Good morning, everyone and welcome to the MYR Group Second Quarter 2015 Earnings Results Conference Call. Today’s conference is being recorded. At this time, for opening remarks and introductions, I would like to turn the conference over to Philip Kranz of Dresner. Please go ahead, sir.

Thank you and good morning everyone. I would like to welcome you to the MYR Group conference call to discuss the company’s second quarter results for 2015, which were reported yesterday. Joining us on today’s call are Bill Koertner, President and Chief Executive Officer; Paul Evans, Vice President and Chief Financial Officer; and Rick Swartz, Senior Vice President and Chief Operating Officer. If you did not receive yesterday’s press release, please contact Dresner Corporate Services at 312-726-3600 and we will send you a copy or you can go to www.myrgroup.com, where a copy is available under the Investor Relations tab. Also, a replay of today’s call will be available until Wednesday, August 12, 2015 at 11:59 p.m. Eastern Time by dialing 855-859-2056 or 404-537-3406 and entering conference ID 90026573. Before we begin, I want to remind you this discussion may contain forward-looking statements. Any such statements are based upon information available to MYR management as of this date and MYR assumes no obligation to update any such forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Accordingly, these statements are no guarantee of future performance. These risks and uncertainties are discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2014, the company’s Quarterly Report on Form 10-Q for the second quarter of 2015 and in yesterday’s press release. Certain non-GAAP financial information will be discussed on the call today. A reconciliation of this non-GAAP information to the most comparable GAAP measure is set forth in yesterday’s press release. With that said, let me turn the call over to Bill Koertner.

Good morning, everyone. Welcome to our second quarter 2015 conference call to discuss financial and operational results. I will start by providing a summary of the second quarter results and then turn the call over to Paul Evans, our CFO, for a more detailed financial review. Following Paul’s discussion, Rick Swartz, our Chief Operating Officer will provide an overall industry outlook and discuss some of MYR Group’s opportunities going forward. I will then conclude with some closing remarks and open the call for your comments and questions. In the second quarter of 2015, revenues, gross profit, EBITDA, net income and diluted earnings per share grew compared to the second quarter of 2014. Revenues increased 20.8% to $276.5 million in 2015, while net income and earnings per share increased 4.3% and 5.6% respectively compared to the second quarter last year. As previously reported, we acquired substantially all of the assets of E.S. Boulos in mid-April. Boulos is one of New England’s largest and most experienced electrical contractors, which enhances our T&D presence in the Northeast and further expands our C&I presence outside of our existing markets. We executed our first contract to perform construction services in Canada and have commenced work on a large substation in Northern Manitoba. We believe this project provides us with a strong foundation to compete for additional projects and what we believe will be a market with a number of good opportunities. To further support the company’s overall strategy and Canadian efforts, the Board bolstered its expertise with the appointment of two new board members effective at the end of July. Kenneth Hartwick and Donald Lucky have extensive energy industry expertise as well as considerable international experience. We believe Ken and Don will add significant value to our organization. On July 30, we increased our share repurchase program from $25 million to $42.5 million and extended the term of the program through August 31, 2016. I would also like to note that MYR stock was added to the S&P Small Cap 600 Index at the end of June. We believe this will enhance our visibility within the capital markets. We remain optimistic about both our T&D and C&I business segments and believe there will be plentiful bidding opportunities both near and long-term going forward. Now, Paul Evans will provide details on second quarter 2015 financial results.

