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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 30, 2025
MYR GROUP INC.
(Exact name of registrant as specified in its charter)
Delaware 1-08325 36-3158643
(State or Other Jurisdiction
of Incorporation)		 (Commission
File Number)		 (I.R.S. Employer
Identification No.)
12121 Grant Street, Suite 610
Thornton, CO 80241
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code:  (303) 286-8000
None
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $0.01 par value MYRG The Nasdaq Stock Market, LLC
(Nasdaq Global Market)
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.¨


Item 2.02 Results of Operations and Financial Condition.
On April 30, 2025, MYR Group Inc. issued a press release announcing its financial results for the three months ended March 31, 2025. The press release is furnished hereto as Exhibit 99.1.
This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) The following exhibit is being furnished with this Current Report on Form 8-K.
104 Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MYR GROUP INC.
Dated: April 30, 2025
 By: /s/ KELLY M. HUNTINGTON
Name: Kelly M. Huntington
Title: Senior Vice President and Chief Financial Officer
-3-
EX-99.1 2 myrg-2025430x8kxexx991.htm EX-99.1 Document
Exhibit 99.1
logo.jpg
MYR Group Inc. Announces First-Quarter 2025 Results
Thornton, Colo., April 30, 2025 – MYR Group Inc. (“MYR”) (NASDAQ: MYRG), a holding company of leading specialty contractors serving the electric utility infrastructure, commercial and industrial construction markets in the United States and Canada, announced today its first-quarter 2025 financial results.
Highlights for First Quarter 2025
•Quarterly revenues of $833.6 million
•Quarterly net income of $23.3 million, or $1.45 per diluted share
•Quarterly EBITDA of $50.2 million
•Backlog of $2.64 billion
Management Comments
Rick Swartz, MYR’s President and CEO, said, “We achieved solid financial results in the first quarter of 2025, with increases in revenue, net income, and consolidated gross profit compared to the same period of 2024. Our backlog at the end of the first quarter was $2.64 billion, which is reflective of the investments being made to meet the growing electrification demand.” Mr. Swartz continued, “Bidding activity remains healthy across both our business segments, and we continue expanding strong customer relationships through master service agreements, performing ongoing work for our long-term customers, and strategically exploring new opportunities to drive sustained growth.”
First Quarter Results
MYR reported first-quarter 2025 revenues of $833.6 million, an increase of $18.0 million, compared to the first quarter of 2024. Specifically, our Transmission and Distribution (“T&D”) segment reported quarterly revenues of $461.8 million, a decrease of $28.6 million, from the first quarter of 2024, due to a decrease of $44.1 million in revenue on transmission projects, primarily related to clean energy projects, offset by an increase of $15.5 million in revenue on distribution projects. Our Commercial and Industrial (“C&I”) segment reported quarterly revenues of $371.9 million, an increase of $46.7 million, from the first quarter of 2024.
Consolidated gross profit increased to $96.9 million for the first quarter of 2025, compared to $86.2 million for the first quarter of 2024. The increase in gross profit was due to higher margin and revenues. Gross margin increased to 11.6 percent for the first quarter of 2025 from 10.6 percent for the first quarter of 2024. The increase in gross margin was primarily due to a larger portion of our projects progressing at higher contractual margins, some of which are nearing completion. Gross margin was also positively impacted by favorable change orders, better-than-anticipated productivity and a favorable job closeout. These margin increases were partially offset by an increase in costs associated with labor and project inefficiencies and unfavorable change orders. Changes in estimates of gross profit on certain projects resulted in gross margin decreases of 1.1 percent and 1.2 percent for the first quarter of 2025 and 2024, respectively.
Selling, general and administrative expenses increased to $62.5 million for the first quarter of 2025, compared to $62.2 million for the first quarter of 2024. The period-over-period increase was primarily due to an increase in employee-related expenses to support future growth and an increase in employee incentive compensation costs. These increases were partially offset by $3.2 million of contingent compensation expense, related to a prior acquisition, recognized during the first quarter of 2024.
Interest expense increased to $1.4 million in the first quarter of 2025, compared to $1.1 million for the first quarter of 2024. The period-over-period increase was primarily due to higher average outstanding debt balances partially offset by lower interest rates during the first quarter of 2025 as compared to the first quarter of 2024.
Income tax expense was $9.5 million for the first quarter of 2025, with an effective tax rate of 28.9 percent, compared to income tax expense of $4.2 million for the first quarter of 2024, with an effective tax rate of 18.0 percent. The period-over-period change in tax rate was primarily due to no stock compensation excess tax benefits.
For the first quarter of 2025, net income was $23.3 million, or $1.45 per diluted share, compared to $18.9 million, or $1.12 per diluted share, for the same period of 2024. First-quarter 2025 EBITDA, a non-GAAP financial measure, was $50.2 million, compared to $39.8 million in the first quarter of 2024.
Backlog
As of March 31, 2025, MYR's backlog was $2.64 billion, compared to $2.58 billion as of December 31, 2024. As of March 31, 2025, T&D backlog was $872.5 million, and C&I backlog was $1.77 billion. Total backlog at March 31, 2025 increased $214.9 million, or 8.9 percent, from the $2.43 billion reported at March 31, 2024.
1

