MYRG - Earnings call transcript Q1 2022

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Operator

Good morning, everyone and welcome to the MYR Group First Quarter 2022 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

Thank you and good morning, everyone. you company’s MYR XXXX, first reported welcome to conference which to yesterday. the discuss quarter like to Group the call were I’d results for

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

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

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

Rich Swartz

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

and will Operating and Betty’s questions. closing Following provide call Chief the a for Officers Cooper Group’s segments, some going open forward. opportunities discuss I T&D performance call up MYR C&I Jeff overview, Tod our and summary with your will and Waneka, of segments remarks some our for today’s of conclude

for and first efforts success. inflation the and quarter of on XXXX Group. line Strong The contributed was our focused quarter MYR top mitigation with disruptions supply momentum, good coupled of effects adverse to execution, another ongoing

and proud maintaining complex of also our a are by clients, the XXXX. revenue momentum positive healthy XXXX our projects employees. the to ability our execute our We XXXX backlog of in fueled of and wellness focus with at end environment We entered on record safety for while

a the to Our million, same in $XX.X period profit XXXX. net first quarter include revenues as and results with income gross compared along of increases of

the of relationships. business planning. and our and first at billion, quarter ongoing Each our use end customer in backlog resilience clients our data the strong we the utility supplement year, to Our of was $X.X executives reflecting survey strategy

strategic impactful in year emerged their second direction influencing the business. the of as the energy trend clean For row, a most

and our on solutions also continually clients infrastructure. a strategies. the in needs to capabilities are projects reflect strive better participants actively strengths survey Our serve and focus energy labor electrification, understand clean We them. our energy on supporting to Their and transformation the predict of participating clean spend increased responses and and align resiliency

responded and transmission, clean Our energy projects. a set T&D distribution, segment diverse including opportunities, of to

and centers. in solid segment a year steady bidding with transportation, opportunities and data Our their the healthcare, core entered C&I backlog clean markets, energy, including

to members sturdy yet delivery, committed allows coupled approach and our be with a to team Our capable us for clients. project flexible collaborative partner

Betty our quarter Now, XXXX financial on results. will provide details first

Betty Johnson

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

compared period quarter $XXX.X year. of million, representing last million to first or XXXX were same revenues increase X.X% Our $XX.X an this

a quarter an same of revenue $XXX.X for Plus the T&D breakdown an XX.X% primarily and T&D first was areas. of to in The in were including related performed revenues increase were year. revenues the in C&I due period decrease compared million first distribution X.X% certain segment Companies million and from Powerline reduction revenues segment increase compared year. primarily on revenues for revenue the T&D transmission the distribution an The work from projects. increased master geographical Our due revenues Approximately increase million, transmission period million, of last $XXX.X T&D revenues projects, revenues quarter a to incremental XX% to $XXX.X same in services to agreements. of revenues our C&I decreased last $XXX.X to under distribution.

on quarter cost pandemic, last due first order margin in some supply weather well gross chain certain margin experienced period by These and inefficiencies to favorable with favorable XX.X% caused projects. disruptions certain job also associated projects COVID-XX were as impacts gross partially and the on The projects. increases of which decreases inclement offset Our closeouts material as certain XXXX change was decrease on adjustments labor for year. net for and from compared of same XX% slight the was margin the to

the to $XX.X an Plus compared period $X was million, increase of million primarily quarter First same expenses year. Companies. SG&A increase to the last Powerline The of XXXX were acquisition due

to first Powerline the Effective first to was of tax intangibles amortization increase assets the Companies. primarily quarter certain related year. rate an $X.X with was $X.X of compared XXXX pre-tax of excess quarter of first for reduction of amortization income to the the last benefits to quarter quarter due for First same XXXX of decreased a increase for tax income compensation and XX.X% primarily the low million, The million intangible impact tax income. rate XXXX the the of stock represents compared XXXX. intangible favorable acquired impact period the effective of The from due Plus XX.X% global to tax

