent, from the $475.0 million reported at June 30, 2016.

Balance Sheet
As of June 30, 2017, MYR had $181.4 million of borrowing availability under its credit facility.

Non-GAAP Financial Measures
To supplement MYR’s financial statements presented in accordance with generally accepted accounting principles in the United States (GAAP), 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. MYR’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 MYR’s performance using the same tools that management uses to evaluate MYR’s past performance, reportable business segments and prospects for future performance, (iii) publicly disclose results that are relevant to financial covenants included in MYR’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 second-quarter 2017 results on Thursday, August 3, 2017, 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, August 10, 2017, at 11:59 p.m. Eastern time, by dialing (855) 859-2056 or (404) 537-3406, and entering conference ID 42428877. 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, August 10, 2017, at 11:59 P.M. Eastern time.

About MYR
MYR is a holding company of leading specialty contractors serving the electrical infrastructure market throughout the United States and 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 western and northeastern 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 “anticipate,” “believe,” “encouraged,” “estimate,” “expect,” “intend,” “likely,” “may,” “objective,” “outlook,” “plan,” “possible,” “potential,” “project,” “remain confident,” “should” “unlikely,” 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, 2016, 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.
Consolidated Balance Sheets
As of June 30, 2017 and December 31, 2016
       
  June 30,   December 31,
(In thousands, except share and per share data)    2017       2016  
  (unaudited)    
ASSETS      
Current assets:      
Cash and cash equivalents $   10,026     $   23,846  
Accounts receivable, net of allowances of $474 and $432, respectively     222,210         234,642  
Costs and estimated earnings in excess of billings on uncompleted contracts     93,050         69,950  
Current portion of receivable for insurance claims in excess of deductibles     3,930         3,785  
Refundable income taxes, net     660         2,474  
Other current assets     8,286         8,202  
Total current assets     338,162         342,899  
Property and equipment, net of accumulated depreciation of $220,760 and $209,466, respectively     155,553         154,891  
Goodwill     46,781         46,781  
Intangible assets, net of accumulated amortization of $5,082 and $4,684, respectively     11,190         11,566  
Receivable for insurance claims in excess of deductibles     14,646         14,692  
Other assets     3,525         2,666  
Total assets $   569,857     $   573,495  
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
Current liabilities:      
Current portion of capital lease obligations $   1,101     $   1,085  
Accounts payable     115,324         99,942  
Billings in excess of costs and estimated earnings on uncompleted contracts     41,967         42,321  
Current portion of accrued self insurance     12,442         10,492  
Other current liabilities     31,956         42,382  
Total current liabilities     202,790         196,222  
Deferred income tax liabilities     18,358         18,565  
Long-term debt     44,878         59,070  
Accrued self insurance     32,898         32,092  
Capital lease obligations, net of current maturities     3,300         3,833  
Other liabilities     505         539  
Total liabilities     302,729         310,321  
Commitments and contingencies      
Stockholders’ equity:      
Preferred stock—$0.01 par value per share; 4,000,000 authorized shares;      
none issued and outstanding at June 30, 2017 and December 31, 2016     —         —  
Common stock—$0.01 par value per share; 100,000,000 authorized shares;      
16,491,656 and 16,333,139 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively     163         162  
Additional paid-in capital     142,331         140,100  
Accumulated other comprehensive loss     (423 )       (433 )
Retained earnings     125,057         123,345  
Total stockholders’ equity     267,128         263,174  
Total liabilities and stockholders’ equity $   569,857     $   573,495  
       



MYR GROUP INC.
Unaudited Consolidated Statements of Operations and Comprehensive Income
Three and Six Months Ended June 30, 2017 and 2016
       
  Three months ended   Six months ended
 June 30,    June 30,
(In thousands, except per share data)   2017       2016       2017       2016  
               
Contract revenues $   356,185     $   261,934     $   656,314     $   515,568  
Contract costs     328,668         230,499         603,057         456,852  
Gross profit     27,517         31,435         53,257         58,716  
Selling, general and administrative expenses     25,024         22,517         50,803         46,376  
Amortization of intangible assets     210         292         398         503  
Gain on sale of property and equipment     (1,319 )       (516 )       (2,026 )       (612 )
Income from operations     3,602         9,142         4,082         12,449  
Other income (expense)              
Interest income     3         1         4         5  
Interest expense     (594 )       (242 )       (1,108 )       (425 )
Other, net     751         (52 )       1,625         56  
Income before provision for income taxes     3,762         8,849         4,603         12,085  
Income tax expense     2,532         3,349         2,173         4,598  
Net income $   1,230     $   5,500     $   2,430     $   7,487  
Income per common share:              
—Basic $   0.08     $   0.32     $   0.15     $   0.41  
—Diluted $   0.07     $   0.31     $   0.15     $   0.40  
Weighted average number of common shares and potential common shares outstanding:              
—Basic     16,312         17,354         16,237         18,336  
—Diluted     16,503         17,679         16,476         18,638  
               
