MYR Group Inc. (MYRG) has reported a 32.60 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $7.80 million, or $0.48 a share in the quarter, compared with $5.88 million, or $0.29 a share for the same period last year. Revenue during the quarter grew 26.73 percent to $343.66 million from $271.18 million in the previous year period. Gross margin for the quarter expanded 18 basis points over the previous year period to 12.21 percent. Total expenses were 95.59 percent of quarterly revenues, down from 96.20 percent for the same period last year. This has led to an improvement of 61 basis points in operating margin to 4.41 percent.
Operating income for the quarter was $15.17 million, compared with $10.30 million in the previous year period.
Rick Swartz, MYR's president and chief executive officer said, "Favorable weather contributed to our strong fourth quarter, and our full-year 2016 financial performance demonstrates the success of our efforts to grow MYR through our three-pronged strategy of prudent capital allocation for acquisitions, organic growth and return of capital to shareholders. Although full year net income decreased from the prior year, our revenue of $1.142 billion was a record high for a second consecutive year. We completed the acquisition of Western Pacific Enterprises Ltd., which expands our presence into western Canada, and began a new C&I operation in California. Our backlog grew $68.2 million to $688.8 million as of December 31, 2016 as we successfully executed our strategy."
Operating cash flow improves significantly
MYR Group Inc. has generated cash of $54.49 million from operating activities during the year, up 26.72 percent or $11.49 million, when compared with the last year. The company has spent $34.13 million cash to meet investing activities during the year as against cash outgo of $56.93 million in the last year. It has incurred net capital expenditure of $22.07 million on net basis during the year, down 49.65 percent or $21.77 million from year ago.
The company has spent $35.54 million cash to carry out financing activities during the year as against cash outgo of $23.91 million in the last year period.
Cash and cash equivalents stood at $23.85 million as on Dec. 31, 2016, down 40.08 percent or $15.95 million from $39.80 million on Dec. 31, 2015.
Working capital increases marginally
MYR Group Inc. has recorded an increase in the working capital over the last year. It stood at $129.28 million as at Dec. 31, 2016, up 4.57 percent or $5.65 million from $123.63 million on Dec. 31, 2015. Current ratio was at 1.57 as on Dec. 31, 2016, down from 1.69 on Dec. 31, 2015.
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