segments. both the higher a $XX.X million year of Total of last March to included XX, segment. Solar segment XXXX. backlog T&D Timberland First XXXX share quarter $X.X backlog XX, for our announced million March as $X.XX backlog period $X.X XX, C&I ago for per our was year. to backlog Total project related XX.X% C&I $X.X XX, of and in compared as record with T&D same approximately diluted XXXX billion of or consisted income approximately Total than XXXX and net diluted per share XXXX our $XX.X large April for billion, on or as March $X.XX our was billion highs

balance Moving approximately XX, to $XX.X $XXX.X liquidity capital, debt, sheet, our working million million March availability credit and XXXX. funded we of had facility million of $XXX.X under borrowing of in our in

will cash operations to credit and from continued March XX, that at ratio our who Transmission overview to strategies. debt of leverage facility, will EBITDA Tod We turn now enable us our has our call strong equipment will future investments, funded XXXX. & of Cooper meet believe flow to segment. the to as needs, stay and balance an provide Our capital leverage strong X.Xx working over our I Distribution growth sheet

Tod Cooper

Betty and good morning Thanks, everyone.

related as market projects segment, energy are distribution, resulted than reliability or helping in Rich found clean the to as aging Our mentioned our T&D has first clients support MYRE, such example projects of our half on than insight more transmission plan that led January, the energy. and that Incorporated. Energy as presence greater solid record multiple to Group’s infrastructure on as The execution of MYRE focus Solar acquired segment the announced in Timberland be well priorities Powerline projects early clean which of strength a T&D Canada. we on focus participants budgets Plus survey this our Companies spend EPC meet clean negotiated Businesses Solar the can quarter to our continued project at decarbonization continue award backlog of Clean system ConEdison MYR Ontario, including their energy clean earlier, of In we question in An strategic quarter. energy Energy to Services, The all expansion recently areas a infrastructure, hardening, of indicated survey. and for a and for efforts to goals.

come. in company areas, supporting work in growth We business. years into market alignment which cultural upon to They strong the to in are will the Toronto while build bring integrate are in the on to and our focusing and continuing their surrounding we presence operations

across are subsidiaries Our very U.S. busy the

several in relationship transmission beyond Eastern the and will to a of relationship Company unit focusing service with master L.E. long markets awarded noticeably, Authority continues and on Most being agreements years. extend Valley contract continues with lump-sum this a Our that held region all distribution XX Myers Tennessee active the be work. X-year price

was capitalizing expansion this Co-op. with presence awarded High opportunities. Line Sturgeon expand Our a transmission South transmission recently other new Western project In Edison region recently to awarded a region Sturgeon opportunities on services California Alaska, expanded recently in and customer Texas California Construction Electric Seward project for client, in was the its leveraging market. new into is relationships Country Southern and for Electric a

We global pressures solar economic monitor transmission markets. and to continue the affect may that

commodity While certain such impacted of and to-date, rising become been going sourcing increasingly costs may projects. the and pressures markets impact material our by these work resource difficult in could minimally has impacts forward

did tariffs, monitoring solar to Asia. application current from U.S. also are a on in of related Department imposed, the These to countries the investigation projects coming apply Southeast certain if in tariff We Commerce by certain the panels impact of

and of close We challenges. help suppliers us are customers these navigate collaboration in with market to all

industry with to the realize. discussions infrastructure starting also are Act. know will engage in Jobs We newly effect the investment our federal time to We passed in around to take customers

are years. related an now for eye of we & keeping The the industry, as a all on bill safety and energy energy call will navigate laser I the looking on will earmarked summary, outlook of However, we hardening. expanding infrastructure. see Waneka transmission purpose for quarter of project clients This with and was the forward Commercial our our strong working over focus power, while of segment. Jeff with execution. provide XXXX to vehicle our the maintaining in specifically electric grid challenges the who around may for for growth few includes to the funding the partner begin Industrial charging to and turn clean trusted a T&D investments to and includes support In within to first allow funding also industry next lines transportation,

