Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 23, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 1-08325 | ||
Entity Registrant Name | MYR GROUP INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 36-3158643 | ||
Entity Address, Address Line One | 12121 Grant Street, Suite 610 | ||
Entity Address, City or Town | Thornton, | ||
Entity Address, State or Province | CO | ||
Entity Address, Postal Zip Code | 80241 | ||
City Area Code | 303 | ||
Local Phone Number | 286-8000 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | MYRG | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,910 | ||
Entity Common Stock, Shares Outstanding (in shares) | 16,739,341 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement to be filed with the Securities and Exchange Commission (the “SEC”) in connection with its 2024 annual meeting of shareholders expected to be held on April 24, 2024, are incorporated into Part III hereof. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000700923 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Crowe LLP |
Auditor Location | Oak Brook, Illinois |
Auditor Firm ID | 173 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 24,899 | $ 51,040 |
Accounts receivable, net of allowances of $1,987 and $2,073, respectively | 521,893 | 472,543 |
Contract assets, net of allowances of $610 and $499, respectively | 420,616 | 300,615 |
Current portion of receivable for insurance claims in excess of deductibles | 8,267 | 9,325 |
Refundable income taxes | 4,034 | 8,944 |
Prepaid expenses and other current assets | 46,535 | 47,824 |
Total current assets | 1,026,244 | 890,291 |
Property and equipment, net of accumulated depreciation of $380,465 and $351,753, respectively | 268,978 | 233,175 |
Operating lease right-of-use assets | 35,012 | 30,544 |
Goodwill | 116,953 | 115,847 |
Intangible assets, net of accumulated amortization of $30,534 and $25,439, respectively | 83,516 | 87,557 |
Receivable for insurance claims in excess of deductibles | 33,739 | 34,210 |
Investment in joint venture | 8,707 | 3,697 |
Other assets | 5,597 | 3,537 |
Total assets | 1,578,746 | 1,398,858 |
Current liabilities | ||
Current portion of long-term debt | 7,053 | 5,074 |
Current portion of operating lease obligations | 9,237 | 9,711 |
Current portion of finance lease obligations | 2,039 | 1,127 |
Accounts payable | 359,363 | 315,323 |
Contract liabilities | 240,411 | 227,055 |
Current portion of accrued self-insurance | 28,269 | 28,752 |
Accrued income taxes | 237 | 0 |
Other current liabilities | 100,593 | 79,918 |
Total current liabilities | 747,202 | 666,960 |
Deferred income tax liabilities | 48,230 | 45,775 |
Long-term debt | 29,188 | 35,479 |
Accrued self-insurance | 51,796 | 51,287 |
Operating lease obligations, net of current maturities | 25,775 | 20,845 |
Finance lease obligations, net of current maturities | 314 | 2,313 |
Other liabilities | 25,039 | 15,999 |
Total liabilities | 927,544 | 838,658 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Preferred stock – $0.01 par value per share; 4,000,000 authorized shares; none issued and outstanding at December 31, 2023 and December 31, 2022 | 0 | 0 |
Common stock – $0.01 par value per share; 100,000,000 authorized shares; 16,684,492 and 16,563,767 shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively | 167 | 165 |
Additional paid-in capital | 162,386 | 161,427 |
Accumulated other comprehensive loss | (3,880) | (6,300) |
Retained earnings | 492,529 | 404,908 |
Total shareholders’ equity | 651,202 | 560,200 |
Total liabilities and shareholders’ equity | $ 1,578,746 | $ 1,398,858 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 1,987 | $ 2,073 |
Contract assets, allowance | 610 | 499 |
Property and equipment, accumulated depreciation | 380,465 | 351,753 |
Intangible assets, accumulated amortization | $ 30,534 | $ 25,439 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 4,000,000 | 4,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 16,684,492 | 16,563,767 |
Common stock, shares outstanding (in shares) | 16,684,492 | 16,563,767 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Contract revenues | $ 3,643,905 | $ 3,008,542 | $ 2,498,289 |
Contract costs | 3,279,508 | 2,664,580 | 2,173,308 |
Gross profit | 364,397 | 343,962 | 324,981 |
Selling, general and administrative expenses | 234,611 | 222,424 | 207,208 |
Amortization of intangible assets | 4,907 | 9,009 | 2,311 |
Gain on sale of property and equipment | (4,214) | (2,378) | (3,098) |
Income from operations | 129,093 | 114,907 | 118,560 |
Other income (expense): | |||
Interest income | 888 | 187 | 70 |
Interest expense | (4,939) | (3,563) | (1,799) |
Other income (expense), net | (38) | 2,673 | (525) |
Income before provision for income taxes | 125,004 | 114,204 | 116,306 |
Income tax expense | 34,014 | 30,823 | 31,300 |
Net income | 90,990 | 83,381 | 85,006 |
Less: net loss attributable to noncontrolling interest | 0 | 0 | (4) |
Net income attributable to MYR Group Inc. | $ 90,990 | $ 83,381 | $ 85,010 |
Income per common share attributable to MYR Group Inc.: | |||
Basic (in dollars per share) | $ 5.45 | $ 4.98 | $ 5.05 |
Diluted (in dollars per share) | $ 5.40 | $ 4.91 | $ 4.95 |
Weighted average number of common shares and potential common shares outstanding: | |||
Basic (in shares) | 16,682 | 16,760 | 16,838 |
Diluted (in shares) | 16,837 | 16,980 | 17,161 |
Net income | $ 90,990 | $ 83,381 | $ 85,006 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | 2,420 | (6,473) | 150 |
Other comprehensive income (loss) | 2,420 | (6,473) | 150 |
Total comprehensive income | 93,410 | 76,908 | 85,156 |
Less: net loss attributable to noncontrolling interest | 0 | 0 | (4) |
Total comprehensive income attributable to MYR Group Inc. | $ 93,410 | $ 76,908 | $ 85,160 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | MYR Group Inc. Shareholders’ Equity | Noncontrolling Interest |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Total shareholders’ equity | $ 429,292 | $ 0 | $ 167 | $ 158,618 | $ 23 | $ 270,480 | $ 429,288 | $ 4 |
Balance, beginning of period at Dec. 31, 2020 | 429,292 | 0 | $ 167 | 158,618 | 23 | 270,480 | 429,288 | 4 |
Balance, beginning of period (in shares) at Dec. 31, 2020 | 16,734,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 85,006 | 85,010 | 85,010 | (4) | ||||
Stock issued under compensation plans, net (in shares) | 187,000 | |||||||
Stock issued under compensation plans, net | 498 | $ 2 | 496 | 498 | ||||
Stock-based compensation expense | 7,496 | 7,496 | 7,496 | |||||
Shares repurchased related to tax withholding for stock-based compensation (in shares) | (51,000) | |||||||
Shares repurchased related to tax withholding for stock-based compensation | (3,352) | $ (1) | (2,868) | (483) | (3,352) | |||
Other comprehensive income (loss) | 150 | 150 | 150 | |||||
Stock issued - other (in shares) | 1,000 | |||||||
Stock issued – other | 12 | 12 | 12 | |||||
Balance, end of period at Dec. 31, 2021 | 519,102 | 0 | $ 168 | 163,754 | 173 | 355,007 | 519,102 | 0 |
Balance, end of period (in shares) at Dec. 31, 2021 | 16,871,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Total shareholders’ equity | 519,102 | 0 | $ 168 | 163,754 | 173 | 355,007 | 519,102 | 0 |
Net income | 83,381 | 83,381 | 83,381 | |||||
Stock issued under compensation plans, net (in shares) | 204,000 | |||||||
Stock issued under compensation plans, net | 40 | $ 2 | 38 | 40 | ||||
Stock-based compensation expense | $ 7,922 | 7,922 | 7,922 | |||||
Shares repurchased related to tax withholding for stock-based compensation (in shares) | (68,675) | (69,000) | ||||||
Shares repurchased related to tax withholding for stock-based compensation | $ (6,791) | (6,124) | (667) | (6,791) | ||||
Settlement of stock repurchase program (in shares) | (442,000) | |||||||
Settlement of stock repurchase program | (36,981) | $ (5) | (4,163) | (32,813) | (36,981) | |||
Other comprehensive income (loss) | (6,473) | (6,473) | (6,473) | |||||
Balance, end of period at Dec. 31, 2022 | 560,200 | 0 | $ 165 | 161,427 | (6,300) | 404,908 | 560,200 | 0 |
Balance, end of period (in shares) at Dec. 31, 2022 | 16,564,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Total shareholders’ equity | 560,200 | 0 | $ 165 | 161,427 | (6,300) | 404,908 | 560,200 | 0 |
Net income | 90,990 | 90,990 | 90,990 | |||||
Stock issued under compensation plans, net (in shares) | 222,000 | |||||||
Stock issued under compensation plans, net | 20 | $ 2 | 18 | 20 | ||||
Stock-based compensation expense | $ 8,376 | 8,376 | 8,376 | |||||
Shares repurchased related to tax withholding for stock-based compensation (in shares) | (76,150) | (76,000) | ||||||
Shares repurchased related to tax withholding for stock-based compensation | $ (7,936) | (7,194) | (742) | (7,936) | ||||
Settlement of stock repurchase program (in shares) | (25,042) | (26,000) | ||||||
Settlement of stock repurchase program | $ (2,868) | (241) | (2,627) | (2,868) | ||||
Other comprehensive income (loss) | 2,420 | 2,420 | 2,420 | |||||
Balance, end of period at Dec. 31, 2023 | 651,202 | 0 | $ 167 | 162,386 | (3,880) | 492,529 | 651,202 | 0 |
Balance, end of period (in shares) at Dec. 31, 2023 | 16,684,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Total shareholders’ equity | $ 651,202 | $ 0 | $ 167 | $ 162,386 | $ (3,880) | $ 492,529 | $ 651,202 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 90,990 | $ 83,381 | $ 85,006 |
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||
Depreciation and amortization of property and equipment | 54,231 | 49,161 | 43,894 |
Amortization of intangible assets | 4,907 | 9,009 | 2,311 |
Stock-based compensation expense | 8,376 | 7,922 | 7,496 |
Deferred income taxes | 2,056 | 9,573 | 6,281 |
Gain on sale of property and equipment | (4,214) | (2,378) | (3,098) |
Other non-cash items | 96 | 2,294 | 1,892 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (48,527) | (86,939) | 10,659 |
Contract assets, net | (119,246) | (64,421) | (39,266) |
Receivable for insurance claims in excess of deductibles | 1,529 | (14) | (4,619) |
Prepaid expenses and other assets | 560 | 1,640 | (25,320) |
Accounts payable | 37,250 | 109,008 | 34,348 |
Contract liabilities | 13,151 | 58,001 | 9,573 |
Accrued self-insurance | 17 | 4,999 | 5,233 |
Other liabilities | 29,840 | (13,752) | 2,838 |
Net cash flows provided by operating activities | 71,016 | 167,484 | 137,228 |
Cash flows from investing activities: | |||
Proceeds from sale of property and equipment | 5,608 | 1,990 | 3,062 |
Cash paid for acquisitions, net of cash acquired | 0 | (110,660) | 0 |
Purchases of property and equipment | (84,736) | (77,056) | (52,361) |
Net cash flows used in investing activities | (79,128) | (185,726) | (49,299) |
Cash flows from financing activities: | |||
Borrowings under revolving lines of credit | 562,901 | 198,697 | 0 |
Repayments under revolving lines of credit | (562,615) | (185,782) | 0 |
Payment of principal obligations under equipment notes | (4,598) | (1,047) | (24,917) |
Payment of principal obligations under finance leases | (1,143) | (1,592) | (336) |
Borrowings under equipment notes | 0 | 24,184 | 0 |
Proceeds from exercise of stock options | 20 | 40 | 498 |
Debt refinancing costs | (2,129) | 0 | 0 |
Repurchase of common stock | (2,868) | (36,981) | 0 |
Payments related to tax withholding for stock-based compensation | (7,936) | (6,791) | (3,352) |
Other financing activities | 0 | 0 | 12 |
Net cash flows used in financing activities | (18,368) | (9,272) | (28,095) |
Effect of exchange rate changes on cash | 339 | (3,538) | (410) |
Net increase (decrease) in cash and cash equivalents | (26,141) | (31,052) | 59,424 |
Cash and cash equivalents: | |||
Beginning of period | 51,040 | 82,092 | 22,668 |
End of period | 24,899 | 51,040 | 82,092 |
Cash paid during the period for: | |||
Income taxes payments | 23,949 | 20,462 | 30,009 |
Interest payments | 4,145 | 2,736 | 1,444 |
Noncash investing activities: | |||
Acquisition of property and equipment for which payment is pending | $ 8,474 | $ 2,218 | $ 4,120 |
Organization, Business and Sign
Organization, Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Business and Significant Accounting Policies | Organization, Business and Significant Accounting Policies Organization and Business MYR Group Inc. (the “Company”) is a holding company of specialty electrical construction service providers conducting operations through wholly-owned subsidiaries. The Company performs construction services in two business segments: Transmission and Distribution (“T&D”) and Commercial and Industrial (“C&I”). T&D customers include investor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners and other contractors. T&D provides a broad range of services on electric transmission, distribution networks, substation facilities, clean energy projects and electric vehicle charging infrastructure. T&D services include design, engineering, procurement, construction, upgrade, maintenance and repair services. C&I customers include general contractors, commercial and industrial facility owners, government agencies and developers. C&I provides a broad range of services, which include design, installation, maintenance and repair of commercial and industrial wiring. Typical C&I contracts cover electrical contracting services for airports, hospitals, data centers, hotels, stadiums, commercial and industrial facilities, clean energy projects, manufacturing plants, processing facilities, water/waste-water treatment facilities, mining facilities, intelligent transportation systems, roadway lighting, signalization and electric vehicle charging infrastructure. Significant Accounting Policies Consolidation The accompanying Financial Statements include the results of operations of the Company and its subsidiaries. Significant intercompany transactions and balances have been eliminated. Certain reclassifications were made to prior year amounts to conform to the current year presentation. Revenue Recognition The Company recognizes revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for goods or services provided. Revenue associated with contracts with customers is recognized over time as the Company’s performance creates or enhances customer-controlled assets or creates or enhances an asset with no alternative use, for which the Company has an enforceable right to receive compensation as defined under the contract. To determine the amount of revenue to recognize over time, the Company estimates profit by determining the difference between total estimated revenue and total estimated cost of a contract. In addition, the Company estimates a cost accrual every quarter that represents unbilled invoicing activity for services performed by subcontractors and suppliers during the quarter, and estimates revenue from the contract cost portion of this accrual based on current gross margin rates to be consistent with its cost method of revenue recognition. The estimated value of unbilled amounts are determined using a regression analysis that estimates value based on the Company’s historical experience, and is adjusted for large individual projects. The profit and corresponding revenue is recognized over the contract term based on costs incurred under the cost-to-cost method. The Company utilizes the cost-to-cost method as it believes cost incurred best represents the amount of work completed and remaining on projects, and is the most common basis for computing percentage of completion in the industry. For purposes of recognizing revenue, the Company follows the five-step approach outlined in Accounting Standards Codification (“ASC”) 606. As the cost-to-cost method is driven by incurred cost, the Company calculates the percentage of completion by dividing costs incurred to date by the total estimated cost. The percentage of completion is then multiplied by estimated revenues to determine inception-to-date revenue. Revenue recognized for the period is the current inception-to-date recognized revenue less the prior period inception-to-date recognized revenue. If a contract is projected to result in a loss, the entire contract loss is recognized in the period when the loss was first determined and the amount of the loss is updated in subsequent reporting periods. Because the Company’s billings are based on contract terms and do not coincide with our progress in a project, revenue recognition also includes an amount related to a contract asset or contract liability. If the recognized revenue is greater than the amount billed to the customer, a contract asset is recorded. Additionally, the contract asset includes retainage billed to the customer that cannot be collected until the contract work has been completed and approved. Conversely, if the amount billed to the customer is greater than the recognized revenue, a contract liability is recorded. Additionally, the contract liability includes a liability for the excess of costs over revenues for all contracts that are in a loss position. Contract costs incurred to date and expected total contract costs are continuously monitored during the term of the contract. Changes in the job performance, job conditions and final contract settlements are factors that influence management’s assessment of total contract value and the total estimated costs to complete those contracts, and therefore, profit and revenue recognition. Additionally, the Company estimates costs to complete on fixed price contracts which are determined on an individual contract basis by evaluating each project’s status as of the balance sheet date, and using our historical experience with the level of effort required to complete the underlying project. Claims and change orders are also measured based on our historical experience with individual customers and similar contracts, and are evaluated by management individually. A change order is a modification to a contract that changes the provisions of the contract, typically resulting from changes in scope, specifications, design, manner of performance, facilities, equipment, materials, sites, or period of completion of the work under the contract. A claim is an amount in excess of the agreed-upon contract price that the Company seeks to collect from its clients or others for client-caused delays, errors in specifications and designs, contract terminations, change orders that are either in dispute or are unapproved as to both scope and price, or other causes. The Company includes these estimated amounts of variable consideration to the extent that it is probable there will not be a significant reversal of revenue. Some of the Company’s contracts may have contract terms that include variable consideration such as safety or performance bonuses or liquidated damages. In accordance with ASC 606, the Company estimates the variable consideration using one of two methods. In contracts in which there is a binary outcome, the most likely amount method is used. In instances in which there is a range of possible outcomes, the expected value method is used. In accordance with ASC 606, the Company includes the estimated amount of variable consideration in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative recognized revenue will not occur when the final outcome of the variable consideration is determined. In contracts in which a significant reversal may occur, the Company uses constraint in recognizing revenue on variable consideration. Although the Company often enters into contracts that contain liquidated damage clauses, the Company rarely incurs them, and as such, the Company does not include amounts associated with liquidated damage clauses until it is probable that liquidated damages will occur. These items are continually monitored by multiple levels of management throughout the reporting period. A portion of the work the Company performs requires financial assurances in the form of performance and payment bonds or letters of credit at the time of execution of the contract. Many of the Company’s contracts include retention provisions of up to 10%, which are generally withheld from each progress payment as retainage until the contract work has been completed and approved. The Company provides warranties to customers on a basis customary to the industry; however, the warranty period does not typically exceed one year. Historically, warranty claims have not been material to the Company. Total revenues do not include sales tax as the Company considers itself a pass-through conduit for collecting and remitting sales taxes. Sales tax collected from customers is included in other current liabilities on the Company’s consolidated balance sheets. Joint Ventures and Noncontrolling Interests The Company accounts for investments in joint ventures using the proportionate consolidation method for income statement reporting and under the equity method for balance sheet reporting, unless the Company has a controlling interest causing the joint venture to be consolidated with equity owned by other joint venture partners recorded as noncontrolling interests. Under the proportionate consolidation method, joint venture activity is allocated to the appropriate line items found on the consolidated statements of operations in proportion to the percentage of participation the Company has in the joint venture. During the years ended December 31, 2023, 2022 and 2021, the Company recognized its proportionate share of joint venture revenues of $33.0 million, $11.3 million, and $26.1 million, respectively. Under the equity method the net investment in joint ventures is stated as a single item on the Company’s consolidated balance sheets. If an investment in a joint venture contains a recourse or unfunded commitment to provide additional equity, distributions and/or losses in excess of the investment a liability is recorded in other current liabilities on the Company’s consolidated balance sheets. For joint ventures which the Company does not have a controlling interest, the Company’s share of any profits and assets and its share of any losses and liabilities are recognized based on the Company’s stated percentage partnership interest in the joint venture and are typically recorded by the Company one month in arrears. The investments in joint ventures are recorded at cost and the carrying amounts are adjusted to recognize the Company’s proportionate share of cumulative income or loss, additional contributions made and dividends and capital distributions received. The Company records the effect of any impairment or any other-than-temporary decrease in the value of the joint venture investment as incurred, which may or may not be one month in arrears, depending on when the Company obtains the joint venture activity information. Additionally, the Company continually assesses the fair value of its investment in unconsolidated joint ventures despite using information that is one month in arrears for regular reporting purposes. The Company includes only its percentage ownership of each joint venture in its backlog. Foreign Currency The functional currency for the Company’s Canadian operations is the Canadian dollar. Assets and liabilities denominated in Canadian dollars are translated into U.S. dollars at the end-of-period exchange rate. Revenues and expenses are translated using average exchange rates for the periods reported. Equity accounts are translated at historical rates. Cumulative translation adjustments are included as a separate component of accumulated other comprehensive income in shareholders’ equity. Foreign currency transaction gains and losses, arising primarily from changes in exchange rates on short-term monetary assets and liabilities, and intercompany loans that are not deemed long-term investment accounts are recorded in the “other income (expense), net” line on the Company’s consolidated statements of operations. Foreign currency gains or losses, recorded in other income (expense), net, for the year ended December 31, 2023 and 2022, were not significant, and losses were $0.1 million for the year ended December 31, 2021. Foreign currency translation gains and losses, arising from intercompany loans that are deemed long-term investment accounts, are recorded in the foreign currency translation adjustment line on the Company’s consolidated statements of comprehensive income. