MYR Group Inc. (MYRG) has reported a marginal fall of 0.47 percent in profit for the quarter ended Sep. 30, 2016. The company has earned $6.15 million, or $0.38 a share, compared with $6.18 million or $0.29 a share, a year ago. Revenue during the quarter grew 4.96 percent to $283.26 million from $269.86 million in the previous year period. Gross margin for the quarter expanded 142 basis points over the previous year period to 12.03 percent. Total expenses were 96.07 percent of quarterly revenues, down from 96.32 percent for the same period last year. This has led to an improvement of 26 basis points in operating margin to 3.93 percent.
Operating income for the quarter was $11.14 million, compared with $9.92 million in the previous year period.
Bill Koertner, MYR’s president and chief executive officer, said, "Third-quarter 2016 revenue and net income improved sequentially over the first two quarters of 2016. Revenue and margins also improved year over year due mainly to organic growth and acquisitions coupled with improved project execution. We also had a sizable increase in our backlog which was driven primarily by the Cross Texas Transmission award to construct approximately 68 miles of 345kV transmission line valued at approximately $125 million. While bidding activity continued at a robust pace during the quarter, both our T&D and C&I markets remain highly competitive. Our strategic acquisition of Western Pacific Enterprises (“WPE”), was completed on October 28 and will expand our C&I and T&D capabilities in western Canada to serve new and existing customers. WPE has an exceptional reputation in its market region and is managed by an excellent management team that shares MYR’s values."
Operating cash flow improves significantly
MYR Group Inc. has generated cash of $40.50 million from operating activities during the nine month period, up 278.65 percent or $29.80 million, when compared with the last year period. The company has spent $15.40 million cash to meet investing activities during the nine month period as against cash outgo of $52.19 million in the last year period.
The company has spent $64.36 million cash to carry out financing activities during the nine month period as against cash outgo of $5.71 million in the last year period.
Cash and cash equivalents stood at $0.58 million as on Sep. 30, 2016, down 98.08 percent or $29.84 million from $30.43 million on Sep. 30, 2015.
Working capital drops significantly
MYR Group Inc. has witnessed a decline in the working capital over the last year. It stood at $87.60 million as at Sep. 30, 2016, down 38.52 percent or $54.88 million from $142.49 million on Sep. 30, 2015. Current ratio was at 1.44 as on Sep. 30, 2016, down from 1.74 on Sep. 30, 2015.
Days sales outstanding went down to 62 days for the quarter compared with 64 days for the same period last year.
At the same time, days payable outstanding was almost stable at 33 days for the quarter, when compared with the previous year period.
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