myrg-20240331
false2024Q1000070092312-31P1Yhttp://fasb.org/us-gaap/2023#PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortizationP1Y11111100007009232024-01-012024-03-3100007009232024-04-26xbrli:shares00007009232024-03-31iso4217:USD00007009232023-12-31iso4217:USDxbrli:shares00007009232023-01-012023-03-310000700923us-gaap:PreferredStockMember2022-12-310000700923us-gaap:CommonStockMember2022-12-310000700923us-gaap:AdditionalPaidInCapitalMember2022-12-310000700923us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000700923us-gaap:RetainedEarningsMember2022-12-3100007009232022-12-310000700923us-gaap:RetainedEarningsMember2023-01-012023-03-310000700923us-gaap:CommonStockMember2023-01-012023-03-310000700923us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310000700923us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310000700923us-gaap:PreferredStockMember2023-03-310000700923us-gaap:CommonStockMember2023-03-310000700923us-gaap:AdditionalPaidInCapitalMember2023-03-310000700923us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310000700923us-gaap:RetainedEarningsMember2023-03-3100007009232023-03-310000700923us-gaap:PreferredStockMember2023-12-310000700923us-gaap:CommonStockMember2023-12-310000700923us-gaap:AdditionalPaidInCapitalMember2023-12-310000700923us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310000700923us-gaap:RetainedEarningsMember2023-12-310000700923us-gaap:RetainedEarningsMember2024-01-012024-03-310000700923us-gaap:CommonStockMember2024-01-012024-03-310000700923us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310000700923us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310000700923us-gaap:PreferredStockMember2024-03-310000700923us-gaap:CommonStockMember2024-03-310000700923us-gaap:AdditionalPaidInCapitalMember2024-03-310000700923us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310000700923us-gaap:RetainedEarningsMember2024-03-31myrg:segment00007009232023-01-012023-12-310000700923us-gaap:ContractsAccountedForUnderPercentageOfCompletionMember2024-01-012024-03-31xbrli:pure0000700923us-gaap:ContractsAccountedForUnderPercentageOfCompletionMember2023-01-012023-03-310000700923myrg:NetPeriodChangeMember2024-01-012024-03-310000700923srt:MinimumMember2024-01-012024-03-310000700923srt:MaximumMember2024-01-012024-03-310000700923srt:SubsidiariesMembermyrg:EmployeesMember2023-01-012023-03-310000700923srt:SubsidiariesMembermyrg:EmployeesMember2024-01-012024-03-310000700923srt:SubsidiariesMembermyrg:EmployeesMember2024-03-310000700923myrg:PowerlinePlusCompaniesMembermyrg:CertainPerformanceTargetsMember2022-01-040000700923myrg:PowerlinePlusCompaniesMembermyrg:CertainPerformanceTargetsMember2024-03-310000700923myrg:PowerlinePlusCompaniesMembermyrg:CertainPerformanceTargetsMember2023-12-310000700923myrg:PowerlinePlusCompaniesMembermyrg:CertainPerformanceTargetsMember2023-01-012023-03-310000700923myrg:PowerlinePlusCompaniesMembermyrg:CertainPerformanceTargetsMember2024-01-012024-03-310000700923us-gaap:RevolvingCreditFacilityMember2024-01-012024-03-310000700923us-gaap:RevolvingCreditFacilityMember2024-03-310000700923us-gaap:RevolvingCreditFacilityMember2023-12-310000700923myrg:EquipmentNoteEightMemberus-gaap:NotesPayableToBanksMember2024-03-310000700923myrg:EquipmentNoteEightMemberus-gaap:NotesPayableToBanksMember2024-01-012024-03-310000700923myrg:EquipmentNoteEightMemberus-gaap:NotesPayableToBanksMember2023-12-310000700923us-gaap:NotesPayableToBanksMembermyrg:EquipmentNoteTenMember2024-03-310000700923us-gaap:NotesPayableToBanksMembermyrg:EquipmentNoteTenMember2024-01-012024-03-310000700923us-gaap:NotesPayableToBanksMembermyrg:EquipmentNoteTenMember2023-12-310000700923us-gaap:NotesPayableToBanksMembermyrg:OtherEquipmentNoteMember2024-03-310000700923us-gaap:NotesPayableToBanksMembermyrg:OtherEquipmentNoteMember2024-01-012024-03-310000700923us-gaap:NotesPayableToBanksMembermyrg:OtherEquipmentNoteMember2023-12-310000700923us-gaap:NotesPayableToBanksMember2024-03-310000700923us-gaap:NotesPayableToBanksMember2023-12-310000700923us-gaap:SecuredDebtMembermyrg:CreditAgreementMember2023-05-312023-05-310000700923us-gaap:SecuredDebtMembermyrg:CreditAgreementMember2023-05-310000700923us-gaap:SecuredDebtMemberus-gaap:RevolvingCreditFacilityMembermyrg:CreditAgreementMember2023-05-310000700923us-gaap:SecuredDebtMembermyrg:CreditAgreementMemberus-gaap:LetterOfCreditMember2023-05-310000700923us-gaap:SecuredDebtMembermyrg:CreditAgreementMembermyrg:LettersOfCreditDiscretionalMember2023-05-310000700923us-gaap:SecuredDebtMembermyrg:SwinglineLoanMembermyrg:CreditAgreementMember2023-05-310000700923us-gaap:SecuredDebtMembersrt:MinimumMemberus-gaap:BaseRateMembermyrg:CreditAgreementMember2023-05-312023-05-310000700923us-gaap:SecuredDebtMemberus-gaap:BaseRateMembermyrg:CreditAgreementMembersrt:MaximumMember2023-05-312023-05-310000700923us-gaap:SecuredDebtMembersrt:MinimumMembermyrg:CreditAgreementMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2023-05-312023-05-310000700923us-gaap:SecuredDebtMembermyrg:CreditAgreementMembersrt:MaximumMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2023-05-312023-05-310000700923us-gaap:SecuredDebtMembersrt:MinimumMembermyrg:CreditAgreementMembermyrg:NonperformanceLettersOfCreditMember2023-05-312023-05-310000700923us-gaap:SecuredDebtMembermyrg:CreditAgreementMembersrt:MaximumMembermyrg:NonperformanceLettersOfCreditMember2023-05-312023-05-310000700923us-gaap:SecuredDebtMembersrt:MinimumMembermyrg:PerformanceLettersOfCreditMembermyrg:CreditAgreementMember2023-05-312023-05-310000700923us-gaap:SecuredDebtMembermyrg:PerformanceLettersOfCreditMembermyrg:CreditAgreementMembersrt:MaximumMember2023-05-312023-05-310000700923us-gaap:SecuredDebtMembersrt:MinimumMembermyrg:CreditAgreementMember2023-05-312023-05-310000700923us-gaap:SecuredDebtMembermyrg:CreditAgreementMembersrt:MaximumMember2023-05-312023-05-310000700923us-gaap:SecuredDebtMembermyrg:CreditAgreementMember2024-01-012024-03-310000700923us-gaap:SecuredDebtMemberus-gaap:RevolvingCreditFacilityMembermyrg:CreditAgreementMember2024-03-310000700923us-gaap:SecuredDebtMembermyrg:CreditAgreementMemberus-gaap:LetterOfCreditMember2024-03-310000700923us-gaap:SecuredDebtMembermyrg:CreditAgreementMemberus-gaap:LetterOfCreditMembermyrg:InsuranceProgramObligationsMember2024-03-310000700923us-gaap:SecuredDebtMembermyrg:CreditAgreementMembermyrg:ContractPerformanceObligationsMemberus-gaap:LetterOfCreditMember2024-03-310000700923us-gaap:SecuredDebtMemberus-gaap:RevolvingCreditFacilityMembermyrg:CreditAgreementMember2023-12-310000700923us-gaap:SecuredDebtMembermyrg:CreditAgreementMemberus-gaap:LetterOfCreditMember2023-12-310000700923us-gaap:SecuredDebtMembermyrg:CreditAgreementMemberus-gaap:LetterOfCreditMembermyrg:InsuranceProgramObligationsMember2023-12-310000700923us-gaap:SecuredDebtMembermyrg:CreditAgreementMembermyrg:ContractPerformanceObligationsMemberus-gaap:LetterOfCreditMember2023-12-310000700923us-gaap:SecuredDebtMembermyrg:CreditAgreementMember2024-03-310000700923us-gaap:NotesPayableToBanksMembermyrg:MasterLoanAgreementMember2024-01-012024-03-31myrg:equipment_note0000700923myrg:TransmissionAndDistributionMemberus-gaap:FixedPriceContractMember2024-01-012024-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMembermyrg:TransmissionAndDistributionMemberus-gaap:FixedPriceContractMember2024-01-012024-03-310000700923myrg:CommercialAndIndustrialMemberus-gaap:FixedPriceContractMember2024-01-012024-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMembermyrg:CommercialAndIndustrialMemberus-gaap:FixedPriceContractMember2024-01-012024-03-310000700923us-gaap:FixedPriceContractMember2024-01-012024-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMemberus-gaap:FixedPriceContractMember2024-01-012024-03-310000700923myrg:UnitPriceContractMembermyrg:TransmissionAndDistributionMember2024-01-012024-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMembermyrg:UnitPriceContractMembermyrg:TransmissionAndDistributionMember2024-01-012024-03-310000700923myrg:UnitPriceContractMembermyrg:CommercialAndIndustrialMember2024-01-012024-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMembermyrg:UnitPriceContractMembermyrg:CommercialAndIndustrialMember2024-01-012024-03-310000700923myrg:UnitPriceContractMember2024-01-012024-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMembermyrg:UnitPriceContractMember2024-01-012024-03-310000700923myrg:TransmissionAndDistributionMembermyrg:TeContractMember2024-01-012024-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMembermyrg:TransmissionAndDistributionMembermyrg:TeContractMember2024-01-012024-03-310000700923myrg:CommercialAndIndustrialMembermyrg:TeContractMember2024-01-012024-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMembermyrg:CommercialAndIndustrialMembermyrg:TeContractMember2024-01-012024-03-310000700923myrg:TeContractMember2024-01-012024-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMembermyrg:TeContractMember2024-01-012024-03-310000700923myrg:TransmissionAndDistributionMember2024-01-012024-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMembermyrg:TransmissionAndDistributionMember2024-01-012024-03-310000700923myrg:CommercialAndIndustrialMember2024-01-012024-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMembermyrg:CommercialAndIndustrialMember2024-01-012024-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMember2024-01-012024-03-310000700923myrg:TransmissionAndDistributionMemberus-gaap:FixedPriceContractMember2023-01-012023-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMembermyrg:TransmissionAndDistributionMemberus-gaap:FixedPriceContractMember2023-01-012023-03-310000700923myrg:CommercialAndIndustrialMemberus-gaap:FixedPriceContractMember2023-01-012023-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMembermyrg:CommercialAndIndustrialMemberus-gaap:FixedPriceContractMember2023-01-012023-03-310000700923us-gaap:FixedPriceContractMember2023-01-012023-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMemberus-gaap:FixedPriceContractMember2023-01-012023-03-310000700923myrg:UnitPriceContractMembermyrg:TransmissionAndDistributionMember2023-01-012023-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMembermyrg:UnitPriceContractMembermyrg:TransmissionAndDistributionMember2023-01-012023-03-310000700923myrg:UnitPriceContractMembermyrg:CommercialAndIndustrialMember2023-01-012023-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMembermyrg:UnitPriceContractMembermyrg:CommercialAndIndustrialMember2023-01-012023-03-310000700923myrg:UnitPriceContractMember2023-01-012023-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMembermyrg:UnitPriceContractMember2023-01-012023-03-310000700923myrg:TransmissionAndDistributionMembermyrg:TeContractMember2023-01-012023-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMembermyrg:TransmissionAndDistributionMembermyrg:TeContractMember2023-01-012023-03-310000700923myrg:CommercialAndIndustrialMembermyrg:TeContractMember2023-01-012023-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMembermyrg:CommercialAndIndustrialMembermyrg:TeContractMember2023-01-012023-03-310000700923myrg:TeContractMember2023-01-012023-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMembermyrg:TeContractMember2023-01-012023-03-310000700923myrg:TransmissionAndDistributionMember2023-01-012023-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMembermyrg:TransmissionAndDistributionMember2023-01-012023-03-310000700923myrg:CommercialAndIndustrialMember2023-01-012023-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMembermyrg:CommercialAndIndustrialMember2023-01-012023-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMember2023-01-012023-03-310000700923myrg:MarketTypeTransmissionMembermyrg:TransmissionAndDistributionMember2024-01-012024-03-310000700923us-gaap:ProductConcentrationRiskMembermyrg:MarketTypeTransmissionMemberus-gaap:SalesRevenueNetMembermyrg:TransmissionAndDistributionMember2024-01-012024-03-310000700923myrg:MarketTypeTransmissionMembermyrg:TransmissionAndDistributionMember2023-01-012023-03-310000700923us-gaap:ProductConcentrationRiskMembermyrg:MarketTypeTransmissionMemberus-gaap:SalesRevenueNetMembermyrg:TransmissionAndDistributionMember2023-01-012023-03-310000700923myrg:MarketTypeDistributionMembermyrg:TransmissionAndDistributionMember2024-01-012024-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMembermyrg:MarketTypeDistributionMembermyrg:TransmissionAndDistributionMember2024-01-012024-03-310000700923myrg:MarketTypeDistributionMembermyrg:TransmissionAndDistributionMember2023-01-012023-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMembermyrg:MarketTypeDistributionMembermyrg:TransmissionAndDistributionMember2023-01-012023-03-310000700923myrg:MarketTypeElectricalConstructionMembermyrg:CommercialAndIndustrialMember2024-01-012024-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMembermyrg:MarketTypeElectricalConstructionMembermyrg:CommercialAndIndustrialMember2024-01-012024-03-310000700923myrg:MarketTypeElectricalConstructionMembermyrg:CommercialAndIndustrialMember2023-01-012023-03-310000700923us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMembermyrg:MarketTypeElectricalConstructionMembermyrg:CommercialAndIndustrialMember2023-01-012023-03-310000700923myrg:TransmissionAndDistributionMember2024-03-3100007009232024-04-01myrg:TransmissionAndDistributionMember2024-03-3100007009232025-04-01myrg:TransmissionAndDistributionMember2024-03-310000700923myrg:CommercialAndIndustrialMember2024-03-3100007009232024-04-01myrg:CommercialAndIndustrialMember2024-03-3100007009232025-04-01myrg:CommercialAndIndustrialMember2024-03-3100007009232024-04-012024-03-3100007009232025-04-012024-03-310000700923myrg:ContingenciesExcludingWildfireAndHealthInsuranceMember2024-03-310000700923myrg:HealthInsuranceMember2024-03-310000700923us-gaap:PerformanceGuaranteeMember2024-03-310000700923us-gaap:PerformanceGuaranteeMember2024-01-012024-03-310000700923myrg:A2017LongTermIncentivePlanMembermyrg:TimeVestedStockAwardsMember2024-01-012024-03-310000700923myrg:A2017LongTermIncentivePlanMembermyrg:TimeVestedStockAwardsMemberus-gaap:ShareBasedPaymentArrangementEmployeeMember2024-01-012024-03-310000700923myrg:A2017LongTermIncentivePlanMemberus-gaap:ShareBasedPaymentArrangementEmployeeMemberus-gaap:PerformanceSharesMember2024-01-012024-03-310000700923srt:MinimumMembermyrg:A2017LongTermIncentivePlanMemberus-gaap:ShareBasedPaymentArrangementEmployeeMemberus-gaap:PerformanceSharesMember2024-01-012024-03-310000700923myrg:A2017LongTermIncentivePlanMembersrt:MaximumMemberus-gaap:ShareBasedPaymentArrangementEmployeeMemberus-gaap:PerformanceSharesMember2024-01-012024-03-310000700923us-gaap:OperatingSegmentsMembermyrg:TransmissionAndDistributionMember2024-01-012024-03-310000700923us-gaap:OperatingSegmentsMembermyrg:TransmissionAndDistributionMember2023-01-012023-03-310000700923us-gaap:OperatingSegmentsMembermyrg:CommercialAndIndustrialMember2024-01-012024-03-310000700923us-gaap:OperatingSegmentsMembermyrg:CommercialAndIndustrialMember2023-01-012023-03-310000700923us-gaap:CorporateNonSegmentMember2024-01-012024-03-310000700923us-gaap:CorporateNonSegmentMember2023-01-012023-03-310000700923myrg:TimeVestedStockAwardsMember2024-01-012024-03-310000700923myrg:TimeVestedStockAwardsMember2023-01-012023-03-310000700923us-gaap:PerformanceSharesMember2024-01-012024-03-310000700923us-gaap:PerformanceSharesMember2023-01-012023-03-3100007009232023-05-02
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2024
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from            to
Commission file number: 1-08325
_____________________________________________________________
MYR GROUP INC.
(Exact name of registrant as specified in its charter)
Delaware36-3158643
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer Identification No.)
12121 Grant Street,
Suite 610
Thornton,CO80241
(Address of principal executive offices)(Zip Code)
(303) 286-8000
(Registrant’s telephone number, including area code)

