Emcor Group, Inc. · NYSE:EME

Emcor — Q4 2014 Earnings Presentation

19 slides from Emcor's earnings presentation, Feb 26, 2015

  1. Slide 1: Quarter Four 2014

    QUARTER FOUR 2014 Quarter Four 2014 February 26, 2015 1

  2. Slide 2: EMCOR Participants

    QUARTER FOUR 2014 EMCOR Participants  Tony Guzzi President & Chief Executive Officer  Mark Pompa EVP & Chief Financial Officer  Mava Heffler VP, Marketing & Communications  Sheldon Cammaker EVP & General Counsel  Kevin Matz EVP, Shared Services 2

  3. Slide 3: 2014 Executive Summary

    QUARTER FOUR 2014 2014 Executive Summary  Strong operating performance in 2014 – Overall - most end markets continue to improve slowly – Revenues increased 1.4% to $6.42 billion – Full year diluted EPS from continuing operations of $2.59  Includes gain on sale of building - $0.11  Includes Qtr. 4

  4. Slide 4: 2014 Executive Summary

    QUARTER FOUR 2014 2014 Executive Summary  Building Services segment operating margin of 3.8% vs. 3.7% in 2013 – Improved performance in mobile mechanical services – Site-based operations’ leverage work continues to expand but not enough new customer wins captured in 2014 – Government Services had s

  5. Slide 5: 2014 Executive Summary

    QUARTER FOUR 2014 2014 Executive Summary  Diverse backlog of $3.63 billion, up 8.7% compared to December 2013 – U.S. backlog up $308 million or 9.7% Dec. 2014  Domestic construction reportable segments UP $330M 14.2%  Commercial sector UP $169M 15.8%  Transportation sector UP $277M 61.4%  Balan

  6. Slide 6: 2014 Qtr. 4 Financial Results Highlights

    QUARTER FOUR 2014 2014 – Qtr. 4 Financial Results Highlights  Revenues increased 4.0% quarter-over-quarter to $1.71 billion Change from Qtr. 4 2013 Qtr. 4 ($ Millions) 2014 $ % U.S. Electrical Construction & Facilities Services $ 353.7 $ (7.6) -2.1% U.S. Mechanical Construction & Facilities Service

  7. Slide 7: 2014 Qtr. 4 Financial Results Highlights

    QUARTER FOUR 2014 2014 – Qtr. 4 Financial Results Highlights  SG&A expenses increased to $172.2 million or 10.0% of revenues vs. $161.0 million or 9.8% of revenues for Qtr. 4 2013  Operating income* of $74.5 million or 4.3% of revenues includes: For the Three Months Ended December 31, 2014 2013 –

  8. Slide 8: 2014 Qtr. 4 Financial Results Highlights

    QUARTER FOUR 2014 2014 – Qtr. 4 Financial Results Highlights Operating Income Reconciliation For the Three Months Ended (In thousands) (Unaudited) December 31, 2014 2013 GAAP Operating Income $ 74,498 $ 75,906 Transaction Expenses Related to the Acquisition of RepconStrickland, Inc. - 90 Impairment

  9. Slide 9: Key Financial Data – Income Statement

    QUARTER FOUR 2014 Key Financial Data – Income Statement ($ Thousands, except per share information) (Unaudited) For the Three Months Ended December 31, Variance 2014 2013 $ % Revenues $ 1,714,796 $ 1,649,279 $ 65,517 4.0% Gross Profit 248,573 236,871 11,702 4.9% Selling, General and Administrative E

  10. Slide 10: 2014 Financial Results Highlights

    QUARTER FOUR 2014 2014 Financial Results Highlights  Revenues up $91.4 million or 1.4% to $6.42 billion Change from 2013 ($ Millions) 2014 $ % U.S. Electrical Construction & Facilities Services $ 1,312.0 $ (33.8) -2.5% U.S. Mechanical Construction & Facilities Services 2,201.2 (128.6) -5.5% Sub-Tot

  11. Slide 11: 2014 Financial Results Highlights

    QUARTER FOUR 2014 2014 Financial Results Highlights  SG&A expenses increased to $626.5 million or 9.8% of revenues vs. $580.6 million or 9.2% of revenues for 2013  Operating income of $289.9* million or 4.5% of revenues includes: For the Twelve Months Ended December 31, 2014 2013 – U.S. Electrical

  12. Slide 12: 2014 Financial Results Highlights

    QUARTER FOUR 2014 2014 – Financial Results Highlights Operating Income Reconciliation For the Twelve Months Ended (In thousands) (Unaudited) December 31, 2014 2013 GAAP Operating Income $ 289,878 $ 240,350 Transaction Expenses Related to the Acquisition of RepconStrickland, Inc. - 6,140 Impairment L

  13. Slide 13: Key Financial Data – Income Statement

    QUARTER FOUR 2014 Key Financial Data – Income Statement ($ Thousands, except per share information) For the Twelve Months Ended December 31, Variance 2014 2013 $ % Revenues $ 6,424,965 $ 6,333,527 $ 91,438 1.4% Gross Profit 907,246 821,646 85,600 10.4% 14.1% 13.0% Selling, General and Administrative

  14. Slide 14: Key Financial Data – Balance Sheet

    QUARTER FOUR 2014 Key Financial Data – Balance Sheet ($ Thousands) 12/31/14 12/31/13 Cash $ 432,056 $ 439,813 Working Capital $ 603,186 $ 631,362 Goodwill $ 834,102 $ 834,825 Identifiable Intangible Assets, Net $ 502,060 $ 541,497 Total Debt $ 335,440 $ 354,663 Equity $ 1,429,387 $ 1,479,626 Total D

  15. Slide 15: Backlog by Market Sector

    QUARTER FOUR 2014 Backlog by Market Sector ($ Millions) $4,054 $3,618 $3,634 $3,224 $3,302 $3,344 $2,953 $2,816 Commercial Hospitality Industrial Healthcare Institutional Transportation Water & Wastewater 15

  16. Slide 16: Backlog by Segment

    QUARTER FOUR 2014 Backlog by Segment ($ Millions) $4,054 $3,618 $3,634 $3,302 $3,344 $2,953 $3,224 $2,816 Mechanical Electrical US Building Services US Industrial Services EMCOR UK 16

  17. Slide 17: 2015 Outlook

    QUARTER FOUR 2014 2015 Outlook  Private non-residential construction market continues to improve slowly  Backlog growth in commercial and transportation sectors positive for 2015 and 2016  Building Services will benefit from continued growth in retrofit and energy savings projects  EMCOR Industr

  18. Slide 18: 2015 Guidance

    QUARTER FOUR 2014 2015 Guidance Revenues ~ $6.6 Billion Diluted EPS $2.65 - $2.95 18

  19. Slide 19: BUILD. POWER. SERVICE. PROTECT.

    BUILD. POWER. SERVICE. PROTECT.

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