Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 22, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-08325 | |
Entity Registrant Name | MYR GROUP INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-3158643 | |
Entity Address, Address Line One | 12150 East 112th Avenue | |
Entity Address, City or Town | Henderson, | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80640 | |
City Area Code | 303 | |
Local Phone Number | 286-8000 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | MYRG | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 16,869,947 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000700923 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 73,006 | $ 22,668 |
Accounts receivable, net of allowances of $2,166 and $1,696, respectively | 362,032 | 385,938 |
Contract assets, net of allowances of $376 and $359, respectively | 219,445 | 185,803 |
Current portion of receivable for insurance claims in excess of deductibles | 10,639 | 11,859 |
Refundable income taxes | 8,934 | 1,534 |
Other current assets | 26,579 | 28,882 |
Total current assets | 700,635 | 636,684 |
Property and equipment, net of accumulated depreciation of $313,999 and $294,366, respectively | 184,863 | 185,114 |
Operating lease right-of-use assets | 21,447 | 22,291 |
Goodwill | 66,065 | 66,065 |
Intangible assets, net of accumulated amortization of $16,201 and $14,467, respectively | 49,632 | 51,365 |
Receivable for insurance claims in excess of deductibles | 33,536 | 27,043 |
Investment in joint ventures | 3,786 | 3,040 |
Other assets | 3,863 | 4,257 |
Total assets | 1,063,827 | 995,859 |
Current liabilities: | ||
Current portion of long-term debt | 1,025 | 4,381 |
Current portion of operating lease obligations | 7,451 | 6,612 |
Current portion of finance lease obligations | 0 | 318 |
Accounts payable | 193,218 | 162,580 |
Contract liabilities | 149,847 | 158,396 |
Current portion of accrued self-insurance | 23,945 | 24,395 |
Other current liabilities | 80,215 | 86,718 |
Total current liabilities | 455,701 | 443,400 |
Deferred income tax liabilities | 19,682 | 18,339 |
Long-term debt | 3,986 | 25,039 |
Accrued self-insurance | 51,449 | 45,428 |
Operating lease obligations, net of current maturities | 14,015 | 15,730 |
Other liabilities | 22,814 | 18,631 |
Total liabilities | 567,647 | 566,567 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock—$0.01 par value per share; 4,000,000 authorized shares; none issued and outstanding at September 30, 2021 and December 31, 2020 | 0 | 0 |
Common stock—$0.01 par value per share; 100,000,000 authorized shares; 16,869,947 and 16,734,239 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 168 | 167 |
Additional paid-in capital | 161,593 | 158,618 |
Accumulated other comprehensive income | 100 | 23 |
Retained earnings | 334,315 | 270,480 |
Total stockholders’ equity attributable to MYR Group Inc. | 496,176 | 429,288 |
Noncontrolling interest | 4 | 4 |
Total stockholders’ equity | 496,180 | 429,292 |
Total liabilities and stockholders’ equity | $ 1,063,827 | $ 995,859 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 2,166 | $ 1,696 |
Contract assets, allowance | 376 | 359 |
Property and equipment, accumulated depreciation | 313,999 | 294,366 |
Intangible assets, accumulated amortization | $ 16,201 | $ 14,467 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 4,000,000 | 4,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 16,869,947 | 16,734,239 |
Common stock, shares outstanding (in shares) | 16,869,947 | 16,734,239 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Contract revenues | $ 610,182 | $ 607,901 | $ 1,852,241 | $ 1,639,422 |
Contract costs | 526,259 | 531,429 | 1,610,343 | 1,440,013 |
Gross profit | 83,923 | 76,472 | 241,898 | 199,409 |
Selling, general and administrative expenses | 53,072 | 51,443 | 154,609 | 137,688 |
Amortization of intangible assets | 578 | 578 | 1,734 | 3,009 |
Gain on sale of property and equipment | (679) | (478) | (2,473) | (1,967) |
Income from operations | 30,952 | 24,929 | 88,028 | 60,679 |
Other income (expense): | ||||
Interest income | 23 | 0 | 51 | 6 |
Interest expense | (305) | (1,113) | (1,458) | (3,941) |
Other income (expense), net | 69 | 18 | 190 | (556) |
Income before provision for income taxes | 30,739 | 23,834 | 86,811 | 56,188 |
Income tax expense | 7,568 | 6,542 | 22,493 | 15,579 |
Net income | $ 23,171 | $ 17,292 | $ 64,318 | $ 40,609 |
Income per common share: | ||||
Basic (in dollars per share) | $ 1.37 | $ 1.04 | $ 3.82 | $ 2.44 |
Diluted (in dollars per share) | $ 1.35 | $ 1.02 | $ 3.75 | $ 2.42 |
Weighted average number of common shares and potential common shares outstanding: | ||||
Basic (in shares) | 16,868 | 16,698 | 16,828 | 16,670 |
Diluted (in shares) | 17,167 | 16,882 | 17,132 | 16,798 |
Net income | $ 23,171 | $ 17,292 | $ 64,318 | $ 40,609 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (589) | (5) | 77 | 43 |
Other comprehensive income (loss): | (589) | (5) | 77 | 43 |
Total comprehensive income | $ 22,582 | $ 17,287 | $ 64,395 | $ 40,652 |
UNAUDITED CONSOLIDATED STATEM_2
UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect Adjustment | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Retained EarningsCumulative Effect Adjustment | MYR Group Inc. Stockholders' Equity | MYR Group Inc. Stockholders' EquityCumulative Effect Adjustment | Noncontrolling Interest |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Adjustment to adopt ASC 326 | $ 364,475 | $ (268) | $ 0 | $ 166 | $ 152,532 | $ (446) | $ 212,219 | $ (268) | $ 364,471 | $ (268) | $ 4 |
Balance, beginning of period at Dec. 31, 2019 | 364,475 | (268) | 0 | $ 166 | 152,532 | (446) | 212,219 | (268) | 364,471 | (268) | 4 |
Balance, beginning of period (in shares) at Dec. 31, 2019 | 16,649 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | $ 9,932 | 9,932 | 9,932 | ||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 [Member] | ||||||||||
Stock issued under compensation plans, net | $ 82 | 82 | 82 | ||||||||
Stock issued under compensation plans, net (in shares) | 55 | ||||||||||
Stock-based compensation expense | 1,080 | 1,080 | 1,080 | ||||||||
Shares repurchased | (426) | (241) | (185) | (426) | |||||||
Shares repurchased (in shares) | (20) | ||||||||||
Other comprehensive income (loss) | 87 | 87 | 87 | ||||||||
Stock issued - other | 24 | 24 | 24 | ||||||||
Stock issued - other (in shares) | 1 | ||||||||||
Balance, end of period at Mar. 31, 2020 | 374,986 | 0 | $ 166 | 153,477 | (359) | 221,698 | 374,982 | 4 | |||
Balance, end of period (in shares) at Mar. 31, 2020 | 16,685 | ||||||||||
Balance, beginning of period at Dec. 31, 2019 | 364,475 | $ (268) | 0 | $ 166 | 152,532 | (446) | 212,219 | $ (268) | 364,471 | $ (268) | 4 |
Balance, beginning of period (in shares) at Dec. 31, 2019 | 16,649 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 40,609 | ||||||||||
Other comprehensive income (loss) | 43 | ||||||||||
Balance, end of period at Sep. 30, 2020 | 408,604 | 0 | $ 167 | 156,461 | (403) | 252,375 | 408,600 | 4 | |||
Balance, end of period (in shares) at Sep. 30, 2020 | 16,719 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Adjustment to adopt ASC 326 | 374,986 | 0 | $ 166 | 153,477 | (359) | 221,698 | 374,982 | 4 | |||
Balance, beginning of period at Mar. 31, 2020 | 374,986 | 0 | $ 166 | 153,477 | (359) | 221,698 | 374,982 | 4 | |||
Balance, beginning of period (in shares) at Mar. 31, 2020 | 16,685 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 13,385 | 13,385 | 13,385 | ||||||||
Stock issued under compensation plans, net | 1 | $ 1 | 1 | ||||||||
Stock issued under compensation plans, net (in shares) | 23 | ||||||||||
Stock-based compensation expense | 1,093 | 1,093 | 1,093 | ||||||||
Other comprehensive income (loss) | (39) | (39) | (39) | ||||||||
Stock issued - other | 24 | 24 | 24 | ||||||||
Stock issued - other (in shares) | 1 | ||||||||||
Balance, end of period at Jun. 30, 2020 | 389,450 | 0 | $ 167 | 154,594 | (398) | 235,083 | 389,446 | 4 | |||
Balance, end of period (in shares) at Jun. 30, 2020 | 16,709 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Adjustment to adopt ASC 326 | 389,450 | 0 | $ 167 | 154,594 | (398) | 235,083 | 389,446 | 4 | |||
Net income | 17,292 | 17,292 | 17,292 | ||||||||
Stock issued under compensation plans, net | 224 | 224 | 224 | ||||||||
Stock issued under compensation plans, net (in shares) | 10 | ||||||||||
Stock-based compensation expense | 1,631 | 1,631 | 1,631 | ||||||||
Other comprehensive income (loss) | (5) | (5) | (5) | ||||||||
Stock issued - other | 12 | 12 | 12 | ||||||||
Balance, end of period at Sep. 30, 2020 | 408,604 | 0 | $ 167 | 156,461 | (403) | 252,375 | 408,600 | 4 | |||
Balance, end of period (in shares) at Sep. 30, 2020 | 16,719 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Adjustment to adopt ASC 326 | 408,604 | 0 | $ 167 | 156,461 | (403) | 252,375 | 408,600 | 4 | |||
Adjustment to adopt ASC 326 | 429,292 | 0 | 167 | 158,618 | 23 | 270,480 | 429,288 | 4 | |||
Balance, beginning of period at Dec. 31, 2020 | 429,292 | 0 | $ 167 | 158,618 | 23 | 270,480 | 429,288 | 4 | |||
Balance, beginning of period (in shares) at Dec. 31, 2020 | 16,734 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 19,928 | 19,928 | 19,928 | ||||||||
Stock issued under compensation plans, net | 110 | $ 1 | 109 | 110 | |||||||
Stock issued under compensation plans, net (in shares) | 123 | ||||||||||
Stock-based compensation expense | 1,487 | 1,487 | 1,487 | ||||||||
Shares repurchased | (2,618) | (2,231) | (387) | (2,618) | |||||||
Shares repurchased (in shares) | (41) | ||||||||||
Other comprehensive income (loss) | 253 | 253 | 253 | ||||||||
Stock issued - other | 12 | 12 | 12 | ||||||||
Stock issued - other (in shares) | 1 | ||||||||||
Balance, end of period at Mar. 31, 2021 | 448,464 | 0 | $ 168 | 157,995 | 276 | 290,021 | 448,460 | 4 | |||
Balance, end of period (in shares) at Mar. 31, 2021 | 16,817 | ||||||||||
Balance, beginning of period at Dec. 31, 2020 | 429,292 | 0 | $ 167 | 158,618 | 23 | 270,480 | 429,288 | 4 | |||
Balance, beginning of period (in shares) at Dec. 31, 2020 | 16,734 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 64,318 | ||||||||||
Other comprehensive income (loss) | 77 | ||||||||||
Balance, end of period at Sep. 30, 2021 | 496,180 | 0 | $ 168 | 161,593 | 100 | 334,315 | 496,176 | 4 | |||
Balance, end of period (in shares) at Sep. 30, 2021 | 16,870 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Adjustment to adopt ASC 326 | 448,464 | 0 | $ 168 | 157,995 | 276 | 290,021 | 448,460 | 4 | |||
Balance, beginning of period at Mar. 31, 2021 | 448,464 | 0 | $ 168 | 157,995 | 276 | 290,021 | 448,460 | 4 | |||
Balance, beginning of period (in shares) at Mar. 31, 2021 | 16,817 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 21,219 | 21,219 | 21,219 | ||||||||
Stock issued under compensation plans, net | 319 | $ 1 | 318 | 319 | |||||||
Stock issued under compensation plans, net (in shares) | 60 | ||||||||||
Stock-based compensation expense | 1,948 | 1,948 | 1,948 | ||||||||
Shares repurchased | (734) | $ (1) | (637) | (96) | (734) | ||||||
Shares repurchased (in shares) | (10) | ||||||||||
Other comprehensive income (loss) | 413 | 413 | 413 | ||||||||
Balance, end of period at Jun. 30, 2021 | 471,629 | 0 | $ 168 | 159,624 | 689 | 311,144 | 471,625 | 4 | |||
Balance, end of period (in shares) at Jun. 30, 2021 | 16,867 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Adjustment to adopt ASC 326 | 471,629 | 0 | $ 168 | 159,624 | 689 | 311,144 | 471,625 | 4 | |||
Net income | 23,171 | 23,171 | 23,171 | ||||||||
Stock issued under compensation plans, net | 54 | 54 | 54 | ||||||||
Stock issued under compensation plans, net (in shares) | 3 | ||||||||||
Stock-based compensation expense | 1,915 | 1,915 | 1,915 | ||||||||
Other comprehensive income (loss) | (589) | (589) | (589) | ||||||||
Balance, end of period at Sep. 30, 2021 | 496,180 | 0 | $ 168 | 161,593 | 100 | 334,315 | 496,176 | 4 | |||
Balance, end of period (in shares) at Sep. 30, 2021 | 16,870 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Adjustment to adopt ASC 326 | $ 496,180 | $ 0 | $ 168 | $ 161,593 | $ 100 | $ 334,315 | $ 496,176 | $ 4 |
UNAUDITED CONSOLIDATED STATEM_3
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 64,318 | $ 40,609 |
Adjustments to reconcile net income to net cash flows provided by operating activities: | ||
Depreciation and amortization of property and equipment | 32,884 | 32,021 |
Amortization of intangible assets | 1,734 | 3,009 |
Stock-based compensation expense | 5,350 | 3,804 |
Deferred income taxes | 1,364 | 712 |
Gain on sale of property and equipment | (2,473) | (1,967) |
Other non-cash items | 1,171 | 654 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable, net | 23,929 | (12,869) |
Contract assets, net | (33,642) | (4,754) |
Receivable for insurance claims in excess of deductibles | (5,273) | 3,103 |
Other assets | (5,786) | 7,074 |
Accounts payable | 29,874 | 7,596 |
Contract liabilities | (8,515) | 20,161 |
Accrued self insurance | 5,571 | (2,257) |
Other liabilities | (2,291) | 31,730 |
Net cash flows provided by operating activities | 108,215 | 128,626 |
Cash flows from investing activities: | ||
Proceeds from sale of property and equipment | 2,489 | 2,147 |
Purchases of property and equipment | (32,701) | (27,470) |
Net cash flows used in investing activities | (30,212) | (25,323) |
Cash flows from financing activities: | ||
Net repayments under revolving lines of credit | 0 | (65,189) |
Payment of principal obligations under equipment notes | (24,409) | (30,441) |
Payment of principal obligations under finance leases | (336) | (914) |
Proceeds from exercise of stock options | 483 | 306 |
Repurchase of common shares | (3,352) | (426) |
Other financing activities | 11 | 60 |
Net cash flows used in financing activities | (27,603) | (96,604) |