N/A
(Former name, former address and former fiscal year, if changed since last report)
_____________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par valueMYRGThe Nasdaq Stock Market, LLC
(Nasdaq Global Market)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
x
Accelerated filer
Non-accelerated filer Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No x
As of April 26, 2024, there were 16,765,450 outstanding shares of the registrant’s $0.01 par value common stock.



Table of Contents

INDEX
Page
Throughout this report, references to “MYR Group,” the “Company,” “we,” “us” and “our” refer to MYR Group Inc. and its consolidated subsidiaries, except as otherwise indicated or as the context otherwise requires.
1

Table of Contents
PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS
MYR GROUP INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)March 31,
2024
December 31,
2023
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents$3,911 $24,899 
Accounts receivable, net of allowances of $946 and $1,987, respectively
527,069 521,893 
Contract assets, net of allowances of $575 and $610, respectively
450,741 420,616 
Current portion of receivable for insurance claims in excess of deductibles8,215 8,267 
Refundable income taxes1,754 4,034 
Prepaid expenses and other current assets34,497 46,535 
Total current assets1,026,187 1,026,244 
Property and equipment, net of accumulated depreciation of $383,009 and $380,465, respectively
272,569 268,978 
Operating lease right-of-use assets38,515 35,012 
Goodwill115,865 116,953 
Intangible assets, net of accumulated amortization of $31,564 and $30,534, respectively
81,449 83,516 
Receivable for insurance claims in excess of deductibles33,594 33,739 
Investment in joint ventures9,461 8,707 
Other assets5,850 5,597 
Total assets$1,583,490 $1,578,746 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt$6,617 $7,053 
Current portion of operating lease obligations9,918 9,237 
Current portion of finance lease obligations1,845 2,039 
Accounts payable321,277 359,363 
Contract liabilities270,964 240,411 
Current portion of accrued self-insurance24,623 28,269 
Accrued income taxes1,185 237 
Other current liabilities95,929 100,593 
Total current liabilities732,358 747,202 
Deferred income tax liabilities47,829 48,230 
Long-term debt31,315 29,188 
Accrued self-insurance51,007 51,796 
Operating lease obligations, net of current maturities28,592 25,775 
Finance lease obligations, net of current maturities184 314 
Other liabilities28,485 25,039 
Total liabilities919,770 927,544 
Commitments and contingencies
Shareholders’ equity:
Preferred stock—$0.01 par value per share; 4,000,000 authorized shares; none issued and outstanding at March 31, 2024 and December 31, 2023
  
Common stock—$0.01 par value per share; 100,000,000 authorized shares; 16,761,942 and 16,684,492 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively
167 167 
Additional paid-in capital158,791 162,386 
Accumulated other comprehensive loss(6,352)(3,880)
Retained earnings511,114 492,529 
Total shareholders’ equity663,720 651,202 
Total liabilities and shareholders’ equity$1,583,490 $1,578,746 
The accompanying notes are an integral part of these consolidated financial statements.
2

Table of Contents
MYR GROUP INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Three months ended
March 31,
(in thousands, except per share data)20242023
Contract revenues$815,562 $811,616 
Contract costs729,319 727,224 
Gross profit86,243 84,392 
Selling, general and administrative expenses62,233 56,964 
Amortization of intangible assets1,228 1,226 
Gain on sale of property and equipment(1,489)(1,224)
Income from operations24,271 27,426 
Other income (expense):
Interest income142 321 
Interest expense(1,054)(586)
Other expense, net(263)(90)
Income before provision for income taxes23,096 27,071 
Income tax expense4,157 3,908 
Net income$18,939 $23,163 
Income per common share:
—Basic$1.13 $1.39 
—Diluted$1.12 $1.38 
Weighted average number of common shares and potential common shares outstanding:
—Basic16,711 16,618 
—Diluted16,837 16,824 
Net income$18,939 $23,163 
Other comprehensive income (loss):
Foreign currency translation adjustment(2,472)136 
Other comprehensive income (loss)(2,472)136 
Total comprehensive income$16,467 $23,299 
The accompanying notes are an integral part of these consolidated financial statements.
3

Table of Contents
MYR GROUP INC.
UNAUDITED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

PreferredCommon StockAdditional
Paid-In
Accumulated
Other
Comprehensive
Retained
(in thousands)StockSharesAmountCapitalIncome (Loss)EarningsTotal
Balance at December 31, 2022$ 16,564 $165 $161,427 $(6,300)$404,908 $560,200 
Net income— — — — — 23,163 23,163 
Stock issued under compensation plans, net— 211 2 18 — — 20 
Stock-based compensation expense— — — 1,982 — — 1,982 
Shares repurchased related to tax withholding for stock-based compensation— (76)— (7,194)— (742)(7,936)
Other comprehensive income— — — — 136 — 136 
Balance at March 31, 2023$ 16,699 $167 $156,233 $(6,164)$427,329 $577,565 
Balance at December 31, 2023$ 16,684 $167 $162,386 $(3,880)$492,529 $651,202 
Net income— — — — — 18,939 18,939 
Stock issued under compensation plans, net— 114 1 (1)— —  
Stock-based compensation expense— — 1,917 — — 1,917 
Shares repurchased related to tax withholding for stock-based compensation— (36)(1)(5,511)— (354)(5,866)
Other comprehensive loss— — — — (2,472)— (2,472)
Balance at March 31, 2024$ 16,762 $167 $158,791 $(6,352)$511,114 $663,720 
The accompanying notes are an integral part of these consolidated financial statements.
4

Table of Contents
MYR GROUP INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months ended
March 31,
(in thousands)20242023
Cash flows from operating activities:
Net income$18,939 $23,163 
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization of property and equipment14,602 12,763 
Amortization of intangible assets1,228 1,226 
Stock-based compensation expense1,917 1,982 
Gain on sale of property and equipment(1,489)(1,224)
Other non-cash items656 62 
Changes in operating assets and liabilities:
Accounts receivable, net(6,009)53,819 
Contract assets, net(30,962)(31,868)
Receivable for insurance claims in excess of deductibles197 (601)
Other assets13,409 15,921 
Accounts payable(30,990)(19,142)
Contract liabilities30,758 (6,312)
Accrued self-insurance(4,426)(2,561)
Other liabilities(140)(10,070)
Net cash flows provided by operating activities7,690 37,158 
Cash flows from investing activities:
Proceeds from sale of property and equipment1,879 1,539 
Purchases of property and equipment(25,783)(19,615)
Net cash flows used in investing activities(23,904)(18,076)
Cash flows from financing activities:
Borrowings under revolving lines of credit121,745 9,242 
Repayments under revolving lines of credit(117,463)(22,157)
Payment of principal obligations under equipment notes(2,591)(1,980)
Payment of principal obligations under finance leases(275)(302)
Proceeds from exercise of stock options 20 
Payments related to tax withholding for stock-based compensation(5,866)(7,936)
Net cash flows used in financing activities(4,450)(23,113)
Effect of exchange rate changes on cash(324)30 
Net decrease in cash and cash equivalents(20,988)(4,001)
Cash and cash equivalents:
Beginning of period24,899 51,040 
End of period$3,911 $47,039 
The accompanying notes are an integral part of these consolidated financial statements.
5

Table of Contents
MYR GROUP INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
1. Organization, Business and Basis of Presentation
Organization and Business
MYR Group Inc. (the “Company”) is a holding company of specialty electrical construction service providers conducting operations through wholly owned subsidiaries. The Company performs construction services in two business segments: Transmission and Distribution (“T&D”), and Commercial and Industrial (“C&I”). T&D customers include investor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners and other contractors. T&D provides a broad range of services on electric transmission, distribution networks, substation facilities, clean energy projects and electric vehicle charging infrastructure. T&D services include design, engineering, procurement, construction, upgrade, maintenance and repair services. C&I customers include general contractors, commercial and industrial facility owners, government agencies and developers. C&I provides a broad range of services, which include the design, installation, maintenance and repair of commercial and industrial wiring. Typical C&I contracts cover electrical contracting services for airports, hospitals, data centers, hotels, stadiums, commercial and industrial facilities, clean energy projects, manufacturing plants, processing facilities, water/waste-water treatment facilities, mining facilities, intelligent transportation systems, roadway lighting, signalization and electric vehicle charging infrastructure.
Basis of Presentation
Interim Consolidated Financial Information
The accompanying unaudited consolidated financial statements of the Company were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial reporting pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The Company believes that the disclosures made are adequate to make the information presented not misleading. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the financial position, results of operations, comprehensive income, shareholders’ equity and cash flows with respect to the interim consolidated financial statements, have been included. The consolidated balance sheet as of December 31, 2023 has been derived from the audited financial statements as of that date. The results of operations and comprehensive income are not necessarily indicative of the results for the full year or the results for any future periods. These financial statements should be read in conjunction with the audited financial statements and related notes for the year ended December 31, 2023, included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on February 28, 2024 (the "2023 Annual Report").
Joint Ventures and Noncontrolling Interests
The Company accounts for investments in joint ventures using the proportionate consolidation method for income statement reporting and under the equity method for balance sheet reporting, unless the Company has a controlling interest causing the joint venture to be consolidated with equity owned by other joint venture partners recorded as noncontrolling interests. As of March 31, 2024, the Company did not have a controlling interest in any current joint venture partnerships. Under the proportionate consolidation method, joint venture activity is allocated to the appropriate line items found on the consolidated statements of operations in proportion to the percentage of participation the Company has in the joint venture. Under the equity method the net investment in joint ventures is stated as a single item on the Company’s consolidated balance sheets. If an investment in a joint venture contains a recourse or unfunded commitments to provide additional equity, distributions and/or losses in excess of the investment, a liability is recorded in other current liabilities on the Company’s consolidated balance sheets.
6