Jeff Waneka

Thanks, Tod good everyone. and morning

wide a construction and hard of continually amidst Our inflationary changing issues clients, C&I are chain conditions. range we well segment various continues with supply industry. collaboration increased the the mitigate facing vendors economic our to perform Through and working to

discrete district projects that such services that We prior healthcare, strong fortunate food entered with to quarters, awards seen proactive meaningful offices and in resolve treatment issues. desirable in selection. are to promoting Demand first these have our our record centers, established overall minimal our discretion strong and beverage. we for markets, core water most first of our impact warehousing, performance. projects and stated relationships of resilient. are pharmaceutical communication as markets our clean pursuit in And And to book quarter, in remaining allowing early remains to We now, to-date, have include backlog the C&I added are in In and we data complex have our energy, XXXX for – a and transportation, business. quarter other

was overall are the Institute XX% over that Architectural the rebound to March expected the reported year, We coming of the are The the spike was up desire American beat that see hikes stating in overall in Index when higher XX% in interest higher. Billing March notable over index momentum Architects of could The quarter. The XXXX institutional the index pleased XX% to compared Dodge rate XXXX. Index component commercial firm’s first also was to Momentum months. the the component while increases of reflect

energy fast both the least at especially increase to in construction to the grow Clean first in also to from powered the have suggests will year transit boom forward. currently million in indexes continue electrical the need to of the of projects by XX quarter’s decade. their the with to storm modify as conversation number last car continues is EVs construction, investment funding XX,XXX of expects The much infrastructure Private as formation recently owners The centers sector to electric million country. National expand the Edison Institute for related fast Highway a electric that the drive Therefore, seek battery EEI the U.S. announced stations weather underway push corridors. roughly Jobs public coast-to-coast projects around it centers to of major along the which Electric end of travel the grapple Electric or sales the Coalition, Act. formed network in service EEI vehicles and to build support U.S. charging said in of number to X charging decade. across by the to currently dealerships end and the the the vehicles

large backlog part hot In energy added to future addition future movement, C&I portfolio. continue believe being to will to our our solar clean topic in to We and solar a be projects growth. the electric of vehicles solar projects a new our projects represent additive

many continue that civil procurement. toward of large advance also pleased are We to the projects tracking we are

the Airport subsidiary at rapid Denver Sturgeon are toward work facilities future in and an the company, our equally projects in award has As busiest International Several Electric’s grown opportunity world, expand tracking runways have third to XXXX. backlog airport upgrade and pace. for into advanced

to closing communication for Rich us help its for we the They comments. a responding customer-focused will maintain appetite we challenges position facing that and projects are your serve. we proud provide pipeline. Thanks, providing with that continue the To the of our back industry. MYR conclude, the call believe will time our I to turn some Group travel, are will unique in proactive today. populate public As employees leading markets resumes the continue to now who the will everyone transit-oriented

Rich Swartz

Tod those updates, and Betty, for you Thank Jeff.

Our our and performance relationships. the our stability core strength the of operations, our first demonstrates quarter of markets, client the depth of

MYR We resilient modernization. the on role play and electrification, grid We and our subsidiaries will in the Canada. efficient clean take infrastructure continue to transformation, pride focus in and U.S. the and building energy across Group

strong a to our partner grow Our maintain position our clients challenging market. extensive the reliable highly a and with provide foundation delivery and are team strive skilled This our dynamic the ready now a the forward our we We to questions. clients a for shareholders nimble navigating faced prospects support would yet extend for employees ahead. I MYR to Operator, I look with to up with project business you partner. a and as industry. and connecting and And to thank the be for to continued our and call in expertise in year of leader open like comments fortifies members are Group. to

Operator

from with the Your Instructions] comes Markets. Eastman Capital [Operator question line of KeyBanc first Sean

Your line is open.