Thank you, Bill and good morning everyone. As Bill stated earlier, the second quarter of 2015 was highlighted by increases in revenues, gross profit, net income, earnings per share and EBITDA compared to the second quarter of 2014. Our revenues for the second quarter of 2015 were $276.5 million, which represented a $47.6 million increase or 20.8% increase compared to the same period in 2014. The increase was primarily due to higher T&D revenues in jobs of all sizes and the acquisition of ESB. On a consolidated basis, material and subcontractor costs comprised approximately 33% of total contract cost in the second quarter of 2015 as compared to approximately 31% in the second quarter of 2014. Compared to 2014 second quarter, T&D revenues increased $34.2 million to $200.6 million, while C&I revenues increased $13.4 million to $75.9 million. Focusing on the T&D segment, revenues were $150.5 million for transmission and $50.1 million for distribution in the second quarter of 2015. This compares to $132.7 million for transmission and $33.7 million for distribution for the second quarter of 2014. The increase in transmission revenue was primarily due to an increase in the number of jobs of all sizes, while the increase in distribution revenue was due to an increase in smaller projects and alliance agreements. Material and subcontractor cost in our T&D segment comprised approximately 27% of total contract cost in the second quarter of 2015 compared to approximately 25% in the second quarter of 2014. In the second quarter of 2015, revenues from our transmission business were 75% of total T&D revenues compared to 79.8% in the second quarter of 2014. T&D revenues from our distribution business were 25% of total T&D revenues for the second quarter of 2015 compared to 20.2% in the second quarter of 2014. Growth in…

Thanks Paul and good morning everyone. As Bill and Paul discussed, our growth trend continued throughout the second quarter of 2015, as our business units executed contracts of all sizes and our project development teams evaluated and priced the pipeline of bidding opportunities. U.S. and Canadian utilities continue to invest heavily in the T&D infrastructure projects, not only in new construction services, but also in upgrades as well as maintenance and repairs driven by the ever-changing regulatory environment and the demand for clean, reliable energy. Because of this investment in the T&D infrastructure along with our C&I and T&D expansion and acquisition of E.S. Boulos, we are anticipating strong activity going forward and are confident we will build on the momentum we have gained in both of our market segments. Along with significant opportunities in small to medium-size transmission projects in the second quarter, we saw a number of large project proposals come out for bid. Among these projects is the first section of the Pioneer 765KV line and Nipsco’s 100-mile 345KV, Reynolds-Topeka project. Additionally, we continue to track several large interregional and multistate transmission projects in both the U.S. and Canada. As you know, these projects take years to develop and require extensive permitting. Earlier this year, the SunZia project, a 515-mile, 500KV project received a decision from the Department of Interior to move forward. In the second quarter, the TransWest Express 725-mile merchant line that is planned to run from Wyoming to Southern Nevada received its draft environmental impacts statement from the Department of Interior. This allows TransWest to move to the next step of receiving a record of decision on the project, which is a critical milestone and provides the need of confidence for selling capacity and moving towards construction. Both of these projects represent a large…

Thank you for that update, Rick. Our strategy for growing the business remains grounded in improving contracting principles. We need to be smart in picking our markets, remain disciplined in our bidding, assess the business and financial risk of each project and manage our contract and our cost and above all else execute our work safely and productively. We remain optimistic about the long-term growth prospects of all of our markets. Our proven track record, strong financial position and productive workforce positioned us to profitably grow the company on a variety of fronts. Not only do have one of the best fleets of specialty equipment in the industry, we also have the ability to further invest in our fleet tooling and human resource development. This should keep our cost structure competitive and ensure we have the assets needed to capitalize on opportunities. We are striving to be an even leaner, more competitive organization. So, we can provide even greater value to our customers and shareholders. Operator, we are now ready to open the call up for comments and questions.

Thank you. [Operator Instructions] Our first question comes from the line of Dan Mannes with Avondale Partners. Your line is now open.

Thanks. Good morning, everyone.

Good morning, Dan.

Hey, a couple of quick follow-ups. First, you commented – during the second quarter, you had some underperformance on some projects obviously margins were a little bit less than we were anticipating. Can you talk at all about maybe any of the causes there? And secondarily, are these projects that are likely to continue into future quarters or once they are mostly wrapped up intra-quarter?

I think a big portion of our, I guess, underperformance had to do with weather. And as we have evaluated and went through that, we would say that, that’s somewhere in that $1 million to $3 million range. We don’t see that continuing going into future quarters, but again we can’t control the weather, but that was how we kind of quantified the impact of that. Bill, do you have anything to add to that?

No.

Perfect. Secondly, I wanted to ask about the bid activity, you highlighted a couple of large jobs that are moving into bidding. Obviously, one of your competitors mentioned they were seeing some challenges with large projects they anticipated starting up this year sliding? Are you seeing similar activity as it relates to deferrals or are things kind of going along with pace you had previously anticipated?