Net income $   1,230     $   5,500     $   2,430     $   7,487  
Other comprehensive income (loss):              
Foreign currency translation adjustment     59         32         10         (84 )
Other comprehensive income (loss)     59         32         10         (84 )
Total comprehensive income $   1,289     $   5,532     $   2,440     $   7,403  
               



MYR GROUP INC.
Unaudited Consolidated Statements of Cash Flows
Six Months Ended June 30, 2017 and 2016
   
  Six months ended
June 30,
(In thousands)   2017       2016  
       
 Cash flows from operating activities:      
Net income $   2,430     $   7,487  
Adjustments to reconcile net income to net cash flows provided by operating activities —      
Depreciation and amortization of property and equipment     19,055         19,187  
Amortization of intangible assets     398         503  
Stock-based compensation expense     2,560         2,439  
Deferred income taxes     (209 )       (27 )
Gain on sale of property and equipment     (2,026 )       (612 )
Other non-cash items     (289 )       75  
Changes in operating assets and liabilities      
Accounts receivable, net     13,346         25,313  
Costs and estimated earnings in excess of billings on      
uncompleted contracts     (22,707 )       (15,619 )
Receivable for insurance claims in excess of deductibles     (99 )       (1,709 )
Other assets     (626 )       (560 )
Accounts payable     15,357         5,160  
Billings in excess of costs and estimated earnings on      
uncompleted contracts     (445 )       3,462  
Accrued self insurance
    2,745         814  
Other liabilities     (10,310 )       549  
Net cash flows provided by operating activities     19,180         46,462  
 Cash flows from investing activities:      
Proceeds from sale of property and equipment     2,466         1,843  
Purchases of property and equipment     (20,598 )       (12,237 )
Net cash flows used in investing activities     (18,132 )       (10,394 )
 Cash flows from financing activities:      
Net borrowings (repayments) under revolving lines of credit     (14,193 )       20,000  
Payment of principal obligations under capital leases     (516 )       (144 )
Proceeds from exercise of stock options      1,134         1,116  
Debt issuance costs     —         (874 )
Excess tax benefit from stock-based awards     —         237  
Repurchase of common shares     (2,208 )       (92,958 )
Other financing activities     28         63  
Net cash flows used in financing activities     (15,755 )       (72,560 )
Effect of exchange rate changes on cash     887         58  
Net decrease in cash and cash equivalents     (13,820 )       (36,434 )
 Cash and cash equivalents:      
Beginning of period     23,846         39,797  
End of period $   10,026     $   3,363  
       


 


  MYR GROUP INC.
 
  Unaudited Consolidated Selected Data and Net Income Per Share
 
  Three and Twelve Months Ended June 30, 2017 and 2016
 
                     
              Three months ended   Last twelve months ended  
               June 30,    June 30,  
 (in thousands, except shares and per share data)    2017        2016        2017        2016    
                             
 Summary Statement of Operations Data:                  
 Contract revenues   $   356,185     $   261,934     $   1,283,233     $   1,056,613    
 Gross profit   $   27,517     $   31,435     $   129,264     $   119,947    
 Income from operations   $   3,602     $   9,142     $   30,387     $   32,669    
 Income before provision for income taxes   $   3,762     $   8,849     $   30,863     $   32,203    
 Income Tax Expense   $    2,532     $   3,349     $   14,489     $   12,660    
 Net income   $   1,230     $   5,500     $   16,374     $   19,543    
 Tax rate         67.3 %     37.8 %     46.9 %     39.3 %  
                             
 Per Share Data:                  
 Income per common share:                  
   -Basic      $   0.08     $   0.32     $   1.03   (1 ) $   1.01   (1 )
   -Diluted     $   0.07     $   0.31     $   1.00   (1 ) $   0.99   (1 )
 Weighted average number of common shares                
   and potential common shares outstanding :                  
   -Basic          16,312         17,354         16,063   (2 )     19,417   (2 )
   -Diluted         16,503         17,679         16,369   (2 )     19,778   (2 )
                             
