myrg-20230331

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, 2023


☐			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)

Delaware

36-3158643

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer Identification No.)

12121 Grant Street,

Suite 610

Thornton,

80241

(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 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)

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

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 21, 2023, there were 16,708,109 outstanding shares of the registrant’s $0.01 par value common stock.

Table of Contents

INDEX


		Page
	Part I—Financial Information
Item 1.	Financial Statements	2
	Consolidated Balance Sheets as of March 31, 2023 (unaudited) and December 31, 2022	2
	Unaudited Consolidated Statements of Operations and Comprehensive Income for the Three Months Ended March 31, 2023 and 2022	3
	Unaudited Consolidated Statements of Shareholders’ Equity for the Three Months Ended March 31, 2023 and 2022	4
	Unaudited Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2023 and 2022	5
	Notes to Unaudited Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31
Item 4.	Controls and Procedures	31
	Part II—Other Information
Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 6.	Exhibits	33

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.

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, 2023		December 31, 2022
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	47,039	$	51,040
Accounts receivable, net of allowances of $2,008 and $2,073, respectively	418,762		472,543
Contract assets, net of allowances of $520 and $499, respectively	332,516		300,615
Current portion of receivable for insurance claims in excess of deductibles	9,408		9,325
Refundable income taxes	6,016		8,944
Prepaid expenses and other current assets	34,601		47,824
Total current assets	848,342		890,291
Property and equipment, net of accumulated depreciation of $356,613 and $351,753, respectively	237,835		233,175
Operating lease right-of-use assets	29,437		30,544
Goodwill	115,913		115,847
Intangible assets, net of accumulated amortization of $26,673 and $25,439, respectively	86,386		87,557
Receivable for insurance claims in excess of deductibles	34,728		34,210
Investment in joint ventures	4,153		3,697
Other assets	3,443		3,537
Total assets	$	1,360,237	$	1,398,858

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	5,160	$	5,074
Current portion of operating lease obligations	10,010		9,711
Current portion of finance lease obligations	1,105		1,127
Accounts payable	294,310		315,323
Contract liabilities	220,754		227,055
Current portion of accrued self-insurance	25,043		28,752

Other current liabilities	68,463		79,918
Total current liabilities	624,845		666,960
Deferred income tax liabilities	45,797		45,775
Long-term debt	20,498		35,479
Accrued self-insurance	52,435		51,287
Operating lease obligations, net of current maturities	19,435		20,845
Finance lease obligations, net of current maturities	2,039		2,313
Other liabilities	17,623		15,999
Total liabilities	782,672		838,658
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, 2023 and December 31, 2022	—		—
Common stock—$0.01 par value per share; 100,000,000 authorized shares; 16,699,201 and 16,563,767 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively	167		165
Additional paid-in capital	156,233		161,427
Accumulated other comprehensive loss	(6,164)		(6,300)
Retained earnings	427,329		404,908


Total shareholders’ equity	577,565		560,200
Total liabilities and shareholders’ equity	$	1,360,237	$	1,398,858

The accompanying notes are an integral part of these consolidated financial statements.

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)	2023	2022
Contract revenues

SEC Form 10-Q filed by MYR Group Inc.