EMCOR Group Inc. (NYSE:EME) Q4 2014 Earnings Conference Call - Final Transcript
Feb 26, 2015 • 11:00 am ET
[Operator Instructions] Your first question comes from the line of Alex Rygiel of FBR.
Thank you, good morning everyone.
Tony, new awards is been is been about a $1.6 billion almost every quarter give or take for the last three years or so. It seems like you managed possibly to that number, given sort of the stagnant market. But the market sounds like it's waking up a little bit. Is it time now for you possibly to press your team members to be a little bit more aggressive to build new awards a little bit quicker?
Alex, that is a balance question, because our business is a business based on opportunities within a local market. And we are seeing opportunities in markets to really grow some of our companies and part of that 2% headcount you see in response to not only opportunities that we have in hand, but opportunities we see in front of us. So the way I look at it, with 11% backlog growth year-over-year and very minor headcount additions. We do have the ability to take more work. So we, I don't want to say we are getting more aggressive because we really have driven discipline bidding in our business.
It is part of our culture, but we have the ability to expand capabilities in markets and that's what we've done and a good example that is what we've done in the Metro New York area really building a infrastructure and transportation infrastructure electrical contract over the eight years. So I think, in one sense, the mathematics work out to a managed number. I think, with the right market in front of us, that booking rate will continue to expand. But what you've seen is, it's gotten better. It's just the mix of change in construction business is actually up nicely 15% and 22% year-over-year.
And are there any larger projects such as Tappan Zee that from a timing standpoint, we could see the revenue burn sort of accelerate over the summer months here that spike your revenue?
Well, I think one of the things will help our revenue if you think of the, let's just focus on the $30 million to $40 million late revenue in the construction business as a result of the weather that should come back into the business in Q2 in early Q3 based on scheduling. I would think a lot of that would come into Q2. And will probably work much productively regardless of whether we would have been able to do in the winter because we'll be doing it, in better weather now. I think the backlog velocity that we had up 11% year-over-year that as you know, that stuff has to move through the business now and we're continuing to see good opportunities and we're also seeing good momentum in our small projects work.
You know buried in these numbers is a pretty good story in building services. The backlog grew from year end and revenue would