Good morning. My name is Teresa and I will be your conference operator today. At this time, I would like to welcome everyone to the EMCOR Group Second Quarter 2015 Earnings Call. All lines have been placed on mote to prevent any background noise. After the speakers' remarks, there will a question-and-answer session [Operator Instructions] Ms. Michelle Herman with FTI Consulting, you may begin.

Thank you, Teresa, and good morning, everyone. Welcome to the EMCOR Group conference call. We are here today to discuss the company's 2015 second quarter results, which were reported this morning. I'd like to turn the call over to Kevin Matz, Executive Vice President of Shared Services, who will introduce management. Kevin, please go ahead.

Thank you, Michelle, and good morning, everyone. Welcome to EMCOR Group's earning conference call for the second quarter of 2015. For those of you, who are accessing the call via the internet and our website welcome to you as well and we hope you have arrived at the beginning of our slide presentation that will accompany our remarks today. We are on Slide 2. Slide 2 depicts the executives who are with me to discuss the quarter and six months results. They are Tony Guzzi, President and Chief Executive Officer; Mark Pompa, our Executive Vice President and Chief Financial Officer; Mava Heffler, Vice President of Marketing and Communications; and our Executive Vice President and General Counsel, Sheldon Cammaker. For call participants not accessing the conference call via the internet, this presentation including the slides will be archived in the Investor Relations section of our website under presentations. You can find this at emcorgroup.com. Before we begin, I want to remind you that this discussion may contain certain forward-looking statements. Any such statements are based upon information available to EMCOR management's perception as of this date, and EMCOR assumes no obligation to update any such forward-looking statements. 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 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 services, adverse business conditions, increased competition, mix of business, and risks associated with foreign operations. Certain of the risks and factors associated with EMCOR's business are also discussed in the company's 2014 Form 10-K and in other reports filed from time to time with the Securities and Exchange Commission. With that said, please let me turn the call over to Tony. Tony?

Hey, thanks Kevin, I’ll be on Pages 3 and 4. By any measure, we had a terrific second quarter. It was the best in our history. We had strong performance across all our major segments. At 6.4% organic growth, we recovered some of the loss revenues we had in our - from Q1 in our Electrical, Mechanical and Building Services segments. We talked about the weather and it’s affecting Q1. We recovered very little of the lost opportunity that reached refinery strike in Q1 in this quarter. However, it was not just catch up revenues, but we had strong underlying organic growth outside of the Q1 catch up. We are in $0.74 per diluted share in the quarter, which for us was a record Q2 performance for any year. And as we expected, put us back on track for 2015 after that weaker than expected first quarter. Operating margins were strong 4.7% with improvement in our Mechanical, Building Services and Industrial segments, with the Electrical segment essentially flat versus a year ago period. The UK performed as expected. We had good overall operating income growth at 11.5% led by Industrial with 40.7% growth and continued strong performance from Building Services at 28.9% operating income growth. And our Construction segments had good operating growth at almost 8%. Let me give you highlights from each of the segments before I turn the call over to Mark. Electrical, we continue to have strong margin performance. It’s a great business, we run it well. We had some organic growth. However, we do expect that growth to strengthen as the year progresses as we work on some large infrastructure projects. Mechanical, we had good margin rebound and we return to organic growth. Building Services, we continue to have improvements in commercial site base. We have…

Thank you, Tony, and good morning to everyone participating on the call today. For those accessing this presentation via the webcast, we are now on Slide 5. As I typically do each quarter, I’ll provide a detail discussion of our most recent quarter results before moving to year-to-date key financial data derived from our consolidate financial statements included in both our earnings release announcement and Form 10-Q filed with the Securities and Exchange Commission earnings this morning. So let’s begin. Consolidate revenues of 1.65 billion in quarter two are up 6.4%. All reportable segments are reporting increased revenues quarter-over-quarter. Our second quarter revenues include a minimal amount of acquisition revenues within our U.S. Mechanical Construction Services segment. U.S. Electrical Construction revenue increased 3.2% to 346.2 million. The increased revenue is due to greater project activity with the transportation, healthcare and commercial market sectors and on a sequential basis, it’s fairly consistent with our quarter one 2015 revenue performance. U.S. Mechanical Construction second quarter revenues increased 15.4 million to 544 million or 2.9%. The quarterly increase is due to higher revenues from project activity with the commercial and institutional market sectors. For those of you who had participated on our quarter one, you may recollect that this particular segment experienced last work days within their North Eastern based operating companies due to extreme cold weather conditions. EMCOR’s total domestic construction business second quarter revenue increased 26.1 million or approximately 3%. U.S. Building Services revenues of 435.6 million increased 17.5 million or 4.2% quarter-over-quarter, despite the headwinds associated with the loss of two government contracts completed in 2014 that were not renewed pursuing to rebid due to pricing a non- EMCOR’s historical performance, which we have referenced in each of the last two earnings call’s commentaries. This is the first revenue growth…

