Myr Group Inc 10-Q for FY2022 Q2

Myr Group Inc. (MYRG)

10-Q 2022-07-27 For: 2022-06-30

Added on April 12, 2026

About this 10-Q

Myr Group Inc filed this 10-Q on July 27, 2022, covering the quarter ended June 30, 2022 (FY2022 Q2).

Headline figures

Quarter ended June 30, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $708.11M; up 9.0% from $649.57M a year earlier
Net income: $19.68M; down 7.2% from net income of $21.22M a year earlier
Diluted EPS: $1.15; down 7.3% from $1.24 a year earlier

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Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	MYRG	The Nasdaq Stock Market, LLC
		(Nasdaq Global Market)


		Page
	Part I—Financial Information
Item 1.	Financial Statements	2
	Consolidated Balance Sheets as of June 30, 2022 (unaudited) and December 31, 2021	2
	Unaudited Consolidated Statements of Operations and Comprehensive Income for the Three and Six Months Ended June 30, 2022 and 2021	3
	Unaudited Consolidated Statements of Stockholders’ Equity for the Three and Six Months Ended June 30, 2022 and 2021	4
	Unaudited Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021	5
	Notes to Unaudited Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35
Item 4.	Controls and Procedures	35
	Part II—Other Information
Item 1.	Legal Proceedings	36
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 6.	Exhibits	37


(in thousands, except share and per share data)	June 30, 2022		December 31, 2021
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	22,057	$	82,092
Accounts receivable, net of allowances of $2,337 and $2,441, respectively	409,497		375,353
Contract assets, net of allowances of $452 and $385, respectively	280,718		225,075
Current portion of receivable for insurance claims in excess of deductibles	9,755		11,078
Refundable income taxes	9,650		9,228
Prepaid expenses and other current assets	52,733		45,564
Total current assets	784,410		748,390
Property and equipment, net of accumulated depreciation of $336,347 and $322,128, respectively	212,055		196,092
Operating lease right-of-use assets	32,675		20,971
Goodwill	108,405		66,065
Intangible assets, net of accumulated amortization of $22,729 and $16,779, respectively	98,746		49,054
Receivable for insurance claims in excess of deductibles	21,262		32,443
Investment in joint ventures	3,155		3,978
Other assets	3,661		4,099
Total assets	$	1,264,369	$	1,121,092

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	1,065	$	1,039
Current portion of operating lease obligations	9,405		7,765
Current portion of finance lease obligations	1,318		—
Accounts payable	251,646		200,744
Contract liabilities	203,163		167,931
Current portion of accrued self-insurance	23,526		24,242
Accrued income taxes	2,669		2,021
Other current liabilities	72,614		94,857
Total current liabilities	565,406		498,599
Deferred income tax liabilities	24,613		24,620
Long-term debt	54,381		3,464
Accrued self-insurance	39,666		50,816
Operating lease obligations, net of current maturities	23,272		13,230
Finance lease obligations, net of current maturities	3,026		—
Other liabilities	22,923		11,261
Total liabilities	733,287		601,990
Commitments and contingencies
Stockholders’ equity:
Preferred stock—$0.01 par value per share; 4,000,000 authorized shares; none issued and outstanding at June 30, 2022 and December 31, 2021	—		—
Common stock—$0.01 par value per share; 100,000,000 authorized shares; 16,723,583 and 16,870,636 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively	167		168
Additional paid-in capital	158,691		163,754
Accumulated other comprehensive income (loss)	(1,653)		173
Retained earnings	373,877		355,007


Total stockholders’ equity	531,082		519,102
Total liabilities and stockholders’ equity	$	1,264,369	$	1,121,092


	Three months ended June 30,				Six months ended June 30,
(in thousands, except per share data)	2022		2021		2022		2021
Contract revenues	$	708,114	$	649,573	$	1,344,738	$	1,242,059
Contract costs	627,252		568,551		1,183,391		1,084,084
Gross profit	80,862		81,022		161,347		157,975
Selling, general and administrative expenses	52,016		51,890		105,580		101,537
Amortization of intangible assets	3,253		578		6,020		1,156
Gain on sale of property and equipment	(652)		(1,111)		(1,400)		(1,794)
Income from operations	26,245		29,665		51,147		57,076
Other income (expense):
Interest income	6		15		14		28
Interest expense	(650)		(678)		(1,101)		(1,153)
Other income, net	2,277		80		2,262		121
Income before provision for income taxes	27,878		29,082		52,322		56,072
Income tax expense	8,194		7,863		11,950		14,925
Net income	$	19,684	$	21,219	$	40,372	$	41,147


