Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 24, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | MYR GROUP INC. | |
Entity Central Index Key | 0000700923 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | MYRG | |
Entity Common Stock, Shares Outstanding | 16,610,032 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
UNAUDITED CONSOLIDATED BALANCE
UNAUDITED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 1,338 | $ 7,507 |
Accounts receivable, net of allowances of $2,020 and $1,331, respectively | 297,967 | 288,427 |
Contract assets | 188,069 | 160,281 |
Current portion of receivable for insurance claims in excess of deductibles | 10,003 | 10,572 |
Other current assets | 8,379 | 8,847 |
Total current assets | 505,756 | 475,634 |
Property and equipment, net of accumulated depreciation of $260,743 and $253,495, respectively | 162,565 | 161,892 |
Operating lease right-of-use assets | 16,266 | 0 |
Goodwill | 56,592 | 56,588 |
Intangible assets, net of accumulated amortization of $7,765 and $7,031, respectively | 32,542 | 33,266 |
Receivable for insurance claims in excess of deductibles | 16,564 | 17,173 |
Investment in joint ventures | 2,342 | 1,324 |
Other assets | 2,591 | 2,878 |
Total assets | 795,218 | 748,755 |
Current liabilities: | ||
Current portion of long-term debt | 3,742 | 3,681 |
Current portion of operating lease obligations | 4,401 | 0 |
Current portion of finance lease obligations | 1,127 | 1,119 |
Accounts payable | 170,352 | 139,480 |
Contract liabilities | 28,519 | 58,534 |
Current portion of accrued self-insurance | 20,901 | 19,633 |
Income taxes payable, net | 3,109 | 0 |
Other current liabilities | 61,409 | 61,358 |
Total current liabilities | 293,560 | 283,805 |
Deferred income tax liabilities | 17,052 | 17,398 |
Long-term debt | 106,204 | 86,111 |
Accrued self-insurance | 32,561 | 34,406 |
Operating lease obligations, net of current maturities | 11,600 | 0 |
Finance lease obligations, net of current maturities | 1,275 | 1,514 |
Other liabilities | 1,492 | 1,057 |
Total liabilities | 463,744 | 424,291 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock—$0.01 par value per share; 4,000,000 authorized shares; none issued and outstanding at March 31, 2019 and December 31, 2018 | 0 | 0 |
Common stock—$0.01 par value per share; 100,000,000 authorized shares; 16,610,032 and 16,564,961 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively | 177 | 165 |
Additional paid-in capital | 148,938 | 148,276 |
Accumulated other comprehensive loss | (270) | (193) |
Retained earnings | 181,882 | 174,736 |
Total stockholders' equity attributable to MYR Group Inc. | 330,727 | 322,984 |
Noncontrolling interest | 747 | 1,480 |
Total stockholders' equity | 331,474 | 324,464 |
Total liabilities and stockholders' equity | $ 795,218 | $ 748,755 |
UNAUDITED CONSOLIDATED BALANC_2
UNAUDITED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Allowance for doubtful accounts receivable | $ 2,020 | $ 1,331 |
Property and equipment, accumulated depreciation | 260,743 | 253,495 |
Intangible assets, accumulated amortization | $ 7,765 | $ 7,031 |
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) | 16,610,032 | 16,564,961 |
Common stock, shares outstanding (in shares) | 16,610,032 | 16,564,961 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Contract revenues | $ 468,094 | $ 345,611 |
Contract costs | 425,218 | 309,858 |
Gross profit | 42,876 | 35,753 |
Selling, general and administrative expenses | 32,987 | 28,280 |
Amortization of intangible assets | 734 | 117 |
Gain on sale of property and equipment | (471) | (1,051) |
Income from operations | 9,626 | 8,407 |
Other income (expense): | ||
Interest expense | (1,205) | (721) |
Other income, net | 746 | 249 |
Income before provision for income taxes | 9,167 | 7,935 |
Income tax expense | 2,547 | 2,291 |
Net income | 6,620 | 5,644 |
Less: net loss attributable to noncontrolling interest | (733) | 0 |
Net income attributable to MYR Group Inc | $ 7,353 | $ 5,644 |
Income per common share attributable to MYR Group Inc.: | ||
Basic (in dollars per share) | $ 0.45 | $ 0.35 |
Diluted (in dollars per share) | $ 0.44 | $ 0.34 |
Weighted average number of common shares and potential common shares outstanding: | ||
Basic (in shares) | 16,514 | 16,321 |
Diluted (in shares) | 16,658 | 16,520 |
Net income | $ 6,620 | $ 5,644 |
Other comprehensive loss: | ||
Foreign currency translation adjustment | (77) | (17) |
Other comprehensive loss | (77) | (17) |
Total comprehensive income | 6,543 | 5,627 |
Less: net loss attributable to noncontrolling interest | (733) | 0 |
Total comprehensive income attributable to MYR Group Inc. | $ 7,276 | $ 5,627 |
UNAUDITED CONSOLIDATED STATEM_2
UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income (loss) [Member] | Retained Earnings [Member] | MYR Group Inc. Stockholders' Equity [Member] | Noncontrolling Interest [Member] |
Balance at Dec. 31, 2017 | $ 287,039 | $ 0 | $ 163 | $ 143,934 | $ (299) | $ 143,241 | $ 287,039 | $ 0 |
Balance (in shares) at Dec. 31, 2017 | 16,465 | |||||||
Net income | 5,644 | 5,644 | 5,644 | |||||
Adjustment to adopt ASU No. 2016-09 at Dec. 31, 2017 | 695 | 695 | 695 | |||||
Stock issued under compensation plans, net | 581 | $ 1 | 580 | 581 | ||||
Stock issued under compensation plans, net (in shares) | 57 | |||||||
Stock-based compensation expense | 420 | 420 | 420 | |||||
Shares repurchased | (934) | (674) | (260) | (934) | ||||
Shares repurchased (in shares) | (30) | |||||||
Other comprehensive income | (17) | (17) | (17) | |||||
Balance at Mar. 31, 2018 | 293,428 | 0 | $ 164 | 144,260 | (316) | 149,320 | 293,428 | 0 |
Balance (in shares) at Mar. 31, 2018 | 16,492 | |||||||
Balance at Dec. 31, 2018 | 324,464 | 0 | $ 165 | 148,276 | (193) | 174,736 | 322,984 | 1,480 |
Balance (in shares) at Dec. 31, 2018 | 16,565 | |||||||
Net income | 6,620 | 7,353 | 7,353 | (733) | ||||
Stock issued under compensation plans, net | 282 | 282 | 282 | |||||
Stock issued under compensation plans, net (in shares) | 68 | |||||||
Stock-based compensation expense | 951 | 951 | 951 | |||||
Shares repurchased | (778) | (571) | (207) | (778) | ||||
Shares repurchased (in shares) | (23) | |||||||
Other comprehensive income | (77) | (77) | (77) | |||||
Stock issued - other | 12 | $ 12 | 12 | |||||
Balance at Mar. 31, 2019 | $ 331,474 | $ 0 | $ 177 | $ 148,938 | $ (270) | $ 181,882 | $ 330,727 | $ 747 |
Balance (in shares) at Mar. 31, 2019 | 16,610 |
UNAUDITED CONSOLIDATED STATEM_3
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 6,620 | $ 5,644 |
Adjustments to reconcile net income to net cash flows provided by (used in) operating activities: | ||
Depreciation and amortization of property and equipment | 9,815 | 9,275 |
Amortization of intangible assets | 734 | 117 |
Stock-based compensation expense | 951 | 420 |
Deferred income taxes | (315) | 48 |
Gain on sale of property and equipment | (471) | (1,051) |
Other non-cash items | (56) | 702 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (9,380) | 23,663 |
Contract assets | (27,615) | (12,753) |
Receivable for insurance claims in excess of deductibles | 1,178 | (290) |
Other assets | (849) | 1,405 |
Accounts payable | 38,220 | (3,765) |
Contract liabilities | (30,033) | (12,333) |
Accrued self insurance | (580) | (857) |
Other liabilities | 3,576 | 11,808 |
Net cash flows provided by (used in) operating activities | (8,205) | 22,033 |
Cash flows from investing activities: | ||
Proceeds from sale of property and equipment | 832 | 1,074 |
Purchases of property and equipment | (9,911) | (14,497) |
Net cash flows used in investing activities | (9,079) | (13,423) |
Cash flows from financing activities: | ||
Net borrowings (repayments) under revolving lines of credit | 21,609 | (11,578) |
Payment of principal obligations under equipment notes | (1,455) | 0 |
Payment of principal obligations under capital leases | (230) | (272) |
Proceeds from exercise of stock options | 282 | 581 |
Repurchase of common shares | (778) | (934) |
Other financing activities | (8,364) | 0 |
Net cash flows provided by (used in) financing activities | 11,064 | (12,203) |
Effect of exchange rate changes on cash | 51 | (31) |
Net decrease in cash and cash equivalents | (6,169) | (3,624) |
Cash and cash equivalents: | ||
Beginning of period | 7,507 | 5,343 |
End of period | $ 1,338 | $ 1,719 |
Organization, Business and Basi
