Financial Data and Key Metrics Changes - Second quarter 2024 revenues were 60 million or 6.7% compared to the same period last year [10] - Gross margin for Q2 2024 was 4.9%, down from 10.1% in the same period last year [11] - Net loss for Q2 2024 was 22 million for the same period last year [15] - Total backlog as of June 30, 2024, was 458 million, a decrease of 9% year-over-year, with 176 million from distribution [10] - Commercial and Industrial (C&I) revenues were 50 billion in capital investments by 2030 [8] - Data centers are projected to consume as much as 9.1% of U.S. electricity generation annually by 2030, up from an estimated 4% today [19] Company Strategy and Development Direction - The company is focusing on strategic expansion of existing partnerships and capturing new opportunities in the markets served [7] - Continued emphasis on quality execution of projects and overcoming near-term challenges in the clean energy portfolio [18] - The company aims to maintain a strong balance sheet and pursue organic growth, acquisitions, and opportunistic share repurchases [16] Management Comments on Operating Environment and Future Outlook - Management noted that the second quarter performance was negatively impacted by a small group of underperforming projects, but core markets remain resilient [24] - The company is optimistic about long-term growth opportunities in the T&D segment despite short-term lumpiness in project rollouts [30] - Management expressed confidence in the ability to manage risks associated with ongoing projects and potential litigation [32][49] Other Important Information - SG&A expenses for Q2 2024 were 4 million compared to the same period last year [14] - The company repurchased 117,000 shares at a weighted average price of $138 per share during the second quarter [16] Q&A Session Summary Question: On the solar project that had delays and cost overruns, are these in competitive markets? - Yes, some projects are in competitive markets, and the company will be selective in bidding for utility-scale solar projects [25] Question: Should we expect T&D margins to exit at the low-end of the long-term outlook? - Performance is expected to be in the mid-range for T&D and lower range for C&I, barring troubled projects [26] Question: Can you discuss the outlook for the T&D side given market expectations for softness? - There is a lot of activity in small and mid-sized projects, but larger projects are slower to come to market [29] Question: Are there provisions to protect against delays in clean energy projects? - There are contractual protections, but the company is prepared for potential litigation if necessary [31][32] Question: How do you view revenue guidance for the rest of the year? - Revenue is expected to decline as the company remains selective in solar projects, but growth is anticipated in C&I [40] Question: How comfortable are you that you have fully accounted for costs in troubled projects? - There is always potential risk in finishing projects, but the company has good visibility on what remains [49]
MYR(MYRG) - 2024 Q2 - Earnings Call Transcript