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 EMCOR Group, Inc. Reports Fourth Quarter and Full-Year 2016 Results
   Thursday, February 23, 2017 7:30:00 AM ET

EMCOR Group, Inc. (EME ) today reported results for the fourth quarter and fiscal year ended December 31, 2016.

For the fourth quarter of 2016, net income from continuing operations attributable to EMCOR was $42.2 million, or $0.69 per diluted share, compared to $50.4 million, or $0.80 per diluted share, in the fourth quarter of 2015. Excluding an impairment charge detailed below, non-GAAP net income from continuing operations was $43.7 million, or $0.72 per diluted share, in the fourth quarter of 2016. Revenues for the fourth quarter of 2016 totaled $1.95 billion, an increase of 9.7%, compared to $1.78 billion in the fourth quarter 2015.

Operating income for the fourth quarter of 2016 was $74.5 million, or 3.8% of revenues, compared to operating income of $84.1 million, or 4.7% of revenues, in the fourth quarter of 2015. Included in the operating income for the fourth quarter of 2016 was an impairment charge of $2.4 million. Excluding this impairment charge, non-GAAP operating income in the fourth quarter of 2016 was $76.9 million, or 3.9% of revenues. Included in both GAAP and non-GAAP operating income for the fourth quarter of 2016 was a $20.5 million project loss associated with a contract dispute on a completed project within our U.S. Mechanical Construction segment.

Please see the attached tables for a reconciliation of non-GAAP operating income, non-GAAP net income from continuing operations and non-GAAP diluted earnings per share from continuing operations to the comparable GAAP figures.

Selling, general and administrative expenses for the 2016 fourth quarter were $194.9 million, or 10.0% of revenues, compared to $168.5 million, or 9.5% of revenues, in the fourth quarter of 2015.

Backlog as of December 31, 2016 was $3.90 billion, an increase of 3.5% from $3.77 billion at the end of the fourth quarter of 2015. Total domestic backlog grew $107.3 million year-over-year and backlog in our U.K. Building Services segment increased $24.4 million. Year-over-year growth in backlog in our U.S. Mechanical Construction and U.S. Electrical Construction segments more than offset declines in our U.S. Building Services and U.S. Industrial Services segments. From an end-market perspective, backlog growth in the commercial, healthcare, industrial and water & wastewater markets was partially offset by declines in the institutional, transportation and hospitality sectors.

Tony Guzzi, President and Chief Executive Officer of EMCOR, commented, "The Company delivered record revenues and diluted earnings per share from continuing operations in the 2016 full-year period, with growth of 12% and 14%, respectively, excluding transaction expenses and an impairment charge. This was driven by double-digit revenue growth in our combined U.S. businesses, with strong operating income contributions from our U.S. Electrical Construction segment and our U.S. Industrial Services segment and bottom-line growth from our U.K. business. We are particularly pleased with these results given the obstacles that were presented throughout the year, including the losses incurred from several large scale projects in both of our U.S. Construction segments, with respect to which we are seeking recovery."

Mr. Guzzi added, "In the quarter, our U.S. Electrical Construction segment, a standout in the quarter, delivered a 111% increase in operating income, with over 200 basis points of operating margin expansion. While revenues increased 9.4% in our U.S. Mechanical Construction segment for the quarter, this revenue growth unfortunately did not lead to a corresponding increase in segment profitability. This was due to the execution of a fast-paced process facility project that resulted in a $20.5 million loss due to a contract dispute at the completion of our work. Our U.S. Building Services segment reported an exceptional quarter, with operating income increasing by 35% on a 120 basis point margin expansion, driven by strong performance in its mobile mechanical services operations. Our U.S. Industrial Services segment’s operating income was essentially flat for the quarter; however, for the year, revenues and operating income increased close to 16% and 38%, respectively, on the strength of a significant field services capital project. Lastly, our U.K. segment was able to expand operating margins by 70 basis points in the quarter."

