STIFEL 2015 INDUSTRIALS CONFERENCE Stifel Nicolaus 2015 Industrials Conference June 16, 2015

Transcription

1 1 STIFEL 2015 INDUSTRIALS CONFERENCE Stifel Nicolaus 2015 Industrials Conference June 16, 2015

2 Forward-Looking Statements This material and related presentation may contain certain forward-looking statements within the meaning of the Private Securities Reform Act of Any such comments are based upon information available to EMCOR management and its perception thereof, as of this date, and EMCOR assumes no obligation to update any such forward-looking statements. These forward-looking statements may include statements regarding market opportunities, market share growth, gross profit, backlog mix, projects with varying profit margins, and selling, general and administrative expenses. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Accordingly these statements are no guarantee of future performance. Such risk and uncertainties include, but are not limited to, adverse effects of general economic conditions, changes in the political environment, changes in the specific markets for EMCOR s services, adverse business conditions, availability of adequate levels of surety bonding, increased competition, unfavorable labor productivity and mix of business. Certain of the risks and factors associated with EMCOR s business are also discussed in the Company s 2014 Form 10-K and in other reports filed from time to time with the Securities and Exchange Commission. All these risks and factors should be taken into account in evaluating any forward-looking statements. 2

3 EMCOR Group Leading specialty construction, building and industrial services provider 2015 estimated revenues ~$6.6B 29,000+ employees 3

4 STIFEL 2015 INDUSTRIALS CONFERENCE Why EMCOR Significant expertise in project execution and service delivery Excellence in managing skilled trades people Disciplined and effective cost management Broad array of services delivered into growing / recovering end markets Platform for earnings growth Strong and liquid balance sheet Flexibility for organic growth and acquisitions History of consistent cash generation Cash flow ± net income 4

5 Leading Market Position Across all Businesses STIFEL 2015 INDUSTRIALS CONFERENCE EMCOR GROUP, INC Revenue: $6.4B CONSTRUCTION SERVICES MECHANICAL CONSTRUCTION 2014 Rev: $2.2B ELECTRICAL CONSTRUCTION 2014 Rev: $1.3B BUILDING SERVICES 2014 Rev: $1.7B INDUSTRIAL SERVICES 2014 Rev: $0.8B EMCOR UK 2014 Rev: $0.4B MOBILE MECHANICAL SERVICES SITE-BASED SERVICES GOVERNMENT SERVICES 5

6 CONSTRUCTION U.S. Leading Specialty Construction Contractor Sheet Metal HVAC Process Piping Fire Protection High Purity Piping Plumbing Low Voltage Voice & Data Lighting Security / Alarm Transmission & Distribution High Voltage 6

7 BUILDING SERVICES U.S. Leading National Provider of Building Services National HVAC Services Building Control Systems Retrofit Projects Repair Services Service Agreements Operations & Maintenance HVAC Services Retrofit Projects Preventative Maintenance Energy Efficiency Upgrades 7 Base Operations Facilities Management IDIQ Projects Operations & Maintenance Supplier Management

8 STIFEL 2015 INDUSTRIALS CONFERENCE U.S. Industrial Services Leading Provider of Refinery / Petrochemical Turnaround Services Heat Exchanger Service / Fabrication Embedded Contracts Turnaround Services Heat Exchangers, including HF Alky Units Fluid Catalytic Cracking Units Coking Units Specialized Welding Field Services Maintenance Capital Projects 8

9 Balanced Revenue Distribution Source Geography 35% 13% 19% 33% 95% 5% ($ Millions) 2014 Revenues ($ Millions) 2014 Revenues New Construction $2,091 United States $6,075 Retrofit & Renovating Building Services (Incl. UK) 1,230 2,264 U.K. 350 $6,425 Industrial Services 840 $6,425 9

10 Service Revenue is Growing as a Percent of Total Revenue ($ Millions) $7,000 $6,000 $5,000 $6,057 $5,154 $5,037 $4,698 $5,450 ~$6,600 $6,195 $6,334 $6, service revenue ~$3.1 billion or 48% $4,000 $3,000 $2,000 31% 34% 38% 42% 45% 45% 45% 48% Recurring service revenue base under more cyclical construction business $1,000 $ E Service Services Construction Construction 10

11 Backlog by Market Sector ($ Millions) $3,618 $3,634 $3,736 $2,953 $3,224 $3,302 $3,344 $2,816 Commercial Hospitality Industrial Healthcare Institutional Transportation Water & Wastewater 11

12 Backlog by Segment ($ Millions) $3,618 $3,634 $3,736 $2,953 $3,224 $3,302 $3,344 $2,816 Mechanical Electrical Building Services Industrial Services EMCOR UK 12

13 Key Financial Data Income Statement ($ Thousands, except per share information) (Unaudited) For the Three Months Ended March 31, Variance $ % Revenues $ 1,589,187 $ 1,590,539 $ (1,352) -0.1% Gross Profit 216, , % Selling, General and Administrative Expenses 161, ,854 17, % Restructuring Expenses (217) N/M Operating Income $ 55,330 $ 72,124 $ (16,794) -23.3% 3.5% 4.5% Diluted Earnings per Common Share from Continuing Operations $ 0.52 $ 0.64 $ (0.12) -18.8% 13

14 Key Financial Data Balance Sheet ($ Thousands) (Unaudited) 03/31/15 12/31/14 Cash $ 368,894 $ 432,056 Working Capital $ 614,415 $ 603,186 Goodwill $ 834,102 $ 834,102 Identifiable Intangible Assets, Net $ 492,599 $ 502,060 Total Debt $ 329,982 $ 335,440 Equity $ 1,433,474 $ 1,429,387 Total Debt / Total Capitalization 18.7% 19.0% 14

15 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 Industrial Services: Full year s impact of refinery operators strike still being sorted out Fall turnaround season expected to be solid if crack spreads and utilization remain healthy Strong and liquid balance sheet 15

16 2015 Guidance Revenues ~ $6.6 Billion Diluted EPS $ $

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