Effect of exchange rate changes on cash | (62) | (150) |
Net increase in cash and cash equivalents | 50,338 | 6,549 |
Cash and cash equivalents: | ||
Beginning of period | 22,668 | 12,397 |
End of period | $ 73,006 | $ 18,946 |
Organization, Business and Basi
Organization, Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Business and Basis of Presentation | Organization, Business and Basis of Presentation Organization and Business MYR Group Inc. (the “Company”) is a holding company of specialty electrical construction service providers and is currently conducting operations through wholly owned subsidiaries, including: The L. E. Myers Co., a Delaware corporation; Harlan Electric Company, a Michigan corporation; Great Southwestern Construction, Inc., a Colorado corporation; Sturgeon Electric Company, Inc., a Michigan corporation; MYR Energy Services, Inc., a Delaware corporation; E.S. Boulos Company, a Delaware corporation; High Country Line Construction, Inc., a Nevada corporation; Sturgeon Electric California, LLC, a Delaware limited liability company; GSW Integrated Services, LLC, a Delaware limited liability company; Huen Electric, Inc., a Delaware corporation; CSI Electrical Contractors, Inc., a Delaware corporation; MYR Transmission Services Canada, Ltd., a British Columbia corporation; Northern Transmission Services, Ltd., a British Columbia corporation and Western Pacific Enterprises Ltd., a British Columbia corporation. The Company performs construction services in two business segments: Transmission and Distribution (“T&D”), and Commercial and Industrial (“C&I”). T&D customers include investor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners and other contractors. T&D provides a broad range of services, which include design, engineering, procurement, construction, upgrade, maintenance and repair services, with a particular focus on construction, maintenance and repair. C&I customers include general contractors, commercial and industrial facility owners, government agencies and developers. C&I provides a broad range of services, which include the design, installation, maintenance and repair of commercial and industrial wiring, the installation of traffic networks and the installation of bridge, roadway and tunnel lighting. Basis of Presentation Interim Consolidated Financial Information The accompanying unaudited consolidated financial statements of the Company were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial reporting pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The Company believes that the disclosures made are adequate to make the information presented not misleading. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the financial position, results of operations, comprehensive income, stockholders’ equity and cash flows with respect to the interim consolidated financial statements, have been included. Certain reclassifications were made to prior year amounts to conform to the current year presentation. The consolidated balance sheet as of December 31, 2020 has been derived from the audited financial statements as of that date. The results of operations and comprehensive income are not necessarily indicative of the results for the full year or the results for any future periods. These financial statements should be read in conjunction with the audited financial statements and related notes for the year ended December 31, 2020, included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on March 3, 2021 (the "2020 Annual Report"). Joint Ventures and Noncontrolling Interests The Company accounts for investments in joint ventures using the proportionate consolidation method for income statement reporting and under the equity method for balance sheet reporting, unless the Company has a controlling interest causing the joint venture to be consolidated with equity owned by other joint venture partners recorded as noncontrolling interests. Under the proportionate consolidation method, joint venture activity is allocated to the appropriate line items found on the consolidated statements of operations in proportion to the percentage of participation the Company has in the joint venture. Under the equity method the net investment in joint ventures is stated as a single item on the Company’s consolidated balance sheets. If an investment in a joint venture contains a recourse or unfunded commitments to provide additional equity, distributions and/or losses in excess of the investment, a liability is recorded in other current liabilities on the Company’s consolidated balance sheets. For joint ventures in which the Company does not have a controlling interest, the Company’s share of any profits and assets and its share of any losses and liabilities are recognized based on the Company’s stated percentage partnership interest in the joint venture, and are normally recorded by the Company one month in arrears. The investments in joint ventures are recorded at cost and the carrying amounts are adjusted to recognize the Company’s proportionate share of cumulative income or loss, additional contributions made and dividends and capital distributions received. The Company records the effect of any impairment or any other-than-temporary decrease in the value of the joint venture investment as incurred, which may or may not be one month in arrears, depending on when the Company obtains the joint venture activity information. Additionally, the Company continually assesses the fair value of its investment in unconsolidated joint ventures despite using information that is one month in arrears for regular reporting purposes. The Company includes only its percentage ownership of each joint venture in its backlog. The Company is the majority controlling interest in a joint venture. As a result, the Company has consolidated the carrying value of the joint ventures’ assets and liabilities and results of operations in the Company’s consolidated financial statements. The equity owned by the other joint venture partners has been recorded as noncontrolling interest in the Company’s consolidated balance sheets, consolidated statements of stockholders’ equity, and their portions, if material, of net income (loss) and other comprehensive income shown as net income or other comprehensive income attributable to noncontrolling interest in the Company’s consolidated statements of operations and other comprehensive income. Additionally, the joint venture associated with the Company’s noncontrolling interest is a partnership, and consequently, the tax effect of only the Company’s share of the joint venture income is recognized by the Company. The majority controlled joint venture made no distributions to its partners, and the Company made no capital contributions to the joint venture, during the three and nine months ended September 30, 2021. Additionally, there have been no changes in ownership during the three and nine months ended September 30, 2021. The project associated with this joint venture was substantially completed in 2019. Foreign Currency The functional currency for the Company’s Canadian operations is the Canadian dollar. Assets and liabilities denominated in Canadian dollars are translated into U.S. dollars at the end-of-period exchange rate. Revenues and expenses are translated using average exchange rates for the periods reported. Equity accounts are translated at historical rates. Cumulative translation adjustments are included as a separate component of accumulated other comprehensive income in shareholders’ equity. Foreign currency transaction gains and losses, arising primarily from changes in exchange rates on short-term monetary assets and liabilities, and ineffective long-term monetary assets and liabilities are recorded in the “other income, net” line on the Company’s consolidated statements of operations. Foreign currency losses, recorded in other income, net, for the nine months ended September 30, 2021 were $0.1 million. Foreign currency gains, recorded in other income, net, for the nine months ended September 30, 2020 were not significant. Effective foreign currency transaction gains and losses, arising primarily from long-term monetary assets and liabilities, are recorded in the foreign currency translation adjustment line on the Company’s consolidated statements of comprehensive income. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the period reported. Actual results could differ from those estimates. The most significant estimates are related to estimates of costs to complete contracts, pending change orders and claims, shared savings, insurance reserves, income tax reserves, estimates surrounding stock-based compensation, the recoverability of goodwill and intangibles and allowance for doubtful accounts. The Company estimates a cost accrual every quarter that represents costs incurred but not invoiced for services performed or goods delivered during the period, and estimates revenue from the contract cost portion of these accruals based on current gross margin rates to be consistent with its cost method of revenue recognition. As of September 30, 2021 and 2020, the Company had recognized revenues of $4.0 million and $19.1 million, respectively, related to significant change orders and/or claims that had been included as contract price adjustments on certain contracts, some of which are multi-year projects. These change orders and/or claims are in the process of being negotiated in the normal course of business, and a portion of these recognized revenues had been included in multiple periods. The cost-to-cost method of accounting requires the Company to make estimates about the expected revenue and gross profit on each of its contracts in process. During the three months ended September 30, 2021, changes in estimates pertaining to certain projects increased consolidated gross margin by 1.4%, which resulted in increases in operating income of $8.2 million, net income of $5.9 million and diluted earnings per common share of $0.35. During the nine months ended September 30, 2021, changes in estimates pertaining to certain projects increased consolidated gross margin by 0.4%, which resulted in increases in operating income of $7.2 million, net income of $5.2 million and diluted earnings per common share of $0.30. During the three months ended September 30, 2020, changes in estimates pertaining to certain projects decreased consolidated gross margin by 0.3%, which resulted in decreases in operating income of $1.9 million, net income of $1.5 million and diluted earnings per common share of $0.09. During the nine months ended September 30, 2020, changes in estimates pertaining to certain projects decreased consolidated gross margin by 0.4%, which resulted in decreases in operating income of $7.6 million, net income of $5.5 million and diluted earnings per common share of $0.33. Recent Accounting Pronouncements Changes to U.S. GAAP are typically established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs. The Company, based on its assessment, determined that any recently issued or proposed ASUs not listed below are either not applicable to the Company or adoption will have minimal impact on its consolidated financial statements. Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes , which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistent application among reporting entities. The Company adopted this ASU in January 2021 and there was no effect on the consolidated financial statements or disclosures. |
Contract Assets and Liabilities
Contract Assets and Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | |
Contract Assets and Liabilities | Contract Assets and Liabilities Contracts with customers usually stipulate the timing of payment, which is defined by the terms found within the various contracts under which work was performed during the period. Therefore, contract assets and liabilities are created when the timing of costs incurred on work performed does not coincide with the billing terms, which frequently include retention provisions contained in each contract. The Company’s consolidated balance sheets present contract assets, which contain unbilled revenue and contract retainages associated with contract work that has been completed and billed but not paid by customers, pursuant to retainage provisions, that are generally due once the job is completed and approved. The allowance for doubtful accounts associated with contract assets was $0.4 million as of September 30, 2021 and December 31, 2020. Contract assets consisted of the following: (in thousands) September 30, December 31, Change Unbilled revenue, net $ 132,599 $ 97,543 $ 35,056 Contract retainages, net 86,846 88,260 (1,414) Contract assets, net $ 219,445 $ 185,803 $ 33,642 The Company’s consolidated balance sheets present contract liabilities which contain deferred revenue and an accrual for contracts in a loss provision. Contract liabilities consisted of the following: (in thousands) September 30, December 31, Change Deferred revenue $ 146,604 $ 155,570 $ (8,966) Accrued loss provision 3,243 2,826 417 Contract liabilities $ 149,847 $ 158,396 $ (8,549) The following table provides information about contract assets and contract liabilities from contracts with customers: (in thousands) September 30, December 31, Change Contract assets, net $ 219,445 $ 185,803 $ 33,642 Contract liabilities (149,847) (158,396) 8,549 Net contract assets (liabilities) $ 69,598 $ 27,407 $ 42,191 The difference between the opening and closing balances of the Company’s contract assets and contract liabilities primarily results from the timing of the Company’s billings in relation to its performance of work. The amounts of revenue recognized in the period that were included in the opening contract liability balances were $13.8 million and $98.0 million for the three and nine months ended September 30, 2021, respectively. The amounts of revenue recognized in the period that were included in the opening contract liability balances were $31.3 million and $57.7 million for the three and nine months ended September 30, 2020, respectively. This revenue consists primarily of work performed on previous billings to customers. The net asset position for contracts in process consisted of the following: (in thousands) September 30, December 31, Costs and estimated earnings on uncompleted contracts $ 3,969,565 $ 3,921,376 Less: billings to date 3,983,570 3,979,403 $ (14,005) $ (58,027) The net asset position for contracts in process is included within the contract asset and contract liability in the accompanying consolidated balance sheets as follows: (in thousands) September 30, December 31, Unbilled revenue $ 132,599 $ 97,543 Deferred revenue (146,604) (155,570) $ (14,005) $ (58,027) |