Alex Dwyer

This for today. team. morning, Sean Good is Alex on

Rich Swartz

Good Alex. morning,

Alex Dwyer

it all kind So, we this have a Scotland and like at many like full have year. we seems projects the of will once, that in so contributing year large be [indiscernible]

CSI the this ramping Transmission project, California. have up in Solar East award We new in Coast ConEd the it Award Solar EPC

go? risk or And on being update provide to chain ready due all are permitting start and you issues? these generally supply any tariff just to or project So, delayed is there can projects timing staffed if on any

Rich Swartz

Okay.

a that got have lot You question. in

it, which have to So which one start – answering parts will didn’t I which remind answer. then me ones I will I you didn’t –

say at our million maybe look that Right I our affected backlog out we we I right. looked then the $XX as and are We with constant probably solutions. contact pushed that it’s as that’s now, of may all So up far come tariffs, would worth by the work to that, with discuss in with them it to if get our time, the in at backlog, so work there clients. or

is to see now still When out one take second the that this that’s But comes projects would could CSI it permitting tariffs, the the get anticipated to that much trying final is when as pushed where as ways. get project, way. So, that permitting we we that regarding that one little there a right backfilling half in year. are that of starting probably

now. great we constant And team stuff our suppliers, Is keep kind should ways are But missed? that material I part any a think that backfill of And there question address out having. at a are to when those got a projects the moving. fight I to figure I look some your facing. we it’s out that there, we doing think headwinds projects have of right We other job then to how headwinds project and build alternative is different are just

Alex Dwyer

quantify that impacts just normalized from no, the can on a C&I segment in like appreciate of No, was more running just operating be my get chain it. where material shifting inefficiencies, the to trying over labor like kind supply margins, second you a a sense answer. and really I margins and these of to the environment? I should good guess and like question

Rich Swartz

Well, we kind did upper quarter. should environment, normalized I that weather of have think said in We on have a end. be this normalized T&D

you when at So, over that where to it’s or are years, but have When the really couple I trying look chain can’t Tod the we will have really small might where the that side, where are around, it. And supply issues. and impact look we those you big. we were, at a working that. identified weather, components you then exceptional it to work let you past margins I missing and ones be It’s weather at to we get look nothing had add. and working T&D X had start you are that you has normalized daily through components It’s and

of. constant got thing be we to just it’s a aware So,

Our But minor Betty? people Tod, managing it’s job or add do impact. again, you to anything a got of a very it. good

Betty Johnson

see that is the run increase million of quarter is that’s year intangibles If in going million that’s Plus. now just margins per just out first our Powerline for mind I’ll year-over-year, But $X.X down before and mainly amortization to valuations million starting Plus which Powerline as move in you you C&I you of if ‘XX. for keeping I will statements. took we $X.X T&D we amortization this And mind in quarter to is $X.X in don’t our the on this balance have to finalize then Powerline come the add

talked margins impact C&I of margins But to So, the about without last you non-cash than actually asking Powerline. Jeff would of through even that range. in of higher been about the guess in a year T&D, final in have jobs this and being X% it margin year, the Rich anticipation and C&I as end, as overall that as X% the XXXX. working talked being jobs, year’s some amortization then those of have are C&I margins, moving the at And the in we are I Jeff the the that with we to timing. low but chain is comparable concerns be to it about to relates in then the that With this or… first for half, X%-ish supply softer lower

Jeff Waneka

side. add on components a will our it are that flow of over causes some seeing time, through and and that some little bit think material this the soon. of margins the materials on coming having larger side. what would it’s building talking that don’t of some that members on been those steel year. whether us. I material you mechanical really say, our a I your I a continuing solution anytime construction little have Yes. or haven’t are about affects add side. project. subcontractors a we But really micro minor see or the to-date the been other And or other the delays little material impacts I some last this getting affects shortage on They guess I it’s on And the team of it C&I up site, with it year. see in those early, It’s minor. with difficulties forecasted rarely minor of a bit. But And we things contractor,

market all the as our good backlog, side. job through we it and levels that enter out getting a are and at see doing we as the about year we next have we managing So, there positive a both very our year T&D on finish continuing hopefully year. again, C&I better But people and this good

Alex Dwyer

Thank you.