Balance Sheet
As of March 31, 2025, MYR had $379.4 million of borrowing availability under its $490 million revolving credit facility.
Non-GAAP Financial Measures
To supplement MYR’s financial statements presented in accordance with generally accepted accounting principles in the United States (“GAAP”), MYR uses certain non-GAAP measures. Reconciliation to the nearest GAAP measures of all non-GAAP measures included in this press release can be found at the end of this release. MYR’s definitions of these non-GAAP measures may differ from similarly titled measures used by others. These non-GAAP measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP.
MYR believes that these non-GAAP measures are useful because they (i) provide both management and investors meaningful supplemental information regarding financial performance by excluding certain expenses and benefits that may not be indicative of recurring core business operating results, (ii) permit investors to view MYR’s performance using the same tools that management uses to evaluate MYR’s past performance, reportable business segments and prospects for future performance, (iii) publicly disclose results that are relevant to financial covenants included in MYR’s credit facility and (iv) otherwise provide supplemental information that may be useful to investors in evaluating MYR.
Conference Call
MYR will host a conference call to discuss its first-quarter 2025 results on Thursday, May 1, 2025 at 8:00 a.m. Mountain time. To participate via telephone and join the call live, please register in advance here: https://register-conf.media-server.com/register/BI7b1171e4dcfc407786c9220182cc1d99. Upon registration, telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number and a unique passcode. Participants may access the audio-only webcast of the conference call from the Investors page of MYR Group’s website at myrgroup.com. A replay of the webcast will be available for seven days.
About MYR Group Inc.
MYR Group is a holding company of leading, specialty electrical contractors providing services throughout the United States and Canada through two business segments: Transmission & Distribution (T&D) and Commercial & Industrial (C&I). MYR Group subsidiaries have the experience and expertise to complete electrical installations of any type and size. Through their T&D segment they provide services on electric transmission, distribution networks, substation facilities, clean energy projects and electric vehicle charging infrastructure. Their comprehensive T&D services include design, engineering, procurement, construction, upgrade, maintenance and repair services. 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. Through their C&I segment, they provide a broad range of services which include the design, installation, maintenance and repair of commercial and industrial wiring generally 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. C&I customers include general contractors, commercial and industrial facility owners, government agencies and developers. For more information, visit myrgroup.com.
Forward-Looking Statements
Various statements in this announcement, including those that express a belief, expectation, or intention, as well as those that are not statements of historical fact, are forward-looking statements. The forward-looking statements may include projections and estimates concerning the timing and success of specific projects and our future production, revenue, income, capital spending, segment improvements and investments. Forward-looking statements are generally accompanied by words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “likely,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should,” “unlikely,” or other words that convey the uncertainty of future events or outcomes. The forward-looking statements in this announcement speak only as of the date of this announcement. We disclaim any obligation to update these statements (unless required by securities laws), and we caution you not to rely on them unduly. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. No forward-looking statement can be guaranteed and actual results may differ materially from those projected. Forward-looking statements in this announcement should be evaluated together with the many uncertainties that affect MYR's business, particularly those mentioned in the risk factors and cautionary statements in Item 1A. of MYR's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and in any risk factors or cautionary statements contained in MYR's subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.
MYR Group Inc. Contact:
Jennifer Harper, Vice President, Investor Relations & Treasurer, 847-979-5835, investorinfo@myrgroup.com
Financial tables follow…
2