Yeah, thanks Mark. I am going to be on Page 10 and 11 and I am going to talk about backlog. Right now backlog is essentially flat versus the year ago period and it’s slightly down from quarter one, which I guess we would expect with 6.4% organic revenue growth in the quarter. I think it’s indicative of strong performance and strong end markets that we were able to maintain backlog relatively flat. I think when you look at this page and I am on Page 10, I can give you some commentary about what’s going on in the markets and it’s over a number of quarters and number of years. What you seeing is the commercial market has come back strong and we’re at record levels at for commercial and we’re up again year-over-year. The commercial market is strong for a number of reasons. One, we are well positioned in the commercial markets and some markets that are doing well. Secondly, there is a good occupancy rates and there is a desire upgrade buildings and we will take advantage of that. As you move up the page, a hospitality, it is what it is, we worth a high end of hospitality, I’ve to have a right properties in the right place. And what we see something build there again sure and where we participate absolutely. Our hospitality when it was very strong if you had this extended back to 2007, it was gaming driven and was primarily Las Vegas driven. You mean what the Industrial, Industrial for us is a lot of things. Industrial we do in the shops, I’ll take about that more on the next page, but it’s also things like power plant, solar plants, manufacturing plants, food processing plants, it’s all those things. We think the…

In turn to make sure everybody understand, this page is only referring to the industrial services segment, not our full participation in the industrial sector which obviously our construction subsidiaries do participate.

Quite a bit. It’s been a growth market for us. Now I’ll go to Page 12 and 13. So what we’re going to do is we’re going to leave revenue guidance where it was at 6.6 million. That basically implies the same growth for the back half of the year as the current half of the year net around 3%. And for we feel really good about how we did in second quarter, but we also we caught up from the performance in first quarter and we said we would and we did. We’re going to bring the top end of the range down a dime. We’re going to make the range now 2.65 to 2.85 per diluted share from continuing operations. So 6.6 billion revenue, 2.65 to 2.85 per diluted share from continuing operations. That EMCOR really tried to focus on how do we get to mid to high point of that range. While how do you do that? Well we need more revenue growth of 3% in the back half of the year and what we’ve achieved on a year-to-date basis then we got a pretty good short as a mid-point to the high point. We could see some acceleration our large infrastructure work we’re doing in electrical. We continue to see a strong pace of recovery across the non-res market to include our mechanical service business not just our construction businesses. As of today, we are still planning for a pretty good fall turnaround season. But to get to the top end of the range, we would need to see some scope increases from what we are expecting today or some of the delay strip work to come into 2015 versus 2016 where we expect most of it to land today. We have a pretty good non-res…

[Operator Instructions] And your first question comes from the line of Adam Thalhimer with BB&T Capital Markets.

Hey, good morning, guys. Nice quarter.

Good morning, Adam. Thank you.

Okay, turning on the non-res construction outlook particularly in the commercial side, you said you are more optimistic and you have been in a while in a better market then you have in a while. How, what kind of visibility do you have there? I mean how do you think that extends in 2016?

Yeah, Adam, sorry to run away from the facts right, the markets up or our backlogs up 2.5 times from where it was at the bottom. And so we’re operating over a $1 billion in backlog there now. And we continue to see very strong mechanical service small project activity which for us is a pretty good mark around what’s going on non-res. I mean the visibility we have into ‘16 is what we’re bidding and most of those projects will happen in the next six to nine months. And what’s on the engineers board, I would say through early ‘16 we are okay. I don’t think we have much visibility beyond that we never do, I mean unless it’s a really large project and that’s not what really drives the growth right, but that sets the growth and the growth is driven by the mid-size of small projects. So I would say through the end of the year, they are always 16, I think we are in pretty good shape on from part of non-res.