Table of Contents
For joint ventures in which the Company does not have a controlling interest, the Company’s share of any profits and assets and its share of any losses and liabilities are recognized based on the Company’s stated percentage partnership interest in the joint venture and are typically recorded by the Company one month in arrears. The investments in joint ventures are recorded at cost and the carrying amounts are adjusted to recognize the Company’s proportionate share of cumulative income or loss, additional contributions made and dividends and capital distributions received. The Company records the effect of any impairment or any other-than-temporary decrease in the value of the joint venture investment as incurred, which may or may not be one month in arrears, depending on when the Company obtains the joint venture activity information. Additionally, the Company continually assesses the fair value of its investment in unconsolidated joint ventures despite using information that is one month in arrears for regular reporting purposes. The Company includes only its percentage ownership of each joint venture in its backlog.
Foreign Currency
The functional currency for the Company’s Canadian operations is the Canadian dollar. Assets and liabilities denominated in Canadian dollars are translated into U.S. dollars at the end-of-period exchange rate. Revenues and expenses are translated using average exchange rates for the periods reported. Equity accounts are translated at historical rates. Cumulative translation adjustments are included as a separate component of accumulated other comprehensive income (loss) in shareholders’ equity. Foreign currency transaction gains and losses, arising primarily from changes in exchange rates on short-term monetary assets and liabilities, and intercompany loans that are not deemed long-term investment accounts are recorded in the “other expense, net” line on the Company’s consolidated statements of operations. Foreign currency losses and gains, recorded in other expense, net, for the three months ended March 31, 2024 and 2023 were not significant. Foreign currency translation gains and losses, arising from intercompany loans that are deemed long-term investment accounts, are recorded in the foreign currency translation adjustment line on the Company’s consolidated statements of comprehensive income.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the period reported. Actual results could differ from those estimates.
The most significant estimates are related to estimates of costs to complete contracts, pending change orders and claims, shared savings, insurance reserves, income tax reserves, estimates surrounding stock-based compensation, acquisition-related contingent earn-out consideration liabilities, the recoverability of goodwill and intangibles and allowance for doubtful accounts. The Company estimates a cost accrual every quarter that represents costs incurred but not invoiced for services performed or goods delivered during the period, and estimates revenue from the contract cost portion of these accruals based on current gross margin rates to be consistent with its cost method of revenue recognition.
As of March 31, 2024 and December 31, 2023, the Company had recognized revenues of $87.4 million and $76.5 million, respectively, related to large change orders and/or claims that had been included as contract price adjustments on certain contracts, some of which are multi-year projects. These change orders and/or claims are in the process of being negotiated in the normal course of business, and a portion of these recognized revenues had been included in multiple periods.
The cost-to-cost method of accounting requires the Company to make estimates about the expected revenue and gross profit on each of its contracts in process. During the three months ended March 31, 2024, changes in estimates pertaining to certain projects decreased consolidated gross margin by 1.2%, which resulted in decreases in operating income of $9.8 million, net income of $6.9 million and diluted earnings per common share of $0.41. Additional discussion on the impact of these estimate changes can be found in Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Consolidated Results of Operations.”
During the three months ended March 31, 2023, changes in estimates pertaining to certain projects decreased consolidated gross margin by 0.6%, which resulted in decreases in operating income of $5.1 million, net income of $3.6 million and diluted earnings per common share of $0.21.
7

Table of Contents
Recent Accounting Pronouncements
Changes to U.S. GAAP are typically established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs. The Company, based on its assessment, determined that any recently issued or proposed ASUs are either not applicable to the Company or will have minimal impact on its consolidated financial statements when adopted.
In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant reportable segment expenses and other disclosure requirements. The update is effective for annual reporting periods beginning after December 15, 2023, with early adoption permitted. The guidance requires application on a retrospective basis. The Company is currently evaluating the impact of the new standard on its consolidated financial statements and disclosures.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which is intended to improve the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. The guidance also includes certain other amendments intended to improve the effectiveness of income tax disclosures. The update is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted. The amendments in this pronouncement should be applied on a prospective basis, with the option to apply them retrospectively. The Company is currently evaluating the impact of the new standard on the Company’s income tax disclosures.
2. Contract Assets and Liabilities
Contracts with customers usually stipulate the timing of payment, which is defined by the terms found within the various contracts under which work was performed during the period. Therefore, contract assets and liabilities are created when the timing of costs incurred on work performed does not coincide with the billing terms. These contracts frequently include retention provisions contained in each contract.
The Company’s consolidated balance sheets present contract assets, which contain unbilled revenue and contract retainages associated with contract work that has been completed and billed but not paid by customers, pursuant to retainage provisions, that are generally due once the job is completed and approved. The allowance for doubtful accounts associated with contract assets was $0.6 million as of March 31, 2024 and December 31, 2023, respectively.
Contract assets consisted of the following:
(in thousands)March 31,
2024
December 31,
2023
Change
Unbilled revenue, net$232,565 $217,083 $15,482 
Contract retainages, net218,176 203,533 14,643 
Contract assets, net$450,741 $420,616 $30,125 
The Company’s consolidated balance sheets present contract liabilities that contain deferred revenue and an accrual for contracts in a loss provision.
Contract liabilities consisted of the following:
(in thousands)March 31,
2024
December 31,
2023
Change
Deferred revenue$262,871 $231,604 $31,267 
Accrued loss provision8,093 8,807 (714)
Contract liabilities$270,964 $240,411 $30,553 
8

Table of Contents
The following table provides information about contract assets and contract liabilities from contracts with customers:
(in thousands)March 31,
2024
December 31,
2023
Change
Contract assets, net$450,741 $420,616 $30,125 
Contract liabilities(270,964)(240,411)(30,553)
Net contract assets$179,777 $180,205 $(428)
The difference between the opening and closing balances of the Company’s contract assets and contract liabilities primarily results from the timing of the Company’s billings in relation to its performance of work. The amounts of revenue recognized in the period that were included in the opening contract liability balances were $28.6 million for the three months ended March 31, 2024. The amounts of revenue recognized in the period that were included in the opening contract liability balances were $60.2 million for the three months ended March 31, 2023. This revenue consists primarily of work performed on previous billings to customers.
The net asset position for contracts in process consisted of the following:
(in thousands)March 31,
2024
December 31,
2023
Costs and estimated earnings on uncompleted contracts$6,667,250 $6,716,990 
Less: billings to date6,697,556 6,731,511 
$(30,306)$(14,521)
The net asset position for contracts in process is included within the contract asset and contract liability in the accompanying consolidated balance sheets as follows:
(in thousands)March 31,
2024
December 31,
2023
Unbilled revenue $232,565 $217,083 
Deferred revenue (262,871)(231,604)
$(30,306)$(14,521)

3. Lease Obligations
From time to time, the Company enters into non-cancelable leases for some of our facility, vehicle and equipment needs. These leases allow the Company to conserve cash by paying a monthly lease rental fee for the use of facilities, vehicles and equipment rather than purchasing them. The Company’s leases have remaining terms ranging from one to ten years, some of which may include options to extend the leases for up to six years, and some of which may include options to terminate the leases within one year. Currently, all the Company’s leases contain fixed payment terms. The Company may decide to cancel or terminate a lease before the end of its term, in which case we are typically liable to the lessor for the remaining lease payments under the term of the lease. Additionally, all of the Company's month-to-month leases are cancelable, by the Company or the lessor, at any time and are not included in our right-of-use asset or liability. At March 31, 2024, the Company had several leases with residual value guarantees. Typically, the Company has purchase options on the equipment underlying its long-term leases and many of its short-term rental arrangements. The Company may exercise some of these purchase options when the need for equipment is ongoing and the purchase option price is attractive. Leases are accounted for as operating or finance leases, depending on the terms of the lease.
9

Table of Contents
The following is a summary of the lease-related assets and liabilities recorded:
March 31,
2024
December 31,
2023
(in thousands)Classification on the Consolidated Balance Sheet
Assets
Operating lease right-of-use assetsOperating lease right-of-use assets$38,515 $35,012 
Finance lease right-of-use assetsProperty and equipment, net of accumulated depreciation2,174 2,363 
Total right-of-use lease assets$40,689 $37,375 
Liabilities
Current
Operating lease obligationsCurrent portion of operating lease obligations$9,918 $9,237 
Finance lease obligationsCurrent portion of finance lease obligations1,845 2,039 
Total current obligations11,763 11,276 
Non-current
Operating lease obligationsOperating lease obligations, net of current maturities28,592 25,775 
Finance lease obligationsFinance lease obligations, net of current maturities184 314 
Total non-current obligations28,776 26,089 
Total lease obligations$40,539 $37,365 
The following is a summary of the lease terms and discount rates:
March 31,
2024
December 31,
2023
Weighted-average remaining lease term - finance leases0.6 years0.9 years
Weighted-average remaining lease term - operating leases4.0 years4.0 years
Weighted-average discount rate - finance leases3.2 %3.1 %
Weighted-average discount rate - operating leases4.0 %4.0 %
The following is a summary of certain information related to the lease costs for finance and operating leases:
(in thousands)Three months ended
March 31,
20242023
Lease cost:
Finance lease cost:
Amortization of right-of-use assets$1,892 $1,206 
Interest on lease liabilities16 24 
Operating lease cost3,713 3,590 
Variable lease costs93 89 
Total lease cost$5,714 $4,909 
The following is a summary of other information and supplemental cash flow information related to finance and operating leases:
Three months ended March 31,
(in thousands)20242023
Other information:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$3,650 $3,616 
Right-of-use asset obtained in exchange for new operating lease obligations$4,864 $1,616 
10

Table of Contents
The future undiscounted minimum lease payments, as reconciled to the discounted minimum lease obligation indicated on the Company’s consolidated balance sheets, under financial leases, less interest, and under operating leases, less imputed interest, as of March 31, 2024 were as follows:
(in thousands)Finance
Lease Obligations
Operating Lease
Obligations
Total
Lease
Obligations
Remainder of 2024
$1,743 $10,306 $12,049 
2025313 12,194 12,507 
2026 9,960 9,960 
2027 5,342 5,342 
2028 4,087 4,087 
2029 2,354 2,354 
Thereafter 892 892 
Total minimum lease payments2,056 45,135 47,191 
Financing component(27)(6,625)(6,652)
Net present value of minimum lease payments2,029 38,510 40,539 
Less: current portion of finance and operating lease obligations(1,845)(9,918)(11,763)
Long-term finance and operating lease obligations$184 $28,592 $28,776 
The financing component for finance lease obligations represents the interest component of finance leases that will be recognized as interest expense in future periods. The financing component for operating lease obligations represents the effect of discounting the lease payments to their present value.
Certain subsidiaries of the Company have operating leases for facilities from third party companies that are owned, in whole or part, by employees of the subsidiaries. The terms and rental rates of these leases are at or below market rental rates. Lease expense associated with these leases was $0.6 million for the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, the minimum lease payments required under these leases totaled $12.1 million, which are due over the next 5.4 years.
4. Fair Value Measurements
The Company uses the three-tier hierarchy of fair value measurement, which prioritizes the inputs used in measuring fair value based upon their degree of availability in external active markets. These tiers include: Level 1 (the highest priority), defined as observable inputs, such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3 (the lowest priority), defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
As of March 31, 2024 and December 31, 2023, the Company determined that the carrying value of cash and cash equivalents approximated fair value based on Level 1 inputs. As of March 31, 2024 and December 31, 2023, the fair value of the Company’s long-term debt and finance lease obligations was based on Level 2 inputs. The Company’s long-term debt was based on variable and fixed interest rates at March 31, 2024 and December 31, 2023, for new issues with similar remaining maturities, and approximated carrying value. In addition, based on borrowing rates currently available to the Company for borrowings with similar terms, the carrying value of the Company’s finance lease obligations also approximated fair value.
11

Table of Contents
As of March 31, 2024, the fair value of the Company’s contingent earn-out consideration liability associated with the acquisition of Powerline Plus Ltd. and its affiliate PLP Redimix Ltd. (collectively, the “Powerline Plus Companies") on January 4, 2022, was based on Level 3 inputs. The contingent earn-out consideration recorded represents the estimated fair value of future amounts potentially payable to the former owners of the acquired Powerline Plus Companies, if the Powerline Plus Companies achieve certain performance targets over a three-year post-acquisition period. The fair value was initially determined using a Monte Carlo simulation valuation methodology based on probability-weighted performance projections and other inputs, including a discount rate and an expected volatility factor. The fair value of this contingent earn-out consideration liability will be evaluated on an ongoing basis by management. Accordingly, the level of inputs used for these fair value measurements is the lowest level (Level 3). Significant changes in any of these assumptions could result in a significantly higher or lower potential liability. As of the acquisition date, the fair value of the contingent earn-out consideration was $0.9 million. As of March 31, 2024 and December 31, 2023, the fair value of the contingent earn-out consideration was zero. The future payout of the contingent earn-out consideration, if any, is unlimited and could be significantly higher than the acquisition date fair value. If the minimum thresholds of the performance targets are achieved the contingent earn-out consideration payment will be approximately $16.6 million. There were no changes in contingent earn-out consideration during the three months ended March 31, 2024 and 2023. Any changes in contingent earn-out consideration are recorded in other income.
5. Debt
The table below reflects the Company’s total debt, including borrowings under its credit agreement and master loan agreements for equipment notes:
(dollar amounts in thousands)Inception DateStated Interest
Rate (per annum)
Payment
Frequency
Term
(years)
Outstanding
Balance as of
March 31, 2024
Outstanding
Balance as of
December 31, 2023
Credit Agreement
Revolving loans5/31/2023VariableVariable5$17,483 $13,201 
Equipment Notes
Equipment Note 812/27/20192.75%Semi-annual52,345 2,871 
Equipment Note 108/26/20224.32%Semi-annual518,064 20,125 
Other equipment note4/11/20224.55%Monthly540 44 
20,449 23,040 
Total debt37,932 36,241 
Less: current portion of long-term debt(6,617)(7,053)
Long-term debt$31,315 $29,188 
Credit Agreement
On May 31, 2023, the Company entered into a five-year third amended and restated credit agreement (the “Credit Agreement”) with a syndicate of banks led by JPMorgan Chase Bank, N.A. and Bank of America, N.A. that provides for a $490 million revolving credit facility (the “Facility”), subject to certain financial covenants as defined in the Credit Agreement. The Facility allows for revolving loans in Canadian dollars and other non-US currencies, up to the U.S. dollar equivalent of $150 million. Up to $75 million of the Facility may be used for letters of credit, with an additional $75 million available for letters of credit, subject to the sole discretion of each issuing bank. The Facility also allows for $15 million to be used for swingline loans. The Company has an expansion option to increase the commitments under the Facility or enter into incremental term loans, subject to certain conditions, by up to an additional $200 million upon receipt of additional commitments from new or existing lenders. Subject to certain exceptions, the Facility is secured by substantially all of the assets of the Company and its domestic subsidiaries, and by a pledge of substantially all of the capital stock of the Company’s domestic subsidiaries and 65% of the capital stock of the direct foreign subsidiaries of the Company. Additionally, subject to certain exceptions, the Company’s domestic subsidiaries also guarantee the repayment of all amounts due under the Credit Agreement. The Credit Agreement provides for customary events of default. If an event of default occurs and is continuing, on the terms and subject to the conditions set forth in the Credit Agreement, amounts outstanding under the Facility may be accelerated and may become or be declared immediately due and payable. Borrowings under the Credit Agreement are used to refinance existing indebtedness, and to provide for future working capital, capital expenditures, acquisitions and other general corporate purposes.
12