Organization, Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Business and Basis of Presentation | 1. 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 conducts operations through its 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 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; Huen Electric, 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, local governments 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 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, 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, 2018 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, 2018, included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on March 6, 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 consolidated statements of operations. Foreign currency losses for the three months ended March 31, 2019 and 2018, 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 consolidated statements of comprehensive income. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. As of March 31, 2019 and December 31, 2018, the Company held its cash in checking accounts or in highly liquid money market funds. The Company’s banking arrangements allow the Company to fund outstanding checks when presented to financial institutions for payment. The Company funds all intraday bank balances overdrafts during the same business day. Checks issued and outstanding in excess of bank balance are recorded in accounts payable in the Consolidated Balance Sheets and are reflected as other financing activities in the Consolidated Statements of Cash Flows. As of March 31, 2019, the Company had checks issued and outstanding in excess of our bank balance of $ 8.4 no 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 accounts receivable reserves. 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 this accrual based on current gross margin rates to be consistent with its cost method of revenue recognition. In the three months ended March 31, 2019 and 2018, the Company recognized revenues of $6.8 million and $16.1 million, respectively, related to significant change orders and/or claims that had been included as contract price adjustments on certain contracts which were in the process of being negotiated in the normal course of business. 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 March 31, 2019, changes in estimates pertaining to certain projects decreased consolidated gross margin by 0.8%, which resulted in decreases in operating income of $4.0 million, of $1.5 million and diluted earnings per common share of $0.09. During the three months ended March 31, 2018, changes in estimates pertaining to certain projects decreased consolidated gross margin by 0.1 0.3 of $ 0.2 of $ 0.01 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 February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Recently Issued Accounting Pronouncements In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which simplifies the subsequent measurement of goodwill, through the elimination of Step 2 from the goodwill impairment test. Instead, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The update is effective for any annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The guidance requires application on a prospective basis. The Company does not expect that this pronouncement will have a significant impact on its financial statements. |
Acquisition
Acquisition | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisition | 2. Acquisition On July 2, 2018, the Company completed the acquisition of substantially all of the assets of Huen Electric, Inc., an electrical contracting firm based in Illinois, Huen Electric New Jersey Inc., an electrical contracting firm based in New Jersey, and Huen New York, Inc., an electrical contracting firm based in New York (collectively, the “Huen Companies”). The Huen Companies provide a wide range of commercial and industrial electrical construction capabilities under the Company’s C&I segment in Illinois, New Jersey and New York. The total consideration paid was approximately $47.1 $ 10.8 57.9 The purchase agreement also includes contingent consideration provisions for margin guarantee adjustments based upon performance subsequent to the acquisition on certain contracts. The contracts were valued at fair value at the acquisition date, causing no margin guarantee estimate or adjustments for fair value. Changes in contract estimates, such as modified costs to complete or change order recognition, have resulted and will continue to result in changes to these margin guarantee estimates. Changes in contingent consideration, subsequent to the acquisition, related to the margin guarantee adjustments on certain contracts of approximately $0.8 million were recorded in other income for the three months ended March 31, 2019. Future margin guarantee adjustments, if any, are expected to be recognized through 2019. 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 the Huen Companies. These payments are recognized as compensation expense in the consolidated statements of operations as incurred. For the three months ended March 31, 2019, the Company recognized $0.3 million of compensation expense associated with these contingent payments. The following table summarizes the allocation of the opening balance sheet from the date of the Huen Companies acquisition through March 31, 2019: (in thousands) (as of acquisition date) July 2, 2018 Measurement Period Adjustments Adjusted acquisition amounts as of March 31, 2019 Consideration paid $ 47,082 $ — $ 47,082 Preliminary estimated net asset adjustments 10,749 85 10,834 Total consideration, net of net asset adjustments $ 57,831 $ 85 $ 57,916 Accounts receivable, net $ 33,903 $ (207 ) $ 33,696 Contract assets 10,570 1,010 11,580 Other current and long term assets 88 (11 ) 77 Property and equipment 3,188 — 3,188 Intangible assets — 24,300 24,300 Accounts payable (9,592 ) (1,274 ) (10,866 ) Contract liabilities (6,394 ) 525 (5,869 ) Other current liabilities (6,570 ) 49 (6,521 ) Net identifiable assets and liabilities 25,193 24,392 49,585 Unallocated intangible assets 9,800 (9,800 ) — Total acquired assets and liabilities 34,993 14,592 49,585 Fair value of acquired noncontrolling interest (1,273 ) (7 ) (1,280 ) Goodwill $ 24,111 $ (14,500 ) $ 9,611 |
Contract Assets and Liabilities
Contract Assets and Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Contractors [Abstract] | |
Contract Assets and Liabilities | 3. 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, which are generally due once the job is completed and approved. The allowance for collection of contract retainage was not significant as of March 31, 2019 and 2018. Contract assets consisted of the following: March 31, December 31, (in thousands) 2019 2018 Change Unbilled revenue $ 129,850 $ 111,153 $ 18,697 Contract retainages, net 58,219 49,128 9,091 Contract assets $ 188,069 $ 160,281 $ 27,788 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: March 31, December 31, (in thousands) 2019 2018 Change Deferred revenue $ 27,065 $ 57,051 $ (29,986 ) Accrued loss provision 1,454 1,483 (29 ) Contract liabilities $ 28,519 $ 58,534 $ (30,015 ) The following table provides information about contract assets and contract liabilities from contracts with customers: March 31, December 31, (in thousands) 2019 2018 Change Contract assets $ 188,069 $ 160,281 $ 27,788 Contract liabilities (28,519 ) (58,534 ) 30,015 Net contract assets (liabilities) $ 159,550 $ 101,747 $ 57,803 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 performance of work. The amounts of revenue recognized in the period that was included in the opening contract liability balances were $49.4 million for the three months ended March 31, 2019 and $25.4 million for the three months ended March 31, 2018. This revenue consists primarily of work performed on previous billings to customers. The net asset position for contracts in process consisted of the following: March 31, December 31, (in thousands) 2019 2018 Costs and estimated earnings on uncompleted contracts $ 2,448,984 $ 2,718,713 Less: Billings to date 2,346,199 2,664,611 $ 102,785 $ 54,102 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: March 31, December 31, (in thousands) 2019 2018 Unbilled revenue $ 129,850 $ 111,153 Deferred revenue (27,065 ) (57,051 ) $ 102,785 $ 54,102 |
Lease Obligations
Lease Obligations | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lease Obligations | 4. Lease Obligations Change in Accounting Policy On January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842) 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 to eight years, some of which may include options to extend the leases for up to five years, and some of which may include options to terminate the leases within one year. Currently, all of the Company’s leases contain fixed payment terms. The Company may decide to cancel or terminate a lease before the end of its term, in which case we are typically liable to the lessor for the remaining lease payments under the term of the lease. Additionally, all of our month-to-month leases are cancelable by the Company or the lessor, at any time and are not included in our right-of-use asset or liability. At March 31, 2019, the Company had no leases with residual value guarantees. Typically, the Company has purchase options on the equipment underlying its long-term leases and many of its short-term rental arrangements. The Company may exercise some of these purchase options when the need for equipment is on-going and the purchase option price is attractive. Nonperformance-related default covenants, cross-default provisions, subjective default provisions and material adverse change clauses contained in material lease agreements, if any, are also evaluated to determine whether those clauses affect lease classification in accordance with “ASC” Topic 842-10-25. Leases are accounted for as operating or financing leases, depending on the terms of the lease. Financing Leases The Company leases some vehicles and certain equipment under financing leases. The economic substance of the leases is a financing transaction for acquisition of the vehicles and equipment. Accordingly, the right-of-use assets for 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 financing lease obligations or financing lease obligations, net of current maturities, as appropriate. The financing 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. The interest associated with financing lease obligations is included in interest expense. Operating Right-of-Use Leases Operating right-of-use leases are included in operating lease right-of-use assets, and current portion of operating lease obligations and operating lease obligations, net of current maturities, as appropriate. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company’s leases do not provide an implicit rate to calculate present value, the Company determines this rate, by estimating the Company’s incremental borrowing rate, at the lease commencement date. The operating lease right-of-use asset also includes any lease payments made and initial direct costs incurred and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The following is a summary of the lease-related assets and liabilities recorded as of March 31, 2019: (in thousands) Assets Classification on the Consolidated Balance Sheet Operating lease right-of-use assets Operating lease right-of-use assets $ 16,266 Finance lease right-of-use assets Property and equipment, net of accumulated depreciation 2,327 Total right-of-use lease assets $ 18,593 Liabilities Current Operating lease obligations Current portion of operating lease obligations $ 4,401 Finance lease obligations Current portion of finance lease obligations 1,127 Total current obligations 5,528 Non-current Operating lease obligations Operating lease obligations, net of current maturities 11,600 Finance lease obligations Finance lease obligations, net of current maturities 1,275 Total non-current obligations 12,875 Total lease obligations $ 18,403 The following is a summary of the lease terms and discount rates as of March 31, 2019: Weighted-average remaining lease term - finance leases 2.14 Weighted-average remaining lease term - operating leases 4.31 Weighted-average discount rate - finance leases 2.5 % Weighted-average discount rate - operating leases 3.8 % The following is a summary of certain information related to the lease costs for finance and operating leases for the three months ended March 31, 2019: (in thousands) Lease cost: Finance lease cost: Amortization of right-of-use assets $ 273 Interest on lease liabilities 20 Operating lease cost 1,594 Short-term lease cost 15 Variable lease costs 65 Total lease cost $ 1,967 The following is a summary of other information and supplemental cash flow information related to finance and operating leases for three months ended March 31, 2019: (in thousands) Other information: Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,679 Right-of-use asset obtained in exchange for new operating lease obligations $ 17,200 The future undiscounted minimum lease payments, as reconciled to the discounted minimum indicated on the Company’s consolidated balance sheets, under financial leases, less interest, and under operating leases, less interest, as of March 31, 2019 were as follows: Finance Operating Total (In thousands) Lease Lease Lease Remainder of 2019 $ 889 $ 4,693 $ 5,582 2020 1,185 4,859 6,044 2021 410 3,752 4,162 2022 — 2,822 2,822 2023 — 1,533 1,533 Thereafter — 2,481 2,481 Total minimum lease payments 2,484 20,140 22,624 Financing component (82 ) (4,139 ) (4,221 ) Net present value of minimum lease payments 2,402 16,001 18,403 Less: Current portion of financing and operating lease obligations (1,127 ) (4,401 ) (5,528 ) Long-term financing and operating lease obligations $ 1,275 $ 11,600 $ 12,875 The financing component for finance lease obligations represents the interest component of capital leases that will be recognized as interest expense in future periods. The financing component for operating lease obligations represents the difference between the future operating lease obligations and their unamortized fair value. 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 March 31, 2019, the minimum lease payments required under these leases totaled $2.8 million, which is to be paid over the next 4.3 years. Capital Leases Prior to the adoption of ASU No. 2016-02, Leases (Topic 842) As of December 31, 2018, the Company had $2.7 million of capital lease obligations outstanding, $1.1 million of which was classified as a current liability. As of December 31, 2018, $2.6 million of leased assets were capitalized in property and equipment, net of accumulated depreciation. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. 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 March 31, 2019 and December 31, 2018, the Company determined that the carrying value of cash and cash equivalents approximated fair value based on Level 1 inputs. As of March 31, 2019 and December 31, 2018, 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 March 31, 2019 and December 31, 2018, 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 | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 6. Debt The table below reflects the Company's total debt, including borrowings under its credit agreement and equipment notes: Outstanding Outstanding Balance as of Balance as of Stated Interest Payment Term March 31, December 31, (dollar amounts in thousands) Inception Date Rate (per annum) Frequency (years) 2019 2018 Credit Agreement Revolving loans 6/30/2016 Variable Variable 5 $ 79,915 $ 58,306 Equipment Notes Equipment Note 1 9/28/2018 4.16% Semi-annual 5 11,734 12,655 Equipment Note 2 9/28/2018 4.23% Semi-annual 7 11,745 12,279 Equipment Note 3 12/31/2018 3.97% Semi-annual 5 2,291 2,291 Equipment Note 4 12/31/2018 4.02% Semi-annual 7 2,313 2,313 Equipment Note 5 12/31/2018 4.01% Semi-annual 7 1,948 1,948 30,031 31,486 Total debt 109,946 89,792 Less: Current portion of long-term debt (3,742 ) (3,681 ) Long-term debt $ 106,204 $ 86,111 Credit Agreement On June 30, 2016, the Company entered into a five-year amended and restated credit agreement as amended from time to time, (the “Credit Agreement”) with a syndicate of banks led by JPMorgan Chase Bank, N.A. and Bank of America, N.A, that provided for a $250 million facility (the “Facility”), which could be used for revolving loans and letters of credit. On September 28, 2018, the Company amended the Credit Agreement. This amendment, among other things, reduces the amount of the Facility available to be used for letters of credit to a maximum of $150 million. 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 $50 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 $100 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 working capital, capital expenditures, acquisitions, stock 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 1.00%; or (2) Adjusted LIBO Rate (as defined in the Credit Agreement) plus an applicable margin ranging from 1.00% to 2.00%. 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 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 1.125% to 2.125% for non-performance letters of credit or 0.625% to 1.125% for performance letters of credit, based on the Company’s consolidated Leverage Ratio. The Company is subject to a commitment fee of 0.20% to 0.375%, 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 2.25. The weighted average interest rate on borrowings outstanding on the Facility for the three months ended March 31, 2019 was 3.51% per annum. Under the Credit Agreement, the Company is subject to certain financial covenants and must maintain 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 a number of covenants, including limitations on asset sales, investments, indebtedness and liens. In connection with any permitted acquisition where the total consideration exceeds $50 million, the Company may request that the maximum permitted consolidated Leverage Ratio increase from 3.0 to 3.5. Any such increase shall begin in the quarter in which such permitted acquisition is consummated and shall continue in effect for four consecutive fiscal quarters. The Company was in compliance with all of its financial covenants under the Credit Agreement as of March 31, 2019. As of March 31, 2019 and December 31, 2018, the Company had letters of credit outstanding under the Facility of approximately $21.2 million, including $17.6 million related to the Company’s payment obligation under its insurance programs and approximately $3.6 million related to contract performance obligations. The Company had remaining deferred debt issuance costs totaling $0.6 million as of March 31, 2019, related to the line of credit. As permitted under ASU No. 2015-15, 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 On September 28, 2018, the Company entered into a Master Equipment Loan and Security Agreement (the “Master Loan Agreement”) with Banc of America Leasing & Capital, LLC (“BofA”). The Master Loan Agreement may be used for the financing of equipment between the Company and BofA pursuant to one or more equipment notes ("Equipment Notes"). Each Equipment Note executed under the Master Loan Agreement constitutes a separate, distinct and independent financing of equipment and a contractual obligation of the Company, which may contain prepayment clauses. As of March 31, 2019, the Company had five Equipment Notes outstanding under the Master Loan Agreement that are collateralized by equipment and vehicles owned by the Company. The following table sets forth our remaining principal payments for the Company’s outstanding Equipment Notes as of March 31, 2019: Future Equipment Notes (In thousands) Principal Payments Remainder of 2019 $ 2,225 2020 3,835 2021 3,995 2022 4,164 2023 7,328 2024 1,820 Thereafter 6,664 Total future principal payments $ 30,031 Less: Current portion of equipment notes (3,742 ) Long-term principal obligations $ 26,289 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 7. 