               June 30,    December 31,    June 30,    June 30,  
 (in thousands)      2017       2016       2016       2015    
                             
 Summary Balance Sheet Data:                  
 Total assets   $   569,857     $   573,495     $   471,675     $   562,431    
 Total stockholders' equity (book value)   $   267,128     $   263,174     $   245,687     $   340,496    
 Goodwill and intangible assets   $   57,971     $   58,347     $   57,986     $   58,616    
 Total funded debt    $   44,878     $   59,070     $   20,000     $   —    
                             
                      Last twelve months ended  
                       June 30,  
                         2017        2016    
 Financial Performance Measures (3):                  
 Reconciliation of Non-GAAP measures:                          
 Net income           $   16,374     $   19,543    
   Interest expense, net               1,978         785    
   Tax impact of interest               (928 )       (309 )  
 EBIT, net of taxes (4)           $   17,424     $   20,019    
                             
See notes at the end of this earnings release.



  MYR GROUP INC.
  Unaudited Performance Measures and Reconciliation of Non-GAAP Measures
  Three and Twelve Months Ended June 30, 2017 and 2016
                   
              Three months ended   Last twelve months ended
               June 30,    June 30,
 (in thousands, except shares, per share data, ratios and percentages)   2017       2016       2017       2016  
                           
 Financial Performance Measures (3):                
 EBITDA (5)   $   14,060     $   18,864     $   71,726     $   72,388  
 EBITDA per Diluted Share (6)   $   0.85     $   1.07     $   4.39     $   3.66  
 Free Cash Flow (7)   $   (4,476 )   $   23,568     $   (6,524 )   $   51,328  
 Book Value per Period End Share (8)   $   16.01     $   14.87          
 Tangible Book Value (9)   $   209,157     $   187,701          
 Tangible Book Value per Period End Share (10) $   12.54     $   11.36          
 Funded Debt to Equity Ratio  (11)     0.17       0.08          
 Asset Turnover (12)             2.72       1.88  
 Return on Assets (13)             3.5 %     3.5 %
 Return on Equity  (14)             6.7 %     5.7 %
 Return on Invested Capital (17)             6.6 %     6.8 %
                           
 Reconciliation of Non-GAAP Measures:                
 Reconciliation of Net Income to EBITDA:                
 Net income   $   1,230     $   5,500     $   16,374     $   19,543  
   Interest expense, net       591         241         1,978         785  
   Provision for income taxes       2,532         3,349         14,489         12,660  
   Depreciation and amortization       9,707         9,774         38,885         39,400  
 EBITDA (5)   $   14,060     $   18,864     $   71,726     $   72,388  
                           
 Reconciliation of Net Income per Diluted Share              
      to EBITDA per Diluted Share:                
 Net Income per share:   $   0.07     $   0.31     $   1.00     $   0.99  
   Interest expense, net, per share       0.04         0.01         0.12         0.04  
   Provision for income taxes per share       0.15         0.19         0.89         0.64  
   Depreciation and amortization per share       0.59         0.56         2.38         1.99  
 EBITDA per Diluted Share (6)   $   0.85     $   1.07     $   4.39     $   3.66  
                           
 Calculation of Free Cash Flow:                
 Net cash flow from operating activities   $   6,120     $   32,036     $   27,208     $   80,433  
   Less: cash used in purchasing property and equipment     (10,596 )       (8,468 )       (33,732 )       (29,105 )
 Free Cash Flow (7)   $   (4,476 )   $   23,568     $   (6,524 )   $   51,328  
                           
 Reconciliation of Book Value to Tangible Book Value:              
 Book value (total stockholders' equity)   $   267,128     $   245,687          
   Goodwill and intangible assets       (57,971 )       (57,986 )        
 Tangible Book Value (9)   $   209,157     $   187,701          
                           
 Reconciliation of Book Value per Period End Share               
     to Tangible Book Value per Period End Share:              
 Book value per period end share:   $   16.01     $   14.87          
   Goodwill and intangible assets per period end share   (3.47 )     (3.51 )        
 Tangible Book Value per Period End Share (10) $   12.54     $   11.36          
                           
 Calculation of Period End Shares:                
 Shares Outstanding       16,492         16,202          
   Plus: Common Equivalents       191         325          
 Period End Shares (15)       16,683         16,527          
                           
                   June 30,    June 30,    June 30,
                    2017       2016       2015  
 Reconciliation of Invested Capital to Shareholders Equity:              
 Book value (total stockholders' equity)       $   267,128     $   245,687     $   340,496  
     Plus: Total Funded Debt           44,878         20,000         —  
     Less: Cash and cash equivalents           (10,026 )       (3,363 )       (46,884 )
 Invested Capital (16)       $   301,980     $   262,324     $   293,612  
                           
 See notes at the end of this earnings release.


