MYRG - Earnings call transcript Q4 2021

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Operator

Good morning, everyone and welcome to the MYR Group, Fourth-Quarter and full-year 2021 Earnings Results Conference Call. Today's conference is being recorded. At this time for opening remarks and introductions, I would like to turn the conference over to David Gutierrez of Dresner Corporate Services. Please go ahead, David.

David Gutierrez

Good morning, everyone. you company's MYR for fourth-quarter were yesterday. welcome to conference XXXX, to reported the discuss and like to Group the call which I'd full-year results

of Chief call and Distribution President Financial segment, Group's Transmission Senior Operating Officer, MYR Vice Waneka, Swartz, Joining Officer Senior Senior Chief are Vice Cooper, and Chief and on Betty Johnson, Jeffrey Industrial today's President us Operating and President and and segment. President Executive Tod of Officer, Vice Group's Officer Richard Commercial and Chief MYR

call If please the you Xrd, you dial at we press enter Thursday, available Investor Relations the will XXX-XXXX where did a not or XXXXXXX. receive is Tab. be Group send MYR contact XXX-XXX-XXXX, XXXX Time. Please yesterday's XX:XX Also March AM (XXX) Mountain release, copy will XXX-XXXX to Services conference ID Dresner and (XXX) today's under until a Corporate go website, our copy a at or available and of replay

any Before financial With and and measures to from actual comparable such in press These the obligation information involve statements. statements. Accordingly, yesterday's set be may XX-K measures call risks yesterday's forward-looking over me upon Swartz. the XX, update risks contain today. the in A no results information on discussed These let XXXX Group said, to forth Annual date. we Any Form non-GAAP of December non-GAAP MYR that Richard for these release. to is discussed performance. future this that call statements Group's turn no are based statements. are ended on to to the uncertainties most discussion the GAAP of reconciliation want release. And will guarantee forward-looking Certain press uncertainties such cause could year are materially in that forward-looking material company's differ the Report and statements to these statements as begin, of forward-looking MYR assumes management this you available remind I

Richard Swartz

full Thanks, David. results. conference the Good a morning, call to Financial Officer then everyone. year Welcome a turn I to and call and financial summary Chief by of operational Betty over quarter to discuss will Johnson, more and begin will results, providing fourth for year XXXX quarter fourth financial the full our detailed our review. and

call a up finished Betty's remarks Officers your for T&D open I and Following Group's billion, Waneka, forward. a call with Operating record segment, discuss of of MYR in $X.X today's a going of revenues and C&I We some closing and will XXXX Cooper questions. performance for the overview, Tod the Xth the and consecutive segments setting year. for and with strong our opportunities Chief Jeffrey summary fourth-quarter high performance, provide financial some conclude will full-year our

at $X.XX energy and of of year end us well reflects positions in the ahead. backlog continued projects, the Our XXXX investment billion infrastructure and for

in in energy, clean well wastewater to infrastructure centers, facilities. and healthcare, clean Our and investment, improving year accomplishments of in market operational energy believe high-tech We investments data by XXXX, and reflect for relationships water this positions strength fueled both and agreements. segment our long-lasting the resilience point to in energy Trends success organizational us and multiyear be to our support the C&I resiliency. manufacturing, service this continued grid continues our treatment

segment energy projects and T&D execute location, varied and substation, size, transmission, clean distribution, to of Our continues capacity.

through our and to both We continue acquisitions. grow organic growth business

presence Canada abilities our recent headquartered in Toronto new of the our execute new Eastern enhances in into to Our a and and companies, purchase capture extends projects Powerline geography.

of MYR the full growth are complex XXXX safety, for we our continually we quarter team performance, proud of maintain project of ingenuity to is continued stockholder for our expect and broad which of We to cost and members opportunities offer range to leverage our positioned as Group and fourth at clients And We passion competitiveness foundation a solutions status our a are delivery. elevate comprehensive year the future solid projects. We quality, believe leader. value. uniquely our industry to an well-positioned serve as and

Betty year on our provide fourth Now, will financial quarter details results. full and XXXX

