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MYR Group Inc. Announces Fourth-Quarter And Full-Year 2010 Results

Forward-Looking Statements

Various statements in this announcement, including those that express a belief, expectation, or intention, as well as those that are not statements of historical fact, are forward-looking statements. The forward-looking statements may include projections and estimates concerning the timing and success of specific projects and our future production, revenue, income, capital spending and investments. Our forward-looking statements are generally accompanied by words such as "estimate," "project," "predict," "believe," "expect," "anticipate," "potential," "plan," "goal," "appears" or other words that convey the uncertainty of future events or outcomes. The forward-looking statements in this announcement speak only as of the date of this announcement; we disclaim any obligation to update these statements (unless required by securities laws), and we caution you not to rely on them unduly. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. No forward-looking statement can be guaranteed and actual results may differ materially from those projected. Forward-looking statements in this press announcement should be evaluated together with the many uncertainties that affect MYR's business, particularly those mentioned in the risk factors and cautionary statements in Item 1A of MYR's Annual Report on Form 10-K for the fiscal year ended December 31, 2010, and in any risk factors or cautionary statements contained in MYR's periodic reports on Form 10-Q or current reports on Form 8-K.

MYR GROUP INC.
Unaudited Consolidated Balance Sheets
As of December 31, 2009 and December 31, 2010
     
(in thousands of dollars, except share data) 2009 2010
ASSETS    
Current assets    
Cash and cash equivalents   $ 37,576  $ 62,623
Accounts receivable, net of allowances of $1,114 and $947, respectively  100,652  107,172
Costs and estimated earnings in excess of billings on uncompleted contracts   30,740  29,299
Deferred income tax assets   10,186  10,544
Receivable for insurance claims in excess of deductibles   8,082  8,422
Refundable income taxes   3,036  2,144
Other current assets   3,308  3,719
Total current assets   193,580  223,923
Property and equipment, net of accumulated depreciation of $33,566 and $46,878,    
respectively  88,032  96,591
Goodwill   46,599  46,599
Intangible assets, net of accumulated amortization of $1,553 and $1,888, respectively  11,539  11,204
Other assets   1,899  1,831
Total assets   $ 341,649  $ 380,148
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities    
Accounts payable   $ 39,880  $ 41,309
Billings in excess of costs and estimated earnings on uncompleted contracts   25,663  45,505
Accrued self insurance   33,100  34,044
Other current liabilities   22,122  17,974
Total current liabilities   120,765  138,832
Long term debt, net of current maturities   30,000  30,000
Deferred income tax liabilities   15,870  17,971
Other liabilities   899  636
Total liabilities   167,534  187,439
Commitments and contingencies    
Stockholders' equity    
Preferred stock—$0.01 par value per share; 4,000,000 authorized shares;    
none issued and outstanding at December 31, 2009 and 2010  —   — 
Common stock—$0.01 par value per share; 100,000,000 authorized shares;    
19,807,421 and 20,007,081 shares issued and outstanding at December 31, 2009 and 2010, respectively  198  200
Additional paid-in capital   142,679  145,149
Retained earnings  31,238  47,360
Total stockholders' equity   174,115  192,709
Total liabilities and stockholders' equity   $ 341,649  $ 380,148
 
MYR GROUP INC.
Unaudited Consolidated Statements of Operations
Three and Twelve Months Ended December 31, 2009 and 2010
         
  Three months ended For the year ended
   December 31,   December 31, 
(in thousands, except per share data) 2009   2010   2009   2010 
Contract revenues   $ 173,275  $ 155,136  $ 631,168  $ 597,077
Contract costs   153,893  133,334  555,261  526,357
Gross profit   19,382  21,802  75,907  70,720
Selling, general and administrative expenses   12,542  11,995  48,467  44,630
Amortization of intangible assets   84  84  335  335
Gain on sale of property and equipment   (80)  (26)  (418)  (750)
Income from operations   6,836  9,749  27,523  26,505
Other income (expense):        
Interest income   17  21  218  58
Interest expense   (203)  (245)  (852)  (1,054)
Other, net   (29)  (30)  (208)  (144)
Income before provision for income taxes  6,621  9,495  26,681  25,365
Income tax expense  2,353  3,407  9,446  9,243
Net income  $ 4,268  $ 6,088  $ 17,235  $ 16,122
Income per common share:        
—Basic   $ 0.22  $ 0.31  $ 0.87  $ 0.81
—Diluted   $ 0.21  $ 0.29  $ 0.83  $ 0.78
Weighted average number of common shares and potential common shares outstanding:        
—Basic   19,804  19,928  19,755  19,883
—Diluted   20,748  20,832  20,702  20,782
 