Lease Obligations
Lease Obligations | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Lease Obligations | Lease Obligations From time-to-time, the Company enters into non-cancelable leases for some of our facility, vehicle and equipment needs. These leases allow the Company to conserve cash by paying a monthly lease rental fee for the use of facilities, vehicles and equipment rather than purchasing them. The Company’s leases have remaining terms ranging from one The following is a summary of the lease-related assets and liabilities recorded: September 30, December 31, (in thousands) Classification on the Consolidated Balance Sheet Assets Operating lease right-of-use assets Operating lease right-of-use assets $ 21,447 $ 22,291 Finance lease right-of-use assets Property and equipment, net of accumulated depreciation — 390 Total right-of-use lease assets $ 21,447 $ 22,681 Liabilities Current Operating lease obligations Current portion of operating lease obligations $ 7,451 $ 6,612 Finance lease obligations Current portion of finance lease obligations — 318 Total current obligations 7,451 6,930 Non-current Operating lease obligations Operating lease obligations, net of current maturities 14,015 15,730 Total non-current obligations 14,015 15,730 Total lease obligations $ 21,466 $ 22,660 The following is a summary of the lease terms and discount rates: September 30, December 31, Weighted-average remaining lease term - finance leases zero years 0.4 years Weighted-average remaining lease term - operating leases 3.0 years 3.4 years Weighted-average discount rate - finance leases — % 2.6 % Weighted-average discount rate - operating leases 3.9 % 3.9 % The following is a summary of certain information related to the lease costs for finance and operating leases: (in thousands) Three months ended Nine months ended 2021 2020 2021 2020 Lease cost: Finance lease cost: Amortization of right-of-use assets $ 11 $ 240 $ 386 $ 737 Interest on lease liabilities — 7 — 27 Operating lease cost 2,515 2,327 7,474 6,875 Variable lease costs 78 106 233 259 Total lease cost $ 2,604 $ 2,680 $ 8,093 $ 7,898 The following is a summary of other information and supplemental cash flow information related to finance and operating leases: Nine months ended September 30, (in thousands) 2021 2020 Other information: Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 7,635 $ 6,676 Right-of-use asset obtained in exchange for new operating lease obligations $ 5,687 $ 5,592 The future undiscounted minimum lease payments, as reconciled to the discounted minimum lease obligation indicated on the Company’s consolidated balance sheets under operating leases, less imputed interest, as of September 30, 2021 were as follows: (in thousands) Operating Lease Remainder of 2021 $ 2,642 2022 9,430 2023 6,953 2024 3,847 2025 1,685 2026 977 Thereafter 10 Total minimum lease payments 25,544 Financing component (4,078) Net present value of minimum lease payments 21,466 Less: current portion of finance and operating lease obligations (7,451) Long-term finance and operating lease obligations $ 14,015 The financing component for operating lease obligations represents the effect of discounting the lease payments to their present value. As of September 30, 2021, the Company had no outstanding finance lease obligations. Certain subsidiaries of the Company have operating leases for facilities from third party companies that are owned, in whole or part, by employees of the subsidiaries. The terms and rental rates of these leases are at market rental rates. As of September 30, 2021, the minimum lease payments required under these leases totaled $2.5 million, which are due over the next 2.8 years. |
Lease Obligations | Lease Obligations From time-to-time, the Company enters into non-cancelable leases for some of our facility, vehicle and equipment needs. These leases allow the Company to conserve cash by paying a monthly lease rental fee for the use of facilities, vehicles and equipment rather than purchasing them. The Company’s leases have remaining terms ranging from one The following is a summary of the lease-related assets and liabilities recorded: September 30, December 31, (in thousands) Classification on the Consolidated Balance Sheet Assets Operating lease right-of-use assets Operating lease right-of-use assets $ 21,447 $ 22,291 Finance lease right-of-use assets Property and equipment, net of accumulated depreciation — 390 Total right-of-use lease assets $ 21,447 $ 22,681 Liabilities Current Operating lease obligations Current portion of operating lease obligations $ 7,451 $ 6,612 Finance lease obligations Current portion of finance lease obligations — 318 Total current obligations 7,451 6,930 Non-current Operating lease obligations Operating lease obligations, net of current maturities 14,015 15,730 Total non-current obligations 14,015 15,730 Total lease obligations $ 21,466 $ 22,660 The following is a summary of the lease terms and discount rates: September 30, December 31, Weighted-average remaining lease term - finance leases zero years 0.4 years Weighted-average remaining lease term - operating leases 3.0 years 3.4 years Weighted-average discount rate - finance leases — % 2.6 % Weighted-average discount rate - operating leases 3.9 % 3.9 % The following is a summary of certain information related to the lease costs for finance and operating leases: (in thousands) Three months ended Nine months ended 2021 2020 2021 2020 Lease cost: Finance lease cost: Amortization of right-of-use assets $ 11 $ 240 $ 386 $ 737 Interest on lease liabilities — 7 — 27 Operating lease cost 2,515 2,327 7,474 6,875 Variable lease costs 78 106 233 259 Total lease cost $ 2,604 $ 2,680 $ 8,093 $ 7,898 The following is a summary of other information and supplemental cash flow information related to finance and operating leases: Nine months ended September 30, (in thousands) 2021 2020 Other information: Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 7,635 $ 6,676 Right-of-use asset obtained in exchange for new operating lease obligations $ 5,687 $ 5,592 The future undiscounted minimum lease payments, as reconciled to the discounted minimum lease obligation indicated on the Company’s consolidated balance sheets under operating leases, less imputed interest, as of September 30, 2021 were as follows: (in thousands) Operating Lease Remainder of 2021 $ 2,642 2022 9,430 2023 6,953 2024 3,847 2025 1,685 2026 977 Thereafter 10 Total minimum lease payments 25,544 Financing component (4,078) Net present value of minimum lease payments 21,466 Less: current portion of finance and operating lease obligations (7,451) Long-term finance and operating lease obligations $ 14,015 The financing component for operating lease obligations represents the effect of discounting the lease payments to their present value. As of September 30, 2021, the Company had no outstanding finance lease obligations. Certain subsidiaries of the Company have operating leases for facilities from third party companies that are owned, in whole or part, by employees of the subsidiaries. The terms and rental rates of these leases are at market rental rates. As of September 30, 2021, the minimum lease payments required under these leases totaled $2.5 million, which are due over the next 2.8 years. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company uses the three-tier hierarchy of fair value measurement, which prioritizes the inputs used in measuring fair value based upon their degree of availability in external active markets. These tiers include: Level 1 (the highest priority), defined as observable inputs, such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3 (the lowest priority), defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. As of September 30, 2021 and December 31, 2020, the Company determined that the carrying value of cash and cash equivalents approximated fair value based on Level 1 inputs. As of September 30, 2021 and December 31, 2020, the fair values of the Company’s long-term debt and finance lease obligations were based on Level 2 inputs. The Company’s long-term debt was based on variable and fixed interest rates at September 30, 2021 and December 31, 2020, for new issues with similar remaining maturities, and approximated carrying value. In addition, based on borrowing rates currently available to the Company for borrowings with similar terms, the carrying values of the Company’s finance lease obligations also approximated fair value. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The table below reflects the Company’s total debt, including borrowings under its credit agreement and master loan agreements for equipment notes: (dollar amounts in thousands) Inception Date Stated Interest Payment Term Outstanding Balance as of September 30, 2021 Outstanding Balance as of December 31, 2020 Credit Agreement Revolving loans 9/13/2019 Variable Variable 5 $ — $ — Equipment Notes Equipment Note 6 6/25/2019 2.89% Semi-annual 7 — 12,896 Equipment Note 7 6/24/2019 3.09% Semi-annual 5 — 6,980 Equipment Note 8 12/27/2019 2.75% Semi-annual 5 5,011 5,513 Equipment Note 9 12/24/2019 3.01% Semi-annual 7 — 4,031 5,011 29,420 Total debt 5,011 29,420 Less: current portion of long-term debt (1,025) (4,381) Long-term debt $ 3,986 $ 25,039 Credit Agreement On September 13, 2019, the Company entered into a five-year amended and restated credit agreement (the “Credit Agreement”) with a syndicate of banks led by JPMorgan Chase Bank, N.A. and Bank of America, N.A, that provides for a $375 million facility (the “Facility”), subject to certain financial covenants as defined in the Credit Agreement, that may be used for revolving loans of which $150 million may be used for letters of credit. The Facility also allows for revolving loans and letters of credit in Canadian dollars and other currencies, up to the U.S. dollar equivalent of $75 million. The Company has an expansion option to increase the commitments under the Facility or enter into incremental term loans, subject to certain conditions, by up to an additional $200 million upon receipt of additional commitments from new or existing lenders. Subject to certain exceptions, the Facility is secured by substantially all of the assets of the Company and its domestic subsidiaries, and by a pledge of substantially all of the capital stock of the Company’s domestic subsidiaries and 65% of the capital stock of the direct foreign subsidiaries of the Company. Additionally, subject to certain exceptions, the Company’s domestic subsidiaries also guarantee the repayment of all amounts due under the Credit Agreement. If an event of default occurs and is continuing, on the terms and subject to the conditions set forth in the Credit Agreement, amounts outstanding under the Facility may be accelerated and may become or be declared immediately due and payable. Borrowings under the Credit Agreement are used for refinancing existing indebtedness, working capital, capital expenditures, acquisitions, share repurchases, and other general corporate purposes. Amounts borrowed under the Credit Agreement bear interest, at the Company’s option, at a rate equal to either (1) the Alternate Base Rate (as defined in the Credit Agreement), plus an applicable margin ranging from 0.00% to 0.75%; or (2) Adjusted LIBO Rate (as defined in the Credit Agreement) plus an applicable margin ranging from 1.00% to 1.75%. The applicable margin is determined based on the Company’s consolidated leverage ratio (the “Leverage Ratio”) which is defined in the Credit Agreement as Consolidated Total Indebtedness (as defined in the Credit Agreement) divided by Consolidated EBITDA (as defined in the Credit Agreement). Letters of credit issued under the Facility are subject to a letter of credit fee of 1.00% to 1.75% for non-performance letters of credit or 0.50% to 0.875% for performance letters of credit, based on the Company’s consolidated Leverage Ratio. The Company is subject to a commitment fee of 0.15% to 0.25%, based on the Company’s consolidated Leverage Ratio, on any unused portion of the Facility. The Credit Agreement restricts certain types of payments when the Company’s consolidated Leverage Ratio exceeds 2.50 or the Company's consolidated Liquidity (as defined in the Credit Agreement) is less than $50 million. Under the Credit Agreement, the Company is subject to certain financial covenants and is limited to a maximum consolidated Leverage Ratio of 3.0 and a minimum interest coverage ratio of 3.0, which is defined in the Credit Agreement as Consolidated EBITDA (as defined in the Credit Agreement) divided by interest expense (as defined in the Credit Agreement). The Credit Agreement also contains covenants including limitations on asset sales, investments, indebtedness and liens. The Company was in compliance with all of its financial covenants under the Credit Agreement as of September 30, 2021. As of September 30, 2021, the Company had no debt outstanding under the Facility