MYRG - Earnings call 4 2023

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Operator

Good morning, everyone, and welcome to the MYR Group Fourth Quarter and Full Year 2023 Earnings Results Conference Call. [Operator Instructions] 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. I'd like to welcome you to the MYR Group conference call to discuss the company's fourth quarter and full year results for 2023, which were reported yesterday.

President call Huntington, Swartz, Chief & Senior Tod MYR Senior & today's Executive and Financial Commercial Distribution on Officer Group's Chief Cooper, Kelly Operating Operating Egan, Officer; Vice Vice President segment; us and are Group's segment. Senior President Rick Chief Officer; of Don Joining MYR Chief Vice Transmission and and Industrial President of and Officer

is and Corporate myrgroup.com. copy be not MYR webcast did available Investor MYR release, yesterday's Investors tab. will will replay days Services copy, X Also, the at a on receive XXX-XXXX, the available a the a under Group for the page Dresner call at you If please of or (XXX) press website today's of we where Relations to Group you send contact go website,

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

Richard Swartz

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

ninth Following overview, segments, a I call our a performance solid growing full high the for summary quarter remarks investment environment to MYR in the A discuss forward. the U.S. T&D XXXX some continued a with steady demands provide for today's Don electrification backlog our segment's Todd the $X.XX up healthy revenues of call record fourth Egan, your with consecutive and and billion, Kelly's Cooper Group's C&I opportunities Chief bidding will closing performance Officers conclude meet Canada. questions. We of and will and Operating in year and and finished infrastructure $X.X some the reflects and year. open of setting for financial across of then billion going

a to years, this and will of will continue XXXX they Grid strength demand the report our the partner and [indiscernible]. Group demonstrate through U.S. billion serve next for MYR the strong strive to X.X% double clients total, and report growth deep growth. nimble X.X% through demands agreements, be new a reliable XXXX expansion Our load found near-term of In Initiative, planners with XXXX, as and relationships this gigawatts accomplishments from pursuing strategically in will forecast. meet increase in multiyear the year service capturing expecting December the grid over XX $XXX Clean meet electricity to while forecast investment from X opportunities. On client to for nearly as alliance required

as exceed wastewater, chosen Initiative transportation markets, Clean care. the report increases. data to growth steady artificial opportunities including provide use to core billion our continue of Grid center centers forecast XXXX through The alone data segment, C&I health our intelligence and In alongside same $XXX

present tremendous electrical investments The our years consistent poised market chosen to Grid and execute for and made cloud success system future come. reliability projects for continue encouraging success position across to believe the opportunities are are highlight our that hardening, these infrastructure improvement, and us artificial markets success. We intelligence for hybrid bid usage opportunities modernization, environments of key we ongoing drivers for business. in to intelligently to decarbonization seek track why are and being many and greater

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

Kelly Huntington

Thank you, Rick, morning, everyone. and good

year Full EBITDA XX, and of $X.X XXXX, revenues billion. December we of ended million. reached record $XXX of net the million For year $XX annual income

XXXX high same the revenues increase of quarter year. record XX% fourth billion, were and period last to an a $X Our compared

energy distribution related increased to record segment quarter record of represent primarily projects high related year. to $XXX XX% transmission continue our and higher last C&I fourth due million, for our an $XXX T&D high higher T&D as record high year. C&I transmission, our to same compared as The on of of increase was increase clean to the for and same higher period T&D on for a projects, approximately XX% projects. revenues revenues on to to Work increased higher Service revenue. C&I for energy $XXX under compared T&D revenue performed Our revenues revenue Agreement to a due of were revenues a the XX% breakdown Master segment T&D revenue period primarily clean well were and revenue projects. an revenues million segment million, distribution. last $XXX million