Revenues for the 2016 full-year period increased 12.4% to $7.55 billion, compared to $6.72 billion for the 2015 full-year period. Net income from continuing operations attributable to EMCOR for the 2016 full-year period was $185.1 million, or $3.02 per diluted share, compared to $172.3 million, or $2.72 per diluted share, in the prior year. Excluding transaction expenses and the impairment charge recorded in the fourth quarter, non-GAAP net income from continuing operations attributable to EMCOR in the 2016 full-year period was $188.9 million, or $3.09 per diluted share.

Operating income for the 2016 full-year period was $308.5 million, or 4.1% of revenues, compared to $287.1 million, or 4.3% of revenues, in the 2015 full-year period. Included in operating income for the 2016 full-year period were $3.8 million of transaction expenses related to the Ardent acquisition and a $2.4 million impairment charge. Excluding the aforementioned expenses, non-GAAP operating income in the 2016 full-year period was $314.7 million, or 4.2% of revenues.

Please see the attached tables for a reconciliation of non-GAAP operating income, non-GAAP net income from continuing operations and non-GAAP diluted earnings per share from continuing operations to the comparable GAAP figures.

For the 2016 full-year period, selling, general and administrative expenses were $725.5 million, or 9.6% of revenues, compared to $656.6 million, or 9.8% of revenues, in the 2015 full-year period.

Based on the favorable backlog mix and assuming continued improvement in market conditions, EMCOR expects full-year 2017 revenues to be between $7.5 billion and $7.6 billion, and full-year 2017 diluted earnings per share from continuing operations to be in the range of $3.10 to $3.50.

Mr. Guzzi concluded, "After a solid 2016, we are encouraged by our prospects as we look to 2017 and beyond. Our backlog continues to expand despite record revenues, and we are especially pleased with the strong pipeline in our U.S. Construction segments. We remain optimistic that the non-residential construction market will continue to improve in 2017, and we are well positioned to capture our share of the market. Our healthy balance sheet continues to provide us with the flexibility to pursue strategic acquisitions while returning capital to shareholders through share repurchases and dividends."

EMCOR Group, Inc. is a Fortune 500 leader in mechanical and electrical construction services, industrial and energy infrastructure and building services. This press release and other press releases may be viewed at the Company’s website at www.emcorgroup.com.

EMCOR Group’s fourth quarter conference call will be available live via internet broadcast today, Thursday, February 23, at 10:30 a.m. Eastern Standard Time. The live call may be accessed through the Company’s website 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 2016 Form 10-K 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
                                                                                                                                      (In thousands, except share and per share information)
 
                                                                                                                                          CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                                                                                                                                                                                                                                            
                                                                                                                                                      (Unaudited)
                                                                                                                                              For the three months ended                                                                                               For the twelve months
                                                                                                                                                     December 31,                                                                                                       ended December 31,
                                                                                                           ------------------------------------------------------------------------------------------                            ------------------------------------------------------------------------------------------
                                                                                                                           2016                                    2015                                                       2016                                                       2015
                                                                                                           -------------------------------------                     ---------------------------------------                     -------------------------------------                     ---------------------------------------
Revenues                                                                                                       $ 1,949,964                                                 $ 1,777,826                                               $ 7,551,524                                                 $ 6,718,726
Cost of sales                                                                                                    1,677,995                                1,525,205                              6,513,662                                5,774,247  
                                                                                                           ------------------------------------                      --------------------------------------                      ------------------------------------                      --------------------------------------
Gross profit                                                                                                       271,969                                                     252,621                                                 1,037,862                                                     944,479
Selling, general and administrative expenses                                                                       194,884                                                     168,456                                                   725,538                                                     656,573
Restructuring expenses                                                                                                 167                                                          82                                                     1,438                                                         824
Impairment loss on identifiable intangible assets                                                                    2,428                           --                                  2,428                           --  
                                                                                                           ------------------------------------                      --------------------------------------                      ------------------------------------                      --------------------------------------
Operating income                                                                                                    74,490                                                      84,083                                                   308,458                                                     287,082
Interest expense                                                                                                    (3,654 )                                                    (2,282 )                                                 (12,627 )                                                    (8,932 )
Interest income                                                                                                        145                                      158                                    663                                      673  
                                                                                                           ------------------------------------                      --------------------------------------                      ------------------------------------                      --------------------------------------
Income from continuing operations before income taxes                                                               70,981                                                      81,959                                                   296,494                                                     278,823
Income tax provision                                                                                                28,536                                   31,584                                111,199                                  106,256  
                                                                                                           ------------------------------------                      --------------------------------------                      ------------------------------------                      --------------------------------------
Income from continuing operations                                                                                   42,445                                                      50,375                                                   185,295                                                     172,567
(Loss) income from discontinued operation, net of income taxes                                                      (1,558 )                                                       679                                 (3,142 )                                                       (60 )
                                                                                                           ------------------------------------                      --------------------------------------                      ------------------------------------                      --------------------------------------
Net income including noncontrolling interests                                                                       40,887                                                      51,054                                                   182,153                                                     172,507
Less: Net (income) loss attributable to noncontrolling interests                                                      (211 )                                                        12                                   (218 )                                                      (221 )
                                                                                                           ------------------------------------                      --------------------------------------                      ------------------------------------                      --------------------------------------
Net income attributable to EMCOR Group, Inc.                                                                   $    40,676                              $    51,066                            $   181,935                              $   172,286  
                                                                                                           ===== ========= ====================                      ======= ========= ====================                      ===== ========= ====================                      ======= ========= ====================
                                                                                                                                                                                                                                                                                            
