Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 27, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | MYR GROUP INC. | |
Entity Central Index Key | 700,923 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | MYRG | |
Entity Common Stock, Shares Outstanding | 16,462,023 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 1,682 | $ 23,846 |
Accounts receivable, net of allowances of $606 and $432, respectively | 274,249 | 234,642 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 107,818 | 69,950 |
Current portion of receivable for insurance claims in excess of deductibles | 4,003 | 3,785 |
Refundable income taxes, net | 403 | 2,474 |
Other current assets | 5,279 | 8,202 |
Total current assets | 393,434 | 342,899 |
Property and equipment, net of accumulated depreciation of $228,185 and $209,466, respectively | 150,248 | 154,891 |
Goodwill | 46,981 | 46,781 |
Intangible assets, net of accumulated amortization of $5,262 and $4,684, respectively | 10,769 | 11,566 |
Receivable for insurance claims in excess of deductibles | 14,766 | 14,692 |
Other assets | 4,399 | 2,666 |
Total assets | 620,597 | 573,495 |
Current liabilities: | ||
Current portion of capital lease obligations | 1,109 | 1,085 |
Accounts payable | 119,172 | 99,942 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 43,851 | 42,321 |
Current portion of accrued self insurance | 12,083 | 10,492 |
Other current liabilities | 37,444 | 42,382 |
Total current liabilities | 213,659 | 196,222 |
Deferred income tax liabilities | 18,263 | 18,565 |
Long-term debt | 79,497 | 59,070 |
Accrued self insurance | 33,146 | 32,092 |
Capital lease obligations, net of current maturities | 2,997 | 3,833 |
Other liabilities | 475 | 539 |
Total liabilities | 348,037 | 310,321 |
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, 2017 and December 31, 2016 | 0 | 0 |
Common stock$0.01 par value per share; 100,000,000 authorized shares; 16,458,523 and 16,333,139 shares issued and outstanding at September 30, 2017 and December | 163 | 162 |
Additional paid-in capital | 142,952 | 140,100 |
Accumulated other comprehensive loss | (217) | (433) |
Retained earnings | 129,662 | 123,345 |
Total stockholders’ equity | 272,560 | 263,174 |
Total liabilities and stockholders’ equity | $ 620,597 | $ 573,495 |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Allowance for Doubtful Accounts Receivable, Current | $ 606 | $ 432 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 228,185 | 209,466 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 5,262 | $ 4,684 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 4,000,000 | 4,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 16,458,523 | 16,333,139 |
Common Stock, Shares, Outstanding | 16,458,523 | 16,333,139 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Contract revenues | $ 373,502 | $ 283,259 | $ 1,029,816 | $ 798,827 |
Contract costs | 338,649 | 249,196 | 941,706 | 706,048 |
Gross profit | 34,853 | 34,063 | 88,110 | 92,779 |
Selling, general and administrative expenses | 23,814 | 23,203 | 74,617 | 69,579 |
Amortization of intangible assets | 195 | 188 | 593 | 691 |
Gain on sale of property and equipment | (576) | (467) | (2,602) | (1,079) |
Income from operations | 11,420 | 11,139 | 15,502 | 23,588 |
Other income (expense) | ||||
Interest income | 0 | 0 | 4 | 5 |
Interest expense | (685) | (408) | (1,793) | (833) |
Other, net | (1,413) | (417) | 212 | (361) |
Income before provision for income taxes | 9,322 | 10,314 | 13,925 | 22,399 |
Income tax expense | 4,177 | 4,168 | 6,350 | 8,766 |
Net income | $ 5,145 | $ 6,146 | $ 7,575 | $ 13,633 |
Income per common share: | ||||
Basic (in dollars per share) | $ 0.32 | $ 0.39 | $ 0.47 | $ 0.78 |
Diluted (in dollars per share) | $ 0.31 | $ 0.38 | $ 0.46 | $ 0.77 |
Weighted average number of common shares and potential common shares outstanding: | ||||
Basic (in shares) | 16,314 | 15,805 | 16,263 | 17,489 |
Diluted (in shares) | 16,474 | 16,177 | 16,476 | 17,817 |
Net income | $ 5,145 | $ 6,146 | $ 7,575 | $ 13,633 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 206 | 19 | 216 | (65) |
Other comprehensive income (loss) | 206 | 19 | 216 | (65) |
Total comprehensive income | $ 5,351 | $ 6,165 | $ 7,791 | $ 13,568 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 7,575 | $ 13,633 |
Adjustments to reconcile net income to net cash flows provided by (used in) operating activities: | ||
Depreciation and amortization of property and equipment | 28,906 | 28,747 |
Amortization of intangible assets | 593 | 691 |
Stock-based compensation expense | 3,479 | 3,488 |
Deferred income taxes | (302) | (116) |
Gain on sale of property and equipment | (2,602) | (1,079) |
Other non-cash items | 1,113 | (38) |
Changes in operating assets and liabilities | ||
Accounts receivable, net | (37,059) | 1,770 |
Costs and estimated earnings in excess of billings on uncompleted contracts | (36,980) | (28,774) |
Receivable for insurance claims in excess of deductibles | (292) | (1,640) |
Other assets | 85 | 7,008 |
Accounts payable | 14,803 | 11,022 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 1,363 | 5,454 |
Accrued self insurance | 2,626 | 299 |
Other liabilities | (5,098) | 32 |
Net cash flows provided by (used in) operating activities | (21,790) | 40,497 |
Cash flows from investing activities: | ||
Proceeds from sale of property and equipment | 2,802 | 2,544 |
Purchases of property and equipment | (24,909) | (17,948) |
Net cash flows used in investing activities | (22,107) | (15,404) |
Cash flows from financing activities: | ||
Net borrowings under revolving lines of credit | 20,427 | 33,407 |
Payment of principal obligations under capital leases | (812) | (442) |
Proceeds from exercise of stock options | 1,147 | 2,080 |
Repurchase of common shares | (3,058) | (101,483) |
Other financing activities | 3,718 | 2,077 |
Net cash flows provided by (used in) financing activities | 21,422 | (64,361) |
Effect of exchange rate changes on cash | 311 | 55 |
Net decrease in cash and cash equivalents | (22,164) | (39,213) |
Cash and cash equivalents: | ||
Beginning of period | 23,846 | 39,797 |
End of period | 1,682 | 584 |
Noncash investing activities: | ||
Acquisition of property and equipment acquired under capital lease arrangements | 0 | 5,580 |
Noncash financing activities: | ||
Capital lease obligations initiated | $ 0 | $ 5,580 |
Organization, Business and Basi