weather cash backlog due and the on job quarter increase slight XX, and supply million certain caused was the the costs margin a of Fourth $XX operating starts $X Gross X.X% These margin in weather of payments quarter Net with partially compensation projects. last offset to the offset same to mainly last supply higher income which same outstanding last year. expense the $XX inclement chain XX.X% reflecting and cash cash fourth last same and inclement primarily during and the higher income XXXX project productivity were The offset year. provided by C&I XXXX same of cash was partially XXXX the compared disruptions offset margin to operating acquisition, increase costs. Fourth which a operations were our inflation by to the the the December was $XXX,XXX on labor increase year. in of rates clean caused expenses free chain also compensation increase billion, higher due flow better-than-anticipated million, $XXX compared some primarily activities an a from The flow, to period in compared same period last gross income an year. to were gross SG&A for XXXX debt to primarily related fourth and X% for an contingent the expenses rising $X as chain billion better-than-anticipated projects, and primarily impacted by was of as associated of year. The X.X% negatively weather compared Total experienced employee-related interest cash flow for The decrease energy some The was was was as was million employee $X.XX year. Fourth Total $XX timing as was per income period favorable unfavorable weather project. T&D of the primarily The flow period inefficiencies, decreases quarter was last the compared for disruptions compared same supply to Fourth productivity. C&I X.X% period by interest was fourth inflation by offset was quarter to $XX of unfavorable inefficiencies $X.XX to segment. Fourth a related and by decrease completion. with favorable operating of and margin a partially was same to due to the the inefficiencies, due for unfavorable on of Our compared job share by expense fourth XXXX XXXX X.X% for last operating our compared our period to period million and free project decrease for due XXXX, and T&D to quarter for same period of unfavorable and $XX job $XX backlog were closeouts. productivity. Fourth year. for These prior period to million and well were same balances for million of partially decreases project last margin in project incentive flow quarter margin December XXXX of increase was quarter prior by last due the year. to consisted million to closeouts. compared quarter last the expenditure. operating for segment same These labor operating and million year. the year, XXXX $X.XX last growth better-than-anticipated decreased in capital quarter million cash labor $X.XX was in associated XXXX XXXX million, were an was billings compared increase of partially of million same primarily year. $XX the net as EBITDA compared lower and period decrease $XX quarter decrease decreases XXXX, by million support diluted period decrease for closeouts. year. to for to XX, $XX to

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

opportunistically to capital We of Tod our repurchase organic will segment. pursue our Transmission strong that debt-to-EBITDA future cash of overview who XXXX. continued over maintain December credit to needs, balance will to Cooper, & have our provide believe business, as the us a turn operations ratio Distribution growth now meet an from leverage acquisitions flow support working shares. I'll funded of and of the sheet call enable our and We XX, strong X.XXx facility,

Tod Cooper

us on-time Expanding grow and long-term our proving and segment and effective. our alliance of strategically clients and good market and bidding closely quality year business clients solid again Thanks, T&D projects delivery achieved XXXX Kelly, strengthen full winning presence. with and expected everyone. helped quarter results, clients and with with once with through agreements principles The our safely our to continue fourth relationships our service and remain morning, and new master partnering existing work executing intact that and

Clean the for abundant As Grid sustained the this in believe there Rick in coming market. report forecasts growth robust we Initiative years, and mentioned, are opportunities investments

call costs, earlier insight quarter to rising strategic a conducted labor clients and of with notably solar year their our business' majority XXXX, project for of with report the increased projects, the years the completed new advance X is beginning to results. growing the work headwinds transmission financial in Initiative a the and factor inefficiencies We validates the teams over ranking mentioned of chain for will next in the survey these the continue few most solar field demand as weather, on and our Grid direction. The had our This clients fourth Our well, U.S. quarter to the that true third XX% projects Clean by these completion. be clients third of T&D our quarter. in this disruptions planning of on project build XX% on strategic anticipate we high-impact and faced the projects electrification affected supply that with along as demand low work market we respondents,

chain Wood years, over labor remains to quarter solar released their trajectory outlook insight for costs that for rising and the XXXX. and opportunities Solar third becoming growth of ability report remains outlook the period. strong less markets issues X XX% our positive annually by forecasting severe. The solar reported quarter supply fourth Energy Mackenzie Industries Association XXXX compared to an XX% average the see as execute stabilizing market the And next growth and solar over However, we

to continue the and pursue in solar monitor market. closely will opportunities strategically We

we distribution Across and lump Within accomplishments several size, projects sum in or U.S. at the distribution, have substation MSAs Canada, capacity renewed steady energy pipeline to quarter and varied transmission, of XXXX. segment, substation successful our and nice the and been and have the a work. won of continued and work. In transmission, T&D proud summary, clean complexity in a fourth we all are of securing share XXXX create

aging the segment, them a safety teams work to a into T&D focus career electrical strong as as on effort. made today. tremendous in and as entire maintained future, demand project it the forward thank my and partner execution, I the industry hard Increased us to in thousands Our on MYR positioning employees grid Don their the strong for infrastructure, is reliability Transmission projects throughout Chief legislative team what as primary and the closing, overview operational Egan I'd dynamic in our going decarbonization combined goals MYR look funding when well for with and Distribution over thank to of and down for have stepped of and positions with now excellence like our of well support remain I dedication drivers market. I'll the as all I remains Group's Operating & Officer whose long-term supporting an us and team this market Commercial success segment. In what Rick forward exciting initiatives of to segment. management our call Rick turn & an Industrial provide other and and the their and