Table of Contents
Amounts borrowed under the Credit Agreement bear interest, at the Company’s option, at a rate equal to either (1) the Alternate Base Rate (as defined in the Credit Agreement), plus an applicable margin ranging from 0.25% to 1.00%; or (2) the Term Benchmark Rate (as defined in the Credit Agreement) plus an applicable margin ranging from 1.25% to 2.00%. The applicable margin is determined based on the Company’s Net Leverage Ratio (as defined in the Credit Agreement). The Credit Agreement establishes Adjusted Term Secured Overnight Financing Rate (“SOFR”) (as defined in the Credit Agreement) as the benchmark rate in replacement of LIBOR. Letters of credit issued under the Facility are subject to a letter of credit fee of 1.25% to 2.00% for non-performance letters of credit or 0.625% to 1.00% for performance letters of credit, based on the Company’s Net Leverage Ratio. The Company is subject to a commitment fee of 0.20% to 0.30%, based on the Company’s Net Leverage Ratio, on any unused portion of the Facility. The Credit Agreement restricts certain types of payments when the Company’s Net Leverage Ratio, after giving pro forma effect thereto, exceeds 2.75. The weighted average interest rate on borrowings outstanding on the Facility for the three months ended March 31, 2024, was 7.56% per annum.
Under the Credit Agreement, the Company is subject to certain financial covenants including a maximum Net Leverage Ratio of 3.0 and a minimum Interest Coverage Ratio (as defined in the Credit Agreement) of 3.0. The Credit Agreement also contains covenants including limitations on asset sales, investments, indebtedness and liens. The Company was in compliance with all of its financial covenants under the Credit Agreement as of March 31, 2024.
As of March 31, 2024, the Company had $17.5 million of borrowings outstanding under the Facility and letters of credit outstanding under the Facility of approximately $38.2 million, including $27.1 million related to the Company's payment obligation under its insurance programs and approximately $11.1 million related to contract performance obligations.
As of December 31, 2023, the Company had $13.2 million of borrowings outstanding under the Facility and letters of credit outstanding under the Facility of approximately $34.4 million, including $27.1 million related to the Company's payment obligation under its insurance programs and approximately $7.3 million related to contract performance obligations.
The Company had remaining deferred debt issuance costs totaling $2.1 million as of March 31, 2024, related to the line of credit. As permitted, debt issuance costs have been deferred and are presented as an asset within other assets, which is amortized as interest expense over the term of the line of credit.
Equipment Notes
The Company has entered into Master Equipment Loan and Security Agreements (the “Master Loan Agreements”) with multiple finance companies. The Master Loan Agreements may be used for the financing of equipment between the Company and the lenders pursuant to one or more equipment notes ("Equipment Note"). Each Equipment Note executed under the Master Loan Agreements constitutes a separate, distinct and independent financing of equipment and a contractual obligation of the Company, which may contain prepayment clauses.
As of March 31, 2024, the Company had two Equipment Notes outstanding under the Master Loan Agreements that are collateralized by equipment and vehicles owned by the Company. As of March 31, 2024, the Company had one other equipment note outstanding that is collateralized by a vehicle owned by the Company. The following table sets forth our remaining principal payments for all of the Company’s outstanding equipment notes as of March 31, 2024:
(in thousands)Future
Equipment Notes
Principal Payments
Remainder of 2024
$4,461 
20254,364 
20264,555 
20277,069 
2028 
2029 
Total future principal payments20,449 
Less: current portion of equipment notes(6,617)
Long-term principal obligations$13,832 
13

Table of Contents
6. Revenue Recognition
Disaggregation of Revenue
A majority of the Company’s revenues are earned through contracts with customers that normally provide for payment upon completion of specified work or units of work as identified in the contract. Although there is considerable variation in the terms of these contracts, they are primarily structured as fixed-price contracts, under which the Company agrees to perform a defined scope of a project for a fixed amount, or unit-price contracts, under which the Company agrees to do the work at a fixed price per unit of work as specified in the contract. The Company also enters into time-and-equipment and time-and-materials contracts under which the Company is paid for labor and equipment at negotiated hourly billing rates and for other expenses, including materials, as incurred at rates agreed to in the contract. Finally, the Company sometimes enters into cost-plus contracts, where the Company is paid for costs plus a negotiated margin. On occasion, time-and-equipment, time-and-materials and cost-plus contracts require the Company to include a guaranteed not-to-exceed maximum price.
Historically, fixed-price and unit-price contracts have had the highest potential margins; however, they have had a greater risk in terms of profitability because cost overruns may not be recoverable. Time-and-equipment, time-and-materials and cost-plus contracts have historically had less margin upside, but generally have had a lower risk of cost overruns. The Company also provides services under master service agreements (“MSAs”) and other variable-term service agreements. MSAs normally cover maintenance, upgrade and extension services, as well as new construction. Work performed under MSAs is typically billed on a unit-price, time-and-materials or time-and-equipment basis. MSAs are typically one to three years in duration; however, most of the Company’s contracts, including MSAs, may be terminated by the customer on short notice, typically 30 to 90 days, even if the Company is not in default under the contract. Under MSAs, customers generally agree to use the Company for certain services in a specified geographic region. Most MSAs include no obligation for the contract counterparty to assign specific volumes of work to the Company and do not require the counterparty to use the Company exclusively, although in some cases the MSA contract gives the Company a right of first refusal for certain work. Additional information related to the Company’s market types is provided in Note 10–Segment Information.
The components of the Company’s revenue by contract type for the three months ended March 31, 2024 and 2023 were as follows:
Three months ended March 31, 2024
T&DC&ITotal
(dollars in thousands)AmountPercentAmountPercentAmountPercent
Fixed price$243,000 49.5 %$264,800 81.5 %$507,800 62.3 %
Unit price136,12527.8 16,3365.0 152,46118.7 
T&E111,270 22.7 44,031 13.5 155,301 19.0 
$490,395 100.0 %$325,167 100.0 %$815,562 100.0 %
Three months ended March 31, 2023
T&DC&ITotal
(dollars in thousands)AmountPercentAmountPercentAmountPercent
Fixed price$229,234 51.5 %$305,621 83.4 %$534,855 65.9 %
Unit price113,709 25.5 17,642 4.8 131,351 16.2 
T&E102,381 23.0 43,029 11.8 145,410 17.9 
$445,324 100.0 %$366,292 100.0 %$811,616 100.0 %
14

Table of Contents

The components of the Company’s revenue by market type for the three months ended March 31, 2024 and 2023 were as follows:
Three months ended March 31, 2024Three months ended March 31, 2023
(dollars in thousands)AmountPercentSegmentAmountPercentSegment
Transmission
$313,926 38.5 %T&D$298,098 36.7 %T&D
Distribution
176,469 21.6 T&D147,226 18.2 T&D
Electrical construction
325,167 39.9 C&I366,292 45.1 C&I
Total revenue$815,562 100.0 %$811,616 100.0 %
Remaining Performance Obligations
As of March 31, 2024, the Company had $2.22 billion of remaining performance obligations. The Company’s remaining performance obligations include projects that have a written award, a letter of intent, a notice to proceed or an agreed upon work order to perform work on mutually accepted terms and conditions. The timing of when remaining performance obligations are recognized is evaluated quarterly and is largely driven by the estimated start date and duration of the underlying projects.
The following table summarizes the amount of remaining performance obligations as of March 31, 2024 that the Company expects to be realized and the amount of the remaining performance obligations that the Company reasonably estimates will be recognized within the next twelve months, and the amount estimated to be recognized after the next twelve months.
Remaining Performance Obligations at March 31, 2024
(in thousands)TotalAmount estimated to be recognized within 12 monthsAmount estimated to be recognized after 12 months
T&D$674,812 $614,410 $60,402 
C&I1,544,717 1,109,414 435,303 
Total$2,219,529 $1,723,824 $495,705 
The Company estimates approximately 95% or more of the remaining performance obligations will be recognized within twenty-four months, including approximately 80% of the remaining performance obligations estimated to be recognized within twelve months, although the timing of the Company’s performance is not always under its control. The timing of when remaining performance obligations are recognized by the Company can vary considerably and is impacted by multiple variables including, but not limited to: changes in the estimated versus actual start time of a project; the availability of labor, equipment and materials; changes in project workflow; weather; project delays and accelerations; and the timing of final contract settlements. Additionally, the difference between the remaining performance obligations and backlog is due to the exclusion of a portion of the Company’s MSAs under certain contract types from the Company’s remaining performance obligations as these contracts can be canceled for convenience at any time by the Company or the customer without considerable cost incurred by the customer. Additional information related to backlog is provided in Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
7. Income Taxes
The U.S. federal statutory tax rate was 21% for each of the three months ended March 31, 2024 and 2023. The Company’s effective tax rate for the three months ended March 31, 2024 was 18.0% of pretax income compared to the effective tax rate for the three months ended March 31, 2023 of 14.4%.
The difference between the U.S. federal statutory tax rate and the Company’s effective tax rate for the three months ended March 31, 2024 and March 31, 2023, was primarily due to a favorable impact from stock compensation excess tax benefits partially offset by state income taxes, Canadian taxes and other permanent difference items.
The Company has recorded a liability for unrecognized tax benefits of approximately $0.8 million and $0.5 million as of March 31, 2024 and December 31, 2023, respectively, which were included in other liabilities in the accompanying consolidated balance sheets.
15

Table of Contents
The Company’s policy is to recognize interest and penalties related to income tax liabilities as a component of income tax expense in the consolidated statements of operations. The amount of interest and penalties charged to income tax expense related to unrecognized tax benefits was not significant for the three months ended March 31, 2024 and 2023.
The Company is subject to taxation in various jurisdictions. The Company’s 2020 through 2022 tax returns are subject to examination by U.S. federal authorities. The Company’s tax returns are subject to examination by various state authorities for the years 2019 through 2022.
8. Commitments and Contingencies
Purchase Commitments
As of March 31, 2024, the Company had approximately $26.9 million in outstanding purchase orders for certain construction equipment, with cash payments scheduled to occur in 2024.
Insurance and Claims Accruals
The Company carries insurance policies, which are subject to certain deductibles and limits, for workers’ compensation, general liability, automobile liability and other insurance coverage. The deductible per occurrence for each line of coverage is up to $1.0 million. The Company’s health benefit plans are subject to stop-loss limits of up to $0.2 million for qualified individuals. Losses up to the deductible and stop-loss amounts are accrued based upon the Company’s estimates of the ultimate liability for claims reported and an estimate of claims incurred but not yet reported.
The insurance and claims accruals are based on known facts, actuarial estimates and historical trends. While recorded accruals are based on the ultimate liability, which includes amounts in excess of the deductible, a corresponding receivable for amounts in excess of the deductible is included in current and long-term assets in the Company’s consolidated balance sheets.
Performance and Payment Bonds and Parent Guarantees
In certain circumstances, the Company is required to provide performance and payment bonds in connection with its future performance on certain contractual commitments. The Company has indemnified its sureties for any expenses paid out under these bonds. As of March 31, 2024, an aggregate of approximately $2.59 billion in original face amount of bonds issued by the Company’s sureties were outstanding. The Company estimated the remaining cost to complete these bonded projects was approximately $660.8 million as of March 31, 2024.
From time to time, the Company guarantees the obligations of wholly owned subsidiaries, including obligations under certain contracts with customers, certain lease agreements, and, in some states, obligations in connection with obtaining contractors’ licenses. Additionally, from time to time the Company is required to post letters of credit to guarantee the obligations of wholly owned subsidiaries, which reduces the borrowing availability under the Facility.
Indemnities
From time to time, pursuant to its service arrangements, the Company indemnifies its customers for claims related to the services it provides under those service arrangements. These indemnification obligations may subject the Company to indemnity claims, liabilities and related litigation. The Company is not aware of any material unrecorded liabilities for asserted claims in connection with these indemnification obligations.
Collective Bargaining Agreements
Most of the Company’s subsidiaries’ craft labor employees are covered by collective bargaining agreements. The agreements require the subsidiaries to pay specified wages, provide certain benefits and contribute certain amounts to multi-employer pension plans. If a subsidiary withdraws from any of the multi-employer pension plans or if the plans were to otherwise become underfunded, the subsidiary could incur liabilities for additional contributions related to these plans. Although the Company has been informed that the status of some multi-employer pension plans to which its subsidiaries contribute have been classified as “critical”, the Company is not currently aware of any potential liabilities related to this issue.
16

