MYR Group Inc. Announces Second-Quarter And First-Half 2010 Results
Consolidated gross profit decreased to $16.7 million, or 11.9 percent of revenues, in the second quarter of 2010, compared to $18.8 million, or 11.5 percent of revenues, for the second quarter of 2009. As a percentage of revenues, gross profit margin increased period over period mainly due to margin increases on a few large transmission projects, which was the result of increased productivity during the three months ended June 30, 2010. Additionally, the Company experienced other cost efficiencies in its operations that had a slight positive gross margin impact period over period. These positive impacts were partially offset by a decrease in overall margins in the C&I segment and on certain smaller T&D projects. This was due to a combination of lower productivity levels compared to prior contract estimates and pricing pressures from increased competition on smaller projects.
Selling, general and administrative expenses (SG&A) decreased approximately $0.4 million, or 2.8 percent, to $11.0 million in the second quarter of 2010 compared to $11.4 million in the second quarter of 2009. The decrease was primarily due to a net decrease in personnel costs, including payroll and certain employee benefit costs.
For the second quarter of 2010, net income was $3.4 million, or $0.16 per diluted share, compared to net income of $4.3 million, or $0.21 per diluted share, for the same period of 2009. Second-quarter 2010 EBITDA was $9.7 million, or 6.9 percent of revenues, compared to $10.6 million, or 6.5 percent of revenues, in the second quarter of 2009. The increase in EBITDA as a percentage of revenues was mainly due to an increase in gross profit margin as discussed above and an increase in depreciation cost.
First-Half ResultsMYR reported first-half 2010 revenues of $289.2 million, a decrease of $6.7 million, or 2.3 percent, compared with the first half of 2009. The majority of the decrease in revenues was the result of a significant decrease in revenues from smaller projects in both reporting segments, partially offset by an increase in revenues from a few large projects in the C&I segment. The T&D segment reported revenues of $210.6 million in the first half of 2010, a decrease of 6.2 percent over the same period of 2009. The decrease in T&D segment revenues was the result of a significant reduction in revenues from smaller transmission projects, partially offset by an increase in revenues from smaller distribution projects. The C&I segment reported revenues of $78.6 million in the first half of 2010, an increase of 10.2 percent over the same period of 2009. The increase in C&I segment revenues in the first half of 2010 was largely due to a significant increase in revenues from a few large projects, partially offset by an overall decrease in revenues from smaller projects compared to the prior year period.
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