Emcor Group posts record first quarter revenues

By Kevin Zimmerman

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Norwalk-based construction and maintenance company Emcor Group posted record first-quarter revenue of $1.74 billion, an increase of 9.8 percent compared to revenues of $1.59 billion for the first quarter of 2015. First-quarter earnings were $34.3 million or $0.56 per diluted share, compared to $33.2 million or $0.52 per diluted share in the first quarter of 2015.

Included in net income from continuing operations attributable to Emcor for the period ending March 31 were transaction expenses of $0.7 million after tax, or $0.01 per diluted share, related to the company’s acquisition of Ardent Services, L.L.C. and Rabalais Constructors, LLC, which was completed on April 15.

Operating income for the first quarter of 2016 was $55.6 million or 3.2 percent of revenues, which included pre-tax transaction expenses of $1.1 million related to the Ardent/Rabalais purchase. Excluding those expenses, non-GAAP operating income for the first quarter of 2016 was $56.7 million. First-quarter operating income in 2015 was $55.3 million or 3.5 percent of revenues.

Backlog as of March 31 was $3.85 billion, a 3.1 percent increase compared to $3.74 billion at the end of the first quarter of 2015. Domestic backlog grew $119 million year-over-year, while backlog in the U.K. building services segment decreased $3 million year-over-year primarily driven by the negative impact of foreign currency translation. On a sequential basis, backlog as of March 31 of $3.85 billion increased 2.1 percent compared to backlog as of December 31, 2015 of $3.77 billion.

“We continue to be encouraged by our prospects for 2016, underscored by the growth and strength of our backlog,” said Emcor President and Chief Executive Office Tony Guzzi. “For the third consecutive quarter, our backlog grew when compared to backlog as of a year ago and the immediately preceding quarter. We are revising our full-year revenue guidance upwards reflecting our continued optimism that the non-residential construction sector will improve for the remainder of 2016 and confidence in our ability to successfully integrate and position our recent acquisitions for solid growth.”

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