MYR GROUP INC.
Consolidated Balance Sheets
As of March 31, 2025 and December 31, 2024
(in thousands, except share and per share data) March 31,
2025		 December 31,
2024
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 10,896  $ 3,464 
Accounts receivable, net of allowances of $958 and $1,129, respectively
 569,105  653,069 
Contract assets, net of allowances of $516 and $422, respectively
 341,630  301,942 
Current portion of receivable for insurance claims in excess of deductibles 9,519  9,081 
Refundable income taxes 2,570  4,638 
Prepaid expenses and other current assets 34,508  42,468 
Total current assets 968,228  1,014,662 
Property and equipment, net of accumulated depreciation of $395,213 and $387,223, respectively
 273,823  278,226 
Operating lease right-of-use assets 42,363  42,648 
Goodwill 113,043  112,983 
Intangible assets, net of accumulated amortization of $35,775 and $34,573, respectively
 74,546  75,691 
Receivable for insurance claims in excess of deductibles 34,420  34,553 
Deferred income taxes 5,741  5,734 
Investment in joint ventures 3,763  3,730 
Other assets 6,134  5,832 
Total assets $ 1,522,061  $ 1,574,059 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 4,457  $ 4,363 
Current portion of operating lease obligations 12,192  12,141 
Current portion of finance lease obligations 938  1,046 
Accounts payable 286,228  295,476 
Contract liabilities 292,641  321,958 
Current portion of accrued self-insurance 25,414  25,883 
Accrued income taxes 5,161  196 
Other current liabilities 111,716  87,837 
Total current liabilities 738,747  748,900 
Deferred income tax liabilities 52,516  52,498 
Long-term debt 82,702  70,018 
Accrued self-insurance 53,070  53,600 
Operating lease obligations, net of current maturities 30,140  30,496 
Finance lease obligations, net of current maturities 1,744  1,930 
Other liabilities 14,470  16,257 
Total liabilities 973,389  973,699 
Commitments and contingencies
Shareholders’ equity:
Preferred stock—$0.01 par value per share; 4,000,000 authorized shares; none issued and outstanding at March 31, 2025 and December 31, 2024
 —  — 
Common stock—$0.01 par value per share; 100,000,000 authorized shares; 15,521,800 and 16,121,901 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively
 155  161 
Additional paid-in capital 152,898  159,133 
Accumulated other comprehensive loss (12,529) (12,651)
Retained earnings 408,148  453,717 
Total shareholders’ equity 548,672  600,360 
Total liabilities and shareholders’ equity $ 1,522,061  $ 1,574,059 
3

MYR GROUP INC.
Unaudited Consolidated Statements of Operations
Three Months Ended March 31, 2025 and 2024
Three months ended
March 31,
(in thousands, except per share data) 2025 2024
Contract revenues $ 833,620  $ 815,562 
Contract costs 736,719  729,319 
Gross profit 96,901  86,243 
Selling, general and administrative expenses 62,524  62,233 
Amortization of intangible assets 1,188  1,228 
Gain on sale of property and equipment (1,101) (1,489)
Income from operations 34,290  24,271 
Other income (expense):    
Interest income 191  142 
Interest expense (1,414) (1,054)
Other expense, net (300) (263)
Income before provision for income taxes 32,767  23,096 
Income tax expense 9,459  4,157 
Net income $ 23,308  $ 18,939 
Income per common share:
—Basic $ 1.46  $ 1.13 
—Diluted $ 1.45  $ 1.12 
Weighted average number of common shares and potential common shares outstanding:
—Basic 15,994  16,711 
—Diluted 16,056  16,837 
4