and letters of credit outstanding under the Facility of approximately $12.3 million, which are almost entirely related to the Company's payment obligation under its insurance programs. As of December 31, 2020, the Company had no debt outstanding under the Facility and letters of credit outstanding under the Facility of approximately $10.4 million, including $9.8 million related to the Company's payment obligation under its insurance programs and approximately $0.6 million related to contract performance obligations. The Company had remaining deferred debt issuance costs totaling $0.9 million as of September 30, 2021, related to the line of credit. As permitted, debt issuance costs have been deferred and are presented as an asset within other assets, which is amortized as interest expense over the term of the line of credit. Equipment Notes The Company has entered into Master Equipment Loan and Security Agreements (the “Master Loan Agreements”) with multiple banks. The Master Loan Agreements may be used for the financing of equipment between the Company and the lending banks pursuant to one or more equipment notes ("Equipment Note"). Each Equipment Note executed under the Master Loan Agreements constitutes a separate, distinct and independent financing of equipment and a contractual obligation of the Company, which may contain prepayment clauses. As of September 30, 2021, the Company had one Equipment Note outstanding under the Master Loan Agreements that is collateralized by equipment and vehicles owned by the Company. The following table sets forth our remaining principal payments for the Company’s outstanding Equipment Note as of September 30, 2021: (in thousands) Future Remainder of 2021 $ 509 2022 1,039 2023 1,067 2024 2,396 2025 — 2026 — Thereafter — Total future principal payments $ 5,011 Less: current portion of equipment notes (1,025) Long-term principal obligations $ 3,986 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of Revenue A majority of the Company’s revenues are earned through contracts with customers that normally provide for payment upon completion of specified work or units of work as identified in the contract. Although there is considerable variation in the terms of these contracts, they are primarily structured as fixed-price contracts, under which the Company agrees to perform a defined scope of a project for a fixed amount, or unit-price contracts, under which the Company agrees to do the work at a fixed price per unit of work as specified in the contract. The Company also enters into time-and-equipment and time-and-materials contracts under which the Company is paid for labor and equipment at negotiated hourly billing rates and for other expenses, including materials, as incurred at rates agreed to in the contract. Finally, the Company sometimes enters into cost-plus contracts, where the Company is paid for costs plus a negotiated margin. On occasion, time-and-equipment, time-and-materials and cost-plus contracts require the Company to include a guaranteed not-to-exceed maximum price. Historically, fixed-price and unit-price contracts have had the highest potential margins; however, they have had a greater risk in terms of profitability because cost overruns may not be recoverable. Time-and-equipment, time-and-materials and cost-plus contracts have historically had less margin upside, but generally have had a lower risk of cost overruns. The Company also provides services under master service agreements (“MSAs”) and other variable-term service agreements. MSAs normally cover maintenance, upgrade and extension services, as well as new construction. Work performed under MSAs is typically billed on a unit-price, time-and-materials or time-and-equipment basis. MSAs are typically one The components of the Company’s revenue by contract type for the three and nine months ended September 30, 2021 and 2020 were as follows: Three months ended September 30, 2021 T&D C&I Total (dollars in thousands) Amount Percent Amount Percent Amount Percent Fixed price $ 122,185 39.9 % $ 246,803 81.3 % $ 368,988 60.5 % Unit price 83,200 27.1 21,567 7.1 104,767 17.2 T&E 101,161 33.0 35,266 11.6 136,427 22.3 $ 306,546 100.0 % $ 303,636 100.0 % $ 610,182 100.0 % Three months ended September 30, 2020 T&D C&I Total (dollars in thousands) Amount Percent Amount Percent Amount Percent Fixed price $ 126,588 42.2 % $ 248,577 80.7 % $ 375,165 61.7 % Unit price 88,708 29.6 22,587 7.3 111,295 18.3 T&E 84,443 28.2 36,998 12.0 121,441 20.0 $ 299,739 100.0 % $ 308,162 100.0 % $ 607,901 100.0 % The components of the Company’s revenue by contract type for the nine months ended September 30, 2021 and 2020 were as follows: Nine months ended September 30, 2021 T&D C&I Total (dollars in thousands) Amount Percent Amount Percent Amount Percent Fixed price $ 431,673 45.5 % $ 733,686 81.2 % $ 1,165,359 62.9 % Unit price 258,489 27.3 58,477 6.5 316,966 17.1 T&E 258,123 27.2 111,793 12.3 369,916 20.0 $ 948,285 100.0 % $ 903,956 100.0 % $ 1,852,241 100.0 % Nine months ended September 30, 2020 T&D C&I Total (dollars in thousands) Amount Percent Amount Percent Amount Percent Fixed price $ 374,065 44.8 % $ 654,815 81.5 % $ 1,028,880 62.8 % Unit price 236,720 28.3 59,713 7.4 296,433 18.1 T&E 224,983 26.9 89,126 11.1 314,109 19.1 $ 835,768 100.0 % $ 803,654 100.0 % $ 1,639,422 100.0 % The components of the Company’s revenue by market type for the three months ended September 30, 2021 and 2020 were as follows: Three months ended September 30, 2021 Three months ended September 30, 2020 (dollars in thousands) Amount Percent Segment Amount Percent Segment Transmission $ 165,953 27.2 % T&D $ 185,007 30.4 % T&D Distribution 140,593 23.0 T&D 114,732 18.9 T&D Electrical construction 303,636 49.8 C&I 308,162 50.7 C&I Total revenue $ 610,182 100.0 % $ 607,901 100.0 % The components of the Company’s revenue by market type for the nine months ended September 30, 2021 and 2020 were as follows: Nine months ended September 30, 2021 Nine months ended September 30, 2020 (dollars in thousands) Amount Percent Segment Amount Percent Segment Transmission $ 588,126 31.8 % T&D $ 537,762 32.8 % T&D Distribution 360,159 19.4 T&D 298,006 18.2 T&D Electrical construction 903,956 48.8 C&I 803,654 49.0 C&I Total revenue $ 1,852,241 100.0 % $ 1,639,422 100.0 % Remaining Performance Obligations As of September 30, 2021, the Company had $1.51 billion of remaining performance obligations. The Company’s remaining performance obligations include projects that have a written award, a letter of intent, a notice to proceed or an agreed upon work order to perform work on mutually accepted terms and conditions. The following table summarizes the amount of remaining performance obligations as of September 30, 2021 that the Company expects to be realized and the amount of the remaining performance obligations that the Company reasonably estimates will not be recognized within the next twelve months. Remaining Performance Obligations at September 30, 2021 (in thousands) Total Amount estimated to not be Total at December 31, 2020 T&D $ 534,964 $ 89,531 $ 645,422 C&I 974,683 207,990 889,596 Total $ 1,509,647 $ 297,521 $ 1,535,018 The Company expects a vast majority of the remaining performance obligations to be recognized within twenty-four months, although the timing of the Company’s performance is not always under its control. Additionally, the difference between the remaining performance obligations and backlog is due to the exclusion of a portion of the Company’s MSAs under certain contract types from the Company’s remaining performance obligations as these contracts can be canceled for convenience at any time by the Company or the customer without considerable cost incurred by the customer. Additional information related to backlog is provided in Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The U.S. federal statutory tax rate was 21% for each of the three and nine months ended September 30, 2021 and 2020. The Company’s effective tax rate for the three and nine months ended September 30, 2021 was 24.6% and 25.9%, respectively, of pretax income compared to the effective tax rate for the three and nine months ended September 30, 2020 of 27.4% and 27.7%, respectively. The difference between the U.S. federal statutory tax rate and the Company’s effective tax rate for the three and nine months ended September 30, 2021 was primarily due to state income taxes, foreign earnings and other permanent difference items, partially offset by a favorable impact from stock compensation excess tax benefits. The difference between the U.S. federal statutory tax rate and the Company’s effective tax rate for the three and nine months ended September 30, 2020, was primarily due to state income taxes and foreign earnings and the associated impact of the global intangible low tax income. The Company had unrecognized tax benefits of approximately $0.5 million and $0.4 million as of September 30, 2021 and December 31, 2020, respectively, which were included in other liabilities in the accompanying consolidated balance sheets. The Company’s policy is to recognize interest and penalties related to income tax liabilities as a component of income tax expense in the consolidated statements of operations. The amount of interest and penalties charged to income tax expense related to unrecognized tax benefits was not significant for the three and nine months ended September 30, 2021 and 2020. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments As of September 30, 2021, the Company had approximately $11.2 million in outstanding purchase orders for certain construction equipment, with cash payments scheduled to occur over the next eight months. Insurance and Claims Accruals The Company carries insurance policies, which are subject to certain deductibles and limits, for workers’ compensation, general liability, automobile liability and other insurance coverage. The deductible per occurrence for each line of coverage is up to $1.0 million, except for wildfire coverage which has a deductible of $2.0 million. The Company also maintains excess umbrella coverage providing higher layers of insurance coverage for losses that exhaust the limits of underlying coverage. A layer of this umbrella coverage requires the Company to pay a portion of any loss within a certain loss range and our potential exposure for such losses is up to approximately $3.8 million. The Company’s health benefit plans are subject to stop-loss limits of up to $0.2 million for qualified individuals. Losses up to the deductible and stop-loss amounts are accrued based upon the Company’s estimates of the ultimate liability for claims reported and an estimate of claims incurred but not yet reported. The insurance and claims accruals are based on known facts, actuarial estimates and historical trends. While recorded accruals are based on the ultimate liability, which includes amounts in excess of the deductible, a corresponding receivable for amounts in excess of the deductible is included in current and long-term assets in the Company’s consolidated balance sheets. Performance and Payment Bonds and Parent Guarantees In certain circumstances, the Company is required to provide performance and payment bonds in connection with its future performance on certain contractual commitments. The Company has indemnified its sureties for any expenses paid out under these bonds. As of September 30, 2021, an aggregate of approximately $1.28 billion in original face amount of bonds issued by the Company’s sureties were outstanding. The Company estimated the remaining cost to complete these bonded projects was approximately $531.5 million as of September 30, 2021. From time to time, the Company guarantees the obligations of wholly owned subsidiaries, including obligations under certain contracts with customers, certain lease agreements, and, in some states, obligations in connection with obtaining contractors’ licenses. Additionally, from time to time the Company is required to post letters of credit to guarantee the obligations of wholly owned subsidiaries, which reduces the borrowing availability under the Facility. Indemnities From time to time, pursuant to its service arrangements, the Company indemnifies its customers for claims related to the services it provides under those service arrangements. These indemnification obligations may subject the Company to indemnity claims and liabilities and related litigation. The Company is not aware of any material unrecorded liabilities for asserted claims in connection with these indemnification obligations. Collective Bargaining Agreements Most of the Company’s subsidiaries’ craft labor employees are covered by collective bargaining agreements. The agreements require the subsidiaries to pay specified wages, provide certain benefits and contribute certain amounts to multi-employer pension plans. If a subsidiary withdraws from any of the multi-employer pension plans or if the plans were to otherwise become underfunded, the subsidiary could incur liabilities for additional contributions related to these plans. Although the Company has been informed that the underfunding of some of the multi-employer pension plans to which its subsidiaries contribute have been classified as “critical” status, the Company is not currently aware of any potential liabilities related to this issue. Litigation and Other Legal Matters The Company is from time-to-time party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business. These actions typically seek, among other things, compensation for alleged personal injury, breach of contract, property damages, punitive damages, civil penalties or other losses, or injunctive or declaratory relief. The Company is routinely subject to other civil claims, litigation and arbitration, and regulatory investigations arising in the ordinary course of our business, as well as in respect of our divested businesses. These claims, lawsuits and other proceedings include claims related to the Company’s current services and operations, as well as our historic operations. With respect to all such lawsuits, claims and proceedings, the Company records reserves when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. The Company does not believe that any of these proceedings, separately or in the aggregate, would be expected to have a material adverse effect on the Company’s financial position, results of operations or cash flows. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company maintains two equity compensation plans under which stock-based compensation has been granted: the 2017 Long-Term Incentive Plan (which was amended and restated as of April 23, 2020) (the “LTIP”) and the 2007 Long-Term Incentive Plan (as amended) (the “2007 Plan”). Upon the adoption of the original LTIP in 2017, awards were no longer granted under the 2007 Plan. The LTIP provides for grants of (a) incentive stock options qualified as such under U.S. federal income tax laws, (b) stock options that do not qualify as incentive stock options, (c) stock appreciation rights, (d) restricted stock awards, (e) restricted stock units, (f) performance share awards, (g) phantom stock units, (h) stock bonuses, (i) dividend equivalents, and (j) any combination of such grants. The Company has outstanding grants of non-qualified stock options, time-vested stock awards in the form of restricted stock units and internal metric-based and market-based performance stock units. During the nine months ended September 30, 2021, the Company granted time-vested stock awards covering 57,196 shares of common stock under the LTIP, which vest ratably over three years for employee awards and after one year for non-employee director awards, at a weighted average grant date fair value of $66.80. During the nine months ended September 30, 2021, time-vested stock awards covering 87,584 shares of common stock vested at a weighted average grant date fair value of $29.20. During the nine months ended September 30, 2021, the Company granted 42,091 performance share awards under the LTIP at target, which will cliff vest, if earned, on December 31, 2023, at a weighted average grant date fair value of $80.11. The number of shares ultimately earned under a performance award may vary from zero to 200% of the target shares granted, based upon the Company’s performance compared to certain metrics. The metrics used were determined at the time of the grant by the Compensation Committee of the Board of Directors and were either based on internal measures, such as the Company’s financial performance compared to targets, or on a market-based metric, such as the Company’s stock performance compared to a peer group. Performance awards granted cliff vest following the performance period if the stated performance targets and minimum service requirements are attained and are paid in shares of the Company’s common stock. During the nine months ended September 30, 2021, plan participants exercised options to purchase 21,117 shares of the Company’s common stock with a weighted average exercise price of $22.88. The Company recognizes stock-based compensation expense related to restricted stock units based on the grant date fair value, which was the closing price of the Company’s stock on the date of grant. The fair value is expensed over the service period, which is generally three years. For performance awards, the Company recognizes stock-based compensation expense based on the grant date fair value of the award. The fair value of internal metric-based performance awards is determined by the closing stock price of the Company’s common stock on the date of the grant. The fair value of market-based performance awards is computed using a Monte Carlo simulation. Performance awards are expensed over the service period of approximately 2.8 years, and the Company adjusts the stock-based compensation expense related to internal metric-based performance awards according to its determination of the shares expected to vest at each reporting date. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information MYR Group is a holding company of specialty contractors serving electrical utility infrastructure and commercial construction markets in the United States and western Canada. The Company has two reporting segments, each a separate operating segment, which are referred to as T&D and C&I. Performance measurement and resource allocation for the reporting segments are based on many factors. The primary financial measures used to evaluate the segment information are contract revenues and income from operations, excluding general corporate expenses. General corporate expenses include corporate facility and staffing costs, which include safety costs, professional fees, IT expenses and management fees. The accounting policies of the segments are the same as those described in the Note 1–Organization, Business and Significant Accounting Policies to the 2020 Annual Report. Transmission and Distribution: The T&D segment provides a broad range of services on electric transmission and distribution networks and substation facilities which include design, engineering, procurement, construction, upgrade, maintenance and repair services with a particular focus on construction, maintenance and repair. T&D services include the construction and maintenance of high voltage transmission lines, substations and lower voltage underground and overhead distribution systems. The T&D segment also provides emergency restoration services in response to hurricane, ice or other storm-related damage. T&D customers include investor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners and other contractors. Commercial and Industrial: The C&I segment provides services such as the design, installation, maintenance and repair of commercial and industrial wiring, installation of traffic networks and the installation of bridge, roadway and tunnel lighting. Typical C&I contracts cover electrical contracting services for airports, hospitals, data centers, hotels, stadiums, convention centers, renewable energy projects, manufacturing plants, processing facilities, waste-water treatment facilities, mining facilities and transportation control and management systems. The C&I segment generally provides electric construction and maintenance services as a subcontractor to general contractors in the C&I industry, but also contracts directly with facility owners. The C&I segment has a diverse customer base with many long-standing relationships. The information in the following table is derived from the segment’s internal financial reports used for corporate management purposes: Three months ended Nine months ended (in thousands) 2021 2020 2021 2020 Contract revenues: T&D $ 306,546 $ 299,739 $ 948,285 $ 835,768 C&I 303,636 308,162 903,956 803,654 $ 610,182 $ 607,901 $ 1,852,241 $ 1,639,422 Income from operations: T&D $ 35,301 $ 32,387 $ 96,737 $ 74,189 C&I 14,139 11,732 42,935 30,002 General Corporate (18,488) (19,190) (51,644) (43,512) $ 30,952 $ 24,929 $ 88,028 $ 60,679 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company computes earnings per share using the treasury stock method. Under the treasury stock method, basic earnings per share are computed by dividing net income available to stockholders by the weighted average number of common shares outstanding during the period, and diluted earnings per share are computed by dividing net income available to stockholders by the weighted average number of common shares outstanding during the period plus all potentially dilutive common stock equivalents, except in cases where the effect of the common stock equivalent would be anti-dilutive. Net income and the weighted average number of common shares used to compute basic and diluted earnings per share were as follows: Three months ended Nine months ended (in thousands, except per share data) 2021 2020 2021 2020 Numerator: Net income $ 23,171 $ 17,292 $ 64,318 $ 40,609 Denominator: Weighted average common shares outstanding 16,868 16,698 16,828 16,670 Weighted average dilutive securities 299 184 304 128 Weighted average common shares outstanding, diluted 17,167 16,882 17,132 16,798 Income per common share: Basic $ 1.37 $ 1.04 $ 3.82 $ 2.44 Diluted $ 1.35 $ 1.02 $ 3.75 $ 2.42 For the three and nine months ended September 30, 2021 and 2020, certain common stock equivalents were excluded from the calculation of dilutive securities because their inclusion would either have been anti-dilutive or, for stock options, the exercise prices of those stock options were greater than the average market price of the Company’s common stock for the period. All of the Company’s unvested time-vested stock awards were included in the computation of weighted average dilutive securities. The following table summarizes the shares of common stock underlying the Company’s unvested performance awards that were excluded from the calculation of dilutive securities: Three months ended Nine months ended (in thousands) 2021 2020 2021 2020 Performance awards — 34 17 34 |
Organization, Business and Ba_2
Organization, Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interim Consolidated Financial Information | Interim Consolidated Financial Information The accompanying unaudited consolidated financial statements of the Company were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial reporting pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The Company believes that the disclosures made are adequate to make the information presented not misleading. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the financial position, results of operations, comprehensive income, stockholders’ equity and cash flows with respect to the interim consolidated financial statements, have been included. Certain reclassifications were made to prior year amounts to conform to the current year presentation. The consolidated balance sheet as of December 31, 2020 has been derived from the audited financial statements as of that date. The results of operations and comprehensive income are not necessarily indicative of the results for the full year or the results for any future periods. These financial statements should be read in conjunction with the audited financial statements and related notes for the year ended December 31, 2020, included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on March 3, 2021 (the "2020 Annual Report"). |
Joint Ventures and Noncontrolling Interests | Joint Ventures and Noncontrolling Interests The Company accounts for investments in joint ventures using the proportionate consolidation method for income statement reporting and under the equity method for balance sheet reporting, unless the Company has a controlling interest causing the joint venture to be consolidated with equity owned by other joint venture partners recorded as noncontrolling interests. Under the proportionate consolidation method, joint venture activity is allocated to the appropriate line items found on the consolidated statements of operations in proportion to the percentage of participation the Company has in the joint venture. Under the equity method the net investment in joint ventures is stated as a single item on the Company’s consolidated balance sheets. If an investment in a joint venture contains a recourse or unfunded commitments to provide additional equity, distributions and/or losses in excess of the investment, a liability is recorded in other current liabilities on the Company’s consolidated balance sheets. For joint ventures in which the Company does not have a controlling interest, the Company’s share of any profits and assets and its share of any losses and liabilities are recognized based on the Company’s stated percentage partnership interest in the joint venture, and are normally recorded by the Company one month in arrears. The investments in joint ventures are recorded at cost and the carrying amounts are adjusted to recognize the Company’s proportionate share of cumulative income or loss, additional contributions made and dividends and capital distributions received. The Company records the effect of any impairment or any other-than-temporary decrease in the value of the joint venture investment as incurred, which may or may not be one month in arrears, depending on when the Company obtains the joint venture activity information. Additionally, the Company continually assesses the fair value of its investment in unconsolidated joint ventures despite using information that is one month in arrears for regular reporting purposes. The Company includes only its percentage ownership of each joint venture in its backlog. The Company is the majority controlling interest in a joint venture. As a result, the Company has consolidated the carrying value of the joint ventures’ assets and liabilities and results of operations in the Company’s consolidated financial statements. The equity owned by the other joint venture partners has been recorded as noncontrolling interest in the Company’s consolidated balance sheets, consolidated statements of stockholders’ equity, and their portions, if material, of net income (loss) and other comprehensive income shown as net income or other comprehensive income attributable to noncontrolling interest in the Company’s consolidated statements of operations and other comprehensive income. Additionally, the joint venture associated with the Company’s noncontrolling interest is a partnership, and consequently, the tax effect of only the Company’s share of the joint venture income is recognized by the Company. The majority controlled joint venture made no distributions to its partners, and the Company made no capital contributions to the joint venture, during the three and nine months ended September 30, 2021. Additionally, there have been no changes in ownership during the three and nine months ended September 30, 2021. The project associated with this joint venture was substantially completed in 2019. |
