High Country Line Construction, Inc.

2.On November 24, 2015, the Company acquired all of the outstanding common stock of High Country Line Construction, Inc. (“HCL”). The acquisition of HCL expands the Company’s T&D construction services, predominantly in the western United States. The preliminary acquisition date fair value of consideration transferred was $1.7 million, net of cash acquired, of which $0.5 million was preliminarily allocated to goodwill. The Company’s process of valuing the acquired assets and liabilities is in its preliminary stages. Costs of approximately $0.2 million related to the acquisition were included in selling, general and administrative expenses in the December 31, 2015 consolidated statement of operations.

3. Fair Value Measurements

The Company uses the three-tier hierarchy of fair value measurement, which prioritizes the inputs used in measuring fair value based upon their degree of availability in external active markets. These tiers include: Level 1 (the highest priority), defined as observable inputs, such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3 (the lowest priority), defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

As of March 31, 20152016 and December 31, 2014,2015, the carrying value of the Company’s cash and cash equivalents approximated fair value based on Level 1 inputs.

3.

4. Contracts in Process

The net asset position for contracts in process consisted of the following:

The net asset (liability) position for contracts in process included in the accompanying consolidated balance sheets was as follows:

4.5. Income Taxes

The difference between the U.S. federal statutory tax rate of 35% and the Company’s effective tax rates for the three months ended March 31, 20152016 and 20142015 was principally due to state income taxes.

The Company had unrecognized tax benefits of approximately $0.8 million and $0.7$0.6 million as of March 31, 20152016 and December 31, 2014, respectively,2015, which were included in other liabilities in the accompanying consolidated balance sheets.

The Company’s policy is to recognize interest and penalties related to income tax liabilities as a component of income tax expense in the consolidated statements of operations. The amount of interest and penalties charged to income tax expense because of the unrecognized tax benefits was not materialsignificant for the three months ended March 31, 20152016 and 2014.2015.

The Company is subject to taxation in various jurisdictions. The Company is subject toCompany’s tax returns for 2012 through 2014 are currently under examination by U.S. federal authorities for the openauthorities. The company’s tax years 2011 through 2013 andreturns are subject to examination by various state authorities for the years 20102011 through 2013.2014.

5.6. Commitments and Contingencies

Letters of Credit

As of March 31, 20152016, the Company had irrevocable standby letters of credit outstanding of approximately $24.3 million, including $17.6 million related to the Company’s payment obligation under its insurance programs and approximately $6.7 million related to contract performance obligations. As of December 31, 2014,2015, the Company had irrevocable standby letters of credit outstanding of approximately $19.3 million, including $17.5 million related to the Company’s payment obligation under its insurance programs and approximately $1.8 million related to contract performance obligations.

Leases

The Company leases real estate, construction equipment and office equipment under operating leases with remaining terms ranging from one to less than fivesix years. As of March 31, 2015,2016, future minimum lease payments for operating leases were as follows: $1.1$1.7 million for the remainder of 2015, $0.8 million for 2016, $0.4$1.8 million for 2017, $0.4$1.3 million for 2018, and $0.3$1.0 million for 2019.2019, $0.5 million for 2020 and $0.2 million thereafter.

Purchase Commitments for Construction Equipment

As of March 31, 2015,2016, the Company had approximately $9.7$0.6 million in outstanding purchase orders for certain construction equipment, with cash outlay requirements scheduled to occur over the next threetwo months.

Insurance and Claims Accruals

The Company carries insurance policies, which are subject to certain deductibles, for workers’ compensation, general liability, automobile liability and other coverages. The deductible per occurrence for each line of coverage is up to $1.0 million, except for certain of the Company’s health benefit plans, which are subject to a $0.1 million deductible for qualified individuals. Losses up to the deductible amounts are accrued based upon the Company’s estimates of the ultimate liability for claims reported and an estimate of claims incurred but not yet reported.

The insurance and claims accruals are based on known facts, actuarial estimates and historical trends. While recorded accruals are based on the ultimate liability, which includes amounts in excess of the deductible, a corresponding receivable for amounts in excess of the deductible is included in current assets in the consolidated balance sheets.

Performance and Payment Bonds

In certain circumstances, the Company is required to provide performance and payment bonds in connection with its future performance on certain contractual commitments. The Company has indemnified its surety for any expenses paid out under these bonds. As of March 31, 2015,2016, an aggregate of approximately $823.5$872.1 million in original face amount of bonds issued by the surety were outstanding. Our estimated remaining cost to complete these bonded projects was approximately $113.7$104.6 million as of March 31, 2015.2016.

Indemnities

From time to time, pursuant to its service arrangements, the Company indemnifies its customers for claims related to the services it provides under those service arrangements. These indemnification obligations may subject the Company to indemnity claims and liabilities and related litigation. The Company is not aware of any material unrecorded liabilities for asserted claims in connection with these indemnification obligations.

Multi-employer Pension PlansCollective Bargaining Agreements

Many of the Company’s subsidiaries’ craft labor employees are covered by collective bargaining agreements. The agreements require the subsidiaries to pay specified wages, provide certain benefits and contribute certain amounts to multi-employer pension plans. If a subsidiary withdraws from any of the multi-employer pension plans or if the plans were to otherwise become underfunded, the subsidiary could be assessedincur additional liabilities for additional contributions related to the underfunding of these plans. Although the Company has been informed that some of the multi-employer pension plans to which its subsidiaries contribute have been labeled with aclassified as “critical” status, the Company is not currently aware of any potential significant liabilities related to this issue.

Litigation and Other Legal Matters

The Company is from time-to-time party to various lawsuits, claims, and other legal proceedings that arise in the ordinary course of business. These actions typically seek, among other things, compensation for alleged personal injury, breach of contract and/or property damages, punitive damages, civil penalties or other losses, or injunctive or declaratory relief.

The Company is routinely subject to other civil claims, litigation and arbitration, and regulatory investigations arising in the ordinary course of our business as well as in respect of our divested businesses. These claims, lawsuits and other proceedings include claims related to the Company’s current services and operations, as well as our historic operations.

With respect to all such lawsuits, claims and proceedings, the Company records reserves when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. The Company does not believe that any of these proceedings, separately or in the aggregate, would be expected to have a material adverse effect on the Company’s financial position, results of operationoperations or cash flows.

