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EMCOR Group, Inc. Reports Record First Quarter Results

- Revenues increased 29.1% to $1.66 billion -

- Operating income increased 186% to $49.7 million, equal to 3.0% of revenues -

- Diluted earnings per share increased to $0.44 from $0.18 - 

NORWALK, CONNECTICUT, April 24, 2008 – EMCOR Group, Inc. (NYSE: EME) today reported results for its first quarter ended March 31, 2008. 

For the first quarter of 2008, net income rose 144.6% to $29.3 million, or $0.44 per diluted share, from $12.0 million, or $0.18 per diluted share, in the first quarter of 2007, which included income from discontinued operations of $0.5 million.  Revenues in the 2008 first quarter rose 29.1% to $1.66 billion from $1.29 billion in the first quarter of 2007, reflecting strong organic growth and contributions from recent acquisitions.

The Company reported operating income of $49.7 million for the first quarter of 2008, compared to $17.4 million in the first quarter of 2007, an increase of 186.2%.  As a percentage of revenues, first quarter 2008 operating margins improved to 3.0%, the highest for any first quarter in the history of the Company, from 1.3% a year ago.  Selling, general and administrative (SG&A) expenses were $140.2 million, or 8.4% of revenues, in the 2008 first quarter compared to $111.6 million, or 8.7% of revenues, in the first quarter of 2007.

Contract backlog as of March 31, 2008 was $4.39 billion, an increase of 14.3% over backlog of $3.84 billion at March 31, 2007.   Private sector commercial and hospitality contracts represented 49% of total backlog at the end of the 2008 first quarter, compared to 47% at December 31, 2007.  Of the 14.3% increase in backlog levels, approximately 9.4% represented organic backlog growth excluding backlog contributions from companies acquired within the last 12 months. 

Frank T. MacInnis, Chairman and CEO of EMCOR Group, stated, “Our record results in the first quarter of 2008 represent an extraordinary start to the year. Organic revenue growth of 16.6% confirmed strong performance across all our businesses, and excellent operational execution enabled us to generate  substantially higher profits.   We continue to be delighted with our position in the refinery and petrochemical sectors through Ohmstede, which performed extremely well in its seasonally strong quarter and contributed to the overall increase in revenues, profits and profit margin.”

Mr. MacInnis added, “As part of our efforts to diversify our revenue and profit base and enable us to perform well throughout economic cycles, a key strategic initiative at EMCOR has been the investment in and development of our facilities services operations.  Our success in this endeavor is underscored by the growth in our facilities services business, which became the largest operating segment contributor to operating profit during the 2008 first quarter.  Its strong performance and solid prospects serve to reinforce our commitment to this strategy and to this business.”

Mr. MacInnis concluded, “Our excellent results for the first quarter of 2008 are the product of our efforts over the past five years to expand our service offerings and to position EMCOR in markets that will generate strong, sustainable growth and build on our position as a leader in the marketplace.  We have diversified and balanced the Company organically and through acquisitions, and today we possess the businesses, services and management to leverage the opportunities ahead of us.  We are encouraged that even with record revenue growth, our incoming contracts have generated backlog near record levels.  While certain segments of the economy may be challenging, our market position and ongoing momentum give us increased confidence in meeting our ambitious targets for 2008.”

The Company noted that, based on current market conditions and the makeup of its backlog, it continues to expect to generate revenues for the 2008 full-year period of between $6.3 billion and $6.5 billion and diluted earnings per share for 2008 of $2.08 to $2.28.

EMCOR Group, Inc. is a Fortune 500® worldwide leader in mechanical and electrical construction services, energy infrastructure and facilities services. 

EMCOR Group’s first quarter conference call will be available live via Internet broadcast today, Thursday, April 24, 2008 at 10:30 AM Eastern Daylight Time.  You can access the live call through the Home Page of the Company’s Web site at www.emcorgroup.com.

This release may contain certain forward-looking statements within the meaning of the Private Securities Reform Act of 1995.  Any such comments are based upon information available to EMCOR management and its perception thereof, as of this date, and EMCOR assumes no obligation to update any such forward-looking statements.  These forward-looking statements may include statements regarding market opportunities, market share growth, gross profit, backlog mix, projects with varying profit margins, and selling, general and administrative expenses.  These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements.  Accordingly these statements are no guarantee of future performance.  Such risk 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 and mix of business.  Certain of the risks and factors associated with EMCOR’s business are also discussed in the Company’s 2007 Form 10-K, its Form 10-Q for the first quarter ended March 31, 2008, and in other reports filed from time to time with the Securities and Exchange Commission.  All these risks and factors should be taken into account in evaluating any forward-looking statements.

EMCOR GROUP, INC.

FINANCIAL HIGHLIGHTS

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

EMCOR GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

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CONTACT:      

R. Kevin Matz

Executive Vice President

Shared Services (203) 849-7938

FD Investors: Eric Boyriven – 212-850-5600

Linden Alschuler & Kaplan, Inc.

Media: Josh Epstein – 212-575-4545