EMCOR Group, Inc. Q1 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • The company delivered record Q1 results despite the rapid emergence of COVID-19 disruptions late in the quarter.
  • Q1 records included revenues, gross profit, gross margin, operating income, and diluted EPS from continuing operations.
  • Management emphasized employee safety, liquidity strength, and operational discipline as key priorities during the pandemic.

Financial Performance (Compared to Q1 2019)

  • Consolidated revenues: $2.3B, up $141.1M or 6.5%. Organic growth: +2.7% excluding acquisitions.
  • Gross profit: $333.1M, up $24.3M. Gross margin: 14.5%, up 20 bps.
  • Operating income: $106M, up 3.6% from $102.3M.
  • Diluted EPS: $1.35, up 5.5% from $1.28.

Segment Performance

U.S. Electrical Construction
  • Revenue: $525.2M, down 0.5%. Organic decline of 5.3% excluding $25.4M acquisition revenue.
  • Operating income: $43.9M, up $1M. Operating margin: 8.4% (+30 bps) due to strong project execution.
U.S. Mechanical Construction
  • Revenue: $834.1M, up 10.9%. Organic growth 3.5% excluding $55.5M acquisition revenue.
  • Operating income: $45.2M, up $4.2M. Margin unchanged at 5.4%.
U.S. Building Services
  • Revenue: $518.1M, up just over 1% (primarily organic).

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Operator: Good morning. My name is Lara, and I will be your conference operator today. At this time, I would like to welcome everyone to the EMCOR Group First Quarter 2020 Earnings Call. [Operator Instructions] Ms. Jamie Baird with FTI Consulting, you may begin. Jamie Baird: Thank you, Lara, and good morning, everyone. Welcome to the EMCOR Group Conference Call. We are here today to discuss the company's 2020 first quarter results, which were reported this morning. I would now like to turn the call over to Kevin Matz, Executive Vice President of Shared Services, who will introduce management. Kevin, please go ahead. Kevin Matz: Thank you, Jamie, and good morning, everyone. Thank you for your interest in EMCOR. As we start, let me simply and briefly say, I hope you and your families are well and staying safe as we move through this unprecedented time. For those of you who are accessing the call via our Internet and our website, welcome, and we hope you have arrived at the beginning of our slide presentation that will accompany our remarks today. We are on Slide 2. This presentation and discussion contains certain forward-looking statements and certain non-GAAP financial information. Page two describes in detail the forward-looking statements and the non-GAAP financial disclosures. I encourage everyone to review both disclosures in conjunction with our discussion and accompanying slides. Slide 3 depicts the executives who are with me to discuss the quarter's results. They are T

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