Okay. And then on the industrial side, I am a little bit confused because you actually had a good quarter there, I think maybe you referenced one large project, I am just curious, I mean you gave a lot of color on that segment, I am just - I am wonder if you give a little bit more color on how unlike trend as the year goes on?

I think it’s going to trend fine. I think if there is a caution in our numbers, it’s not that we won’t think we’re going to do okay, it’s more how do you get to the top end of the range, that firing even above vis-à-vis on also when there is much seven of eight. Most of that Adam, has to do with we’re not seeing the work from the refining strike coming back this year. So what you see for the most part in Q2 is work that has nothing to do with refining like as it do with excellence and execution in our build businesses and really good performance on some unit rebuilds. And we don’t see any reason. I think that’s not going to continue. But you have to have a little bit of caution when oil back goes to $50 and in another part of someone’s business is getting hit pretty hard and you wonder how that’s going to expand the capital part of the business which were mainly effect for us the OEM head exchanger build which in any given year can be 10% to 14% of that segment.

Okay, thanks a lot and I’ll turn it over.

And your next question comes from the line of John Rogers with D.A. Davidson.

Hi, good morning. Congratulations on the quarter.

Hi John.

In terms of the fall turnaround season, I mean you made the reference to it is solid but is it up or down from prior year levels from your perspective, is it - what I am seeing is could refinery margins but also reports that refiners want to keep running through that season maybe differ some of that work into ‘16?

Yeah, John, I think what we try to pay attention to is man hours, how many man hours do we expect to deploy. And right now I would say that’s flattish up a little bit, but you really don’t know that going in because if it’s extends a week or two it can substantially increase the scope on a turnaround. And some of the best work we do is once we get in there and we have to pick some more than we thought we are going to with the original scope. So it’s really hard for us to sit here and say, what we do know is we have a full schedule turnaround, we know we’re going to very busy, we’re going to busy across all of our companies and our customers are trying to make sure we get the right resources for them and the mix of resources that’s right for the job. What we don’t know today is you want a specific turnaround, what we think it might be six, it could end up being five, it could being ten, it could end up being 12. We’ll know sometime when we are get rolling here in September, October but as of now people are holding their schedule and going to execute. All that being said, all those turnarounds would have happened in the first quarter and would even be doing better in industrial, right, we would have - so you could have taken the catch up we had in Q2 and now we all flow through to increase performance year-over-year because we would had a very good. If you say we said it was $0.07 or $0.08 a share in the first quarter that was what we knew about, that’s not all these other things I was talking about the spillover impacts. So that would have happen regardless of high utilization, regardless of people wanting to run flat up, because they were scheduled and they were ready to go, our planners were in there, our crews were starting to do some of the work in some cases. So I think that is true to some extend but we’ve seen, I could be telling you something different on our third quarter call but I doubt it. But I think people going to follow through on their schedule for the fall season because everybody is now worried what manpower is going to look like in early spring and again that could push out and that’s too early for us to tell.

Okay. And then just in regard to your comments on acquisition opportunities in the market out there. But it sounds if you are sensing that there was likely to be more activity over the I don’t know next couple of quarters a year?

Yes.

I know it’s hard to read, but?

Yes, I believe that because we are seeing more companies that we’ve had long term interest in positioning themselves to be sold. We also note that is companies that we’ve likely for a very long period of time as there are in markets that we serve and maybe provide additional services than even what we are doing today. There are now near the end of the fun life of the people that have owned and they are going to have to do something and transact now, they can’t delay anymore. And we follow that closely.

And it’s more on the industrial side of the market, I would say?