Organization, Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | MYR Group Inc. (the “Company”) is a holding company with subsidiaries that are specialty electrical construction service providers. Its wholly-owned subsidiaries include: 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 Transmission 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; 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 reports its results under 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 throughout the United States and parts of Canada. 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 provides services to general contractors, commercial and industrial facility owners, local governments and developers in the western and northeastern United States and western Canada. Basis of Presentation The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial reporting and 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 and cash flows with respect to the interim consolidated financial statements, have been included. The consolidated balance sheet as of December 31, 2016 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, 2016, included in the Company’s annual report on Form 10-K, which was filed with the SEC on March 9, 2017. Certain amounts in the prior period consolidated financial statements have been reclassified to conform with the current year presentation. 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. 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, are recorded in the “other income, net” line on the consolidated statements of operations. Foreign currency loss was not significant for the nine months ended September 30, 2017, compared to a foreign currency loss of $ 0.1 The Company does not charge interest to its customers and carries its customer receivables at their face amounts, less an allowance for doubtful accounts. Included in accounts receivable are balances billed to customers pursuant to retainage provisions in certain contracts that are due upon completion of the contract and acceptance by the customer, or earlier as provided by the contract. Based on the Company’s experience in recent years, the majority of customer balances at each balance sheet date are collected within twelve months. As is common practice in the industry, the Company classifies all accounts receivable, including retainage, as current assets. The contracting cycle for certain long-term contracts may extend beyond one year, and accordingly, collection of retainage on those contracts may extend beyond one year. The Company expects a majority of the retainage recorded at September 30, 2017 to be collected within one year. 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 on 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 accounts receivable reserves. In the nine months ended September 30, 2017, the Company recognized revenues of $ 6.5 The percentage of completion method of accounting requires the Company to make estimates about the expected revenue and gross profit on each of its contracts in process. The estimates are reviewed and revised quarterly, as needed. During the three months ended September 30, 2017, changes in estimates pertaining to certain projects decreased consolidated gross margin by 0.9%, which resulted in decreases in operating income of $3.2 million, net income of $1.9 million and diluted earnings per common share of $0.12. During the nine months ended September 30, 2017, changes in estimates pertaining to certain projects decreased consolidated gross margin by 0.7%, which resulted in decreases in operating income of $7.7 million, net income of $4.6 million and diluted earnings per common share of $0.28. During the three months ended September 30, 2016, changes in estimates pertaining to certain projects increased consolidated gross margin by 0.7 2.0 1.2 0.07 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 our consolidated financial statements. Recently Adopted Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, CompensationStock Compensation (Topic 718) ⋅ Excess tax benefits were not significant for the three months ended September 30, 2017 and were $ 1.0 ⋅ The adoption of this ASU eliminated the additional paid-in capital pool resulting in the excess tax benefits and deficiencies to be excluded from assumed future proceeds in the calculation of diluted shares, which caused an immaterial increase in diluted weighted average shares outstanding for the three and nine months ended September 30, 2017. The Company typically experiences the largest volume of restricted stock vesting in the first quarter of its fiscal year. The extent of excess tax benefits/deficiencies is subject to variation in the Company’s stock price and the timing/extent of restricted stock, performance share and phantom stock vesting and stock option exercises. ⋅ The Company elected to discontinue estimating forfeitures and will account for forfeitures as they occur. The net cumulative effect of this change was recognized as a $ 0.2 Recently Issued Accounting Pronouncements In January 2017, the FASB issued ASU No. 2017-04, IntangiblesGoodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) The Company plans to adopt the amendments under this ASU using the modified retrospective transition approach on January 1, 2018. Under the modified retrospective transition approach, the Company will recognize any changes from the beginning of the year of initial application through retained earnings with no restatement of comparative periods. While the Company is still evaluating the requirements of this update, it currently does not expect the update to materially affect its results of operations, financial position or cash flows. This preliminary conclusion is based on the Company’s belief that it will generally continue to recognize revenues from long-term service contracts over time as services are performed and the underlying obligation to the customer is fulfilled. The Company has identified and is in the process of implementing changes to its processes and internal controls to meet the reporting and disclosure requirements of this update. |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | 2. Acquisition Western Pacific Enterprises Ltd. On October 28, 2016, the Company completed the acquisition of substantially all of the assets of Western Pacific Enterprises GP and of Western Pacific Enterprises Ltd., except for certain real estate owned by Western Pacific Enterprises Ltd., with the company continuing operations under the name Western Pacific Enterprises Ltd. (“WPE”), an electrical contracting firm in western Canada. With its main headquarters in Coquitlam, British Columbia, WPE provides a wide range of commercial and industrial electrical