MYR Group Inc. (MYRG) Earnings Call Transcript & Summary

Welcome to the MYR Group Inc. 2021 Annual Meeting of Stockholders. It is my pleasure to introduce Ken Hartwick, Chairman of the Board of Directors of MYR Group.

Good morning. I am Ken Hartwick, Chairman of the Board of Directors. I would like to extend a warm welcome and express our appreciation to you for participating in our Annual Meeting of Stockholders and for your support of MYR. I'm joined today by our entire Board of Directors, including our President and Chief Executive Officer, Rick Swartz; as well as management from the company, including Betty Johnson, our Chief Financial Officer; Tod Cooper, our Chief Operating Officer, T&D; Jeff Waneka, Chief Operating Officer, C&I; and Will Fry, Chief Legal Officer and Corporate Secretary. Will Fry has also been appointed secretary for this meeting. Representatives from the company's independent auditor, Crowe, are also in attendance as well as our inspector of election. Due to the public health impact of the coronavirus pandemic, we are holding our meeting virtually, utilizing this webcast. We strive to make the meeting as inclusive as possible by offering our shareholders the same opportunities to participate as provided at the in-person portion of our meetings held prior to the pandemic. To provide a fair, informative and orderly process, we have established rules of conduct for this meeting. The rules of conduct, along with the meeting agenda and technical support information, can be found in the lower right-hand corner of your screen. We will conduct the meeting in accordance with these documents and your cooperation in observing the rules of conduct is greatly appreciated. [Operator Instructions]. We will do our best to respond to appropriate questions during the Q&A portion of the meeting. The meeting is now called to order. Resolutions were adopted at the February 25, 2021, meeting of the Board of Directors providing for the Annual Stockholder Meeting to be held and notice to be given. The Board fixed March 1, 2021, as the record date for determining persons entitled to notice [ or ] of and to vote at this meeting. A list of stockholders entitled to vote at the meeting is open to the examination of any stockholder on the webcast portal. Only holders of common stock on the record date are entitled to vote at this meeting. A copy of the notice of this meeting and the affidavit as to the distribution of the notice of Annual Meeting of Stockholders will be filed with the minutes of this meeting. At the close of business on March 1, 2021, the record date, 16,788,372 shares of the company's common stock were outstanding. The inspector has determined that holders of not less than 15,281,514 shares of common stock or approximately 94% of the shares outstanding on the record date are represented at this meeting in person or by proxy. I should have said 91%. Therefore, a quorum is present. Therefore, as proper notice has been given and a quorum is present, this meeting has been properly convened. At this time, we will consider the items of business on the agenda. Proposal #1, the first matter to be considered at today's meeting, which is further described in the proxy statement, is the election of 3 Class II directors to hold office for a 3-year term or until their respective successors are elected and qualified. No stockholder nominations were properly filed with the corporate secretary in advance of the meeting. Therefore, I declare the nominations for directors closed. Proposal #2, a vote on the advisory resolution to approve the compensation of our named executive officers. And Proposal #3, ratification on an advisory basis of the appointment of Crowe LLP as our independent registered public accounting firm for the fiscal year ended December 31, 2021. These proposals are described in detail in the proxy statement and the Board recommends that the stockholders vote for each of the nominees named in Proposal 1 and for Proposals 2 and 3. The company's bylaws require that a stockholder provide advanced written notice to the company of a stockholder's intention to bring a matter before the annual meeting. Since no stockholder notices were properly filed with the corporate secretary in advance of the meeting, there will be no other business considered at this meeting. It is 7:06 Mountain time, and the polls are now open. You may vote on the web portal at this time. Let me remind you that if you have already voted, there is no need for you to vote on the web portal, unless you wish to change your vote. I'll pause for a minute. [Voting]

Now that everyone has had an opportunity to vote, I declare the polls are closed, and it is 7:07 Mountain time. The inspector has informed us that based on the preliminary vote report, each of the nominees named in Proposal 1 has been elected, and Proposals 2 and 3 have passed. The inspector of election will execute a report on the results of the voting that will be filed with the minutes of meeting. Seeing there's no other -- no further official business, the meeting is adjourned. The final voting results will be included in a Form 8-K that we will file with the Securities and Exchange Commission. You can go to our website at www.myrgroup.com to access this filing in all of our other SEC filings. I would like to make a few remarks. This past year's accomplishments are the accumulation of the efforts of our talented, smart, hardworking group, and I take great pride in being part of this team. I'd like to close by extending a thank you to each and every customer for allowing us to serve you, to our stockholders for your support and to MYR Group employees everywhere for your hard work, ingenuity and passion to continue to serve our customers and communities during the COVID-19 pandemic. I would like to say a few words about the company's accomplishments and financial performance in 2020. We finished 2020 with a strong financial performance in the fourth quarter and a full year revenue of $2.25 billion, setting a record high for the sixth consecutive year. Our backlog of $1.65 billion at the end of 2020 reflects continued investment in energy and infrastructure projects and positions us well for success in 2021. In 2020, our T&D and C&I segments experienced strong bidding and project activity amid unique market conditions. Throughout 2020, we emphasized our ability to adapt while meeting client needs and keeping our team members safe in response to COVID-19 pandemic. As we look at market trends, some utilities have committed to transition to 100% clean energy or setting net zero carbon emission goals. This clean energy transformation should result in changes within our customer business models and will require significant infrastructure investments to meet these goals. Our strategic investments in growing our renewable energy capabilities positions us well today and in the future to support the changing need of our customers. Our C&I segment continues to be fueled by investments in infrastructure to support health care, data centers, warehousing and water projects. The expansion of e-commerce in response to the COVID-19 pandemic has resulted in continued investments in warehouse and distribution facilities. Our ability to conduct complex critical infrastructure facilities creates an opportunity for us to capitalize on these market trends. Our T&D and C&I segments continue to build on our strong capabilities to meet the diverse needs of our clients in these areas and positions us favorably for significant opportunities in 2021 and beyond. MYR's group consistent performance has built lasting customer relationships across the industry. We are focused on gaining deeper insights into our customer businesses to strengthen relationships, develop innovations -- innovative solutions and differentiate our services. We continually leverage the ingenuity and passion of our team members to evaluate the safety, quality and cost competitiveness of our project delivery. We believe MYR Group is well positioned to maintain our status as a leading company in the industry, and we are proud of our 2020 full year performance, which we expect to serve as a solid foundation for future growth opportunities and continued stockholder value. I would again like to express my sincere appreciation to the stockholders who participated in today's meeting as well as to those who submitted their proxies but were not able to join. This concludes the meeting, and thank you.