Table of Contents
Litigation and Other Legal Matters
The Company is from time to time party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business. These actions typically seek, among other things, compensation for alleged personal injury, breach of contract, property damages, punitive damages, civil penalties or other losses, or injunctive or declaratory relief.
The Company is routinely subject to other civil claims, litigation and arbitration, and regulatory investigations arising in the ordinary course of business. These claims, lawsuits and other proceedings include claims related to the Company’s current services and operations, as well as our historic operations.
With respect to all such lawsuits, claims and proceedings, the Company records reserves when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. The Company does not believe that any of these proceedings, separately or in the aggregate, would be expected to have a material adverse effect on the Company’s financial condition, results of operations or cash flows.
9. Stock-Based Compensation
The Company maintains an equity compensation plan under which stock-based compensation has been granted: the 2017 Long-Term Incentive Plan (Amended and Restated as of April 23, 2020) (the “LTIP”). The LTIP was approved by our shareholders and provides for grants of (a) incentive stock options qualified as such under U.S. federal income tax laws, (b) stock options that do not qualify as incentive stock options, (c) stock appreciation rights, (d) restricted stock awards, (e) restricted stock units, (f) performance awards, (g) phantom stock, (h) stock bonuses, (i) dividend equivalents, or (j) any combination of such grants. The Company has outstanding grants of time-vested stock awards in the form of restricted stock units and internal metric-based and market-based performance stock units.
During the three months ended March 31, 2024, the Company granted time-vested stock awards covering 35,743 shares of common stock under the LTIP, which vest ratably over three years for employee awards, at a weighted average grant date fair value of $172.52. During the three months ended March 31, 2024, time-vested stock awards covering 36,015 shares of common stock vested at a weighted average grant date fair value of $94.84.
During the three months ended March 31, 2024, the Company granted 29,566 performance share awards under the LTIP at target, which will cliff vest, if earned, on December 31, 2026, at a weighted average grant date fair value of $197.89. The number of shares ultimately earned under a performance award may vary from zero to 200% of the target shares granted, based upon the Company’s performance compared to certain financial and other metrics. The metrics used were determined at the time of the grant by the Compensation Committee of the Board of Directors and were either based on internal measures, such as the Company’s financial performance compared to targets, or on a market-based metric, such as the Company’s stock performance compared to a peer group. Performance awards granted cliff vest following the performance period if the stated performance targets and minimum service requirements are attained and are paid in shares of the Company’s common stock.
The Company recognizes stock-based compensation expense related to restricted stock units based on the grant date fair value, which was the closing price of the Company’s stock on the date of grant. The fair value is expensed over the service period, which is generally three years.
For performance awards, the Company recognizes stock-based compensation expense based on the grant date fair value of the award. The fair value of internal metric-based performance awards is determined by the closing stock price of the Company’s common stock on the date of the grant. The fair value of market-based performance awards is computed using a Monte Carlo simulation. Performance awards are expensed over the service period of approximately 2.8 years, and the Company adjusts the stock-based compensation expense related to internal metric-based performance awards according to its determination of the shares expected to vest at each reporting date.
17

Table of Contents
10. Segment Information
MYR Group is a holding company of specialty contractors serving electrical utility infrastructure and commercial construction markets in the United States and Canada. The Company has two reporting segments, each a separate operating segment, which are referred to as T&D and C&I. Performance measurement and resource allocation for the reporting segments are based on many factors. The primary financial measures used to evaluate the segment information are contract revenues and income from operations, excluding general corporate expenses. General corporate expenses include corporate facility and staffing costs, which include safety costs, professional fees, IT expenses and management fees. The accounting policies of the segments are the same as those described in the Note 1–Organization, Business and Significant Accounting Policies to the 2023 Annual Report.
Transmission and Distribution: The T&D segment provides a broad range of services on electric transmission and distribution networks and substation facilities which include design, engineering, procurement, construction, upgrade, maintenance and repair services with a particular focus on construction, maintenance and repair. T&D services include the construction and maintenance of high voltage transmission lines, substations and lower voltage underground and overhead distribution systems, clean energy projects and electric vehicle charging infrastructure. The T&D segment also provides emergency restoration services. T&D 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: The C&I segment provides services such as the design, installation, maintenance and repair of commercial and industrial wiring, the installation of intelligent transportation systems, roadway lighting, signalization and electric vehicle charging infrastructure. Typical C&I contracts cover electrical contracting services for airports, hospitals, data centers, hotels, stadiums, commercial and industrial facilities, clean energy projects, manufacturing plants, processing facilities, water/waste-water treatment facilities, mining facilities, and transportation control and management systems. The C&I segment generally provides electric construction and maintenance services as a subcontractor to general contractors in the C&I industry, but also contracts directly with facility owners. The C&I segment has a diverse customer base with many long-standing relationships.
The information in the following table is derived from the segment’s internal financial reports used for corporate management purposes:
Three months ended
March 31,
(in thousands)20242023
Contract revenues:
T&D$490,395 $445,324 
C&I325,167366,292
$815,562 $811,616 
Income from operations:
T&D$29,837 $32,821 
C&I11,423 10,627 
General Corporate(16,989)(16,022)
$24,271 $27,426 
11. Earnings Per Share
The Company computes earnings per share using the treasury stock method. Under the treasury stock method, basic earnings per share are computed by dividing net income by the weighted average number of common shares outstanding during the period, and diluted earnings per share are computed by dividing net income by the weighted average number of common shares outstanding during the period plus all potentially dilutive common stock equivalents, except in cases where the effect of the common stock equivalent would be anti-dilutive.
18

Table of Contents
Net income and the weighted average number of common shares used to compute basic and diluted earnings per share were as follows:
Three months ended
March 31,
(in thousands, except per share data)20242023
Numerator:
Net income$18,939 $23,163 
Denominator:
Weighted average common shares outstanding16,711 16,618 
Weighted average dilutive securities126206
Weighted average common shares outstanding, diluted16,837 16,824 
Income per common share:
Basic$1.13 $1.39 
Diluted$1.12 $1.38 
For the three months ended March 31, 2024 and 2023, certain common stock equivalents were excluded from the calculation of dilutive securities because their inclusion would have been anti-dilutive.
The following table summarizes the shares of common stock underlying the Company’s unvested time-vested stock awards and performance awards that were excluded from the calculation of dilutive securities:
Three months ended
March 31,
(in thousands)20242023
Time-vested stock awards36 45 
Performance awards30 33 
Share Repurchases
During the three months ended March 31, 2024 the Company repurchased 36,397 shares of stock, for approximately $5.9 million, from its employees to satisfy tax obligations on shares vested under the LTIP. During the three months ended March 31, 2023 the Company repurchased 76,150 shares of stock, for approximately $7.9 million, from its employees to satisfy tax obligations on shares vested under the LTIP.
On November 1, 2023, the Company announced that its Board of Directors had authorized a $75.0 million share repurchase program (the "Repurchase Program"), which became effective on November 9, 2023. The Repurchase Program will expire on May 8, 2024, or when the authorized funds are exhausted, whichever is earlier. During the three months ended March 31, 2024, the Company had no repurchases of its common stock under the Repurchase Program. As of March 31, 2024, the Company had $72.5 million of remaining availability to repurchase shares of the Company’s common stock under the Repurchase Program.
19

Table of Contents
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This management’s discussion and analysis provides a narrative on the Company’s financial performance and condition that should be read in conjunction with the accompanying unaudited consolidated financial statements and with our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report”). In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from management’s expectations. Factors that could cause such differences are discussed herein under the captions “Cautionary Statement Concerning Forward-Looking Statements and Information” and “Risk Factors,” as well as in the 2023 Annual Report. We assume no obligation to update any of these forward-looking statements.
Overview and Outlook
We are a holding company of specialty electrical construction service providers that was established in 1995 through the merger of long-standing specialty contractors. Through our subsidiaries, we serve the electric utility infrastructure, commercial and industrial construction markets. We manage and report our operations through two electrical contracting service segments: Transmission and Distribution (“T&D”) and Commercial and Industrial (“C&I”).
We have operated in the transmission and distribution industry since 1891. We are one of the largest U.S. contractors servicing the T&D sector of the electric utility industry and provide T&D services throughout the United States and in Ontario, Canada. Our T&D customers include many of the leading companies in the electric utility industry. We have provided electrical contracting services for commercial and industrial construction since 1912. Our C&I segment provides services in the United States and in western Canada. Our C&I customers include facility owners and general contractors. We strive to maintain our
status as a preferred provider to our T&D and C&I customers.
We believe that we have a number of competitive advantages in both of our segments, including our skilled workforce, extensive centralized fleet, proven safety performance and reputation for timely completion of quality work that allows us to compete favorably in our markets. In addition, we believe that we are better capitalized than some of our competitors, which provides us with valuable flexibility to take on additional and more complex projects.
We believe legislative actions aimed at supporting infrastructure improvements in the United States may positively impact long-term demand, particularly in connection with electric power infrastructure, transportation and clean energy spending. We believe the legislative actions are likely to provide greater long-term opportunity in both of our reporting segments. However, we expect our financial results, in both of our segments, to continue to be affected by delays and cost volatility through 2024, due to supply chain disruptions, inflationary pressures, tariffs and regulatory slowdowns. These factors will cause us to carry impacted projects at lower margins until their completion and may result in decelerations in project opportunities and awards.
We had consolidated revenues for the three months ended March 31, 2024 of $815.6 million, of which 60.1% was attributable to our T&D customers and 39.9% was attributable to our C&I customers. Our consolidated revenues for the three months ended March 31, 2023 were $811.6 million. For the three months ended March 31, 2024, our net income and EBITDA(1) were $18.9 million and $39.8 million, respectively, compared to $23.2 million and $41.3 million, respectively, for the three months ended March 31, 2023.
We believe there is an ongoing need for utilities to sustain investment in their transmission systems to improve reliability, reduce congestion and connect to new clean energy sources. Consequently, we believe that we will continue to see continued bidding activity on large transmission projects going forward. The timing of multi-year transmission project awards and substantial construction activity is difficult to predict due to regulatory requirements and the permitting needed to commence construction. Significant construction on any large, multi-year projects awarded in the remainder of 2024 will not likely have a large impact on 2024 results. Bidding and construction activity for small to medium-size transmission projects and upgrades remain active, and we expect this trend to continue.
We believe there is a need for further investment by utilities on their distribution systems to properly maintain or meet reliability requirements. We continue to see strong bidding activity in some of our electric distribution markets. We believe the increased storm activity and destruction caused by wildfires will cause a push to strengthen utility distribution systems against catastrophic damage. Distribution systems may also require upgrades to accommodate additional distributed energy resources and increased electrification. We expect to see an incremental increase in distribution opportunities in some of the markets we serve during the rest of 2024.
(1) EBITDA is a non-GAAP measure. Refer to “Non-GAAP Measure—EBITDA” for a discussion of this measure.
20

Table of Contents
Although our C&I bidding opportunities remain strong, we may see impacts due to continued market disruptions and overall market volatility which could result in slower growth of our C&I segment. We believe that the primary markets we serve such as health care, transportation, data centers, warehousing, clean energy and water/waste-water projects, may be somewhat less vulnerable to an economic slowdown.
In addition, the United States has experienced decades of underfunded economic expansion and aging infrastructure that have challenged the capacity of public water and transportation infrastructure forcing states and municipalities to seek creative means to fund needed expansion and repair. We believe the need for expanding public infrastructure will offer opportunity in our C&I segment for several years. Legislation and regulation that promotes domestic manufacturing could also create opportunity for our C&I segment. We expect the long-term growth in our C&I segment to generally track the overall growth of the regions we serve.
We continue to implement strategies that are designed to further expand our capabilities and effectively allocate capital. We have focused on strengthening our balance sheet by maintaining a low level of variable rate outstanding debt in the current higher interest rate environment and by increasing our revolving credit facility to $490 million on May 31, 2023. This expanded availability of liquidity will allow us to take advantage of future opportunities as they arise. Additionally, as of March 31, 2024, we had $72.5 million of remaining availability to purchase shares under our share repurchase program, which continues in effect until May 8, 2024, or until the authorized funds are exhausted.
We continue to manage our increasing operating costs, including increasing insurance, equipment, labor and material costs. We believe that our financial position, positive cash flows and other operational strengths will enable us to respond to challenges and uncertainties in the markets we serve and give us the flexibility to successfully execute our strategy. We continue to invest in developing key management and craft personnel in both our T&D and C&I segments and in procuring the specific specialty equipment and tooling needed to win and execute projects of all sizes and complexity.
Backlog
We refer to our estimated revenue on uncompleted contracts, including the amount of revenue on contracts for which work has not begun, less the revenue we have recognized under such contracts, as “backlog.” A customer’s intention to award us work under a fixed-price contract is not included in backlog unless there is an actual written award to perform a specific scope of work at specific terms and pricing. For many of our unit-price, time-and-equipment, time-and-materials and cost plus contracts, we only include projected revenue for a three-month period in the calculation of backlog, although these types of contracts are generally awarded as part of master service agreements that typically have a one-year to three-year duration from execution. Backlog may not accurately represent the revenues that we expect to realize during any particular period. Several factors, such as the timing of contract awards, the type and duration of contracts, and the mix of subcontractor and material costs in our projects, can impact our backlog at any point in time. Some of our revenue does not appear in our periodic backlog reporting because the award of the project, as well as the execution of the work, may all take place within the period. Our backlog includes projects that have a written award, a letter of intent, a notice to proceed or an agreed upon work order to perform work on mutually accepted terms and conditions. Backlog should not be relied upon as a stand-alone indicator of future events.
The difference between our backlog and remaining performance obligations is due to the exclusion of a portion of our master service agreements under certain contract types from our remaining performance obligations as these contracts can be canceled for convenience at any time by us or the customer without considerable cost incurred by the customer. Our estimated backlog also includes our proportionate share of unconsolidated joint venture contracts. Additional information related to our remaining performance obligations is provided in Note 6–Revenue Recognition in the accompanying notes to our Consolidated Financial Statements.
Our backlog was $2.43 billion at March 31, 2024, compared to $2.51 billion at December 31, 2023 and $2.67 billion at March 31, 2023. Our backlog at March 31, 2024 decreased $87.1 million from December 31, 2023. Backlog in the T&D segment decreased $106.4 million and C&I backlog increased $19.3 million compared to December 31, 2023. Our backlog as of March 31, 2024 included our proportionate share of joint venture backlog totaling $4.0 million, compared to $18.9 million at December 31, 2023.
21

