MYR(US:MYRG)2022-02-24 19:20Financial Data and Key Metrics Changes - The company reported record high revenues of $2.5 billion for the full year 2021, marking the seventh consecutive year of revenue growth [8] - Fourth quarter 2021 revenues were $646 million, an increase of $38 million or 6.3% compared to the same period last year [13] - Fourth quarter net income was $20.7 million or $1.20 per diluted share, compared to $18.2 million or $1.07 per diluted share for the same period last year [17] - Full year 2021 net income reached a record $85 million, with EBITDA of $164.2 million [22] Business Line Data and Key Metrics Changes - Transmission and Distribution (T&D) segment revenues were $353.3 million for the fourth quarter, an increase of 10.9% year-over-year [13] - C&I segment revenues were $292.7 million, with a modest increase of 1.2% compared to the same period last year [15] - The T&D segment backlog was $676.1 million, while the C&I segment backlog reached a record high of $1.1 billion [18] Market Data and Key Metrics Changes - The company noted trends in the energy market indicating continued investment in clean energy and improving grid resiliency [9] - The architectural billing index and the Dodge Momentum Index showed upward trends, with the latter increasing by 23%, the strongest yearly gains since 2005 [34] Company Strategy and Development Direction - The company aims to leverage its comprehensive solutions for complex projects and maintain its status as an industry leader [11] - The recent acquisition of Powerline companies is expected to enhance the company's capabilities and market presence in Eastern Canada [10] - The company is focused on expanding its customer base and investing in clean energy projects, healthcare, and high-tech manufacturing [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges posed by COVID-19 and supply chain disruptions, particularly in the C&I segment [33][67] - The company anticipates continued growth opportunities in both T&D and C&I segments, driven by infrastructure investments and clean energy projects [41] Other Important Information - The company had a total backlog of $1.79 billion at the end of 2021, reflecting an 8.5% increase from the previous year [18] - The funded debt-to-EBITDA leverage ratio remained strong at 0.03 times as of December 31, 2021 [20] Q&A Session Summary Question: Update on large Solar EPC project awarded to CSI - Management confirmed that the project is proceeding as planned and supply chain issues have not affected it so far [47] Question: Update on lower-margin C&I projects - Management indicated that lower-margin projects will complete in the first half of the year, with some minor impacts from COVID restrictions [48][50] Question: Margin profile of Powerline Plus and M&A appetite - Management stated that Powerline Plus is expected to perform at the upper end of T&D margins, but will not be accretive in 2022 due to amortization [56][57] Question: Labor retention issues - Management acknowledged competitive labor market conditions but emphasized their focus on employee satisfaction and retention [58] Question: New transmission project award details - The project is located in the Eastern U.S. and is expected to leverage existing relationships with strong customers [64] Question: COVID restrictions and supply chain issues - Management clarified that ongoing supply chain issues are primarily due to COVID impacts, affecting project schedules [67] Question: T&D margins and competitive positioning - Management aims to operate at the upper end of the margin target, with a strong market outlook [68][71]