construction capabilities under the Company’s C&I segment. WPE also provides substation construction capabilities under the Company’s T&D segment. The total consideration paid was approximately $12.1 million, which was funded through borrowings from our line of credit. Total consideration paid included $2.2 million subject to potential net asset adjustments once finalized by the end of 2017 as stipulated in the purchase agreement. These net asset adjustments were approximately $0.8 million as of the October 28, 2016 closing date and as of September 30, 2017. The Company accounted for the net asset adjustments as a reduction to consideration paid which will be funded through the return of funds held in a $1.9 million escrow account, established at the time of purchase. The purchase agreement also includes contingent consideration provisions for margin guarantee adjustments based upon performance subsequent to the acquisition on certain contracts. Changes in contingent consideration related to the margin guarantee adjustments on certain contracts of approximately $1.5 million was recorded in other expense and $0.2 million was recorded in other income for the three and nine months ended September 30, 2017, respectively. Future margin guarantee adjustments, if any, are expected to be recognized in the fourth quarter of 2017 and in 2018. In the event these margin guarantee adjustments exceed the amounts remaining in escrow, the Company is entitled under the WPE purchase agreement to recourse against the sellers. The Company may incur losses to the extent any amounts in excess of the escrow are not recovered from the sellers in the WPE acquisition. The Company could also be required to make compensation payments contingent on the successful achievement of certain performance targets and continued employment of certain key executives of WPE. These payments are recognized as compensation expense in the consolidated statement of operations as incurred. The Company has recognized approximately $0.3 million of compensation expense associated with these contingent payments since the WPE acquisition. The results of operations for WPE are included in the Company’s consolidated statement of operations and the C&I segment from the date of acquisition. Costs of approximately $0.4 million related to the acquisition were included in selling, general and administrative expenses in the consolidated statement of operations for the year ended December 31, 2016. (in thousands) (as of Measurement Adjusted acquisition Total consideration, net of net asset adjustments $ 11,283 $ $ 11,283 Accounts receivable, net $ 20,249 $ $ 20,249 Costs and estimated earnings in excess of billings on uncompleted contracts 1,610 1,610 Other current assets 8 8 Property and equipment 4,108 46 4,154 Intangible assets 501 501 Accounts payable (10,125) (10,125) Billings in excess of costs and estimated earnings on uncompleted contracts (3,020) (3,020) Other current liabilities (2,294) (2,294) Net identifiable assets 10,536 547 11,083 Unallocated intangible assets 747 (747) Goodwill $ $ 200 $ 200 The Company has developed preliminary estimates of fair value of the assets acquired and liabilities assumed for the purposes of allocating the purchase price. Further adjustments are expected to the allocation as net asset adjustments are finalized. A portion of the goodwill is expected to be tax deductible per applicable Canadian Revenue Authority regulations. The Company expects to complete the purchase accounting in the fourth quarter of 2017. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 3. 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, 2017 and December 31, 2016, the Company determined that the carrying value of cash and cash equivalents approximated fair value based on Level 1 inputs. As of September 30, 2017 and December 31, 2016, the fair values of the Company’s long-term debt and capital 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, 2017 and December 31, 2016, 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 capital lease obligations also approximated fair value. |
Contracts in Process
Contracts in Process | 9 Months Ended |
Sep. 30, 2017 | |
Contractors [Abstract] | |
Long-term Contracts or Programs Disclosure [Text Block] | 4. Contracts in Process September 30, December 31, (In thousands) 2017 2016 Costs and estimated earnings on uncompleted contracts $ 1,886,286 $ 2,194,695 Less: Billings to date 1,822,319 2,167,066 $ 63,967 $ 27,629 September 30, December 31, (In thousands) 2017 2016 Costs and estimated earnings in excess of billings on uncompleted contracts $ 107,818 $ 69,950 Billings in excess of costs and estimated earnings on uncompleted contracts (43,851) (42,321) $ 63,967 $ 27,629 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 5. Debt On June 30, 2016, 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. The Credit Agreement provides for a facility of $ 250 50 100 65 Amounts borrowed under the Credit Agreement in U.S. dollars 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 1.00 1.00 2.00 1.00 2.00 1.125 2.125 0.625 1.125 0.20 0.375 2.25 2.00 Under the Credit Agreement, the Company is subject to certain financial covenants and must maintain a maximum consolidated Leverage Ratio of 3.0 3.0 50 3.0 3.5 The amount outstanding under the Facility as of September 30, 2017 and December 31, 2016, was $ 79.5 59.1 As of September 30, 2017, the Company had irrevocable standby letters of credit outstanding under the Facility of approximately $ 20.9 17.6 3.3 23.7 17.6 6.1 The Company has remaining deferred debt issuance costs totaling $ 0.8 Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (Topic 835) |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 6. Income Taxes The U.S. federal statutory tax rate is 35 44.8 45.6 40.4 39.1 The difference between the U.S. federal statutory tax rate and the Company’s effective tax rate for the three months ended September 30, 2017 was primarily caused by the inability to utilize losses experienced in certain Canadian operations the inability to utilize losses experienced in certain Canadian operations, partially offset by 1.0 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, 2016 was principally due to state income taxes. The Company had unrecognized tax benefits of approximately $ 0.3 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 because of the unrecognized tax benefits was not significant for the nine months ended September 30, 2017 and 2016. The Company is subject to taxation in various jurisdictions. The Company’s tax returns for 2015 and 2016 are subject to examination by U.S. federal authorities. The Company’s tax returns are subject to examination by various state authorities for the years 2012 through 2016. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments Contingencies and Guarantees [Text Block] | 7. Commitments and Contingencies Purchase Commitments As of September 30, 2017, the Company had approximately $ 10.2 Insurance and Claims Accruals The Company carries insurance policies, which are subject to certain deductibles, for workers’ compensation, general liability, automobile liability and other coverages. The deductible per occurrence for each line of coverage is up to $ 1.0 0.2 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 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, 2017, an aggregate of approximately $ 410.9 21.8 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 Many 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. |