Betty Johnson

Thank to will fourth the as you. you, our the Richard, XXXX. and everyone. I fourth XXXX reviewing results On call, quarter Thank of compared for good today's morning quarter of be quarter-over-quarter

of million. last $XXX increase period million the Our fourth compared represents This quarter X.X% or $XX XXXX revenues same were an year. to

million an to million high with for breakdown to due compared fourth Our related in was our for revenues revenue same record projects segment work T&D increase distribution. period transmission increase compared increased last to large quarter of of last million, a T&D quarter on XX.X% revenues for $XXX.X period revenues are to year. T&D The projects. $XXX.X The distribution with primarily an $XXX.X of increase our under T&D the an the $XXX.X XX% sites revenues T&D segment and and X.X% of fourth master service million C&I were revenues Approximately were year. same agreements. performed

than were on fourth project. to XX.X% Our on the change gross productivity of partially period order margin XXXX unfavorable equipment was projects for change job closeouts, projects. on same compared orders by certain on increase These The inefficiencies and XX.X% offset due an and to quarter gross labor and certain favorable improvements for adjustment primarily projects, certain favorable last was anticipated a the margin better in year.

SG&A as compensation the disruptions an to million, net quarter to negatively certain of or year. support COVID-XX billion, in in primarily the the offset year. Fourth-quarter million Total related $X.X diluted Additionally, per share the areas last to of per fourth XXXX increase period share, expenses pandemic. increase XXth, XXXX for gross backlog period in incentive geographic $XX.X operations, same in last was EBITDA during of million impacted Fourth related December period for million $XX.X employee $XX.X in compared compared $X.XX to a compared $XX.X last costs. diluted million a same to quarter $XX.X an or $X.XX partially was employee The increase $X.XX of backlog year. same XXXX due the and increase of income consisted higher was restrictions than ago. growth as high billion million million was our XXXX, T&D C&I decrease by our was and an X.X% margin a of by a record Total XXXX the for for was segment, $X.X high to $XXX.X expenses was December project and our year XXst, segment. record

companies. of mentioned earlier, Richard Xrth, Plus As Powerline we completed the acquisition on January

credit adjustments funded hand facility. and combination companies and was approximately under contingent the We borrowings $XXX on last may additional based average The which million. price cash asset pay were capital also Over combined achievements revenues of performance years, was upon annual net purchase $XX a through we our consideration Powerline the was approximately certain to million, working two targets. subject of of financial Plus and

expect of Additionally, we mainly this Powerline XXXX do intangibles high year. due EPS the companies Plus to not the amortization be to to accretive in

of Moving million in our balance under sheet; had of XXst, million XXXX. facility liquidity our capital, of credit December and to we $XXX.X as of $X.X debt, million available approximately funded borrowings $XXX.X working

strong our segment. working of operations capital growth will In gross stay flow reach the meet share, summary, and December income, We funded billion continued and this XXst, Our facility, equipment EBITDA, us net our annual us quarter to that leverage initiatives. we our future profit, strong has earnings enable to XXXX. credit ratio with and $X.X from X.XX quarter record needs, to improvements sheet, This year. as at believe debt-to-EBITDA highs leverage investments, times had to balance of both in strong revenue, revenues backlogs in C&I record per and enabled prior T&D also cash

income $XX a XXXX, million $XXX.X ended and record reached net year we of million. of record For also the December XXst, EBITDA

XXXX year. XX% call record who also per segment. overview distribution share Our to transmission of of Tod provide I'll the Cooper turn increase full an reached from over our $X.XX, earnings now prior will an and the diluted of a

Tod Cooper

morning, good everyone. And Betty. Thanks,

expand sustained infrastructure, expanding our as grid continue focused clean system that And strengthen companies are goals. meet market helping opportunities segment there developing presence. We market. and clients customer Our hardening, in continued base. in and We reliability, dynamic our we'll well are for growth abundant performed XXXX projects investing main and to decarbonization aging believe this T&D on were and energy our

strong for Their customers, new emergency to gain the future and aligned are closely especially customers customers We success. a companies to in are arises. region. look an area, ours. our MYR forward And which to build pleased welcome upon and to to surrounding the to business market the serve Powerline bring presence to in years our and culture their commitment we come companies work with in efforts Group will existing their T&D supporting to when by known supporting the Toronto we values

to Sturgeon Electric call the to XXX possible. crews Energy quickly team as help Our and effort from and underground of Xcel systems help gas the martial responding restoration safely fire customers Colorado. in electrical recently power on for restore answered tirelessly distribution as In and excess to overhead worked and members employee