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the period reported. Actual results could differ from those estimates. The most significant estimates are related to estimates of costs to complete on contracts, pending change orders and claims, shared savings, insurance reserves, income tax reserves, estimates surrounding stock-based compensation, acquisition-related contingent earn-out consideration liabilities, the recoverability of goodwill and intangibles and allowance for doubtful accounts. The Company estimates a cost accrual every period that represents costs incurred but not invoiced for services performed or goods delivered during the period, and estimates revenue from the contract cost portion of these accruals based on current gross margin rates to be consistent with its cost method of revenue recognition. As of December 31, 2023 and 2022, the Company recognized revenues of $76.5 million and $19.6 million, respectively, related to significant change orders and/or claims that had been included as contract price adjustments on certain contracts, some of which are multi-year projects. These change orders and/or claims are in the process of being negotiated in the normal course of business, and a portion of these recognized revenues had been included in multiple periods. These aggregate amounts, which were included in “Contract assets” in the accompanying consolidated balance sheets, represent the Company’s estimates of additional contract revenues that were earned and probable of collection; however, the amount ultimately realized could be significantly higher or lower than the estimated amount. The cost-to-cost method of accounting requires the Company to make estimates about the expected revenue and gross profit on each of its contracts in process. During the year ended December 31, 2023, changes in estimates pertaining to certain projects decreased consolidated gross margin by 1.7%, which resulted in decreases in operating income of $62.2 million, net income of $43.6 million and diluted earnings per common share attributable to MYR Group Inc. of $2.59. The estimates are reviewed and revised quarterly, as needed. Additional discussion on the impact of these estimate changes can be found in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” During the year ended December 31, 2022, changes in estimates pertaining to certain projects decreased consolidated gross margin by 0.4%, which resulted in decreases in operating income of $9.8 million, net income of $6.9 million and diluted earnings per common share attributable to MYR Group Inc. of $0.41. During the year ended December 31, 2021, changes in estimates pertaining to certain projects increased consolidated gross margin by 0.4%, which resulted in increases in operating income of $9.2 million, net income attributable to MYR Group Inc. of $6.6 million and diluted earnings per common share attributable to MYR Group Inc. of $0.39. Advertising Advertising costs are expensed when incurred. Advertising costs, included in selling, general and administrative expenses, were $1.8 million, $1.2 million and $0.8 million for the years ended December 31, 2023, 2022 and 2021, respectively. Income Taxes The Company follows the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recorded for future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, and are measured using the enacted tax rates and laws that are expected to be in effect when the underlying assets or liabilities are recovered or settled. The Company also evaluates whether the recorded deferred tax assets and valuation allowances can be realized and, when necessary, reduces the amounts to what is expected to be realized. Interest and penalties related to uncertain income tax positions are included in income tax expense on the Company’s consolidated statements of operations. Interest and penalties actually incurred are charged to the interest expense and the “other income (expense), net” line, respectively. Stock-Based Compensation The Company determines compensation expense for stock-based awards based on the estimated fair values at the grant date and recognizes the related compensation expense over the vesting period. The Company uses the straight-line amortization method to recognize compensation expense related to stock-based awards, such as restricted stock units, that have only service conditions. This method recognizes stock compensation expense on a straight-line basis over the requisite service period for the entire award. The Company recognizes compensation expense related to performance awards that vest based on internal performance metrics and service conditions on a straight-line basis over the service period, but adjusts inception-to-date expense based upon our determination of the potential achievement of the performance target at each reporting date. The Company recognizes compensation expense related to performance awards with market-based performance metrics on a straight-line basis over the requisite service period. The Company recognizes forfeitures as they occur. Shares issued under the Company’s stock-based compensation program are taken out of authorized but unissued shares. Earnings Per Share The Company computes earnings per share using the treasury stock method. Under the treasury stock method, basic earnings per share attributable to MYR Group Inc. are computed by dividing net income attributable to MYR Group Inc. by the weighted average number of common shares outstanding during the period. Diluted earnings per share attributable to MYR Group Inc. are computed by dividing net income attributable to MYR Group Inc. 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. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. As of December 31, 2023 and 2022, the Company held its cash in checking accounts or in highly liquid money market accounts. The Company’s banking arrangements allow the Company to fund outstanding checks when presented to financial institutions for payment. The Company funds all intraday bank balance overdrafts during the same business day. Checks issued and outstanding in excess of bank balances are recorded in accounts payable on the Company’s consolidated balance sheets and are reflected as a financing activity on the Company’s Consolidated Statements of Cash Flows. Accounts Receivable and Allowance for Doubtful Accounts The Company does not charge interest to its customers and carries its customer receivables at their face amounts, net of contract retainage, less an allowance for doubtful accounts. Based on the Company’s experience in recent years, the majority of customer balances at each balance sheet date are collected within twelve months. As is common practice in the industry, the Company classifies all accounts receivable as current assets. The Company grants trade credit, on a non-collateralized basis (with the exception of lien rights against the property in certain cases), to its customers and is subject to potential credit risk related to changes in business and overall economic activity. The Company analyzes specific accounts receivable balances, historical bad debts, customer credit-worthiness, current economic trends and changes in customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. In the event that a customer balance is deemed to be uncollectible, the account balance is written-off against the allowance for doubtful accounts. Classification of Contract Assets and Liabilities The Company recognizes revenue associated with its contracts with customers over time, for which the Company has an enforceable right to receive compensation. Many of our contracts contain specific provisions that determine when the Company can bill for its work performed under these contracts. Any revenue earned on a contract that has not yet been billed to the customer is recorded as a contract asset on the Company’s consolidated balance sheets. Contract retainages associated with contract work that has been completed and billed but not paid by its customers until the contracts are substantially complete, pursuant to contract retainage provisions under the contract, are also included in contract assets. The Company’s consolidated balance sheets present contract liabilities that contain deferred revenue that represent any costs incurred on contracts in process for which revenue has not yet been recognized. Additionally, accruals for contracts in a loss provision are included in contract liabilities. Property and Equipment Property and equipment is carried at cost, except for assets acquired in a business combination which are recorded at fair value at the date of acquisition. Depreciation is computed using the straight-line method over estimated useful lives. Major modifications or refurbishments which extend the useful life of the assets are capitalized and depreciated over the adjusted remaining useful life of the assets. Upon retirement or disposition of property and equipment, the cost and related accumulated depreciation are removed and any resulting gain or loss is recognized in income from operations. The cost of maintenance and repairs is charged to expense as incurred. Property and equipment is reviewed for impairment and tested for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying value of property and equipment exceeds its fair value, an impairment charge would be recorded in the statement of operations. Leases The Company enters into non-cancelable leases for some of our facility, vehicle and equipment needs. These leases allow the Company to conserve cash by paying a monthly lease rental fee for the use of facilities, vehicles and equipment rather than purchasing them. The Company’s leases have remaining terms ranging from one Finance Leases. The Company leases some vehicles and certain equipment under finance leases. The economic substance of the leases is a financing transaction for acquisition of the vehicles and equipment. Accordingly, the right-of-use assets for these leases are included on the Company’s consolidated balance sheets in property and equipment, net of accumulated depreciation, with a corresponding amount recorded in current portion of finance lease obligations or finance lease obligations, net of current maturities, as appropriate. The finance lease assets are amortized over the life of the lease or, if shorter, the life of the leased asset, on a straight-line basis and included in depreciation expense. The financing component associated with finance lease obligations is included in interest expense. Generally, for the Company’s finance leases an implicit rate to calculate present value is provided in the lease agreement. However, if a rate in not provided the Company determines this rate by estimating the Company’s incremental borrowing rate, utilizing the borrowing rates associated with the Company’s various debt instruments. Operating Right-of-Use Leases. Operating right-of-use leases are included in operating lease right-of-use assets, current portion of operating lease obligations and operating lease obligations, net of current maturities on the Company’s consolidated balance sheets, as appropriate. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company’s leases do not provide an implicit rate to calculate present value, the Company determines this rate by estimating the Company’s incremental borrowing rate, utilizing the borrowing rates associated with the Company’s various debt instruments. The operating lease right-of-use asset also includes any lease payments made and initial direct costs incurred and excludes lease incentives. Our lease terms may include options to extend or terminate the lease, which are considered in the present value calculations when it is reasonably certain we will exercise those options. Insurance The Company carries insurance policies, which are subject to certain deductibles, for workers’ compensation, general liability, automobile liability and other coverages. The deductible for each line of coverage is up to $1.0 million. Certain health benefit plans are subject to a stop-loss limit of up to $0.2 million, for qualified individuals. Losses up to the deductible amounts are accrued based upon the Company’s estimates of the ultimate liability for claims reported and an estimate of claims incurred but not yet reported. The insurance and claims accruals are based on known facts, actuarial estimates and historical trends. While recorded accruals are based on the ultimate liability, which includes amounts in excess of the deductible, a corresponding receivable for amounts in excess of the deductible is included in current assets on the Company’s consolidated balance sheets. Goodwill and Intangible Assets Goodwill and intangible assets with indefinite lives are not amortized. Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives. The Company performs either a qualitative or quantitative assessment to review goodwill and intangible assets with indefinite lives for impairment on an annual basis. This assessment is performed at the beginning of the fourth quarter, or when circumstances change, such as a significant adverse change in the business climate or the decision to sell a business, both of which would indicate that impairment may have occurred. Intangible assets with finite lives are also reviewed for impairment and tested for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. A qualitative assessment considers financial, industry, segment and macroeconomic factors, if the qualitative assessment indicates a potential for impairment, a quantitative assessment is performed to determine if impairment exists. The quantitative assessment begins with a comparison of the fair value of the reporting unit or intangible asset with its carrying value. If the carrying amount of the reporting unit or intangible asset exceeds its fair value, an impairment loss would be recognized in an amount equal to that excess, limited to the total amount of the goodwill allocated to the reporting unit or intangible asset. If the carrying value of goodwill or other indefinite lived assets exceeds its implied fair value, an impairment charge would be recorded in the statement of operations. As a result of the annual qualitative review process in 2023 and 2022, the Company determined it was not necessary to perform a quantitative assessment. In 2021, the Company performed a quantitative assessment on goodwill and intangible assets with indefinite lives, this assessment did not indicate that the Company’s goodwill or indefinite lived intangible assets were impaired. Concentrations Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company maintains substantially all of its cash and cash equivalent balances with large financial institutions which are believed to be high quality institutions. The Company is subject to a concentration of risk because it derives a significant portion of its revenues from a few customers. The Company’s top ten customers accounted for approximately 37.9%, 35.4%, and 34.9% of consolidated revenues for the years ended December 31, 2023, 2022 and 2021, respectively. For the years ended December 31, 2023, 2022 and 2021, no single customer accounted for more than 10.0% of annual revenues. The Company grants trade credit under contractual payment terms, generally without collateral, to its customers, which include high credit quality electric utilities, governmental entities, general contractors and builders, owners and managers of commercial and industrial properties. Consequently, the Company is subject to potential credit risk related to changes in business and economic factors. However, the Company generally has certain statutory lien rights with respect to services provided. Under certain circumstances such as foreclosures or negotiated settlements, the Company may take title to the underlying assets in lieu of cash in settlement of receivables. As of December 31, 2023 and 2022, none of the Company’s customers individually exceeded 10.0% of accounts receivable. The Company believes the terms and conditions in its contracts, billing and collection policies are adequate to minimize the potential credit risk. As of December 31, 2023, approximately 84% of the Company’s craft labor employees were covered by collective bargaining agreements. Although the majority of these agreements prohibit strikes and work stoppages, the Company cannot be certain that strikes or work stoppages will not occur in the future. Canadian Emergency Wage Subsidy (CEWS) In 2020 and 2021, certain C&I segment Canadian operations of the Company qualified for and applied for a wage subsidy under the Canada Emergency Wage Subsidy (“CEWS”) program. Payroll subsidies received under CEWS totaled $2.3 million and were initially recorded in the "other current liabilities" line on the Company’s consolidated balance sheets. Once the qualification criteria was met in 2022, these funds were recorded to the “ other income (expense) Recent Accounting Pronouncements Changes to GAAP are typically established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs. The Company, based on its assessment, determined that any recently issued or proposed ASUs not listed below are either not applicable to the Company or will have minimal impact on its Financial Statements when adopted. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant reportable segment expenses and other disclosure requirements. The update is effective for annual reporting periods beginning after December 15, 2023, with early adoption permitted. The guidance requires application on a retrospective basis. The Company is currently evaluating the impact of the new standard on its consolidated financial statements and disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition | Acquisition Powerline Plus Ltd On January 4, 2022, the Company acquired all issued and outstanding shares of capital stock of Powerline Plus Ltd. and its affiliate PLP Redimix Ltd. (collectively, the “Powerline Plus Companies"), a full-service electrical distribution construction company based in Toronto, Ontario. Cash consideration paid, funded through a combination of cash on hand and borrowings under the Facility (as defined below), including $0.1 million of net asset and other adjustments, was $110.7 million, net of cash acquired. The Company finalized the purchase price accounting relating to the acquisition of the Powerline Plus Companies during the year ended December 31, 2022. Additionally, the acquisition includes contingent earn-out consideration that may be payable if the Powerline Plus Companies achieve certain performance targets over a three-year post-acquisition period. As of the acquisition date, the fair value of the contingent earn-out consideration was $0.9 million. As of December 31, 2023 and 2022, the fair value of the contingent earn-out consideration was zero and $0.2 million, respectively. The future payout of the contingent earn-out consideration, if any, is unlimited and could be significantly higher than the acquisition date fair value. If the minimum thresholds of the performance targets are achieved the contingent earn-out consideration payment will be approximately $17.0 million. Changes in contingent earn-out consideration, subsequent to the acquisition, of approximately $0.2 million and $0.7 million were recorded in other income, for the year ended December 31, 2023 and 2022, respectively. The results of the Powerline Plus Companies are included in the Company’s consolidated financial statements beginning on the transaction date. The purchase agreement also includes contingent consideration provisions for down-side margin guarantee adjustments based upon certain contract performance subsequent to the acquisition. The contracts were valued at fair value at the acquisition date, causing no margin guarantee estimate or adjustments for fair value. Unfavorable changes in contract estimates, such as modified costs to complete or change order recognition, will result in changes to these margin guarantee estimates. No changes in margin guarantee adjustments on contracts, subsequent to the acquisition, have been recorded for the year ended December 31, 2023 and 2022. Future margin guarantee adjustments, if any, will be recognized in other income in 2024. The following table summarizes the allocation of the opening balance sheet as of the date of the Powerline Plus Companies acquisition: (in thousands) January 4, 2022 acquisition date (initial estimates) Measurement Final Acquisition Allocation Cash paid $ 114,429 $ — $ 114,429 Contingent consideration - fair value at acquisition date 10,608 (9,743) 865 Net asset and other adjustments 563 (479) 84 Total consideration, net of estimated net asset adjustments 125,600 (10,222) 115,378 Less: Acquired cash (3,853) — (3,853) Total consideration less cash acquired, net of net asset and other adjustments $ 121,747 $ (10,222) $ 111,525 Cash and cash equivalents $ 3,853 $ — $ 3,853 Accounts receivable 12,131 (52) 12,079 Contract assets 12,443 148 12,591 Refundable income taxes 394 482 876 Prepaid expenses and other current assets 1,233 (121) 1,112 Property and equipment 10,366 1,577 11,943 Operating lease right-of-use assets 6,631 (511) 6,120 Intangible assets — 50,246 50,246 Accounts payable (8,095) (466) (8,561) Contract liabilities (1,597) (95) (1,692) Current portion of operating lease obligations (1,224) — (1,224) Current portion of finance lease obligations (1,492) — (1,492) Deferred income tax liabilities (1,358) (13,991) (15,349) Operating lease obligations, net of current maturities (4,897) — (4,897) Finance lease obligations, net of current maturities (3,243) — (3,243) Net identifiable assets and liabilities 25,145 37,217 62,362 Unallocated intangible assets 56,650 (56,650) — Total acquired assets and liabilities 81,795 (19,433) 62,362 Goodwill $ 43,805 $ 9,211 $ 53,016 The following table summarizes the estimated fair values of identifiable intangible assets and the related weighted average amortization periods as of the acquisition date of the Powerline Plus Companies. Estimated Fair Value at Acquisition Date Weighted Average Amortization Period at Acquisition Date (in thousands) (in years) Amortizable Intangible Assets Customer relationships $ 39,757 15.0 Backlog 4,007 1.0 Below market lease 511 5.0 Total amortizable intangible assets $ 44,275 14.9 Indefinite-lived Intangible Assets Trade names 5,971 Indefinite Total intangible assets $ 50,246 The acquisition date fair values of intangible assets were determined using the income approach, which discounts the projected future cash flows using a discount rate that appropriately reflects the risks associated with the projected cash flows. Under the income approach, the acquisition date fair value of the customer relationships and backlog were estimated using a multi-period excess earnings valuation method and the acquisition date fair value of the trade names was estimated using a relief from royalty valuation method. The fair value of the acquired operating lease obligation and operating right of use asset was estimated by applying the income approach. The fair value of the operating lease obligation was determined by comparing the difference between the annual lease contract rent over the remaining contractual term to a market rate cash flow stream, discounted to the present value. The Company calculated the fair value of the operating right of use asset based on the fair values of the operating lease obligation adjusted for a below market lease positions. The contractual value of the acquired accounts receivable is equal to the fair market value. |
Contract Assets and Liabilities
Contract Assets and Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | |
Contract Assets and Liabilities | Contract Assets and Liabilities Contracts with customers usually stipulate the timing of payment, which is defined by the terms found within the various contracts under which work was performed during the period. Therefore, contract assets and liabilities are created when the timing of costs incurred on work performed does not coincide with the billing terms. These contracts frequently include retention provisions contained in each contract. The Company’s consolidated balance sheets present contract assets, which contain unbilled revenue and contract retainages associated with contract work that has been completed and billed but not paid by customers, pursuant to retainage provisions, that are generally due once the job is completed and approved. The allowance for doubtful accounts associated with contract assets was $0.6 million as of December 31, 2023 and $0.5 million as of December 31, 2022. Contract assets consisted of the following at December 31: (in thousands) 2023 2022 Change Unbilled revenue, net $ 217,083 $ 156,266 $ 60,817 Contract retainages, net 203,533 144,349 59,184 Contract assets, net $ 420,616 $ 300,615 $ 120,001 The Company’s consolidated balance sheets present contract liabilities that contain deferred revenue and an accrual for contracts in a loss provision. Contract liabilities consisted of the following at December 31: (in thousands) 2023 2022 Change Deferred revenue $ 231,604 $ 223,654 $ 7,950 Accrued loss provision 8,807 3,401 5,406 Contract liabilities $ 240,411 $ 227,055 $ 13,356 The following table provides information about contract assets and contract liabilities from contracts with customers at December 31: (in thousands) 2023 2022 Change Contract assets, net $ 420,616 $ 300,615 $ 120,001 Contract liabilities (240,411) (227,055) (13,356) Net contract assets $ 180,205 $ 73,560 $ 106,645 The difference between the opening and closing balances of the Company’s contract assets and contract liabilities primarily results from the timing of the Company’s billings in relation to its performance of work. The amounts of revenues recognized in the period that were included in the opening contract liability balances were $130.7 million and $117.3 million for the year ended December 31, 2023 and 2022, respectively. This revenue consists primarily of work performed on previous billings to customers. The net asset position for contracts in process consisted of the following at December 31: (in thousands) 2023 2022 Costs and estimated earnings on uncompleted contracts $ 6,716,990 $ 5,390,535 Less: billings to date 6,731,511 5,457,923 $ (14,521) $ (67,388) The net asset position for contracts in process is included within the contract asset and contract liability in the accompanying consolidated balance sheets as follows at December 31: (in thousands) 2023 2022 Unbilled revenue, net $ 217,083 $ 156,266 Deferred revenue (231,604) (223,654) $ (14,521) $ (67,388) |
Lease Obligations