I think we have said in previous quarters that we see the small to medium size work continuing. We always see that push out on larger projects. The permitting in the regulatory side seemed to push those out. We know there is a need for them. It’s just a timing issue.

So, you haven’t seen any change. It’s the deferral activity that happened in the past is continuing, but there hasn’t been an acceleration of deferral activity or anything like that?

Not that I have seen. I just think it continues. I wish we could always pick that date. We know there is a backlog of work. I just wish we could control the ballot of when it came out.

Got it. And I just had one final caution on Canada again we are glad to see you, you ramping up on the job in Manitoba. But on a related project, you guys have previously been short-listed and for some reason you are no longer bidding that project as far as we know. I was wondering if there is any change in terms of your approach to that market or if something specific had happened on Bipole III?

Nothing specific on Bipole III, I think it’s like any other project we evaluate, we evaluate the resources, the need, the timing of it, everything else and we are going to take on a project, we are going to put a plan in place that we know will be successful. So, it’s more of a disciplined approach.

Got it. Thank you very much.

Thank you. Our next question comes from the line of Justin Hauke with Robert W. Baird. Your line is now open.

Good morning, guys. Maybe I will ask about the increase in the buyback authorization since that’s new and obviously you didn’t make any share repurchases during the quarter because of the acquisition. But I guess I am just trying to understand how should we interpret the company’s view towards the buyback, you have been doing that fairly regularly now for the last year? And is the increased authorization a signal that this is going to be a permanent source of kind of your capital deployment strategy?

Justin, I think you asked a number of questions. So, I will try and take them in reverse. I mean, we think it’s a good value for our shareholders to have a share repurchase plan in place. It provides a good implied return on investment. And so whether or not it continues on past August 2016, that’s something that management will take up with the Board every time we meet with them. You did state about that we didn’t buy any shares because of the acquisition of the ESB that’s not correct. We didn’t buy any shares, because the price didn’t hit where our pre-filed grid was. So, obviously, we buy when it hits that price and we don’t buy when it doesn’t.

Great. And thanks for that clarification. And I guess my second question is just looking at the balance sheet and the cash flow, last year you had really strong cash flow. This year it’s running a little bit behind. If we look at the working capital, your increasing cost and estimated earnings on billings, in excess of billings, has been rising. Is there anything we should read on that or is that just a timing issue and you would expect the second half cash flow to be stronger than the first?

Well, I don’t think there is anything you should read into that. I mean, our rights to bill or what we call under billing I think are fine. Mostly, it’s really a timing issue when we get billing in. Usually, we see a lot of billings happen in the first part of every month. Obviously, June 30 is the cut off date for reporting period. So, I wouldn’t think you should look any further into that and yet the history of that AR balance sheet we used upon as you saw growth in our AR and also under billing.

Okay, great. Thanks. That’s all I have right now. Thank you very much.

Thank you. Our next question comes from the line of William Newby with D.A. Davidson. Your line is now open.

Hey, guys. Willam Newby here for John Rogers. Just I was hoping you guys could give us some color regarding the segment growth and maybe how much of that was organic versus through acquisition?

We haven’t previously sort of broke down what the results are by our subsidiary level and I think that’s what you are getting at right here. I think you could refer back to our prior press release on ESB, E.S. Boulos on backlog and on revenues we gave a range on that. So, I think you could sort of take that and derive a close number that way. I mean, the business is performing as we had expected and hoped. And what I talked about on our prior call is about 60% of the business is C&I, 40% of the business is T&D.

Perfect. Thank you.

Thank you. Our next question comes from the line of Min Cho with FBR Capital Markets. Your line is now open.

Great, thank you. Actually, my question had to do with the C&I business, it looks like there was a pretty significant increase in the percentage of revenue from fixed price contracts. Want to know if that had to do with ESB or just a change in the industry or function of the type of sectors or geographies that you are in?

I wouldn’t say it’s really to do with ESB although that we saw growth in that segment as a result of ESB. I mean, it’s just a function of the work that we are performing at this period in time. To me, it doesn’t – I don’t really read into that, that we have more fixed price work relative to other work though.