Foreign Currency | Foreign Currency The functional currency for the Company’s Canadian operations is the Canadian dollar. Assets and liabilities denominated in Canadian dollars are translated into U.S. dollars at the end-of-period exchange rate. Revenues and expenses are translated using average exchange rates for the periods reported. Equity accounts are translated at historical rates. Cumulative translation adjustments are included as a separate component of accumulated other comprehensive income in shareholders’ equity. Foreign currency transaction gains and losses, arising primarily from changes in exchange rates on short-term monetary assets and liabilities, and ineffective long-term monetary assets and liabilities are recorded in the “other income, net” line on the Company’s consolidated statements of operations. Foreign currency losses, recorded in other income, net, for the nine months ended September 30, 2021 were $0.1 million. Foreign currency gains, recorded in other income, net, for the nine months ended September 30, 2020 were not significant. Effective foreign currency transaction gains and losses, arising primarily from long-term monetary assets and liabilities, are recorded in the foreign currency translation adjustment line on the Company’s consolidated statements of comprehensive income. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the period reported. Actual results could differ from those estimates. The most significant estimates are related to estimates of costs to complete contracts, pending change orders and claims, shared savings, insurance reserves, income tax reserves, estimates surrounding stock-based compensation, the recoverability of goodwill and intangibles and allowance for doubtful accounts. The Company estimates a cost accrual every quarter that represents costs incurred but not invoiced for services performed or goods delivered during the period, and estimates revenue from the contract cost portion of these accruals based on current gross margin rates to be consistent with its cost method of revenue recognition. As of September 30, 2021 and 2020, the Company had recognized revenues of $4.0 million and $19.1 million, respectively, related to significant change orders and/or claims that had been included as contract price adjustments on certain contracts, some of which are multi-year projects. These change orders and/or claims are in the process of being negotiated in the normal course of business, and a portion of these recognized revenues had been included in multiple periods. The cost-to-cost method of accounting requires the Company to make estimates about the expected revenue and gross profit on each of its contracts in process. During the three months ended September 30, 2021, changes in estimates pertaining to certain projects increased consolidated gross margin by 1.4%, which resulted in increases in operating income of $8.2 million, net income of $5.9 million and diluted earnings per common share of $0.35. During the nine months ended September 30, 2021, changes in estimates pertaining to certain projects increased consolidated gross margin by 0.4%, which resulted in increases in operating income of $7.2 million, net income of $5.2 million and diluted earnings per common share of $0.30. During the three months ended September 30, 2020, changes in estimates pertaining to certain projects decreased consolidated gross margin by 0.3%, which resulted in decreases in operating income of $1.9 million, net income of $1.5 million and diluted earnings per common share of $0.09. During the nine months ended September 30, 2020, changes in estimates pertaining to certain projects decreased consolidated gross margin by 0.4%, which resulted in decreases in operating income of $7.6 million, net income of $5.5 million and diluted earnings per common share of $0.33. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Changes to U.S. GAAP are typically established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs. The Company, based on its assessment, determined that any recently issued or proposed ASUs not listed below are either not applicable to the Company or adoption will have minimal impact on its consolidated financial statements. Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes , which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistent application among reporting entities. The Company adopted this ASU in January 2021 and there was no effect on the consolidated financial statements or disclosures. |
Fair Value Measurements | Fair Value MeasurementsThe Company uses the three-tier hierarchy of fair value measurement, which prioritizes the inputs used in measuring fair value based upon their degree of availability in external active markets. These tiers include: Level 1 (the highest priority), defined as observable inputs, such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3 (the lowest priority), defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. |
Earnings Per Share | Earnings Per ShareThe Company computes earnings per share using the treasury stock method. Under the treasury stock method, basic earnings per share are computed by dividing net income available to stockholders by the weighted average number of common shares outstanding during the period, and diluted earnings per share are computed by dividing net income available to stockholders by the weighted average number of common shares outstanding during the period plus all potentially dilutive common stock equivalents, except in cases where the effect of the common stock equivalent would be anti-dilutive. |
Contract Assets and Liabiliti_2
Contract Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | |
Schedule of contract assets and liabilities | Contract assets consisted of the following: (in thousands) September 30, December 31, Change Unbilled revenue, net $ 132,599 $ 97,543 $ 35,056 Contract retainages, net 86,846 88,260 (1,414) Contract assets, net $ 219,445 $ 185,803 $ 33,642 Contract liabilities consisted of the following: (in thousands) September 30, December 31, Change Deferred revenue $ 146,604 $ 155,570 $ (8,966) Accrued loss provision 3,243 2,826 417 Contract liabilities $ 149,847 $ 158,396 $ (8,549) The following table provides information about contract assets and contract liabilities from contracts with customers: (in thousands) September 30, December 31, Change Contract assets, net $ 219,445 $ 185,803 $ 33,642 Contract liabilities (149,847) (158,396) 8,549 Net contract assets (liabilities) $ 69,598 $ 27,407 $ 42,191 |
Schedule of net asset position for contracts in process | The net asset position for contracts in process consisted of the following: (in thousands) September 30, December 31, Costs and estimated earnings on uncompleted contracts $ 3,969,565 $ 3,921,376 Less: billings to date 3,983,570 3,979,403 $ (14,005) $ (58,027) The net asset position for contracts in process is included within the contract asset and contract liability in the accompanying consolidated balance sheets as follows: (in thousands) September 30, December 31, Unbilled revenue $ 132,599 $ 97,543 Deferred revenue (146,604) (155,570) $ (14,005) $ (58,027) |
Lease Obligations (Tables)
Lease Obligations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Summary of the lease-related assets and liabilities | The following is a summary of the lease-related assets and liabilities recorded: September 30, December 31, (in thousands) Classification on the Consolidated Balance Sheet Assets Operating lease right-of-use assets Operating lease right-of-use assets $ 21,447 $ 22,291 Finance lease right-of-use assets Property and equipment, net of accumulated depreciation — 390 Total right-of-use lease assets $ 21,447 $ 22,681 Liabilities Current Operating lease obligations Current portion of operating lease obligations $ 7,451 $ 6,612 Finance lease obligations Current portion of finance lease obligations — 318 Total current obligations 7,451 6,930 Non-current Operating lease obligations Operating lease obligations, net of current maturities 14,015 15,730 Total non-current obligations 14,015 15,730 Total lease obligations $ 21,466 $ 22,660 |
Summary of the lease terms and discount rates | The following is a summary of the lease terms and discount rates: September 30, December 31, Weighted-average remaining lease term - finance leases zero years 0.4 years Weighted-average remaining lease term - operating leases 3.0 years 3.4 years Weighted-average discount rate - finance leases — % 2.6 % Weighted-average discount rate - operating leases 3.9 % 3.9 % |
Schedule of lease costs | The following is a summary of certain information related to the lease costs for finance and operating leases: (in thousands) Three months ended Nine months ended 2021 2020 2021 2020 Lease cost: Finance lease cost: Amortization of right-of-use assets $ 11 $ 240 $ 386 $ 737 Interest on lease liabilities — 7 — 27 Operating lease cost 2,515 2,327 7,474 6,875 Variable lease costs 78 106 233 259 Total lease cost $ 2,604 $ 2,680 $ 8,093 $ 7,898 |
Summary of supplemental cash flow information | The following is a summary of other information and supplemental cash flow information related to finance and operating leases: Nine months ended September 30, (in thousands) 2021 2020 Other information: Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 7,635 $ 6,676 Right-of-use asset obtained in exchange for new operating lease obligations $ 5,687 $ 5,592 |
Schedule of future minimum operating lease payments | The future undiscounted minimum lease payments, as reconciled to the discounted minimum lease obligation indicated on the Company’s consolidated balance sheets under operating leases, less imputed interest, as of September 30, 2021 were as follows: (in thousands) Operating Lease Remainder of 2021 $ 2,642 2022 9,430 2023 6,953 2024 3,847 2025 1,685 2026 977 Thereafter 10 Total minimum lease payments 25,544 Financing component (4,078) Net present value of minimum lease payments 21,466 Less: current portion of finance and operating lease obligations (7,451) Long-term finance and operating lease obligations $ 14,015 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of total debt | The table below reflects the Company’s total debt, including borrowings under its credit agreement and master loan agreements for equipment notes: (dollar amounts in thousands) Inception Date Stated Interest Payment Term Outstanding Balance as of September 30, 2021 Outstanding Balance as of December 31, 2020 Credit Agreement Revolving loans 9/13/2019 Variable Variable 5 $ — $ — Equipment Notes Equipment Note 6 6/25/2019 2.89% Semi-annual 7 — 12,896 Equipment Note 7 6/24/2019 3.09% Semi-annual 5 — 6,980 Equipment Note 8 12/27/2019 2.75% Semi-annual 5 5,011 5,513 Equipment Note 9 12/24/2019 3.01% Semi-annual 7 — 4,031 5,011 29,420 Total debt 5,011 29,420 Less: current portion of long-term debt (1,025) (4,381) Long-term debt $ 3,986 $ 25,039 |
Schedule of remaining principal payments for long term obligations | The following table sets forth our remaining principal payments for the Company’s outstanding Equipment Note as of September 30, 2021: (in thousands) Future Remainder of 2021 $ 509 2022 1,039 2023 1,067 2024 2,396 2025 — 2026 — Thereafter — Total future principal payments $ 5,011 Less: current portion of equipment notes (1,025) Long-term principal obligations $ 3,986 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenue by contract and market type | The components of the Company’s revenue by contract type for the three and nine months ended September 30, 2021 and 2020 were as follows: Three months ended September 30, 2021 T&D C&I Total (dollars in thousands) Amount Percent Amount Percent Amount Percent Fixed price $ 122,185 39.9 % $ 246,803 81.3 % $ 368,988 60.5 % Unit price 83,200 27.1 21,567 7.1 104,767 17.2 T&E 101,161 33.0 35,266 11.6 136,427 22.3 $ 306,546 100.0 % $ 303,636 100.0 % $ 610,182 100.0 % Three months ended September 30, 2020 T&D C&I Total (dollars in thousands) Amount Percent Amount Percent Amount Percent Fixed price $ 126,588 42.2 % $ 248,577 80.7 % $ 375,165 61.7 % Unit price 88,708 29.6 22,587 7.3 111,295 18.3 T&E 84,443 28.2 36,998 12.0 121,441 20.0 $ 299,739 100.0 % $ 308,162 100.0 % $ 607,901 100.0 % The components of the Company’s revenue by contract type for the nine months ended September 30, 2021 and 2020 were as follows: Nine months ended September 30, 2021 T&D C&I Total (dollars in thousands) Amount Percent Amount Percent Amount Percent Fixed price $ 431,673 45.5 % $ 733,686 81.2 % $ 1,165,359 62.9 % Unit price 258,489 27.3 58,477 6.5 316,966 17.1 T&E 258,123 27.2 111,793 12.3 369,916 20.0 $ 948,285 100.0 % $ 903,956 100.0 % $ 1,852,241 100.0 % Nine months ended September 30, 2020 T&D C&I Total (dollars in thousands) Amount Percent Amount Percent Amount Percent Fixed price $ 374,065 44.8 % $ 654,815 81.5 % $ 1,028,880 62.8 % Unit price 236,720 28.3 59,713 7.4 296,433 18.1 T&E 224,983 26.9 89,126 11.1 314,109 19.1 $ 835,768 100.0 % $ 803,654 100.0 % $ 1,639,422 100.0 % The components of the Company’s revenue by market type for the three months ended September 30, 2021 and 2020 were as follows: Three months ended September 30, 2021 Three months ended September 30, 2020 (dollars in thousands) Amount Percent Segment Amount Percent Segment Transmission $ 165,953 27.2 % T&D $ 185,007 30.4 % T&D Distribution 140,593 23.0 T&D 114,732 18.9 T&D Electrical construction 303,636 49.8 C&I 308,162 50.7 C&I Total revenue $ 610,182 100.0 % $ 607,901 100.0 % The components of the Company’s revenue by market type for the nine months ended September 30, 2021 and 2020 were as follows: Nine months ended September 30, 2021 Nine months ended September 30, 2020 (dollars in thousands) Amount Percent Segment Amount Percent Segment Transmission $ 588,126 31.8 % T&D $ 537,762 32.8 % T&D Distribution 360,159 19.4 T&D 298,006 18.2 T&D Electrical construction 903,956 48.8 C&I 803,654 49.0 C&I Total revenue $ 1,852,241 100.0 % $ 1,639,422 100.0 % |