Lease Obligations | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Lease Obligations | Lease Obligations From time to time, the Company enters into non-cancelable leases for some of our facility, vehicle and equipment needs. These leases allow the Company to conserve cash by paying a monthly lease rental fee for the use of facilities, vehicles and equipment rather than purchasing them. The Company’s leases have remaining terms ranging from one The following is a summary of the lease-related assets and liabilities recorded: December 31, December 31, (in thousands) Classification on the Consolidated Balance Sheet Assets Operating lease right-of-use assets Operating lease right-of-use assets $ 35,012 $ 30,544 Finance lease right-of-use assets Property and equipment, net of accumulated depreciation 2,363 3,238 Total right-of-use lease assets $ 37,375 $ 33,782 Liabilities Current Operating lease obligations Current portion of operating lease obligations $ 9,237 $ 9,711 Finance lease obligations Current portion of finance lease obligations 2,039 1,127 Total current obligations 11,276 10,838 Non-current Operating lease obligations Operating lease obligations, net of current maturities 25,775 20,845 Finance lease obligations Finance lease obligations, net of current maturities 314 2,313 Total non-current obligations 26,089 23,158 Total lease obligations $ 37,365 $ 33,996 The following is a summary of the lease terms and discount rates: December 31, December 31, Weighted-average remaining lease term – finance leases 0.9 years 1.9 years Weighted-average remaining lease term – operating leases 4.0 years 3.6 years Weighted-average discount rate – finance leases 3.1 % 3.0 % Weighted-average discount rate – operating leases 4.0 % 3.8 % The following is a summary of certain information related to the lease costs for finance and operating leases: Year ended December 31, (in thousands) 2023 2022 Lease cost: Finance lease cost: Amortization of right-of-use assets $ 1,792 $ 1,138 Interest on lease liabilities 83 128 Operating lease cost 14,302 13,428 Variable lease costs 353 415 Total lease cost $ 16,530 $ 15,109 The following is a summary of other information and supplemental cash flow information related to finance and operating leases: Year ended December 31, (in thousands) 2023 2022 Other information: Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 14,519 $ 13,287 Right-of-use asset obtained in exchange for new operating lease obligations $ 11,039 $ 21,663 Right-of-use asset obtained in exchange for new finance lease obligations $ — $ 517 Information on operating and financing lease right of use assets and corresponding lease obligations acquired with the Powerline Plus Companies is provided in Note 2–Acquisitions to the Financial Statements. The future undiscounted minimum lease payments, as reconciled to the discounted minimum lease obligation indicated on the Company’s consolidated balance sheets, under current portion of operating lease obligations and operating lease obligations, net of current maturities, as of December 31, 2023 were as follows: (in thousands) Finance Operating Lease Total 2024 $ 2,078 $ 13,148 $ 15,226 2025 320 11,188 11,508 2026 — 9,099 9,099 2027 — 4,568 4,568 2028 — 3,503 3,503 Thereafter — 2,956 2,956 Total minimum lease payments 2,398 44,462 46,860 Financing component (45) (9,450) (9,495) Net present value of minimum lease payments 2,353 35,012 37,365 Less: current portion of operating lease obligations (2,039) (9,237) (11,276) Long-term operating lease obligations $ 314 $ 25,775 $ 26,089 The financing component for finance lease obligations represents the interest component of finance leases that will be recognized as interest expense in future periods. The financing component for operating lease obligations represents the effect of discounting the lease payments to their present value. Certain subsidiaries of the Company have operating leases for facilities from third party companies that are owned, in whole or part, by employees of the subsidiaries. The terms and rental rates of these leases are at market rental rates. Lease expense associated with these leases was $2.7 million, $2.4 million and $0.9 million for the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023, the minimum lease payments required under these leases totaled $12.9 million, which are due over the next 5.7 years. |
Lease Obligations | Lease Obligations From time to time, the Company enters into non-cancelable leases for some of our facility, vehicle and equipment needs. These leases allow the Company to conserve cash by paying a monthly lease rental fee for the use of facilities, vehicles and equipment rather than purchasing them. The Company’s leases have remaining terms ranging from one The following is a summary of the lease-related assets and liabilities recorded: December 31, December 31, (in thousands) Classification on the Consolidated Balance Sheet Assets Operating lease right-of-use assets Operating lease right-of-use assets $ 35,012 $ 30,544 Finance lease right-of-use assets Property and equipment, net of accumulated depreciation 2,363 3,238 Total right-of-use lease assets $ 37,375 $ 33,782 Liabilities Current Operating lease obligations Current portion of operating lease obligations $ 9,237 $ 9,711 Finance lease obligations Current portion of finance lease obligations 2,039 1,127 Total current obligations 11,276 10,838 Non-current Operating lease obligations Operating lease obligations, net of current maturities 25,775 20,845 Finance lease obligations Finance lease obligations, net of current maturities 314 2,313 Total non-current obligations 26,089 23,158 Total lease obligations $ 37,365 $ 33,996 The following is a summary of the lease terms and discount rates: December 31, December 31, Weighted-average remaining lease term – finance leases 0.9 years 1.9 years Weighted-average remaining lease term – operating leases 4.0 years 3.6 years Weighted-average discount rate – finance leases 3.1 % 3.0 % Weighted-average discount rate – operating leases 4.0 % 3.8 % The following is a summary of certain information related to the lease costs for finance and operating leases: Year ended December 31, (in thousands) 2023 2022 Lease cost: Finance lease cost: Amortization of right-of-use assets $ 1,792 $ 1,138 Interest on lease liabilities 83 128 Operating lease cost 14,302 13,428 Variable lease costs 353 415 Total lease cost $ 16,530 $ 15,109 The following is a summary of other information and supplemental cash flow information related to finance and operating leases: Year ended December 31, (in thousands) 2023 2022 Other information: Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 14,519 $ 13,287 Right-of-use asset obtained in exchange for new operating lease obligations $ 11,039 $ 21,663 Right-of-use asset obtained in exchange for new finance lease obligations $ — $ 517 Information on operating and financing lease right of use assets and corresponding lease obligations acquired with the Powerline Plus Companies is provided in Note 2–Acquisitions to the Financial Statements. The future undiscounted minimum lease payments, as reconciled to the discounted minimum lease obligation indicated on the Company’s consolidated balance sheets, under current portion of operating lease obligations and operating lease obligations, net of current maturities, as of December 31, 2023 were as follows: (in thousands) Finance Operating Lease Total 2024 $ 2,078 $ 13,148 $ 15,226 2025 320 11,188 11,508 2026 — 9,099 9,099 2027 — 4,568 4,568 2028 — 3,503 3,503 Thereafter — 2,956 2,956 Total minimum lease payments 2,398 44,462 46,860 Financing component (45) (9,450) (9,495) Net present value of minimum lease payments 2,353 35,012 37,365 Less: current portion of operating lease obligations (2,039) (9,237) (11,276) Long-term operating lease obligations $ 314 $ 25,775 $ 26,089 The financing component for finance lease obligations represents the interest component of finance leases that will be recognized as interest expense in future periods. The financing component for operating lease obligations represents the effect of discounting the lease payments to their present value. Certain subsidiaries of the Company have operating leases for facilities from third party companies that are owned, in whole or part, by employees of the subsidiaries. The terms and rental rates of these leases are at market rental rates. Lease expense associated with these leases was $2.7 million, $2.4 million and $0.9 million for the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023, the minimum lease payments required under these leases totaled $12.9 million, which are due over the next 5.7 years. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 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 December 31, 2023 and 2022, the Company determined that the carrying value of cash and cash equivalents approximated fair value based on Level 1 inputs. As of December 31, 2023 and 2022, the fair value of the Company’s long-term debt and finance lease obligations were based on Level 2 inputs. The Company’s long-term debt was based on variable and fixed interest rates at December 31, 2023 and 2022. Long-term debt with variable interest rates is based on rates for new issues with similar remaining maturities, and approximated carrying value. In addition, based on borrowing rates currently available to the Company for borrowings with similar terms, the carrying value of the Company’s long term debt with fixed interest rates approximated fair value. As of December 31, 2023, the fair value of the Company’s contingent earn-out consideration liability associated with the acquisition of the Powerline Plus Companies, was based on Level 3 inputs. The contingent earn-out consideration recorded represents the estimated fair value of future amounts potentially payable to the former owners of the acquired Powerline Plus Companies, if the Powerline Plus Companies achieve certain performance targets over a three-year post-acquisition period. The fair value was initially determined using a Monte Carlo simulation valuation methodology based on probability-weighted performance projections and other inputs, including a discount rate and an expected volatility factor. The fair value of this contingent earn-out consideration liability will be evaluated on an ongoing basis by management. Accordingly, the level of inputs used for these fair value measurements is the lowest level (Level 3). Significant changes in any of these assumptions could result in a significantly higher or lower potential liability. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable consisted of the following at December 31: (in thousands) 2023 2022 Contract receivables $ 516,142 $ 471,724 Other 7,738 2,892 523,880 474,616 Less: allowance for doubtful accounts (1,987) (2,073) $ 521,893 $ 472,543 The roll-forward of activity in the allowance for doubtful accounts was as follows for the years ended December 31: (in thousands) 2023 2022 2021 Balance at beginning of period $ 2,073 $ 2,441 $ 1,696 Less: reduction in (provision for) allowances 85 320 (764) Less: write offs, net of recoveries 3 45 19 Change in foreign currency translation 2 (3) — Balance at end of period $ 1,987 $ 2,073 $ 2,441 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expense and other current assets consisted of the following at December 31: (in thousands) 2023 2022 Prepaid expenses $ 44,410 $ 45,977 Other current assets 2,125 1,847 $ 46,535 $ 47,824 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following at December 31: (dollars in thousands) Estimated 2023 2022 Land — $ 10,351 $ 10,226 Buildings and improvements 3 to 39 44,352 40,480 Construction equipment 3 to 12 578,563 519,421 Office equipment 3 to 10 16,177 14,801 649,443 584,928 Less: accumulated depreciation and amortization (380,465) (351,753) $ 268,978 $ 233,175 Construction equipment includes assets under finance leases — see additional information provided in Note 4 — Lease Obligations to the Financial Statements. Depreciation and amortization expense of property and equipment for the years ended December 31, 2023, 2022 and 2021 was $54.2 million, $49.2 million and $43.9 million, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill and intangible assets consisted of the following at December 31: 2023 2022 (in thousands) Gross Accumulated Net Gross Accumulated Net Goodwill T&D $ 93,240 $ — $ 93,240 $ 93,240 $ — $ 93,240 C&I 25,830 — 25,830 25,830 — 25,830 Foreign currency translation (2,117) — (2,117) (3,223) — (3,223) Total goodwill $ 116,953 $ — $ 116,953 $ 115,847 $ — $ 115,847 Amortizable Intangible Assets Backlog $ 9,296 $ 9,296 $ — $ 9,296 $ 9,296 $ — Customer relationships 71,139 20,905 50,234 71,138 16,094 55,044 Trade names 695 403 292 695 357 338 Below market lease 511 200 311 511 102 409 Foreign currency translation (1,768) (270) (1,498) (2,689) (410) (2,279) Indefinite-lived Intangible Assets Trade names 34,412 — 34,412 34,412 — 34,412 Foreign currency translation (235) — (235) (367) — (367) Total intangible assets $ 114,050 $ 30,534 $ 83,516 $ 112,996 $ 25,439 $ 87,557 Customer relationships, amortizable trade names and backlog are being amortized on a straight-line method over an estimated useful life ranging up to 15 years and the remaining life of the contract, respectively, and have been determined to have no residual value. Certain trade names have indefinite lives and, therefore, are not being amortized. Intangible asset amortization expense was $4.9 million, $9.0 million and $2.3 million for the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023, estimated future intangible asset amortization expense for the each of the next five years and thereafter was as follows: (in thousands) Future 2024 $ 4,954 2025 4,954 2026 4,954 2027 4,815 2028 4,805 Thereafter 24,857 Total $ 49,339 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Other current liabilities consisted of the following at December 31: (in thousands) 2023 2022 Payroll and incentive compensation $ 39,986 $ 31,355 Union dues and benefits 26,107 21,500 Payroll, sales and other taxes 13,903 6,574 Profit sharing and thrift plan 8,592 9,119 Other 12,005 11,370 $ 100,593 $ 79,918 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The table below reflects the Company’s total debt, including borrowings under its credit agreement and equipment notes: (dollars in thousands) Inception Stated Interest Payment Term Outstanding Balance as of December 31, Outstanding Balance as of December 31, Credit Agreement Revolving loans 5/31/2023 Variable Variable 5 $ 13,201 $ 12,915 Equipment Notes Equipment Note 8 12/27/2019 2.75% Semi-annual 5 2,871 3,464 Equipment Note 10 8/26/2022 4.32% Semi-annual 5 20,125 24,119 Other equipment note 4/11/2022 4.55% Monthly 5 44 55 23,040 27,638 Total debt 36,241 40,553 Less: current portion of long-term debt (7,053) (5,074) Long-term debt $ 29,188 $ 35,479 Credit Agreement On May 31, 2023, the Company entered into a five-year third amended and restated credit agreement with a maturity date of May 31, 2028, (the “Credit Agreement”) through a syndicate of banks led by JPMorgan Chase Bank, N.A. and Bank of America, N.A, that provides for a $490 million revolving credit facility (the “Facility”), subject to certain financial covenants as defined in the Credit Agreement. The Facility allows for revolving loans in Canadian dollars and other non-US currencies, up to the U.S. dollars equivalent of $150 million. Up to $75 million, of the Facility may be used for letters of credit, with an additional $75 million available for letters of credit, subject to the sole discretion of each issuing bank. The Facility also allows for $15 million to be used for swingline loans. The Company has an expansion option to increase the commitments under the Facility or enter into incremental term loans, subject to certain conditions, by up to an additional $200 million upon receipt of additional commitments from new or existing lenders. Subject to certain exceptions, the Facility is secured by substantially all of the assets of the Company and its domestic subsidiaries, and by a pledge of substantially all of the capital stock of the Company’s domestic subsidiaries and 65% of the capital stock of the direct foreign subsidiaries of the Company. Additionally, subject to certain exceptions, the Company’s domestic subsidiaries also guarantee the repayment of all amounts due under the Credit Agreement. 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. Borrowings under the Credit Agreement are used to refinance existing indebtedness, and to provide for future working capital, capital expenditures, acquisitions and other general corporate purposes. Amounts borrowed under the Credit Agreement bear interest, at the Company’s option, at a rate equal to either (1) the Alternate Base Rate (as defined in the Credit Agreement), plus an applicable margin ranging from 0.25% to 1.00%; or (2) the Term Benchmark Rate (as defined in the Credit Agreement) plus an applicable margin ranging from 1.25% to 2.00%. The applicable margin is determined based on the Company’s Net Leverage Ratio (as defined in the Credit Agreement). The Credit Agreement establishes Adjusted Term Secured Overnight Financing Rate ("SOFR") (as defined in the Credit Agreement) as the benchmark rate in replacement of LIBOR. Letters of credit issued under the Facility are subject to a letter of credit fee of 1.25% to 2.00% for non-performance letters of credit or 0.625% to 1.00% for performance letters of credit, based on the Company’s Net Leverage Ratio. The Company is subject to a commitment fee of 0.20% to 0.30%, based on the Company’s Net Leverage Ratio, on any unused portion of the Facility. The Credit Agreement restricts certain types of payments when the Company’s Net Leverage Ratio, after giving pro forma effect thereto, exceeds 2.75. The weighted average interest rate on borrowings outstanding on the Facility for the year ended December 31, 2023, was 7.07% per annum. Under the Credit Agreement, the Company is subject to certain financial covenants including a maximum Net Leverage Ratio of 3.0 and a minimum Interest Coverage Ratio (as defined in the Credit Agreement) of 3.0. The Credit Agreement also contains covenants including limitations on asset sales, investments, indebtedness and liens. The Company was in compliance with all of its financial covenants under the Credit Agreement as of December 31, 2023. As of December 31, 2023, the Company had $13.2 million of borrowings outstanding under the Facility and letters of credit outstanding under the Facility of approximately $34.4 million, including $27.1 million related to the Company's payment obligation under its insurance programs and approximately $7.3 million related to contract performance obligations. As of December 31, 2022, the Company had $12.9 million of borrowings outstanding under a previous facility and letters of credit outstanding under a previous facility of approximately $12.8 million, which were almost entirely related to the Company's payment obligations under its insurance programs. The Company had remaining deferred debt issuance costs totaling $2.2 million as of December 31, 2023, mostly related to the Credit Agreement. As permitted, debt issuance costs have been deferred and are presented as an asset within other assets, which is amortized as interest expense over the term of the Credit Agreement. On May 31, 2023, the Company had remaining deferred debt issuance costs related to its previous credit agreement totaling $0.4 million, which is being amortized over the life of the Credit Agreement. Equipment Notes The Company has entered into Master Equipment Loan and Security Agreements (the “Master Loan Agreements”) with multiple finance companies. The Master Loan Agreements may be used for the financing of equipment between the Company and the lenders pursuant to one or more equipment notes (“Equipment Note”). Each Equipment Note executed under the Master Loan Agreements constitutes a separate, distinct and independent financing of equipment and a contractual obligation of the Company, which may contain prepayment clauses. As of December 31, 2023, the Company had two Equipment Notes outstanding under the Master Loan Agreements that are collateralized by equipment and vehicles owned by the Company. As of December 31, 2023, the Company had one other equipment note outstanding that is collateralized by a vehicle owned by the Company. The following table sets forth our remaining principal payments for the Company’s outstanding Equipment Note as of December 31, 2023: (in thousands) Future 2024 $ 7,053 2025 4,364 2026 4,555 2027 7,068 2028 — Thereafter — Total future principal payments $ 23,040 Less: current portion of equipment notes (7,053) Long-term principal obligations $ 15,987 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of Revenue A majority of the Company’s revenues are earned through contracts with customers that normally provide for payment upon completion of specified work or units of work as identified in the contract. Although there is considerable variation in the terms of these contracts, they are primarily structured as fixed-price contracts, under which the Company agrees to perform a defined scope of a project for a fixed amount, or unit-price contracts, under which the Company agrees to do the work at a fixed price per unit of work as specified in the contract. The Company also enters into time-and-equipment and time-and-materials contracts under which the Company is paid for labor and equipment at negotiated hourly billing rates and for other expenses, including materials, as incurred at rates agreed to in the contract. Finally, the Company sometimes enters into cost-plus contracts, where the Company is paid for costs plus a negotiated margin. On occasion, time-and-equipment, time-and-materials and cost-plus contracts require the Company to include a guaranteed not-to-exceed maximum price. Historically, fixed-price and unit-price contracts have had the highest potential margins; however, they have had a greater risk in terms of profitability because cost overruns may not be recoverable. Time-and-equipment, time-and-materials and cost-plus contracts have historically had less margin upside, but generally have had a lower risk of cost overruns. The Company also provides services under master service agreements (“MSAs”) and other variable-term service agreements. MSAs normally cover maintenance, upgrade and extension services, as well as new construction. Work performed under MSAs is typically billed on a unit-price, time-and-materials or time-and-equipment basis. MSAs are typically one The components of the Company’s revenue by contract type were as follows for the year ended December 31: 2023 T&D C&I Total (dollars in thousands) Amount Percent Amount Percent Amount Percent Fixed price $ 1,100,273 52.7 % $ 1,274,763 82.0 % $ 2,375,036 65.2 % Unit price 549,221 26.3 92,581 6.0 641,802 17.6 T&E (1) 439,702 21.0 187,365 12.0 627,067 17.2 $ 2,089,196 100.0 % $ 1,554,709 100.0 % $ 3,643,905 100.0 % 2022 T&D C&I Total (dollars in thousands) Amount Percent Amount Percent Amount Percent Fixed price $ 835,288 47.8 % $ 1,051,428 83.3 % $ 1,886,716 62.7 % Unit price 475,276 27.2 78,714 6.2 553,990 18.4 T&E (1) 435,228 25.0 132,608 10.5 567,836 18.9 $ 1,745,792 100.0 % $ 1,262,750 100.0 % $ 3,008,542 100.0 % 2021 T&D C&I Total (dollars in thousands) Amount Percent Amount Percent Amount Percent Fixed price $ 559,861 43.0 % $ 963,477 80.5 % $ 1,523,338 61.0 % Unit price 369,710 28.4 73,826 6.2 443,536 17.7 T&E (1) 372,016 28.6 159,399 13.3 531,415 21.3 $ 1,301,587 100.0 % $ 1,196,702 100.0 % $ 2,498,289 100.0 % (1) The Company T&E contract type includes time-and-equipment, time-and-materials and cost-plus contracts. The components of the Company’s revenue by market type were as follows for the year ended December 31: 2023 2022 2021 (dollars in thousands) Segment Amount Percent Amount Percent Amount Percent Transmission T&D $ 1,380,923 37.9 % $ 1,083,415 36.0 % $ 806,367 32.3 % Distribution T&D 708,273 19.4 662,377 22.0 495,220 19.8 Electrical construction C&I 1,554,709 42.7 1,262,750 42.0 1,196,702 47.9 Total revenue $ 3,643,905 100.0 % $ 3,008,542 100.0 % $ 2,498,289 100.0 % Remaining Performance Obligations On December 31, 2023, the Company had $2.30 billion of remaining performance obligations. The Company’s remaining performance obligations include projects that have a written award, a letter of intent, a notice to proceed or an agreed-upon work order to perform work on mutually accepted terms and conditions. The timing of when remaining performance obligations are recognized is evaluated quarterly and is largely driven by the estimated start date and duration of the underlying projects. The following table summarizes the total amount of remaining performance obligations as of December 31, 2023 that the Company expects to be realized, the amount of the remaining performance obligations that the Company reasonably estimates will be recognized within the next twelve months, and the amount estimated to be recognized after the next twelve months. Remaining Performance Obligations as of December 31, 2023 (in thousands) Total Amount estimated to be Amount estimated to be T&D $ 769,128 $ 722,765 $ 46,363 C&I 1,532,019 1,144,243 387,776 Total $ 2,301,147 $ 1,867,008 $ 434,139 The Company estimates approximately 95% or more of the remaining performance obligations will be recognized within twenty-four months, including approximately 80% of the remaining performance obligations estimated to be recognized within twelve months, although the timing of the Company’s performance is not always under its control. The timing of when remaining performance obligations are recognized by the Company can vary considerably and is impacted by multiple variables including, but not limited to: changes in the estimated versus actual start time of a project; the availability of labor, equipment and materials; changes in project workflow; weather; project delays and accelerations; and the timing of final contract settlements. Additionally, the difference between the remaining performance obligations and backlog is due to the exclusion of a portion of the Company’s MSAs under certain contract types from the Company’s remaining performance obligations as these contracts can be canceled for convenience at any time by the Company or the customer without considerable cost incurred by the customer. Additional information related to backlog is provided in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Annual Report. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income before income taxes by geographic area was, for the years ended December 31: (in thousands) 2023 2022 2021 Federal $ 102,014 $ 104,185 $ 106,956 Foreign 22,990 10,019 9,350 $ 125,004 $ 114,204 $ 116,306 Income tax expense consisted of the following for the years ended December 31: (in thousands) 2023 2022 2021 Current Federal $ 21,337 $ 13,948 $ 16,512 Foreign 1,821 2,148 1,947 State 7,348 5,154 6,560 30,506 21,250 25,019 Deferred Federal (159) 7,739 5,061 Foreign 3,984 465 287 State (317) 1,369 933 3,508 9,573 6,281 Income tax expense $ 34,014 $ 30,823 $ 31,300 The differences between the U.S. federal statutory tax rate and the Company’s effective tax rate for operations were as follows for the years ended December 31: 2023 2022 2021 U.S federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of U.S. federal income tax expense 4.4 4.5 4.7 Tax differential on foreign earnings 0.7 0.6 0.5 Non-deductible meals and entertainment 0.5 0.2 0.1 Stock compensation excess tax benefits (2.6) (2.4) (0.8) Uncertain tax positions — 0.1 — Provision to return adjustments, net 0.7 0.7 0.4 Section 162(m) limitation 2.5 2.4 1.1 Other income, net — (0.1) (0.1) Effective rate 27.2 % 27.0 % 26.9 % The net deferred tax assets and (liabilities) arising from temporary differences was as follows at December 31: (in thousands) 2023 2022 Deferred income tax assets: Self-insurance reserves $ 3,850 $ 2,979 Contract loss reserves 2,273 842 Stock-based awards 3,336 2,071 Bonus 11,137 8,656 Accrued vacation 2,295 2,227 Accrued profit sharing 1,707 2,030 Operating lease liabilities 8,115 6,691 Non-U.S. operating loss 2,411 2,402 Other 1,090 1,112 Total deferred income tax assets before valuation allowances 36,214 29,010 Less: valuation allowances (2,412) (2,402) Total deferred income tax assets 33,802 26,608 Deferred income tax liabilities: Property and equipment — tax over book depreciation (45,332) (42,413) Non-U.S. intangible assets — tax over book amortization (10,363) (11,086) Intangible assets — tax over book amortization (4,013) (3,331) Right-of-use operating lease assets (8,115) (6,688) Non-U.S. deferred income tax liabilities (8,819) (4,709) Contract revenue adjustment (4,790) (4,023) Other (600) (133) Total deferred income tax liabilities (82,032) (72,383) Net deferred income taxes $ (48,230) $ (45,775) The Company determined that it is more-likely-than-not that it will not realize certain deferred tax assets related to net operating loss carryforwards on certain Canadian subsidiaries and therefore recorded a valuation allowance against the deferred tax assets for those entities. Earnings from the Company’s Canadian subsidiaries are indefinitely reinvested in Canada, therefore as of December 31, 2023, the Company had no undistributed earnings or withholding deferral associated with its Canadian subsidiaries. The Company is subject to taxation in various jurisdictions. The Company’s 2020 through 2022 tax returns are subject to examination by U. S. federal authorities. The Company’s tax returns are subject to examination by various state authorities for the years 2019 through 2022. The Company has recorded a liability for unrecognized tax benefits related to tax positions taken on its various income tax returns. If recognized, the entire amount of unrecognized tax benefits would favorably impact the effective tax rate that is reported in future periods. The decrease in the unrecognized tax benefits as of December 31, 2023 was primarily due to the lapses in the applicable statutes of limitations. The total unrecognized tax benefits is expected to be reduced by less than $0.2 million within the next 12 months. Interest and penalties related to uncertain income tax positions are included as a component of income tax expense in the Financial Statements. The following is a reconciliation of the beginning and ending liability for unrecognized tax benefits at December 31: (in thousands) 2023 2022 Balance at beginning of period $ 390 $ 328 Gross increases in current period tax positions 54 83 Reductions in tax positions due to lapse of statutory limitations (27) (21) Balance at end of period 417 390 Accrued interest and penalties at end of period 107 99 Total liability for unrecognized tax benefits $ 524 $ 489 The liability for unrecognized tax benefits, including accrued interest and penalties, was included in other liabilities on the accompanying consolidated balance sheets. The amount of interest and penalties charged or credited to income tax expense as a result of the unrecognized tax benefits was not significant in the years ended December 31, 2023, 2022 and 2021. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments As of December 31, 2023, the Company had approximately $32.5 million in outstanding purchase orders for certain construction equipment, with cash payments scheduled to occur in 2024. Insurance and Claims Accruals The Company carries insurance policies, which are subject to certain deductibles and limits, for workers’ compensation, general liability, automobile liability and other insurance coverage. The deductible per occurrence for each line of coverage is up to $1.0 million. The Company’s health benefit plans are subject to stop-loss limits of up to $0.2 million for qualified individuals. Losses up to the deductible and stop-loss 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 total assets on the Company’s consolidated balance sheets. The following table includes the Company’s accrued short- and long-term insurance liabilities at December 31: (in thousands) 2023 2022 Balance at beginning of period $ 80,039 $ 75,058 Net increases in accrued self-insurance 86,093 76,299 Net payments made (86,067) (71,318) Balance at end of period $ 80,065 $ 80,039 Insurance expense, including premiums, for workers’ compensation, general liability, automobile liability, employee health benefits, and other coverages for the years ended December 31, 2023, 2022 and 2021 was $88.3 million, $77.1 million and $65.1 million, respectively. Performance and Payment Bonds and Parent Guarantees In certain circumstances, the Company is required to provide performance and payment bonds in connection with its future performance on certain contractual commitments. The Company has indemnified its sureties for any expenses paid out under these bonds. As of December 31, 2023, an aggregate of approximately $2.44 billion in original face amount of bonds issued by the Company’s sureties were outstanding. The Company estimated the remaining cost to complete these bonded projects was approximately $726.1 million as of December 31, 2023. From time to time, the Company guarantees the obligations of wholly-owned subsidiaries, including obligations under certain contracts with customers, certain lease agreements and, in some states, obligations in connection with obtaining contractors’ licenses. Additionally, from time to time, the Company is required to post letters of credit to guarantee the obligations of its wholly-owned subsidiaries, which reduces the borrowing availability under the Facility. Indemnities From time to time, pursuant to its service arrangements, the Company indemnifies its customers for claims related to the services it provides under those service arrangements. These indemnification obligations may subject the Company to indemnity claims, liabilities and related litigation. The Company is not aware of any material unrecorded liabilities for asserted claims in connection with these indemnification obligations. Collective Bargaining Agreements Most of the Company’s subsidiaries’ craft labor employees are covered by collective bargaining agreements. The agreements require the subsidiaries to pay specified wages, provide certain benefits and contribute certain amounts to multi-employer pension plans. If a subsidiary withdraws from any of the multi-employer pension plans or if the plans were to otherwise become underfunded, the subsidiary could incur liabilities for additional contributions related to these plans. Although the Company has been informed that the status of some multi-employer pension plans to which its subsidiaries contribute have been classified as “critical”, the Company is not currently aware of any potential liabilities related to this issue. See Note 16 — Employee Benefit Plans to the Financial Statements for further information related to the Company’s participation in multi-employer plans. Litigation and Other Legal Matters The Company is from time to time party to various lawsuits, claims, and other legal proceedings that arise in the ordinary course of business. These actions typically seek, among other things, compensation for alleged personal injury, breach of contract, property damages, punitive damages, civil penalties or other losses, or injunctive or declaratory relief. With respect to all such lawsuits, claims and proceedings, the Company records reserves when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. The Company does not believe that any of these proceedings, separately or in the aggregate, would be expected to have a material adverse effect on the Company’s financial position, results of operations or cash flows. The Company is routinely subject to other civil claims, litigation and arbitration, and regulatory investigations arising in the ordinary course of business. Some of these claims and litigations include claims related to the Company’s current services and operations, the Company believes that it has strong defenses to these claims as well as insurance coverages that could contribute to any settlement or liability in the event claims are not resolved in our favor. These claims have not had a material impact on the Company to date, and the Company believes that the likelihood that a future material adverse outcome will result from these claims is remote. However, if facts and circumstances change in the future, the Company cannot be certain that an adverse outcome of one or more of these claims would not have a material adverse effect on the Company’s financial condition, results of operations or cash flows. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company maintains two equity compensation plans under which stock-based compensation has been granted, the 2017 Long-Term Incentive Plan (Amended and Restated as of April 23, 2020) (the “LTIP”) and the 2007 Long-Term Incentive Plan (Amended and Restated as of May 1, 2014) (the “2007 LTIP” and, collectively with the LTIP, the “Long-Term Incentive Plans”). Upon the initial adoption of the LTIP in 2017, awards were no longer granted under the 2007 LTIP. The LTIP was approved by our shareholders and provides for grants of (a) incentive stock options qualified as such under U.S. federal income tax laws, (b) stock options that do not qualify as incentive stock options, (c) stock appreciation rights, (d) restricted stock awards, (e) restricted stock units, (f) performance awards, (g) phantom stock, (h) stock bonuses, (i) dividend equivalents, or (j) any combination of such awards. The LTIP permits the granting of up to 1,500,000 shares to directors, officers and other employees of the Company. Grants of awards to employees are approved by the Compensation Committee of the Board of Directors and grants to independent members of the Board of Directors are approved by the Board of Directors. All awards are made with an exercise price or base price, as the case may be, that is not less than the full fair market value per share on the date of grant. No stock option or stock appreciation right may be exercised more than 10 years from the date of grant. Shares issued as a result of stock option exercises or stock grants are made available from authorized unissued shares of common stock or treasury stock. Stock Options The Company has not awarded any stock options since 2013. Stock options granted to the Company’s employees or directors were granted with an exercise price equal to the market price of the Company’s stock on the date of grant. The Company used the Black-Scholes-Merton option-pricing model to estimate the fair value of options as of the date of grant. All stock options were fully expensed as of December 31, 2016. Following is a summary of stock option activity for the three-year period ended December 31, 2023: Options Weighted- Weighted- Aggregate Outstanding at January 1, 2021 24,557 $ 22.94 Exercised (21,806) $ 22.84 Expired (42) $ 24.68 Outstanding and Exercisable at December 31, 2021 2,709 $ 23.74 1.1 years $ 235 Exercised (1,680) $ 23.67 Expired (160) $ 19.37 Outstanding and Exercisable at December 31, 2022 869 $ 24.68 0.2 years $ 63 Exercised (827) $ 24.68 Expired (42) $ 24.68 Outstanding and Exercisable at December 31, 2023 — $ — 0.0 years $ — During the years ended December 31, 2023, 2022 and 2021, the intrinsic value of stock options exercised was $0.1 million, $0.1 million and $1.2 million, respectively. Time-Vested Stock Awards The company grants time-vested stock awards under the LTIP in the form of restricted stock awards, restricted stock units or equity-settled phantom stock. The grant date fair value of the time-vested stock awards is equal to the closing market price of the Company’s common stock on the date of grant. Time-vested stock awards granted under the LTIP to eligible employees in 2023 vest ratably on an annual basis, over three years. Time-vested stock awards granted under the LTIP to non-employee directors in 2023 vest over a one year period. The Company recognizes stock-based compensation expense related to restricted stock awards and restricted stock units based on the grant date fair value, which was the closing price of the Company’s stock on the date of grant. The fair value is expensed over the service period, which is generally three years for time-vested stock awards granted to eligible employees and one year for non-employee directors. During the years ended December 31, 2023, 2022 and 2021, time-vested stock vesting activity settled in common stock had an intrinsic value, at the time of vesting, of $7.3 million, $7.0 million and $5.7 million, respectively. Following is a summary of time-vested stock awards activity for the three-year period ended December 31, 2023: Shares Per Share Weighted- Average Outstanding unvested at January 1, 2021 165,789 $ 28.96 Granted 57,196 $ 66.80 Vested (87,584) $ 29.20 Forfeited (2,904) $ 40.60 Outstanding unvested at December 31, 2021 132,497 $ 44.88 Granted 45,992 $ 76.93 Vested (73,373) $ 42.47 Forfeited (2,500) $ 58.43 Outstanding unvested at December 31, 2022 102,616 $ 69.70 Granted 51,167 $ 117.60 Vested (63,722) $ 59.71 Forfeited (9,323) $ 90.75 Outstanding unvested at December 31, 2023 80,738 $ 105.50 Performance Awards The Company grants performance awards under the LTIP. Under these awards, shares of the Company’s common stock may be earned based on the Company’s performance compared to defined metrics. The number of shares earned under a performance award may vary from zero to 200% of the target shares awarded, based upon the Company’s performance compared to the metrics. The metrics used for the grant are determined by the Compensation Committee of the Board of Directors and may be either based on internal measures such as the Company’s financial performance compared to target or on a market-based metric such as the Company’s stock performance compared to a peer group. Performance awards cliff vest upon attainment of at least the minimum stated performance targets and minimum service requirements and are paid in the Company’s common stock. For performance awards, the Company recognizes stock-based compensation expense based on the grant date fair value of the award. The fair value of internal metric-based performance awards is determined by the closing stock price of the Company’s common stock on the date of the grant. The fair value of market-based performance awards is computed using a Monte Carlo simulation. Performance awards granted in 2023 are expensed over the service period of approximately 2.8 years. The Company adjusts the stock-based compensation expense related to internal metric-based performance awards according to its determination of the shares expected to vest at each reporting date. Stock-based compensation expense related to market metric-based performance awards is expensed at their grant date fair value regardless of performance. During the years ended December 31, 2023, 2022 and 2021, performance award vesting activity settled in common stock had an intrinsic value, at the time of vesting, of $12.0 million, $15.7 million and $12.7 million, respectively. Following is a summary of performance share award activity for the three-year period ended December 31, 2023: Shares Per Share Weighted- Average Outstanding unvested at January 1, 2021 150,339 $ 36.54 Granted at target 42,091 $ 80.11 Earned for performance above target 58,461 $ 40.41 Vested (128,920) $ 39.26 Forfeited (644) $ 39.25 Outstanding unvested at December 31, 2021 121,327 $ 50.06 Granted at target 31,603 $ 118.82 Earned for performance above target 78,684 $ 34.10 Vested (157,368) $ 34.10 Forfeited (738) $ 45.71 Outstanding unvested at December 31, 2022 73,508 $ 96.75 Granted at target 32,994 $ 136.54 Earned for performance above target 38,916 $ 80.07 Vested (77,832) $ 80.07 Forfeited (8,468) $ 108.24 Outstanding unvested at December 31, 2023 59,118 $ 128.29 Stock-based Compensation Expense The Company recognized stock-based compensation expense of approximately $8.4 million, $7.9 million and $7.5 million for the years ended December 31, 2023, 2022 and 2021, respectively, in selling, general and administrative expenses on the Company’s consolidated statements of operations. As of December 31, 2023, there was approximately $9.9 million of unrecognized stock-based compensation expense related to awards granted under the Long-Term Incentive Plans. This included $5.3 million of unrecognized compensation cost related to unvested time-vested stock awards expected to be recognized over a remaining weighted average vesting period of approximately 1.5 years and $4.6 million of unrecognized compensation cost related to unvested performance awards, expected to be recognized over a remaining weighted average vesting period of approximately 1.5 years. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company sponsors multiple defined contribution plans for eligible employees not covered by collective bargaining agreements. The plans include various features such as voluntary employee pre-tax and Roth-based contributions and matching contributions made by the Company. In addition, at the discretion of our Board of Directors, we may make additional profit sharing contributions to the plans. Company contributions under these defined contribution plans are based upon a percentage of income with limitations as defined by each plan. Total contributions for the years ended December 31, 2023, 2022 and 2021 amounted to $15.9 million, $15.7 million, and $17.8 million, respectively. The Company contributes to a number of multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover its union-represented employees, who are represented by more than 300 local unions. The related collective-bargaining agreements between those organizations and the Company, which specify the rate at which the Company must contribute to the multi-employer defined pension plan, expire at different times between 2024 and 2026. The risks of participating in these multiemployer defined benefit pension plans are different from single-employer plans in the following aspects: 1) Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. 2) If a participating employer stops contributing to a plan, the unfunded obligations of the plan may be borne by the remaining participating employers. 3) If the Company chooses to stop participating in a multiemployer plan, it may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability. The amount of additional funds, if any, that the Company may be obligated to contribute to these plans in the future cannot be estimated due to uncertainty of the future levels of work that require the specific use of union employees covered by these plans, as well as the future contribution levels and possible surcharges on contributions applicable to these plans. The following table summarizes plan information relating to the Company’s participation in multi-employer defined benefit pension plans, including company contributions for the last three years, the status under the Pension Protection Act of 2006, as amended by the Consolidated and Further Continuing Appropriations Act of 2015 (“PPA”) of the plans and whether the plans are subject to a funding improvement or rehabilitation plan, or contribution surcharges. The most recent zone status is for the plan’s year-end indicated in the table. The zone status is based on information that the Company received from the plan, as well as from publicly available information on the U.S. Department of Labor website. The PPA zone status for the plan year ended on December 31, 2023 has not been listed because Forms 5500 were not yet available. Among other factors, plans in the red “critical” zone are generally less than 65 percent funded, plans in the yellow “endangered” zone are between 65 and 80 percent funded, and plans in the green zone are at least 80 percent funded. Also listed in the table below are the Company’s contributions to defined contribution plans. Information in the table has been presented separately for individually significant plans and in the aggregate for all other plans. Pension Fund EIN/Pension Pension Protection Act Zone Status Contributions to Plan for the Year ended December 31, Funding Surcharge Status Plan Year Status Plan Year 2023 2022 2021 (in thousands) Defined Benefit Plans: Southern California IBEW-NECA Pension Trust Fund 95-6392774 001 Yellow 6/30/2022 Yellow 6/30/2021 $ 51,136 $ 40,810 $ 39,529 Yes No Eighth District Electrical Pension 84-6100393 001 Green 3/31/2023 Green 3/31/2022 15,158 15,097 12,007 No No National Electrical Benefit Fund 53-0181657 001 Green 12/31/2022 Green 12/31/2021 14,598 13,804 11,627 No No IBEW Local 332 Pension Plan Part A 94-2688032 004 Green 12/31/2022 Green 12/31/2021 4,292 5,723 6,409 No No IBEW Local 769 Management Pension Plan A 86-6049763 001 Green 6/30/2022 Green 6/30/2021 5,222 5,061 3,446 No No IBEW Local Union 1249 Pension Fund 15-6035161 001 Green 12/31/2022 Green 12/31/2021 5,706 3,791 3,684 No No Laborers Local Union 158 Pension Fund 23-6580323 001 Green 12/31/2022 Green 12/31/2021 3,246 256 37 No No Defined Contribution Plans: National Electrical Annuity Plan 52-6132372 001 n/a n/a 30,758 36,982 27,974 n/a n/a Eighth District Electrical Pension Fund Annuity Plan 84-6100393 002 n/a n/a 3,624 3,347 5,097 n/a n/a San Mateo Country Electrical Construction Industry Retirement Plan 51-6052127 001 n/a n/a 4,752 2,953 5,976 n/a n/a All other plans: 40,716 28,014 30,094 Total contributions: $ 179,208 $ 155,838 $ 145,880 Total contributions to these plans, at any given time, correspond to the number of union employees employed and the plans in which they participate, which varies depending upon location, the number of ongoing projects and the need for union resources in connection with such projects at a given time. The PPA data presented in the table above represents data available to us for the two most recent plan years. One of the Company’s subsidiaries was listed in the Eighth District Electrical Pension Fund’s Form 5500 as providing more than five percent of the total contributions to that plan or was one of the top-ten highest contributors to that plan, for the plan years ended March 31, 2023, 2022 and 2021, in the National Electrical Benefit Fund’s Form 5500 as providing more than five percent of the total contributions to that plan or was one of the top-ten highest contributors to that plan, for the plan years ended December 31, 2022, and in the IBEW local 769 Management Pension Plan A’s Form 5500 as providing more than five percent of the total contributions to that plan or was one of the top-ten highest contributors to that plan, for the plan years ended June 30, 2022, 2021 and 2020. Another of the company’s subsidiaries was listed in the Southern California IBEW-NECA Pension Trust Fund Plan’s Form 5500 as providing more than five percent of the total contributions to that plan or was one of the top-ten highest contributors to that plan, for the plan year ended June 30, 2022, 2021 and 2020, and in the IBEW Local 332 Pension Plan Part A’s Form 5500 as providing more than five percent of the total contributions to that plan or was one of the top-ten highest contributors to that plan, for the plan years ended December 31, 2022. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information MYR Group is a holding company of specialty contractors serving electrical utility infrastructure and commercial construction markets in the United States and 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 costs, professional fees, IT expenses and management fees. Transmission and Distribution: The T&D segment provides a broad range of services on electric transmission and distribution networks and substation facilities which include design, engineering, procurement, construction, upgrade, maintenance and repair services with a particular focus on construction, maintenance and repair. T&D services include the construction and maintenance of high voltage transmission lines, substations and lower voltage underground and overhead distribution systems, clean energy projects and electric vehicle charging infrastructure. The T&D segment also provides emergency restoration services in response to hurricane, wildfire, ice or other damage. T&D customers include investor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners and other contractors. Commercial and Industrial: The C&I segment provides services such as the design, installation, maintenance and repair of commercial and industrial wiring, the installation of intelligent transportation systems, roadway lighting, signalization and electric vehicle charging infrastructure. Typical C&I contracts cover electrical contracting services for airports, hospitals, data centers, hotels, stadiums, commercial and industrial facilities, clean energy projects, manufacturing plants, processing facilities, water/waste-water treatment facilities, mining facilities, and transportation control and management systems. The C&I segment generally provides electric construction and maintenance services as a subcontractor to general contractors in the C&I industry, but also contracts directly with facility owners. The information in the following table is derived from the segment’s internal financial reports used for corporate management purposes: For the Year ended December 31, (in thousands) 2023 2022 2021 Contract revenues: T&D $ 2,089,196 $ 1,745,792 $ 1,301,587 C&I 1,554,709 1,262,750 1,196,702 $ 3,643,905 $ 3,008,542 $ 2,498,289 Income from operations: T&D $ 149,703 $ 138,886 $ 132,738 C&I 45,889 43,159 54,418 General Corporate (66,499) (67,138) (68,596) $ 129,093 $ 114,907 $ 118,560 The Company does not identify capital expenditures and total assets by segment in its internal financial reports due in part to the shared use of a centralized fleet of vehicles and specialized equipment. Identifiable assets, consisting of contract receivables, contract assets, construction materials inventory, goodwill and intangibles for each segment are as follows as of December 31: (in thousands) 2023 2022 T&D $ 632,788 $ 500,568 C&I 502,451 473,101 General Corporate 443,507 425,189 $ 1,578,746 $ 1,398,858 An allocation of total depreciation, including depreciation of shared construction equipment, and amortization to each segment is as follows: For the Year ended December 31, (in thousands) 2023 2022 2021 Depreciation and amortization T&D $ 51,470 $ 50,825 $ 38,668 C&I 7,668 7,345 7,537 $ 59,138 $ 58,170 $ 46,205 As of December 31, 2023 and 2022, there were $169.0 million and $146.1 million, respectively, of identifiable assets attributable to Canadian operations. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company computes earnings per share using the treasury stock method. Under the treasury stock method, basic earnings per share attributable to MYR Group Inc. are computed by dividing net income attributable to MYR Group Inc. by the weighted average number of common shares outstanding during the period. Diluted earnings per share attributable to MYR Group Inc. are computed by dividing net income attributable to MYR Group Inc. by the weighted average number of common shares outstanding during the period plus all potentially dilutive common stock equivalents, except in cases where the effect of the common stock equivalent would be anti-dilutive. Net income attributable to MYR Group Inc. and the weighted average number of common shares used to compute basic and diluted earnings per share was as follows: For the Year ended December 31, (in thousands, except per share data) 2023 2022 2021 Numerator: Net income $ 90,990 $ 83,381 $ 85,006 Less: net loss attributable to noncontrolling interest — — (4) Net income attributable to MYR Group Inc. $ 90,990 $ 83,381 $ 85,010 Denominator: Weighted average common shares outstanding 16,682 16,760 16,838 Weighted average dilutive securities 155 220 323 Weighted average common shares outstanding, diluted 16,837 16,980 17,161 Net income per share attributable to MYR Group Inc.: Basic $ 5.45 $ 4.98 $ 5.05 Diluted $ 5.40 $ 4.91 $ 4.95 For the years ended December 31, 2023, 2022 and 2021, certain common stock equivalents were excluded from the calculation of dilutive securities because their inclusion would have been anti-dilutive. 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 performance awards that were excluded from the calculation of dilutive securities: (in thousands) 2023 2022 2021 Performance awards 13 13 — Share Repurchase Program On November 1, 2023, the Company announced that its Board of Directors had authorized a new $75.0 million share repurchase program (the "Repurchase Program") which became effective on November 9, 2023. The Repurchase Program will expire on May 8, 2024, or when the authorized funds are exhausted, whichever is earlier. The Company’s prior $75.0 million repurchase program that commenced on May 9, 2023 expired on November 8, 2023. During 2023 the Company repurchased 25,042 shares of its common stock under multiple repurchase programs at a weighted-average price of $114.55 per share. All of the shares repurchased were retired. The shares repurchased resulted in no change to authorized shares and an increase to unissued shares. As of December 31, 2023, the Company had $72.5 million of remaining availability to repurchase shares of the Company’s common stock under the Repurchase Program. During 2023 and 2022, the Company repurchased 76,150 and 68,675 shares of stock, respectively, for approximately $7.9 million and $6.8 million, respectively, from its employees to satisfy tax obligations on shares vested under the LTIP. All of the shares repurchased were retired and returned to authorized but unissued stock. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income attributable to MYR Group | $ 90,990 | $ 83,381 | $ 85,010 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Organization, Business and Si_2
Organization, Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | Consolidation The accompanying Financial Statements include the results of operations of the Company and its subsidiaries. Significant intercompany transactions and balances have been eliminated. Certain reclassifications were made to prior year amounts to conform to the current year presentation. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for goods or services provided. Revenue associated with contracts with customers is recognized over time as the Company’s performance creates or enhances customer-controlled assets or creates or enhances an asset with no alternative use, for which the Company has an enforceable right to receive compensation as defined under the contract. To determine the amount of revenue to recognize over time, the Company estimates profit by determining the difference between total estimated revenue and total estimated cost of a contract. In addition, the Company estimates a cost accrual every quarter that represents unbilled invoicing activity for services performed by subcontractors and suppliers during the quarter, and estimates revenue from the contract cost portion of this accrual based on current gross margin rates to be consistent with its cost method of revenue recognition. The estimated value of unbilled amounts are determined using a regression analysis that estimates value based on the Company’s historical experience, and is adjusted for large individual projects. The profit and corresponding revenue is recognized over the contract term based on costs incurred under the cost-to-cost method. The Company utilizes the cost-to-cost method as it believes cost incurred best represents the amount of work completed and remaining on projects, and is the most common basis for computing percentage of completion in the industry. For purposes of recognizing revenue, the Company follows the five-step approach outlined in Accounting Standards Codification (“ASC”) 606. As the cost-to-cost method is driven by incurred cost, the Company calculates the percentage of completion by dividing costs incurred to date by the total estimated cost. The percentage of completion is then multiplied by estimated revenues to determine inception-to-date revenue. Revenue recognized for the period is the current inception-to-date recognized revenue less the prior period inception-to-date recognized revenue. If a contract is projected to result in a loss, the entire contract loss is recognized in the period when the loss was first determined and the amount of the loss is updated in subsequent reporting periods. Because the Company’s billings are based on contract terms and do not coincide with our progress in a project, revenue recognition also includes an amount related to a contract asset or contract liability. If the recognized revenue is greater than the amount billed to the customer, a contract asset is recorded. Additionally, the contract asset includes retainage billed to the customer that cannot be collected until the contract work has been completed and approved. Conversely, if the amount billed to the customer is greater than the recognized revenue, a contract liability is recorded. Additionally, the contract liability includes a liability for the excess of costs over revenues for all contracts that are in a loss position. Contract costs incurred to date and expected total contract costs are continuously monitored during the term of the contract. Changes in the job performance, job conditions and final contract settlements are factors that influence management’s assessment of total contract value and the total estimated costs to complete those contracts, and therefore, profit and revenue recognition. Additionally, the Company estimates costs to complete on fixed price contracts which are determined on an individual contract basis by evaluating each project’s status as of the balance sheet date, and using our historical experience with the level of effort required to complete the underlying project. Claims and change orders are also measured based on our historical experience with individual customers and similar contracts, and are evaluated by management individually. A change order is a modification to a contract that changes the provisions of the contract, typically resulting from changes in scope, specifications, design, manner of performance, facilities, equipment, materials, sites, or period of completion of the work under the contract. A claim is an amount in excess of the agreed-upon contract price that the Company seeks to collect from its clients or others for client-caused delays, errors in specifications and designs, contract terminations, change orders that are either in dispute or are unapproved as to both scope and price, or other causes. The Company includes these estimated amounts of variable consideration to the extent that it is probable there will not be a significant reversal of revenue. Some of the Company’s contracts may have contract terms that include variable consideration such as safety or performance bonuses or liquidated damages. In accordance with ASC 606, the Company estimates the variable consideration using one of two methods. In contracts in which there is a binary outcome, the most likely amount method is used. In instances in which there is a range of possible outcomes, the expected value method is used. In accordance with ASC 606, the Company includes the estimated amount of variable consideration in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative recognized revenue will not occur when the final outcome of the variable consideration is determined. In contracts in which a significant reversal may occur, the Company uses constraint in recognizing revenue on variable consideration. Although the Company often enters into contracts that contain liquidated damage clauses, the Company rarely incurs them, and as such, the Company does not include amounts associated with liquidated damage clauses until it is probable that liquidated damages will occur. These items are continually monitored by multiple levels of management throughout the reporting period. A portion of the work the Company performs requires financial assurances in the form of performance and payment bonds or letters of credit at the time of execution of the contract. Many of the Company’s contracts include retention provisions of up to 10%, which are generally withheld from each progress payment as retainage until the contract work has been completed and approved. The Company provides warranties to customers on a basis customary to the industry; however, the warranty period does not typically exceed one year. Historically, warranty claims have not been material to the Company. Total revenues do not include sales tax as the Company considers itself a pass-through conduit for collecting and remitting sales taxes. Sales tax collected from customers is included in other current liabilities on the Company’s consolidated balance sheets. |
Joint Ventures and Noncontrolling Interests | Joint Ventures and Noncontrolling Interests The Company accounts for investments in joint ventures using the proportionate consolidation method for income statement reporting and under the equity method for balance sheet reporting, unless the Company has a controlling interest causing the joint venture to be consolidated with equity owned by other joint venture partners recorded as noncontrolling interests. Under the proportionate consolidation method, joint venture activity is allocated to the appropriate line items found on the consolidated statements of operations in proportion to the percentage of participation the Company has in the joint venture. During the years ended December 31, 2023, 2022 and 2021, the Company recognized its proportionate share of joint venture revenues of $33.0 million, $11.3 million, and $26.1 million, respectively. Under the equity method the net investment in joint ventures is stated as a single item on the Company’s consolidated balance sheets. If an investment in a joint venture contains a recourse or unfunded commitment to provide additional equity, distributions and/or losses in excess of the investment a liability is recorded in other current liabilities on the Company’s consolidated balance sheets. For joint ventures which the Company does not have a controlling interest, the Company’s share of any profits and assets and its share of any losses and liabilities are recognized based on the Company’s stated percentage partnership interest in the joint venture and are typically recorded by the Company one month in arrears. The investments in joint ventures are recorded at cost and the carrying amounts are adjusted to recognize the Company’s proportionate share of cumulative income or loss, additional contributions made and dividends and capital distributions received. The Company records the effect of any impairment or any other-than-temporary decrease in the value of the joint venture investment as incurred, which may or may not be one month in arrears, depending on when the Company obtains the joint venture activity information. Additionally, the Company continually assesses the fair value of its investment in unconsolidated joint ventures despite using information that is one month in arrears for regular reporting purposes. The Company includes only its percentage ownership of each joint venture in its backlog. |
Foreign Currency | Foreign Currency The functional currency for the Company’s Canadian operations is the Canadian dollar. Assets and liabilities denominated in Canadian dollars are translated into U.S. dollars at the end-of-period exchange rate. Revenues and expenses are translated using average exchange rates for the periods reported. Equity accounts are translated at historical rates. Cumulative translation adjustments are included as a separate component of accumulated other comprehensive income in shareholders’ equity. Foreign currency transaction gains and losses, arising primarily from changes in exchange rates on short-term monetary assets and liabilities, and intercompany loans that are not deemed long-term investment accounts are recorded in the “other income (expense), net” line on the Company’s consolidated statements of operations. Foreign currency gains or losses, recorded in other income (expense), net, for the year ended December 31, 2023 and 2022, were not significant, and losses were $0.1 million for the year ended December 31, 2021. Foreign currency translation gains and losses, arising from intercompany loans that are deemed long-term investment accounts, are recorded in the foreign currency translation adjustment line on the Company’s consolidated statements of comprehensive income. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the period reported. Actual results could differ from those estimates. The most significant estimates are related to estimates of costs to complete on contracts, pending change orders and claims, shared savings, insurance reserves, income tax reserves, estimates surrounding stock-based compensation, acquisition-related contingent earn-out consideration liabilities, the recoverability of goodwill and intangibles and allowance for doubtful accounts. The Company estimates a cost accrual every period that represents costs incurred but not invoiced for services performed or goods delivered during the period, and estimates revenue from the contract cost portion of these accruals based on current gross margin rates to be consistent with its cost method of revenue recognition. As of December 31, 2023 and 2022, the Company recognized revenues of $76.5 million and $19.6 million, respectively, related to significant change orders and/or claims that had been included as contract price adjustments on certain contracts, some of which are multi-year projects. These change orders and/or claims are in the process of being negotiated in the normal course of business, and a portion of these recognized revenues had been included in multiple periods. These aggregate amounts, which were included in “Contract assets” in the accompanying consolidated balance sheets, represent the Company’s estimates of additional contract revenues that were earned and probable of collection; however, the amount ultimately realized could be significantly higher or lower than the estimated amount. The cost-to-cost method of accounting requires the Company to make estimates about the expected revenue and gross profit on each of its contracts in process. During the year ended December 31, 2023, changes in estimates pertaining to certain projects decreased consolidated gross margin by 1.7%, which resulted in decreases in operating income of $62.2 million, net income of $43.6 million and diluted earnings per common share attributable to MYR Group Inc. of $2.59. The estimates are reviewed and revised quarterly, as needed. Additional discussion on the impact of these estimate changes can be found in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” During the year ended December 31, 2022, changes in estimates pertaining to certain projects decreased consolidated gross margin by 0.4%, which resulted in decreases in operating income of $9.8 million, net income of $6.9 million and diluted earnings per common share attributable to MYR Group Inc. of $0.41. During the year ended December 31, 2021, changes in estimates pertaining to certain projects increased consolidated gross margin by 0.4%, which resulted in increases in operating income of $9.2 million, net income attributable to MYR Group Inc. of $6.6 million and diluted earnings per common share attributable to MYR Group Inc. of $0.39. |
Advertising | Advertising Advertising costs are expensed when incurred. Advertising costs, included in selling, general and administrative expenses, were $1.8 million, $1.2 million and $0.8 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Income Taxes | Income Taxes The Company follows the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recorded for future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, and are measured using the enacted tax rates and laws that are expected to be in effect when the underlying assets or liabilities are recovered or settled. The Company also evaluates whether the recorded deferred tax assets and valuation allowances can be realized and, when necessary, reduces the amounts to what is expected to be realized. Interest and penalties related to uncertain income tax positions are included in income tax expense on the Company’s consolidated statements of operations. Interest and penalties actually incurred are charged to the interest expense and the “other income (expense), net” line, respectively. |
Stock-Based Compensation | Stock-Based Compensation The Company determines compensation expense for stock-based awards based on the estimated fair values at the grant date and recognizes the related compensation expense over the vesting period. The Company uses the straight-line amortization method to recognize compensation expense related to stock-based awards, such as restricted stock units, that have only service conditions. This method recognizes stock compensation expense on a straight-line basis over the requisite service period for the entire award. The Company recognizes compensation expense related to performance awards that vest based on internal performance metrics and service conditions on a straight-line basis over the service period, but adjusts inception-to-date expense based upon our determination of the potential achievement of the performance target at each reporting date. The Company recognizes compensation expense related to performance awards with market-based performance metrics on a straight-line basis over the requisite service period. The Company recognizes forfeitures as they occur. Shares issued under the Company’s stock-based compensation program are taken out of authorized but unissued shares. |
Earnings Per Share | Earnings Per Share The Company computes earnings per share using the treasury stock method. Under the treasury stock method, basic earnings per share attributable to MYR Group Inc. are computed by dividing net income attributable to MYR Group Inc. by the weighted average number of common shares outstanding during the period. Diluted earnings per share attributable to MYR Group Inc. are computed by dividing net income attributable to MYR Group Inc. 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. As of December 31, 2023 and 2022, the Company held its cash in checking accounts or in highly liquid money market accounts. The Company’s banking arrangements allow the Company to fund outstanding checks when presented to financial institutions for payment. The Company funds all intraday bank balance overdrafts during the same business day. Checks issued and outstanding in excess of bank balances are recorded in accounts payable on the Company’s consolidated balance sheets and are reflected as a financing activity on the Company’s Consolidated Statements of Cash Flows. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts The Company does not charge interest to its customers and carries its customer receivables at their face amounts, net of contract retainage, less an allowance for doubtful accounts. Based on the Company’s experience in recent years, the majority of customer balances at each balance sheet date are collected within twelve months. As is common practice in the industry, the Company classifies all accounts receivable as current assets. The Company grants trade credit, on a non-collateralized basis (with the exception of lien rights against the property in certain cases), to its customers and is subject to potential credit risk related to changes in business and overall economic activity. The Company analyzes specific accounts receivable balances, historical bad debts, customer credit-worthiness, current economic trends and changes in customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. In the event that a customer balance is deemed to be uncollectible, the account balance is written-off against the allowance for doubtful accounts. |
Classification of Contract Assets and Liabilities | Classification of Contract Assets and Liabilities The Company recognizes revenue associated with its contracts with customers over time, for which the Company has an enforceable right to receive compensation. Many of our contracts contain specific provisions that determine when the Company can bill for its work performed under these contracts. Any revenue earned on a contract that has not yet been billed to the customer is recorded as a contract asset on the Company’s consolidated balance sheets. Contract retainages associated with contract work that has been completed and billed but not paid by its customers until the contracts are substantially complete, pursuant to contract retainage provisions under the contract, are also included in contract assets. The Company’s consolidated balance sheets present contract liabilities that contain deferred revenue that represent any costs incurred on contracts in process for which revenue has not yet been recognized. Additionally, accruals for contracts in a loss provision are included in contract liabilities. |
Property and Equipment | Property and Equipment Property and equipment is carried at cost, except for assets acquired in a business combination which are recorded at fair value at the date of acquisition. Depreciation is computed using the straight-line method over estimated useful lives. Major modifications or refurbishments which extend the useful life of the assets are capitalized and depreciated over the adjusted remaining useful life of the assets. Upon retirement or disposition of property and equipment, the cost and related accumulated depreciation are removed and any resulting gain or loss is recognized in income from operations. The cost of maintenance and repairs is charged to expense as incurred. Property and equipment is reviewed for impairment and tested for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying value of property and equipment exceeds its fair value, an impairment charge would be recorded in the statement of operations. |
Leases | Leases The Company enters into non-cancelable leases for some of our facility, vehicle and equipment needs. These leases allow the Company to conserve cash by paying a monthly lease rental fee for the use of facilities, vehicles and equipment rather than purchasing them. The Company’s leases have remaining terms ranging from one Finance Leases. The Company leases some vehicles and certain equipment under finance leases. The economic substance of the leases is a financing transaction for acquisition of the vehicles and equipment. Accordingly, the right-of-use assets for these leases are included on the Company’s consolidated balance sheets in property and equipment, net of accumulated depreciation, with a corresponding amount recorded in current portion of finance lease obligations or finance lease obligations, net of current maturities, as appropriate. The finance lease assets are amortized over the life of the lease or, if shorter, the life of the leased asset, on a straight-line basis and included in depreciation expense. The financing component associated with finance lease obligations is included in interest expense. Generally, for the Company’s finance leases an implicit rate to calculate present value is provided in the lease agreement. However, if a rate in not provided the Company determines this rate by estimating the Company’s incremental borrowing rate, utilizing the borrowing rates associated with the Company’s various debt instruments. Operating Right-of-Use Leases. |