Income per common share:
—Basic	$	1.17	$	1.26	$	2.39	$	2.45
—Diluted	$	1.15	$	1.24	$	2.36	$	2.41
Weighted average number of common shares and potential common shares outstanding:
—Basic	16,894		16,854		16,904		16,807
—Diluted	17,070		17,125		17,141		17,093

Net income	$	19,684	$	21,219	$	40,372	$	41,147
Other comprehensive income (loss):
Foreign currency translation adjustment	(3,477)		413		(1,826)		666
Other comprehensive income (loss)	(3,477)		413		(1,826)		666
Total comprehensive income	$	16,207	$	21,632	$	38,546	$	41,813


	Preferred		Common Stock			Additional Paid-In		Accumulated Other Comprehensive		Retained		MYR Group Inc. Stockholders’		Noncontrolling
(in thousands)	Stock		Shares	Amount		Capital		Income (Loss)		Earnings		Equity		Interest		Total
Balance at December 31, 2020	$	—	16,734	$	167	$	158,618	$	23	$	270,480	$	429,288	$	4	$	429,292
Net income	—		—	—		—		—		19,928		19,928		—		19,928

Stock issued under compensation plans, net	—		123	1		109		—		—		110		—		110
Stock-based compensation expense	—		—	—		1,487		—		—		1,487		—		1,487
Shares repurchased related to tax withholding for stock-based compensation	—		(41)	—		(2,231)		—		(387)		(2,618)		—		(2,618)
Other comprehensive income	—		—	—		—		253		—		253		—		253
Stock issued - other	—		1	—		12		—		—		12		—		12
Balance at March 31, 2021	—		16,817	168		157,995		276		290,021		448,460		4		448,464
Net income	—		—	—		—		—		21,219		21,219		—		21,219
Stock issued under compensation plans, net	—		60	1		318		—		—		319		—		319
Stock-based compensation expense	—		—	—		1,948		—		—		1,948		—		1,948
Shares repurchased related to tax withholding for stock-based compensation	—		(10)	(1)		(637)		—		(96)		(734)		—		(734)

Other comprehensive income	—		—	—		—		413		—		413		—		413







Balance at June 30, 2021	$	—	16,867	$	168	$	159,624	$	689	$	311,144	$	471,625	$	4	$	471,629

Balance at December 31, 2021	$	—	16,871	$	168	$	163,754	$	173	$	355,007	$	519,102	$	—	$	519,102
Net income	—		—	—		—		—		20,688		20,688		—		20,688

Stock issued under compensation plans, net	—		193	2		2		—		—		4		—		4
Stock-based compensation expense	—		—	—		1,624		—		—		1,624		—		1,624
Shares repurchased related to tax withholding for stock-based compensation	—		(69)	—		(6,124)		—		(667)		(6,791)		—		(6,791)
Other comprehensive income	—		—	—		—		1,651		—		1,651		—		1,651

Balance at March 31, 2022	—		16,995	170		159,256		1,824		375,028		536,278		—		536,278
Net income	—		—	—		—		—		19,684		19,684		—		19,684
Stock issued under compensation plans, net	—		9	—		—		—		—		—		—		—
Stock-based compensation expense	—		—	—		2,064		—		—		2,064		—		2,064

Settlement of stock repurchase program	—		(280)	(3)		(2,629)		—		(20,835)		(23,467)		—		(23,467)
Other comprehensive loss	—		—	—		—		(3,477)		—		(3,477)		—		(3,477)







Balance at June 30, 2022	$	—	16,724	$	167	$	158,691	$	(1,653)	$	373,877	$	531,082	$	—	$	531,082


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


(in thousands)	(as of acquisition date) January 4, 2022		Measurement Period Adjustments		Acquisition Allocation June 30, 2022
Cash paid	$	114,429	$	—	$	114,429
Contingent consideration - fair value at acquisition date	10,608		—		10,608
Preliminary estimated net asset adjustments	563		(564)		(1)
Total consideration, net of estimated net asset adjustments	125,600		(564)		125,036
Less: Acquired cash	(3,853)		—		(3,853)
Total consideration less cash acquired, net of estimated net asset adjustments	$	121,747	$	(564)	$	121,183