Don Egan

Thanks, Tod, everyone. and good morning,

mitigate and and bidding execute growth, saw thanks projects healthy segment skillfully strong ability relationships inflationary our our to to steady C&I a leveraging chain and supply to Our activity headwinds. while safely continued vendor

desirable to energy capture core new centers, in transportation, care. track health and projects our and opportunities we as we increase backlog see and in clean continue markets. data Our

Sturgeon since a healthy forecasted Electric for mentioned is the manufacturing XXXX forecasts environments. centers XXX Rick facilities to XX increase Grid demand to water in we report work offer opportunities market the driven Clean of strong in while key and and of transportation pursuing exciting clean and Initiative centers load report growth As to and transit opportunities bidding growth activity care Pacific rise and California, gigawatts Canada. treatment monitor and The continue and throughout commercial is investments Outside business. A to and C&I as in commitments manufacturing CSI the XXXX, XX our the and pursue. the another energy segment pipeline of Western activity facilities significant few by that to with manufacturing year. Data seen the continues as monitor centers aligned perform Pharmaceutical this pharmaceuticals, intelligence across the data continue the across by December health executing With strong projects past from manufacturing across XXXX facilities intelligently and of forecasts service, $XXX U.S., projects the earlier, investment district addition low offices announcement centers this gigawatts long-term meet of pre-COVID-XX showing be that new facilities disruptions from with data half the to completed in the will of were during negatively projects of hybrid of cloud supply inflationary and in continued during Arizona chain had impacted found executing report Most of first additional artificial significant these quarter. found. on and projects. we've year, buying projects strengths of execute drivers demands. center Colorado. These execution core data power. allowing us are as to near-term focus strong our Through national and billion our data to healthy for preconstruction well proven backlog industrial in industrial

pursuits. collaborate We generating are additional secure core conclude, to enabling are our clients, current to markets continue client with chosen our us healthy our the additional of strength and relationships work. To

employees positions help the maintain segment to that MYR to markets Group in respond dedicated serve. continue we business our and proactive customer-facing with challenges leading communication Our to the lingering

of culture dedication, now for are closing us create. Thanks, our organizational turn their We today. the values and they I call strong back Rick, commitment will everyone, some to comments. to your who time will with provide proud the

Richard Swartz

updates, and Thank Don. those you Kelly, for Tod

business operating come reliable, and more ability across electrification our strategies the before. relationships maintain believe depend of segments. ever proud clean are industry the expand business commitment to long-term and customer than growth, our future and as for for ongoing our to sound to our is strong which on communities We principles, reflects demand increases, energy promising We our both

Vice COO employees, care is XX of for placing in contributions over I retirement transitions his to as their as like his as service and in Stern, welcome commitment result his XXXX segment. President to accomplishments for they T&D our the also Senior do. he COO of and them are would everything and Brian thank talented Tod of our company towards each and tremendous admirable, in appreciate and to years dedicated tenure Our the I also

support success each now I call to look we our for ongoing the your forward the with forward. Operator, you organization. of you ready of are and up Finally, working to commitment your and comments going to for thank questions. I open

Operator

to Hauke first of Instructions] line comes Baird. [Operator question Justin the Our with

Justin Hauke

quarter, of points. on start, of margins has the strong, in I I year, kind here gross really, theme profit all I called your certainly back here. wanted the year to the out guess, kind XXX was basis the been quarter the held was this the for and for revisions have basis as been year of XXX mean really and well the fourth projects with that in revenue points you negative

So I'm Or have ongoing an there to margin And adjustments just they these drag of how to in mean you don't we completed? kind drag are should margin through? some continue trying understand have how from profit X I about going think of I low be? that jobs guess run continuing to of 'XX? the projects much or bad