Insurance | Insurance The Company carries insurance policies, which are subject to certain deductibles, for workers’ compensation, general liability, automobile liability and other coverages. The deductible for each line of coverage is up to $1.0 million. Certain health benefit plans are subject to a stop-loss limit of up to $0.2 million, for qualified individuals. Losses up to the deductible amounts are accrued based upon the Company’s estimates of the ultimate liability for claims reported and an estimate of claims incurred but not yet reported. The insurance and claims accruals are based on known facts, actuarial estimates and historical trends. While recorded accruals are based on the ultimate liability, which includes amounts in excess of the deductible, a corresponding receivable for amounts in excess of the deductible is included in current assets on the Company’s consolidated balance sheets. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill and intangible assets with indefinite lives are not amortized. Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives. The Company performs either a qualitative or quantitative assessment to review goodwill and intangible assets with indefinite lives for impairment on an annual basis. This assessment is performed at the beginning of the fourth quarter, or when circumstances change, such as a significant adverse change in the business climate or the decision to sell a business, both of which would indicate that impairment may have occurred. Intangible assets with finite lives are also reviewed for impairment and tested for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. A qualitative assessment considers financial, industry, segment and macroeconomic factors, if the qualitative assessment indicates a potential for impairment, a quantitative assessment is performed to determine if impairment exists. The quantitative assessment begins with a comparison of the fair value of the reporting unit or intangible asset with its carrying value. If the carrying amount of the reporting unit or intangible asset exceeds its fair value, an impairment loss would be recognized in an amount equal to that excess, limited to the total amount of the goodwill allocated to the reporting unit or intangible asset. If the carrying value of goodwill or other indefinite lived assets exceeds its implied fair value, an impairment charge would be recorded in the statement of operations. As a result of the annual qualitative review process in 2023 and 2022, the Company determined it was not necessary to perform a quantitative assessment. In 2021, the Company performed a quantitative assessment on goodwill and intangible assets with indefinite lives, this assessment did not indicate that the Company’s goodwill or indefinite lived intangible assets were impaired. |
Concentrations | Concentrations Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company maintains substantially all of its cash and cash equivalent balances with large financial institutions which are believed to be high quality institutions. The Company is subject to a concentration of risk because it derives a significant portion of its revenues from a few customers. The Company’s top ten customers accounted for approximately 37.9%, 35.4%, and 34.9% of consolidated revenues for the years ended December 31, 2023, 2022 and 2021, respectively. For the years ended December 31, 2023, 2022 and 2021, no single customer accounted for more than 10.0% of annual revenues. The Company grants trade credit under contractual payment terms, generally without collateral, to its customers, which include high credit quality electric utilities, governmental entities, general contractors and builders, owners and managers of commercial and industrial properties. Consequently, the Company is subject to potential credit risk related to changes in business and economic factors. However, the Company generally has certain statutory lien rights with respect to services provided. Under certain circumstances such as foreclosures or negotiated settlements, the Company may take title to the underlying assets in lieu of cash in settlement of receivables. As of December 31, 2023 and 2022, none of the Company’s customers individually exceeded 10.0% of accounts receivable. The Company believes the terms and conditions in its contracts, billing and collection policies are adequate to minimize the potential credit risk. As of December 31, 2023, approximately 84% of the Company’s craft labor employees were covered by collective bargaining agreements. Although the majority of these agreements prohibit strikes and work stoppages, the Company cannot be certain that strikes or work stoppages will not occur in the future. |
Canadian Emergency Wage Subsidy | Canadian Emergency Wage Subsidy (CEWS) In 2020 and 2021, certain C&I segment Canadian operations of the Company qualified for and applied for a wage subsidy under the Canada Emergency Wage Subsidy (“CEWS”) program. Payroll subsidies received under CEWS totaled $2.3 million and were initially recorded in the "other current liabilities" line on the Company’s consolidated balance sheets. Once the qualification criteria was met in 2022, these funds were recorded to the “ other income (expense) |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Changes to GAAP are typically established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs. The Company, based on its assessment, determined that any recently issued or proposed ASUs not listed below are either not applicable to the Company or will have minimal impact on its Financial Statements when adopted. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant reportable segment expenses and other disclosure requirements. The update is effective for annual reporting periods beginning after December 15, 2023, with early adoption permitted. The guidance requires application on a retrospective basis. The Company is currently evaluating the impact of the new standard on its consolidated financial statements and disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, |
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. |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of acquisition | The following table summarizes the allocation of the opening balance sheet as of the date of the Powerline Plus Companies acquisition: (in thousands) January 4, 2022 acquisition date (initial estimates) Measurement Final Acquisition Allocation Cash paid $ 114,429 $ — $ 114,429 Contingent consideration - fair value at acquisition date 10,608 (9,743) 865 Net asset and other adjustments 563 (479) 84 Total consideration, net of estimated net asset adjustments 125,600 (10,222) 115,378 Less: Acquired cash (3,853) — (3,853) Total consideration less cash acquired, net of net asset and other adjustments $ 121,747 $ (10,222) $ 111,525 Cash and cash equivalents $ 3,853 $ — $ 3,853 Accounts receivable 12,131 (52) 12,079 Contract assets 12,443 148 12,591 Refundable income taxes 394 482 876 Prepaid expenses and other current assets 1,233 (121) 1,112 Property and equipment 10,366 1,577 11,943 Operating lease right-of-use assets 6,631 (511) 6,120 Intangible assets — 50,246 50,246 Accounts payable (8,095) (466) (8,561) Contract liabilities (1,597) (95) (1,692) Current portion of operating lease obligations (1,224) — (1,224) Current portion of finance lease obligations (1,492) — (1,492) Deferred income tax liabilities (1,358) (13,991) (15,349) Operating lease obligations, net of current maturities (4,897) — (4,897) Finance lease obligations, net of current maturities (3,243) — (3,243) Net identifiable assets and liabilities 25,145 37,217 62,362 Unallocated intangible assets 56,650 (56,650) — Total acquired assets and liabilities 81,795 (19,433) 62,362 Goodwill $ 43,805 $ 9,211 $ 53,016 |
Summary of identifiable intangible assets | The following table summarizes the estimated fair values of identifiable intangible assets and the related weighted average amortization periods as of the acquisition date of the Powerline Plus Companies. Estimated Fair Value at Acquisition Date Weighted Average Amortization Period at Acquisition Date (in thousands) (in years) Amortizable Intangible Assets Customer relationships $ 39,757 15.0 Backlog 4,007 1.0 Below market lease 511 5.0 Total amortizable intangible assets $ 44,275 14.9 Indefinite-lived Intangible Assets Trade names 5,971 Indefinite Total intangible assets $ 50,246 |
Contract Assets and Liabiliti_2
Contract Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | |
Schedule of contract assets and liabilities from contracts with customers | Contract assets consisted of the following at December 31: (in thousands) 2023 2022 Change Unbilled revenue, net $ 217,083 $ 156,266 $ 60,817 Contract retainages, net 203,533 144,349 59,184 Contract assets, net $ 420,616 $ 300,615 $ 120,001 Contract liabilities consisted of the following at December 31: (in thousands) 2023 2022 Change Deferred revenue $ 231,604 $ 223,654 $ 7,950 Accrued loss provision 8,807 3,401 5,406 Contract liabilities $ 240,411 $ 227,055 $ 13,356 The following table provides information about contract assets and contract liabilities from contracts with customers at December 31: (in thousands) 2023 2022 Change Contract assets, net $ 420,616 $ 300,615 $ 120,001 Contract liabilities (240,411) (227,055) (13,356) Net contract assets $ 180,205 $ 73,560 $ 106,645 |
Schedule of net asset position for contracts in process | The net asset position for contracts in process consisted of the following at December 31: (in thousands) 2023 2022 Costs and estimated earnings on uncompleted contracts $ 6,716,990 $ 5,390,535 Less: billings to date 6,731,511 5,457,923 $ (14,521) $ (67,388) The net asset position for contracts in process is included within the contract asset and contract liability in the accompanying consolidated balance sheets as follows at December 31: (in thousands) 2023 2022 Unbilled revenue, net $ 217,083 $ 156,266 Deferred revenue (231,604) (223,654) $ (14,521) $ (67,388) |
Lease Obligations (Tables)
Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Summary of the lease-related assets and liabilities | The following is a summary of the lease-related assets and liabilities recorded: December 31, December 31, (in thousands) Classification on the Consolidated Balance Sheet Assets Operating lease right-of-use assets Operating lease right-of-use assets $ 35,012 $ 30,544 Finance lease right-of-use assets Property and equipment, net of accumulated depreciation 2,363 3,238 Total right-of-use lease assets $ 37,375 $ 33,782 Liabilities Current Operating lease obligations Current portion of operating lease obligations $ 9,237 $ 9,711 Finance lease obligations Current portion of finance lease obligations 2,039 1,127 Total current obligations 11,276 10,838 Non-current Operating lease obligations Operating lease obligations, net of current maturities 25,775 20,845 Finance lease obligations Finance lease obligations, net of current maturities 314 2,313 Total non-current obligations 26,089 23,158 Total lease obligations $ 37,365 $ 33,996 |
Summary of the lease terms and discount rates | The following is a summary of the lease terms and discount rates: December 31, December 31, Weighted-average remaining lease term – finance leases 0.9 years 1.9 years Weighted-average remaining lease term – operating leases 4.0 years 3.6 years Weighted-average discount rate – finance leases 3.1 % 3.0 % Weighted-average discount rate – operating leases 4.0 % 3.8 % |
Schedule of lease costs | The following is a summary of certain information related to the lease costs for finance and operating leases: Year ended December 31, (in thousands) 2023 2022 Lease cost: Finance lease cost: Amortization of right-of-use assets $ 1,792 $ 1,138 Interest on lease liabilities 83 128 Operating lease cost 14,302 13,428 Variable lease costs 353 415 Total lease cost $ 16,530 $ 15,109 |
Summary of supplemental cash flow information | The following is a summary of other information and supplemental cash flow information related to finance and operating leases: Year ended December 31, (in thousands) 2023 2022 Other information: Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 14,519 $ 13,287 Right-of-use asset obtained in exchange for new operating lease obligations $ 11,039 $ 21,663 Right-of-use asset obtained in exchange for new finance lease obligations $ — $ 517 |
Schedule of future minimum operating lease payments | The future undiscounted minimum lease payments, as reconciled to the discounted minimum lease obligation indicated on the Company’s consolidated balance sheets, under current portion of operating lease obligations and operating lease obligations, net of current maturities, as of December 31, 2023 were as follows: (in thousands) Finance Operating Lease Total 2024 $ 2,078 $ 13,148 $ 15,226 2025 320 11,188 11,508 2026 — 9,099 9,099 2027 — 4,568 4,568 2028 — 3,503 3,503 Thereafter — 2,956 2,956 Total minimum lease payments 2,398 44,462 46,860 Financing component (45) (9,450) (9,495) Net present value of minimum lease payments 2,353 35,012 37,365 Less: current portion of operating lease obligations (2,039) (9,237) (11,276) Long-term operating lease obligations $ 314 $ 25,775 $ 26,089 |
Schedule of future minimum finance lease payments | The future undiscounted minimum lease payments, as reconciled to the discounted minimum lease obligation indicated on the Company’s consolidated balance sheets, under current portion of operating lease obligations and operating lease obligations, net of current maturities, as of December 31, 2023 were as follows: (in thousands) Finance Operating Lease Total 2024 $ 2,078 $ 13,148 $ 15,226 2025 320 11,188 11,508 2026 — 9,099 9,099 2027 — 4,568 4,568 2028 — 3,503 3,503 Thereafter — 2,956 2,956 Total minimum lease payments 2,398 44,462 46,860 Financing component (45) (9,450) (9,495) Net present value of minimum lease payments 2,353 35,012 37,365 Less: current portion of operating lease obligations (2,039) (9,237) (11,276) Long-term operating lease obligations $ 314 $ 25,775 $ 26,089 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of accounts receivable | Accounts receivable consisted of the following at December 31: (in thousands) 2023 2022 Contract receivables $ 516,142 $ 471,724 Other 7,738 2,892 523,880 474,616 Less: allowance for doubtful accounts (1,987) (2,073) $ 521,893 $ 472,543 |
Schedule of allowance for doubtful accounts | The roll-forward of activity in the allowance for doubtful accounts was as follows for the years ended December 31: (in thousands) 2023 2022 2021 Balance at beginning of period $ 2,073 $ 2,441 $ 1,696 Less: reduction in (provision for) allowances 85 320 (764) Less: write offs, net of recoveries 3 45 19 Change in foreign currency translation 2 (3) — Balance at end of period $ 1,987 $ 2,073 $ 2,441 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of prepaid expense and other current assets | Prepaid expense and other current assets consisted of the following at December 31: (in thousands) 2023 2022 Prepaid expenses $ 44,410 $ 45,977 Other current assets 2,125 1,847 $ 46,535 $ 47,824 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment consisted of the following at December 31: (dollars in thousands) Estimated 2023 2022 Land — $ 10,351 $ 10,226 Buildings and improvements 3 to 39 44,352 40,480 Construction equipment 3 to 12 578,563 519,421 Office equipment 3 to 10 16,177 14,801 649,443 584,928 Less: accumulated depreciation and amortization (380,465) (351,753) $ 268,978 $ 233,175 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill and intangible assets | Goodwill and intangible assets consisted of the following at December 31: 2023 2022 (in thousands) Gross Accumulated Net Gross Accumulated Net Goodwill T&D $ 93,240 $ — $ 93,240 $ 93,240 $ — $ 93,240 C&I 25,830 — 25,830 25,830 — 25,830 Foreign currency translation (2,117) — (2,117) (3,223) — (3,223) Total goodwill $ 116,953 $ — $ 116,953 $ 115,847 $ — $ 115,847 Amortizable Intangible Assets Backlog $ 9,296 $ 9,296 $ — $ 9,296 $ 9,296 $ — Customer relationships 71,139 20,905 50,234 71,138 16,094 55,044 Trade names 695 403 292 695 357 338 Below market lease 511 200 311 511 102 409 Foreign currency translation (1,768) (270) (1,498) (2,689) (410) (2,279) Indefinite-lived Intangible Assets Trade names 34,412 — 34,412 34,412 — 34,412 Foreign currency translation (235) — (235) (367) — (367) Total intangible assets $ 114,050 $ 30,534 $ 83,516 $ 112,996 $ 25,439 $ 87,557 |
Schedule of estimated future intangible asset amortization expense | As of December 31, 2023, estimated future intangible asset amortization expense for the each of the next five years and thereafter was as follows: (in thousands) Future 2024 $ 4,954 2025 4,954 2026 4,954 2027 4,815 2028 4,805 Thereafter 24,857 Total $ 49,339 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of other current liabilities | Other current liabilities consisted of the following at December 31: (in thousands) 2023 2022 Payroll and incentive compensation $ 39,986 $ 31,355 Union dues and benefits 26,107 21,500 Payroll, sales and other taxes 13,903 6,574 Profit sharing and thrift plan 8,592 9,119 Other 12,005 11,370 $ 100,593 $ 79,918 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of total debt | The table below reflects the Company’s total debt, including borrowings under its credit agreement and equipment notes: (dollars in thousands) Inception Stated Interest Payment Term Outstanding Balance as of December 31, Outstanding Balance as of December 31, Credit Agreement Revolving loans 5/31/2023 Variable Variable 5 $ 13,201 $ 12,915 Equipment Notes Equipment Note 8 12/27/2019 2.75% Semi-annual 5 2,871 3,464 Equipment Note 10 8/26/2022 4.32% Semi-annual 5 20,125 24,119 Other equipment note 4/11/2022 4.55% Monthly 5 44 55 23,040 27,638 Total debt 36,241 40,553 Less: current portion of long-term debt (7,053) (5,074) Long-term debt $ 29,188 $ 35,479 |
Schedule of remaining principal payments for long term obligations | The following table sets forth our remaining principal payments for the Company’s outstanding Equipment Note as of December 31, 2023: (in thousands) Future 2024 $ 7,053 2025 4,364 2026 4,555 2027 7,068 2028 — Thereafter — Total future principal payments $ 23,040 Less: current portion of equipment notes (7,053) Long-term principal obligations $ 15,987 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenue by contact and market type | The components of the Company’s revenue by contract type were as follows for the year ended December 31: 2023 T&D C&I Total (dollars in thousands) Amount Percent Amount Percent Amount Percent Fixed price $ 1,100,273 52.7 % $ 1,274,763 82.0 % $ 2,375,036 65.2 % Unit price 549,221 26.3 92,581 6.0 641,802 17.6 T&E (1) 439,702 21.0 187,365 12.0 627,067 17.2 $ 2,089,196 100.0 % $ 1,554,709 100.0 % $ 3,643,905 100.0 % 2022 T&D C&I Total (dollars in thousands) Amount Percent Amount Percent Amount Percent Fixed price $ 835,288 47.8 % $ 1,051,428 83.3 % $ 1,886,716 62.7 % Unit price 475,276 27.2 78,714 6.2 553,990 18.4 T&E (1) 435,228 25.0 132,608 10.5 567,836 18.9 $ 1,745,792 100.0 % $ 1,262,750 100.0 % $ 3,008,542 100.0 % 2021 T&D C&I Total (dollars in thousands) Amount Percent Amount Percent Amount Percent Fixed price $ 559,861 43.0 % $ 963,477 80.5 % $ 1,523,338 61.0 % Unit price 369,710 28.4 73,826 6.2 443,536 17.7 T&E (1) 372,016 28.6 159,399 13.3 531,415 21.3 $ 1,301,587 100.0 % $ 1,196,702 100.0 % $ 2,498,289 100.0 % (1) The Company T&E contract type includes time-and-equipment, time-and-materials and cost-plus contracts. The components of the Company’s revenue by market type were as follows for the year ended December 31: 2023 2022 2021 (dollars in thousands) Segment Amount Percent Amount Percent Amount Percent Transmission T&D $ 1,380,923 37.9 % $ 1,083,415 36.0 % $ 806,367 32.3 % Distribution T&D 708,273 19.4 662,377 22.0 495,220 19.8 Electrical construction C&I 1,554,709 42.7 1,262,750 42.0 1,196,702 47.9 Total revenue $ 3,643,905 100.0 % $ 3,008,542 100.0 % $ 2,498,289 100.0 % |
Schedule of amount of the remaining performance obligations that the company reasonably estimates will not be recognized within the next twelve months | The following table summarizes the total amount of remaining performance obligations as of December 31, 2023 that the Company expects to be realized, the amount of the remaining performance obligations that the Company reasonably estimates will be recognized within the next twelve months, and the amount estimated to be recognized after the next twelve months. Remaining Performance Obligations as of December 31, 2023 (in thousands) Total Amount estimated to be Amount estimated to be T&D $ 769,128 $ 722,765 $ 46,363 C&I 1,532,019 1,144,243 387,776 Total $ 2,301,147 $ 1,867,008 $ 434,139 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income taxes by geographical area | Income before income taxes by geographic area was, for the years ended December 31: (in thousands) 2023 2022 2021 Federal $ 102,014 $ 104,185 $ 106,956 Foreign 22,990 10,019 9,350 $ 125,004 $ 114,204 $ 116,306 |
Schedule of income tax expense | Income tax expense consisted of the following for the years ended December 31: (in thousands) 2023 2022 2021 Current Federal $ 21,337 $ 13,948 $ 16,512 Foreign 1,821 2,148 1,947 State 7,348 5,154 6,560 30,506 21,250 25,019 Deferred Federal (159) 7,739 5,061 Foreign 3,984 465 287 State (317) 1,369 933 3,508 9,573 6,281 Income tax expense $ 34,014 $ 30,823 $ 31,300 |
Schedule of effective tax rate reconciliation | The differences between the U.S. federal statutory tax rate and the Company’s effective tax rate for operations were as follows for the years ended December 31: 2023 2022 2021 U.S federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of U.S. federal income tax expense 4.4 4.5 4.7 Tax differential on foreign earnings 0.7 0.6 0.5 Non-deductible meals and entertainment 0.5 0.2 0.1 Stock compensation excess tax benefits (2.6) (2.4) (0.8) Uncertain tax positions — 0.1 — Provision to return adjustments, net 0.7 0.7 0.4 Section 162(m) limitation 2.5 2.4 1.1 Other income, net — (0.1) (0.1) Effective rate 27.2 % 27.0 % 26.9 % |
Schedule of net deferred tax assets and (liabilities) | The net deferred tax assets and (liabilities) arising from temporary differences was as follows at December 31: (in thousands) 2023 2022 Deferred income tax assets: Self-insurance reserves $ 3,850 $ 2,979 Contract loss reserves 2,273 842 Stock-based awards 3,336 2,071 Bonus 11,137 8,656 Accrued vacation 2,295 2,227 Accrued profit sharing 1,707 2,030 Operating lease liabilities 8,115 6,691 Non-U.S. operating loss 2,411 2,402 Other 1,090 1,112 Total deferred income tax assets before valuation allowances 36,214 29,010 Less: valuation allowances (2,412) (2,402) Total deferred income tax assets 33,802 26,608 Deferred income tax liabilities: Property and equipment — tax over book depreciation (45,332) (42,413) Non-U.S. intangible assets — tax over book amortization (10,363) (11,086) Intangible assets — tax over book amortization (4,013) (3,331) Right-of-use operating lease assets (8,115) (6,688) Non-U.S. deferred income tax liabilities (8,819) (4,709) Contract revenue adjustment (4,790) (4,023) Other (600) (133) Total deferred income tax liabilities (82,032) (72,383) Net deferred income taxes $ (48,230) $ (45,775) |
Schedule of liability for unrecognized tax benefits reconciliation | The following is a reconciliation of the beginning and ending liability for unrecognized tax benefits at December 31: (in thousands) 2023 2022 Balance at beginning of period $ 390 $ 328 Gross increases in current period tax positions 54 83 Reductions in tax positions due to lapse of statutory limitations (27) (21) Balance at end of period 417 390 Accrued interest and penalties at end of period 107 99 Total liability for unrecognized tax benefits $ 524 $ 489 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of accrued short and long term insurance liabilities | The following table includes the Company’s accrued short- and long-term insurance liabilities at December 31: (in thousands) 2023 2022 Balance at beginning of period $ 80,039 $ 75,058 Net increases in accrued self-insurance 86,093 76,299 Net payments made (86,067) (71,318) Balance at end of period $ 80,065 $ 80,039 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of stock option activity | Following is a summary of stock option activity for the three-year period ended December 31, 2023: Options Weighted- Weighted- Aggregate Outstanding at January 1, 2021 24,557 $ 22.94 Exercised (21,806) $ 22.84 Expired (42) $ 24.68 Outstanding and Exercisable at December 31, 2021 2,709 $ 23.74 1.1 years $ 235 Exercised (1,680) $ 23.67 Expired (160) $ 19.37 Outstanding and Exercisable at December 31, 2022 869 $ 24.68 0.2 years $ 63 Exercised (827) $ 24.68 Expired (42) $ 24.68 Outstanding and Exercisable at December 31, 2023 — $ — 0.0 years $ — |
Schedule of time-vested stock awards activity | Following is a summary of time-vested stock awards activity for the three-year period ended December 31, 2023: Shares Per Share Weighted- Average Outstanding unvested at January 1, 2021 165,789 $ 28.96 Granted 57,196 $ 66.80 Vested (87,584) $ 29.20 Forfeited (2,904) $ 40.60 Outstanding unvested at December 31, 2021 132,497 $ 44.88 Granted 45,992 $ 76.93 Vested (73,373) $ 42.47 Forfeited (2,500) $ 58.43 Outstanding unvested at December 31, 2022 102,616 $ 69.70 Granted 51,167 $ 117.60 Vested (63,722) $ 59.71 Forfeited (9,323) $ 90.75 Outstanding unvested at December 31, 2023 80,738 $ 105.50 |