We of employees a are grateful for who every dedicated day. make these all and our difference

two Tucson to Energy, Arizona Rocky our T&D Xcel maintaining supporting expanding others and Public Electric In Mountain Southern their addition Service, million own Sturgeon Power, in Power, is Edison, contracts robust with on Energy Electric and California solar is in alliance [Indiscernible], work in solar operations. EPC experienced or engineering quarter fourth of MYR engaged the additional solar also projects. and space preliminary activity multiple MYRG Services a the in

XXXX. of a is with projects T&D large MYRG's ongoing several project solar including installations. Region $XXX also Eastern approximate NextEra, Substation [Indiscernible] and work remains to late and capabilities construction with Entergy, award performs distribution XXXX continued in the presence Energy. Gateway its both The This strong which a strong and ongoing Additionally, In Project. Oncor on is million Group. Heartland of Northeast we in T&D an the business partner strong of seven of our award in increasing related are the kick recent Duke of the XXXX. off summary, its in project fourth our of proud Electric, focus expected outlook executed years the value Pike The year-end The in call project T&D project relationships the extension recently in [Indiscernible] award excited C&I a Large our industrial over in through with we maintained with and space for with the Western now [Indiscernible] Illinois, with transmission Jeffrey we had of the to executed to as in consistent two-year teams of who year In reflected multiyear Electric an for well commercial XXXX Midwest, our opportunities Myers performance for provide and accomplishments a completion with spring Projects turn and projects. team XXXX County to maintains announce and And construction project achieved four growth provide not for transmission our safety will region. energy Electric a in as of a backlog. us opportunities, recently customers, is industry many execution, the strong come. work. in which long-time will substantial are solar work Company quarter to clean L.E. in and Waneka, strong customers. the the agreements strong segment. many farm expanded completion a all I positioning

Jeffrey Waneka

you, good morning, everyone. And Tod. Thank

manufacturing, clean well year foundation water XXXX year increased energy, building captured Backlog and as Our a worked centers, we high-tech the desirable safely relationships. in performed transportation, the way as solid strong on treatment. healthcare, C&I segment we and through through water-waste projects our of data like continued

will As disruption and into our the disruptions. have the enter and believe quarter this district experienced XXXX, anticipatable C&I COVID second facing of some of several half ease of locations in year. finished We continue the of our restrictions the locations and near-term project we XXXX, district fourth increased in

the to encouraged turning the such as Index year. and architectural are the the billing see upward We throughout indices, Momentum index major Dodge

XX index the had components strongest gains index of pattern in similar and activity XX%, followed highs erratic increased commercial Although institutional momentum XX levels momentum tooth of overall, yearly Both their reaching with in soft respectively. the year the and the gains index XXXX, XXXX. since

growth XXXX December industry. monthly are January and indicative in indices Although general impressive, declines disruption impacting of in COVID was the recent

has provides While are a of that the involve a the operational complete reliable long a we opportunities the chosen our fundamental that the confidence, in to the markets indices on for more not number measure of concept projects And clients confidence typically improvements need see provide from Large from pipeline, facilities we new changed. our healthcare facility. timeline sound. based of feedback believe

services to lead security, Phase and the open many expansions are in before greenfield engagement provide the facilities. project to data have beyond. nation's awards computing continue one medium, and opportunity gone to Our confidence engaged increasing all market. district in offices future for from design power, XXXX early of pursuits to and well, for community sizes significant demand times e-commerce continue in scheduling and hits where the This majority small, construction to of new The large C&I contract. awards with especially for clients remain for growth opportunities for Clean -- centers district focus in data subsidiaries should ample our solar CSI for Nevada true projects many in districts. our and continued with Electric, projects the energy a is Electric the phase notable in long Arizona, planning our Sturgeon consume phase offices under Colorado. provide opportunity standing relationships for major two of services. Trusted High-tech leading