Lease Obligations
Lease Obligations | 9 Months Ended |
Sep. 30, 2017 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | 8. Lease Obligations From time to time, the Company enters into leasing arrangements for real estate, vehicles and construction equipment. Some of the leases entered into under these agreements were recorded as capital leases while others were treated as operating leases. As of September 30, 2017, the Company had no outstanding commitments to enter into future leases under its master lease agreements. Capital Leases The Company leases some vehicles and equipment under capital leases. The economic substance of the leases is a financing transaction for acquisition of the vehicles and equipment. Accordingly, these leases are included in the balance sheets in property and equipment, net of accumulated depreciation, with a corresponding amount recorded in current portion of capital lease obligations or capital lease obligations, net of current maturities, as appropriate. The capital lease assets are amortized over the life of the lease or, if shorter, the life of the leased asset, on a straight-line basis and included in depreciation expense in the statements of operations. The interest associated with capital lease obligations is included in interest expense in the statements of operations. As of September 30, 2017, the Company had approximately $ 4.1 1.1 4.9 1.1 As of September 30, 2017 and December 31, 2016, $ 4.1 5.0 Operating Leases The Company, from time to time, leases real estate, construction equipment and office equipment under operating leases with remaining terms ranging from one to twelve years. Future Minimum Lease Payments Capital Operating (In thousands) Lease Lease Remainder of 2017 $ 305 $ 922 2018 1,220 3,378 2019 1,220 2,854 2020 1,220 2,222 2021 379 1,566 Thereafter 1,815 Total minimum lease payments $ 4,344 $ 12,757 Interest (238) Net present value of minimum lease payments 4,106 Less: Current portion of capital lease obligations 1,109 Long-term capital lease obligations $ 2,997 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 9. Stock-Based Compensation The Company maintains two equity compensation plans under which stock-based compensation has been granted; the 2017 Long-Term Incentive Plan, (the “LTIP”) and the 2007 Long-Term Incentive Plan (the “2007 Plan”). Upon the adoption of the LTIP during the second quarter of 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, (h) stock bonuses, (i) dividend equivalents, and (j) any combination of such awards. During the nine months ended September 30, 2017, the Company granted 43,972 39.52 96,524 25.13 During the nine months ended September 30, 2017, the Company granted 22,380 33.50 3,250 26.92 During the nine months ended September 30, 2017, the Company granted 47,454 47.12 200 During the nine months ended September 30, 2017, plan participants exercised 73,297 15.65 The Company recognizes stock-based compensation expense related to restricted stock awards, phantom stock awards and 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 of 3.0 2.8 2.8 The Company adopted ASU No. 2016-09, CompensationStock Compensation (Topic 718) CompensationStock Compensation (Topic 718) |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 10. Segment Information MYR Group is a holding company with subsidiaries that are specialty electrical contractors that serve the United States and Canadian electrical infrastructure markets. 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, safety costs, professional fees and management fees. The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Transmission and Distribution: The T&D segment provides a broad range of services on electric transmission and distribution networks and on 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 throughout the United States and parts of Canada. 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, manufacturing plants, processing facilities, waste-water treatment facilities, mining facilities and transportation control and management systems. C&I segment services are generally performed in the western and northeastern United States and in western Canada. 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. Three months ended Nine months ended September 30, September 30, (In thousands) 2017 2016 2017 2016 Contract revenues: T&D $ 215,970 $ 206,441 $ 651,498 $ 568,044 C&I 157,532 76,818 378,318 230,783 $ 373,502 $ 283,259 $ 1,029,816 $ 798,827 Income from operations: T&D $ 9,251 $ 14,550 $ 22,467 $ 40,804 C&I 10,503 5,043 19,668 9,633 General Corporate (8,334) (8,454) (26,633) (26,849) $ 11,420 $ 11,139 $ 15,502 $ 23,588 For the three and nine months ended September 30, 2017, contract revenues attributable to the Company’s Canadian operations were $ 25.4 61.8 9.4 15.9 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 11. 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 shareholders 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 shareholders 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. Three months ended Nine months ended September 30, September 30, (In thousands, except per share data) 2017 2016 2017 2016 Numerator: Net income $ 5,145 $ 6,146 $ 7,575 $ 13,633 Denominator: Weighted average common shares outstanding 16,314 15,805 16,263 17,489 Weighted average dilutive securities 160 372 213 328 Weighted average common shares outstanding, diluted 16,474 16,177 16,476 17,817 Income per common share, basic $ 0.32 $ 0.39 $ 0.47 $ 0.78 Income per common share, diluted $ 0.31 $ 0.38 $ 0.46 $ 0.77 For the three and nine months ended September 30, 2017 and 2016, 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 non-participating unvested restricted shares were included in the computation of weighted average dilutive securities. Three months ended Nine months ended September 30, September 30, (In thousands) 2017 2016 2017 2016 Stock options 86 Restricted stock 44 6 44 6 Performance awards 21 2 127 83 Share Repurchases On July 27, 2017, the Company’s Board of Directors approved a $ 20.0 August 15, 2017 92,987 32.90 35,338 0.8 4,500 20.0 August 15, 2017 30,838 57,649 2.2 19.3 |
