EMCOR Group, Inc. (NYSE: EME) today announced preliminary results for the first quarter ended March 31, 2020 and provided a business update.
For the first quarter of 2020, revenues are expected to be approximately $2.3 billion, up 6.5% year-over-year. First quarter revenues reflected strength across the business, led by overall double-digit growth in the United States mechanical construction and facilities services segment and the United States industrial services segment. Net income for the first quarter of 2020 is expected to be approximately $75.7 million, or $1.35 per diluted share, compared to $72.4 million, or $1.28 per diluted share, for the first quarter of 2019. EMCOR is also withdrawing its previously announced guidance for the full year 2020 due to the economic uncertainty caused by COVID-19.
Tony Guzzi, Chairman, President and Chief Executive Officer of EMCOR, commented, 'While we are pleased with our first quarter performance, as the quarter progressed, we quickly activated our contingency plans to ensure business resilience amid the growing threat of COVID-19. Our operating philosophy has always been that we control what we can control and react to disruptions and issues with a disciplined and process-oriented approach that is reflective of our core values of Mission First, People Always. This time is no different. Our attention is focused on the health and safety of our employees and then executing our mission for our customers.'
'We continue to bid and book work despite the challenging environment, and we are operating in the range of seventy to eighty percent of capacity. In many cases, particularly in areas where we have been designated as essential, our work continues at or near full capacity. However, the situation changes every day, and many metropolitan areas that we service are under some type of work stoppage and our productivity has been impacted. For smaller project work and our technician-based businesses, whether we are working or not depends on whether our customers are open, and, in many cases, they are not. Most importantly, where we are working, the health and safety of our employees come first even if it means productivity is impacted.'
Mr. Guzzi continued, 'In response to the abrupt drop in activity due to COVID-19, we adjusted quickly and have taken significant short-term cost reductions where appropriate, including reducing executive and director compensation. However, we are ready to quickly ramp up job sites and service work as our customers restart their operations and execute on our existing remaining performance obligations. Looking forward, we have a solid and liquid balance sheet, our remaining performance obligations are very strong, and we are well-positioned to continue serving our markets and customers now and when the environment normalizes.'
Mr. Guzzi concluded, 'I would like to thank the entire EMCOR team for their hard work and relentless focus on our EMCOR Values of Mission First, People Always during this uncertain time, and look forward to providing a full update on our actions and contingency plans on our upcoming conference call.'
Earnings Webcast Information
EMCOR also announced it intends to release its first quarter 2020 results for the period ended March 31, 2020 on Thursday, April 30, 2020. In conjunction with this release, EMCOR Group will host a conference call, which will be simultaneously broadcast live over the Internet. Tony Guzzi, Chairman, President and Chief Executive Officer, Mark Pompa, Executive Vice President, Chief Financial Officer and Treasurer, and Kevin Matz, Executive Vice President - Shared Services, will host the call.
Thursday, April 30, 2020
10:30 AM EDT
9:30 AM CDT
8:30 AM MDT
7:30 AM PDT
Please allow 10 minutes prior to the call to visit the site and download and install any necessary audio software. Additionally, investors can access a replay of the webcast through a replay link two hours after the call on the home page of the Company's website. A replay of the call will be available through May 28, 2020.