MYR GROUP INC.
Unaudited Consolidated Statements of Cash Flows
Three Months Ended March 31, 2025 and 2024
Three months ended
March 31,
(in thousands) 2025 2024
Cash flows from operating activities:
Net income $ 23,308  $ 18,939 
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization of property and equipment 15,005  14,602 
Amortization of intangible assets 1,188  1,228 
Stock-based compensation expense 2,333  1,917 
Gain on sale of property and equipment (1,101) (1,489)
Other non-cash items 71  656 
Changes in operating assets and liabilities:
Accounts receivable, net 84,015  (6,009)
Contract assets, net (39,618) (30,962)
Receivable for insurance claims in excess of deductibles (305) 197 
Other assets 9,509  13,409 
Accounts payable (7,831) (30,990)
Contract liabilities (29,337) 30,758 
Accrued self-insurance (1,000) (4,426)
Other liabilities 27,049  (140)
Net cash flows provided by operating activities 83,286  7,690 
Cash flows from investing activities:
Proceeds from sale of property and equipment 2,176  1,879 
Purchases of property and equipment (13,066) (25,783)
Net cash flows used in investing activities (10,890) (23,904)
Cash flows from financing activities:
Borrowings under revolving lines of credit 230,695  121,745 
Repayments under revolving lines of credit (215,761) (117,463)
Payment of principal obligations under equipment notes (2,156) (2,591)
Payment of principal obligations under finance leases (299) (275)
Repurchase of common stock (75,000) — 
Payments related to tax withholding for stock-based compensation (2,451) (5,866)
Net cash flows used in financing activities (64,972) (4,450)
Effect of exchange rate changes on cash 8  (324)
Net increase (decrease) in cash and cash equivalents 7,432  (20,988)
Cash and cash equivalents:
Beginning of period 3,464  24,899 
End of period $ 10,896  $ 3,911 
5

MYR GROUP INC.
Unaudited Consolidated Selected Data,
Unaudited Performance Measure and Reconciliation of Non-GAAP Measure
For the Three and Twelve Months Ended March 31, 2025 and 2024 and
As of March 31, 2025, December 31, 2024, March 31, 2024 and March 31, 2023
Three months ended
March 31,		 Last twelve months ended
March 31,
(dollars in thousands, except share and per share data) 2025 2024 2025 2024
Summary Statement of Operations Data:
Contract revenues $ 833,620  $ 815,562  $ 3,380,348 $ 3,647,851
Gross profit $ 96,901  $ 86,243  $ 300,977 $ 366,248
Income from operations $ 34,290  $ 24,271  $ 64,101 $ 125,938
Income before provision for income taxes $ 32,767  $ 23,096  $ 56,164 $ 121,029
Income tax expense $ 9,459  $ 4,157  $ 21,532 $ 34,263
Net income $ 23,308  $ 18,939  $ 34,632 $ 86,766
Tax rate 28.9  % 18.0  % 38.3  % 28.3  %
Per Share Data:
Income per common share:
–Basic
 $ 1.46  $ 1.13  $ 2.19  (1) $ 5.19  (1)
–Diluted
 $ 1.45  $ 1.12  $ 2.18  (1) $ 5.16  (1)
Weighted average number of common shares and potential common shares outstanding:
–Basic
 15,994  16,711  16,290  (2) 16,706  (2)
–Diluted
 16,056  16,837  16,344  (2) 16,828  (2)
(in thousands) March 31,
2025		 December 31,
2024		 March 31,
2024		 March 31,
2023
Summary Balance Sheet Data:
Total assets $ 1,522,061  $ 1,574,059  $ 1,583,490  $ 1,360,237 
Total shareholders’ equity $ 548,672  $ 600,360  $ 663,720  $ 577,565 
Goodwill and intangible assets $ 187,589  $ 188,674  $ 197,314  $ 202,299 
Total funded debt (3) $ 87,159  $ 74,381  $ 37,932  $ 25,658 
Three months ended
March 31,
(dollars in thousands) 2025 2024
Segment Results: Amount Percent Amount Percent
Contract revenues:
Transmission & Distribution $ 461,769  55.4  % $ 490,395  60.1  %
Commercial & Industrial 371,851  44.6  325,167  39.9 
Total $ 833,620  100.0  % $ 815,562  100.0  %
Operating income:
Transmission & Distribution $ 36,221  7.8  % $ 29,837  6.1  %
Commercial & Industrial 17,377  4.7  11,423  3.5 
Total 53,598  6.4  41,260  5.1 
Corporate (19,308) (2.3) (16,989) (2.1)
Consolidated $ 34,290  4.1  % $ 24,271  3.0  %
    