Schedule of performance share award activity | Following is a summary of performance share award activity for the three-year period ended December 31, 2023: Shares Per Share Weighted- Average Outstanding unvested at January 1, 2021 150,339 $ 36.54 Granted at target 42,091 $ 80.11 Earned for performance above target 58,461 $ 40.41 Vested (128,920) $ 39.26 Forfeited (644) $ 39.25 Outstanding unvested at December 31, 2021 121,327 $ 50.06 Granted at target 31,603 $ 118.82 Earned for performance above target 78,684 $ 34.10 Vested (157,368) $ 34.10 Forfeited (738) $ 45.71 Outstanding unvested at December 31, 2022 73,508 $ 96.75 Granted at target 32,994 $ 136.54 Earned for performance above target 38,916 $ 80.07 Vested (77,832) $ 80.07 Forfeited (8,468) $ 108.24 Outstanding unvested at December 31, 2023 59,118 $ 128.29 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of individually significant multi-employer plans and in aggregate other plans | The following table summarizes plan information relating to the Company’s participation in multi-employer defined benefit pension plans, including company contributions for the last three years, the status under the Pension Protection Act of 2006, as amended by the Consolidated and Further Continuing Appropriations Act of 2015 (“PPA”) of the plans and whether the plans are subject to a funding improvement or rehabilitation plan, or contribution surcharges. The most recent zone status is for the plan’s year-end indicated in the table. The zone status is based on information that the Company received from the plan, as well as from publicly available information on the U.S. Department of Labor website. The PPA zone status for the plan year ended on December 31, 2023 has not been listed because Forms 5500 were not yet available. Among other factors, plans in the red “critical” zone are generally less than 65 percent funded, plans in the yellow “endangered” zone are between 65 and 80 percent funded, and plans in the green zone are at least 80 percent funded. Also listed in the table below are the Company’s contributions to defined contribution plans. Information in the table has been presented separately for individually significant plans and in the aggregate for all other plans. Pension Fund EIN/Pension Pension Protection Act Zone Status Contributions to Plan for the Year ended December 31, Funding Surcharge Status Plan Year Status Plan Year 2023 2022 2021 (in thousands) Defined Benefit Plans: Southern California IBEW-NECA Pension Trust Fund 95-6392774 001 Yellow 6/30/2022 Yellow 6/30/2021 $ 51,136 $ 40,810 $ 39,529 Yes No Eighth District Electrical Pension 84-6100393 001 Green 3/31/2023 Green 3/31/2022 15,158 15,097 12,007 No No National Electrical Benefit Fund 53-0181657 001 Green 12/31/2022 Green 12/31/2021 14,598 13,804 11,627 No No IBEW Local 332 Pension Plan Part A 94-2688032 004 Green 12/31/2022 Green 12/31/2021 4,292 5,723 6,409 No No IBEW Local 769 Management Pension Plan A 86-6049763 001 Green 6/30/2022 Green 6/30/2021 5,222 5,061 3,446 No No IBEW Local Union 1249 Pension Fund 15-6035161 001 Green 12/31/2022 Green 12/31/2021 5,706 3,791 3,684 No No Laborers Local Union 158 Pension Fund 23-6580323 001 Green 12/31/2022 Green 12/31/2021 3,246 256 37 No No Defined Contribution Plans: National Electrical Annuity Plan 52-6132372 001 n/a n/a 30,758 36,982 27,974 n/a n/a Eighth District Electrical Pension Fund Annuity Plan 84-6100393 002 n/a n/a 3,624 3,347 5,097 n/a n/a San Mateo Country Electrical Construction Industry Retirement Plan 51-6052127 001 n/a n/a 4,752 2,953 5,976 n/a n/a All other plans: 40,716 28,014 30,094 Total contributions: $ 179,208 $ 155,838 $ 145,880 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of segment's internal financial reports | The information in the following table is derived from the segment’s internal financial reports used for corporate management purposes: For the Year ended December 31, (in thousands) 2023 2022 2021 Contract revenues: T&D $ 2,089,196 $ 1,745,792 $ 1,301,587 C&I 1,554,709 1,262,750 1,196,702 $ 3,643,905 $ 3,008,542 $ 2,498,289 Income from operations: T&D $ 149,703 $ 138,886 $ 132,738 C&I 45,889 43,159 54,418 General Corporate (66,499) (67,138) (68,596) $ 129,093 $ 114,907 $ 118,560 |
Schedule of assets allocation by segment | Identifiable assets, consisting of contract receivables, contract assets, construction materials inventory, goodwill and intangibles for each segment are as follows as of December 31: (in thousands) 2023 2022 T&D $ 632,788 $ 500,568 C&I 502,451 473,101 General Corporate 443,507 425,189 $ 1,578,746 $ 1,398,858 |
Schedule of depreciation and amortization by segment | An allocation of total depreciation, including depreciation of shared construction equipment, and amortization to each segment is as follows: For the Year ended December 31, (in thousands) 2023 2022 2021 Depreciation and amortization T&D $ 51,470 $ 50,825 $ 38,668 C&I 7,668 7,345 7,537 $ 59,138 $ 58,170 $ 46,205 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of weighted average number of common shares used to compute basic and dilute earnings per share | Net income attributable to MYR Group Inc. and the weighted average number of common shares used to compute basic and diluted earnings per share was as follows: For the Year ended December 31, (in thousands, except per share data) 2023 2022 2021 Numerator: Net income $ 90,990 $ 83,381 $ 85,006 Less: net loss attributable to noncontrolling interest — — (4) Net income attributable to MYR Group Inc. $ 90,990 $ 83,381 $ 85,010 Denominator: Weighted average common shares outstanding 16,682 16,760 16,838 Weighted average dilutive securities 155 220 323 Weighted average common shares outstanding, diluted 16,837 16,980 17,161 Net income per share attributable to MYR Group Inc.: Basic $ 5.45 $ 4.98 $ 5.05 Diluted $ 5.40 $ 4.91 $ 4.95 |
Schedule of shares excluded from calculation of dilute securities | The following table summarizes the shares of common stock underlying the Company’s unvested performance awards that were excluded from the calculation of dilutive securities: (in thousands) 2023 2022 2021 Performance awards 13 13 — |
Organization, Business and Si_3
Organization, Business and Significant Accounting Policies (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment $ / shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) $ / shares | |
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||
Number of business segments (segment) | segment | 2 | ||
Contract retention provision | 10% | ||
Contract revenues | $ 3,643,905,000 | $ 3,008,542,000 | $ 2,498,289,000 |
Foreign currency gain (loss) | 0 | 0 | (100,000) |
Revenue recognized, related to change orders and claims included as contract price adjustments | 76,500,000 | 19,600,000 | |
Increase (decrease) in operating income | 129,093,000 | 114,907,000 | 118,560,000 |
Increase (decrease) in net income | $ 90,990,000 | $ 83,381,000 | $ 85,010,000 |
Increase (decrease) in diluted earnings per common share (in dollars per share) | $ / shares | $ 5.40 | $ 4.91 | $ 4.95 |
Advertising cost | $ 1,800,000 | $ 1,200,000 | $ 800,000 |
Option to extend lease term (up to) | 6 years | ||
Option to terminate leases, period | 1 year | ||
Government assistance, amount | $ 2,300,000 | ||
Government Assistance, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | ||
Revenue from Contract with Customer | Top Ten Customers | Customer Concentration Risk | |||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||
Concentration risk | 37.90% | 35.40% | 34.90% |
Labor employees covered by collective bargaining agreements | Labor Force Concentration Risk | |||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||
Concentration risk | 84% | ||
Contingencies Excluding Wildfire and Health Insurance | |||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||
Insurance coverage deductible | $ 1,000,000 | ||
Health Insurance | |||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||
Insurance coverage deductible | $ 200,000 | ||
Minimum | |||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||
Remaining lease term | 1 year | ||
Maximum | |||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||
Remaining lease term | 10 years | ||
Contracts Accounted for under Percentage of Completion | |||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||
Increase (decrease) in consolidated gross margin | (1.70%) | (0.40%) | 0.40% |
Increase (decrease) in operating income | $ (62,200,000) | $ (9,800,000) | $ 9,200,000 |
Increase (decrease) in net income | $ (43,600,000) | $ (6,900,000) | $ 6,600,000 |
Increase (decrease) in diluted earnings per common share (in dollars per share) | $ / shares | $ (2.59) | $ (0.41) | $ 0.39 |
Joint Venture | |||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||
Contract revenues | $ 33,000,000 | $ 11,300,000 | $ 26,100,000 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Jan. 04, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||||
Cash consideration paid, net of cash acquired | $ 0 | $ 110,660,000 | $ 0 | ||
Powerline Plus Companies | |||||
Business Acquisition [Line Items] | |||||
Net asset and other adjustments | $ 563,000 | $ 84,000 | |||
Cash consideration paid, net of cash acquired | 110,700,000 | ||||
Contingent consideration - fair value at acquisition date | $ 10,608,000 | 865,000 | 865,000 | ||
Powerline Plus Companies | Certain Performance Targets | |||||
Business Acquisition [Line Items] | |||||
Contingent earn-out consideration, post acquisition term | 3 years | ||||
Contingent consideration - fair value at acquisition date | $ 900,000 | 0 | 200,000 | $ 200,000 | |
Contingent earn-out consideration payment | $ 17,000,000 | ||||
Change in contingent consideration | 200,000 | 700,000 | |||
Powerline Plus Companies | Margin Guarantee | |||||
Business Acquisition [Line Items] | |||||
Change in contingent consideration | $ 0 | $ 0 |
Acquisition - Summary of acquis
Acquisition - Summary of acquisition by acquisition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 04, 2022 | Dec. 31, 2022 | Dec. 31, 2023 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 115,847 | $ 116,953 | |
Powerline Plus Companies | |||
Business Acquisition [Line Items] | |||
Cash paid | $ 114,429 | 114,429 | |
Contingent consideration - fair value at acquisition date | 10,608 | 865 | |
Net asset and other adjustments | 563 | 84 | |
Total consideration, net of estimated net asset adjustments | 125,600 | 115,378 | |
Less: Acquired cash | (3,853) | (3,853) | |
Total consideration less cash acquired, net of net asset and other adjustments | 121,747 | 111,525 | |
Cash paid, Measurement Period Adjustments | 0 | ||
Contingent consideration - fair value at acquisitions date, Measurement Period Adjustments | (9,743) | ||
Net asset and other adjustments, Measurement Period Adjustments | (479) | ||
Total consideration, net of estimated net asset adjustments, Measurement Period Adjustments | (10,222) | ||
Less: Acquired cash, Measurement Period Adjustments | 0 | ||
Total consideration less cash acquired, net of net asset and other adjustments, Measurement Period Adjustment | (10,222) | ||
Cash and cash equivalents | 3,853 | 3,853 | |
Accounts receivable | 12,131 | 12,079 | |
Contract assets | 12,443 | 12,591 | |
Refundable income taxes | 394 | 876 | |
Prepaid expenses and other current assets | 1,233 | 1,112 | |
Property and equipment | 10,366 | 11,943 | |
Operating lease right-of-use assets | 6,631 | 6,120 | |
Intangible assets | 0 | 50,246 | |
Accounts payable | (8,095) | (8,561) | |
Contract liabilities | (1,597) | (1,692) | |
Current portion of operating lease obligations | (1,224) | (1,224) | |
Current portion of finance lease obligations | (1,492) | (1,492) | |
Deferred income tax liabilities | (1,358) | (15,349) | |
Operating lease obligations, net of current maturities | (4,897) | (4,897) | |
Finance lease obligations, net of current maturities | (3,243) | (3,243) | |
Net identifiable assets and liabilities | 25,145 | 62,362 | |
Unallocated intangible assets | 56,650 | 0 | |
Total acquired assets and liabilities | 81,795 | 62,362 | |
Goodwill | $ 43,805 | 53,016 | |
Cash and cash equivalents, Measurement Period Adjustments | 0 | ||
Accounts receivable, Measurement Period Adjustments | (52) | ||
Contract assets, Measurement Period Adjustments | 148 | ||
Refundable income taxes, Measurement Period Adjustments | 482 | ||
Prepaid expenses and other current assets, Measurement Period Adjustments | (121) | ||
Property and equipment, Measurement Period Adjustments | 1,577 | ||
Operating lease right-of-use asset, Measurement Period Adjustments | (511) | ||
Intangible assets, Measurement Period Adjustments | 50,246 | ||
Accounts payable, Measurement Period Adjustments | (466) | ||
Contract liabilities, Measurement Period Adjustments | (95) | ||
Current portion of operating lease obligations, Measurement Period Adjustments | 0 | ||
Current portion of finance lease obligations, Measurement Period Adjustments | 0 | ||
Deferred income tax liabilities, Measurement Period Adjustments | (13,991) | ||
Operating lease obligations, net of current maturities | 0 | ||
Finance lease obligations, net of current maturities, Measurement Period Adjustments | 0 | ||
Net identifiable assets and liabilities, Measurement Period Adjustments | 37,217 | ||
Unallocated intangible assets, Measurement Period Adjustments | (56,650) | ||
Total acquired assets and liabilities, Measurement Period Adjustments | (19,433) | ||
Goodwill, Measurement Period Adjustments | $ 9,211 |
Acquisition - Summary of identi
Acquisition - Summary of identifiable intangible assets (Details) - Powerline Plus Companies $ in Thousands | Jan. 04, 2022 USD ($) |
Finite And Indefinite-Lived Intangible Assets Acquired As Part Of Business Combination [Line Items] | |
Total amortizable intangible assets | $ 44,275 |
Intangible asset amortization period | 14 years 10 months 24 days |
Total intangible assets | $ 50,246 |
Customer relationships | |
Finite And Indefinite-Lived Intangible Assets Acquired As Part Of Business Combination [Line Items] | |
Total amortizable intangible assets | $ 39,757 |
Intangible asset amortization period | 15 years |
Backlog | |
Finite And Indefinite-Lived Intangible Assets Acquired As Part Of Business Combination [Line Items] | |
Total amortizable intangible assets | $ 4,007 |
Intangible asset amortization period | 1 year |
Below market lease | |
Finite And Indefinite-Lived Intangible Assets Acquired As Part Of Business Combination [Line Items] | |
Total amortizable intangible assets | $ 511 |
Intangible asset amortization period | 5 years |
Trade names | |
Finite And Indefinite-Lived Intangible Assets Acquired As Part Of Business Combination [Line Items] | |
Total intangible assets | $ 5,971 |
Contract Assets and Liabiliti_3
Contract Assets and Liabilities - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | ||
Allowance for doubtful accounts | $ 610 | $ 499 |
Revenues recognized during period | $ 130,700 | $ 117,300 |
Contract Assets and Liabiliti_4
Contract Assets and Liabilities - Summary of Contract Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Contractors [Line Items] | |||
Unbilled revenue, net | $ 217,083 | $ 156,266 | |
Contract retainages, net | 203,533 | 144,349 | |
Contract assets, net | 420,616 | 300,615 | |
Changes in contract assets, net | 119,246 | $ 64,421 | $ 39,266 |
Net Period Change | |||
Contractors [Line Items] | |||
Changes in unbilled revenue, net | 60,817 | ||
Changes in contract retainages, net | 59,184 | ||
Changes in contract assets, net | $ 120,001 |
Contract Assets and Liabiliti_5
Contract Assets and Liabilities - Summary of Contract Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Contractors [Line Items] | |||
Deferred revenue | $ 231,604 | $ 223,654 | |
Accrued loss provision | 8,807 | 3,401 | |
Contract liabilities | 240,411 | 227,055 | |
Changes in contract liabilities | 13,151 | $ 58,001 | $ 9,573 |
Net Period Change | |||
Contractors [Line Items] | |||
Change in deferred revenue | 7,950 | ||
Change in accrued loss provision | 5,406 | ||
Changes in contract liabilities | $ 13,356 |
Contract Assets and Liabiliti_6
Contract Assets and Liabilities - Summary of Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Contractors [Line Items] | |||
Contract assets, net | $ 420,616 | $ 300,615 | |
Contract liabilities | (240,411) | (227,055) | |
Net contract assets | 180,205 | 73,560 | |
Changes in contract assets | 119,246 | $ 64,421 | $ 39,266 |
Net Period Change | |||
Contractors [Line Items] | |||
Changes in contract assets | 120,001 | ||
Changes in contract liabilities | (13,356) | ||
Changes in net contract assets (liabilities) | $ 106,645 |
Contract Assets and Liabiliti_7
Contract Assets and Liabilities - Contracts in Process (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | ||
Costs and estimated earnings on uncompleted contracts | $ 6,716,990 | $ 5,390,535 |
Less: billings to date | 6,731,511 | 5,457,923 |
Net asset position for contracts in process | $ (14,521) | $ (67,388) |
Contract Assets and Liabiliti_8
Contract Assets and Liabilities - Summary of Net Asset Position for Contracts in Process (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | ||
Unbilled revenue, net | $ 217,083 | $ 156,266 |
Deferred revenue | (231,604) | (223,654) |
Net asset position for contracts in process | $ (14,521) | $ (67,388) |
Lease Obligations - Additional
Lease Obligations - Additional information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating And Finance Leases [Line Items] | |||
Option to extend lease term (up to) | 6 years | ||
Option to terminate leases, period | 1 year | ||
Minimum lease payments required | $ 44,462 | ||
Employees | Subsidiaries | |||
Operating And Finance Leases [Line Items] | |||
Operating lease expense | 2,700 | $ 2,400 | $ 900 |
Minimum lease payments required | $ 12,900 | ||
Lease amortization period | 5 years 8 months 12 days | ||
Minimum | |||
Operating And Finance Leases [Line Items] | |||
Remaining lease term | 1 year | ||
Maximum | |||
Operating And Finance Leases [Line Items] | |||
Remaining lease term | 10 years |
Lease Obligations - Summary of
Lease Obligations - Summary of Lease-Related Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Operating lease right-of-use assets | $ 35,012 | $ 30,544 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment, net of accumulated depreciation of $380,465 and $351,753, respectively | |
Finance lease right-of-use assets | $ 2,363 | 3,238 |
Total right-of-use lease assets | 37,375 | 33,782 |
Current | ||
Operating lease obligations | 9,237 | 9,711 |
Finance lease obligations | 2,039 | 1,127 |
Total current obligations | 11,276 | 10,838 |
Non-current | ||
Operating lease obligations | 25,775 | 20,845 |
Finance lease obligations | 314 | 2,313 |
Total non-current obligations | 26,089 | 23,158 |
Net present value of minimum lease payments | $ 37,365 | $ 33,996 |
Lease Obligations - Summary o_2
Lease Obligations - Summary of The Lease Terms and Discount Rates (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Weighted-average remaining lease term – finance leases | 10 months 24 days | 1 year 10 months 24 days |
Weighted-average remaining lease term – operating leases | 4 years | 3 years 7 months 6 days |
Weighted-average discount rate – finance leases | 3.10% | 3% |
Weighted-average discount rate – operating leases | 4% | 3.80% |
Lease Obligations - Summary o_3
Lease Obligations - Summary of Lease Related Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lease cost: | ||
Amortization of right-of-use assets | $ 1,792 | $ 1,138 |
Interest on lease liabilities | 83 | 128 |
Operating lease cost | 14,302 | 13,428 |
Variable lease costs | 353 | 415 |
Total lease cost | $ 16,530 | $ 15,109 |
Lease Obligations - Summary o_4
Lease Obligations - Summary of Other and Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | $ 14,519 | $ 13,287 |
Right-of-use asset obtained in exchange for new operating lease obligations | 11,039 | 21,663 |
Right-of-use asset obtained in exchange for new finance lease obligations | $ 0 | $ 517 |
Lease Obligations - Schedule of
Lease Obligations - Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finance Lease Obligations | ||
2024 | $ 2,078 | |
2025 | 320 | |
2026 | 0 | |
2027 | 0 | |
2028 | 0 | |
Thereafter | 0 | |
Total minimum lease payments | 2,398 | |
Financing component | (45) | |
Net present value of minimum lease payments | 2,353 | |
Less: current portion of operating lease obligations | (2,039) | $ (1,127) |
Finance lease obligations, net of current maturities | 314 | 2,313 |
Operating Lease Obligations | ||
2024 | 13,148 | |
2025 | 11,188 | |
2026 | 9,099 | |
2027 | 4,568 | |
2028 | 3,503 | |
Thereafter | 2,956 | |
Total minimum lease payments | 44,462 | |
Financing component | (9,450) | |
Net present value of minimum lease payments | 35,012 | |
Less: current portion of operating lease obligations | (9,237) | (9,711) |
Long-term operating lease obligations | 25,775 | 20,845 |
Total Lease Obligations | ||
2024 | 15,226 | |
2025 | 11,508 | |
2026 | 9,099 | |
2027 | 4,568 | |
2028 | 3,503 | |
Thereafter | 2,956 | |
Total minimum lease payments | 46,860 | |
Financing component | (9,495) | |
Net present value of minimum lease payments | 37,365 | 33,996 |
Less: current portion of operating lease obligations | (11,276) | (10,838) |
Total non-current obligations | $ 26,089 | $ 23,158 |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Contract receivables | $ 516,142 | $ 471,724 |
Other | 7,738 | 2,892 |
Accounts receivable, gross current | 523,880 | 474,616 |
Less: allowance for doubtful accounts | (1,987) | (2,073) |
Accounts receivable, net | $ 521,893 | $ 472,543 |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Allowance for Doubtful Accounts Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ 2,073 | $ 2,441 | $ 1,696 |
Less: reduction in (provision for) allowances | 85 | 320 | (764) |
Less: write offs, net of recoveries | 3 | 45 | 19 |
Change in foreign currency translation | 2 | (3) | 0 |
Balance at end of period | $ 1,987 | $ 2,073 | $ 2,441 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 44,410 | $ 45,977 |
Other current assets | 2,125 | 1,847 |
Total prepaid expense and other current assets | $ 46,535 | $ 47,824 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 649,443 | $ 584,928 |
Less: accumulated depreciation and amortization | (380,465) | (351,753) |
Property and equipment, net | 268,978 | 233,175 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 10,351 | 10,226 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 44,352 | 40,480 |
Construction equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 578,563 | 519,421 |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 16,177 | $ 14,801 |
Minimum | Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 3 years | |
Minimum | Construction equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 3 years | |
Minimum | Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 3 years | |
Maximum | Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 39 years | |
Maximum | Construction equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 12 years | |
Maximum | Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 10 years |
Property and Equipment - Additi
Property and Equipment - Additional information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 54,231 | $ 49,161 | $ 43,894 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill | ||
Gross Carrying Amount | $ 116,953 | $ 115,847 |
Accumulated Amortization | 0 | 0 |
Net Carrying Amount | 116,953 | 115,847 |
Goodwill, Foreign currency translation | (2,117) | (3,223) |
Amortizable Intangible Assets | ||
Accumulated Amortization | 30,534 | 25,439 |
Amortizable Intangible Assets, Foreign currency translation | (1,768) | (2,689) |
Foreign currency translation, adjustments | (270) | (410) |
Foreign currency translation, net | (1,498) | (2,279) |
Indefinite-lived Intangible Assets | ||
Total intangible assets, Gross Carrying Amount | 114,050 | 112,996 |
Total intangible assets, Net Carrying Amount | 83,516 | 87,557 |
Trade names | ||
Indefinite-lived Intangible Assets | ||
Indefinite-lived Intangible Assets | 34,412 | 34,412 |
Indefinite-lived Intangible Assets, Foreign currency translation | (235) | (367) |
Backlog | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 9,296 | 9,296 |
Accumulated Amortization | 9,296 | 9,296 |
Net Carrying Amount | 0 | 0 |
Customer relationships | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 71,139 | 71,138 |
Accumulated Amortization | 20,905 | 16,094 |
Net Carrying Amount | 50,234 | 55,044 |
Trade names | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 695 | 695 |
Accumulated Amortization | 403 | 357 |
Net Carrying Amount | 292 | 338 |
Below market lease | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 511 | 511 |
Accumulated Amortization | 200 | 102 |
Net Carrying Amount | 311 | 409 |
T&D | ||
Goodwill | ||
Gross Carrying Amount | 93,240 | 93,240 |
Accumulated Amortization | 0 | 0 |
Net Carrying Amount | 93,240 | 93,240 |
C&I | ||
Goodwill | ||
Gross Carrying Amount | 25,830 | 25,830 |
Accumulated Amortization | 0 | 0 |
Net Carrying Amount | $ 25,830 | $ 25,830 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset amortization | $ 4,907 | $ 9,009 | $ 2,311 |
Customer Relationships, Amortizable Trade Names and Backlog | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 15 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets -Schedule of estimated future intangible asset amortization expense (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 4,954 |
2025 | 4,954 |
2026 | 4,954 |
2027 | 4,815 |
2028 | 4,805 |
Thereafter | 24,857 |
Net Carrying Amount | $ 49,339 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Payroll and incentive compensation | $ 39,986 | $ 31,355 |
Union dues and benefits | 26,107 | 21,500 |
Payroll, sales and other taxes | 13,903 | 6,574 |
Profit sharing and thrift plan | 8,592 | 9,119 |
Other | 12,005 | 11,370 |
Total other current liabilities | $ 100,593 | $ 79,918 |
Debt - Summary of Total Debt (D
Debt - Summary of Total Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Total debt | $ 36,241 | $ 40,553 |
Less: current portion of long-term debt | (7,053) | (5,074) |
Long-term debt | 29,188 | 35,479 |
Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Total debt | $ 23,040 | 27,638 |
Equipment Note 8 | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate (per annum) | 2.75% | |