Okay. And in terms of the E.S. Boulos, I understand the revenue breakout. Should we assume that same or similar breakout for backlog as well?

I think it’s probably fair to do that, yes.

Okay, and then it would suggest that your T&D backlog was maybe down a little bit organically on a year-over-year basis?

Using that – yes, using that allocation, you could say that.

Okay. Actually, I think that is it from me. Thank you.

Okay. Thanks, Min Cho.

Thank you. [Operator Instructions] Our next question comes from the line of Tahira Afzal with KeyBanc. Your line is now open.

Hi, folks good morning.

Good morning, Tahira.

Good morning, Tahira.

And thanks for the free plug-in on your prepared commentary, much appreciated. So, I guess my first question is really in regards to the margin line, I am really thinking about electric transmission. And in the previous calls, you have kind of pointed to the last few years as kind of reasonable bookends for your margin range. Does that still hold going forward? And in terms of timing if I really look at the upward end of that bookend, is that still a possibility over the next six months? Are you going to carefully build towards that depending on really the utilization on larger projects?

Tahira, for me it’s a function of what’s our business mix between transmission, distribution and C&I. If distribution in C&I continues to grow obviously the range as I have said previously will be hard to stay within that range. And also, if some of the larger transmission jobs that we are bidding on if they come to pass, they have a higher level of pass-through costs. So, our overall contract margin will come down as a result of that.

Tahira, maybe to add a little further color on that, certainly, we’ve get plenty of competition in the transmission market, as well as the distribution in C&I market. On the transmission side, with all that work that all of us had in Texas for the [indiscernible] work may end up turning out to be a mixed blessing. We all enjoyed the benefit of that, but that created a bunch of new players that haven’t gone away and they have branched out of Texas and have entered new markets. So, we definitely have plenty of competition outside of Texas, that Texas hasn’t absorbed all of that capacity of the equipment and people. So, that has added to the competition that all of us face.

Got it, okay. That makes a lot of sense for the net. It’s great to see you that you finally made some meaningful headway in Canada starting out with something that’s a real small size, but now that you do have some traction there, as you know there are some pretty large projects there. In a couple of years, could you give us an idea of what your scope in this market could potentially be, from what I gather it could be, 5 times to 10 times the size or am I just pushing my limits?

I think we strived it to grow. We are going to grow as smart as Bill always says. We are going to do – we are going to take a disciplined approach. We are going to see what the market is like. We will continue to bid work, see what the workforce is like. We are going to evaluate the projects as we go forward and we will push it as hard as we can, but not to sacrifice results.

Got it. But would you say on the transmission side, would you say, it could potentially, from where you stand right now be one of your fastest growing markets and in terms of scope, how would you size that 2 years, from a 2-year to 3-year opportunity size versus maybe a more traditional buckets in the U.S.?

We don’t announce where we project certain markets or what kind of revenue we can get from them. But we do think it’s a viable market. We do want to be there and compete. And I guess with that being said, we hope to be stronger in the next few years up there.

Got it, okay. And my last question is really on the C&I side, I thought the data center commentary was very interesting, clearly a market that could potentially see by a long-term positive secular trend, Bill can you comment a bit more on which regions you would like to go in from a sort of longer-term perspective?

I will start on that and then Rick can help too. Obviously, we are trying to follow our customers. We build some really good relationships with the work we have done in the West. And as those customers move into other markets, we would like to go with them. So it isn’t like necessarily 100% we pick the market and then try to set up an office and go find work. We want to follow our customers to where ever they might take us. So that probably is going to drive more of our target marketing and us trying to fix something independent.

Got it. Thank you.

Thank you. I am showing no further questions. I would now like to turn the call back to Mr. Bill Koertner for closing remarks.

Well, thank you. I appreciate everybody being on the call this morning. On behalf of Paul, Rick and myself, I sincerely thank you. And look forward to updating you on our progress next quarter.

Ladies and gentlemen, thank you for participating in today’s conference. This does conclude today’s program. You all disconnect. Everybody have a great day.