Table of Contents
The following table summarizes that amount of our backlog that we believe to be firm as of the dates shown and the amount of our current backlog that we reasonably estimate will not be recognized within the next twelve months, and the amount estimated to be recognized after the next twelve months:
Backlog at March 31, 2024
(in thousands)TotalAmount estimated to be
recognized within 12 months
Amount estimated to be
recognized after 12 months
Total backlog at December 31, 2023
T&D$853,183 $792,781 $60,402 $959,553 
C&I1,572,134 1,136,831 435,303 1,552,846 
Total$2,425,317 $1,929,612 $495,705 $2,512,399 

Consolidated Results of Operations
The following table sets forth selected consolidated statements of operations data and such data as a percentage of revenues for the periods indicated:
Three months ended
March 31,
20242023
(dollars in thousands)AmountPercentAmountPercent
Contract revenues$815,562 100.0 %$811,616 100.0 %
Contract costs729,319 89.4 727,224 89.6 
Gross profit86,243 10.6 84,392 10.4 
Selling, general and administrative expenses62,233 7.6 56,964 7.0 
Amortization of intangible assets1,228 0.2 1,226 0.2 
Gain on sale of property and equipment(1,489)(0.2)(1,224)(0.2)
Income from operations24,271 3.0 27,426 3.4 
Other income (expense):
Interest income142 — 321 — 
Interest expense(1,054)(0.1)(586)(0.1)
Other expense, net(263)— (90)— 
Income before provision for income taxes23,096 2.9 27,071 3.3 
Income tax expense4,157 0.6 3,908 0.4 
Net income$18,939 2.3 %$23,163 2.9 %
Three Months Ended March 31, 2024 Compared to Three Months Ended March 31, 2023
Revenues. Revenues increased $4.0 million or 0.5%, to $815.6 million for the three months ended March 31, 2024 from $811.6 million for the three months ended March 31, 2023. The increase was primarily due to an increase of $29.3 million in revenue on distribution projects and an increase of $15.8 million in revenue on transmission projects, offset by a decrease of $41.1 million in C&I revenue.
Gross margin. Gross margin for the three months ended March 31, 2024 increased to 10.6% compared to 10.4% for the three months ended March 31, 2023. Favorable joint venture results increased gross margin by approximately 0.6% during the three months ended March 31, 2024. This improvement in gross margin was partially offset by significant changes in our estimated gross profit on certain projects resulting in a net gross margin decrease of 1.2% for the three months ended March 31, 2024, compared to a net decrease of 0.6% for the three months ended March 31, 2023. During the three months ended March 31, 2024, significant estimate changes negatively impacted gross margin by 3.0%, largely related to labor and project inefficiencies, some of which were caused by inclement weather experienced on certain projects, rising costs associated with supply chain disruptions, an unfavorable change order and an unfavorable job closeout. In addition, significant estimate changes in gross profit positively impacted gross margin by 1.8% and mainly related to better-than-anticipated productivity, favorable change orders and a favorable job closeout.
22

Table of Contents
Gross profit. Gross profit was $86.2 million for the three months ended March 31, 2024 compared to $84.4 million for the three months ended March 31, 2023. The increase of $1.8 million, or 2.2%, was due to higher revenues and higher margin.
Selling, general and administrative expenses. Selling, general and administrative expenses were $62.2 million for the three months ended March 31, 2024 compared to $57.0 million for the three months ended March 31, 2023. The period-over-period increase of $5.2 million was primarily due to an increase in employee-related expenses, an increase of $1.7 million related to contingent compensation expense related to a prior acquisition and an increase in employee incentive compensation costs.
Gain on sale of property and equipment. Gains from the sale of property and equipment for the three months ended March 31, 2024 were $1.5 million compared to $1.2 million for the three months ended March 31, 2023. Gains from the sale of property and equipment are attributable to routine sales of property and equipment no longer useful or valuable to our ongoing operations.
Interest expense. Interest expense was $1.1 million for three months ended March 31, 2024 compared to $0.6 million for the three months ended March 31, 2023. This increase was attributable to higher average outstanding debt balances and higher interest rates, during the three months ended March 31, 2024 as compared to the three months ended March 31, 2023.
Income tax expense. Income tax expense was $4.2 million for the three months ended March 31, 2024, with an effective tax rate of 18.0%, compared to the expense of $3.9 million for the three months ended March 31, 2023, with an effective tax rate of 14.4%. The increase in the tax rate for the three months ended March 31, 2024 was primarily due to lower stock compensation excess tax benefits and higher other permanent difference items.
Net income. Net income was $18.9 million for the three months ended March 31, 2024 compared to $23.2 million for the three months ended March 31, 2023. The decrease was primarily due to the reasons stated earlier.
Segment Results
The following table sets forth, for the periods indicated, statements of operations data by segment, segment net sales as percentage of total net sales and segment operating income as a percentage of segment net sales:
Three months ended March 31,
20242023
(dollars in thousands)AmountPercentAmountPercent
Contract revenues:
Transmission & Distribution$490,395 60.1 %$445,324 54.9 %
Commercial & Industrial325,167 39.9 366,292 45.1 
Total$815,562 100.0 %$811,616 100.0 %
Operating income (loss):
Transmission & Distribution$29,837 6.1 %$32,821 7.4 %
Commercial & Industrial11,423 3.5 10,627 2.9 
Total41,260 5.1 43,448 5.4 
General Corporate(16,989)(2.1)(16,022)(2.0)
Consolidated$24,271 3.0 %$27,426 3.4 %
Transmission & Distribution
Revenues for our T&D segment for the three months ended March 31, 2024 were $490.4 million compared to $445.3 million for the three months ended March 31, 2023, an increase of $45.1 million, or 10.1%. The increase in revenue was related to an increase of $29.3 million in revenue on distribution projects and an increase of $15.8 million in revenue on transmission projects. Revenues from transmission projects represented 64.0% and 66.9% of T&D segment revenue for the three months ended March 31, 2024 and 2023, respectively.
23

Table of Contents
Operating income for our T&D segment for the three months ended March 31, 2024 was $29.8 million, a decrease of $3.0 million, or 9.1%, from the three months ended March 31, 2023. As a percentage of revenues, operating income for our T&D segment was 6.1% for the three months ended March 31, 2024 compared to 7.4% for the three months ended March 31, 2023. Operating income margin was impacted by significant changes in our estimated gross profit on certain projects resulting in a net operating income margin decrease of 2.5% for the three months ended March 31, 2024, compared to a net decrease of 0.5% for the three months ended March 31, 2023. During the three months ended March 31, 2024, significant estimated gross profit changes negatively impacted operating income as a percentage of revenues by 3.1% and largely related to labor and project inefficiencies, most of which related to clean energy projects, primarily in one geographic area that also experienced inclement weather, as well as an unfavorable change order. These decreases were partially offset by positive significant estimated gross profit changes totaling 0.5% of revenues mostly related to better-than-anticipated productivity. Additionally, T&D operating income margin was positively impacted by an increase in work in progress, partially offset by higher fleet depreciation and maintenance expenses.
Commercial & Industrial
Revenues for our C&I segment for the three months ended March 31, 2024 were $325.2 million compared to $366.3 million for the three months ended March 31, 2023, a decrease of $41.1 million, or 11.2%, which was primarily due to the delayed start of certain projects, that are expected to begin later in 2024. The decrease in revenue was related to a decrease of $40.8 million in revenue on fixed priced contracts and a decrease of $1.3 million in revenues on unit price work, partially offset by an increase of $1.0 million on T&E contracts.
Operating income for our C&I segment for the three months ended March 31, 2024 was $11.4 million, an increase of $0.8 million, over the three months ended March 31, 2023. As a percentage of revenues, operating income for our C&I segment was 3.5% for the three months ended March 31, 2024 compared to 2.9% for the three months ended March 31, 2023. Operating income margin was impacted by significant changes in our estimated gross profit on certain projects resulting in a net operating income margin increase of 0.8% for the three months ended March 31, 2024, compared to a net decrease of 0.7% for the three months ended March 31, 2023. Significant estimated gross profit changes positively impacted operating income as a percentage of revenues by 3.8% and largely related to better-than-anticipated productivity, some of which related to clean energy projects, favorable change orders and a favorable job closeout. These increases were partially offset by negative significant estimated gross profit changes totaling 3.0% of revenues largely related to labor and project inefficiencies, some of which were caused by supply chain disruptions and an unfavorable change order. Additionally, C&I operating income margin was positively impacted by approximately 1.4% due to favorable joint venture results, this increase was partially offset by a decrease in work in progress, higher contingent compensation expense related to a prior acquisition and higher fleet depreciation and maintenance expenses.
Non-GAAP Measure—EBITDA
We define EBITDA, a performance measure used by management, as net income plus interest expense net of interest income, provision for income taxes and depreciation and amortization. EBITDA, a non-GAAP financial measure, 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. We believe that EBITDA is useful to investors and other external users of our Consolidated Financial Statements in evaluating our operating performance and cash flow because EBITDA is widely used by investors to measure a company’s operating performance without regard to items such as interest expense, taxes, depreciation and amortization, which can vary substantially from company to company depending upon accounting methods and book value of assets, useful lives placed on assets, capital structure and the method by which assets were acquired. Because not all companies use identical calculations, this presentation of EBITDA may not be comparable to other similarly-titled measures of other companies. We use, and we believe investors benefit from, the presentation of EBITDA in evaluating our operating performance because it provides us and our investors with an additional tool to compare our operating performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our core operations.
24

Table of Contents
Using EBITDA as a performance measure has material limitations as compared to net income, or other financial measures as defined under accounting principles generally accepted in the United States of America (“U.S. GAAP”), as it excludes certain recurring items, which may be meaningful to investors. EBITDA excludes interest expense net of interest income; however, as we have borrowed money to finance transactions and operations, or invested available cash to generate interest income, interest expense and interest income are elements of our cost structure and can affect our ability to generate revenue and returns for our shareholders. Further, EBITDA excludes depreciation and amortization; however, as we use capital and intangible assets to generate revenues, depreciation and amortization are a necessary element of our costs and ability to generate revenue. Finally, EBITDA excludes income taxes; however, as we are organized as a corporation, the payment of taxes is a necessary element of our operations. As a result of these exclusions from EBITDA, any measure that excludes interest expense net of interest income, depreciation and amortization and income taxes has material limitations as compared to net income. When using EBITDA as a performance measure, management compensates for these limitations by comparing EBITDA to net income in each period, to allow for the comparison of the performance of the underlying core operations with the overall performance of the company on a full-cost, after-tax basis. Using both EBITDA and net income to evaluate the business allows management and investors to (a) assess our relative performance against our competitors and (b) monitor our capacity to generate returns for our shareholders.
The following table provides a reconciliation of net income to EBITDA:
Three months ended
March 31,
(in thousands)20242023
Net income$18,939 $23,163 
Add:
Interest expense, net912 265 
Income tax expense4,157 3,908 
Depreciation & amortization15,830 13,989 
EBITDA$39,838 $41,325 
We also use EBITDA as a liquidity measure. Certain material covenants contained within our credit agreement (the “Credit Agreement”) are based on EBITDA with certain additional adjustments. Non-compliance with these financial covenants under the Credit Agreement — our interest coverage ratio which is defined in the Credit Agreement as Consolidated EBITDA (as defined in the Credit Agreement) divided by interest expense (as defined in the Credit Agreement) and our net leverage ratio, which is defined in the Credit Agreement as Total Net Indebtedness (as defined in the Credit Agreement), divided by Consolidated EBITDA (as defined in the Credit Agreement) — could result in our lenders requiring us to immediately repay all amounts borrowed. If we anticipated a potential covenant violation, we would seek relief from our lenders, likely causing us to incur additional cost, and such relief might not be available, or if available, might not be on terms as favorable as those in the Credit Agreement. In addition, if we cannot satisfy these financial covenants, we would be prohibited under the Credit Agreement from engaging in certain activities, such as incurring additional indebtedness, making certain payments, and acquiring or disposing of assets. Based on the information above, management believes that the presentation of EBITDA as a liquidity measure is useful to investors and relevant to their assessment of our capacity to service or incur debt, fund capital expenditures, finance acquisitions and expand our operations.
25

Table of Contents
The following table provides a reconciliation of net cash flows provided by operating activities to EBITDA:
Three months ended
March 31,
(in thousands)20242023
Provided by Operating Activities:
Net cash flows provided by operating activities$7,690 $37,158 
Add/(subtract):
Changes in operating assets and liabilities28,163 814 
Adjustments to reconcile net income to net cash flows provided by operating activities(16,914)(14,809)
Depreciation & amortization15,830 13,989 
Income tax expense4,157 3,908 
Interest expense, net912 265 
EBITDA$39,838 $41,325 