In January 2013, The L. E. Myers Co. (“L. E. Myers”) was joined as a defendant inNorthern States Power Company (Wisconsin) v. The City of Ashland, Wisconsin et al., filed in the U.S. District Court for the Western District of Wisconsin. Northern States Power Company alleges that named defendants, including L. E. Myers, contributed to contamination at the Ashland Lakefront Superfund Site in Ashland, Wisconsin. Specifically, the lawsuit alleges that L. E. Myers operated a manufactured gas plant at the site for 6 to 12 years of the plant’s operation during the time frame from 1885 to 1947. In April 2015, L. E. Myers negotiated a settlement of this litigation with Northern States Power Company funded largely by L. E. Myers’ insurance carriers, with L. E. Myers’ contribution being $230,000.

6.7. Stock-Based Compensation

The Company maintains two equity compensation plans under which stock-based compensation has been granted,granted; the 2006 Stock Option Plan (the “2006 Plan”) and the 2007 Long-Term Incentive Plan, (as amended)as amended (the “LTIP”). Upon the adoption of the LTIP in 2007, awards were no longer granted under the 2006 Plan. The LTIP provides for grants of (a) incentive stock options qualified as such under U.S. federal income tax laws, (b) stock options that do not qualify as incentive stock options, (c) stock appreciation rights, (d) restricted stock awards, (e) performance awards, (f) phantom stock, (g) stock bonuses, (h) dividend equivalents, and (i) any combination of such awards.

All awards were made with an exercise price or base price, as the case may be, that was not less than the fair market value per share on the grant date. The grant date fair value of restricted stock awards and performance share awards with performance conditions not based on market conditions was equal to the closing market price of the Company’s common stock on the date of grant. The grant date fair value of performance share awards with performance conditions based on market conditions was measured using a Monte Carlo simulation model.

During the three months ended March 31, 2015,2016, plan participants exercised 108,01025,961 options with a weighted average exercise price of $5.46.$4.01.

During the three months ended March 31, 2015,2016, the Company granted 52,77369,799 shares of restricted stock, which vest ratably over the next three years, at a weighted average grant date fair value of $30.16.$24.50. Additionally, 74,42865,928 shares of restricted stock vested during the three months ended March 31, 2015,2016, at a weighted average grant date fair value of $21.74.$24.84.

During the three months ended March 31, 2015,2016, the Company granted 69,97879,661 performance shares,share awards, at target, which cliff vest on December 31, 2017.2018. The grant of performance grantshares was split evenly between performance metrics of return on invested capital (“ROIC”), an internal performance measure, and total shareholder return (“TSR”), a market performance measure.

The Company granted 45,940 ROIC-based awards, at target, on March 24, 2016 valued at $24.50, the grant date closing price of the Company’s stock. ROIC is defined as earnings before interest, net of taxes (net income plus interest, net of taxes), less any dividends, divided by stockholders’ equity plus net debt (total debt less cash and marketable securities) at the beginning of the performance period. The ROIC-based target shares awarded were valued at $30.16, which represented the closing price of the Company’s stock on the date of grant, and ROIC is measured over a three-year performance period ending December 31, 2017.

The Company granted 33,721 TSR-based awards, at target, on March 24, 2016. TSR is defined as the change in the fair market value, adjusted for dividends, of a company’s stock. The TSR of the Company’s stock will be compared to the TSR of a peer group of companies defined at the time of the grant. The TSR awards are calculated using the average stock price of the 20 trading days prior to January 1, 2015March 24, 2016 and compared to the average stock price of the 20 trading days prior to December 31, 2017.2018. Because TSR is a market-based performance metric, the Company used a Monte Carlo simulation model to calculate the fair value of the grant, which resulted in a fair value of $47.24$33.35 per share.award.

7.8. Segment Information

MYR Group is a specialty contractor serving the electrical infrastructure market.market in the United States and parts of Canada. The Company has two reporting segments, each a separate operating segment, which are referred to as T&D and C&I. Performance measurement and resource allocation for the reporting segments are based on many factors. The primary financial measures used to evaluate the segment information are contract revenues and income from operations, excluding general corporate expenses. General corporate expenses include corporate facility and staffing costs, which includes safety, professional fees, management fees, and intangible amortization. The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.2015.

Transmission and Distribution: The T&D segment provides a broad range of services on electric transmission and distribution networks and substation facilities, which include design, engineering, procurement, construction, upgrade, and maintenance and repair services, with a particular focus on construction, maintenance and repair. T&D services include the construction and maintenance of high voltage transmission lines, substations and lower voltage underground and overhead distribution systems. The T&D segment also provides emergency restoration services in response to hurricane, ice or other storm-related damage. T&D customers include electricinvestor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners and private developers.other contractors.

Commercial and Industrial: The C&I segment provides services such as the design, installation, maintenance and repair of commercial and industrial wiring, installation of traffic networks and the installation of bridge, roadway and tunnel lighting. Typical C&I contracts cover electrical contracting services for airports, hospitals, data centers, hotels, stadiums, convention centers, manufacturing plants, processing facilities, waste-water treatment facilities, mining facilities and transportation control and management systems. C&I segment services are generally performed in the western and northeastern United States.

The information in the following table was derived from internal financial reports used for corporate management purposes:

8.For the three months ended March 31, 2016, contract revenues attributable to the Company’s Canadian operations were $1.2 million, predominantly in the T&D segment.

9. Earnings Per Share

The Company computes earnings per share using the treasury stock method unless the two-class method is more dilutive. The Company computed earnings per share for the three months ended March 31, 2016 using the treasury stock method. Under the treasury stock method, basic earnings per share are computed by dividing net income available to shareholders by the weighted average number of common shares outstanding during the period, and diluted earnings per share are computed by dividing net income available to shareholders by the weighted average number of common shares outstanding during the period plus all potentially dilutive common stock equivalents, except in cases where the effect of the common stock equivalent would be anti-dilutive.