Operator

Alright. question And of your Justin with next line W. Baird. from the comes Hauke Robert

is line Your open.

Justin Hauke

good morning, Hi, everyone.

Rich Swartz

morning. Good

Justin Hauke

inefficiencies the Good I was guys because just different more one was question. about the on talked I my on commentary margins guess for taking sounded you projects. general question C&I it’s for – the And macro. supply T&D more XX-Q segments T&D more wanted The morning. said, labor just segment. causing the you way it the and C&I, Thanks chain, that material on certain – maybe in and

guess project something don’t curious understand, C&I and solar there I specific maybe into just where know, was is better I something I bleeding maybe to on some but that’s the So, job, it’s inefficiencies.

comment Just that? any on

Rich Swartz

Okay.

when of supply – control we we I the a On of the destiny. having a big of our do they very job that say utility, with of T&D, kind our we portion a own our strong are a the And material. lot material, done good backlog working to-date of have clients

that So, supply, it comes C&I those to of there there component when us on would say I for on a it’s our C&I materials is one side. bigger our minor. inefficiency but segment, some

So, or working a of we than it building building component a we facility. again, But on we our T&D would as are is material a more furnish side. –

our the those we and got on have – going. job add that why very the got, I we is things work we but have what material them they material And side. are a with our we disruptions exposure a of to, we little. said but it mitigating, their way other good through minor contractors a of by end will trades lower amounts any we to So, this the think big operating have margins other in really, up on C&I deal, one, work micro That’s themselves on is be that’s year them the team general some have it. then doing to if And – there order by are at those that out issues isn’t work they are the around there, to construction all, keep

Justin Hauke

Okay.

So, I get that’s helpful. it.

that are just component of a way the it’s more materials versus T&D. So, producing you

guess that $XXX million confirm So, I other in that’s XQ on that, the makes over you here plus in and that think but really one one that, the guess prior solar be segment, – I sense. because project, I just not couple the it’s was which already the I T&D said ramps just Timberland time jobs, question the to if to only C&I on just the is that here going the And window ‘XX. wanted that that in and segment. in I backlogs construction compressed I had in of that materially just see next started guess And a had should we quarters? assume pretty maybe

Rich Swartz

the is it The backlog. quarter backlog. Okay. in And first was in Timberland

the didn’t client was we out come won, till announce working they it. on with So, when but April, the announcement could that

So, quarter were some in that was do on first announce things had side there we backlog. to to But in it our order it.

year exposure talking last half about said we you one that it? announced C&I On are have it the to project, the would second

Justin Hauke

Yes. right. That’s

Rich Swartz

Yes. the one that And final right going that’s through I about now. earlier permitting still that, it’s talked

that the next first of anticipate part So, starting now we project year.

the backlog half. the it will that’s But was what come take kind fill have second said, place got of first So, as starts in in in, year to this going that other quarter. we I

Justin Hauke

Got it.

clarifying that. you you. Thank Alright. Appreciate for all have I now. That’s Okay.

Operator

And the line Stifel. of Noelle Dilts from your next comes question with

Your is line open.

Noelle Dilts

at your delays? what percentage your in they first being backlog to of my $XX waiting work determination solar until of represent in by when or work sort back into million And Rich, of pushing customers on that does the backlog? Hi. you think I the clarity is are pushing this there the impacted they wanted just that’s to work August, right, have look second, are question just is, Thanks. comment go on to solar what your Thanks. in XXXX? I initial

Rich Swartz

Okay.

never our solar itself. the We on lot with are business backlog by both it. lines do is, component associated T&D side our It’s our on have what of of disclosed sides, we a a