Liquidity, Capital Resources and Material Cash Requirements
As of March 31, 2024, we had working capital of $293.8 million. We define working capital as current assets less current liabilities. During the three months ended March 31, 2024, operating activities of our business provided net cash of $7.7 million, compared to $37.2 million of cash provided for the three months ended March 31, 2023. Cash flow from operations is primarily influenced by operating margins, timing of contract performance and the type of services we provide to our customers. The $29.5 million year-over-year decrease in cash provided by operating activities was primarily due to unfavorable net changes in operating assets and liabilities of $27.3 million, and a decrease of $4.2 million in net income. The unfavorable change in operating assets and liabilities was primarily due to the net unfavorable year-over-year changes in various working capital accounts that relate primarily to construction activities (accounts receivable, contract assets, accounts payable and contract liabilities) of $33.7 million, partially offset by the favorable change of $9.9 million in other liabilities. The net unfavorable changes of $33.7 million in cash provided by working capital accounts, mainly related to construction activities, was due to the timing of billings and payments under our contracts. The favorable change of $9.9 million in other liabilities was primarily due to the timing of employee related wage and tax payments.
In the three months ended March 31, 2024, we used net cash of $23.9 million in investing activities consisting of $25.8 million for capital expenditures, partially offset by $1.9 million of proceeds from the sale of equipment.
In the three months ended March 31, 2024, financing activities used net cash of $4.5 million, consisting primarily of $5.9 million of shares repurchased to satisfy tax obligations under our stock compensation programs and $2.6 million of payments under our equipment notes, partially offset by $4.3 million of net borrowings under our revolving line of credit.
We believe our $434.3 million borrowing availability under our revolving line of credit as of March 31, 2024, future cash flow from operations and our ability to utilize short-term and long-term leases will provide sufficient liquidity for our short-term and long-term needs. Our primary short-term liquidity needs include cash for operations, debt service requirements, capital expenditures, and acquisition and joint venture opportunities. We believe we have adequate sources of liquidity to meet our long-term liquidity needs and foreseeable material cash requirements, including those associated with funding future acquisition opportunities. We continue to invest in developing key management and craft personnel in both our T&D and C&I segments and in procuring the specific specialty equipment and tooling needed to win and execute projects of all sizes and complexity.
We have not historically paid dividends and currently do not expect to pay dividends.
26

Table of Contents
Debt Instruments
Credit Agreement
On May 31, 2023, the Company entered into a five-year third amended and restated credit agreement (the “Credit Agreement”) with a syndicate of banks led by JPMorgan Chase Bank, N.A. and Bank of America, N.A. that provides for a $490 million revolving credit facility (the “Facility”), subject to certain financial covenants as defined in the Credit Agreement. The Facility allows for revolving loans in Canadian dollars and other non-US currencies, up to the U.S. dollar equivalent of $150 million. Up to $75 million of the Facility may be used for letters of credit, with an additional $75 million available for letters of credit, subject to the sole discretion of each issuing bank. The Facility also allows for $15 million to be used for swingline loans. The Company has an expansion option to increase the commitments under the Facility or enter into incremental term loans, subject to certain conditions, by up to an additional $200 million upon receipt of additional commitments from new or existing lenders. Subject to certain exceptions, the Facility is secured by substantially all of the assets of the Company and its domestic subsidiaries, and by a pledge of substantially all of the capital stock of the Company’s domestic subsidiaries and 65% of the capital stock of the direct foreign subsidiaries of the Company. Additionally, subject to certain exceptions, the Company’s domestic subsidiaries also guarantee the repayment of all amounts due under the Credit Agreement. The Credit Agreement provides for customary events of default. If an event of default occurs and is continuing, on the terms and subject to the conditions set forth in the Credit Agreement, amounts outstanding under the Facility may be accelerated and may become or be declared immediately due and payable. Borrowings under the Credit Agreement are used to refinance existing indebtedness, and to provide for future working capital, capital expenditures, acquisitions and other general corporate purposes.
Amounts borrowed under the Credit Agreement bear interest, at the Company’s option, at a rate equal to either (1) the Alternate Base Rate (as defined in the Credit Agreement), plus an applicable margin ranging from 0.25% to 1.00%; or (2) the Term Benchmark Rate (as defined in the Credit Agreement) plus an applicable margin ranging from 1.25% to 2.00%. The applicable margin is determined based on the Company’s Net Leverage Ratio (as defined in the Credit Agreement). The Credit Agreement establishes Adjusted Term Secured Overnight Financing Rate (“SOFR”) (as defined in the Credit Agreement) as the benchmark rate in replacement of LIBOR. Letters of credit issued under the Facility are subject to a letter of credit fee of 1.25% to 2.00% for non-performance letters of credit or 0.625% to 1.00% for performance letters of credit, based on the Company’s Net Leverage Ratio. The Company is subject to a commitment fee of 0.20% to 0.30%, based on the Company’s Net Leverage Ratio, on any unused portion of the Facility. The Credit Agreement restricts certain types of payments when the Company’s Net Leverage Ratio, after giving pro forma effect thereto, exceeds 2.75.
Under the Credit Agreement, the Company is subject to certain financial covenants including a maximum Net Leverage Ratio of 3.0 and a minimum Interest Coverage Ratio (as defined in the Credit Agreement) of 3.0. The Credit Agreement also contains covenants including limitations on asset sales, investments, indebtedness and liens. The Company was in compliance with all of its financial covenants under the Credit Agreement as of March 31, 2024.
We had $17.5 million and $13.2 million of borrowings outstanding under the Facility as of March 31, 2024 and December 31, 2023, respectively.
Letters of Credit
Some of our vendors require letters of credit to ensure reimbursement for amounts they are disbursing on our behalf, such as to beneficiaries under our insurance programs. In addition, from time-to-time, certain customers require us to post letters of credit to ensure payment to our subcontractors and vendors under those contracts and to guarantee performance under our contracts. Such letters of credit are generally issued by a bank or similar financial institution. The letter of credit commits the issuer to pay specified amounts to the holder of the letter of credit if the holder claims that we have failed to perform specified actions in accordance with the terms of the letter of credit. If this were to occur, we would be required to reimburse the issuer of the letter of credit. Depending on the circumstances of such a reimbursement, we may also have to record a charge to earnings for the reimbursement. Currently, we do not believe it is likely that any claims will be made under any letter of credit.
As of March 31, 2024, we had $38.2 million in letters of credit outstanding under our Credit Agreement, including $27.1 million related to the Company's payment obligation under its insurance programs and approximately $11.1 million related to contract performance obligations. As of December 31, 2023, we had $34.4 million in letters of credit outstanding under our previous credit agreement, including $27.1 million related to the Company's payment obligations under its insurance programs and approximately $7.3 million related to contract performance obligations.
27

Table of Contents
Equipment Notes
We have entered into multiple Master Loan Agreements with multiple finance companies. The Master Loan Agreements may be used for financing of equipment between us and the lenders pursuant to one or more equipment notes ("Equipment Notes"). Each Equipment Note constitutes a separate, distinct and independent financing of equipment and contractual obligation.
As of March 31, 2024 and December 31, 2023, we had two outstanding Equipment Notes collateralized by equipment and vehicles owned by us. As of March 31, 2024 and December 31, 2023, we also had one other equipment note outstanding collateralized by a vehicle owned by us. The outstanding balance of all equipment notes was $20.4 million as of March 31, 2024 and $23.0 million as of December 31, 2023. As of March 31, 2024, we had outstanding short-term and long-term equipment notes of approximately $6.6 million and $13.8 million, respectively. As of December 31, 2023, we had outstanding short-term and long-term Equipment Notes of approximately $7.1 million and $16.0 million, respectively.
Lease Obligations
From time to time, the Company enters into non-cancelable leases for some of our facility, vehicle and equipment needs. These leases allow the Company to conserve cash by paying a monthly lease rental fee for the use of facilities, vehicles and equipment rather than purchasing them. The Company’s leases have remaining terms ranging from one to ten years, some of which may include options to extend the leases for up to six years, and some of which may include options to terminate the leases within one year. Typically, the Company has purchase options on the equipment underlying its long-term leases and many of its short-term rental arrangements. The Company may exercise some of these purchase options when the need for equipment is on-going and the purchase option price is attractive.
The outstanding balance of operating lease obligations was $38.5 million as of March 31, 2024, consisting of short-term and long-term operating lease obligations of approximately $9.9 million and $28.6 million, respectively. The outstanding balance of operating lease obligations was $35.0 million as of December 31, 2023, consisting of short-term and long-term operating lease obligations of approximately $9.2 million and $25.8 million, respectively.
The outstanding balance of finance lease obligations was $2.0 million as of March 31, 2024, consisting of short-term and long-term finance lease obligations of approximately $1.8 million and $0.2 million, respectively. As of December 31, 2023 we had $2.3 million outstanding finance lease obligations, consisting of short-term and long-term finance lease obligations of approximately $2.0 million and $0.3 million, respectively.
Purchase Commitments for Construction Equipment
As of March 31, 2024, we had approximately $26.9 million in outstanding purchase obligations for certain construction equipment to be paid with cash outlays scheduled to occur in 2024.
Performance and Payment Bonds and Parent Guarantees
Many customers, particularly in connection with new construction, require us to post performance and payment bonds issued by a financial institution known as a surety. These bonds provide a guarantee to the customer that we will perform under the terms of a contract and that we will pay subcontractors and vendors. If we fail to perform under a contract or to pay subcontractors and vendors, the customer may demand that the surety make payments or provide services under the bond. We must reimburse our sureties for any expenses or outlays they incur. Under our continuing indemnity and security agreements with the issuers of the bonds, we may be required to grant them a security interest relating to a particular project. We believe that it is unlikely that we will have to fund significant claims under our surety arrangements. As of March 31, 2024, an aggregate of approximately $2.59 billion in original face amount of bonds issued by our sureties were outstanding. Our estimated remaining cost to complete these bonded projects was approximately $660.8 million as of March 31, 2024.
From time to time, we guarantee the obligations of our wholly owned subsidiaries, including obligations under certain contracts with customers, certain lease agreements, and, in some states, obligations in connection with obtaining contractors’ licenses. Additionally, from time to time, we are required to post letters of credit to guarantee the obligations of our wholly owned subsidiaries, which reduces the borrowing availability under our credit facility.
28

Table of Contents
Concentration of Credit Risk
We grant trade credit under normal payment terms, generally without collateral, to our customers, which include high credit quality electric utilities, governmental entities, general contractors and builders, owners and managers of commercial and industrial properties located in the United States. Consequently, we are subject to potential credit risk related to changes in business and economic factors throughout the United States. However, we generally have certain statutory lien rights with respect to services provided. Under certain circumstances such as foreclosures or negotiated settlements, we may take title to the underlying assets in lieu of cash in settlement of receivables. As of March 31, 2024 and 2023, none of our customers individually exceeded 10% of consolidated accounts receivable. Management believes the terms and conditions in its contracts, billing and collection policies are adequate to minimize the potential credit risk.
New Accounting Pronouncements
For a discussion regarding new accounting pronouncements, please refer to Note 1–Organization, Business and Basis of Presentation—Recent Accounting Pronouncements in the accompanying notes to our Consolidated Financial Statements.
Critical Accounting Policies
The discussion and analysis of our financial condition and results of operations are based on our consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities known to exist at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. We evaluate our estimates on an ongoing basis, based on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. There can be no assurance that actual results will not differ from those estimates. For further information regarding our critical accounting policies and estimates, please refer to Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies” included in our 2023 Annual Report.
Cautionary Statement Concerning Forward-Looking Statements and Information
We are including the following discussion to inform you of some of the risks and uncertainties that can affect our company and to take advantage of the protections for forward-looking statements that applicable federal securities law affords.
Statements in this Quarterly Report on Form 10-Q contain various forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”), which represent our management’s beliefs and assumptions concerning future events. When used in this document and in documents incorporated by reference, forward-looking statements include, without limitation, statements regarding financial forecasts or projections, and our expectations, beliefs, intentions or future strategies that are signified by the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “likely,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should”, "unlikely,” or other words that convey the uncertainty of future events or outcomes. The forward-looking statements in this Quarterly Report on Form 10-Q speak only as of the date of this Quarterly Report on Form 10-Q. 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. These and other important factors, including those discussed under the caption “Forward-Looking Statements” and in Item 1A. “Risk Factors” in our 2023 Annual Report, and in any risk factors or cautionary statements contained in our other filings with the Securities and Exchange Commission, may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements.
These risks, contingencies and uncertainties include, but are not limited to, the following:
Our operating results may vary significantly from period to period.
Our industry is highly competitive.
Negative economic and market conditions including tariffs on materials, interest rates and recessionary conditions have in the past and may in the future adversely impact our customers’ spending and, as a result, our operations and growth.
29

Table of Contents
We may be unsuccessful in generating internal growth, which could impact the projects available to the Company.
Our inability to successfully execute or integrate acquisitions or joint ventures may have an adverse impact on our growth strategy and business.
Project performance issues, including those caused by third parties, or certain contractual obligations have in the past and may in the future result in additional costs to us, reductions or delays in revenues or the payment of penalties, including liquidated damages.
We may be unable to attract and retain qualified personnel.
The timing of new contracts and termination of existing contracts may result in unpredictable fluctuations in our cash flows and financial results.
During the ordinary course of our business, we have in the past and may in the future become subject to lawsuits or indemnity claims.
Backlog may not be realized or may not result in profits and may not accurately represent future revenue.
Our insurance has limits and exclusions that may not fully indemnify us against certain claims or losses, including claims resulting from wildfires or other natural disasters and an increase in cost, or the unavailability or cancellation of third-party insurance coverages would increase our overall risk exposure and could disrupt our operations and reduce our profitability.
Risks associated with operating in the Canadian market could impact our profitability.
Changes in tax laws or our interpretations of tax laws could materially impact our income tax liabilities.
The nature of our business exposes us to potential liability for warranty claims and faulty engineering, which may reduce our profitability.
Pandemic outbreaks of disease, such as the COVID-19 pandemic, have in the past had and may in the future have an adverse impact on our business, employees, liquidity, financial condition, results of operations and cash flows.
Our dependence on suppliers, subcontractors and equipment manufacturers has in the past and may in the future expose us to the risk of loss in our operations.
Our participation in joint ventures and other projects with third parties may expose us to liability for failures of our partners.
Legislative or regulatory actions relating to electricity transmission and clean energy may impact demand for our services.
We have in the past and may in the future incur liabilities and suffer negative financial or reputational impacts relating to occupational health and safety matters, including those related to environmental hazards such as wildfires and other natural disasters.
Our failure to comply with environmental and other laws and regulations could result in significant liabilities.
Our business may be affected by seasonal and other variations, including severe weather conditions and the nature of our work environment.
Opportunities associated with government contracts could lead to increased governmental regulation applicable to us.
We are subject to risks associated with climate change including financial risks and physical risks such as an increase in extreme weather events (such as floods, wildfires or hurricanes), rising sea levels and limitations on water availability and quality.
Our use of percentage-of-completion accounting could result in a reduction or reversal of previously recognized revenues and profits.
Our financial results are based upon estimates and assumptions that may differ from actual results.
Our actual costs may be greater than expected in performing our fixed-price and unit-price contracts.
An increase in the cost or availability for items such as materials, parts, commodities, equipment and tooling may also be impacted by trade regulations, tariffs, global relations, wars, taxes, transportation costs and inflation which could adversely affect our business.
We may not be able to compete for, or work on, certain projects if we are not able to obtain necessary bonds, letters of credit, bank guarantees or other financial assurances.
Unfavorable developments affecting the banking and financial services industry could adversely affect our business, liquidity and financial condition and overall results of operations.
30