For the three months ended March 31, 2015, the Company computed earnings per share using the two-class method because that method resulted in a more dilutive effect than the treasury stock method. The two-class method is an earnings allocation formula that determines earnings per share for common stock and participating securities according to dividends declared and participation rights in undistributed earnings, when thatearnings. Under the two-class method, results in a more dilutive effect than the treasury method. The Company’s unvested grants of restricted stock granted prior to 2014 containthat contained non-forfeitable rights to dividends should any be declared, and arewere treated as participating securities and included in the computation of earnings per share.

The restricted shares granted after 2013 contain a provision making the payment of dividends contingent upon vesting of the shares. These shares are not participating shares because any accumulated unvested dividends are forfeited, along with the shares, if the awards fail to vest. These non-participating shares arewere excluded from the computation of net income allocated tobasic and diluted earnings per share. All shares of restricted stock granted since 2013 are not participating securities inbecause the table below, but are included ingrant agreements contain provisions that dividends, if declared, will be forfeited if the computation of weighted average dilutive securities, unless their inclusion would be anti-dilutive.grantee leaves the Company before the stock is vested.

Net income available to common shareholders and the weighted average number of common shares used to compute basic and diluted earnings per share was as follows:

For the three month periods ended March 31, 20152016 and 2014,2015, certain common stock equivalents were excluded from the calculation of dilutive securities because their inclusion would either have been anti-dilutive or, for stock options, the exercise prices of those stock options were greater than the average market price of the Company’s common stock for the period. All of the Company’s non-participating unvested restricted shares were included in the computation of weighted average dilutive securities. The following table summarizes the shares of common stock underlying the Company’s unvested stock options and performance awards that were excluded from the calculation of dilutive securities:

Share Repurchases

On February 10, 2016, the Company’s Board of Directors approved an amended share repurchase program (“Repurchase Program”), which increased the Repurchase Program from $67.5 million to $142.5 million, extended the term of the Repurchase Program through April 30, 2017 and revised provisions of the Repurchase Program to enable the Company to accelerate the pace of share repurchases. During the three months ended March 31, 2015,2016, the Company repurchased 118,6131,225,753 shares of its common stock at a weighted-average price of $26.49$22.42 per share, 72,706share; 1,192,116 of those shares were purchased under its $25.0 million stock repurchase program (the “Repurchase Program”), which expires August 31, 2015,Repurchase Program, for approximately $1.8$26.7 million. Additionally, the Company repurchased 45,90733,637 shares of stock, for approximately $1.3$0.8 million, from its employees to satisfy tax obligations on shares vested under the LTIP program. All of the shares repurchased were retired and returned to authorized but unissued stock.

9. Subsequent Event10. Capital Leases

On April 13, 2015,The Company leases vehicles and certain equipment under capital leases. The economic substance of the leases is a financing transaction for acquisition of the vehicles and equipment, and accordingly, the leases are recorded as assets and liabilities. Included in depreciation expense is amortization of vehicles and equipment held under capital leases, amortized over their useful lives on a straight-line basis.

In March, 2016 the Company acquired substantially allentered into master leasing arrangements for vehicles and construction equipment. Some of the assetsleases entered into under these agreements met the accounting requirements to be recorded as capital leases. As a result, $0.7 million was included in property and equipment, net of E.S. Boulosaccumulated depreciation and $0.1 million and $0.6 million were recorded in current maturities of long-term debt and long-term debt, net of current maturities, respectively. As of March 31, 2016 the Company (“ESB”), onehad approximately $6.8 million of New England’s largest and most experienced electrical contractors with over 95 years in operation, fromoutstanding commitments under its master lease agreements.

The following is a subsidiary of Eversource Energy. The purchase price was approximately $11.4 million, which was funded through existing cash resourcesschedule by year of the Company.future minimum lease payments required under capital leases together with their present value as of March 31, 2016:

Headquartered in Westbrook, Maine, ESB offers construction capabilities for the Company’s T&D segment, including substation, transmission and distribution construction. ESB also brings extensive experience providing commercial and industrial electrical construction for the Company’s C&I segment, including a wide range of commercial electrical construction services.

ITEM 2.                MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the accompanying unaudited consolidated financial statements as of March 31, 20152016 and December 31, 2014,2015, and for the three months ended March 31, 20152016 and 2014,2015, and with our Annual Report on Form 10-K for the year ended December 31, 20142015 (the “2014“2015 Annual Report”). In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from management’s expectations. Factors that could cause such differences are discussed herein under the captions “Cautionary Statement Concerning Forward-Looking Statements and Information” and “Risk Factors,” as well as in the 20142015 Annual Report. We assume no obligation to update any of these forward-looking statements.

Overview and Outlook

We are a leading specialty contractor serving the electrical infrastructure market.market throughout the United States. We also have operations in parts of Canada. We manage and report our operations through two industry segments: T&D and C&I. We have operated in the T&D industry since 1891. We are one of the largest national contractors servicing the T&D sector of the electric utility industry in the United States, and our customers include many of the leading companies in the electric industry. We provide C&I electrical contracting services to facility owners and general contractors generally in the western and northeastern United States since.States. We have operated in the C&I industry since 1912. We strive to maintain our status as a preferred provider to our T&D and C&I customers.

We had consolidated revenues for the three months ended March 31, 20152016 of $244.1$253.6 million, of which 77.5%72.1% was attributable to our T&D customers and 22.5%27.9% was attributable to our C&I customers. Our consolidated revenues for the three months ended March 31, 20142015 were $215.6$244.1 million. For the three months ended March 31, 2015,2016, our net income and EBITDA (1) were $7.2$2.0 million and $20.5$13.3 million, respectively, compared to $6.3$7.2 million and $18.2$20.5 million, respectively, for the three months ended March 31, 2014. Our financial results for the three months ended March 31, 2015 benefited from margin adjustments due to change orders and close-outs. It is unlikely that future periods will benefit to a similar extent from such favorable developments.2015.