Organization, Business and Ba17
Organization, Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business [Policy Text Block] | MYR Group Inc. (the “Company”) is a holding company with subsidiaries that are specialty electrical construction service providers. Its wholly-owned subsidiaries include: 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 Transmission 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; 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 reports its results under 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 throughout the United States and parts of Canada. 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 provides services to general contractors, commercial and industrial facility owners, local governments and developers in the western and northeastern United States and western Canada. |
Consolidation, Policy [Policy Text Block] | The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial reporting and 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 and cash flows with respect to the interim consolidated financial statements, have been included. The consolidated balance sheet as of December 31, 2016 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, 2016, included in the Company’s annual report on Form 10-K, which was filed with the SEC on March 9, 2017. Certain amounts in the prior period consolidated financial statements have been reclassified to conform with the current year presentation. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | 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. 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, are recorded in the “other income, net” line on the consolidated statements of operations. Foreign currency loss was not significant for the nine months ended September 30, 2017, compared to a foreign currency loss of $ 0.1 |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | The Company does not charge interest to its customers and carries its customer receivables at their face amounts, less an allowance for doubtful accounts. Included in accounts receivable are balances billed to customers pursuant to retainage provisions in certain contracts that are due upon completion of the contract and acceptance by the customer, or earlier as provided by the contract. Based on the Company’s experience in recent years, the majority of customer balances at each balance sheet date are collected within twelve months. As is common practice in the industry, the Company classifies all accounts receivable, including retainage, as current assets. The contracting cycle for certain long-term contracts may extend beyond one year, and accordingly, collection of retainage on those contracts may extend beyond one year. The Company expects a majority of the retainage recorded at September 30, 2017 to be collected within one year. |
Use of Estimates, Policy [Policy Text Block] | 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 on 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 accounts receivable reserves. In the nine months ended September 30, 2017, the Company recognized revenues of $ 6.5 The percentage of completion method of accounting requires the Company to make estimates about the expected revenue and gross profit on each of its contracts in process. The estimates are reviewed and revised quarterly, as needed. During the three months ended September 30, 2017, changes in estimates pertaining to certain projects decreased consolidated gross margin by 0.9%, which resulted in decreases in operating income of $3.2 million, net income of $1.9 million and diluted earnings per common share of $0.12. During the nine months ended September 30, 2017, changes in estimates pertaining to certain projects decreased consolidated gross margin by 0.7%, which resulted in decreases in operating income of $7.7 million, net income of $4.6 million and diluted earnings per common share of $0.28. During the three months ended September 30, 2016, changes in estimates pertaining to certain projects increased consolidated gross margin by 0.7 2.0 1.2 0.07 |
New Accounting Pronouncements, Policy [Policy Text Block] | 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 our consolidated financial statements. Recently Adopted Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, CompensationStock Compensation (Topic 718) ⋅ Excess tax benefits were not significant for the three months ended September 30, 2017 and were $ 1.0 ⋅ The adoption of this ASU eliminated the additional paid-in capital pool resulting in the excess tax benefits and deficiencies to be excluded from assumed future proceeds in the calculation of diluted shares, which caused an immaterial increase in diluted weighted average shares outstanding for the three and nine months ended September 30, 2017. The Company typically experiences the largest volume of restricted stock vesting in the first quarter of its fiscal year. The extent of excess tax benefits/deficiencies is subject to variation in the Company’s stock price and the timing/extent of restricted stock, performance share and phantom stock vesting and stock option exercises. ⋅ The Company elected to discontinue estimating forfeitures and will account for forfeitures as they occur. The net cumulative effect of this change was recognized as a $ 0.2 Recently Issued Accounting Pronouncements In January 2017, the FASB issued ASU No. 2017-04, IntangiblesGoodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) The Company plans to adopt the amendments under this ASU using the modified retrospective transition approach on January 1, 2018. Under the modified retrospective transition approach, the Company will recognize any changes from the beginning of the year of initial application through retained earnings with no restatement of comparative periods. While the Company is still evaluating the requirements of this update, it currently does not expect the update to materially affect its results of operations, financial position or cash flows. This preliminary