industry charging continued the services and we grappling the with need modernize an need to to to all-electric consistent a autonomous EV capacity or while and their stations ways. admirable. nation's facilities. and in the year attention topic provide with performance achieved employees dramatically in turn the power their across gaining networks Their hot outstanding In communication was dedication continue challenging numerous businesses will and addition, This a provided fleet. efforts conclude, momentum unique toward continue nation burgeoning increased improving throughout dealerships as by electric the be results our vehicle To the

your from back to for continue today. the to capabilities strengthen call Richard everyone closing provide fade, expected opportunity to some turn comments. headwinds the greater the As now to I'll our provide to with come. pandemic Thanks are for our years efforts us to time

Richard Swartz

Tod and you for Betty, those Jeffrey. updates Thank

clients partner fourth quarter our is grow us and which XXXX strength our Group the our Our in of to opportunities, provides demonstrates full-year and value. operations. new leading industry our foundation outstanding business, strategies the as and performance MYR provide business a recognized with capture

holds encouraged in by our market of numerous both the We are opportunities the segments.

to team like in for XXXX Our their clients coast-to-coast, to thank. of up to our you ready from with of beyond. trust I all also and would our result whom success the is now Operator, stockholders your would and our open sincerely continue XXXX forward comments our success look support. like and dedicated call ongoing I thank a I questions. talented you continued working in your extend to we're for for and to to to the

Operator

time question comment a at have you if gentlemen, and Ladies or this [Operator Instructions].

or queue yourself Instructions]. you answered the if [Operator have at been you Instructions]. has question or remove a your comment Again, time If wish question to from this [Operator

from Our first question Bank or comment comes from the line Capital. of Sean Key Eastman

Your line is open.

Alex Dwyer

Sean. Alex Hi. This for taking on questions. for our is Dwyer Thanks

Richard Swartz

Good morning.

Betty Johnson

Good morning.

Alex Dwyer

the solar cost wondering that if going risk kind give to also Can the previously you you CSI start on ramp inflation? then year. lump in But just And in this what's there's back around I'm project there the given large with of timeline on is the the any an was given that any awarded and is risks contract chain. I us supply sum, is had the October? update of half said mid-year think EPC Solar

Richard Swartz

of items there. A couple Okay.

now we all, right of would projects the hasn't say the I certain first that able in to as so proceeding So were chain project as price far components planned, that affected supply develops. and projects

don't see of a on side. we risks So that lot

date push the the Growth that side only I proceeding really point. any there's the permitting that come on a because a standpoint thing of at ground think right get That's project this off, we does -- as always from chance hitting finalized back. impacts in seen closer it's haven't place get and to you all everything could now material forward. the that the taking

Alex Dwyer

give and in do C&I, least when And anything prevent could from complete? C&I lower-margin there it. this to X% should G X% Got portfolio we projects staying range on the is you off notes update at of us MYR an that in those rolling the have midpoint the on the year? can And our achieving that

Richard Swartz

operating on been it. We've lower of side that

this in let add I'll Jeffrey second. -- and think to I a

working look coordination I out when any side it outside. really, big hasn't they're When impacts, our affected independently, to that had of haven't really project T&D because just you by delays themselves, normal projects. are the those the they're side you at COVID though think the we C&I the by business crews just get point

chains some that Some impact sub-contractors experienced supply other in and of subcontractors steel of a COVID burn. our those of a or the a little maybe revenue can has with bit which restrictions in push other on getting items slight schedule out

always at the may where but, mean, depending big given impacts quarter, little a stands means any had project more haven't you're both We time. and any positive a I on we impact write-downs negative by in have and having given a

as lower-margin those most active second anything the off, that, burning are part that into probably for far other the we but up go projects half you beginning still As will of year this finish of as some Jeffrey, an to our want than the those of add? see market.

