 ROLLING MEADOWS, Ill., July 29, 2020 GLOBE NEWSWIRE -- 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 western Canada, today announced its second-quarter and first-half 2020 financial results.Highlights Second quarter revenues of 513.1 million Second quarter net income attributable to MYR of 13.4 million, or 0.80 per diluted share Second quarter EBITDA of 31.5 million Record backlog of 1.55 billionManagement Comments Rick Swartz, MYRs President and CEO, said, We are pleased with our strong financial performance in the second quarter of 2020, highlighted by revenues of 513.1 million, a 14.3 percent increase over the second quarter of 2019, along with increases in gross profit, earnings per share, net income, EBITDA and free cash flow. Backlog in the second quarter was 1.55 billion, a slight increase over the first quarter of 2020 and another record high for MYR Group. We experienced a moderate slowdown on projects, primarily in our CI segment, due to the COVID-19 pandemic, yet the project pipeline remains active in both our TD and CI segments. Although the situation surrounding COVID-19 remains fluid, the outlook is solid for the majority of the markets we serve and we are fortunate to be part of an industry that constructs, maintains and supports our nations critical electric infrastructure. As a leader in this industry, we are well positioned going forward and are confident in our ability to adapt, grow and deliver shareholder value while remaining focused on the safety and well-being of our employees, clients and communities.Second Quarter Results MYR reported second-quarter 2020 revenues of 513.1 million, an increase of 64.3 million, or 14.3 percent, compared to the second quarter of 2019. Specifically, our Transmission and Distribution TD segment reported revenues of 276.8 million for the second quarter of 2020, an increase of 20.9 million, or 8.1 percent, from the second quarter of 2019, primarily due to an increase in volume on both transmission and distribution projects. Our Commercial and Industrial CI segment reported revenues of 236.3 million for the second quarter of 2020, an increase of 43.4 million, or 22.5 percent, from the second quarter of 2019, primarily due to incremental revenues from the CSI Electrical Contractors, Inc. CSI acquisition, partially offset by a decrease due to the timing of activity on various-sized projects along with impacts related to the COVID-19 pandemic.Consolidated gross profit increased to 61.3 million in the second quarter of 2020, an increase of 18.1 million or 42.0 percent, from the second quarter of 2019. The increase in gross profit was due to higher revenues and margins. Gross margin was 11.9 percent for the second quarter of 2020 compared to 9.6 percent for the second quarter of 2019. The increase in gross margin was primarily due to better-than-anticipated productivity, an increase in higher margin work and favorable job close-outs on certain projects. These improvements were partially offset by decreases in revenue recognized on pending claims and change orders for which the Company is seeking reimbursement, and labor inefficiencies on certain projects. Additionally, gross margin during the second quarter of 2019 was negatively impacted by inefficiencies associated with a joint venture project, that has since been completed. Changes in estimates of gross profit on certain projects resulted in a gross margin increase of 0.2 percent and a decrease of 0.9 percent for the second quarter of 2020 and 2019, respectively.Selling, general and administrative expenses SGA increased to 41.2 million in the second quarter of 2020, compared to 33.9 million for the second quarter of 2019. The period-over-period increase was primarily due to the acquisition of CSI along with higher employee-related expenses to support the growth in our operations, partially offset by a reversal of contingent compensation expense related to a prior acquisition.Income tax expense was 5.0 million for the second quarter of 2020, with an effective tax rate of 27.1 percent, compared to income tax expense of 2.5 million for the second quarter of 2019, with an effective tax rate of 27.9 percent. The period-over-period decrease in tax rate was primarily due to a decrease in our foreign taxes.For the second quarter of 2020, net income attributable to MYR Group Inc. was 13.4 million, or 0.80 per diluted share attributable to MYR Group Inc., compared to 7.2 million, or 0.43 per diluted share, for the same period of 2019. Second-quarter 2020 EBITDA, a non-GAAP financial measure, was 31.5 million, compared to 20.6 million in the second quarter of 2019.First-Half Results MYR reported first-half 2020 revenues of 1.0 billion, an increase of 114.6 million, or 12.5 percent, compared to the first half of 2019. Specifically, the TD segment reported revenues of 536.0 million, an increase of 7.5 million, or 1.4 percent, from the first half of 2019, primarily due to an increase in revenue on distribution projects, partially offset by a decrease in revenue on transmission projects. The CI segment reported revenues of 495.5 million, an increase of 107.1 million, or 27.6 percent from the first half of 2019, primarily due to incremental revenues from the CSI acquisition, partially offset by a decrease due to the timing of activity on various-sized projects along with impacts related to the COVID-19 pandemic.Consolidated gross profit increased to 122.9 million in the first half of 2020, an increase of 36.9 million or 42.9 percent, from the first half of 2019. The increase in gross profit was due to higher revenues and margins. Gross margin was 11.9 percent for the first half of 2020 compared to 9.4 percent for the first half of 2019. The increase in gross margin was primarily due to better-than-anticipated productivity and an increase in higher margin work on certain projects. These increases were partially offset by decreases in revenue recognized on pending claims and change orders for which the Company is seeking reimbursement, labor inefficiencies on certain projects, and inclement weather experienced on certain projects. Additionally, gross margin during the first half of 2019 was negatively impacted by inefficiencies related to a joint venture project, that has since been completed. Changes in estimates of gross profit on certain projects resulted in gross margin decreases of 0.1 percent and 1.0 percent for the first half of 2020 and 2019, respectively.SGA increased to 86.2 million in the first half of 2020, compared to 66.9 million for the first half of 2019. The period-over-period increase was primarily due to the acquisition of CSI along with higher employee-related expenses to support the growth in our operations partially offset by a reversal of contingent compensation expense related to a prior acquisition.Income tax expense was 9.0 million for the first half of 2020, with an effective tax rate of 27.9 percent, compared to tax expense of 5.0 million for the first half of 2019, with an effective tax rate of 27.9 percent.For the first half of 2020, net income attributable to MYR Group Inc. was 23.3 million, or 1.39 per diluted share attributable to MYR Group Inc., compared to 14.6 million, or 0.87 per diluted share, for the same period of 2019.Backlog As of June 30, 2020, MYRs backlog was 1.55 billion, compared to 1.54 billion as of March 31, 2020. As of June 30, 2020, TD backlog was 520.8 million, and CI backlog was 1.03 billion. Total backlog at June 30, 2020 increased 0.4 million, or 33.5 percent, from the 1.16 billion reported at June 30, 2019.Balance Sheet As of June 30, 2020, MYR had 280.2 million of borrowing availability under its revolving credit facility.Non-GAAP Financial Measures To supplement MYRs 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. MYRs 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 MYRs performance using the same tools that management uses to evaluate MYRs past performance, reportable business segments and prospects for future performance, iii publicly disclose results that are relevant to financial covenants included in MYRs 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 second-quarter 2020 results on Thursday, July 30, 2020 at 9:00 a.m. Central time. To participate in the conference call via telephone, please dial 877 561-2750 domestic or 763 416-8565 international and enter conference ID 4291068, at least five minutes prior to the start of the event. A replay of the conference call will be available through Thursday, August 6, 2020, at 1:00 P.M. Eastern time, by dialing 855 859-2056 or 404 537-3406 and entering conference ID 4291068. MYR will also broadcast the conference call live via the internet. 