Our results have been driven primarily by successful bidding and execution of projects, our ability to capitalize on increased infrastructure spending in our markets and the breadth of our customer base. Our business is directly impacted by the level of spending on T&D infrastructure and C&I construction activity throughout the markets we serve. We believe our transmission customers remain committed to the expansion and strengthening of their transmission infrastructure, with planning, engineering and funding for many of their projects in place. Although competition remains strong, we see these as positive factors for us in the future. We believe our skilled workforce and centralized fleet provide us with a competitive advantage. We expect bidding activity to remain strong forin both our T&D and C&I segments for the remainder of 2015; however,2016 and 2017. Although competition forremains strong in our T&D segment, we expect that our centralized fleet and skilled workforce will continue to benefit us in securing and executing profitable projects. The sizes of the T&D projects we are currently performing are generally smaller and of shorter duration than those experienced a few years ago. These smaller, shorter duration projects often result in lower margins because of greater competition, reduced fleet utilization rates and the cost of transitioning from project to project. While the transmission projects continuesbeing bid this year represent a good mix of projects, including a number of larger, longer duration projects, there is often a significant lag from when a project is awarded to pressurewhen the revenues and costs are recognized. Several of the recently bid larger, longer-duration projects contain a higher percentage of material and subcontractor costs when compared to recent history and we typically add less mark-up to material and subcontractor costs in our bid estimates than the mark-up applied to our labor and owned equipment. This could lead to lower overall margins depending on our awarded portfolio of work. Additionally, competition, project execution, adverse weather and project delays, among other factors, have impacted our margins in some parts of the country.past and could affect our margins in the future. Spending by clients on their distribution systems appears to be generally improving; however, this spending can be highly variable from quarter to quarter in response to weather, client budget constraints and regulatory pressures. Contract margins and fleet billing rates are generally lower in our distribution business than what we realize in our transmission business.

Our futureThe C&I segment continues to benefit from robust bidding activity and we continue to explore further expansion into new markets. The C&I segment, in part due to intense competition, has not provided overall contract margin opportunities comparable to our T&D segment.

In 2015, we began to implement a three-pronged strategy of organic growth, may be organic, or throughstrategic acquisitions or joint ventures that we expect could improve our competitive position within our existing markets orfurther expand our geographic footprint.capabilities and prudent capital returns as further detailed below.

Organic Growth In 2015, we expanded our operations, opening six new offices in the United States located in California, Kansas, Colorado, Nevada, Texas and Washington State. We also opened two offices in Canada and began work on our first major project award in Canada. We continue to look for opportunities to expand our operations into new markets in the United States and Canada.

A few of our new organic growth initiatives are getting off the ground slower than expected due to the timing of contract awards and penetration of the new market. This resulted in uncovered fixed costs in the first three months ended March 31, 2016. Despite slower starts in these markets, we believe that this strategy to grow the business will result in positive growth and enhance shareholder value.

Strategic Acquisitions On April 13, 2015, we acquired substantially all of the assets of E.S. Boulos Company, which will enhanceenhances our T&D presence in the northeast U.S.United States and further expandexpands our C&I presence outsideinto the northeast. On November 24, 2015, the Company acquired all of the outstanding common stock of High Country Line Construction, Inc., which enhances our existing markets.T&D presence, predominantly in the western United States. We continue to review biddinglook for acquisition opportunities in Canadathat are compatible with our culture while enhancing shareholder value.

Prudent Capital ReturnsIn February 2016, we increased the share Repurchase Program by $75.0 million to $142.5 million, extended the Repurchase Program until April 30, 2017 and believerevised provisions of the economic environment in Canada could present favorable T&D biddingRepurchase Program to enable us to accelerate the pace of share repurchases. Additionally, we updated our capital allocation strategy, reducing future capital spending while expanding our fleet through alternative financing approaches, such as leasing. In March of 2016, we entered into master lease arrangements and have begun to lease vehicles and equipment under these arrangements. We continue to look for opportunities in 2015. to improve our resource allocation to enhance shareholder value.

We continue to invest in developing key management and craft personnel in both our T&D and C&I markets and in procuring the specialty equipment and tooling needed to win and execute projects of all sizes and complexity. We ended the first quarter of 2015 in a strong financial position, which included2016 with cash and cash equivalents of $61.8$26.0 million, no outstanding funded debt and availability of $155.7$150.7 million under our credit facility. We believe that our financial position and operational strengths will enable us to manage the current challenges and uncertainties in the markets we serve and give us the flexibility for further strategic investments.to successfully execute our three-pronged strategy.

Backlog

We define backlog as our estimated revenue on uncompleted contracts, including the amount of revenue on contracts for which work has not begun, less the revenue we have recognized under such contracts. A customer’s intention to award us work under a fixed-price contract is not included in backlog unless there is an actual award to perform a specific scope of work at specific terms and pricing. For many of our unit-price, time-and-equipment, time-and-materials and cost plus contracts, we only include projected revenue for a three-month period in the calculation of backlog, although these types of contracts are generally awarded as part of MSAsmaster service agreements that typically have a one-year to three-year duration from execution. Backlog may not accurately represent the revenues that we expect to realize during any particular period. Several factors such as the timing of contract awards, the type and duration of contracts, and the mix of subcontractor and material costs in our projects can impact our backlog at any point in time. Some of our revenue does not appear in our periodic backlog reporting because the award of the project, as well as the execution of the work, may all take place within the period. Our backlog only includes projects that have a signed contract or an agreed upon work order to perform work on mutually accepted terms and conditions. Backlog should not be relied upon as a stand-alone indicator of future events.

Our backlog was $434.8 million at March 31, 2016 compared to $450.9 million at December 31, 2015 and $398.4 million at March 31, 2015 compared to $433.6 million at December 31, 2014 and $385.6 million at March 31, 2014.2015. Our backlog at March 31, 20152016 decreased $35.2$16.1 million or 8.1%3.6% from December 31, 2014 due to completion of work during the quarter that was not replaced.2015. Backlog in the T&D segment decreased $44.8$30.0 million and C&I backlog increased $9.5$13.9 million compared to December 31, 2014.2015.

The following table summarizes that amount of our backlog that we believe to be firm as of the dates shown and the amount of our current backlog that we reasonably estimate will not be recognized within the next twelve months:

Project Bonding Requirements

A substantial portion of our business requires performance and payment bonds or other means of financial assurance to secure contractual performance. These bonds are typically issued at the face value of the contract awarded. If we fail to perform or pay our subcontractors or vendors, the customer may demand that the surety provide services or make payments under the bond. In such a case, we would likely be required to reimburse the surety for any expenses or outlays it incurs. To date, we have not been required to make any reimbursements to our surety for claims against the surety bonds. As of March 31, 2015,2016, we had approximately $823.5$872.1 million in original face amount of surety bonds outstanding. Our estimated remaining cost to complete these bonded projects was approximately $113.7$104.6 million as of March 31, 2015.2016.

