Quarter Two 2016 July 28, 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
2016 Qtr. 2 Executive Summary Continue to see steady non-residential environment Proforma diluted EPS from continuing operations of $0.95 vs. $0.74 in Quarter 2 2015 Revenues increased 17.0% to $1.93 Billion Organic revenue growth of 12.3% Operating income as a percentage of revenues was 4.8% U.S. Electrical construction and facilities services segment revenues increased by $74.4 million vs. Quarter 2 2015 and operating margin was 5.5%; despite difficult transportation construction project conditions U.S. Mechanical construction and facilities services segment revenues increased by $75.9 million vs. Quarter 2 2015 and operating margin was 6.1%
2016 Qtr. 2 Executive Summary U.S. Building Services segment revenues increased by $23.2 million vs. Quarter 2 2015 and operating margin was 4.0% U.S. Industrial Services segment revenues increased by 48.1% to $333.5 million and operating margin increased to 9.9% vs. 7.7% in Quarter 2 2015 Strong demand for field-based specialty services on large project work; extended spring turnaround season
2016 Qtr. 2 Executive Summary Diverse backlog of $3.81 billion, up 5.1% compared to Quarter 2 2015 U.S. backlog up $202 million or 5.8% Domestic Construction Segments UP U.S. Building Services Segment UP U.S. Industrial Services Segment DOWN Private Sector UP (Commercial, Hospitality & Gaming, Industrial) Public Sector DOWN (Transportation, Water/Wastewater, Institutional, Healthcare) Balance sheet remains strong and liquid, including $443.0 million of cash
2016 – Qtr. 2 Financial Results Highlights Revenues increased 17.0% quarter-over-quarter to $1.93 billion
2016 – Qtr. 2 Financial Results Highlights SG&A expenses increased to $181.8 million or 9.4% of revenues vs. $161.4 million or 9.8% of revenues for Qtr. 2 2015 Operating income of $92.3 million or 4.8% of revenues includes: U.S. Electrical Construction and Facilities Services: $(2.3) million or 9.0% decrease U.S. Mechanical Construction and Facilities Services: $5.8 million or 18.0% increase Total U.S. Construction U.S. Building Services: $0.4 million or 2.0% increase U.S. Industrial Services: $15.7 million or 90.3% increase UK Building Services: $0.4 million or 15.0% increase Total EMCOR Operating Margin Qtr. 2 cash provided by operations $84.9 million vs. $11.8 million in Qtr. 2 2015
Key Financial Data – Income Statement ($ Thousands, except per share information) (Unaudited)
Key Financial Data – Income Statement ($ Thousands, except per share information) (Unaudited)
Key Financial Data – Balance Sheet ($ Thousands)
Backlog by Market Sector ($ Millions) $3,771 $3,809 $4,000 $3,000 $2,000 $1,000 $0 $3,634 $3,302 $3,344 $3,224 $2,953 $2,816 2009 2010 2011 2012 2013 2014 2015 2016 – Qtr. 2 Commercial Hospitality Industrial Healthcare Institutional Transportation Water & Wastewater
Backlog by Segment Mechanical Electrical Building Services ($ Millions) $4,000 $3,000 $2,000 $1,000 $0 $3,771 $3,809 $3,634 $3,302 $3,344 $3,224 $2,953 $2,816 2009 2010 2011 2012 2013 2014 2015 2016 – Qtr. 2 Mechanical Electrical Building Services Industrial Services EMCOR UK
2016 Outlook Non-residential construction market expected to grow mid- single digits Backlog growth positive for Domestic Construction and U.S. Building Services segments U.S. Building Services will benefit from continued growth in retrofit and energy savings projects Industrial Services: Expect good Fall turnaround season Strength in specialty services on large projects Headwind continues in “new build” heat exchanger fabrication Strong and liquid balance sheet
2016 Guidance * Excluding transaction expenses related to the Ardent acquisition