conclusion is based on the Company’s belief that it will generally continue to recognize revenues from long-term service contracts over time as services are performed and the underlying obligation to the customer is fulfilled. The Company has identified and is in the process of implementing changes to its processes and internal controls to meet the reporting and disclosure requirements of this update. |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table summarizes the allocation of the opening balance sheet from the date of acquisition through September 30, 2017: (in thousands) (as of Measurement Adjusted acquisition Total consideration, net of net asset adjustments $ 11,283 $ $ 11,283 Accounts receivable, net $ 20,249 $ $ 20,249 Costs and estimated earnings in excess of billings on uncompleted contracts 1,610 1,610 Other current assets 8 8 Property and equipment 4,108 46 4,154 Intangible assets 501 501 Accounts payable (10,125) (10,125) Billings in excess of costs and estimated earnings on uncompleted contracts (3,020) (3,020) Other current liabilities (2,294) (2,294) Net identifiable assets 10,536 547 11,083 Unallocated intangible assets 747 (747) Goodwill $ $ 200 $ 200 |
Contracts in Process (Tables)
Contracts in Process (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Costs in Excess of Billings and Billings in Excess of Costs [Table Text Block] | The net asset position for contracts in process consisted of the following: September 30, December 31, (In thousands) 2017 2016 Costs and estimated earnings on uncompleted contracts $ 1,886,286 $ 2,194,695 Less: Billings to date 1,822,319 2,167,066 $ 63,967 $ 27,629 |
Consolidated Balance Sheet [Member] | |
Costs in Excess of Billings and Billings in Excess of Costs [Table Text Block] | The net asset position for contracts in process included in the accompanying consolidated balance sheets was as follows: September 30, December 31, (In thousands) 2017 2016 Costs and estimated earnings in excess of billings on uncompleted contracts $ 107,818 $ 69,950 Billings in excess of costs and estimated earnings on uncompleted contracts (43,851) (42,321) $ 63,967 $ 27,629 |
Lease Obligations (Tables)
Lease Obligations (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments for Capital and Operating Leases [Table Text Block] | The future minimum lease payments required under capital leases and operating leases, together with the present value of capital leases, as of September 30, 2017 were as follows: Capital Operating (In thousands) Lease Lease Remainder of 2017 $ 305 $ 922 2018 1,220 3,378 2019 1,220 2,854 2020 1,220 2,222 2021 379 1,566 Thereafter 1,815 Total minimum lease payments $ 4,344 $ 12,757 Interest (238) Net present value of minimum lease payments 4,106 Less: Current portion of capital lease obligations 1,109 Long-term capital lease obligations $ 2,997 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | 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 September 30, September 30, (In thousands) 2017 2016 2017 2016 Contract revenues: T&D $ 215,970 $ 206,441 $ 651,498 $ 568,044 C&I 157,532 76,818 378,318 230,783 $ 373,502 $ 283,259 $ 1,029,816 $ 798,827 Income from operations: T&D $ 9,251 $ 14,550 $ 22,467 $ 40,804 C&I 10,503 5,043 19,668 9,633 General Corporate (8,334) (8,454) (26,633) (26,849) $ 11,420 $ 11,139 $ 15,502 $ 23,588 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Net income available to common shareholders 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 September 30, September 30, (In thousands, except per share data) 2017 2016 2017 2016 Numerator: Net income $ 5,145 $ 6,146 $ 7,575 $ 13,633 Denominator: Weighted average common shares outstanding 16,314 15,805 16,263 17,489 Weighted average dilutive securities 160 372 213 328 Weighted average common shares outstanding, diluted 16,474 16,177 16,476 17,817 Income per common share, basic $ 0.32 $ 0.39 $ 0.47 $ 0.78 Income per common share, diluted $ 0.31 $ 0.38 $ 0.46 $ 0.77 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following table summarizes the shares of common stock underlying the Company’s unvested stock options and performance awards that were excluded from the calculation of dilutive securities: Three months ended Nine months ended September 30, September 30, (In thousands) 2017 2016 2017 2016 Stock options 86 Restricted stock 44 6 44 6 Performance awards 21 2 127 83 |
Organization, Business and Ba23
Organization, Business and Basis of Presentation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Jan. 02, 2017 | Dec. 31, 2016 | |
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||||||
Operating Income (Loss) | $ 11,420 | $ 11,139 | $ 15,502 | $ 23,588 | ||
Net Income (Loss) Attributable to Parent | $ 5,145 | $ 6,146 | $ 7,575 | $ 13,633 | ||
Earnings Per Share, Diluted | $ 0.31 | $ 0.38 | $ 0.46 | $ 0.77 | ||
Foreign Currency Transaction Gain (Loss), Realized | $ 100 | |||||
Income Tax Expense (Benefit) | $ 4,177 | $ 4,168 | $ 6,350 | $ 8,766 | ||
Retained Earnings (Accumulated Deficit) | $ 129,662 | 129,662 | $ 123,345 | |||
New Accounting Pronouncement, Early Adoption, Effect [Member] | ||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||||||
Income Tax Expense (Benefit) | 1,000 | |||||
Significant Change Orders Or Claims [Member] | ||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||||||
Revenues | 6,500 | |||||
Restatement Adjustment [Member] | ||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||||||
Income Tax Expense (Benefit) | $ 1,000 | |||||
Retained Earnings (Accumulated Deficit) | $ 200 | |||||
Estimate Adjustment [Member] | ||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||||||
Cost Estimate Revision Gross Margin Increase (Decrease) Percentage | (0.90%) | 0.70% | (0.70%) | (0.50%) | ||
Operating Income (Loss) | $ (3,200) | $ 2,000 | $ (7,700) | $ (3,600) | ||
Net Income (Loss) Attributable to Parent | $ (1,900) | $ 1,200 | $ (4,600) | $ (2,200) | ||
Earnings Per Share, Diluted | $ (0.12) | $ 0.07 | $ (0.28) | $ (0.12) |
Acquisition (Details)
Acquisition (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Oct. 28, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 46,981 | $ 46,781 | |
Western Pacific Enterprises [Member] | |||
Business Acquisition [Line Items] | |||
Total consideration, net of net asset adjustments | 11,283 | ||
Accounts receivable, net | 20,249 | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | 1,610 | ||
Other current assets | 8 | ||
Property and equipment | 4,154 | ||
Intangible assets | 501 | ||
Accounts payable | (10,125) | ||
