Emcor Group, Inc. · NYSE:EME

Emcor — Q3 2016 Earnings Presentation

15 slides from Emcor's earnings presentation, Oct 27, 2016

  1. Slide 1: Quarter Three 2016

    Quarter Three 2016 October 27, 2016

  2. Slide 2: EMCOR Participants

    QUARTER THREE 2016 EMCOR Participants  Tony Guzzi President & Chief Executive Officer  Mark Pompa EVP & Chief Financial Officer  Maxine Mauricio SVP & General Counsel  Mava Heffler VP, Marketing & Communications  Kevin Matz EVP, Shared Services 2

  3. Slide 3: 2016 Qtr. 3 Executive Summary

    QUARTER THREE 2016 2016 Qtr. 3 Executive Summary  Continue to see steady non-residential environment – Diluted EPS from continuing operations of $0.85 vs. $0.66 in Quarter 3 2015 – Revenues increased 13.2% to $1.92 Billion – Organic revenue increased 7.8% – Operating income as a percentage of reven

  4. Slide 4: 2016 Qtr. 3 Executive Summary

    QUARTER THREE 2016 2016 Qtr. 3 Executive Summary  U.S. Building Services segment revenues increased by $26.5 million vs. Quarter 3 2015 and operating margin was 5.0%  U.S. Industrial Services segment revenues decreased by 1.2% to $239.1 million and operating margin was 6.1%  U.K. Building Service

  5. Slide 5: 2016 Qtr. 3 Executive Summary

    QUARTER THREE 2016 2016 Qtr. 3 Executive Summary  Diverse backlog of $3.90 billion, up 3.7% compared to Quarter 3 2015 – U.S. backlog up $131 million or 3.6% Sept. 2016 $179M  Domestic Construction UP 6.3%  U.S. Building Services Segment DOWN $(26M) -3.6%  U.S. Industrial Services Segment DOWN $

  6. Slide 6: 2016 Qtr. 3 Financial Results Highlights

    QUARTER THREE 2016 2016 – Qtr. 3 Financial Results Highlights  Revenues increased 13.2% quarter-over-quarter to $1.92 billion Change from Qtr. 3 2015 Qtr. 3 ($ Millions) (Unaudited) 2016 $ % U.S. Electrical Construction & Facilities Services $ 458.6 $ 114.2 33.1% U.S. Mechanical Construction & Faci

  7. Slide 7: 2016 Qtr. 3 Financial Results Highlights

    QUARTER THREE 2016 2016 – Qtr. 3 Financial Results Highlights  SG&A expenses increased to $181.4 million or 9.4% of revenues vs. $165.1 million or 9.7% of revenues for Qtr. 3 2015  Operating income of $86.1 million or 4.5% of For the Three Months revenues includes: Ended Sept. 30, 2016 2015 – U.S.

  8. Slide 8: Key Financial Data – Income Statement

    QUARTER THREE 2016 Key Financial Data – Income Statement ($ Thousands, except per share information) (Unaudited) For the Three Months Ended September 30, Variance 2016 2015 $ % Revenues $ 1,923,174 $ 1,699,128 $ 224,046 13.2% Gross Profit 268,044 235,402 32,642 13.9% 13.9% 13.9% Selling, General and

  9. Slide 9: Key Financial Data – Income Statement

    QUARTER THREE 2016 Key Financial Data – Income Statement ($ Thousands, except per share information) (Unaudited) For the Nine Months Ended September 30, Variance 2016 2015 $ % Revenues $ 5,601,560 $ 4,940,900 $ 660,660 13.4% Gross Profit 765,893 691,858 74,035 10.7% 13.7% 14.0% Selling, General and

  10. Slide 10: Key Financial Data – Balance Sheet

    QUARTER THREE 2016 Key Financial Data – Balance Sheet ($ Thousands) (Unaudited) 09/30/16 12/31/15 Cash $ 504,558 $ 486,831 Working Capital $ 800,280 $ 653,691 Goodwill $ 979,339 $ 843,170 Identifiable Intangible Assets, Net $ 500,056 $ 472,834 Total Debt $ 523,277 $ 315,100 Stockholders' Equity $ 1,

  11. Slide 11: Backlog by Market Sector

    QUARTER THREE 2016 Backlog by Market Sector ($ Millions) $3,903 $3,771 $4,000 $3,634 $3,302 $3,344 $3,224 $2,953 $2,816 $3,000 $2,000 $1,000 $0 2009 2010 2011 2012 2013 2014 2015 2016 – Qtr. 3 Commercial Hospitality Industrial Healthcare Institutional Transportation Water & Wastewater 11

  12. Slide 12: Backlog by Segment

    QUARTER THREE 2016 Backlog by Segment ($ Millions) $3,903 $3,771 $4,000 $3,634 $3,302 $3,344 $3,224 $2,953 $2,816 $3,000 $2,000 $1,000 $0 2009 2010 2011 2012 2013 2014 2015 2016 – Qtr. 3 Mechanical Electrical Building Services Industrial Services EMCOR UK 12

  13. Slide 13: Year End 2016 Outlook

    QUARTER THREE 2016 Year End 2016 Outlook  Non-residential construction market expected to grow mid- single digits in 2016  Domestic Construction backlog growth of 6.3% since September 2015  U.S. Building Services will benefit from both technician productivity and continued growth in retrofit and

  14. Slide 14: 2016 Guidance

    QUARTER THREE 2016 2016 Guidance Revenues ~$7.5 Billion Diluted EPS from Continuing Operations * $3.10 ̶ $3.20 * Excluding transaction expenses related to the Ardent and Rabalais acquisition 14

  15. Slide 15: Build. Power. Service. Protect.

    Build. Power. Service. Protect.

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