EMCOR GROUP, INC. EMCOR Group, Inc.
May 26, 2020
KeyBanc Capital Markets Virtual Conference | May 26, 2020 |
Forward-Looking Statements and Non-GAAP Financial Disclosures
Forward Looking Statements:
This material and related presentation contain certain forward-looking statements. Any such comments speak only as of the date on the cover of this slide deck and EMCOR assumes no obligation to update any such forward-looking statements, unless required by law. These forward-looking statements may include statements regarding anticipated future operating and financial performance, the nature and impact of our remaining performance obligations, our ability to pursue acquisitions, our ability to return capital to shareholders, market opportunities, market growth, and customer trends. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated (whether expressly or implied) by the forward-looking statements. Accordingly, these statements are no guarantee of future performance. Such risks 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, mix of business, the impact of the 2020 ransomware attack, and the impact of the COVID-19 pandemic on our revenue and operations. Certain of the risk factors associated with EMCOR's business are also discussed in Part I, Item 1A "Risk Factors," of the Company's 2019 Form 10-K and in other reports filed from time to time with the Securities and Exchange Commission and available at www.sec.govand www.emcorgroup.com. Such risk factors should be taken into account in evaluating any forward-looking statements.
Non-GAAP Measures:
This material and related presentation may include certain financial measures that were not prepared in accordance with U.S. generally accepted accounting principles (GAAP). The Company uses these non-GAAP measures as key performance indicators for the purpose of evaluating performance internally. We also believe that these non-GAAP measures provide investors with useful information with respect to our on-going operations. Any non-GAAP financial measures presented are not, and should not be viewed as, substitutes for financial measures required by GAAP, have no standardized meaning prescribed by GAAP and may not be comparable to the calculation of similar measures of other companies.
2
KeyBanc Capital Markets Virtual Conference | May 26, 2020 |
EMCOR Group
- Leading specialty construction, building and industrial services provider
- Over 80+ Million Hours Worked in 2019
- Quarter 1 2020 RPOs of $4.42B
3
KeyBanc Capital Markets Virtual Conference | May 26, 2020 |
Why EMCOR
- Significant expertise in project execution and service delivery
- Excellence in managing skilled labor
- Disciplined and effective cost management
- Broad array of services delivered into growing end markets
- Platform for earnings growth
- Strong and liquid balance sheet
- Flexibility for organic growth, acquisitions and share repurchases
- History of consistent cash generation
̶ Operating cash flow ± net income
4
KeyBanc Capital Markets Virtual Conference | May 26, 2020 |
Leading Market Position Across all Businesses
EMCOR GROUP, INC.
2019 Revenue: $9.2B
CONSTRUCTIONSERVICES
U.S. | U.S. | U.S. | U.S. | |||||
MECHANICAL | ELECTRICAL | BUILDING | INDUSTRIAL | EMCOR UK | ||||
CONSTRUCTION | CONSTRUCTION | SERVICES | SERVICES | |||||
2019 Rev: $3.4B | 2019 Rev: $2.2B | 2019 Rev: $2.1B | 2019 Rev: $1.1B | 2019 Rev: $0.4B | ||||
5
KeyBanc Capital Markets Virtual Conference | May 26, 2020 |
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
KeyBanc Capital Markets Virtual Conference | May 26, 2020 |
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
Base Operations
Facilities Management
IDIQ Projects
Operations & Maintenance
Supplier Management
7
KeyBanc Capital Markets Virtual Conference | May 26, 2020 |
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
KeyBanc Capital Markets Virtual Conference | May 26, 2020 |
RPOs by Market Sector - 3/31/20
- Diverse Remaining Performance Obligations (RPOs) of $4.42 billion
7% | ($ Millions) (Unaudited) | |||||||
6% | 2020 - Qtr. 1 | |||||||
9% | Commercial | $1,794 | ||||||
41% | Hospitality / Gaming | 67 | ||||||
Industrial | 515 | |||||||
13% | Healthcare | 483 | ||||||
Institutional | 587 | |||||||
Transportation | 388 | |||||||
Water & Wastewater | 285 | |||||||
Short Duration Projects | 305 | |||||||
11% | 12% | $4,424 | ||||||
1% | ||||||||
9
KeyBanc Capital Markets Virtual Conference | May 26, 2020 |
Key Financial Data - Income Statement
($ Thousands, except per share information ) (Unaudited)
For the Quarter Ended | ||||||||||
March 31, | Variance | |||||||||
2020 | 2019 | $ | % | |||||||
Revenues | $ | 2,299,832 | $ | 2,158,728 | $ | 141,104 | 6.5% | |||
Gross Profit | 333,061 | 308,754 | 24,307 | 7.9% | ||||||
Selling, General and Administrative Expenses | 226,997 | 206,169 | 20,828 | 10.1% | ||||||
Restructuring Expenses | 69 | 275 | (206) | N/M | ||||||
Operating Income | $ | 105,995 | $ | 102,310 | $ | 3,685 | 3.6% | |||
4.6% | 4.7% | |||||||||
Diluted Earnings per Common Share | ||||||||||
$ | 1.35 | $ | 1.28 | $ | 0.07 | 5.5% |
10
KeyBanc Capital Markets Virtual Conference | May 26, 2020 |
Key Financial Data - Balance Sheet
($ Thousands)
(Unaudited) | |||||
03/31/20 | 12/31/19 | ||||
Cash | $ | 347,092 | $ | 358,818 | |
Working Capital | $ | 899,006 | $ | 721,273 | |
Goodwill | $ | 1,064,853 | $ | 1,063,911 | |
Identifiable Intangible Assets, Net | $ | 597,897 | $ | 611,444 | |
Total Debt (excludes operating leases) | $ | 504,541 | $ | 312,231 | |
Stockholders' Equity | $ | 2,027,594 | $ | 2,057,780 | |
Total Debt / Total Capitalization | 19.9% | 13.2% |
11
KeyBanc Capital Markets Virtual Conference | May 26, 2020 |
Current Company-Wide Priorities and Actions
- Protect Employee Health and Safety
- Instituted social distancing and other safety protocols
- Providing PPE
- Control Costs
- ~40% of salaried workforce furloughed or working reduced hours / pay
- Named Executive Officers' annual salary temporarily reduced by 25%
- Director compensation reduced by 22%
- Frequent and Consistent Communication with Field Leadership
- Proactively Work with Suppliers
- Maintain Strong Balance Sheet and Liquidity Position
- Ready to Return to 100% Capacity / Utilization
12
KeyBanc Capital Markets Virtual Conference | May 26, 2020 |
EMCOR Credit Facility
- 2020 Credit Agreement - Executed March 2, 2020
- $300 million term loan
- $1.3 billion revolving credit facility
- Ability to increase to $1.9 billion
- Matures on March 2, 2025
Credit Facility
Term Loan Balance | $ | 300,000,000 |
Total Revolving Credit Facility | $ | 1,300,000,000 |
Outstanding Borrowings | 200,000,000 | |
Letters of Credit Issued | 78,963,183 | |
Revolving Credit Available - 3/31/2020 | $ | 1,021,036,817 |
13
Attachments
- Original document
- Permalink
Disclaimer
EMCOR Group Inc. published this content on 26 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 May 2020 00:07:10 UTC