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 do the entire 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 to three years in duration; however, most of the Company’s contracts, including MSAs, may be terminated by the customer on short notice, typically 30 to 90 days, even if the Company is not in default under the contract. Under MSAs, customers generally agree to use the Company for certain services in a specified geographic region. Most MSAs include no obligation for the contract counterparty to assign specific volumes of work to the Company and do not require the counterparty to use the Company exclusively, although in some cases the MSA contract gives the Company a right of first refusal for certain work. Additional information related to the Company’s market types is provided in Note 11–Segment Information. The components of the Company’s revenue by contract type for the three months ended March 31, 2019 and 2018 were as follows: Three months ended March 31, 2019 T&D C&I Total (in thousands) Amount Percent Amount Percent Amount Percent Fixed price $ 133,324 48.9 % $ 133,711 68.4 % $ 267,035 57.0 % Unit price 51,194 18.8 9,988 5.1 61,182 13.1 T&E 76,308 28.0 12,531 6.4 88,839 19.0 Other 11,722 4.3 39,316 20.1 51,038 10.9 $ 272,548 100.0 % $ 195,546 100.0 % $ 468,094 100.0 % Three months ended March 31, 2018 T&D C&I Total (in thousands) Amount Percent Amount Percent Amount Percent Fixed price $ 79,435 36.7 % $ 89,155 69.0 % $ 168,590 48.8 % Unit price 45,676 21.1 9,650 7.5 55,326 16.0 T&E 80,345 37.1 9,457 7.3 89,802 26.0 Other 10,930 5.1 20,963 16.2 31,893 9.2 $ 216,386 100.0 % $ 129,225 100.0 % $ 345,611 100.0 % The components of the Company’s revenue by market type for the three months ended March 31, 2019 and 2018 were as follows: Three months ended March 31, 2019 Three months ended March 31, 2018 (in thousands) Amount Percent Segment Amount Percent Segment Transmission $ 187,765 40.1 % T&D $ 134,452 38.9 % T&D Distribution 84,783 18.1 T&D 81,934 23.7 T&D Electrical construction 195,546 41.8 C&I 129,225 37.4 C&I Total Revenue $ 468,094 100.0 % $ 345,611 100.0 % Remaining Performance Obligations As of March 31, 2019, the Company had $1.06 billion of remaining performance obligations. The Company’s remaining performance obligations includes 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 that the Company expects to be realized as of March 31, 2019 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 as of March 31, 2019 (In thousands) Total Amount estimated to not be recognized within 12 months Total at December 31, 2018 T&D $ 398,382 $ 40,445 $ 418,178 C&I 657,741 123,611 644,547 Total $ 1,056,123 $ 164,056 $ 1,062,725 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 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes The U.S. federal statutory tax rate was 21% for the three months ended March 31, 2019 and 2018. The Company’s effective tax rate for the three months ended March 31, 2019 was 27.8% of pretax income compared to the effective tax rate for the three months ended March 31, 2018 of 28.9%. The difference between the U.S. federal statutory tax rate and the Company’s effective tax rate for the three months ended March 31, 2019 was primarily due to state income taxes . The difference between the U.S. federal statutory tax rate and the Company’s effective tax rate for the three months ended March 31, 2018 was primarily due to state income taxes and the inability to utilize losses experienced in certain Canadian operations. The Company had unrecognized tax benefits of approximately $0.4 million as of March 31, 2019 and December 31, 2018, 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 months ended March 31, 2019 and 2018. The Company is subject to taxation in various jurisdictions. The Company is currently under examination by U. S. federal authorities for its 2016 tax returns and its 2017 tax return is subject to examination by U. S. federal authorities. The Company’s tax returns are subject to examination by various state authorities for the years 2014 through 2017. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Purchase Commitments As of March 31, 2019, the Company had approximately $10.0 million in outstanding purchase orders for certain construction equipment, with cash outlay scheduled to occur over the next four months. Insurance and Claims Accruals The Company carries insurance policies, which are subject to certain deductibles, 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’s health benefit plans are subject to deductibles of up to $0.2 million for qualified individuals. Losses up to the deductible 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 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 March 31, 2019, an aggregate of approximately $646.1 million 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 $320.0 million as of March 31, 2019. 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. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 10. 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, 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 grants time-vested stock awards in the form of restricted stock awards, restricted stock units or equity-settled phantom stock. During the three months ended March 31, 2019, the Company granted 68,104 shares of time-vested stock awards under the LTIP, which vest ratably over three years, at a weighted average grant date fair value of $33.67. Additionally, 56,912 shares of time-vested stock awards vested during the three months ended March 31, 2019, at a weighted average grant date fair value of $30.87. During the three months ended March 31, 2 0 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 target, or on a market-based metric, such as the Company’s stock performance compared to a peer group. Performance awards cliff vest upon attainment of the stated performance targets and minimum service requirements During the three months ended March 31, 2019, plan participants exercised 11,465 stock options with a weighted average exercise price of $24.68. 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. The Company recognizes stock-based compensation expense related to market-based performance awards based on the grant date fair value, which is computed using a Monte Carlo simulation. The fair value is expensed over the service period, which is approximately 2.8 years. The Company recognizes stock-based compensation expense related to internal measure-based performance awards 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 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 potential achievement of the performance target at each reporting date. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 11. 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, management fees, and intangible amortization. The accounting policies of the segments are the same as those described in the Note 1– Organization, Business and Significant Accounting Policies to the Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. 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, 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 March 31, (In thousands) 2019 2018 Contract revenues: T&D $ 272,548 $ 216,386 C&I 195,546 129,225 $ 468,094 $ 345,611 Income from operations: T&D $ 14,930 $ 13,541 C&I 5,058 5,336 General Corporate (10,362 ) (10,470 ) $ 9,626 $ 8,407 For the three months ended March 31, 2019 and 2018, contract revenues attributable to the Company’s Canadian operations were 12.7 $14.7 million, predominantly in the C&I segment. |
Noncontrolling Interest
Noncontrolling Interest | 3 Months Ended |
Mar. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | 12. Noncontrolling Interest On July 2, 2018, through the acquisition of certain assets of the Huen Companies, the Company became 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, 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 acquired joint venture made no distributions to its partners, and the Company made no capital contributions to the joint venture during the three months ended March 31, 2019. Additionally, there have been no changes in ownership during the three months ended March 31, 2019. The project is expected to be completed in 2019. Net loss attributable to the noncontrolling interest, during the three months ended March 31, 2019, was $0.7 million. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 13. Earnings Per Share The Company computes earnings per share attributable to MYR Group Inc. using the treasury stock method. Under the treasury stock method, basic earnings per share attributable to MYR Group Inc. 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 attributable to MYR Group Inc. and the weighted average number of common shares used to compute basic and diluted earnings per share were as follows: Three months ended March 31, (In thousands, except per share data) 2019 2018 Numerator: Net income attributable to MYR Group Inc. $ 7,353 $ 5,644 Denominator: Weighted average common shares outstanding 16,514 16,321 Weighted average dilutive securities 144 199 Weighted average common shares outstanding, diluted 16,658 16,520 Income per common share attributable to MYR Group Inc.: Basic $ 0.45 $ 0.35 Diluted $ 0.44 $ 0.34 For the three months ended March 31, 2019 and 2018, 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. 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 March 31, (In thousands) 2019 2018 Restricted stock 68 1 Performance awards 73 49 |
Organization, Business and Ba_2