Schedule of amount of the remaining performance obligations that the company reasonably estimates will not be recognized within the next twelve months | The following table summarizes the amount of remaining performance obligations as of September 30, 2021 that the Company expects to be realized and the amount of the remaining performance obligations that the Company reasonably estimates will not be recognized within the next twelve months. Remaining Performance Obligations at September 30, 2021 (in thousands) Total Amount estimated to not be Total at December 31, 2020 T&D $ 534,964 $ 89,531 $ 645,422 C&I 974,683 207,990 889,596 Total $ 1,509,647 $ 297,521 $ 1,535,018 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of segment's internal financial reports | The information in the following table is derived from the segment’s internal financial reports used for corporate management purposes: Three months ended Nine months ended (in thousands) 2021 2020 2021 2020 Contract revenues: T&D $ 306,546 $ 299,739 $ 948,285 $ 835,768 C&I 303,636 308,162 903,956 803,654 $ 610,182 $ 607,901 $ 1,852,241 $ 1,639,422 Income from operations: T&D $ 35,301 $ 32,387 $ 96,737 $ 74,189 C&I 14,139 11,732 42,935 30,002 General Corporate (18,488) (19,190) (51,644) (43,512) $ 30,952 $ 24,929 $ 88,028 $ 60,679 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of weighted average number of common shares used to compute basic and dilute earnings per share | Net income and the weighted average number of common shares used to compute basic and diluted earnings per share were as follows: Three months ended Nine months ended (in thousands, except per share data) 2021 2020 2021 2020 Numerator: Net income $ 23,171 $ 17,292 $ 64,318 $ 40,609 Denominator: Weighted average common shares outstanding 16,868 16,698 16,828 16,670 Weighted average dilutive securities 299 184 304 128 Weighted average common shares outstanding, diluted 17,167 16,882 17,132 16,798 Income per common share: Basic $ 1.37 $ 1.04 $ 3.82 $ 2.44 Diluted $ 1.35 $ 1.02 $ 3.75 $ 2.42 |
Schedule of shared excluded from calculation of dilute securities | The following table summarizes the shares of common stock underlying the Company’s unvested performance awards that were excluded from the calculation of dilutive securities: Three months ended Nine months ended (in thousands) 2021 2020 2021 2020 Performance awards — 34 17 34 |
Organization, Business and Ba_3
Organization, Business and Basis of Presentation (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)$ / shares | Sep. 30, 2020USD ($)$ / shares | Sep. 30, 2021USD ($)segment$ / shares | Sep. 30, 2020USD ($)$ / shares | |
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||||
Number of business segments (segment) | segment | 2 | |||
Capital contributions to joint venture | $ 0 | $ 0 | ||
Foreign currency gains (losses) | 100,000 | $ 0 | ||
Revenue recognized, related to change orders and claims included as contract price adjustments | 4,000,000 | 19,100,000 | ||
Increase (decrease) in operating income | 30,952,000 | $ 24,929,000 | 88,028,000 | 60,679,000 |
Increase (decrease) in net income | $ 23,171,000 | $ 17,292,000 | $ 64,318,000 | $ 40,609,000 |
Increase (decrease) in diluted earnings per common share (in dollars per share) | $ / shares | $ 1.35 | $ 1.02 | $ 3.75 | $ 2.42 |
Contracts Accounted for under Percentage of Completion | ||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||||
Increase (decrease) in consolidated gross margin | 1.40% | (0.30%) | 0.40% | (0.40%) |
Increase (decrease) in operating income | $ 8,200,000 | $ (1,900,000) | $ 7,200,000 | $ (7,600,000) |
Increase (decrease) in net income | $ 5,900,000 | $ (1,500,000) | $ 5,200,000 | $ (5,500,000) |
Increase (decrease) in diluted earnings per common share (in dollars per share) | $ / shares | $ 0.35 | $ (0.09) | $ 0.30 | $ (0.33) |
Huen Electric Inc | ||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||||
Distributions to partners | $ 0 | $ 0 |
Contract Assets and Liabiliti_3
Contract Assets and Liabilities - Additional information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | |||||
Allowance for doubtful accounts associated with contract assets | $ 376 | $ 376 | $ 359 | ||
Revenues recognized during period | $ 13,800 | $ 31,300 | $ 98,000 | $ 57,700 |
Contract Assets and Liabiliti_4
Contract Assets and Liabilities - Summary of contract assets (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Contractors [Line Items] | |||
Unbilled revenue, net | $ 132,599 | $ 97,543 | |
Contract retainages, net | 86,846 | 88,260 | |
Contract assets, net | 219,445 | $ 185,803 | |
Changes in contract assets, net, Change | 33,642 | $ 4,754 | |
Change | |||
Contractors [Line Items] | |||
Unbilled revenue, net, Change | 35,056 | ||
Contract retainages, net, Change | (1,414) | ||
Changes in contract assets, net, Change | $ 33,642 |
Contract Assets and Liabiliti_5
Contract Assets and Liabilities - Summary of contract liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Contractors [Line Items] | |||
Deferred revenue | $ 146,604 | $ 155,570 | |
Accrued loss provision | 3,243 | 2,826 | |
Contract liabilities | 149,847 | $ 158,396 | |
Contract liabilities, Change | (8,515) | $ 20,161 | |
Change | |||
Contractors [Line Items] | |||
Deferred revenue, Change | (8,966) | ||
Accrued loss provision, Change | 417 | ||
Contract liabilities, Change | $ (8,549) |
Contract Assets and Liabiliti_6
Contract Assets and Liabilities - Summary of contract assets and liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Contractors [Line Items] | |||
Contract assets, net | $ 219,445 | $ 185,803 | |
Contract liabilities | (149,847) | (158,396) | |
Net contract assets (liabilities) | 69,598 | $ 27,407 | |
Contract assets, net, Change | 33,642 | $ 4,754 | |
Change | |||
Contractors [Line Items] | |||
Contract assets, net, Change | 33,642 | ||
Contract liabilities, Change | 8,549 | ||
Net contract assets (liabilities), Change | $ 42,191 |
Contract Assets and Liabiliti_7
Contract Assets and Liabilities - Contracts in process (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | ||
Costs and estimated earnings on uncompleted contracts | $ 3,969,565 | $ 3,921,376 |
Less: billings to date | 3,983,570 | 3,979,403 |
Net asset position for contracts in process | $ (14,005) | $ (58,027) |
Contract Assets and Liabiliti_8
Contract Assets and Liabilities - Summary of net asset position for contracts in process (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | ||
Unbilled revenue | $ 132,599 | $ 97,543 |
Deferred revenue | (146,604) | (155,570) |
Net asset position for contracts in process | $ (14,005) | $ (58,027) |
Lease Obligations - Additional
Lease Obligations - Additional information (Details) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Operating And Finance Leases [Line Items] | |
Option to extend lease term (up to) | 5 years |
Option to terminate leases, period | 1 year |
Outstanding finance lease obligations | $ 0 |
Minimum lease payments required | 25,544,000 |
Subsidiaries | Employees | |
Operating And Finance Leases [Line Items] | |
Minimum lease payments required | $ 2,500,000 |
Lease amortization period | 2 years 9 months 18 days |
Minimum | |
Operating And Finance Leases [Line Items] | |
Remaining lease term | 1 year |
Maximum | |
Operating And Finance Leases [Line Items] | |
Remaining lease term | 6 years |
Lease Obligations - Summary of
Lease Obligations - Summary of lease-related assets and liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Operating lease right-of-use assets | $ 21,447 | $ 22,291 |
Finance lease right-of-use assets | $ 0 | 390 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment, net of accumulated depreciation of $313,999 and $294,366, respectively | |
Total right-of-use lease assets | $ 21,447 | 22,681 |
Current | ||
Operating lease obligations | 7,451 | 6,612 |
Finance lease obligations | 0 | 318 |
Total current obligations | 7,451 | 6,930 |
Non-current | ||
Operating lease obligations | 14,015 | 15,730 |
Total non-current obligations | 14,015 | 15,730 |
Total lease obligations | $ 21,466 | $ 22,660 |
Lease Obligations - Summary o_2
Lease Obligations - Summary of the lease terms and discount rates (Details) | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Weighted-average remaining lease term - finance leases | 0 days | 4 months 24 days |
Weighted-average remaining lease term - operating leases | 3 years | 3 years 4 months 24 days |
Weighted-average discount rate - finance leases | 0.00% | 2.60% |
Weighted-average discount rate - operating leases | 3.90% | 3.90% |
Lease Obligations - Summary o_3
Lease Obligations - Summary of lease related costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Lease cost: | ||||
Amortization of right-of-use assets | $ 11 | $ 240 | $ 386 | $ 737 |
Interest on lease liabilities | 0 | 7 | 0 | 27 |
Operating lease cost | 2,515 | 2,327 | 7,474 | 6,875 |
Variable lease costs | 78 | 106 | 233 | 259 |
Total lease cost | $ 2,604 | $ 2,680 | $ 8,093 | $ 7,898 |
Lease Obligations - Summary o_4
Lease Obligations - Summary of other and supplemental cash flow information related to leases (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | $ 7,635 | $ 6,676 |
Right-of-use asset obtained in exchange for new operating lease obligations | $ 5,687 | $ 5,592 |
Lease Obligations - Schedule of
Lease Obligations - Schedule of future minimum lease payments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Operating Lease Obligations | ||
Remainder of 2021 | $ 2,642 | |
2022 | 9,430 | |
2023 | 6,953 | |
2024 | 3,847 | |
2025 | 1,685 | |
2026 | 977 | |
Thereafter | 10 | |
Total minimum lease payments | 25,544 | |
Financing component | (4,078) | |
Net present value of minimum lease payments | 21,466 | |
Less: current portion of finance and operating lease obligations | (7,451) | $ (6,612) |
Operating lease obligations, net of current maturities | $ 14,015 | $ 15,730 |
Debt - Summary of total debt (D
Debt - Summary of total debt (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Total future principal payments | $ 5,011 | $ 29,420 |
Less: current portion of long-term debt | (1,025) | (4,381) |
Long-term debt | 3,986 | 25,039 |
Notes payable to banks | ||
Debt Instrument [Line Items] | ||
Total future principal payments | $ 5,011 | 29,420 |
Notes payable to banks | Equipment Note 6 | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate (per annum) | 2.89% | |
Term (years) | 7 years | |
Total future principal payments | $ 0 | 12,896 |
Notes payable to banks | Equipment Note 7 | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate (per annum) | 3.09% | |
Term (years) | 5 years | |
Total future principal payments | $ 0 | 6,980 |
Notes payable to banks | Equipment Note 8 | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate (per annum) | 2.75% | |
Term (years) | 5 years | |
Total future principal payments | $ 5,011 | 5,513 |
Notes payable to banks | Equipment Note 9 | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate (per annum) | 3.01% | |
Term (years) | 7 years | |
Total future principal payments | $ 0 | 4,031 |
Revolving loans | ||
Debt Instrument [Line Items] | ||
Term (years) | 5 years | |
Total future principal payments | $ 0 | $ 0 |
Debt - Additional information (
Debt - Additional information (Details) | Sep. 13, 2019USD ($) | Sep. 30, 2021USD ($)equipment_note | Dec. 31, 2020USD ($) |
Revolving loans | |||
Debt Instrument [Line Items] | |||
Debt instrument term | 5 years | ||
Secured Debt | Credit Agreement | |||
Debt Instrument [Line Items] | |||
Debt instrument term | 5 years | ||
Maximum borrowing capacity | $ 375,000,000 | ||
Option to increase borrowing capacity | $ 200,000,000 | ||
Percentage of capital stock from direct foreign subsidiaries | 65.00% | ||
Debt instrument covenant leveraged debt ratio restriction | 2.50 | ||
Debt instrument restricted maximum liquidity | $ 50,000,000 | ||
Leverage coverage ratio | 3 | ||
Interest coverage ratio | 3 | ||
Deferred debt issuance costs | $ 900,000 | ||
Secured Debt | Credit Agreement | Minimum | |||
Debt Instrument [Line Items] | |||
Commitment fee on unused capacity | 0.15% | ||
Secured Debt | Credit Agreement | Maximum | |||
Debt Instrument [Line Items] | |||
Commitment fee on unused capacity | 0.25% | ||
Secured Debt | Credit Agreement | Base Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 0.00% | ||
Secured Debt | Credit Agreement | Base Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 0.75% | ||
Secured Debt | Credit Agreement | London Interbank Offered Rate (LIBOR) | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 1.00% | ||
Secured Debt | Credit Agreement | London Interbank Offered Rate (LIBOR) | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 1.75% | ||
Secured Debt | Credit Agreement | Letter of credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 150,000,000 | ||
Letters of credit outstanding | 12,300,000 | $ 10,400,000 | |
Secured Debt | Credit Agreement | Letter of credit | Insurance program obligations | |||
Debt Instrument [Line Items] | |||
Letters of credit outstanding | 12,300,000 | 9,800,000 | |
Secured Debt | Credit Agreement | Letter of credit | Contract performance obligations | |||
Debt Instrument [Line Items] | |||
Letters of credit outstanding | 600,000 | ||
Secured Debt | Credit Agreement | Revolving loans and letters of credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 75,000,000 | ||
Secured Debt | Credit Agreement | Non-performance letters of credit | Minimum | |||