Richard Swartz

would Sure. area. that I it in think Sure. last of the majority it solar we geographic T&D X the projects about at handful really a of talked on look side, our quarter issues I on were

to have those, the our hopefully, be that our of margin think we in profile T&D said in But sure Without So the field beginning negotiate fair would on customer T&D his the to will X% margin operating -- third -- with of of agreement continue kind through the some to I quarter we second mid-range a a pressures and the end. and go the XX.X%. those will that get side. we during quarter, side end projects, Tod end of script, labor. that that, make that as We'll with with continue

near happen. completion. slight will projects that have drag as comfortable just These very these a So

on of behind look it we've kind end were basis back hopefully of year. that us. if forward On that above that that projects going that's monthly problem you a kind operating getting said, of a And quarter, have those trajectory second side, X% margin pre-COVID-awarded the really be and we'll by the projects at the to the through C&I

those So projects, in have we those we material were during did low some then quarter couple degradation had that the and of on but come -- margin a margin. on projects

for of ask by low of monthly that. quarter, margin that the to around of let stop any So on margin our I'll second profile questions the basis, a there kind and end you again, other we getting back end that see that C&I.

Justin Hauke

Yes. of No, second the growth the helpful year backlog the kind line I year. what to XX%. at back of staying for up muted the the guess, on kind here go would the to about that's on the it just of your the of part I XXXX, earnings those. think guess was I for top margins, end trying trajectory first to was expectations in half the be and the about think If it of with

this You rate. grew revenue that's long-term XX% Obviously, XX%. up year growth not -- a over sustainable

been with you going into year-over-year what think XXXX. about sustainably flat backlog you've at. now pretty can grow clear I But

think how on what top Just kind have? trends to you're about that of based you thinking for line awards the the

Richard Swartz

well mean, little clean side, people the energy we be about Very about. I look Tod like selective. some on side, second going far talked to & people single-digit good work, at positive We've being what on I do everything then we're what's be out for towards again, the on. got that market. market we're C&I at continue that that we projects. still very And and always going there side. to the a be and out some say work seen active low-margin some are year. -- weighted you prepared willing script Transmission on a think talked as day-to-day we'll year, and We've opportunities -- quarter, as still. in opportunities continue would take be got to probably what growth more selective that Don I the our we've taking little look to the But that the every I -- to on side. when Distribution of as on half about the in is then the heavy very But I see high there, And opportunities to backlog always lumpy.

Justin Hauke

kind it helpful leave at I'll modeling. Great. that. for about thinking That's of just the

Operator

the Markets. Capital from Sangita comes question KeyBanc with line next Our of Jane

Sangita Jain

the more more in any may I prepared constrained and more your supply wondering release if comments a be. of color could [panel it's and pinch of on plans was your maybe, gears just switch balance you if could from points transformers share where and chain or still] on those remarks terms that? it's I'm share color wondering if

Richard Swartz

Again, say It or I not you I the would equipment the all-time mean they're has from side talk Panels of any seem -- to about owners guess, chain. out worse I usually they supply the way. low I that affect delivery. projects slow don't improved. kind transformers that supply. of guess, getting or when lumpy-type the those, in but that be time a levelizing supply of don't in on progress come we can our they get them

and improvements seeing that on-time We're we've cases, actually in we're projects think And work. the have I the some portion that, now in equipment releasing customers are with and delivery advance seeing our previous early in not worse. for for portion can it anything about quarters, of on order that we as so material So talked side. future

that all this on impacts negative last quarter. have but some did not side, during So it

Sangita Jain

any just Great. on MSAs regulatory if of was on terms own ways? of facing That's of headwinds one up on side in if helpful. signed. they comment change you're if I utilities of seeing their follow wondering your the MSAs getting can new and I the and with rationalizing any are And the in the renewals scopes them tone MSA

Richard Swartz

the continue. positive is always that, are with work the to those far continue, to amount have they're we conversations trends our as that But very of looking as and think work and going MSAs. I at going them,

to want you We insight give? there haven't seen anybody is or back pull to any anything want add you Tod, on anything.

