August 2, 2017

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.

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

Source: MYR Group Inc.

News Provided by Acquire Media


Close window | Back to top

Copyright 2017 MYR Group Inc.