EMCOR(US:EME)2020-05-03 14:18Financial Data and Key Metrics Changes - Consolidated revenues for Q1 2020 were $2.3 billion, an increase of $141.1 million or 6.5% compared to Q1 2019 [10] - Diluted earnings per share improved to $1.35 from $1.28, representing a 5.5% increase year-over-year [21] - Gross profit was $333.1 million, which is 14.5% of revenues, an increase of $24.3 million from the previous year [21] Business Line Data and Key Metrics Changes - United States Electrical Construction revenues decreased by $2.8 million or approximately 0.5% to $525.2 million [11] - United States Mechanical Construction revenues increased by $81.7 million or 10.9% to $834.1 million [11] - United States Industrial Services revenues rose by $51.4 million or 19.9% to $310 million [12] - United Kingdom Building Services revenues increased by $4.8 million or 4.5% to $112.4 million [13] Market Data and Key Metrics Changes - Total Remaining Performance Obligations (RPOs) at the end of Q1 were $4.42 billion, up $267 million or 6.4% from the previous year [25] - Domestic RPOs increased by $284 million or 7.1% year-over-year, primarily driven by the Mechanical Construction segment [25] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet and liquidity, with no risk to the dividend currently [40] - Plans for acquisitions are on hold until normal operating conditions return, with a strong pipeline of potential acquisitions in the $40 million to $60 million range [41] - The company aims to ramp up operations to 100% capacity as conditions normalize [42] Management's Comments on Operating Environment and Future Outlook - The management noted that the current bidding environment remains active, with strong demand in sectors like health care and data centers [43] - The company withdrew its 2020 guidance due to uncertainty from the COVID-19 pandemic but expects to provide more clarity in the Q2 earnings announcement [44] - Management emphasized the importance of employee safety and proactive measures taken during the pandemic [36] Other Important Information - The company has amended and extended its credit facility, increasing the revolving credit line to $1.3 billion, enhancing its liquidity position [46] - The company has reduced its workforce by 20% to 25% in response to project shutdowns, while still maintaining a significant portion of its salaried workforce [35] Q&A Session Summary Question: Are established contractors preferred for bidding due to safety precautions? - Management indicated that their strong safety record and financial position attract customers, which may lead to a preference for established contractors [50] Question: Will delays in Building Services create pent-up demand? - Management speculated that there could be pent-up demand but refrained from making definitive predictions due to the unprecedented nature of the pandemic [51] Question: What is the outlook for the non-residential market? - Management expressed that while it is difficult to predict, there are strong underlying fundamentals, and renovations for improved airflow and energy efficiency are expected to increase [57] Question: Can guidance for Q2 EPS be provided? - Management stated that they cannot provide specific guidance due to uncertainties but expect to remain profitable in all interim reporting periods for 2020 [67]