Jeffrey Waneka

think It's see pandemic. the script latter the but half I easing answered we you those there year some still. through whole -- to impact some as it minor do Richard, in the of there's be clearly We COVID a been of there's for well. determined the hopefully lot said

Alex Dwyer

in Thanks queue. for back the help. Well, the

Richard Swartz

Okay. Thank you.

Operator

of comment Dilts or from question Corp. Stifel Noelle next the Financial from Our line comes

Your line open. is

Noelle Dilts

taking guys. at should for how missed just also and appetite Plus. about talk this this, of little And think Thanks. you point. M&A margin Hi, I profile my we Starting but thinking discuss could you extent XXXX a for about questions. on you're could Thanks Powerline the your about how

Richard Swartz

with into on M&A, liner. I'll little let start I'll Power a bit Betty. and then go I'll

a pursuing I five, last we been years win actively the for years, six few or think acquisitions. last we've

our patient. fit. right going have do to to acquisitions, cultures and an to been going organic but standpoint. from do an going to find that additive to our again, business don't We're the growing we We're going want we're to nicely to sure make be it's be it's right For us We business. We've acquisition.

patient, but again, you the Powerline in side we're a bit. little Betty, doing interested very acquisitions. So we're cover to want

Betty Johnson

the ongoing amortization about for XXXX. overall the Powerline would Excluding the one-year goes on T&D our margins not square the the any of XXXX for their being upper in Plus amortizations accretive for end T&D typical typical the for -- intangibles backlog. contribution Once a that of Hence The first normal amortization. will, be one-time solidly comment they be year for after business. a away that ranges for business, of the would in

Noelle Dilts

that you. I Okay. could heard of Thank side you some samples Perfect. discussion then to where trouble Is on guys types maybe avoid little or And that issue. action folks jumping from of to to or bit seeing are I've discuss take at to folks T&D all holding -- guess Thanks. on job. any something a of the labor having job you having experiencing those

Richard Swartz

to Tod, this? you take want

Tod Cooper

Yeah, I'll Richard. take that

There's right. years our what satisfied. But I tremendous on not to to seen takes able it and employees our I don't and competitive but are to as what's the And for range contractor we've to in ability so and and safety majority exist, any important. sure work that with benefits us you're that or have two retention move projects of exception employee big well I in competitive We're drivers in think think a Recruiting right now It's three out a a projects. that to drivers on medium-sized anyone employees so it's we've being our with the that of be think of being those had nationwide the it we as is there focus are not one constantly. amount our of over why that is training for of of being six-month does going that's downside make positive need employees. marketplace. on with want the price something large-sized the some the

at from it employees for some to of us. that sounds that jumping Our and curb least contractor, really appreciate to contractor around

Noelle Dilts

helpful. very Thanks. That's

Operator

Thank you.

& comes from question comment SIDOTI next Brian Company. of or the Our from line Russo

line Your open. is

Brian Russo

Hi. Good morning?

Richard Swartz

Morning.

Betty Johnson

Good morning.

Brian Russo

-- country You could of I maybe that segue mentioned thoughts think what is nor new located million, mice. the region project And you transmission tell any of any us in? into the guide a on $XXX award, parts

How's XX So transmission positioning investments that competitive one in by nearly future MTEP billion forecast market? of XXXX? your for XX

Tod Cooper

opportunity. U.S. I'll customers. start, with one the about It projects ability and in that. in project is us of been Richard, continue projects of springboard gives these strong the half off the we've the Eastern to on We're traditionally our forward region The the excited that on. completing

the are here time working are MISO fast things going. that. utilities situation, to in this It's out opportunities and as moving and but upcoming as of there developers to a in with come As region well projects not see monitor the certainly track in we where there the continue far we process at to couple point could years. next fruition We're that

Richard Swartz

cell side, markets that to very going thing play see it forward. we of the the future think as market On my resiliency adds just the the and I positive we of overall And in.

additive to we So again, what do.