Organization, Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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 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, 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, 2018 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, 2018, included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on March 6, 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 consolidated statements of operations. Foreign currency losses for the three months ended March 31, 2019 and 2018, 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 consolidated statements of comprehensive income. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. As of March 31, 2019 and December 31, 2018, the Company held its cash in checking accounts or in highly liquid money market funds. The Company’s banking arrangements allow the Company to fund outstanding checks when presented to financial institutions for payment. The Company funds all intraday bank balances overdrafts during the same business day. Checks issued and outstanding in excess of bank balance are recorded in accounts payable in the Consolidated Balance Sheets and are reflected as other financing activities in the Consolidated Statements of Cash Flows. As of March 31, 2019, the Company had checks issued and outstanding in excess of our bank balance of $ 8.4 no |
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 accounts receivable reserves. 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 this accrual based on current gross margin rates to be consistent with its cost method of revenue recognition. In the three months ended March 31, 2019 and 2018, the Company recognized revenues of $6.8 million and $16.1 million, respectively, related to significant change orders and/or claims that had been included as contract price adjustments on certain contracts which were in the process of being negotiated in the normal course of business. 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 March 31, 2019, changes in estimates pertaining to certain projects decreased consolidated gross margin by 0.8%, which resulted in decreases in operating income of $4.0 million, of $1.5 million and diluted earnings per common share of $0.09. During the three months ended March 31, 2018, changes in estimates pertaining to certain projects decreased consolidated gross margin by 0.1 0.3 of $ 0.2 of $ 0.01 |
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 February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Recently Issued Accounting Pronouncements In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which simplifies the subsequent measurement of goodwill, through the elimination of Step 2 from the goodwill impairment test. Instead, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The update is effective for any annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The guidance requires application on a prospective basis. The Company does not expect that this pronouncement will have a significant impact on its financial statements. |
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 March 31, 2019 and December 31, 2018, the Company determined that the carrying value of cash and cash equivalents approximated fair value based on Level 1 inputs. As of March 31, 2019 and December 31, 2018, 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 March 31, 2019 and December 31, 2018, 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. |
Earnings Per Share | Earnings Per Share The Company computes earnings per share attributable to MYR Group Inc. using the treasury stock method. Under the treasury stock method, basic earnings per share attributable to MYR Group Inc. 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. |
Acquisition (Tables)
Acquisition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of acquisition | The following table summarizes the allocation of the opening balance sheet from the date of the Huen Companies acquisition through March 31, 2019: (in thousands) (as of acquisition date) July 2, 2018 Measurement Period Adjustments Adjusted acquisition amounts as of March 31, 2019 Consideration paid $ 47,082 $ — $ 47,082 Preliminary estimated net asset adjustments 10,749 85 10,834 Total consideration, net of net asset adjustments $ 57,831 $ 85 $ 57,916 Accounts receivable, net $ 33,903 $ (207 ) $ 33,696 Contract assets 10,570 1,010 11,580 Other current and long term assets 88 (11 ) 77 Property and equipment 3,188 — 3,188 Intangible assets — 24,300 24,300 Accounts payable (9,592 ) (1,274 ) (10,866 ) Contract liabilities (6,394 ) 525 (5,869 ) Other current liabilities (6,570 ) 49 (6,521 ) Net identifiable assets and liabilities 25,193 24,392 49,585 Unallocated intangible assets 9,800 (9,800 ) — Total acquired assets and liabilities 34,993 14,592 49,585 Fair value of acquired noncontrolling interest (1,273 ) (7 ) (1,280 ) Goodwill $ 24,111 $ (14,500 ) $ 9,611 |
Contract Assets and Liabiliti_2
Contract Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Contractors [Abstract] | |
Schedule of contract assets and liabilities from contracts with customers | Contract assets consisted of the following: March 31, December 31, (in thousands) 2019 2018 Change Unbilled revenue $ 129,850 $ 111,153 $ 18,697 Contract retainages, net 58,219 49,128 9,091 Contract assets $ 188,069 $ 160,281 $ 27,788 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: March 31, December 31, (in thousands) 2019 2018 Change Deferred revenue $ 27,065 $ 57,051 $ (29,986 ) Accrued loss provision 1,454 1,483 (29 ) Contract liabilities $ 28,519 $ 58,534 $ (30,015 ) The following table provides information about contract assets and contract liabilities from contracts with customers: March 31, December 31, (in thousands) 2019 2018 Change Contract assets $ 188,069 $ 160,281 $ 27,788 Contract liabilities (28,519 ) (58,534 ) 30,015 Net contract assets (liabilities) $ 159,550 $ 101,747 $ 57,803 |
Schedule of net asset position for contracts in process | The net asset position for contracts in process consisted of the following: March 31, December 31, (in thousands) 2019 2018 Costs and estimated earnings on uncompleted contracts $ 2,448,984 $ 2,718,713 Less: Billings to date 2,346,199 2,664,611 $ 102,785 $ 54,102 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: March 31, December 31, (in thousands) 2019 2018 Unbilled revenue $ 129,850 $ 111,153 Deferred revenue (27,065 ) (57,051 ) $ 102,785 $ 54,102 |
Lease Obligations (Tables)
Lease Obligations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Summary of lease related assets and liabilities | The following is a summary of the lease-related assets and liabilities recorded as of March 31, 2019: (in thousands) Assets Classification on the Consolidated Balance Sheet Operating lease right-of-use assets Operating lease right-of-use assets $ 16,266 Finance lease right-of-use assets Property and equipment, net of accumulated depreciation 2,327 Total right-of-use lease assets $ 18,593 Liabilities Current Operating lease obligations Current portion of operating lease obligations $ 4,401 Finance lease obligations Current portion of finance lease obligations 1,127 Total current obligations 5,528 Non-current Operating lease obligations Operating lease obligations, net of current maturities 11,600 Finance lease obligations Finance lease obligations, net of current maturities 1,275 Total non-current obligations 12,875 Total lease obligations $ 18,403 |
Summary of lease terms and discount rates | The following is a summary of the lease terms and discount rates as of March 31, 2019: Weighted-average remaining lease term - finance leases 2.14 Weighted-average remaining lease term - operating leases 4.31 Weighted-average discount rate - finance leases 2.5 % Weighted-average discount rate - operating leases 3.8 % |
Summary of lease costs | The following is a summary of certain information related to the lease costs for finance and operating leases for the three months ended March 31, 2019: (in thousands) Lease cost: Finance lease cost: Amortization of right-of-use assets $ 273 Interest on lease liabilities 20 Operating lease cost 1,594 Short-term lease cost 15 Variable lease costs 65 Total lease cost $ 1,967 |
Summary of other and supplemental cash flow information related to leases | The following is a summary of other information and supplemental cash flow information related to finance and operating leases for three months ended March 31, 2019: (in thousands) Other information: Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,679 Right-of-use asset obtained in exchange for new operating lease obligations $ 17,200 |
Schedule of future minimum operating lease payments | The future undiscounted minimum lease payments, as reconciled to the discounted minimum indicated on the Company’s consolidated balance sheets, under financial leases, less interest, and under operating leases, less interest, as of March 31, 2019 were as follows: Finance Operating Total (In thousands) Lease Lease Lease Remainder of 2019 $ 889 $ 4,693 $ 5,582 2020 1,185 4,859 6,044 2021 410 3,752 4,162 2022 — 2,822 2,822 2023 — 1,533 1,533 Thereafter — 2,481 2,481 Total minimum lease payments 2,484 20,140 22,624 Financing component (82 ) (4,139 ) (4,221 ) Net present value of minimum lease payments 2,402 16,001 18,403 Less: Current portion of financing and operating lease obligations (1,127 ) (4,401 ) (5,528 ) Long-term financing and operating lease obligations $ 1,275 $ 11,600 $ 12,875 |