It’s but not done percentage never it. business. business, our XX% growing of have a we So, of our it’s

have is then So, happens at business that are we it’s been projects. built, look one Right overall. August grow panels their customer of to those the that we talked going I that to really out. it an those with go August million supplier, like they to going time and see be are long $XX timeframe. now, we more and of And hearing. to continue We will know about, decision waiting that still those on to whether on it’s it’s to what where When that we or do they make side the alternate they come slated in what

cases our the projects small with at that’s and very backlog our tariffs backlog So, have be of are any stored. very, part panels associated of in and here held have that’s that this any All lot – by already up to going the point. we other secured in a

Noelle Dilts

Right.

expand are just are is in you then while. little been could in front, hearing – Weidman around the quite hoping you a we the of on on And guess a I bit has Okay. it that folks, market and labor seeing kind supporting what than Thanks. tighter that just

seeing little bit and attract are on a expand what you labor a to maybe perspective? could you ability from Thanks. if your So, wage

Tod Cooper

start I with that, Rich. is Got will It it. tight. Yes.

of I think everyone is aware that.

one benefit, now. an Our being right that is a area in resources from where contractor less we may be move our nationwide demand can

own as I our of program. focus that. before, as But well and a So, take internal as lot a on have part programs training we apprenticeship mentioned in recruiting utilizing we are lot

people. developing We are constantly

last recruiting size alone the staff the tremendously. of We over have increased our year

not will But I there. say a started. of to challenge that our And every forward, is clients we get and we now job it’s we that. it’s demands day, out going that So, finished every it, the see met work easier have it hard and we but at going right

best doing and So, just keep we on it. the going direction that we are going in can to

Rich Swartz

would the I did that add to talked basis. past, everything in thing only regional is the a Noelle, we And we on

and have they connected U.S. people Canada. and the offices coming across projects there And projects next. to are very understand our are we those some XX out clients So, got well the and what

And I retain ones ones So, best. attract proper to fit people. to they in us are put which know amounts want the able and which chase they say to we would and

So, have are as to our really for in off burns the always with of And XX bidding backlog people take that attract of that months. because backlog. And we it’s content are we project. conversations majority those what’s that upcoming going rebuilding work, to

recruit So, able with that and we insight going to to to to people. for those and projects that, build allow take it’s what are take in retain

Noelle Dilts

Right.

Okay. Thank you.

Operator

with line Russo And of from Brian your next comes Sidoti. the question

is open. line Your

Brian Russo

Good Hi. morning.

Rich Swartz

Morning. Good

Brian Russo

Hey, the What T&D was the just to the year-over-year that? contribution increase revenue? Powerline in

Betty Johnson

Yes. about $XX million being annual business million. We U.S., $XX Powerline talked

so that a otherwise because of our it in use of But COVID run fair of events, slower was was I Canada. just including you little that But being a the unit bit we weather rate typical them business revenues. for of up rate, don’t use. quarter other first the really fairly some think separate cycle that because disclose And can run one individual a shy and as typical, that’s quarter typical to

Brian Russo

on that of the the a And discussed included project last located on the this recall, Okay, release, Coast backlog? or you press you Is first Eastern part transmission Eastern issuing quarter the great. U.S. without in I conference actually call $XXX million

Rich Swartz

Yes, it is.

Brian Russo

mitigation the mitigation on you mean mentioned of that industry to versus margins wide And C&I collaboration X% offset your X%, are kind can these in chain reported Good. elaborate issues. to – efforts what of first you some X.X% Okay. with the the to quarter? specifically supply to efforts the preserve supply I in customers

Rich Swartz

stuff some it even Sure, of and of material do to maybe there early a are will add and I we start mean I Jeff, procure vendors you suppliers store with of it in mitigation the off. very is and advance get working some – we taking the and can project

We else are that sure add Jeff, shipping deliver, out finding alternate so And especially working to to you with there, make else suppliers that? to anything and plan we case somebody that can’t in that’s the with have everything suppliers. backup. crisis want