Tod Cooper

MSAs resources are clients really lock about today more their continues. done. And We're covered to The seeing it. get trying work use Rick, to approach. think in that this No, I you utilities

renew. been with we coming up So were able we've especially for XXXX in to several [indiscernible] excited, renewal that

So more out staying at that on But their of MSA some work to come we of to more resources. lump point, the primarily the model utilities to and see this sum front. shifting due

Operator

from Goldman of comes Sachs. Modak question Ati line with the This

Ati Modak

to see I little both T&D It help understand, allocation some of I you just very that seems if can you mentioned fragmented of nature see wanted M&A, opportunities the dig capital markets. segments towards the but to understand a end across bit to or us a the market like the and into opportunity the upside. competitive wanted seems on particular, have landscape and in is lot side you

transformative tuck-in I'm focus on what make type appetite to Or footprint? think do transactions increase to it's acquisitions. So more your your to you wondering is reasonable

Richard Swartz

For I us, at rest had acquisitions. of The XX% both. I I if that look mean, say would growth through you we XXXX, mean was organic. was XX% roughly,

had we XX% all roughly, and at year, was it organic. If last growth look you

grow again, we're I of So But And organically be we're going they shown business can I sense. that we've patient on acquisition always to think think we always acquisitions for top side. doing make opportunities. our if looking on

Ati Modak

model the looking you selective, size but XXXX? be on as of what should think mentioned then that numbers projects and the for you can today, at customer we our you're you nature about side, talk the said of you base, if the of clean would the projects the And wondering energy we

Richard Swartz

Yes.

that And And we profile pursue when we business this line, not really margin For want Again, want of do that top growing look though our at work we is sense. just to to that we we growth, forward, focus is to us, a on we it year, we day. being want and we make into on that, right this on sure see that forward. all in in, higher energy selective. growing single to make focus XX% takes before, said we'll as mind it's we're it's but go clean account. going the every don't But profitable We're overall still market, the we coming digit. that and continue it's opportunities I that really We business think our the bottom the going meet. have to and line doing that ones take and kind as of

Operator

of from Brian with This line question comes the Brophy Stifel.

Brian Brophy

Just wanted high that to mentioned. single-digit the growth you ask about

I C&I? growth to out as the versus that's think Is Or line. anything call top expect XXXX to across it will single-digit T&D them? you of on there both overall relates high for specific

Richard Swartz

Right now, sides. I would I both a clean -- both in we on energy anticipate barring or it coming something mean project side segments. I one mean, other. on the do across

[ I But you example amount in an of very matter It side where when that's of amount that the always into out work come So going one lumpy, positive and there. about Tod has. both strong. the at of could we from to on T&D opportunities heard ]. there, the But out it very are the look to and It's us Don, that really And comes doesn't where the again, very always business. awards. think be lumpy those that's on activity and

Brian Brophy

distribution Okay. in the this nature. year? may with distribution data some here thoughts seeing here? Curious that outgrow just given clean of outgrow to may from guys the XXXX, it. then heard on And transmission some things energy on what strength need or transmission centers, Any others interconnect of whether Got you that side are

Richard Swartz

don't that any to one. one have going other size the I outgrow is

couple think a a quarters. us, of given money are quarter I it's given their for during given or our spending customers where

and do MSAs have projects -- clients. of transmission we type many on of the it's we distribution our for So

[identical]. So I don't really are The care profiles where from. margin it comes almost

to we distribution and and towards transmission not we're us, heard haven't for customers So saying our spending picky, more they're date.

Operator

Brian This comes from Sidoti. with of the Russo line

Brian Russo

transmission wondering in that utilities get just terms agreements Just was seeing regulatory distribution your question. about lot of speaking, Hearing and if programs a something I you're accelerating the MSA resiliency a which, follow-up on generally that? maybe And support. good from of or outside

Tod Cooper

there been were absolutely. accelerate started they've the impacts years thereafter And or X with where then associated last and if with that. for it. trend some about during That's Yes, probably ongoing it, equipment to you the some of an X chain COVID supply think

we of we're the even it MSAs on a right or throughout back in that are distribution our period in across now, So U.S. seeing all work for that seeing come more mentioned, little do and Canada. Rick we focus stronger as

Brian Russo

far up And there's us have that to transmission of wondering Great. in voltage, high SPP, on, to as some of NYISO, were by come last on XXXX? where also XXXX mentioned at construction follow And I I are lot quarter, was but to -- multibillion-dollar XXXX over these developments that may the for just you PJM. then what a your projects bid side these positioning some projects and MISO, country, the on think of stage the you in all start actively we Okay. as planning up may basically of California, online just

Tod Cooper

Yes.

today, year stage. starting were them stages, we're I being things the the the these And negotiated streets time. for think to projects a of to in of seeing ago, bidding were we and some award talking present at advanced activity, and a still And they're and hit coming lot bid. about out they have various both but awarded

