MYR(US:MYRG)2024-02-28 21:16Revenue and Customer Concentration - For the year ended December 31, 2023, the top 10 customers accounted for 37.9% of total revenues, up from 35.4% in 2022 and 34.9% in 2021[27] - Revenues from T&D customers represented 57.3% of total revenues in 2023, while C&I customers accounted for 42.7%[28] - Contract revenues for 2023 reached $3,643,905, an increase of 21.1% from $3,008,542 in 2022[277] - The transmission segment generated $1.38 billion in revenue, representing 37.9% of total revenue for 2023, an increase from 36.0% in 2022[370] Financial Performance - Gross profit for 2023 was $364,397, up from $343,962 in 2022, reflecting a gross margin improvement[277] - Net income attributable to MYR Group Inc. for 2023 was $90,990, representing an increase of 9.7% compared to $83,381 in 2022[277] - Basic earnings per share increased to $5.45 in 2023 from $4.98 in 2022, while diluted earnings per share rose to $5.40 from $4.91[277] - Total revenue for 2023 was $3.64 billion, an increase from $3.01 billion in 2022, representing a growth of 21.1%[370] - Income before income taxes for 2023 was $125.0 million, compared to $114.2 million in 2022, reflecting a year-over-year increase of 9.8%[374] Assets and Liabilities - Total assets as of December 31, 2023, were $1,578,746, a 12.9% increase from $1,398,858 in 2022[274] - Total liabilities increased to $927,544 in 2023, up from $838,658 in 2022, indicating a rise of 10.6%[274] - Shareholders' equity grew to $651,202 in 2023, compared to $560,200 in 2022, marking a 16.3% increase[274] - Accounts receivable increased to $521,893 in 2023, up from $472,543 in 2022, reflecting a growth of 10.5%[274] Backlog and Project Management - As of December 31, 2023, the total backlog is estimated at $2,512,399, with $2,078,260 expected to be recognized within the next 12 months[47] - The company’s backlog includes projects with a written award, letter of intent, or notice to proceed, but may not accurately represent future revenue due to the nature of contract cancellations[46] - The estimated remaining cost to complete bonded projects for both segments was approximately $726.1 million as of December 31, 2023[44] Employee and Labor Relations - The company employs approximately 9,000 individuals, with about 7,300 being craft employees, and 84% of craft employees are union members[58] - Approximately 84% of the Company's craft labor employees were covered by collective bargaining agreements as of December 31, 2023[323] - The Company participates in multiemployer defined benefit pension plans covering union-represented employees from over 300 local unions[404] Compliance and Regulatory Environment - The company is subject to various regulations that may require material investments in compliance processes, training, and technology[51] - The company believes it is in substantial compliance with environmental laws, which should not materially affect its financial condition[53] - The company does not expect continued compliance with regulations to have a material effect on capital expenditures or earnings[51] Debt and Interest Rates - As of December 31, 2023, the company had $13.2 million in borrowings under its Facility, which are subject to variable interest rates[249] - A permanent increase of 1% in market interest rates would decrease future income before provision for income taxes and cash flows by approximately $0.1 million annually[249] - Borrowings under revolving lines of credit increased significantly to $562,901,000 in 2023 from $198,697,000 in 2022[282] Stock and Compensation - The Company recognized stock-based compensation expense of approximately $8.4 million for the year ended December 31, 2023, an increase from $7.9 million in 2022[402] - Time-vested stock awards granted in 2023 had an outstanding unvested balance of 80,738 shares with a weighted average grant date fair value of $105.50[396] - Performance awards granted in 2023 had an outstanding unvested balance of 59,118 shares with a weighted average grant date fair value of $128.29[401] Insurance and Risk Management - The Company's insurance expense, including premiums for various coverages, was $88.3 million for the year ended December 31, 2023, compared to $77.1 million in 2022, reflecting a year-over-year increase of 15.4%[381] - The balance of accrued short- and long-term insurance liabilities at the end of 2023 was $80.065 million, slightly up from $80.039 million at the end of 2022[381] Acquisitions and Goodwill - The acquisition of Powerline Plus Ltd. was completed for a cash consideration of $110.7 million, net of cash acquired[328] - The Company performed a qualitative assessment of goodwill and intangible assets with indefinite lives in 2023 and determined no impairment was necessary[319]