Debt Instrument [Line Items] | |||
Letter of credit facility commitment percentage | 1.00% | ||
Secured Debt | Credit Agreement | Non-performance letters of credit | Maximum | |||
Debt Instrument [Line Items] | |||
Letter of credit facility commitment percentage | 1.75% | ||
Secured Debt | Credit Agreement | Performance letters of credit | Minimum | |||
Debt Instrument [Line Items] | |||
Letter of credit facility commitment percentage | 0.50% | ||
Secured Debt | Credit Agreement | Performance letters of credit | Maximum | |||
Debt Instrument [Line Items] | |||
Letter of credit facility commitment percentage | 0.875% | ||
Secured Debt | Credit Agreement | Revolving loans | |||
Debt Instrument [Line Items] | |||
Debt outstanding under facility | $ 0 | $ 0 | |
Notes payable to banks | Master Loan Agreement | |||
Debt Instrument [Line Items] | |||
Number of equipment notes (equipment note) | equipment_note | 1 |
Debt - Schedule of remaining pr
Debt - Schedule of remaining principal payments for long term obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total future principal payments | $ 5,011 | $ 29,420 |
Less: current portion of equipment notes | (1,025) | (4,381) |
Long-term principal obligations | 3,986 | 25,039 |
Notes payable to banks | ||
Debt Instrument [Line Items] | ||
Total future principal payments | 5,011 | $ 29,420 |
Master Loan Agreement | Notes payable to banks | ||
Debt Instrument [Line Items] | ||
Remainder of 2021 | 509 | |
2022 | 1,039 | |
2023 | 1,067 | |
2024 | 2,396 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 0 | |
Total future principal payments | 5,011 | |
Less: current portion of equipment notes | (1,025) | |
Long-term principal obligations | $ 3,986 |
Revenue Recognition - Additiona
Revenue Recognition - Additional information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Disaggregation of Revenue [Line Items] | |
Remaining performance obligations | $ 1,510 |
Minimum | |
Disaggregation of Revenue [Line Items] | |
Term of master service agreements | 1 year |
Short termination notice of master service agreements | 30 days |
Maximum | |
Disaggregation of Revenue [Line Items] | |
Term of master service agreements | 3 years |
Short termination notice of master service agreements | 90 days |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of revenue by contract type (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Contract revenues | $ 610,182 | $ 607,901 | $ 1,852,241 | $ 1,639,422 |
Product concentration risk | Revenue benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, Percent | 100.00% | 100.00% | 100.00% | 100.00% |
Fixed price | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract revenues | $ 368,988 | $ 375,165 | $ 1,165,359 | $ 1,028,880 |
Fixed price | Product concentration risk | Revenue benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, Percent | 60.50% | 61.70% | 62.90% | 62.80% |
Unit price | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract revenues | $ 104,767 | $ 111,295 | $ 316,966 | $ 296,433 |
Unit price | Product concentration risk | Revenue benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, Percent | 17.20% | 18.30% | 17.10% | 18.10% |
T&E | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract revenues | $ 136,427 | $ 121,441 | $ 369,916 | $ 314,109 |
T&E | Product concentration risk | Revenue benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, Percent | 22.30% | 20.00% | 20.00% | 19.10% |
T&D | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract revenues | $ 306,546 | $ 299,739 | $ 948,285 | $ 835,768 |
T&D | Product concentration risk | Revenue benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, Percent | 100.00% | 100.00% | 100.00% | 100.00% |
T&D | Fixed price | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract revenues | $ 122,185 | $ 126,588 | $ 431,673 | $ 374,065 |
T&D | Fixed price | Product concentration risk | Revenue benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, Percent | 39.90% | 42.20% | 45.50% | 44.80% |
T&D | Unit price | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract revenues | $ 83,200 | $ 88,708 | $ 258,489 | $ 236,720 |
T&D | Unit price | Product concentration risk | Revenue benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, Percent | 27.10% | 29.60% | 27.30% | 28.30% |
T&D | T&E | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract revenues | $ 101,161 | $ 84,443 | $ 258,123 | $ 224,983 |
T&D | T&E | Product concentration risk | Revenue benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, Percent | 33.00% | 28.20% | 27.20% | 26.90% |
C&I | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract revenues | $ 303,636 | $ 308,162 | $ 903,956 | $ 803,654 |
C&I | Product concentration risk | Revenue benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, Percent | 100.00% | 100.00% | 100.00% | 100.00% |
C&I | Fixed price | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract revenues | $ 246,803 | $ 248,577 | $ 733,686 | $ 654,815 |
C&I | Fixed price | Product concentration risk | Revenue benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, Percent | 81.30% | 80.70% | 81.20% | 81.50% |
C&I | Unit price | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract revenues | $ 21,567 | $ 22,587 | $ 58,477 | $ 59,713 |
C&I | Unit price | Product concentration risk | Revenue benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, Percent | 7.10% | 7.30% | 6.50% | 7.40% |
C&I | T&E | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract revenues | $ 35,266 | $ 36,998 | $ 111,793 | $ 89,126 |
C&I | T&E | Product concentration risk | Revenue benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, Percent | 11.60% | 12.00% | 12.30% | 11.10% |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of revenue by market type (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Contract revenues | $ 610,182 | $ 607,901 | $ 1,852,241 | $ 1,639,422 |
Product concentration risk | Revenue benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, Percent | 100.00% | 100.00% | 100.00% | 100.00% |
T&D | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract revenues | $ 306,546 | $ 299,739 | $ 948,285 | $ 835,768 |
T&D | Product concentration risk | Revenue benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, Percent | 100.00% | 100.00% | 100.00% | 100.00% |
T&D | Transmission | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract revenues | $ 165,953 | $ 185,007 | $ 588,126 | $ 537,762 |
T&D | Transmission | Product concentration risk | Revenue benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, Percent | 27.20% | 30.40% | 31.80% | 32.80% |
T&D | Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract revenues | $ 140,593 | $ 114,732 | $ 360,159 | $ 298,006 |
T&D | Distribution | Product concentration risk | Revenue benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, Percent | 23.00% | 18.90% | 19.40% | 18.20% |
C&I | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract revenues | $ 303,636 | $ 308,162 | $ 903,956 | $ 803,654 |
C&I | Product concentration risk | Revenue benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, Percent | 100.00% | 100.00% | 100.00% | 100.00% |
C&I | Electrical construction | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract revenues | $ 303,636 | $ 308,162 | $ 903,956 | $ 803,654 |
C&I | Electrical construction | Product concentration risk | Revenue benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, Percent | 49.80% | 50.70% | 48.80% | 49.00% |
Revenue Recognition - Summary o
Revenue Recognition - Summary of remaining performance obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligations | $ 1,510,000 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation, term | 1 year | |
Remaining performance obligations | $ 1,535,018 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | T&D | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation, term | 1 year | |
Remaining performance obligations | $ 645,422 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | C&I | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation, term | 1 year | |
Remaining performance obligations | $ 889,596 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation, term | 1 year | |
Remaining performance obligations | $ 1,509,647 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | T&D | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation, term | 1 year | |
Remaining performance obligations | $ 534,964 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | C&I | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation, term | 1 year | |
Remaining performance obligations | $ 974,683 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation, term | 1 year | |
Remaining performance obligations | $ 297,521 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | T&D | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation, term | 1 year | |
Remaining performance obligations | $ 89,531 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | C&I | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation, term | 1 year | |
Remaining performance obligations | $ 207,990 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Federal statutory tax rate | 21.00% | 21.00% | 21.00% | 21.00% | |
Effective tax rate | 24.60% | 27.40% | 25.90% | 27.70% | |
Unrecognized tax benefits | $ 0.5 | $ 0.5 | $ 0.4 | ||
Interest and penalties of unrecognized tax benefits | $ 0 | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Other Commitments [Line Items] | |
Purchase orders outstanding | $ 11,200,000 |
Purchase orders outstanding, term | 8 months |
Performance Guarantee | |
Other Commitments [Line Items] | |
Bonds outstanding | $ 1,280,000,000 |
Estimated remaining costs for bonded projects | 531,500,000 |
Contingencies Excluding Wildfire and Health Insurance | |
Other Commitments [Line Items] | |
Insurance coverage deductible | 1,000,000 |
Wildfire | |
Other Commitments [Line Items] | |
Insurance coverage deductible | 2,000,000 |
Contingency Umbrella Exposure Limit | |
Other Commitments [Line Items] | |
Umbrella exposure limit | 3,800,000 |
Health Insurance | |
Other Commitments [Line Items] | |
Insurance coverage deductible | $ 200,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) | 9 Months Ended |
Sep. 30, 2021plan$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of equity compensation plans (plan) | plan | 2 |
Long-Term Incentive Plan | Time Vested Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted (in shares) | shares | 57,196 |
Shares granted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 66.80 |
Shares vested (in shares) | shares | 87,584 |
Shares vested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 29.20 |
Long-Term Incentive Plan | Time Vested Stock Awards | Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
Service period | 3 years |
Long-Term Incentive Plan | Time Vested Stock Awards | Non-employee Directors | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 1 year |
Long-Term Incentive Plan | Performance Awards | Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted (in shares) | shares | 42,091 |
Shares granted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 80.11 |
Service period | 2 years 9 months 18 days |
Long-Term Incentive Plan | Performance Awards | Employees | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of potential target shares awarded | 0.00% |
Long-Term Incentive Plan | Performance Awards | Employees | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of potential target shares awarded | 200.00% |
Long-Term Incentive Plan | Stock Options | Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares exercised (in shares) | shares | 21,117 |
Shares exercised, weighted average exercise price (in dollars per share) | $ / shares | $ 22.88 |
Segment Information - Additiona
Segment Information - Additional information (Details) | 9 Months Ended |
Sep. 30, 2021segment | |
Segment Reporting [Abstract] | |
Number of business segments (segment) | 2 |
Segment Information - Summary o
Segment Information - Summary of segment's internal financial reports (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Contract revenues: | $ 610,182 | $ 607,901 | $ 1,852,241 | $ 1,639,422 |
Income from operations: | 30,952 | 24,929 | 88,028 | 60,679 |
Corporate, Non-Segment | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations: | (18,488) | (19,190) | (51,644) | (43,512) |
T&D | ||||
Segment Reporting Information [Line Items] | ||||
Contract revenues: | 306,546 | 299,739 | 948,285 | 835,768 |
T&D | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations: | 35,301 | 32,387 | 96,737 | 74,189 |
C&I | ||||
Segment Reporting Information [Line Items] | ||||
Contract revenues: | 303,636 | 308,162 | 903,956 | 803,654 |
C&I | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations: | $ 14,139 | $ 11,732 | $ 42,935 | $ 30,002 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of weighted average number of shares outstanding (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator: | ||||
Net income | $ 23,171 | $ 17,292 | $ 64,318 | $ 40,609 |
Denominator: | ||||
Weighted average common shares outstanding (in shares) | 16,868 | 16,698 | 16,828 | 16,670 |
Weighted average dilutive securities (in shares) | 299 | 184 | 304 | 128 |
Weighted average common shares outstanding, diluted (in shares) | 17,167 | 16,882 | 17,132 | 16,798 |
Income per common share: | ||||
Basic (in dollars per share) | $ 1.37 | $ 1.04 | $ 3.82 | $ 2.44 |
Diluted (in dollars per share) | $ 1.35 | $ 1.02 | $ 3.75 | $ 2.42 |
Earnings Per Share - Summary _2
Earnings Per Share - Summary of shares excluded from calculation of diluted securities (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Performance Awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings (in shares) | 0 | 34 | 17 | 34 |