MYR(MYRG)2025-02-26 21:08Revenue and Customer Concentration - For the years ended December 31, 2024, 2023, and 2022, the top 10 customers accounted for 37.8%, 37.9%, and 35.4% of total revenues, respectively, with no single customer exceeding 10% of annual revenues[27]. - Revenues from T&D customers represented 55.9%, 57.3%, and 58.0% of total revenues for the years ended December 31, 2024, 2023, and 2022, while C&I customers accounted for 44.1%, 42.7%, and 42.0%[28]. - The Company’s top ten customers accounted for approximately 37.8% of consolidated revenues in 2024, compared to 37.9% in 2023 and 35.4% in 2022[322]. Financial Performance - Contract revenues for 2024 were 3,643,905 in 2023[276]. - Gross profit for 2024 was 364,397 in 2023[276]. - Net income for 2024 was 90,990 in 2023[276]. - Total current assets decreased slightly to 1,026,244 in 2023[273]. - Total liabilities increased to 927,544 in 2023, reflecting a rise of 5%[273]. - Retained earnings decreased to 492,529 in 2023, a decline of 7.9%[273]. - The company reported a basic income per share of 5.45 in 2023[276]. - The company experienced a foreign currency translation adjustment loss of 2,420 in 2023[276]. - Total shareholders' equity decreased to 651,202 in 2023, a decline of 7.8%[273]. - Net cash flows provided by operating activities increased to 71,016,000 in 2023, representing a growth of 22.7%[281]. - Total revenues from joint ventures were 33.0 million in 2023, indicating a decline of 32.0%[293]. Backlog and Future Revenue - As of December 31, 2024, the total backlog is estimated at 2,080,323 expected to be recognized within the next 12 months[47]. - The backlog includes a proportionate share of unconsolidated joint venture backlog totaling 2.34 billion in remaining performance obligations as of December 31, 2024, indicating a strong pipeline of future work[372]. - Total remaining performance obligations as of December 31, 2024, amount to 58.4 million in borrowings under its Facility, which are subject to variable interest rates[248]. - The company entered a 200 million[359]. - The weighted average interest rate on borrowings under the credit facility was 6.63% for the year ended December 31, 2024, down from 7.07% in 2023[360]. - The company's total debt increased significantly from 74.381 million in 2024, with long-term debt rising from 70.018 million[358]. Operational and Workforce Insights - The company employs approximately 8,500 individuals, including 6,800 craft employees, with 87% of craft employees being union members[58]. - The company has developed key recruitment and retention strategies to attract and retain a diverse workforce, emphasizing safety and competitive compensation[57]. - Approximately 87% of the Company's craft labor employees were covered by collective bargaining agreements as of December 31, 2024[324]. Regulatory and Compliance - The company believes it is in substantial compliance with environmental laws and regulations, which should not materially affect financial conditions[53]. - The company is subject to various laws and regulations, including those related to worker safety and environmental protection, which may require increased operating costs[51]. - The company maintained effective internal control over financial reporting as of December 31, 2024, according to the independent auditor's report[261]. Changes in Estimates and Accounting - The company recognizes revenue on fixed price construction projects using the cost-to-cost method, which involves significant estimates[269]. - Auditing management's estimates of variable consideration for change orders and claims was identified as a critical audit matter due to the complexity and judgment involved[270]. - The company evaluates change orders and claims based on historical experience and individual assessments, which require significant judgment[269]. - During the year ended December 31, 2024, changes in estimates decreased consolidated gross margin by 4.4%, resulting in decreases in operating income of 96.9 million[299]. - For the year ended December 31, 2023, changes in estimates decreased consolidated gross margin by 1.7%, leading to decreases in operating income of 43.6 million[299]. Stock-Based Compensation and Employee Benefits - The company recognized stock-based compensation expense of approximately 8.4 million, and 12.4 million, 15.7 million for the years ended December 31, 2024, 2023, and 2022, respectively[404]. - The intrinsic value of time-vested stock awards at the time of vesting was 7.3 million, and 3.2 million, 15.7 million for the years ended December 31, 2024, 2023, and 2022, respectively[400].