Brian Russo

Okay, the then C&I great. switched And to to side.

the or time, general any COVID raw few first from pressures a work to any over labor Is linger through will referring material issues You from material or is restrictions the mentioned that inflationary past half separate we've inflation, limited and issues? or headwind or chain etc. that availability supply XXXX. Are COVID restrictions seen separate that years? raw you also of that the

Jeffrey Waneka

primarily that are supply Brian, these impact. COVID born issues of out are initial chain

aware here general there pursue other we job So small into little our very happening severe. and teams members when contractors and managing. out take project are to was and deal there pretty those contracts. through. impact pretty continuing have and tendency to and us -- with those to wave well of of the our account last of that. our do things teams good in we the We're But kind a they're this give see doing We're But schedules work into way issues are an that do to since and challenge do recent a have push doing

Brian Russo

it. Got

and transmission lastly margins. the Okay. on distribution And then just

the you XX.X% XX% full the on X% or of evolving above So it's margin about been end for through with the now XQ. are wondering, it kind And of year ended and mix towards the operating looks XX.X% for XQ just is margin, sustainable target? to year that level a I'm of you high the both business like

Richard Swartz

the We've end, very the our and our always One goals Since had that was good see set highlighted we set upper market we strong. advantage on there. quarters it be thing we we previous to have very to weather. in

I you more last current and little end into weather the we bit normalized the quarter, think a of if look to at been. probably little had a it's what

we're could So that not when normal this would goal we've operate through impact everything operate at upper us. that. and because upping of that margins our look that to in weather conditions about take upper side, end to the I of and point But, again, exceed XX.X we the at that else halfway margins. got to ends say But upper our is those on those year last level is adjusted or those to I goal of again,

Brian Russo

what scale markets. larger some We've in players smaller scale get you six anything bidding question. on Okay. in And type acquisitions solely on months. and to Entirely, And and stored more distribution then terms that utility just one focused last seen projects side? the competitive and nine transmission larger over of advantages on are I'm could add your by players as just curious,

Richard Swartz

us, for of projects there's any size many can't that Well, go not we after.

either have. to large we up size do projects medium, So or and we're competitive small, set as we're always very

well. productivity advantages, the same when on know we're on regional We basis is what know industry the electrical. the pure-play isn't presence, a bidding So and as in conditions. regional the this company, it as isn't We the New in We one people because operate you our we're York the Kansas, have everything takes across a so it know competitive you area that, nor our in in California same well.

do And takes what So to additive a do is areas, to estimate at profitably, those cost our then it's on it's us, to and and and for at models. sure it to it our understand wants for put We understand advantage work project. determine a us how making somebody a anything but we right. competitive come we must-win we that also business, think margin much sense don't in underbid it to and how look that's it. pretty to And look and outsets in I us, know our it's if make does cost substantially it is how it do our something as cost it fair

So business with to we those our understand in we're to a take somebody wants they're support, extend taken there things our and term, to it. into lower, consideration, project clients do business. the for long if to were and going and But going come continue grow the

Brian Russo

Thank much. great. very you Okay,

Betty Johnson

you, Thank Brian.

Operator

you question Instructions]. time, Thank at you. comment Again, [Operator have ladies and this gentlemen, if a

Our from line or comes from next question comment the of Associates. Jonathan Braatz Kansas City Capital

Your open. line is

Jonathan Braatz

everyone. morning, Good

Richard Swartz

morning. Good

Jonathan Braatz

some concert see with for opportunity rising or -- to year you the SG&A in leverage, look an through revenues? do this as there look is Betty, we spending

Betty Johnson

miniscule, leverage of changed Powerline, additional business percentage kind a the say consistent, I far we would SG&A the wouldn't it's even increases, consider percentage. as that to as -- -- have fairly not what percentage that get what to overall heading we be lower our as seeing

Jonathan Braatz

Yes.