Term (years) | 5 years | |
Total debt | $ 2,871 | 3,464 |
Equipment Note 10 | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate (per annum) | 4.32% | |
Term (years) | 5 years | |
Total debt | $ 20,125 | 24,119 |
Other equipment note | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate (per annum) | 4.55% | |
Term (years) | 5 years | |
Total debt | $ 44 | 55 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Term (years) | 5 years | |
Total debt | $ 13,201 | $ 12,915 |
Debt - Additional Information (
Debt - Additional Information (Details) | 12 Months Ended | ||
May 31, 2023 USD ($) | Dec. 31, 2023 USD ($) equipment_note | Dec. 31, 2022 USD ($) | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt instrument term | 5 years | ||
Credit Agreement | Secured Debt | |||
Debt Instrument [Line Items] | |||
Debt instrument term | 5 years | ||
Maximum borrowing capacity | $ 490,000,000 | ||
Option to increase borrowing capacity | $ 200,000,000 | ||
Percentage of capital stock from direct foreign subsidiaries | 65% | ||
Debt instrument covenant leveraged debt ratio restriction | 2.75 | ||
Weighted average interest rate | 7.07% | ||
Leverage coverage ratio | 3 | ||
Interest coverage ratio | 3 | ||
Deferred debt issuance costs | $ 2,200,000 | ||
Unamortized deferred debt issuance costs | $ 400,000 | ||
Credit Agreement | Secured Debt | Minimum | |||
Debt Instrument [Line Items] | |||
Commitment fee on unused capacity | 0.20% | ||
Credit Agreement | Secured Debt | Minimum | Base Rate | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 0.25% | ||
Credit Agreement | Secured Debt | Minimum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 1.25% | ||
Credit Agreement | Secured Debt | Maximum | |||
Debt Instrument [Line Items] | |||
Commitment fee on unused capacity | 0.30% | ||
Credit Agreement | Secured Debt | Maximum | Base Rate | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 1% | ||
Credit Agreement | Secured Debt | Maximum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 2% | ||
Credit Agreement | Secured Debt | Letter of Credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 75,000,000 | ||
Letters of credit outstanding | 34,400,000 | $ 12,800,000 | |
Credit Agreement | Secured Debt | Letter of Credit | Insurance Program Obligations | |||
Debt Instrument [Line Items] | |||
Letters of credit outstanding | 27,100,000 | 12,800,000 | |
Credit Agreement | Secured Debt | Letter of Credit | Contract Performance Obligations | |||
Debt Instrument [Line Items] | |||
Letters of credit outstanding | 7,300,000 | ||
Credit Agreement | Secured Debt | Letters Of Credit, Discretional | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 75,000,000 | ||
Credit Agreement | Secured Debt | Swingline Loan | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 15,000,000 | ||
Credit Agreement | Secured Debt | Non-performance Letters Of Credit | Minimum | |||
Debt Instrument [Line Items] | |||
Letter of credit facility commitment percentage | 1.25% | ||
Credit Agreement | Secured Debt | Non-performance Letters Of Credit | Maximum | |||
Debt Instrument [Line Items] | |||
Letter of credit facility commitment percentage | 2% | ||
Credit Agreement | Secured Debt | Performance letters of credit | Minimum | |||
Debt Instrument [Line Items] | |||
Letter of credit facility commitment percentage | 0.625% | ||
Credit Agreement | Secured Debt | Performance letters of credit | Maximum | |||
Debt Instrument [Line Items] | |||
Letter of credit facility commitment percentage | 1% | ||
Credit Agreement | Secured Debt | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 150,000,000 | ||
Borrowings under line of credit | $ 13,200,000 | $ 12,900,000 | |
Master Loan Agreement | Notes Payable to Banks | |||
Debt Instrument [Line Items] | |||
Number of equipment notes (equipment note) | equipment_note | 2 | ||
Other equipment note | Notes Payable to Banks | |||
Debt Instrument [Line Items] | |||
Debt instrument term | 5 years | ||
Number of equipment notes (equipment note) | equipment_note | 1 |
Debt - Schedule of Remaining Pr
Debt - Schedule of Remaining Principal Payments for Long Term Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total debt | $ 36,241 | $ 40,553 |
Less: current portion of equipment notes | (7,053) | (5,074) |
Long-term principal obligations | 29,188 | 35,479 |
Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Total debt | 23,040 | $ 27,638 |
Master Loan Agreement | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
2024 | 7,053 | |
2025 | 4,364 | |
2026 | 4,555 | |
2027 | 7,068 | |
2028 | 0 | |
Thereafter | 0 | |
Total debt | 23,040 | |
Less: current portion of equipment notes | (7,053) | |
Long-term principal obligations | $ 15,987 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Disaggregation of Revenue [Line Items] | |
Remaining performance obligations | $ 2,301,147 |
Minimum | |
Disaggregation of Revenue [Line Items] | |
Term of master service agreements | 1 year |
Short termination notice of master service agreements | 30 days |
Maximum | |
Disaggregation of Revenue [Line Items] | |
Term of master service agreements | 3 years |
Short termination notice of master service agreements | 90 days |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Revenue by Contract Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Contract revenues | $ 3,643,905 | $ 3,008,542 | $ 2,498,289 |
Product Concentration Risk | Revenue Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk | 100% | 100% | 100% |
Fixed price | |||
Disaggregation of Revenue [Line Items] | |||
Contract revenues | $ 2,375,036 | $ 1,886,716 | $ 1,523,338 |
Fixed price | Product Concentration Risk | Revenue Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk | 65.20% | 62.70% | 61% |
Unit price | |||
Disaggregation of Revenue [Line Items] | |||
Contract revenues | $ 641,802 | $ 553,990 | $ 443,536 |
Unit price | Product Concentration Risk | Revenue Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk | 17.60% | 18.40% | 17.70% |
T&E | |||
Disaggregation of Revenue [Line Items] | |||
Contract revenues | $ 627,067 | $ 567,836 | $ 531,415 |
T&E | Product Concentration Risk | Revenue Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk | 17.20% | 18.90% | 21.30% |
T&D | |||
Disaggregation of Revenue [Line Items] | |||
Contract revenues | $ 2,089,196 | $ 1,745,792 | $ 1,301,587 |
T&D | Product Concentration Risk | Revenue Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk | 100% | 100% | 100% |
T&D | Fixed price | |||
Disaggregation of Revenue [Line Items] | |||
Contract revenues | $ 1,100,273 | $ 835,288 | $ 559,861 |
T&D | Fixed price | Product Concentration Risk | Revenue Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk | 52.70% | 47.80% | 43% |
T&D | Unit price | |||
Disaggregation of Revenue [Line Items] | |||
Contract revenues | $ 549,221 | $ 475,276 | $ 369,710 |
T&D | Unit price | Product Concentration Risk | Revenue Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk | 26.30% | 27.20% | 28.40% |
T&D | T&E | |||
Disaggregation of Revenue [Line Items] | |||
Contract revenues | $ 439,702 | $ 435,228 | $ 372,016 |
T&D | T&E | Product Concentration Risk | Revenue Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk | 21% | 25% | 28.60% |
C&I | |||
Disaggregation of Revenue [Line Items] | |||
Contract revenues | $ 1,554,709 | $ 1,262,750 | $ 1,196,702 |
C&I | Product Concentration Risk | Revenue Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk | 100% | 100% | 100% |
C&I | Fixed price | |||
Disaggregation of Revenue [Line Items] | |||
Contract revenues | $ 1,274,763 | $ 1,051,428 | $ 963,477 |
C&I | Fixed price | Product Concentration Risk | Revenue Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk | 82% | 83.30% | 80.50% |
C&I | Unit price | |||
Disaggregation of Revenue [Line Items] | |||
Contract revenues | $ 92,581 | $ 78,714 | $ 73,826 |
C&I | Unit price | Product Concentration Risk | Revenue Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk | 6% | 6.20% | 6.20% |
C&I | T&E | |||
Disaggregation of Revenue [Line Items] | |||
Contract revenues | $ 187,365 | $ 132,608 | $ 159,399 |
C&I | T&E | Product Concentration Risk | Revenue Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk | 12% | 10.50% | 13.30% |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Revenue by Market Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Contract revenues | $ 3,643,905 | $ 3,008,542 | $ 2,498,289 |
Product Concentration Risk | Revenue Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk | 100% | 100% | 100% |
T&D | |||
Disaggregation of Revenue [Line Items] | |||
Contract revenues | $ 2,089,196 | $ 1,745,792 | $ 1,301,587 |
T&D | Product Concentration Risk | Revenue Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk | 100% | 100% | 100% |
T&D | Transmission | |||
Disaggregation of Revenue [Line Items] | |||
Contract revenues | $ 1,380,923 | $ 1,083,415 | $ 806,367 |
T&D | Transmission | Product Concentration Risk | Revenue Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk | 37.90% | 36% | 32.30% |
T&D | Distribution | |||
Disaggregation of Revenue [Line Items] | |||
Contract revenues | $ 708,273 | $ 662,377 | $ 495,220 |
T&D | Distribution | Product Concentration Risk | Revenue Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk | 19.40% | 22% | 19.80% |
C&I | |||
Disaggregation of Revenue [Line Items] | |||
Contract revenues | $ 1,554,709 | $ 1,262,750 | $ 1,196,702 |
C&I | Product Concentration Risk | Revenue Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk | 100% | 100% | 100% |
C&I | Electrical construction | |||
Disaggregation of Revenue [Line Items] | |||
Contract revenues | $ 1,554,709 | $ 1,262,750 | $ 1,196,702 |
C&I | Electrical construction | Product Concentration Risk | Revenue Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk | 42.70% | 42% | 47.90% |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Remaining Performance Obligations (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 2,301,147 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 1,867,008 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 434,139 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
T&D | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 769,128 |
T&D | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 722,765 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
T&D | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 46,363 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
C&I | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 1,532,019 |
C&I | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 1,144,243 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
C&I | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 387,776 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Before Income Taxes by Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 102,014 | $ 104,185 | $ 106,956 |
Foreign | 22,990 | 10,019 | 9,350 |
Income before provision for income taxes | $ 125,004 | $ 114,204 | $ 116,306 |
Income Taxes - Summary of Inc_2
Income Taxes - Summary of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current | |||
Federal | $ 21,337 | $ 13,948 | $ 16,512 |
Foreign | 1,821 | 2,148 | 1,947 |
State | 7,348 | 5,154 | 6,560 |
Current income tax expense | 30,506 | 21,250 | 25,019 |
Deferred | |||
Federal | (159) | 7,739 | 5,061 |
Foreign | 3,984 | 465 | 287 |
State | (317) | 1,369 | 933 |
Deferred income tax expense | 3,508 | 9,573 | 6,281 |
Income tax expense | $ 34,014 | $ 30,823 | $ 31,300 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S federal statutory rate | 21% | 21% | 21% |
State income taxes, net of U.S. federal income tax expense | 4.40% | 4.50% | 4.70% |
Tax differential on foreign earnings | 0.70% | 0.60% | 0.50% |
Non-deductible meals and entertainment | 0.50% | 0.20% | 0.10% |
Stock compensation excess tax benefits | (2.60%) | (2.40%) | (0.80%) |
Uncertain tax positions | 0% | 0.10% | 0% |
Provision to return adjustments, net | 0.70% | 0.70% | 0.40% |
Section 162(m) limitation | 2.50% | 2.40% | 1.10% |
Other income, net | 0% | (0.10%) | (0.10%) |
Effective rate | 27.20% | 27% | 26.90% |
Income Taxes - Summary of Net D
Income Taxes - Summary of Net Deferred Tax Assets and (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred income tax assets: | ||
Self-insurance reserves | $ 3,850 | $ 2,979 |
Contract loss reserves | 2,273 | 842 |
Stock-based awards | 3,336 | 2,071 |
Bonus | 11,137 | 8,656 |
Accrued vacation | 2,295 | 2,227 |
Accrued profit sharing | 1,707 | 2,030 |
Operating lease liabilities | 8,115 | 6,691 |
Non-U.S. operating loss | 2,411 | 2,402 |
Other | 1,090 | 1,112 |
Total deferred income tax assets before valuation allowances | 36,214 | 29,010 |
Less: valuation allowances | (2,412) | (2,402) |
Total deferred income tax assets | 33,802 | 26,608 |
Deferred income tax liabilities: | ||
Property and equipment — tax over book depreciation | (45,332) | (42,413) |
Non-U.S. intangible assets — tax over book amortization | (10,363) | (11,086) |
Intangible assets — tax over book amortization | (4,013) | (3,331) |
Right-of-use operating lease assets | (8,115) | (6,688) |
Non-U.S. deferred income tax liabilities | (8,819) | (4,709) |
Contract revenue adjustment | (4,790) | (4,023) |
Other | (600) | (133) |
Total deferred income tax liabilities | (82,032) | (72,383) |
Net deferred income taxes | $ (48,230) | $ (45,775) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Income Tax Disclosure [Abstract] | |
Reduction of unrecognized tax benefits | $ 0.2 |
Income Taxes - Summary of Liabi
Income Taxes - Summary of Liabilities for Unrecognized Tax Benefits Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of period | $ 390 | $ 328 |
Gross increases in current period tax positions | 54 | 83 |
Reductions in tax positions due to lapse of statutory limitations | (27) | (21) |
Balance at end of period | 417 | 390 |
Accrued interest and penalties at end of period | 107 | 99 |
Total liability for unrecognized tax benefits | $ 524 | $ 489 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Commitments [Line Items] | |||
Purchase orders outstanding | $ 32,500,000 | ||
Insurance expense | 88,300,000 | $ 77,100,000 | $ 65,100,000 |
Performance Guarantee | |||
Other Commitments [Line Items] | |||
Bonds outstanding | 2,440,000,000 | ||
Estimated remaining costs for bonded projects | 726,100,000 | ||
Contingencies Excluding Wildfire and Health Insurance | |||
Other Commitments [Line Items] | |||
Insurance coverage deductible | 1,000,000 | ||
Health Insurance | |||
Other Commitments [Line Items] | |||
Insurance coverage deductible | $ 200,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Accrued Short and Long Term Insurance Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Loss Contingency Accrual [Roll Forward] | |||
Net increases in accrued self-insurance | $ 17 | $ 4,999 | $ 5,233 |
Insurance Claims | |||
Loss Contingency Accrual [Roll Forward] | |||
Balance at beginning of period | 80,039 | 75,058 | |
Net increases in accrued self-insurance | 86,093 | 76,299 | |
Net payments made | (86,067) | (71,318) | |
Balance at end of period | $ 80,065 | $ 80,039 | $ 75,058 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - Long-Term Incentive Plan $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) plan shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of equity stock based compensation plans (plan) | plan | 2 | ||
Number of shares permitted for granting (in shares) | shares | 1,500,000 | ||
Stock based compensation expense | $ 8.4 | $ 7.9 | $ 7.5 |
Unrecognized stock-based compensation expense | $ 9.9 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award expiration period | 10 years | ||
Intrinsic value of options exercised | $ 0.1 | 0.1 | 1.2 |
Time-vested stock awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of common stock at the time of vesting | 7.3 | 7 | 5.7 |
Unrecognized stock-based compensation expense | $ 5.3 | ||
Remaining weighted average vesting period | 1 year 6 months | ||
Time-vested stock awards | Employee | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Service period | 3 years | ||
Time-vested stock awards | Nonemployee | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
Service period | 1 year | ||
Performance awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Service period | 2 years 9 months 18 days | ||
Intrinsic value of common stock at the time of vesting | $ 12 | $ 15.7 | $ 12.7 |
Unrecognized stock-based compensation expense | $ 4.6 | ||
Remaining weighted average vesting period | 1 year 6 months | ||
Performance awards | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of potential target shares awarded | 0% | ||
Performance awards | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of potential target shares awarded | 200% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Options | |||
Outstanding, beginning of period (in shares) | 869 | 2,709 | 24,557 |
Exercised (in shares) | (827) | (1,680) | (21,806) |
Expired (in shares) | (42) | (160) | (42) |
Outstanding, end of period (in shares) | 0 | 869 | 2,709 |
Weighted- Average Exercise Price | |||
Outstanding, beginning of period (in dollars per share) | $ 24.68 | $ 23.74 | $ 22.94 |
Exercised (in dollars per share) | 24.68 | 23.67 | 22.84 |
Expired (in dollars per share) | 24.68 | 19.37 | 24.68 |
Outstanding, end of period (in dollars per share) | $ 0 | $ 24.68 | $ 23.74 |
Term and Intrinsic Value | |||
Weighted- Average Remaining Contractual Term | 0 years | 2 months 12 days | 1 year 1 month 6 days |
Aggregate Intrinsic Value (in thousands) | $ 0 | $ 63 | $ 235 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Time-Vested Stock Awards Activity (Details) - Time-vested stock awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Shares | |||
Outstanding, beginning of period (in shares) | 102,616 | 132,497 | 165,789 |
Granted (in shares) | 51,167 | 45,992 | 57,196 |
Vested (in shares) | (63,722) | (73,373) | (87,584) |
Forfeited (in shares) | (9,323) | (2,500) | (2,904) |
Outstanding, end of period (in shares) | 80,738 | 102,616 | 132,497 |
Per Share Weighted- Average Grant Date Fair Value | |||
Outstanding, beginning of period (in dollars per share) | $ 69.70 | $ 44.88 | $ 28.96 |
Granted (in dollars per shares) | 117.60 | 76.93 | 66.80 |
Vested (in dollars per share) | 59.71 | 42.47 | 29.20 |
Forfeited (in dollars per share) | 90.75 | 58.43 | 40.60 |
Outstanding, end of period (in dollars per share) | $ 105.50 | $ 69.70 | $ 44.88 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Performance Share Award Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Performance awards | |||
Shares | |||
Outstanding, beginning of period (in shares) | 73,508 | 121,327 | 150,339 |
Granted at target (in shares) | 32,994 | 31,603 | 42,091 |
Vested (in shares) | (77,832) | (157,368) | (128,920) |
Forfeited (in shares) | (8,468) | (738) | (644) |
Outstanding, end of period (in shares) | 59,118 | 73,508 | 121,327 |
Per Share Weighted-Average Grant Date Fair Value | |||
Outstanding, beginning of period (in dollars per share) | $ 96.75 | $ 50.06 | $ 36.54 |
Granted at target (in dollars per share) | 136.54 | 118.82 | 80.11 |
Vested (in dollars per share) | 80.07 | 34.10 | 39.26 |
Forfeited (in dollars per share) | 108.24 | 45.71 | 39.25 |
Outstanding, end of period (in dollars per share) | $ 128.29 | $ 96.75 | $ 50.06 |
Earned for performance above target | |||
Shares | |||
Earned (forfeited) for performance above or below target (in shares) | 38,916 | 78,684 | 58,461 |
Per Share Weighted-Average Grant Date Fair Value | |||
Earned (forfeited) for performance above or below target (in dollars per share) | 80.07 | 34.10 | 40.41 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) union | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Multiemployer Plans, Pension | |||
Number of local unions (union) | union | 300 | ||
United States | Profit Sharing and Thrift Employee Benefit Plan | Other Postretirement Benefits Plan | |||
Contributions to benefit plans | $ | $ 15.9 | $ 15.7 | $ 17.8 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Multi-Employer Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Multiemployer Plan, Employer Contribution, Cost [Abstract] | |||
Contributions to Plan | $ 179,208 | $ 155,838 | $ 145,880 |
All other plans | |||
Multiemployer Plan, Employer Contribution, Cost [Abstract] | |||
Contributions to Plan | 40,716 | 28,014 | 30,094 |
Southern California IBEW-NECA Pension Trust Fund | Multiemployer Plans, Pension | |||
Multiemployer Plan, Employer Contribution, Cost [Abstract] | |||
Contributions to Plan | 51,136 | 40,810 | 39,529 |
Eighth District Electrical Pension Fund | Multiemployer Plans, Pension | |||
Multiemployer Plan, Employer Contribution, Cost [Abstract] | |||
Contributions to Plan | 15,158 | 15,097 | 12,007 |
National Electrical Benefit Fund | Multiemployer Plans, Pension | |||
Multiemployer Plan, Employer Contribution, Cost [Abstract] | |||
Contributions to Plan | 14,598 | 13,804 | 11,627 |
IBEW Local 332 Pension Plan Part A | Multiemployer Plans, Pension | |||
Multiemployer Plan, Employer Contribution, Cost [Abstract] | |||
Contributions to Plan | 4,292 | 5,723 | 6,409 |
IBEW Local 769 Management Pension Plan A | Multiemployer Plans, Pension | |||
Multiemployer Plan, Employer Contribution, Cost [Abstract] | |||
Contributions to Plan | 5,222 | 5,061 | 3,446 |
IBEW Local Union 1249 Pension Fund | Multiemployer Plans, Pension | |||
Multiemployer Plan, Employer Contribution, Cost [Abstract] | |||
Contributions to Plan | 5,706 | 3,791 | 3,684 |
Laborers Local Union 158 Pension Fund | Multiemployer Plans, Pension | |||
Multiemployer Plan, Employer Contribution, Cost [Abstract] | |||
Contributions to Plan | 3,246 | 256 | 37 |
National Electrical Annuity Plan | Other Postretirement Benefits Plan | |||
Multiemployer Plan, Employer Contribution, Cost [Abstract] | |||
Contributions to Plan | 30,758 | 36,982 | 27,974 |
Eighth District Electrical Pension Fund Annuity Plan | Other Postretirement Benefits Plan | |||
Multiemployer Plan, Employer Contribution, Cost [Abstract] | |||
Contributions to Plan | 3,624 | 3,347 | 5,097 |
San Mateo Country Electrical Construction Industry Retirement Plan | Other Postretirement Benefits Plan | |||
Multiemployer Plan, Employer Contribution, Cost [Abstract] | |||
Contributions to Plan | $ 4,752 | $ 2,953 | $ 5,976 |
Segment Information - Additiona
Segment Information - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of business segments (segment) | segment | 2 | |
Identifiable assets | $ 1,578,746 | $ 1,398,858 |
Canada | ||
Segment Reporting Information [Line Items] | ||
Identifiable assets | $ 169,000 | $ 146,100 |
Segment Information - Summary o
Segment Information - Summary of Segment's Internal Financial Reports (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Contract revenues | $ 3,643,905 | $ 3,008,542 | $ 2,498,289 |
Income from operations | 129,093 | 114,907 | 118,560 |
General Corporate | |||
Segment Reporting Information [Line Items] | |||
Income from operations | (66,499) | (67,138) | (68,596) |
T&D | |||
Segment Reporting Information [Line Items] | |||
Contract revenues | 2,089,196 | 1,745,792 | 1,301,587 |
T&D | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Income from operations | 149,703 | 138,886 | 132,738 |
C&I | |||
Segment Reporting Information [Line Items] | |||
Contract revenues | 1,554,709 | 1,262,750 | 1,196,702 |
C&I | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Income from operations | $ 45,889 | $ 43,159 | $ 54,418 |
Segment Information - Summary_2
Segment Information - Summary of Assets Allocation by Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Identifiable assets | $ 1,578,746 | $ 1,398,858 |
General Corporate | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Identifiable assets | 443,507 | 425,189 |
T&D | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Identifiable assets | 632,788 | 500,568 |
C&I | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Identifiable assets | $ 502,451 | $ 473,101 |
Segment Information - Summary_3
Segment Information - Summary of Depreciation and Amortization by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Depreciation and amortization | |||
Depreciation and amortization | $ 59,138 | $ 58,170 | $ 46,205 |
T&D | |||
Depreciation and amortization | |||
Depreciation and amortization | 51,470 | 50,825 | 38,668 |
C&I | |||
Depreciation and amortization | |||
Depreciation and amortization | $ 7,668 | $ 7,345 | $ 7,537 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Weighted Average Number of Common Shares Used to Compute Basic and Dilute Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net income | $ 90,990 | $ 83,381 | $ 85,006 |
Less: net loss attributable to noncontrolling interest | 0 | 0 | (4) |
Net income attributable to MYR Group | $ 90,990 | $ 83,381 | $ 85,010 |
Denominator: | |||
Weighted average common shares outstanding (in shares) | 16,682 | 16,760 | 16,838 |
Weighted average dilutive securities (in shares) | 155 | 220 | 323 |
Weighted average common shares outstanding, diluted (in shares) | 16,837 | 16,980 | 17,161 |
Basic (in dollars per share) | $ 5.45 | $ 4.98 | $ 5.05 |
Diluted (in dollars per share) | $ 5.40 | $ 4.91 | $ 4.95 |
Earnings Per Share - Summary _2
Earnings Per Share - Summary of Shares Excluded From Calculation of Diluted Securities (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Performance awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings (in shares) | 13 | 13 | 0 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 01, 2023 | May 09, 2023 | |
Earnings Per Share [Abstract] | |||||
Share repurchase program, authorized amount | $ 75,000,000 | $ 75,000,000 | |||
Shares repurchased (in shares) | 25,042 | ||||
Weighted average price for stock repurchase (in dollars per share) | $ 114.55 | ||||
Remaining availability under share repurchase program | $ 72,500,000 | ||||
Shares repurchased related to tax withholding for stock-based compensation (in shares) | 76,150 | 68,675 | |||
Shares repurchased related to tax withholding for stock-based compensation | $ 7,936,000 | $ 6,791,000 | $ 3,352,000 |