MYR Group increases stock buyback program by $75 million

ROLLING MEADOWS - MYR Group's board of directors approved an increase in the company's stock buyback program from $67.5 million to $142.5 million.

The board has approved provisions designed to accelerate the pace of share repurchases, increase flexibility for repurchases by raising per share pricing thresholds, and has extended the program through April 30, 2017. As part of the capital review, the board has also approved new financing strategies to support the company's equipment needs.

"We are committed to driving value for all MYR Group shareholders and directing capital to investments that generate the greatest returns," Bill Koertner, MYR Group's President and CEO, said. "Today's announcement reflects the Board's confidence in the Company's long-term strategy and our belief that MYR Group's stock at current levels represents an attractive investment opportunity. In addition, we believe we can achieve significant benefits for the Company and its shareholders by utilizing additional financing alternatives for securing equipment.

Completion of the $142.5 million buyback program will represent a significant reduction of MYR Group's outstanding shares and be accretive to earnings per share. The company has repurchased approximately 2.2 million shares under the program, equaling about $50 million, since May 12, 2014, including approximately 374,000 shares - approximately $7.2 million - acquired since the beginning of the year.

In connection with the new financing strategies, the company said it plans to enter into various alternative financing arrangements, including leasing to finance at least half of its future equipment and other asset additions. MYR Group expects these changes to better optimize the Company's balance sheet and expects the increased free cash flow resulting from the new financing activities to be used to support the company's growth initiatives and share repurchase program.