Schedule of future minimum finance lease payments | The future undiscounted minimum lease payments, as reconciled to the discounted minimum indicated on the Company’s consolidated balance sheets, under financial leases, less interest, and under operating leases, less interest, as of March 31, 2019 were as follows: Finance Operating Total (In thousands) Lease Lease Lease Remainder of 2019 $ 889 $ 4,693 $ 5,582 2020 1,185 4,859 6,044 2021 410 3,752 4,162 2022 — 2,822 2,822 2023 — 1,533 1,533 Thereafter — 2,481 2,481 Total minimum lease payments 2,484 20,140 22,624 Financing component (82 ) (4,139 ) (4,221 ) Net present value of minimum lease payments 2,402 16,001 18,403 Less: Current portion of financing and operating lease obligations (1,127 ) (4,401 ) (5,528 ) Long-term financing and operating lease obligations $ 1,275 $ 11,600 $ 12,875 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of total debt | The table below reflects the Company's total debt, including borrowings under its credit agreement and equipment notes: Outstanding Outstanding Balance as of Balance as of Stated Interest Payment Term March 31, December 31, (dollar amounts in thousands) Inception Date Rate (per annum) Frequency (years) 2019 2018 Credit Agreement Revolving loans 6/30/2016 Variable Variable 5 $ 79,915 $ 58,306 Equipment Notes Equipment Note 1 9/28/2018 4.16% Semi-annual 5 11,734 12,655 Equipment Note 2 9/28/2018 4.23% Semi-annual 7 11,745 12,279 Equipment Note 3 12/31/2018 3.97% Semi-annual 5 2,291 2,291 Equipment Note 4 12/31/2018 4.02% Semi-annual 7 2,313 2,313 Equipment Note 5 12/31/2018 4.01% Semi-annual 7 1,948 1,948 30,031 31,486 Total debt 109,946 89,792 Less: Current portion of long-term debt (3,742 ) (3,681 ) Long-term debt $ 106,204 $ 86,111 |
Schedule of remaining principal payments for long term obligations | The following table sets forth our remaining principal payments for the Company’s outstanding Equipment Notes as of March 31, 2019: Future Equipment Notes (In thousands) Principal Payments Remainder of 2019 $ 2,225 2020 3,835 2021 3,995 2022 4,164 2023 7,328 2024 1,820 Thereafter 6,664 Total future principal payments $ 30,031 Less: Current portion of equipment notes (3,742 ) Long-term principal obligations $ 26,289 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 months ended March 31, 2019 and 2018 were as follows: Three months ended March 31, 2019 T&D C&I Total (in thousands) Amount Percent Amount Percent Amount Percent Fixed price $ 133,324 48.9 % $ 133,711 68.4 % $ 267,035 57.0 % Unit price 51,194 18.8 9,988 5.1 61,182 13.1 T&E 76,308 28.0 12,531 6.4 88,839 19.0 Other 11,722 4.3 39,316 20.1 51,038 10.9 $ 272,548 100.0 % $ 195,546 100.0 % $ 468,094 100.0 % Three months ended March 31, 2018 T&D C&I Total (in thousands) Amount Percent Amount Percent Amount Percent Fixed price $ 79,435 36.7 % $ 89,155 69.0 % $ 168,590 48.8 % Unit price 45,676 21.1 9,650 7.5 55,326 16.0 T&E 80,345 37.1 9,457 7.3 89,802 26.0 Other 10,930 5.1 20,963 16.2 31,893 9.2 $ 216,386 100.0 % $ 129,225 100.0 % $ 345,611 100.0 % The components of the Company’s revenue by market type for the three months ended March 31, 2019 and 2018 were as follows: Three months ended March 31, 2019 Three months ended March 31, 2018 (in thousands) Amount Percent Segment Amount Percent Segment Transmission $ 187,765 40.1 % T&D $ 134,452 38.9 % T&D Distribution 84,783 18.1 T&D 81,934 23.7 T&D Electrical construction 195,546 41.8 C&I 129,225 37.4 C&I Total Revenue $ 468,094 100.0 % $ 345,611 100.0 % |
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 that the Company expects to be realized as of March 31, 2019 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 as of March 31, 2019 (In thousands) Total Amount estimated to not be recognized within 12 months Total at December 31, 2018 T&D $ 398,382 $ 40,445 $ 418,178 C&I 657,741 123,611 644,547 Total $ 1,056,123 $ 164,056 $ 1,062,725 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, (In thousands) 2019 2018 Contract revenues: T&D $ 272,548 $ 216,386 C&I 195,546 129,225 $ 468,094 $ 345,611 Income from operations: T&D $ 14,930 $ 13,541 C&I 5,058 5,336 General Corporate (10,362 ) (10,470 ) $ 9,626 $ 8,407 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of weighted average number of common shares used to compute basic and dilute earnings per share | Net income attributable to MYR Group Inc. and the weighted average number of common shares used to compute basic and diluted earnings per share were as follows: Three months ended March 31, (In thousands, except per share data) 2019 2018 Numerator: Net income attributable to MYR Group Inc. $ 7,353 $ 5,644 Denominator: Weighted average common shares outstanding 16,514 16,321 Weighted average dilutive securities 144 199 Weighted average common shares outstanding, diluted 16,658 16,520 Income per common share attributable to MYR Group Inc.: Basic $ 0.45 $ 0.35 Diluted $ 0.44 $ 0.34 |
Schedule of shared excluded from calculation of dilute securities | 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 March 31, (In thousands) 2019 2018 Restricted stock 68 1 Performance awards 73 49 |
Organization, Business and Ba_3
Organization, Business and Basis of Presentation - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019USD ($)segment$ / shares | Mar. 31, 2018USD ($)$ / shares | Dec. 31, 2018USD ($) | |
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||
Number of business segments (segment) | segment | 2 | ||
Checks issued and outstanding in excess of bank balance | $ 8,400 | $ 0 | |
Increase (decrease) in operating income | 9,626 | $ 8,407 | |
Increase (decrease) in net income | $ 7,353 | $ 5,644 | |
Increase (decrease) in diluted earnings per common share (in dollars per share) | $ / shares | $ 0.44 | $ 0.34 | |
Contract with customer, liability, cumulative catch-up adjustment to revenue, change in estimate of transaction price | $ 6,800 | $ 16,100 | |
Contracts Accounted for under Percentage of Completion [Member] | |||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||
Increase (decrease) in consolidated gross margin | (0.80%) | (0.10%) | |
Increase (decrease) in operating income | $ (4,000) | $ (300) | |
Increase (decrease) in net income | $ (1,500) | $ (200) | |
Increase (decrease) in diluted earnings per common share (in dollars per share) | $ / shares | $ (0.09) | $ (0.01) |
Acquisition - Narrative (Detail
Acquisition - Narrative (Details) - USD ($) $ in Thousands | Jul. 02, 2018 | Mar. 31, 2019 |
Total consideration, net of net asset adjustments | $ 57,900 | |
Huen Electric Inc [Member] | ||
Total consideration paid | $ 47,082 | 47,082 |
Preliminary estimated net asset adjustments | 10,749 | 10,834 |
Total consideration, net of net asset adjustments | $ 57,831 | 57,916 |
Huen Electric Inc [Member] | Certain Performance Targets and Continued Employment of Key Executives [Member] | ||
Change in contingent consideration | 300 | |
Huen Electric Inc [Member] | Margin Guarantee [Member] | ||
Change in contingent consideration | $ 800 |
Acquisition - Summary of acquis
Acquisition - Summary of acquisition by acquisition (Details) - USD ($) $ in Thousands | Jul. 02, 2018 | Mar. 31, 2019 | Dec. 31, 2018 |
Total consideration, net of net asset adjustments | $ 57,900 | ||
Goodwill | 56,592 | $ 56,588 | |
Huen Electric Inc [Member] | |||
Consideration paid | $ 47,082 | 47,082 | |
Preliminary estimated net asset adjustments | 10,749 | 10,834 | |
Total consideration, net of net asset adjustments | 57,831 | 57,916 | |
Accounts receivable, net | 33,903 | 33,696 | |
Contract assets | 10,570 | 11,580 | |
Other current and long term assets | 88 | 77 | |
Property and equipment | 3,188 | 3,188 | |
Intangible assets | 0 | 24,300 | |
Accounts payable | (9,592) | (10,866) | |
Contract liabilities | (6,394) | (5,869) | |
Other current liabilities | (6,570) | (6,521) | |
Net identifiable assets and liabilites | 25,193 | 49,585 | |
Unallocated intangible assets | 9,800 | 0 | |
Total aquired assets and liabilites | 34,993 | 49,585 | |
Fair value of aquired noncontrolling interests | (1,273) | (1,280) | |
Goodwill | $ 24,111 | 9,611 | |
Consideration paid | 0 | ||
Preliminary estimated net asset adjustments | 85 | ||
Total consideration, net of net asset adjustments | 85 | ||
Accounts receivable, net | (207) | ||
Contract assets | 1,010 | ||
Other current and long term assets | (11) | ||
Property and equipment | 0 | ||
Intangible assets | 24,300 | ||
Accounts payable | (1,274) | ||
Contract liabilities | 525 | ||
Other current liabilities | 49 | ||
Net identifiable assets and liabilites | 24,392 | ||
Unallocated intangible assets | (9,800) | ||
Total aquired assets and liabilites | 14,592 | ||
Fair value of acquired noncontrolling interest | (7) | ||
Goodwill | $ (14,500) |
Contract Assets and Liabiliti_3
Contract Assets and Liabilities - Summary of contract assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Unbilled revenue | $ 129,850 | $ 111,153 | |
Contract retainages, net | 58,219 | 49,128 | |
Contract assets | 188,069 | $ 160,281 | |
Changes in contract assets | 27,615 | $ 12,753 | |
Net Period Change [Member] | |||
Changes in unbilled revenue | 18,697 | ||
Changes in contract retainages, net | 9,091 | ||
Changes in contract assets | $ 27,788 |
Contract Assets and Liabiliti_4
Contract Assets and Liabilities - Summary of contract liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Deferred revenue | $ 27,065 | $ 57,051 | |
Accrued loss provision | 1,454 | 1,483 | |
Contract liabilities | 28,519 | $ 58,534 | |
Changes in contract liabilities | (30,033) | $ (12,333) | |
Net Period Change [Member] | |||
Changes in deferred revenue | (29,986) | ||
Changes in accrued loss provision | (29) | ||
Changes in contract liabilities | $ (30,015) |
Contract Assets and Liabiliti_5
Contract Assets and Liabilities - Summary of assets and liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Contract assets | $ 188,069 | $ 160,281 | |
Contract liabilities | (28,519) | (58,534) | |
Net contract assets (liabilities) | 159,550 | $ 101,747 | |
Changes in contract assets | 27,615 | $ 12,753 | |
Net Period Change [Member] | |||
Changes in contract assets | 27,788 | ||
Changes in contract liabilities | 30,015 | ||
Changes in net contract assets (liabilities) | $ 57,803 |
Contract Assets and Liabiliti_6
Contract Assets and Liabilities - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Contract with Customer, Asset and Liability [Abstract] | ||
Revenue recognized during period | $ 49.4 | $ 25.4 |