Billings in excess of costs and estimated earnings on uncompleted contracts | (3,020) | ||
Other current liabilities | (2,294) | ||
Net identifiable assets | 11,083 | ||
Unallocated intangible assets | 0 | ||
Goodwill | 200 | ||
Scenario, Previously Reported [Member] | Western Pacific Enterprises [Member] | |||
Business Acquisition [Line Items] | |||
Total consideration, net of net asset adjustments | $ 11,283 | ||
Accounts receivable, net | 20,249 | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | 1,610 | ||
Other current assets | 8 | ||
Property and equipment | 4,108 | ||
Intangible assets | 0 | ||
Accounts payable | (10,125) | ||
Billings in excess of costs and estimated earnings on uncompleted contracts | (3,020) | ||
Other current liabilities | (2,294) | ||
Net identifiable assets | 10,536 | ||
Unallocated intangible assets | 747 | ||
Goodwill | $ 0 | ||
Restatement Adjustment [Member] | Western Pacific Enterprises [Member] | |||
Business Acquisition [Line Items] | |||
Total consideration, net of net asset adjustments | 0 | ||
Accounts receivable, net | 0 | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | 0 | ||
Other current assets | 0 | ||
Property and equipment | 46 | ||
Intangible assets | 501 | ||
Accounts payable | 0 | ||
Billings in excess of costs and estimated earnings on uncompleted contracts | 0 | ||
Other current liabilities | 0 | ||
Net identifiable assets | 547 | ||
Unallocated intangible assets | (747) | ||
Goodwill | $ 200 |
Acquisition (Details Textual)
Acquisition (Details Textual) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 11 Months Ended |
Oct. 28, 2016 | Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2017 | |
Business Acquisition [Line Items] | ||||
Other Nonoperating Income | $ 0.2 | |||
Other Nonoperating Expense | $ 1.5 | |||
Western Pacific Enterprises [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Acquisition, Transaction Costs | 0.4 | 0.4 | $ 0.4 | |
Business Combination Compensation Expenses On Contingent Payment | 0.3 | |||
Business Combination, Contingent Consideration, Liability | $ 2.2 | $ 2.2 | $ 2.2 | |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 0.8 | |||
Payments to Acquire Businesses, Net of Cash Acquired | 12.1 | |||
Escrow Deposit | $ 1.9 |
Contracts in Process (Details)
Contracts in Process (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Contracts in Process [Line Items] | ||
Costs and estimated earnings on uncompleted contracts | $ 1,886,286 | $ 2,194,695 |
Less: Billings to date | 1,822,319 | 2,167,066 |
Net asset position for contracts in process | $ 63,967 | $ 27,629 |
Contracts in Process (Details 1
Contracts in Process (Details 1) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Contracts in Process [Line Items] | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | $ 107,818 | $ 69,950 |
Billings in excess of costs and estimated earnings on uncompleted contracts | (43,851) | (42,321) |
Net asset position for contracts in process | $ 63,967 | $ 27,629 |
Debt (Details Textual)
Debt (Details Textual) $ in Millions | 6 Months Ended | 9 Months Ended | |
Jun. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | |||
Letters of Credit Outstanding, Amount | $ 20.9 | $ 23.7 | |
Long-term Line of Credit | $ 79.5 | 59.1 | |
Debt Instrument Covenant Leveraged Debt Ratio Restriction | 2.25 | ||
Debt Issuance Costs, Line of Credit Arrangements, Net | $ 0.8 | ||
Insurance Program Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Letters of Credit Outstanding, Amount | 17.6 | 17.6 | |
Contract Performance Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Letters of Credit Outstanding, Amount | $ 3.3 | $ 6.1 | |
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Leverage Coverage Ratio | 3 | ||
Leverage Coverage Ratio Expansion | 3.5 | ||
Maximum [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.375% | ||
Maximum [Member] | Standby Letters of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Letter of credit fee (as a percent) | 2.125% | ||
Maximum [Member] | Performance letters of credit [Member] | |||
Debt Instrument [Line Items] | |||
Letter of credit fee (as a percent) | 1.125% | ||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate margin (as a percent) | 2.00% | ||
Maximum [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate margin (as a percent) | 1.00% | ||
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Interest coverage ratio | 3 | ||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | ||
Minimum [Member] | Standby Letters of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Letter of credit fee (as a percent) | 0.00% | ||
Minimum [Member] | Performance letters of credit [Member] | |||
Debt Instrument [Line Items] | |||
Letter of credit fee (as a percent) | 0.625% | ||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate margin (as a percent) | 1.00% | ||
Minimum [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate margin (as a percent) | 0.00% | ||
Foreign Revolving Loans and Letters of Credit [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate margin (as a percent) | 2.00% | ||
Foreign Revolving Loans and Letters of Credit [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate margin (as a percent) | 1.00% | ||
Syndicated Credit Agreement [Member] | Facility [Member] | |||
Debt Instrument [Line Items] | |||
Option to increase borrowing capacity | $ 100 | ||
Maximum borrowing capacity | $ 250 | ||
Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Weighted Average Interest Rate | 2.00% | ||
Credit Agreement [Member] | Facility [Member] | |||
Debt Instrument [Line Items] | |||
Percentage of Capital Stock From Direct Foreign Subsidiaries | 65.00% | ||
Maximum Acquisition Consideration Under Credit Agreement | $ 50 | ||
Credit Agreement [Member] | Foreign Revolving Loans and Letters of Credit [Member] | Facility [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 50 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||||
U.S. federal statutory tax rate (as a percent) | 35.00% | 35.00% | |||
Unrecognized Tax Benefits | $ 300 | $ 300 | $ 300 | ||
Income Tax Expense (Benefit) | $ 4,177 | $ 4,168 | $ 6,350 | $ 8,766 | |
Effective Income Tax Rate Reconciliation, Percent | 44.80% | 40.40% | 45.60% | 39.10% | |
Restatement Adjustment [Member] | |||||
Income Taxes [Line Items] | |||||
Income Tax Expense (Benefit) | $ 1,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) $ in Millions | Sep. 30, 2017USD ($) |
Other Commitments [Line Items] | |
Outstanding Performance Bonds | $ 410.9 |
Estimated Cost to Complete Bonded Projects | 21.8 |