Consolidated Results of Operations

The following table sets forth selected consolidated statements of operations data and such data as a percentage of revenues for the periodperiods indicated:

Three Months Ended March 31, 20152016 Compared to Three Months Ended March 31, 20142015

Revenues. Revenues increased $28.5$9.5 million, or 13.2%3.9%, to $253.6 million for the three months ended March 31, 2016 from $244.1 million for the three months ended March 31, 2015 from $215.6 million2015. The increase was primarily due to higher C&I revenue.

Gross margin. Gross margin decreased to 10.8% for the three months ended March 31, 2014.2016 from 12.0% for the three months ended March 31, 2015. The increaseyear-over-year decline in gross margin was primarily due to higher T&D revenues fromfavorable closeouts on several large projects in the first three months of 2015. Our gross margin has been lower in recent quarters primarily due to lower bid margins caused by increased competition in many of our markets and an increase in shorter duration jobs of all sizes. Material(which affects labor productivity, mobilization costs and subcontractor costs comprised approximately 27% and 26% of total contract costsdemobilization costs). Additionally, in the three months ended March 31, 20152016, certain jobs underperformed due to labor productivity below previous estimates and 2014,unfavorable weather conditions in certain markets. Changes in estimates of gross profit on certain projects resulted in a gross margin decrease of 0.6% and an increase of 1.5% for the three months ended March 31, 2016 and 2015, respectively.

Gross profit. Gross profit increased $2.3decreased $2.1 million, or 8.5%7.1%, to $27.3 million for the three months ended March 31, 2016 from $29.4 million for the three months ended March 31, 2015, from $27.1 million for the three months ended March 31, 2014, due to higher revenues. Gross margin decreased to 12.0% for the three months ended March 31, 2015 from 12.6% for the three months ended March 31, 2014. The decline in gross margin was primarily due to lower equipment utilization, particularly large specialty transmission equipment, as several large transmission projects were substantially complete or nearing completion and lower storm revenues. In the three months ended March 31, 2015 and 2014overall gross margin, benefitedpartially offset by approximately 1.5% and 1.7%, respectively, from improved contract margins on several projects, primarily transmission projects, due to cost efficiencies, additional work and effective contract management.higher revenue.

Selling, general and administrative expenses. Selling, general and administrative expenses, which were $23.9 million for the three months ended March 31, 2016, increased $5.3 million from $18.6 million for the three months ended March 31, 2015, increased $1.7 million from $16.9 million for the three months ended March 31, 2014.2015. The year-over-year increase in selling, general and administrative expenses for the three months ended March 31, 2015 as compared to the three months ended March 31, 2014 was primarily due to $3.3 million of costs associated with our expansion into new geographic markets, higher personnelpayroll costs to support operations, ESB acquisition$1.0 million associated with activist investor activities and higher medical claims costs, partially offset by lower bonus, profit sharing and higher stock compensation costs. As a percentage of revenues, selling, general and administrative expenses decreasedincreased to 9.4% for the three months ended March 31, 2016 from 7.6% for the three months ended March 31, 2015 from 7.9% for the three months ended March 31, 2014.2015.

Gain on sale of property and equipment. Gains from the sale of property and equipment in the three months ended March 31, 20152016 were $0.1 million compared to $0.9 million. There were no material gains or losses on the sale of property and equipmentmillion in the three months ended March 31, 2014.2015. Gains from the sale of property and equipment are attributable to routine sales of property and equipment no longer useful or valuable to our ongoing operations.

Interest expense. Interest expense was $0.2 million for the three month periods ended March 31, 20152016 and 2014.2015.

Provision for income taxes. The provision for income taxes was $1.2 million for the three months ended March 31, 2016, with an effective tax rate of 38.6%, compared to a provision of $4.2 million for the three months ended March 31, 2015, with an effective tax rate of 36.9%, compared to a provision of $3.7 million for the three months ended March 31, 2014, with an effective tax rate of 37.3%. The decreaseincrease in the effective rate was primarily caused by the year to date impact of lower state taxes due todomestic activities deductions and changes in the mix of business between states.

Net income. Net income increaseddecreased to $2.0 million for the three months ended March 31, 2016 from $7.2 million for the three months ended March 31, 2015 from $6.3 million for the three months ended March 31, 2014.2015. The increasedecrease was primarily for the reasons stated earlier.

Segment Results

The following table sets forth, for the periods indicated, statements of operations data by segment, segment net sales as percentage of total net sales and segment operating income as a percentage of segment net sales:

Transmission & Distribution

Revenues for our T&D segment for the three months ended March 31, 20152016 were $189.2$183.0 million compared to $162.0$189.2 million for the three months ended March 31, 2014, an increase2015, a decrease of $27.2$6.2 million, or 16.8%3.3%. The increasedecrease in revenue was primarily due to an increasea decline in the number of jobs of all sizes. Material and subcontractor costs in our T&D segment comprised approximately 23% of total contract costs in the three months ended March 31, 2015, compared to approximately 20% in the three months ended March 31, 2014.revenue from large, multi-year transmission projects.

Revenues from transmission projects represented 78.2%77.2% and 82.8%78.2% of T&D segment revenue for the three months ended March 31, 20152016 and 2014,2015, respectively. Additionally, for the three months ended March 31, 2015,2016, measured by revenue in our T&D segment, we provided 49.1%55.1% of our T&D services under fixed-price contracts, as compared to 49.3%49.1% for the three months ended March 31, 2014.2015.

