700923--3/15/2010--MYR_GROUP

related topics

{cost, contract, operation}

{customer, product, revenue}

{condition, economic, financial}

{cost, regulation, environmental}

{acquisition, growth, future}

{personnel, key, retain}

{loss, insurance, financial}

{cost, operation, labor}

{operation, natural, condition}

{capital, credit, financial}

{tax, income, asset}

{competitive, industry, competition}

{control, financial, internal}

{provision, law, control}

{debt, indebtedness, cash}

{stock, price, operating}

Our operating results may vary significantly from year to year. We are unable to predict the impact of the current economic conditions in the financial markets and the resulting constraints in obtaining financing on our business and financial results. The recent instability of the financial markets and adverse economic conditions could have a material adverse effect on the ability of our customers to perform their obligations to us. Demand for our services is cyclical and vulnerable to industry downturns and regional and national downturns, which may be amplified by the current economic conditions. Our industry is highly competitive. We may be unsuccessful at generating internal growth. Many of our contracts may be canceled on short notice and we may be unsuccessful in replacing our contracts if they are canceled or as they are completed or expire. Backlog may not be realized or may not result in profits. The timing of new contracts and termination of existing contracts may result in unpredictable fluctuations in our cash flow and financial results. The Energy Act may not result in increased spending on electric power transmission infrastructure and the current economic conditions in the United States may lead to cancellations or delays of related projects. We may not benefit from the passage of the ARRA. Our use of percentage-of-completion accounting could result in a reduction or elimination of previously recognized profits. Our actual costs may be greater than expected in performing our fixed price and unit price contracts. Our financial results are based upon estimates and assumptions that may differ from actual results. We insure against many potential liabilities and our reserves for estimated losses may be less than our actual losses. We may incur liabilities or suffer negative financial impacts relating to occupational health and safety matters. We may pay our suppliers and subcontractors before receiving payment from our customers for the related services. We extend credit to customers for purchases of our services, and in the past we have had, and in the future we may have, difficulty collecting receivables from customers that experience financial difficulties. We derive a significant portion of our revenues from a few customers, and the loss of one or more of these customers could have a material adverse effect on our consolidated financial condition, results of operations and cash flows. A significant portion of our business depends on our ability to provide surety bonds, and we may be unable to compete for or work on certain projects if we are not able to obtain the necessary surety bonds. Our bonding requirements may limit our ability to incur indebtedness. Inability to hire or retain key personnel could disrupt business. Work stoppages or other labor issues with our unionized workforce could adversely affect our business. Our business is labor intensive and we may be unable to attract and retain qualified employees. Inability to perform our obligations under EPC contracts may adversely affect our business. We require subcontractors to assist us in providing certain services, and we may be unable to retain the necessary subcontractors to complete certain projects. Our business growth could outpace the capability of our internal infrastructure. Seasonal and other variations, including severe weather conditions, may cause significant fluctuations in our consolidated financial condition, results of operations and cash flows. We are subject to risks associated with climate change. Our failure to comply with environmental laws could result in significant liabilities. Increases in the cost of certain materials and fuel could reduce our operating margins. We could incur liquidated damages or other damages if we do not complete our projects in the time allotted under the applicable contract, or we may be required to perform additional work if our services do not meet certain standards of quality. Opportunities within the government arena could lead to increased governmental regulation applicable to us. If we fail to integrate future acquisitions successfully, our consolidated financial condition, results of operations and cash flows could be adversely affected. Our business may be affected by difficult work environments. Failure to maintain effective internal control over financial reporting could have a material adverse effect on our business, our operating results and the value of our common stock. Provisions in our organizational documents and under Delaware law could delay or prevent a change in control of our company, which could adversely affect the price of our common stock.

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700923--3/15/2010--MYR_GROUP_INC.