Cash and cash equivalents	$	3,853	$	—	$	3,853
Accounts receivable, net	12,131		(52)		12,079
Contract assets, net	12,443		148		12,591
Refundable income taxes	394		280		674
Prepaid expenses and other current assets	1,233		(121)		1,112
Property and equipment	10,366		—		10,366
Operating lease right-of-use assets	6,631		—		6,631
Accounts payable	(8,095)		(466)		(8,561)
Contract liabilities	(1,597)		(95)		(1,692)
Accrued income taxes	(686)		(37)		(723)
Current portion of operating lease obligations	(1,224)		—		(1,224)
Current portion of finance lease obligations	(1,492)		—		(1,492)
Deferred income tax liabilities	(672)		(221)		(893)
Operating lease obligations, net of current maturities	(4,897)		—		(4,897)
Finance lease obligations, net of current maturities	(3,243)		—		(3,243)
Net identifiable assets and liabilities	25,145		(564)		24,581
Unallocated intangible assets	56,650		791		57,441
Total acquired assets and liabilities	81,795		227		82,022
Goodwill	$	43,805	$	(791)	$	43,014


	June 30, 2022		December 31, 2021
Weighted-average remaining lease term - finance leases	2.2 years		0.0 years
Weighted-average remaining lease term - operating leases	3.9 years		2.9 years
Weighted-average discount rate - finance leases	2.5	%	—	%
Weighted-average discount rate - operating leases	3.9	%	3.9	%


	Six months ended June 30,
(in thousands)	2022		2021
Other information:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	6,355	$	5,069
Right-of-use asset obtained in exchange for new operating lease obligations	$	17,647	$	4,387
Right-of-use asset obtained in exchange for new finance lease obligations	$	543	$	—


(in thousands)	Finance Lease Obligations		Operating Lease Obligations		Total Lease Obligations
Remainder of 2022	$	781	$	6,378	$	7,159
2023	1,274		11,122		12,396
2024	2,145		8,124		10,269
2025	331		6,064		6,395
2026	—		4,779		4,779
2027	—		1,363		1,363
Thereafter	—		2,116		2,116
Total minimum lease payments	4,531		39,946		44,477
Financing component	(187)		(7,269)		(7,456)
Net present value of minimum lease payments	4,344		32,677		37,021
Less: current portion of finance and operating lease obligations	(1,318)		(9,405)		(10,723)
Long-term finance and operating lease obligations	$	3,026	$	23,272	$	26,298


(dollar amounts in thousands)	Inception Date	Stated Interest Rate (per annum)	Payment Frequency	Term (years)	Outstanding Balance as of June 30, 2022		Outstanding Balance as of December 31, 2021
Credit Agreement
Revolving loans	9/13/2019	Variable	Variable	5	$	51,395	$	—

Equipment Notes







Equipment Note 8	12/27/2019	2.75%	Semi-annual	5	3,987		4,503
Other equipment note	4/11/2022	4.55%	Monthly	5	64		—
					4,051		4,503
Total debt					55,446		4,503
Less: current portion of long-term debt					(1,065)		(1,039)
Long-term debt					$	54,381	$	3,464


(in thousands)	Future Equipment Notes Principal Payments
Remainder of 2022	$	529
2023	1,080
2024	2,409
2025	14
2026	14
2027	5

Total future principal payments	4,051
Less: current portion of equipment notes	(1,065)
Long-term principal obligations	$	2,986


	Three months ended June 30, 2022
	T&D				C&I				Total
(dollars in thousands)	Amount		Percent		Amount		Percent		Amount		Percent
Fixed price	$	192,934	46.5	%	$	243,682	83.2	%	$	436,616	61.7	%
Unit price	117,609		28.3		17,932		6.1		135,541		19.1
T&E	104,692		25.2		31,265		10.7		135,957		19.2

	$	415,235	100.0	%	$	292,879	100.0	%	$	708,114	100.0	%


	Three months ended June 30, 2021
	T&D				C&I				Total
(dollars in thousands)	Amount		Percent		Amount		Percent		Amount		Percent
Fixed price	$	157,421	48.2	%	$	259,213	80.3	%	$	416,634	64.1	%
Unit price	89,944		27.5		18,483		5.7		108,427		16.7
T&E	79,466		24.3		45,046		14.0		124,512		19.2

	$	326,831	100.0	%	$	322,742	100.0	%	$	649,573	100.0	%


(in thousands)	June 30, 2022		December 31, 2021
Unbilled revenue	$	165,839	$	134,187
Deferred revenue	(200,929)		(165,699)
	$	(35,090)	$	(31,512)