Contract Assets and Liabiliti_7
Contract Assets and Liabilities - Contracts in process (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Costs and estimated earnings on uncompleted contracts | $ 2,448,984 | $ 2,718,713 |
Less: Billings to date | 2,346,199 | 2,664,611 |
Net asset position for contracts in process | $ 102,785 | $ 54,102 |
Contract Assets and Liabiliti_8
Contract Assets and Liabilities - Summary of net asset position for contracts in process (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Unbilled revenue | $ 129,850 | $ 111,153 |
Deferred revenue | (27,065) | (57,051) |
Net asset position for contracts in process | $ 102,785 | $ 54,102 |
Lease Obligations - Narrative (
Lease Obligations - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Additional right of use lease assets | $ 16,266 | $ 0 | |
Leased assets capitalized | 2,700 | ||
Capital lease obligations classified as current | 1,100 | ||
Capital lease obligations | $ 2,600 | ||
Option to terminate leases, period | 1 year | ||
Option to extend lease term (up to) | 5 years | ||
Minimum lease payments required | $ 20,140 | ||
Accounting Standards Update 2016-02 [Member] | |||
Additional right of use lease assets | $ 16,300 | ||
Additional lease liabilities | $ 16,000 | ||
Subsidiaries [Member] | Employees [Member] | |||
Minimum lease payments required | $ 2,800 | ||
Lease amortization period | 4 years 3 months 18 days | ||
Minimum [Member] | |||
Remaining lease term | 1 year | ||
Maximum [Member] | |||
Remaining lease term | 8 years |
Lease Obligations - Summary of
Lease Obligations - Summary of lease-related assets and liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Operating lease right-of-use assets | $ 16,266 | $ 0 |
Finance lease right-of-use assets | 2,327 | |
Total current lease right-of-use assets | 18,593 | |
Current | ||
Operating lease obligations | 4,401 | 0 |
Finance lease obligations | 1,127 | 1,119 |
Total current obligations | 5,528 | |
Non-current | ||
Operating lease obligations | 11,600 | 0 |
Finance lease obligations | 1,275 | $ 1,514 |
Total non-current obligations | 12,875 | |
Total lease obligations | $ 18,403 |
Lease Obligations - Summary o_2
Lease Obligations - Summary of the lease terms and discount rates (Details) | Mar. 31, 2019 |
Lease, Cost [Abstract] | |
Weighted-average remaining lease term - finance leases | 2 years 1 month 20 days |
Weighted-average remaining lease term - operating leases | 4 years 3 months 21 days |
Weighted-average discount rate - finance leases | 2.50% |
Weighted-average discount rate - operating leases | 3.80% |
Lease Obligations - Summary o_3
Lease Obligations - Summary of lease related costs (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Finance lease cost: | |
Amortization of right-of-use assets | $ 273 |
Interest on lease liabilities | 20 |
Operating lease cost | 1,594 |
Short-term lease cost | 15 |
Variable lease costs | 65 |
Total lease cost | $ 1,967 |
Lease Obligations - Summary o_4
Lease Obligations - Summary of other and supplemental cash flow information related to leases (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Other information: | |
Operating cash flow from operating leases | $ 1,679 |
Right-of-use asset obtained in exchange for new operating lease obligations | $ 17,200 |
Lease Obligations - Schedule of
Lease Obligations - Schedule of future minimum lease payments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Finance Lease Obligations | ||
Remainder of 2019 | $ 889 | |
2020 | 1,185 | |
2021 | 410 | |
2022 | 0 | |
2023 | 0 | |
Thereafter | 0 | |
Total minimum lease payments | 2,484 | |
Financing component | (82) | |
Net present of minimum lease payments | 2,402 | |
Less: Current portion of financing and operating lease obligations | (1,127) | $ (1,119) |
Long-term financing and operating lease obligations | 1,275 | 1,514 |
Operating Lease Obligations | ||
Remainder of 2019 | 4,693 | |
2020 | 4,859 | |
2021 | 3,752 | |
2022 | 2,822 | |
2023 | 1,533 | |
Thereafter | 2,481 | |
Total minimum lease payments | 20,140 | |
Financing component | (4,139) | |
Net present value of minimum lease payments | 16,001 | |
Less: Current portion of financing and operating lease obligations | (4,401) | 0 |
Long-term financing and operating lease obligations | 11,600 | $ 0 |
Total Lease Obligations | ||
Remainder of 2019 | 5,582 | |
2020 | 6,044 | |
2021 | 4,162 | |
2022 | 2,822 | |
2023 | 1,533 | |
Thereafter | 2,481 | |
Total minimum lease payments | 22,624 | |
Financing component | (4,221) | |
Net present value of minimum lease payments | 18,403 | |
Less: Current portion of financing and operating lease obligations | (5,528) | |
Long-term financing and operating lease obligations | $ 12,875 |
Debt - Summary of total debt (D
Debt - Summary of total debt (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Total debt | $ 109,946 | $ 89,792 |
Less: Current portion of long-term debt | (3,742) | (3,681) |
Long-term debt | 106,204 | 86,111 |
Notes Payable to Banks [Member] | ||
Total debt | $ 30,031 | 31,486 |
Revolving Credit Facility [Member] | ||
Term (years) | 5 years | |
Total debt | $ 79,915 | 58,306 |
Equipment Note One [Member] | Notes Payable to Banks [Member] | ||
Stated Interest Rate (per annum) | 4.16% | |
Term (years) | 5 years | |
Total debt | $ 11,734 | 12,655 |
Equipment Note Two [Member] | Notes Payable to Banks [Member] | ||
Stated Interest Rate (per annum) | 4.23% | |
Term (years) | 7 years | |
Total debt | $ 11,745 | 12,279 |
Equipment Note Three [Member] | Notes Payable to Banks [Member] | ||
Stated Interest Rate (per annum) | 3.97% | |
Term (years) | 5 years | |
Total debt | $ 2,291 | 2,291 |
Equipment Note Four [Member] | Notes Payable to Banks [Member] | ||
Stated Interest Rate (per annum) | 4.02% | |
Term (years) | 7 years | |
Total debt | $ 2,313 | 2,313 |
Equipment Note Five [Member] | Notes Payable to Banks [Member] | ||
Stated Interest Rate (per annum) | 4.01% | |
Term (years) | 7 years | |
Total debt | $ 1,948 | $ 1,948 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Millions | Jun. 30, 2016USD ($) | Mar. 31, 2019USD ($)equipment-note | Dec. 31, 2018USD ($) | Sep. 28, 2018USD ($) |
Secured Debt [Member] | Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Option to increase borrowing capacity | $ 100 | |||
Maximum borrowing capacity | $ 250 | |||
Interest coverage ratio | 3 | |||
Percentage of capital stock from direct foreign subsidiaries | 65.00% | |||
Maximum acquisition consideration under credit agreement | $ 50 | |||
Deferred debt issuance costs | $ 0.6 | |||
Debt instrument covenant leveraged debt ratio restriction | 2.25 | |||
Leverage coverage ratio expansion | 3.5 | |||
Leverage coverage ratio | 3 | |||
Debt instrument term | 5 years | |||
Interest rate on borrowings outstanding | 3.51% | |||
Secured Debt [Member] | Credit Agreement [Member] | Canada, Dollars [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 50 | |||
Secured Debt [Member] | Credit Agreement [Member] | Letter of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 150 | |||
Letters of credit outstanding | $ 21.2 | $ 21.2 | ||
Secured Debt [Member] | Credit Agreement [Member] | Letter of Credit [Member] | Insurance Program Obligations [Member] | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding | 17.6 | 17.6 | ||
Secured Debt [Member] | Credit Agreement [Member] | Letter of Credit [Member] | Contract Performance Obligations [Member] | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding | $ 3.6 | $ 3.6 | ||
Secured Debt [Member] | Credit Agreement [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Commitment fee on unused capacity | 0.375% | |||
Secured Debt [Member] | Credit Agreement [Member] | Maximum [Member] | Performance letters of credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Letter of credit facility commitment percentage | 1.125% | |||
Secured Debt [Member] | Credit Agreement [Member] | Maximum [Member] | Non-performance Letters Of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Letter of credit facility commitment percentage | 2.125% | |||
Secured Debt [Member] | Credit Agreement [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin | 2.00% | |||
Secured Debt [Member] | Credit Agreement [Member] | Maximum [Member] | Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin | 1.00% | |||
Secured Debt [Member] | Credit Agreement [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Commitment fee on unused capacity | 0.20% | |||
Secured Debt [Member] | Credit Agreement [Member] | Minimum [Member] | Performance letters of credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Letter of credit facility commitment percentage | 0.625% | |||
Secured Debt [Member] | Credit Agreement [Member] | Minimum [Member] | Non-performance Letters Of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Letter of credit facility commitment percentage | 1.125% | |||
Secured Debt [Member] | Credit Agreement [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin | 1.00% | |||
Secured Debt [Member] | Credit Agreement [Member] | Minimum [Member] | Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin | 0.00% | |||
Notes Payable to Banks [Member] | Master Loan Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Number of equipment notes (equipment note) | equipment-note | 5 |
Debt - Schedule of remaining pr
Debt - Schedule of remaining principal payments for long term obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Total future principal payments | $ 109,946 | $ 89,792 |
Less: Current portion of equipment notes | (3,742) | (3,681) |
Long-term principal obligations | 106,204 | 86,111 |
Notes Payable to Banks [Member] | ||
