EMCOR Group, Inc. Q2 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Overview

  • Q2 2020 adjusted diluted EPS: $1.44 (down from $1.49 in Q2 2019).
  • Adjusted operating margin: 5.47%, up from 5.2% in Q2 2019.
  • Organic revenue declined 15.5% YoY due to widespread COVID-19 shutdowns and project delays.
  • Year‑to‑date operating cash flow: $276 million, a record for EMCOR.
  • Non-cash impairment charge: $232.8 million, resulting in a reported net loss per share of $1.52.
  • RPO (backlog) increased to $4.6 billion, up 8.6% YoY and 3.8% sequentially.

Segment Performance Highlights

U.S. Electrical Construction
  • Revenue: $445.9 million, down 21.7% YoY.
  • Operating margin: 7.2% (down 50 bps YoY).
  • Impacted significantly by shutdowns in major population centers and oil & gas exposure.
U.S. Mechanical Construction
  • Revenue: $790.4 million, down 4% YoY (organic down 9.8%).
  • Operating margin: 8.5% (up 190 bps YoY).
  • Strong performance despite the pandemic, with gains in institutional, transportation, and healthcare sectors.
U.S. Building Services
  • Revenue: $472.4 million, down 9.8% YoY.
  • Operating margin: 5.6% (up 30 bps YoY).
  • Demand improved through the quarter; strong mechanical and government services trends.
U.S. Industrial Services

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Operator: Good morning. My name is [Lara] [ph], and I will be your conference operator today. At this time, I would like to welcome everyone to the EMCOR Group Second Quarter 2020 Earnings Call. [Operator Instructions] Mr. Haskel Kwestel with FTI Consulting, you may begin. Haskel Kwestel: Thank you, Lara, and good morning everyone. Welcome to the EMCOR Group conference call. We are here today to discuss the company's 2020 second quarter results which were reported this morning. I would 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, Haskle, and good morning everyone. Thank you for your interest in EMCOR, and welcome to our earnings conference call for the second quarter of 2020. How time has really moved on. And as I said in our last call, I hope you and your families are well, staying safe as we move through this unprecedented time. For those of you who are accessing the call via the Internet and our Web site, welcome, and we hope you have arrived at the beginning of our slide presentation that will accompany our remarks today. Please advance to slide two. This presentation and discussion contains forward-looking statements and certain non-GAAP financial information. Page two describes in detail the forward-looking statements and the non-GAAP financial information disclosures. I encourage everyone to review both disclosures in conjunction with our discussion a

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