EMCOR(US:EME)2020-03-01 04:01Financial Data and Key Metrics Changes - The company achieved record financial performance in 2019, with revenues of $9.17 billion, operating income of $461 million, net income of $325 million, and earnings per share from continuing operations of $5.75, reflecting a 12.8% revenue growth and 9.3% organic revenue growth [7][23][30] - Cash flow from operations was $356 million, exceeding net income, and the company ended the year with flat Remaining Performance Obligations (RPOs) of $4.036 billion [8][9] Business Line Data and Key Metrics Changes - The Mechanical and Electrical Construction segments combined revenues reached $5.6 billion, with a 13% underlying growth and 9.3% organic growth, and an operating income margin of 7.0% [9][10] - The Building Services segment reported a 12.3% revenue growth, leading to a 22.3% increase in operating income, with an operating income margin of 5.4% [11][12] - The Industrial Services segment saw a revenue increase of 17.8% to $1.09 billion, attributed to increased maintenance and capital project activity [24] Market Data and Key Metrics Changes - The U.K. Building Services segment's revenues increased by 2% to $423.3 million, despite a $19.5 million headwind from unfavorable foreign currency exchange [25] - Domestic RPOs increased by approximately 2% or $80 million since December 2018, indicating strong demand in the nonresidential market [34] Company Strategy and Development Direction - The company plans to continue focusing on acquisitions to fill geographic gaps and enhance technical capabilities, having executed three significant acquisitions in 2019 [10][11] - The company aims to maintain cost discipline and drive labor productivity while pursuing large project work across various sectors [40][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the nonresidential market's growth, projecting a revenue guidance of $9.5 billion to $9.7 billion for 2020, with earnings per diluted share guidance of $5.60 to $6.30 [40] - The company acknowledged potential external factors that could impact performance, including economic conditions and project timing, but emphasized a strong operational execution strategy [40][41] Other Important Information - The company experienced a ransomware attack affecting certain IT systems, but no evidence of data theft was found, and business continuity plans were effectively implemented [42][43] Q&A Session Summary Question: Inquiry about industrial services and spring turnaround expectations - Management indicated it is too early to predict the outcome of the spring turnaround season, with visibility expected after the first quarter [46][47] Question: Expectations for Building Services growth in 2020 - Management suggested mid-single-digit organic growth as a reasonable expectation for Building Services in 2020 [48][49] Question: Demand and bidding activity across the country - Management provided insights into strong demand across various regions, highlighting specific opportunities in the Northeast, Mid-Atlantic, South, Texas, and California [55][56][58][59]