	Three months ended June 30,
	2022				2021
(dollars in thousands)	Amount		Percent		Amount		Percent
Contract revenues:
Transmission & Distribution	$	415,235	58.6	%	$	326,831	50.3	%
Commercial & Industrial	292,879		41.4		322,742		49.7
Total	$	708,114	100.0	%	$	649,573	100.0	%
Operating income (loss):
Transmission & Distribution	$	32,810	7.9	%	$	32,764	10.0	%
Commercial & Industrial	9,512		3.2		14,523		4.5
Total	42,322		6.0		47,287		7.3
General Corporate	(16,077)		(2.3)		(17,622)		(2.7)
Consolidated	$	26,245	3.7	%	$	29,665	4.6	%


	Six months ended June 30,
	2022				2021
(dollars in thousands)	Amount		Percent		Amount		Percent
Contract revenues:
Transmission & Distribution	$	780,091	58.0	%	$	641,739	51.7	%
Commercial & Industrial	564,647		42.0		600,320		48.3
Total	$	1,344,738	100.0	%	$	1,242,059	100.0	%
Operating income (loss):
Transmission & Distribution	$	63,240	8.1	%	$	61,437	9.6	%
Commercial & Industrial	19,602		3.5		28,796		4.8
Total	82,842		6.2		90,233		7.3
General Corporate	(31,695)		(2.4)		(33,157)		(2.7)
Consolidated	$	51,147	3.8	%	$	57,076	4.6	%


	Six months ended June 30, 2022
	T&D				C&I				Total
(dollars in thousands)	Amount		Percent		Amount		Percent		Amount		Percent
Fixed price	$	343,838	44.1	%	$	462,259	81.9	%	$	806,097	59.9	%
Unit price	221,930		28.4		32,735		5.8		254,665		19.0
T&E	214,323		27.5		69,653		12.3		283,976		21.1

	$	780,091	100.0	%	$	564,647	100.0	%	$	1,344,738	100.0	%


	Six months ended June 30, 2021
	T&D				C&I				Total
(dollars in thousands)	Amount		Percent		Amount		Percent		Amount		Percent
Fixed price	$	309,488	48.2	%	$	486,883	81.1	%	$	796,371	64.1	%
Unit price	175,289		27.3		36,910		6.2		212,199		17.1
T&E	156,962		24.5		76,527		12.7		233,489		18.8

	$	641,739	100.0	%	$	600,320	100.0	%	$	1,242,059	100.0	%


	Remaining Performance Obligations at June 30, 2022
(in thousands)	Total		Amount estimated to not be recognized within 12 months		Total at December 31, 2021
T&D	$	940,866	$	136,308	$	572,032
C&I	1,371,718		490,386		1,105,866
Total	$	2,312,584	$	626,694	$	1,677,898


	Backlog at June 30, 2022
(in thousands)	Total		Amount estimated to not be recognized within 12 months		Total backlog at December 31, 2021
T&D	$	1,062,374	$	136,308	$	676,130
C&I	1,382,468		490,386		1,113,014
Total	$	2,444,842	$	626,694	$	1,789,144


Period	Total Number of Shares Purchased	Average Price Paid per Share		Total 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 (1)
April 1, 2022 - April 30, 2022	—	$	—	—	$	—
May 1, 2022 - May 31, 2022	167,126	$	83.32	167,126	$	61,075,512
June 1, 2022 - June 30, 2022	113,781	$	83.87	113,781	$	51,532,988
Total	280,907	$	83.54	280,907


Number						Description
31.1						Certification of Chief Executive Officer pursuant to SEC Rule 13a-14(a)/15d-14(a)†
31.2						Certification of Chief Financial Officer pursuant to SEC Rule 13a-14(a)/15d-14(a)†
32.1						Certification of Chief Executive Officer pursuant to 18 U.S.C. §1350†
32.2						Certification of Chief Financial Officer pursuant to 18 U.S.C. §1350†

101.INS						Inline XBRL Instance Document*
101.SCH						Inline XBRL Taxonomy Extension Schema Document*
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document*
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document*
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document*
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document*
104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)*


			MYR GROUP INC. (Registrant)

July 27, 2022			/s/ BETTY R. JOHNSON
			Betty R. Johnson Senior Vice President and Chief Financial Officer


July 27, 2022			/s/ RICHARD S. SWARTZ, JR.

			(Principal Executive Officer) Chief Executive Officer and President


July 27, 2022			/s/ BETTY R. JOHNSON

			(Principal Financial Officer)
			Senior Vice President and Chief Financial Officer


July 27, 2022			/s/ RICHARD S. SWARTZ, JR.

			Chief Executive Officer and President