Not necessarily, John. We’re still happy to expand not only the geography that we service our construction customers were, we’d like to do more for them. We’d like to expand the geography of our mechanical service business and we would always look to expand our capabilities to industrial business, any one of those business who are investable for us. You know if we go do EMCOR, what do we go there. We go to the application and technical labor, we’ll go managing distributed operations whether they be branch networks or companies or good at mobilizing for large complicated projects, are also good at mobilizing across many locations and so we can handle both variable. For us we would like to service more that goes on a construction side, we also wanted to that and maybe not necessarily just mechanical, electrical trade work, but we’ll see. Again we look at all these different things and if you look at most of what we do at EMCOR, we learned about it someway say perform before we started doing it. But the core of what we’re going to do remains the same as far as we are going to service the U.S. construction market, we’re going to service the U.S. building services market and we’re going to service the U.S. industrial downstream and petrochemical refining market. And the industrial market will broadly find as you get into even our other segments. And we’re going to do that with very good technical labor or we’re going to do that in distributed operations and we’ll look for opportunities where we can bring our excellence and branch operations, GPS technology and everything else to bear on that.

And John, this is Mark. The other think I would add to Toni’s commentary with a loss we’ll continue to service our customers in the UK building services market.

Yeah, that also right. The UK building services market is a place that we would look to grow too. We’re starting to get good traction there and these two large contracts wins we had at the beginning of the year is a pretty good well whether what can happen. We have a focus business and they don’t have to go through the restructuring if they gone through in the last two and a half, three years. Thanks Mark.

Okay. Sorry, one last thing and may for Mark that the decline in non-controlling interest that we are seeing through the financial, are there any of the big projects out there where you not in full control of them?

No, that line specifically John, is the two government contracts we keep in front to that, we’re not rebid, because of the geography whether that’s in the financial statements, we were the majority, so we were - we consolidated the results. Right now that’s the elimination of the piece that we did not own.

Okay and there is nothing in backlog that’s…

No, that’s gone.

Okay, perfect, thank you.

You’re welcome.

Thanks John.

[Operator Instructions] And your next question comes from the line of Tahira Afzal with KeyBanc Capital Markets.

Good morning, gentlemen. This is Shaun on for Tahira today. Congrats on a great quarter. I guess my first question is just when you are looking at the tighter EPS guidance range, you know it sort of implies a little bit of a lighter margin outlook in the second half of the year. And I would be great if you could just help us understand a little bit what’s happening on that side?

Well, if you go to - this is Mark. If you go to the low point of the range in the guidance the operating margin that’s implied would be greater than it was in the first six months roughly 4.4%. At the high end of the range, it would be roughly 5%.

But I just mean you know in terms of the way what you have moved around in guidance, so just of implies in the second half of the year, the margins are expected to be a little big lighter than there were before.

We can take that - Mark can take that offline, because he want to walk through, we can do it now, but actually we’re counting on better margins in the second half of the year then we are now and we are counting on better EPS from continued operations at second half of the year and revenue growth about the same as we had in the first half of the year.

We again, if there is a math that you hear called cabinet mark and maybe…

Yeah, this is accounted.

But our math says something different.

I’ll go through the math with you, so give me a call afterwards.

Alright, no problem, just kind of versus prior expectation rather than the first half versus second half, but anyway we’ll move on something little more. You know just on the civil infrastructure side, there is just two thing, that would be great to get some commentary on and the first being we recently saw they finalize and did it on [indiscernible] expansion. And I just love to get an idea of what the scope for EMCOR might be on that project. And secondly we just have seen a little bit of movement on the federal highway bill this week. So I just love to get a sense of what kind of national opportunity that might present for EMCOR if we did see a long term bill go through. Some color there would be really interesting?

Look, I’ll take the first one first, the New York infrastructure market, the New York metro infrastructure market is very strong and has been. And where we plan that is the electrical infrastructure side. More than likely if we were to participate in any substantial way here, it would be on the electrical infrastructure side, not necessarily on the commercial building side. As far as in a highway bill, I mean we’ll see the spillover if actually not where we would likely participate if it became three to five program or people could plan a little better. If there is going to be major road upgrades, we would do the lighting and driving information systems for those. Again it would be in electoral infrastructure play for EMCOR likely the only place we would play as it pertains to that.

Alright guys, alright thanks for the color.

Thank you.

There are no further questions, management do you have any closing remarks.

Look, we had a good quarter, we on track for the year. We expect to continue to perform pretty well. We look forward to talking to you here on October and thank you for your interest in EMCOR and hope everybody has a very safe remainder of the summer. Thank you very much, bye.