Total future principal payments | 30,031 | $ 31,486 |
Master Loan Agreement [Member] | Notes Payable to Banks [Member] | ||
Remainder of 2019 | 2,225 | |
2020 | 3,835 | |
2021 | 3,995 | |
2022 | 4,164 | |
2023 | 7,328 | |
2024 | 1,820 | |
Thereafter | 6,664 | |
Total future principal payments | 30,031 | |
Less: Current portion of equipment notes | (3,742) | |
Long-term principal obligations | $ 26,289 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of revenue by contract type (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Amount | $ 468,094 | $ 345,611 |
Sales Revenue, Net [Member] | ||
Amount | $ 468,094 | $ 345,611 |
Percent | 100.00% | 100.00% |
Contract Type Fixed price [Member] | Sales Revenue, Net [Member] | ||
Amount | $ 267,035 | $ 168,590 |
Percent | 57.00% | 48.80% |
Contract Type Unit price [Member] | Sales Revenue, Net [Member] | ||
Amount | $ 61,182 | $ 55,326 |
Percent | 13.10% | 16.00% |
Contract Type T&E [Member] | Sales Revenue, Net [Member] | ||
Amount | $ 88,839 | $ 89,802 |
Percent | 19.00% | 26.00% |
Contract Type Other [Member] | Sales Revenue, Net [Member] | ||
Amount | $ 51,038 | $ 31,893 |
Percent | 10.90% | 9.20% |
T&D [Member] | Sales Revenue, Net [Member] | ||
Amount | $ 272,548 | $ 216,386 |
Percent | 100.00% | 100.00% |
T&D [Member] | Contract Type Fixed price [Member] | Sales Revenue, Net [Member] | ||
Amount | $ 133,324 | $ 79,435 |
Percent | 48.90% | 36.70% |
T&D [Member] | Contract Type Unit price [Member] | Sales Revenue, Net [Member] | ||
Amount | $ 51,194 | $ 45,676 |
Percent | 18.80% | 21.10% |
T&D [Member] | Contract Type T&E [Member] | Sales Revenue, Net [Member] | ||
Amount | $ 76,308 | $ 80,345 |
Percent | 28.00% | 37.10% |
T&D [Member] | Contract Type Other [Member] | Sales Revenue, Net [Member] | ||
Amount | $ 11,722 | $ 10,930 |
Percent | 4.30% | 5.10% |
C&I [Member] | Sales Revenue, Net [Member] | ||
Amount | $ 195,546 | $ 129,225 |
Percent | 100.00% | 100.00% |
C&I [Member] | Contract Type Fixed price [Member] | Sales Revenue, Net [Member] | ||
Amount | $ 133,711 | $ 89,155 |
Percent | 68.40% | 69.00% |
C&I [Member] | Contract Type Unit price [Member] | Sales Revenue, Net [Member] | ||
Amount | $ 9,988 | $ 9,650 |
Percent | 5.10% | 7.50% |
C&I [Member] | Contract Type T&E [Member] | Sales Revenue, Net [Member] | ||
Amount | $ 12,531 | $ 9,457 |
Percent | 6.40% | 7.30% |
C&I [Member] | Contract Type Other [Member] | Sales Revenue, Net [Member] | ||
Amount | $ 39,316 | $ 20,963 |
Percent | 20.10% | 16.20% |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of revenue by market type (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Amount | $ 468,094 | $ 345,611 |
Sales Revenue, Net [Member] | ||
Amount | $ 468,094 | $ 345,611 |
Percent | 100.00% | 100.00% |
T&D [Member] | Sales Revenue, Net [Member] | ||
Amount | $ 272,548 | $ 216,386 |
Percent | 100.00% | 100.00% |
T&D [Member] | Market Type Transmission [Member] | Sales Revenue, Net [Member] | ||
Amount | $ 187,765 | $ 134,452 |
Percent | 40.10% | 38.90% |
T&D [Member] | Market Type Distribution [Member] | Sales Revenue, Net [Member] | ||
Amount | $ 84,783 | $ 81,934 |
Percent | 18.10% | 23.70% |
C&I [Member] | Sales Revenue, Net [Member] | ||
Amount | $ 195,546 | $ 129,225 |
Percent | 100.00% | 100.00% |
C&I [Member] | Market Type Electrical construction [Member] | Sales Revenue, Net [Member] | ||
Amount | $ 195,546 | $ 129,225 |
Percent | 41.80% | 37.40% |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Millions | Mar. 31, 2019USD ($) |
Remaining performance obligations | $ 1,060 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of remaining performance obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Total, Remaining Performance Obligations | $ 1,060,000 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 24 months | |
Total, Remaining Performance Obligations | $ 1,062,725 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 24 months | |
Total, Remaining Performance Obligations | $ 1,056,123 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 24 months | |
Total, Remaining Performance Obligations | $ 164,056 | |
T&D [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 24 months | |
Total, Remaining Performance Obligations | $ 418,178 | |
T&D [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 24 months | |
Total, Remaining Performance Obligations | $ 398,382 | |
T&D [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 24 months | |
Total, Remaining Performance Obligations | $ 40,445 | |
C&I [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 24 months | |
Total, Remaining Performance Obligations | $ 644,547 | |
C&I [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 24 months | |
Total, Remaining Performance Obligations | $ 657,741 | |
C&I [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 24 months | |
Total, Remaining Performance Obligations | $ 123,611 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Federal statutory tax rate | 21.00% | 21.00% | |
Effective tax rate | 27.80% | 28.90% | |
Unrecognized tax benefits | $ 0.4 | $ 0.4 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Other Commitments [Line Items] | |
Purchase orders outstanding | $ 10 |
Performance Guarantee [Member] | |
Other Commitments [Line Items] | |
Bonds outstanding | 646.1 |
Estimated remaining costs for bonded projects | 320 |
Contingencies Excluding Wildfire and Health Insurance [Member] | |
Other Commitments [Line Items] | |
Insurance coverage deductible | 1 |
Wildfire [Member] | |
Other Commitments [Line Items] | |
Insurance coverage deductible | 2 |
Health Insurance [Member] | |
Other Commitments [Line Items] | |
Insurance coverage deductible | $ 0.2 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) | 3 Months Ended |
Mar. 31, 2019plan$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of equity compensation plans (plan) | plan | 2 |
Employee Stock Option [Member] | Long-Term Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares exercised (in shares) | shares | 11,465 |
Shares exercised, weighted average exercise price (in dollars shares) | $ / shares | $ 24.68 |
Restricted Awards [Member] | Long-Term Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted (in shares) | shares | 68,104 |
Shares vested (in shares) | shares | 56,912 |
Shares vested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 30.87 |
Amortization period | 3 years |
Shares granted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 33.67 |
Performance awards [Member] | Long-Term Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted (in shares) | shares | 72,932 |
Shares granted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 39.26 |
Performance awards [Member] | Long-Term Incentive Plan [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of potential target shares awarded | 0.00% |
Performance awards [Member] | Long-Term Incentive Plan [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of potential target shares awarded | 200.00% |
Market based Performance Awards [Member] | Long-Term Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Service period | 2 years 9 months 18 days |
Internal Measure based Performance Awards [Member] | Long-Term Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Service period | 2 years 9 months 18 days |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)segment | Mar. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||
Contract revenues | $ 468,094 | $ 345,611 |
Number of business segments (segment) | segment | 2 | |
C&I [Member] | ||
Segment Reporting Information [Line Items] | ||
Contract revenues | $ 195,546 | 129,225 |
C&I [Member] | CANADA | ||
Segment Reporting Information [Line Items] | ||
Contract revenues | $ 12,700 | $ 14,700 |
Segment Information - Summary o
Segment Information - Summary of segment's internal financial reports (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Contract revenues | $ 468,094 | $ 345,611 |
Income from operations | 9,626 | 8,407 |
T&D [Member] | ||
Segment Reporting Information [Line Items] | ||
Contract revenues | 272,548 | 216,386 |
Income from operations | 14,930 | 13,541 |
C&I [Member] | ||
Segment Reporting Information [Line Items] | ||
Contract revenues | 195,546 | 129,225 |
Income from operations | 5,058 | 5,336 |
General Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Income from operations | $ (10,362) | $ (10,470) |
Noncontrolling Interest - Narra
Noncontrolling Interest - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Capital contributions to joint venture | $ 0 | |
Net income attributable to noncontrolling interest | (733,000) | $ 0 |
Huen Electric Inc [Member] | ||
Distributions to partners | $ 0 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of weighted average number of common shares used to compute basic and dilute earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Net income attributable to MYR Group Inc. | $ 7,353 | $ 5,644 |
Denominator: | ||
Weighted average common shares outstanding (in shares) | 16,514 | 16,321 |
Weighted average dilutive securities (in shares) | 144 | 199 |
Weighted average common shares outstanding, diluted (in shares) | 16,658 | 16,520 |
Income per common share attributable to MYR Group Inc.: | ||
Basic (in dollars per share) | $ 0.45 | $ 0.35 |
Diluted (in dollars per share) | $ 0.44 | $ 0.34 |
Earnings Per Share - Summary _2
Earnings Per Share - Summary of shared excluded from calculation of dilute securities (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restricted stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings (in shares) | 68 | 1 |
Performance awards [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings (in shares) | 73 | 49 |