Okay. what if the about to little at or opportunities talk be a base. to services revenue talent Maybe you Tod, that bring Richard bit you in expand can Powerline could that additional terms their might company of

Richard Swartz

take to Tod, that? you want

Tod Cooper

and gain plus [Indiscernible] overhead presence. goal their we some capital just place as now as overhead January, have. from heavy to obviously and Immediately them move ultimately, well do get that there's Right Toronto We in a on with efficiencies contractors. Richard. well to are construction. the supporting training there acquisition can strong are additional They equipment on them as underground pretty a working But and business we focused a forward. hard existing of to the things opportunity perspective right with taking now the clients there. and Sure, that the and that lot we Toronto region technology infusion expand some and with which their programs They tremendous feel some cultural alignment and is there's in of the is place in grow to

So other ultimately without possibility the of do. their we we lends types expansions have grow outside into and to throughout Ontario. business and that the But have that them going they of region that well, to try doubt, that Toronto core within we're capabilities and keep that a as to other of the and work capabilities

Richard Swartz

current their client has and And base strong good is growth their some client potential. base, or existing

expansion So talk there, side that for out and we when customers their we in room look good at the to future.

Jonathan Braatz

commercial? The Okay. And commercial. it mostly mostly is base they're client sounds like

Richard Swartz

No.

Tod Cooper

No, they're utility.

Jonathan Braatz

much. All Thank Okay. right. you so

Richard Swartz

Okay. Thank you.

Operator

you. Thank

or Our next from W. & Hauke comment comes of Robert from the line question Co. Baird Justin

Your open. line is

Justin Hauke

morning. Good Hi.

I guess to more Betty, and guys the a I your backs just amortization add Powerline that you on you in unique fact intangible amortization. GAAP Plus intangible that competitors are bit the little wanted because So report quantify

that some in much that correct points an how the first is, basis expense be then maybe through numerically impact T&D will maybe of in T&D So, line question have margin? is, segment incremental just quantify if and there much how you running can the and amortization

Betty Johnson

that cash them perspective, in That the much don't from as we And is segment will see margin, we do in the as you correct. flow our statements. the amortization segregate put that dollar amounts

last this in whatever increase it will I take amount from stating I margins the So disclose a at of T&D, point T&D stable you. take accretive dollar acquisitions time prior those. significant year's base since can't but Amortization and business running guess to their to you'd that is tell is our $XX in million see that earlier. not something be had you can't was at almost I breakeven that's I the it's enough

which haven't right our but final very two estimates even we we could haven't first assumption first in this, it is amortization, you almost all of Our year. to will as appreciate finalized close modeling, the but done the only that the is months gap break that that a into it now year, our probably

Justin Hauke

Okay.

through say, million just segment like, XX% $X I -- it's incremental So XX million that of margin, amortization in maybe revenue, runs so maybe for mean, if that

Betty Johnson

yes. that could but the side, It or even be higher on

Justin Hauke

Yes. last I And Okay. just helpful. That's -- guess question my

Betty Johnson

sure. in not first was It's like for not the it -- CSI, small year

Justin Hauke

absolutely. No, Yeah.

and being upside 'XX, be cash guess working outlook. pressured this I should little that even growth With going of in from about remains to backlog we to revenue the was question down Just is 'XX? up another the is trying your last free where XX. hopefully so year flow but flow and seeing expect just to another on free it my of a should use -- thus be in So year kind cash or capital bit that flow. cash think significantly

Betty Johnson

But growth our any Trying capital when very close comes be will assumption that happen business have. that that lines. working still on including any But through net always spend the down income be for will dollars the there contract. growth we unusual as in income, similar terms the it's in the changes to one be it is net additional to the could to without the coming need it would that globe

Justin Hauke

Yeah very much. great, all right. you Thank

Betty Johnson

business, being than in slightly has year the in it Just the Jim. capital so been from expenditures the higher growth last or

Justin Hauke

Yes. you. Yes. Thank

Operator

additional I'd no like to conference this turn sure time, to closing over in questions back any I'm Swartz Mr. Richard the queue the for Thank remarks. you. at

Richard Swartz

Tod, safe. with Jeffrey, you for conference I look working myself. further we to you and sincerely speaking forward thank on forward with the Until behalf and don't today. of stay Betty, conclude call. call I joining and then, you us again anything going our have To on next on

Operator

and This you conference. participating today's the program. gentlemen, in for concludes thank Ladies

may now Everyone, wonderful day. You have disconnect. a

MYR (MYRG) 24 Feb 222021 Q4 Earnings call transcript