Operating income for our T&D segment for the three months ended March 31, 20152016 was $16.8$10.7 million, an increasea decrease of $2.8$6.1 million from the three months ended March 31, 2014. Operating2015. The year-over-year decline in operating income increased for ourwas primarily due to favorable closeouts on several large, multi-year transmission projects in the first three months of 2015. In recent quarters, the T&D segment forexperienced lower bid margins caused by increased competition in many of our markets, an increase in the number of shorter duration projects (which affects labor productivity, mobilization costs and demobilization costs. Additionally, in the three months ended March 31, 2015 compared to 2014 primarily2016, certain jobs underperformed due to higher revenues partially offset by lower equipment utilization, particularly large specialty transmission equipment, as several large transmission projects are substantially complete or nearing completionlabor productivity below previous estimates and lower storm revenues.unfavorable weather conditions in certain markets.We also experienced incremental costs associated with the expansion into new geographic markets. As a percentage of revenues, operating income for our T&D segment was 5.8% for the three months ended March 31, 2016 compared to 8.9% for the three months ended March 31, 2015 compared to 8.6% for the three months ended March 31, 2014.2015.

Commercial & Industrial

Revenues for our C&I segment for the three months ended March 31, 20152016 were $54.9$70.7 million compared to $53.6$54.9 million for the three months ended March 31, 2014,2015, an increase of $1.3$15.7 million or 2.5%. Material28.6%, due primarily organic and subcontractor costs in our C&I segment comprised approximately 41% of total contract costs in the three months ended March 31, 2015, compared to approximately 47% in the three months ended March 31, 2014.acquisitive expansion into new markets.

Measured by revenue in our C&I segment, we provided 67.9%71.3% of our services under fixed-price contracts for the three months ended March 31, 2015,2016, compared to 42.9%67.9% in the three months ended March 31, 2014.2015.

Operating income for our C&I segment for the three months ended March 31, 20152016 was $2.8$2.2 million, a decrease of $0.6 million over the three months ended March 31, 2014.2015. The year-over-year decline in operating income compared to the three months ended March 31, 2014 was primarily attributable to lower bid margins caused by increased competition in many of our markets, productivity below estimates on certain jobs and costs on one large projectassociated with expansion into new geographic markets, partially offset by increased margins on other projects.higher revenues. As a percentage of revenues, operating income for our C&I segment was 3.1% for the three months ended March 31, 2016 compared to 5.2% for the three months ended March 31, 2015 compared to 6.3% for the three months ended March 31, 2014.2015.

Non-GAAP Measure—EBITDA

EBITDA, a performance measure used by management, is defined as net income plus: interest income and expense, provision for income taxes and depreciation and amortization, as shown in the following table. EBITDA, a non-GAAP financial measure, does not purport to be an alternative to net income as a measure of operating performance or to net cash flows provided by operating activities as a measure of liquidity. Because not all companies use identical calculations, this presentation of EBITDA may not be comparable to other similarly-titled measures of other companies. We use, and we believe investors benefit from the presentation of, EBITDA in evaluating our operating performance because it provides us and our investors with an additional tool to compare our operating performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our core operations. We believe that EBITDA is useful to investors and other external users of our financial statements in evaluating our operating performance and cash flow because EBITDA is widely used by investors to measure a company’s operating performance without regard to items such as interest expense, taxes, depreciation and amortization, which can vary substantially from company to company depending upon accounting methods and book value of assets, book lives placed on assets, capital structure and the method by which assets were acquired.

Using EBITDA as a performance measure has material limitations as compared to net income, or other financial measures as defined under U.S. GAAP as it excludes certain recurring items, which may be meaningful to investors. EBITDA excludes interest expense or interest income; however, as we have borrowed money in order to finance transactions and operations, or invested available cash to generate interest income, interest expense and interest income are elements of our cost structure and can affect our ability to generate revenue and returns for our stockholders. Further, EBITDA excludes depreciation and amortization; however, as we use capital and intangible assets to generate revenues, depreciation and amortization are a necessary element of our costs and ability to generate revenue. Finally, EBITDA excludes income taxes; however, as we are organized as a corporation, the payment of taxes is a necessary element of our operations. As a result of these exclusions from EBITDA, any measure that excludes interest expense, interest income, depreciation and amortization and income taxes has material limitations as compared to net income. When using EBITDA as a performance measure, management compensates for these limitations by comparing EBITDA to net income in each period, to allow for the comparison of the performance of the underlying core operations with the overall performance of the company on a full-cost, after tax basis. Using both EBITDA and net income to evaluate the business allows management and investors to (a) assess our relative performance against our competitors, and (b) monitor our capacity to generate returns for our stockholders.

The following table provides a reconciliation of net income to EBITDA:

We also use EBITDA as a liquidity measure. We believe that EBITDA is important in analyzing our liquidity because it is a key component of certain material covenants contained within our credit agreement (the “Credit Agreement”). Non-compliance with these financial covenants under the Credit Agreement—our interest coverage ratio and our leverage ratio—could result in our lenders requiring us to immediately repay all amounts borrowed. If we anticipated a potential covenant violation, we would seek relief from our lenders, likely causing us to incur additional cost, and such relief might not be available, or if available, might not be on terms as favorable as those in the Credit Agreement. In addition, if we cannot satisfy these financial covenants, we would be prohibited under the Credit Agreement from engaging in certain activities, such as incurring additional indebtedness, making certain payments, and acquiring or disposing of assets. Based on the information above, management believes that the presentation of EBITDA as a liquidity measure is useful to investors and relevant to their assessment of our capacity to service or incur debt, fund capital expenditures, finance acquisitions and expand our operations.

The following table provides a reconciliation of EBITDA to net cash flows provided by operating activities:

Liquidity and Capital Resources

As of March 31, 2015,2016, we had cash and cash equivalents of $61.8$26.0 million and working capital of $141.4$106.3 million. We define working capital as current assets less current liabilities. During the three months ended March 31, 2015, consolidated2016, operating activities of our business provided net cash of $1.4$14.4 million, compared to $9.0$1.4 million of cash usedprovided in the three months ended March 31, 2014.2015. Cash flow from operations is primarily influenced by demand for our services, operating margins, timing of contract performance and the type of services we provide to our customers. In the three months ended March 31, 2015, we used net cash in investing activities of $15.4 million, consisting of $16.3 million for capital expenditures, partially offset by $0.9 million of proceeds from the sale of equipment. Financing activities in the first three months of 2015 used $1.8 million of cash compared to $0.7 million of cash used in the first three months of 2014. In the first three months of 2015, $3.1 million of cash was used to purchase shares of our common stock, which was partially offset by proceeds from stock options and tax benefits related to our stock compensation programs. The $3.1 million of cash used to purchase shares of our common stock consisted of $1.8 million purchased under our Repurchase Program and $1.3 million to purchase shares surrendered by employees to satisfy employee tax obligations under our stock compensation program.