Purchase Commitment, Remaining Minimum Amount Committed | 10.2 |
Maximum [Member] | |
Other Commitments [Line Items] | |
Loss Contingency Insurance Policy Deductible for Each Line of Coverage Excluding Health | 1 |
Loss Contingency Health Insurance Deductible For Qualified Individuals | $ 0.2 |
Lease Obligations (Details)
Lease Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Capital Lease Obligations | ||
Remainder of 2017 | $ 305 | |
2,018 | 1,220 | |
2,019 | 1,220 | |
2,020 | 1,220 | |
2,021 | 379 | |
Thereafter | 0 | |
Total minimum lease payments | 4,344 | |
Interest | (238) | |
Net present value of minimum lease payments | 4,106 | |
Less: Current portion of capital lease obligations | (1,109) | $ (1,085) |
Long-term capital lease obligations | 2,997 | $ 3,833 |
Operating Lease Obligations | ||
Remainder of 2017 | 922 | |
2,018 | 3,378 | |
2,019 | 2,854 | |
2,020 | 2,222 | |
2,021 | 1,566 | |
Thereafter | 1,815 | |
Total minimum lease payments | $ 12,757 |
Lease Obligations (Details Text
Lease Obligations (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Capital Leases, Balance Sheet, Assets by Major Class, Net, Total | $ 4,100 | $ 5,000 |
Capital Lease Obligations, Current | 1,109 | 1,085 |
Capital Lease Obligations | $ 4,100 | $ 4,900 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Textual) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Other information | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | shares | 73,297 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ / shares | $ 15.65 |
Restricted Stock Awards [Member] | |
Assumptions used in determining the fair value of stock options granted for fixed awards with graded vesting schedules | |
Vesting period | 3 years |
Weighted-Average Grant Date Fair Value | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 39.52 |
Other information | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 43,972 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | shares | 96,524 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 25.13 |
Performance awards [Member] | |
Other information | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 47,454 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 47.12 |
Performance awards [Member] | Maximum [Member] | |
Weighted-Average Grant Date Fair Value | |
Potential Payout As a Percentage of Target Shares | 200.00% |
Phantom Share Units (PSUs) [Member] | Long-Term Incentive Plan [Member] | |
Weighted-Average Grant Date Fair Value | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 26.92 |
Other information | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | shares | 3,250 |
Market-Based Performance Awards [Member] | |
Other information | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 2 years 9 months 18 days |
Internal Measure-Based Performance Awards [Member] | |
Other information | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 2 years 9 months 18 days |
Restricted Stock Units (RSUs) [Member] | |
Assumptions used in determining the fair value of stock options granted for fixed awards with graded vesting schedules | |
Vesting period | 3 years |
Restricted Stock Units (RSUs) [Member] | Long-Term Incentive Plan [Member] | |
Weighted-Average Grant Date Fair Value | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 33.50 |
Other information | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 22,380 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Sales Revenue, Services, Net | $ 373,502 | $ 283,259 | $ 1,029,816 | $ 798,827 |
Income from operations: | 11,420 | 11,139 | 15,502 | 23,588 |
T&D [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales Revenue, Services, Net | 215,970 | 206,441 | 651,498 | 568,044 |
Income from operations: | 9,251 | 14,550 | 22,467 | 40,804 |
C&I [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales Revenue, Services, Net | 157,532 | 76,818 | 378,318 | 230,783 |
Income from operations: | 10,503 | 5,043 | 19,668 | 9,633 |
General Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations: | $ (8,334) | $ (8,454) | $ (26,633) | $ (26,849) |
Segment Information (Details Te
Segment Information (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Sales Revenue, Services, Net | $ 373,502 | $ 283,259 | $ 1,029,816 | $ 798,827 |
Canadian Operation [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales Revenue, Services, Net | $ 25,400 | $ 9,400 | $ 61,800 | $ 15,900 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Numerator: | ||||
Net income | $ 5,145 | $ 6,146 | $ 7,575 | $ 13,633 |
Denominator: | ||||
Weighted average common shares outstanding | 16,314 | 15,805 | 16,263 | 17,489 |
Weighted average dilutive securities | 160 | 372 | 213 | 328 |
Weighted average common shares outstanding, diluted | 16,474 | 16,177 | 16,476 | 17,817 |
Income per common share, basic (in dollars per share) | $ 0.32 | $ 0.39 | $ 0.47 | $ 0.78 |
Income per common share, diluted (in dollars per share) | $ 0.31 | $ 0.38 | $ 0.46 | $ 0.77 |
Earnings Per Share (Details 1)
Earnings Per Share (Details 1) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Restricted stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 44 | 6 | 44 | 6 |
Performance awards [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 21 | 2 | 127 | 83 |
Stock options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 0 | 86 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 9 Months Ended | |
Jul. 27, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Line Items] | |||
Treasury Stock Acquired, Average Cost Per Share | $ 32.90 | ||
Stock Repurchase Program, Authorized Amount | $ 20,000 | $ 20,000 | |
Stock Repurchase Program Expiration Date | Aug. 15, 2017 | Aug. 15, 2017 | |
Payments for Repurchase of Common Stock | $ 3,058 | $ 101,483 | |
Stock Repurchased and Retired During Period, Shares | 92,987 | ||
Share Repurchase Program [Member] | |||
Earnings Per Share [Line Items] | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 19,300 | ||
Payments for Repurchase of Common Stock | $ 800 | ||
Stock Repurchased and Retired During Period, Shares | 35,338 | ||
Shares Repurchased Under Stock Compensation Program [Member] | |||
Earnings Per Share [Line Items] | |||
Stock Repurchased During Period, Value | $ 2,200 | ||
Stock Repurchased and Retired During Period, Shares | 57,649 | ||
Old Share Repurchase Program [Member] | |||
Earnings Per Share [Line Items] | |||
Stock Repurchased During Period, Shares | 4,500 | ||
New Share Repurchase Program [Member] | |||
Earnings Per Share [Line Items] | |||
Stock Repurchased During Period, Shares | 30,838 |