Jeff Waneka

however are that is where things general change recover is those lot extended out. are Well, costs with we our try orders. to orders team push mean if of or And get everybody working and everything for schedules is Rich, because get our there as I pain changed facing. want delayed, to well. a mitigate there difficult contractors through the recovering also are or It to we jobs we conditions in

Rich Swartz

back would But And are the COVID to material job of to on when on done a our going reacted we are I materials sure at there. goes very good trying to And of staff, I have say started. projects it’s in that and have something kind those when look early. make front, doubled we the this that continue people logistics

news am of for it’s continue. it’s we And that to the turn done. lot new are running. we implementing I where figure all team have up we what a something are as amazed that that margins us got our at, are would to have creative they our proud headwinds But our helped can. So, I are out we and just efficiently not And with there. headwinds and be I as now. there along of day. that, projects they ways on just build it’s say every think we And maintain And

Brian Russo

But that And investigation we then the get on just development versus clarity are projects Okay. the DLC on California. working pipeline on one and the solar current developers you in commented in are the gaining investigation, are get this you – you may sensing on, the momentum year? specifically DLC the of into are XXXX that you pushed delaying until projects

Rich Swartz

it’s for hearings now set XXXX. projects very many When strong that you mean, months backlog I is for that our look I at look at When that not now, away. right August,

solar If probably anyway. starting you the project be would XXXX receive in now, it right really

see don’t holding that up. really I So,

clients say the with maybe get working be both awards because waiting, on through ahead. looking really place are even place in not and while that to sides will timely all doing are that were suppliers. and I think are ones the that everything. I for budgeting, final they we our procure on They them. takes continue work are are anxiously process and a Asian the hearing, budgeting because one little going that pricing some them material they held to up, alternates that of they to We at And those waiting in moving their with of continuing but are this they would

Brian Russo

was lastly, and the quickly cash you real how if the Betty, obviously year-over-year headwinds you playing I through just of maybe could see then the wondering, remainder out And of decrease, year? flow for Okay. operating capital comment just working on that the

Betty Johnson

say, because we QX. well flow our flow of we that the that out of income cash free the this and we growing. are various with in the as paid is $X we – – whatever as first the our quarter, on see payments that free to the level running that areas is year all, cash I’d been in low get we first mid-XXs had net higher being depending have first expect in have of of just capital that close even higher million expenditures still with those quarter, incentive cash positive free typical that Otherwise, that flow end with business the different to this our

with with free there increase there that depends there the overall, we So, qualifier timing of But a various all that to of typical often in and growth sometimes be it contracts. going working it billings see is expected different on on – my awards strong cash volume is flow. knowing capital the

Brian Russo

you Okay, much. thank very

Rich Swartz

not Bryan, think one for reasons. to in was you project said was want California want the thing I I is I just you solar pushed make for tariff permitting, that sure to clarify

Brian Russo

you. Understood. Thank

Rich Swartz

Okay.

Operator

from Jon City the question next Kansas of comes Your Instructions] Braatz [Operator with Capital. line

open. is line Your

Jon Braatz

that you bit area in bit everyone. a the the had quarter of the year? tax have rate a solar in forward? answered. going little tax see a rate relates the lower you But little Do morning, How tax just been and questions some benefit my this Most you of the Good still question to a there, benefit the of the Betty, of rate of first regarding GILTI. on see do part a on latter

Betty Johnson

on would XXXX prior That our that the using at annual it year. focused when compares this of forward and ‘XX. will first rate. average is more both stock normalized GILTI to of to the the quarter, for Most I for rates all look get going those back be a to

Jon Braatz

you much. Thank very Okay, alright.

Operator

I questions turn the to now conference would Instructions] back at showing further [Operator no Swartz. like I time. am Alright. to this Rich

Rich Swartz

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

Operator

have today’s participation a for day. and you Thank conference. wonderful Ladies concludes your this and gentlemen,

all disconnect. may You

MYR (MYRG) 28 Apr 222022 Q1 Earnings call transcript