The changes in various working capital accounts (such as: accounts receivable, including retention; costs and estimated earnings in excess of billings on uncompleted contracts; accounts payable; and billings in excess of costs and estimated earnings on uncompleted contracts) are due to normalboth the volume and timing fluctuations in our operating activities.of work performed, the mix of the types of projects and customers and their varying billing requirements as well as settlements of payables and other obligations. In particular, the gross amount of accounts receivable, net, costs and estimated earnings in excess of billings on uncompleted contracts, accounts payable and billings in excess of costs and estimated earnings on uncompleted contracts used cash of $18.6$1.6 million in the three months ended March 31, 2016, a year-over-year decline in cash used of $22.2 million compared to the $23.8 million of cash used in the three months ended March 31, 2015.

Accounts receivable, which provided $14.4 million in cash in the three months ended March 31, 2016 compared to $1.4 million provided in the three months ended March 31, 2015, accounted for a $13.0 million year-over-year increase in cash provided as a result of improved collections due to improvements in billing procedures for several of our new clients in the three months ended March 31, 2016. Billings in excess of costs and estimated earnings on uncompleted contracts, which provided $4.0 million in cash in the three months ended March 31, 2016 and used $5.1 million in the three months ended March 31, 2015, comparedaccounted for a $9.1 million year-over-year change in cash used as a result of the contractual billing terms of our contracts. The improvements in these working capital components were partially offset by a decline in other liabilities due to usingthe timing of payments and lower net income.

In the three months ended March 31, 2016, we used net cash in investing activities of $2.7 million, consisting of $3.7 million for capital expenditures, partially offset by $1.0 million of proceeds from the sale of equipment.

In the three months ended March 31, 2016, we used net cash of $25.4 million in financing activities, consisting of $25.7 million of cash used to purchase shares of our common stock, which was partially offset by proceeds from stock options and tax benefits related to our stock compensation programs. The $25.7 million of cash used to purchase shares of our common stock consisted of $24.9 million purchased under our Repurchase Program and $0.8 million to purchase shares surrendered by employees to satisfy employee tax obligations under our stock compensation program. On February 10, 2016, our Board of Directors approved an amended Repurchase Program, which increased the same periodprogram from $67.5 million to $142.5 million, extended the term of 2014, a year-over-year decreasethe program through April 30, 2017 and revised provisions of $6.8 million. In addition, higher net income and depreciation contributedthe Repurchase Program to higher cash provided by operating activities in three months endedenable the us to accelerate the pace of share repurchases. As of March 31, 2015 compared2016, we had $73.1 million of remaining availability to three months ended March 31, 2014.purchase shares under the Repurchase Program.

We anticipate that our cash and cash equivalents on hand, $155.7$150.7 million borrowing availability under our credit facility, and future cash flow from operations will provide sufficient cash to enable us to meet our future operating needs, debt service requirements, capital expenditures, acquisition and joint venture opportunities, and share purchases under our Repurchase Program. We expect that our capital spending in 20152016 will be similar to our capital spending inlower than the last two years.few years as we look to finance our fleet through an increased use of alternative financing approaches, such as leasing. Although we believe that we have adequate cash and availability under our credit agreement to meet our liquidity needs, any large projects or acquisitions may require additional capital.

The Company has not historically paid dividends and currently does not expect to pay dividends.

Debt Instruments

On December 21, 2011, we entered into a five-year syndicated credit agreement (the “Credit Agreement”)Credit Agreement with a facility of $175.0 million (the “Facility”). The entire Facility is available for revolving loans and the issuance of letters of credit and up to $25.0 million is available for swingline loans. We have the option to increase the commitments under the Facility or enter into incremental term loans, subject to certain conditions, by up to an additional $75.0 million upon receipt of additional commitments from new or existing lenders. We are currently in discussions to amend and extend, or replace, the Facility.

Revolving loans under the Facility bear interest, at our option, at either (1) ABR, which is the greatest of the Prime Rate, the Federal Funds Effective Rate plus 0.50% or adjusted LIBOR plus 1.00%, plus in each case an applicable margin ranging from 0.00% to 1.00%; or (2) adjusted LIBOR plus an applicable margin ranging from 1.00% to 2.00%. The applicable margin is determined based on our Leverage Ratio, defined under the Credit Agreement as consolidated total indebtedness divided by consolidated EBITDA, as defined by the Credit Agreement. Letters of credit issued under the Facility are subject to a letter of credit fee of 1.00% to 2.00%, based on our Leverage Ratio and a fronting fee of 0.125%. Swingline loans bear interest at the ABR Rate. We are required to pay a 0.2% commitment fee on the unused portion of the Facility.

Subject to certain exceptions, the Facility is secured by substantially all of our assets and the assets of all of our subsidiaries and by a pledge of all of the capital stock of our subsidiaries. Our subsidiaries also guarantee the repayment of all amounts due under the Facility. The Credit Agreement provides for customary events of default. If an event of default occurs and is continuing, on the terms and subject to the conditions set forth in the Credit Agreement, amounts outstanding under the Facility may be accelerated and may become or be declared immediately due and payable.

Under the Credit Agreement, we are subject to certain financial covenants and must maintain a maximum Leverage Ratio of 3.0,and a minimum interest coverage ratio of 3.0, defined under the Credit Agreement as Consolidated EBITDA divided by interest expense. We were in compliance with all of our debt covenants at March 31, 2015.2016. The Credit Agreement also contains a number of covenants including limitations on asset sales, investments, indebtedness and liens.

As of March 31, 20152016 and December 31, 2014,2015, we had no debt outstanding. As of March 31, 2015outstanding and December 31, 2014, we had irrevocable standby letters of credit outstanding of approximately $19.3$24.3 million, including $17.5$17.6 million related to our payment obligation under our insurance programs and approximately $1.8$6.7 million related to contract performance obligations.