MYR GROUP INC.
Unaudited Consolidated Statements of Cash Flows
Three and Twelve Months Ended December 31, 2009 and 2010
         
  Three months ended For the year ended
   December 31,   December 31, 
(in thousands of dollars)  2009   2010   2009   2010 
Cash flows from operating activities:        
Net income  $ 4,268  $ 6,088  $ 17,235  $ 16,122
Adjustments to reconcile net income to net cash flows provided by operating activities —        
Depreciation and amortization of property and equipment  3,587  4,237  13,190  15,955
Amortization of intangible assets   84  84  335  335
Stock-based compensation expense  230  393  923  1,603
Excess tax benefit from stock-based awards  (6)  (49)  (247)  (198)
Deferred income taxes   3,747  2,555  3,876  1,743
Gain on sale of property and equipment   (80)  (26)  (418)  (750)
Other non-cash items   21  21  85  85
Changes in operating assets and liabilities        
Accounts receivable, net   1,013  (9,342)  (6,604)  (6,520)
Costs and estimated earnings in excess of billings on        
uncompleted contracts   1,785  8,771  (4,919)  1,441
Receivable for insurance claims in excess of deductibles   773  (76)  886  (340)
Other assets   (3,163)  (2,584)  (1,898)  662
Accounts payable   2,423  2,495  13,781  (1,718)
Billings in excess of costs and estimated earnings on        
uncompleted contracts   200  19,093  (7,035)  19,842
Accrued self insurance   (872)  210  219  944
Other liabilities   638  678  (5,498)  (4,369)
Net cash flows provided by operating activities  14,648  32,548  23,911  44,837
Cash flows from investing activities:        
Proceeds from sale of property and equipment   200  527  748  1,278
Purchases of property and equipment   (9,428)  (9,813)  (29,680)  (21,895)
Net cash flows used in investing activities  (9,228)  (9,286)  (28,932)  (20,617)
Payments of capital lease obligations  (19)  (4)  (44)  (42)
Employee stock option transactions  13  135  351  671
Equity financing costs   —   —   (33)  — 
Excess tax benefit from stock-based awards  6  49  247  198
Net cash flows provided by financing activities  —   180  521  827
Net increase (decrease) in cash and cash equivalents  5,420  23,442  (4,500)  25,047
Beginning of period   32,156  39,181  42,076  37,576
End of period   $ 37,576  $ 62,623  $ 37,576  $ 62,623
 
MYR GROUP INC.
Unaudited Consolidated Selected Data, Net Income Per Share 
And EBITDA Reconciliation
Three and Twelve Months Ended December 31, 2009 and 2010
         
  Three months ended For the year ended
   December 31,   December 31, 
 (in thousands, except per share data)   2009   2010   2009   2010 
         
Summary Data:         
Contract revenues   $ 173,275  $ 155,136  $ 631,168  $ 597,077
Gross profit   $ 19,382  $ 21,802  $ 75,907  $ 70,720
Income from operations   $ 6,836  $ 9,749  $ 27,523  $ 26,505
Net income   $ 4,268  $ 6,088  $ 17,235  $ 16,122
         
Income per common share (1):         
- Basic   $ 0.22  $ 0.31  $ 0.87  $ 0.81
- Diluted   $ 0.21  $ 0.29  $ 0.83  $ 0.78
         
Weighted average number of common shares         
and potential common shares outstanding (1):         
- Basic   19,804  19,928  19,755  19,883
- Diluted   20,748  20,832  20,702  20,782
         
Reconciliation of Net Income to EBITDA:         
Net income   $ 4,268  $ 6,088  $ 17,235  $ 16,122
Interest expense (income), net   186  224  634  996
Provision for income taxes   2,353  3,407  9,446  9,243
Depreciation and amortization   3,671  4,321  13,525  16,290
EBITDA (2)   $ 10,478  $ 14,040  $ 40,840  $ 42,651
         
(1) The Company calculates net income per common share in accordance with ASC 260, Earnings Per Share. Basic earnings per share are calculated by dividing net income by the weighted average number of shares outstanding for the reporting period. Diluted earnings per share are computed similarly, except that it reflects the potential dilutive impact that would occur if dilutive securities were exercised into common shares. Potential common shares are not included in the denominator of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive or included performance conditions that were not met.
         
(2) EBITDA is not recognized under GAAP and does not purport to be an alternative to net income as a measure of operating performance or to net cash flows provided by operating activities as a measure of liquidity.
CONTACT: MYR Group Inc. Contact:
         Marco A. Martinez, Chief Financial Officer
         847-290-1891, investorinfo@myrgroup.com
         
         Investor Contact:
         Philip Kranz, Dresner Corporate Services
         312-780-7240, pkranz@dresnerco.com

Stock quotes in this article: MYRG 

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