See notes at the end of this earnings release
6

MYR GROUP INC.
Unaudited Performance Measures and Reconciliation of Non-GAAP Measures
Three and Twelve Months Ended March 31, 2025 and 2024
Three months ended
March 31,		 Last twelve months ended
March 31,
(in thousands, except share, per share data, ratios and percentages) 2025 2024 2025 2024
Financial Performance Measures (4):        
EBITDA (5) $ 50,183  $ 39,838  $ 128,137  $ 186,706 
EBITDA per Diluted Share (6) $ 3.13  $ 2.37  $ 7.90  $ 11.10 
EBIA, net of taxes (7) $ 25,022  $ 20,694  $ 41,573  $ 93,654 
Free Cash Flow (8) $ 70,220  $ (18,093) $ 99,490  $ (49,356)
Book Value per Period End Share (9) $ 35.21  $ 39.30 
Tangible Book Value (10) $ 361,083  $ 466,406 
Tangible Book Value per Period End Share (11) $ 23.17  $ 27.62 
Funded Debt to Equity Ratio (12) 0.16  0.06 
Asset Turnover (13) 2.13  2.68 
Return on Assets (14) 2.2  % 6.4  %
Return on Equity (15) 5.2  % 15.0  %
Return on Invested Capital (16) 6.3  % 14.9  %
Reconciliation of Non-GAAP Measures:
Reconciliation of Net Income to EBITDA:
Net income $ 23,308  $ 18,939  $ 34,632  $ 86,766 
Interest expense, net 1,223  912  6,421  4,698 
Income tax expense 9,459  4,157  21,532  34,263 
Depreciation and amortization 16,193  15,830  65,552  60,979 
EBITDA (5) $ 50,183  $ 39,838  $ 128,137  $ 186,706 
Reconciliation of Net Income per Diluted Share to EBITDA per Diluted Share:
Net income per share $ 1.45  $ 1.12  $ 2.18  $ 5.16 
Interest expense, net, per share 0.08  0.06  0.39  0.28 
Income tax expense per share 0.59  0.25  1.32  2.04 
Depreciation and amortization per share 1.01  0.94  4.01  3.62 
EBITDA per Diluted Share (6) $ 3.13  $ 2.37  $ 7.90  $ 11.10 
Reconciliation of Non-GAAP measure:
Net income $ 23,308  $ 18,939  $ 34,632  $ 86,766 
Interest expense, net 1,223  912  6,421  4,698 
Amortization of intangible assets 1,188  1,228  4,829  4,909 
Tax impact of interest and amortization of intangible assets (697) (385) (4,309) (2,719)
EBIA, net of taxes (7) $ 25,022  $ 20,694  $ 41,573  $ 93,654 
Calculation of Free Cash Flow:
Net cash flow from operating activities $ 83,286  $ 7,690  $ 162,711  $ 41,548 
Less: cash used in purchasing property and equipment (13,066) (25,783) (63,221) (90,904)
Free Cash Flow (8) $ 70,220  $ (18,093) $ 99,490  $ (49,356)


See notes at the end of this earnings release.
7

MYR GROUP INC.
Unaudited Performance Measures and Reconciliation of Non-GAAP Measures
As of March 31, 2025, 2024 and 2023
(in thousands, except per share amounts) March 31, 2025 March 31, 2024
Reconciliation of Book Value to Tangible Book Value:
Book value (total shareholders' equity) $ 548,672  $ 663,720 
Goodwill and intangible assets (187,589) (197,314)
Tangible Book Value (10) $ 361,083  $ 466,406 
Reconciliation of Book Value per Period End Share to Tangible Book Value per Period End Share:
Book value per period end share $ 35.21  $ 39.30 
Goodwill and intangible assets per period end share (12.04) (11.68)
Tangible Book Value per Period End Share (11) $ 23.17  $ 27.62 
Calculation of Period End Shares:
Shares outstanding 15,522  16,762 
Plus: common equivalents 62  126 
Period End Shares (17) 15,584  16,888 
(in thousands) March 31, 2025 March 31, 2024 March 31, 2023
Reconciliation of Invested Capital to Shareholders Equity:
Book value (total shareholders' equity) $ 548,672  $ 663,720  $ 577,565 
Plus: total funded debt 87,159  37,932  25,658 
Less: cash and cash equivalents (10,896) (3,911) (47,039)
Invested Capital $ 624,935  $ 697,741  $ 556,184 
Average Invested Capital (18) $ 661,338  $ 626,963 
See notes at the end of this earnings release.