(1) Last-twelve-months earnings per share is the sum of earnings per share reported in the last four quarters.
(2) Last-twelve-months average basic and diluted shares were determined by adding the average shares reported for the last four quarters and dividing by four.
(3) These financial performance measures are provided as supplemental information to the financial statements. These measures are used by management to evaluate our past performance, our prospects for future performance and our ability to comply with certain material covenants as defined within our credit agreement, and to compare our results with those of our peers. In addition, we believe that certain of the measures, such as book value, tangible book value, free cash flow, asset turnover, return on equity and debt leverage are measures that are monitored by sureties, lenders, lessors, suppliers and certain investors. Our calculation of each measure is described in the following notes; our calculation may not be the same as the calculations made by other companies.
(4) EBIT, net of taxes is defined as net income plus net interest, less the tax impact of net interest. The tax impact of net interest is computed by multiplying net interest by the effective tax rate. Management uses EBIT, net of taxes, to measure our results exclusive of the impact of financing costs.
(5) EBITDA is defined as earnings before interest, taxes, depreciation and amortization.  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 cash flows provided by operating activities as a measure of liquidity. EBITDA is a component of the debt to EBITDA covenant, as defined in our credit agreement, which we must report to our bank on a quarterly basis. In addition, management considers EBITDA a useful measure because it eliminates differences which are caused by different capital structures as well as different tax rates and depreciation schedules when comparing our measures to our peers’ measures.
(6) EBITDA per diluted share is calculated by dividing EBITDA by the weighted average number of diluted shares outstanding for the period. EBITDA per diluted share is not recognized under GAAP and does not purport to be an alternative to income per diluted share.
(7) Free cash flow, which is defined as cash flow provided by operating activities minus cash flow used in purchasing  property and equipment, is not recognized under GAAP and does not purport to be an alternative to net income, cash  flow from operations or the change in cash on the balance sheet. Management views free cash flow as a measure of  operational performance, liquidity and financial health. 
(8) Book value per period end share is calculated by dividing total stockholders’ equity at the end of the period by the period end shares outstanding.
(9) Tangible book value is calculated by subtracting goodwill and intangible assets outstanding at the end of the period from stockholders’ equity outstanding at the end of the period. Tangible book value is not recognized under GAAP and does not purport to be an alternative to book value or stockholders’ equity.
(10) Tangible book value per period end share is calculated by dividing tangible book value at the end of the period by the period end number of shares outstanding. Tangible book value per period end share is not recognized under GAAP and does not purport to be an alternative to income per diluted share.
(11) The funded debt to equity ratio is calculated by dividing total funded debt at the end of the period by total stockholders’ equity at the end of the period.
(12) Asset turnover is calculated by dividing the current period revenue by total assets at the beginning of the period.
(13) Return on assets is calculated by dividing net income for the period by total assets at the beginning of the period.
(14) Return on equity is calculated by dividing net income for the period by total stockholders’ equity at the beginning of the period.
(15) Period end shares is calculated by adding average common stock equivalents for the quarter to period end balance of common stock outstanding. Period end shares is not recognized under GAAP and does not purport to be an alternative to diluted shares. Management views period end shares as a better measure of shares outstanding as of the end of the period.
(16) Invested capital is calculated by adding net funded debt (total funded debt less cash and marketable securities) to total stockholders’ equity.
(17) Return on invested capital is calculated by dividing EBIT, net of taxes, less any dividends, by invested capital at the beginning of the period. Return on invested capital is not recognized under GAAP, and is a key metric used by management to determine our executive compensation.

 

MYR Group Inc. Contact:
Betty R. Johnson, Chief Financial Officer, 847-290-1891, investorinfo@myrgroup.com

Investor Contact: 
Kristine Walczak
Dresner Corporate Services, 312-780-7205, kwalczak@dresnerco.com

Primary Logo