Table of Contents
Work stoppages or other labor issues with our unionized workforce could adversely affect our business, and we may be subject to unionization attempts.
Multi-employer pension plan obligations related to our unionized workforce could adversely impact our earnings.
We rely on information, communications and data systems in our operations and we or our business partners may be subject to failures, interruptions or breaches of such systems, which could affect our operations or our competitive position, expose sensitive information or damage our reputation.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We have operations within the United States and Canada, and we are exposed to market risks in the ordinary course of our business, including the effects of fluctuations in interest rates, foreign exchange rates, and commodity prices.
As of March 31, 2024, we were not party to any derivative instruments. We did not use any material derivative financial instruments during the three months ended March 31, 2024 and 2023, including instruments for trading, hedging, or speculating on changes in interest rates, changes in foreign currency rates or changes in commodity prices of materials used in our business.
Any borrowings under our Facility are based upon interest rates that will vary depending upon the prime rate, Canadian prime rate, the NYFRB overnight bank funding rate, CDOR, and Term SOFR Reference Rate. If the prime rate, Canadian prime rate, the NYFRB overnight bank funding rate, CDOR, or Term SOFR Reference Rate rises, any interest payment obligations would increase and have a negative effect on our cash flow and financial condition. We currently do not maintain any hedging contracts that would limit our exposure to variable rates of interest when we have outstanding borrowings. As of March 31, 2024, we had $17.5 million of borrowings outstanding under the Facility. If market rates of interest on all our revolving debt as of March 31, 2024, which is subject to variable rates, permanently increased by 1%, the increase in interest expense on all revolving debt would decrease future income before provision for income taxes and cash flows by approximately $0.2 million annually. If market rates of interest on all our revolving debt, which is subject to variable rates as of March 31, 2024, permanently decreased by 1%, the decrease in interest expense on all debt would increase future income before provision for income taxes and cash flows by approximately $0.2 million annually. Borrowings under our equipment notes are at fixed rates established on the date the respective equipment note was executed.
ITEM 4. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
Under the supervision, and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures, as defined under Exchange Act Rules 13a-15(e) and 15d-15(e), as of the end of the period covered by this quarterly report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of March 31, 2024.
Changes in Internal Control Over Financial Reporting
During the period covered by this report, there were no changes in our internal control over financial reporting that materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting.
31

Table of Contents
PART II—OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
For discussion regarding legal proceedings, please refer to Note 8–Commitments and Contingencies—Litigation and Other Legal Matters in the accompanying notes to our Consolidated Financial Statements.
ITEM 1A. RISK FACTORS
We face a number of risks that could materially and adversely affect our business, employees, liquidity, financial condition, results of operations and cash flows. A discussion of our risk factors can be found in Item 1A. “Risk Factors” in our 2023 Annual Report. As of the date of this filing, there have been no material changes to the risk factors previously discussed in Item 1A. “Risk Factors” in our 2023 Annual Report. An investment in our common stock involves various risks. When considering an investment in the Company, you should carefully consider all of the risk factors described in our 2023 Annual Report. These risks and uncertainties are not the only ones facing us and there may be additional matters that are not known to us or that we currently consider immaterial. These risks and uncertainties could adversely affect our business, employees, liquidity, financial condition, results of operations or cash flows and, thus, the value of our common stock and any investment in the Company.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES
Purchases of Common Stock. Purchases of Common Stock. The following table includes all of the Company’s repurchases of common stock for the periods shown. Repurchased shares are retired and returned to authorized but unissued common stock.
PeriodTotal Number of Shares Purchased (1)Average Price Paid per ShareTotal Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (2)
January 1, 2024 - January 31, 2024— $— — $72,487,423 
February 1, 2024 - February 29, 202422,983 $154.55 — $72,487,423 
March 1, 2024 - March 31, 202413,414 $172.52 — $72,487,423 
Total36,397 $161.17 — 
(1) This column contains repurchases of common stock to satisfy tax obligations on the vesting of performance and restricted stock under the 2017 Long-Term Incentive Plan (as amended).
(2) On November 1, 2023, the Company announced that its Board of Directors had authorized a new $75.0 million share repurchase program (the "Repurchase Program"), which became effective on November 9, 2023. The Repurchase Program will expire on May 8, 2024, or when the authorized funds are exhausted, whichever is earlier. As of March 31, 2024, the Company had $72.5 million of remaining availability to repurchase shares of the Company’s common stock under the Repurchase Program.
ITEM 5. OTHER INFORMATION
None of the Company’s directors or “officers” (as defined in Rule 16a-1(f) promulgated under the Exchange Act) adopted, modified, or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K, during the Company’s fiscal quarter ended March 31, 2024.
32

Table of Contents
ITEM 6. EXHIBITS
NumberDescription
101.INSInline XBRL Instance Document*
101.SCHInline XBRL Taxonomy Extension Schema Document*
101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document*
101.DEFInline XBRL Taxonomy Extension Definition Linkbase Document*
101.LABInline XBRL Taxonomy Extension Label Linkbase Document*
101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document*
104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)*
______________________________________
†    Filed herewith
*    Electronically filed

33

Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
MYR GROUP INC.
(Registrant)
May 1, 2024/s/ KELLY M. HUNTINGTON
Kelly M. Huntington
Senior Vice President and Chief Financial Officer

34
Document
Exhibit 10.1
EMPLOYMENT AGREEMENT
Brian K. Stern
This EMPLOYMENT AGREEMENT, dated as of March 1, 2024 (this “Agreement”), is by and between MYR Group Inc., a Delaware corporation (the “Company”), and Brian K. Stern, (the “Key Employee”).
W I T N E S S E T H:
WHEREAS, the Company desires to secure the benefit of the Key Employee’s experience and ability by employing the Key Employee in the capacity and on the terms set forth below, and the Key Employee desires to commit to serve the Company on the terms herein provided;
NOW, THEREFORE, in consideration of the foregoing and of the respective covenants and agreements set forth below, the parties hereto agree as follows:
ARTICLE I
DEFINITIONS AND INTERPRETATIONS
1.1    Definitions.
(a)    “Base Salary” means the Key Employee’s base salary as in effect from time to time, as described in Section 2.3(a).
(b)    “Board” means the Board of Directors of the Company.
(c)    “Cause” means:
(i)    A material breach by the Key Employee of Sections 3.9(b), (c), (d), (e) or (f) of this Agreement (regarding the non-competition, non-solicitation and confidentiality provisions);
(ii)    The commission of a criminal act by the Key Employee against the Company, including but not limited to fraud, embezzlement or theft;
(iii)    The conviction or plea of no contest or nolo contendere of the Key Employee for any felony or any misdemeanor that may result in a term of imprisonment greater than one (1) year; or
(iv)    The Key Employee’s failure or refusal to carry out, or comply with, in any material respect, any lawful directive of the Board consistent with the terms of this Agreement which is not remedied within thirty (30) days after the Key Employee’s receipt of written notice from the Company.



Notwithstanding the foregoing, the Key Employee shall not be deemed to have been terminated for Cause pursuant to this Section 1.1(c) unless and until there shall have been delivered to the Key Employee a copy of a resolution duly adopted by at least seventy-five percent (75%) of the entire membership of the Board (not including for this purpose the Key Employee if the Key Employee is then a member of the Board) at a meeting of the Board called and held for such purpose (after reasonable notice to the Key Employee and a reasonable opportunity for the Key Employee, together with the Key Employee’s counsel, to be heard before the Board), finding that in the good faith opinion of the Board, the Key Employee engaged in conduct set forth in this Section 1.1(c).
(d)    “Change in Control” means the occurrence of a “change in the ownership of the Company,” a “change in the effective control of the Company,” or a “change in the ownership of a substantial portion of the Company’s assets,” as defined in Treasury Regulation §§1.409A-3(i)(5)(v), (vi) and (vii), respectively.
(e)    “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.
(f)    “Code” means the Internal Revenue Code of 1986, as amended and any regulations thereunder.
(g)    “Disability” means that, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve months, the Key Employee is unable to engage in any substantial gainful activity or is receiving income replacement benefits under an accident and health benefit plan covering employees of the Company for a period of not less than three months.
(h)    “Good Reason” means:
(i)    a reduction of the Key Employee’s Base Salary and/or annual target bonus opportunity without the Key Employee’s prior written consent;
(ii)    the relocation of the Key Employee’s primary work site to a location greater than fifty (50) miles from the Key Employee’s work site as of the Effective Date; or
(iii)    any other material breach by the Company of a material provision of this Agreement for which the Key Employee shall have given the Company written notice of such breach and the Company shall have failed to cure such breach within thirty (30) days after receipt of such notice.
    - 2 -    


Notwithstanding the foregoing, solely with respect to a termination of employment by the Key Employee during the Protection Period, in addition to clauses (i), (ii) and (iii), “Good Reason,” shall also mean a material reduction of the Key Employee’s duties (without the Key Employee’s prior written consent) from those in effect as of the Effective Date or as subsequently agreed to by the Key Employee and the Company for which the Key Employee shall have given the Company written notice of such breach and the Company shall have failed to cure such breach within thirty (30) days after receipt of such notice.
(i)    “Post-Termination Period” means the period beginning on the date that the Key Employee’s employment terminates and ending on the first anniversary of such date.
(j)    “Protection Period” means the period beginning on the date of the occurrence of a Change in Control and ending 12 months following the occurrence of a Change in Control.
(k)    “Severance Pay” means
(i)    two (2) times the sum of the Key Employee’s annual Base Salary and Target Bonus as of the date of the Key Employee’s termination of employment (without giving effect to any reduction that would otherwise constitute Good Reason), in the case of a termination Without Cause outside the Protection Period or a termination by the Key Employee with Good Reason outside the Protection Period; and
(ii)    three (3) times the sum of the Key Employee’s annual Base Salary and Target Bonus as of the date of the Key Employee’s termination of employment, or if higher, the Key Employee’s annual Base Salary and Target Bonus for the fiscal year immediately preceding the fiscal year in which there occurs a Change in Control, in the case of a termination Without Cause during the Protection Period or a termination by the Key Employee for Good Reason during the Protection Period.
(l)    “Severance Period” means the two (2) year period following the date of the Key Employee’s termination of employment, in the case of a termination Without Cause or a termination by the Key Employee for Good Reason, whether or not during the Protection Period.
(m)    “Without Cause” means termination by the Company of the Key Employee’s employment at the Company’s sole discretion for any reason, other than by reason of the Key Employee’s death or Disability, and other than a termination based upon Cause.
1.2    Interpretations. In this Agreement, unless a clear contrary intention appears, (a) the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or other subdivision; (b) reference to any Article or Section, means such Article or Section hereof; and (c) the word “including” (and with correlative meaning “include”) means including, without limiting the generality of any description preceding such term.
    - 3 -    


ARTICLE II
EMPLOYMENT AND DUTIES
2.1    Term. The term of this Agreement shall be for a period commencing on March 1, 2024 (the “Effective Date”) and ending on March 1, 2025 (the “Initial Term”), provided, however, that this Agreement shall automatically be extended for an additional one-year period at the end of the Initial Term and each one-year anniversary thereafter (each a “Renewal Term” and together with the Initial Term being referred to herein as the “Employment Term”), unless not later than one-hundred eighty (180) days prior to the end of the then-current period, either the Key Employee or the Company shall have provided written notice to the other party that it does not wish to extend this Agreement; provided, further, that if there occurs a Change in Control during the Employment Term, the Employment Term shall automatically be extended for an additional one-year period (in addition to any then remaining Initial Term or a Renewal Term, as applicable).
2.2    Position, Duties and Services. The Key Employee shall serve in the position of Senior Vice President and Chief Operating Officer – T&D and shall have duties and responsibilities consistent with an executive serving in such capacity. The Key Employee shall perform such duties and responsibilities diligently and to the best of the Key Employee’s abilities. The Key Employee’s employment will be subject to the supervision and direction of the Chief Executive Officer of the Company and the Board.
2.3    Compensation.
(a)    Base Salary. The Key Employee shall receive an initial Base Salary at the rate of Four Hundred Fifty Thousand Dollars ($450,000.00) per annum payable in periodic installments in accordance with the Company’s normal payroll practices and procedures, which Base Salary may be increased (but not decreased) by the Board or (a committee thereof) from time to time.
(b)    Target Bonus. During the Employment Term, the Key Employee shall be eligible to receive an annual target bonus (the “Target Bonus”) based on the achievement of annual performance objecti