8

(1)Last-twelve-months earnings per share is the sum of earnings per share reported in the last four quarters.
(2)Last-twelve-months weighted average basic and diluted shares were determined by adding the weighted average shares reported for the last four quarters and dividing by four.
(3)Funded debt includes outstanding borrowings under our revolving credit facility and our outstanding equipment notes.
(4)These financial performance measures are provided as supplemental information to the financial statements. These measures are used by management to evaluate our past performance, our prospects for future performance and our ability to comply with certain material covenants as defined within our credit agreement, and to compare our results with those of our peers. In addition, we believe that certain of the measures, such as book value, tangible book value, free cash flow, asset turnover, return on equity, and debt leverage are measures that are monitored by sureties, lenders, lessors, suppliers and certain investors. Our calculation of each measure is described in the following notes; our calculation may not be the same as the calculations made by other companies.
(5)EBITDA is defined as earnings before interest, taxes, depreciation and amortization. EBITDA is not recognized under GAAP and does not purport to be an alternative to net income as a measure of operating performance or to net cash flows provided by operating activities as a measure of liquidity. Certain material covenants contained within our credit agreement are based on EBITDA with certain additional adjustments, including our interest coverage ratio and leverage ratio, which we must comply with to avoid potential immediate repayment of amounts borrowed or additional fees to seek relief from our lenders. In addition, management considers EBITDA a useful measure because it provides MYR Group Inc. and its investors with an additional tool to compare our operating performance on a consistent basis by removing the impact of certain items that management believes to not directly reflect the company’s core operations. Management further believes that EBITDA is useful to investors and other external users of our financial statements in evaluating the company’s operating performance and cash flow because EBITDA is widely used by investors to measure a company’s operating performance without regard to items such as interest expense, taxes, depreciation and amortization, which can vary substantially from company to company depending upon accounting methods and book value of assets, useful lives placed on assets, capital structure and the method by which assets were acquired.
(6)EBITDA per diluted share is calculated by dividing EBITDA by the weighted average number of diluted shares outstanding for the period. EBITDA per diluted share is not recognized under GAAP and does not purport to be an alternative to income per diluted share.
(7)EBIA, net of taxes is defined as net income plus net interest plus amortization of intangible assets, less the tax impact of net interest and amortization of intangible assets. The tax impact of net interest and amortization of intangible assets is computed by multiplying net interest and amortization of intangible assets by the effective tax rate. Management uses EBIA, net of taxes, to measure our results exclusive of the impact of financing and amortization of intangible assets costs.
(8)Free cash flow, which is defined as cash flow provided by operating activities minus cash flow used in purchasing property and equipment, is not recognized under GAAP and does not purport to be an alternative to net income, cash flow from operations or the change in cash on the balance sheet. Management views free cash flow as a measure of operational performance, liquidity and financial health.
(9)Book value per period end share is calculated by dividing total shareholders’ equity at the end of the period by the period end shares outstanding.
(10)Tangible book value is calculated by subtracting goodwill and intangible assets outstanding at the end of the period from shareholders’ equity. Tangible book value is not recognized under GAAP and does not purport to be an alternative to book value or shareholders’ equity.
(11)Tangible book value per period end share is calculated by dividing tangible book value at the end of the period by the period end number of shares outstanding. Tangible book value per period end share is not recognized under GAAP and does not purport to be an alternative to income per diluted share.
(12)The funded debt to equity ratio is calculated by dividing total funded debt at the end of the period by total shareholders’ equity at the end of the period.
(13)Asset turnover is calculated by dividing the current period revenue by total assets at the beginning of the period.
(14)Return on assets is calculated by dividing net income for the period by total assets at the beginning of the period.
(15)Return on equity is calculated by dividing net income for the period by total shareholders’ equity at the beginning of the period.
(16)Return on invested capital is calculated by dividing EBIA, net of taxes, less any dividends, by average invested capital. Return on invested capital is not recognized under GAAP, and is a key metric used by management to determine our executive compensation.
(17)Period end shares is calculated by adding average common stock equivalents for the quarter to the period end balance of common stock outstanding. Period end shares is not recognized under GAAP and does not purport to be an alternative to diluted shares. Management views period end shares as a better measure of shares outstanding as of the end of the period.
(18)Average invested capital is calculated by adding net funded debt (total funded debt less cash and marketable securities) to total shareholders’ equity and calculating the average of the beginning and ending of each period.
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