MYR(MYRG) - 2024 Q4 - Annual Results

Revenue Performance - Fourth-quarter 2024 revenues were $829.8 million, a decrease of $174.4 million, or 17.4% compared to Q4 2023[3] - Full-year 2024 revenues totaled $3.36 billion, down $281.6 million, or 7.7% from $3.64 billion in 2023[12] - Contract revenues for the year ended December 31, 2024, were $3,362,290, a decrease of 7.7% compared to $3,643,905 in 2023[33] - Contract revenues for Q4 2024 were $829,795, a decrease of 17.3% from $1,004,197 in Q4 2023[39] Net Income and Earnings Per Share - Fourth-quarter net income was $16.0 million, or $0.99 per diluted share, compared to $24.0 million, or $1.43 per diluted share, in Q4 2023[11] - Full-year net income for 2024 was $30.3 million, or $1.83 per diluted share, down from $91.0 million, or $5.40 per diluted share, in 2023[20] - Net income for the year ended December 31, 2024, was $30,263, a significant decline of 66.7% compared to $90,990 in 2023[33] - Net income for Q4 2024 was $15,952, a decline of 33.6% compared to $24,042 in Q4 2023[39] - The company’s diluted earnings per share for the year ended December 31, 2024, was $1.83, down from $5.40 in 2023, reflecting a decline of 66%[33] Profitability Metrics - Consolidated gross profit for Q4 2024 decreased to $85.9 million, compared to $97.5 million in Q4 2023, with a gross margin increase to 10.4% from 9.7%[4] - Gross profit for the year ended December 31, 2024, was $290,319, down 20.3% from $364,397 in 2023[33] - Gross profit for Q4 2024 was $85,945, down 11.8% from $97,495 in Q4 2023[39] - EBITDA for Q4 2024 was $45,491, a decrease of 13.9% from $52,829 in Q4 2023[41] - Free cash flow for Q4 2024 was $8,815, down 59.3% from $21,679 in Q4 2023[41] Operating Performance - T&D operating income margin for Q4 2024 was 6.7%, down from 7.2% in Q4 2023, primarily due to losses on clean energy projects[5] - C&I operating income margin for Q4 2024 improved to 3.9% from 2.1% in Q4 2023, driven by better-than-anticipated productivity[6] - SG&A expenses decreased to $56.7 million in Q4 2024 from $60.0 million in Q4 2023, mainly due to lower employee incentive compensation costs[7] Balance Sheet and Cash Flow - Total assets as of December 31, 2024, were $1,574,059, a slight decrease from $1,578,746 in 2023[31] - Total liabilities increased to $973,699 as of December 31, 2024, compared to $927,544 in 2023, reflecting a rise of 5%[31] - Cash and cash equivalents decreased to $3,464 as of December 31, 2024, down from $24,899 in 2023, representing an 86% decline[31] - Operating cash flows for the year ended December 31, 2024, were $87,115, an increase of 22.7% from $71,016 in 2023[36] - The company reported a decrease in accounts receivable, net, to $653,069 as of December 31, 2024, from $521,893 in 2023, indicating a 25.1% increase[31] - The current portion of long-term debt decreased to $4,363 as of December 31, 2024, from $7,053 in 2023, a reduction of 38.1%[31] Shareholder Equity and Returns - Total shareholders' equity decreased to $600,360 in 2024 from $651,202 in 2023, a decline of 7.8%[39] - The company reported a return on equity of 4.6% for 2024, down from 16.2% in 2023[41] Tax and Debt Ratios - The effective tax rate increased to 40.9% in Q4 2024 from 32.3% in Q4 2023[39] - The funded debt to equity ratio remained stable at 0.1 for both 2024 and 2023[41] - Funded debt includes borrowings under the revolving credit facility and outstanding balances of equipment notes[1] Definitions and Calculations - EBITDA is defined as earnings before interest, taxes, depreciation, and amortization, and is used to evaluate operating performance[3] - Free cash flow is defined as cash flow from operating activities minus cash flow used in purchasing property and equipment, viewed as a measure of operational performance and liquidity[6] - Book value per period end share is calculated by dividing total shareholders' equity at the end of the period by the period end shares outstanding[7] - Tangible book value is calculated by subtracting goodwill and intangible assets from shareholders' equity at the end of the period[8] - The funded debt to equity ratio is calculated by dividing total funded debt at the end of the period by total shareholders' equity[10] - Asset turnover is calculated by dividing current period revenue by total assets at the beginning of the period[11] - Return on assets is calculated by dividing net income for the period by total assets at the beginning of the period[12] - Return on equity is calculated by dividing net income for the period by total shareholders' equity at the beginning of the period[13] - Average invested capital is calculated by adding net funded debt to total shareholders' equity and averaging the beginning and ending of each period[16]