Off-Balance Sheet Transactions

As is common in our industry, we enter into certain off-balance sheet arrangements in the ordinary course of business that result in risks not directly reflected on our balance sheets. Our significant off-balance sheet transactions such as liabilities associated with non-cancelable operating leases, letter of credit obligations and surety guarantees could be entered into in the normal course of business. We have not engaged in any off-balance sheet financing arrangements through special purpose entities.

For a discussion regarding off-balance sheet transactions, refer to Note 5,6, “Commitments and Contingencies” in the accompanying Notes to Consolidated Financial Statements.

Concentration of Credit Risk

We grant trade credit under normal payment terms, generally without collateral, to our customers, which include high credit quality electric utilities, governmental entities, general contractors and builders, owners and managers of commercial and industrial properties located in the United States. Consequently, we are subject to potential credit risk related to changes in business and economic factors throughout the United States. However, we generally have certain statutory lien rights with respect to services provided. Under certain circumstances such as foreclosures or negotiated settlements, we may take title to the underlying assets in lieu of cash in settlement of receivables. As of March 31, 2015, no2016, one customer individually exceeded 10.0% of consolidated accounts receivable with approximately 17.8% of the total consolidated accounts receivable amount (excluding the impact of allowance for doubtful accounts). As of March 31, 2014, one customer2015, no customers individually exceeded 10.0% of consolidated accounts receivable with approximately 16.3% of the total consolidated accounts receivable amount (excluding the impact of allowance for doubtful accounts). Management believes the terms and conditions in its contracts, billing and collection policies are adequate to minimize the potential credit risk.

New Accounting Pronouncements

For a discussion regarding new accounting pronouncements, please refer to Note 1.1, “Organization, Business and Basis of Presentation—Recently Issued Accounting Pronouncements” in the accompanying Notes to Consolidated Financial Statements.

Critical Accounting Policies

The discussion and analysis of our financial condition and results of operations are based on our consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities known to exist at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. We evaluate our estimates on an ongoing basis, based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. There can be no assurance that actual results will not differ from those estimates. For further information regarding our critical accounting policies and estimates, please refer to Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies” included in our 20142015 Annual Report.

Cautionary Statement Concerning Forward-Looking Statements and Information

We are including the following discussion to inform you of some of the risks and uncertainties that can affect our company and to take advantage of the protections for forward-looking statements that applicable federal securities law affords.

Various statements containedStatements in this Quarterly Report on Form 10-Q are “forward-looking statements”contain various forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 (the “Securities Act”) and Section 21E of the Securities Exchange Act. Forward-lookingAct of 1934 (the “Exchange Act”), which represent our beliefs and assumptions concerning future events. When used in this document and in documents incorporated by reference, forward looking statements include, those that express a belief, expectationwithout limitation, statements regarding financial forecasts or intention, as well as thoseprojections, and our expectations, beliefs, intentions or future strategies that are not statements of historical fact, and may include projections and estimates concerningsignified by the timing and success of specific projects and our future revenue, income, backlog, liquidity, capital spending and investments. The forward-looking statements in this quarterly report on Form 10-Q are generally accompanied by words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “objective,” “outlook,” “plan,” “project,” “likely,” “unlikely,” “possible,” “potential,” “should” or other words that convey the uncertainty of future events or outcomes. The forward-lookingforward looking statements in this quarterly report on Form 10-Q speak only as of the date of this quarterly report on Form 10-Q and are based on our current expectations and assumptions about future events, including with respect to expected growth, results of operations, performance, business prospects and opportunities and effective tax rates. These statements do not guarantee future performance and actual results may differ materially from these statements.10-Q. We disclaim any obligation to update these statements unless(unless required by securities laws,laws), and we caution you not to rely on them unduly. We have based these forward looking statements on our current expectations and assumptions about future events. While our management considerswe consider these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict, and many of which are beyond our control. These and other important factors, including those discussed under the caption “Forward-Looking Statements” and in Item 1A “Risk Factors” in our 20142015 Annual Report, and in any risk factors or cautionary statements contained in our other filings with the Securities and Exchange Commission, may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements.

These risks, contingencies and uncertainties include, but are not limited to, the following:

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As of March 31, 2015,2016, we were not party to any derivative instruments. We did not use any material derivative financial instruments during the three months ended March 31, 20152016 and 2014,2015, including trading or speculation on changes in interest rates or commodity prices of materials used in our business.

As of March 31, 2015,2016, we had no borrowings outstanding under the Credit Facility. Borrowings under the Credit Facility are based upon an interest rate that will vary depending upon the prime rate, federal funds rate and LIBOR. If we had borrowings outstanding under the Credit Facility and if the prime rate, federal funds rate or LIBOR increased, our interest payment obligations on outstanding borrowings would increase and have a negative effect on our cash flow and financial condition. We currently do not maintain any hedging contracts that would limit our exposure to variable rates of interest when we have outstanding borrowings.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Under the supervision, and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures pursuant to Exchange Act Rules 13a-15(e) and 15d-15(e) as of the end of the period covered by this quarterly report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of March 31, 2015.2016.

Changes in Internal Control Over Financial Reporting

During the period covered by this report, there were no changes in our internal control over financial reporting that have materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting.

PART II.—II—OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

For further discussion regarding legal proceedings, please refer to Note 5,6, “Commitments and Contingencies—Litigation and Other Legal Matters” in the accompanying Notes to Consolidated Financial Statements.

ITEM 1A. RISK FACTORS

As of the date of this filing, there have been no material changes to the risk factors previously discussed in Item 1A to our 20142015 Annual Report. An investment in our common stock involves various risks. When considering an investment in our company, you should carefully consider all of the risk factors described in our 20142015 Annual Report. These risks and uncertainties are not the only ones facing us and there may be additional matters that are not known to us or that we currently consider immaterial. These risks and uncertainties could adversely affect our business, financial condition or future results and, thus, the value of our common stock and any investment in our company.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Purchases of Common Stock. The following table includes all of the Company’s repurchases of common stock for the periods shown, including those made pursuant to publicly announced plans or programs and those not made pursuant to publicly announced plans or programs. Repurchased shares are retired and returned to authorized but unissued common stock.