Brian Russo

you are even that to very could then your electric are top to more about guys it markets markets. than as vehicle talk end markets, end X maybe then you growth Obviously, whether pertains X others? it's there C&I. manufacturing customers? longer-term maybe on utility maybe importantly, emerging infrastructure diversified maybe more reshoring. -- in more And And some driving But point Then Great. of or terms Okay. are any

Don Egan

been about that prone Okay. end Data it that quarters. that depends and trend, as than of are a as concerned. centers, the others. take parts is of on that. far markets we've obviously big center I geographic can would -- the couple take There's area kind for country answer the a talking are to on data obviously, I of as more opportunities

a big that's So for ours. focus

forward. we're the infrastructure As amount the of long like there's news EV work that's look lots We're charging, far still about what I cars, in to that looks going and of design now of as in monitoring doing the the EV progress still information fair still a think, what term. about the, going like EV

Richard Swartz

would locations. there rail a say good other market some we've the That's at something some that's out areas. certain growing stuff front market that the That's in geographic the I on light in been Yes. of as there. out transportation

So all manufacturing I along centers that kind stuff we kind Health data would kind is continuing of to those then that see strong take tier of and doing. grow. of with side. we're top continues care the

our by always Back in it what was be that great a going opinion, see to the to electric long-term be we've vehicles XXXX. in We aren't my electrical think as vehicle a said was is slower than the business, U.S. of to XX% I build -- but anticipated. vehicles side, the going

I it's think lesser than going a amount to be that.

manageable the continue but is a to going to probably at So pace. build out, infrastructure

Brian Russo

And Great. weather. you I thoughts delayed I guys work, also you mean then emergency working on due to just it be first get even but know impact any other right. weather. do projects just storm lastly, to All the might sometimes on quarter restoration in displace storm

below country? well the thoughts your temperatures normal were given we the saw what throughout wondering Just

Richard Swartz

Yes.

to been storm on think people We date, out big I hasn't a have don't calls. storm. of lot there

areas. if had look that some individually, it you I We mean, at have some weather had geographic impact.

we had we've continue that, to anticipated. than have So better that are but some

is we've the the miles want before does to that bad I XX and X given think affect has everywhere. extremely calls, weather have projects. So apart. you really weather normal are And I it has One other one projects weather. that you how bad the talked It's don't think on

going we're really big So vary. seen again, haven't -- date, we to not storm But it can revenue. to

Operator

This Jon comes line Braatz with the of from KCCA.

Jon Braatz

Rick, that a bit those ahead. SG&A lot the expenses expenses -- maybe your But have we go growth little expenses your moderated you Obviously, have maybe Do positive, years, see over moderated. couple of you Or the in you a outlook Kelly. last opportunities you the is very think continuing? may of SG&A and the some for have forward? of to reaccelerate a do that question as

Kelly Huntington

Yes. Thanks for that question.

percentage in a If in the benefited have, near expense as we fourth the the think, I revenue low quarter. from of you in materials look, very did record strong higher revenues the SG&A saw And that quarter. we

XX we trend to at several we're capabilities over our our look And you so there. recognizing the certainly, make maybe job because that our is growth to to look longer little think last good been organic rate sure like to the at think for our of would great the said, but of don't out we've that. that's want bit than slower workforce a doing I just as continuing business, line assumption quarters, So XX months grow like our I'd a in go goal growing investing a fourth revenue we're technology, I mature after I SG&A expense to quarter growth. new in really

Jon Braatz

one Kelly, question. And other Okay.

interest Yet of quarter. sharply higher third some that for and the lower the and quarter interest at the repay on. borrowings so in account year-end at you the and of at higher lower debt than the borrowings rates year-end? quarter, mentioned were end Did your the You costs might at end the

Kelly Huntington

about a But quarter. of a stronger the debt the pay doesn't amount. did when a end debt at it of see of certainly, level that allowed way of to pretty down we're quarter in look the cash Yes. more bit quite with, at the are We fluctuation -- good some year-over-year That's end begin talking to flow a in some rates much towards to take it. the higher. us And low

and cash being rounding keep to trying driving almost pretty to we're small continuing organic we anticipation area, make numbers something So it of growth. the those business to ends on up and focused the are and in a operating levels flow low support and sure continue these debt stay

Operator

to turn no showing like the Rick further call back time. closing Swartz for now would I'm remarks. questions this I to at

Richard Swartz

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

Operator

conclude you. program. does Thank This the

You may now disconnect.

MYR (MYRG) 29 Feb 242023 Q4 Earnings call transcript