Basic earnings (loss) per common share:
   From continuing operations                                                                                  $      0.70                              $      0.81                            $      3.05                              $      2.74  
                                                                                                           ===== ========= ====================                      ======= ========= ====================                      ===== ========= ====================                      ======= ========= ====================
   From discontinued operation                                                                                 $     (0.03 )                                               $      0.01                            $     (0.05 )                                               $     (0.00 )
                                                                                                           ===== ========= ====================                      ======= ========= ====================                      ===== ========= ====================                      ======= ========= ====================
                                                                                                                                                                                                                                                                                            
Diluted earnings (loss) per common share:
   From continuing operations                                                                                  $      0.69                              $      0.80                            $      3.02                              $      2.72  
                                                                                                           ===== ========= ====================                      ======= ========= ====================                      ===== ========= ====================                      ======= ========= ====================
   From discontinued operation                                                                                 $     (0.03 )                                               $      0.01                            $     (0.05 )                                               $     (0.00 )
                                                                                                           ===== ========= ====================                      ======= ========= ====================                      ===== ========= ====================                      ======= ========= ====================
                                                                                                                                                                                                                                                                                            
Weighted average shares of common stock outstanding:
   Basic                                                                                                        60,479,635                                                  62,398,915                                                60,769,808                                                  62,789,120
   Diluted                                                                                                      60,956,004                                                  62,909,269                                                61,206,792                                                  63,307,512
                                                                                                                                                                                                                                                                                            
Dividends declared per common share                                                                            $      0.08                              $      0.08                            $      0.32                              $      0.32  
                                                                                                           ===== ========= ====================                      ======= ========= ====================                      ===== ========= ====================                      ======= ========= ====================
                                                                                                                                                                                                                                                                                                              
                                                                                                                 
                                                                                             EMCOR GROUP, INC.
                                                                                   CONDENSED CONSOLIDATED BALANCE SHEETS
                                                                                              (In thousands)
                                                                                                                                                                            
                                                                                                                              December 31,                                           December 31,
                                                                                                                                  2016                                                   2015
                                                                                                                  ---------------------------------                        ------------------------------
ASSETS
Current assets:
Cash and cash equivalents                                                                                            $   464,617                                                    $              486,831
Accounts receivable, net                                                                                               1,495,431                                                                 1,359,862
Costs and estimated earnings in excess of billings on uncompleted                                                        130,697                                                                   117,734
contracts
Inventories                                                                                                               37,426                                                                    37,545
Prepaid expenses and other                                                                                                82,676                                                 64,140
                                                                                                                  -----------------------------------                      --------------------------------
Total current assets                                                                                                   2,210,847                                                                 2,066,112
Investments, notes and other long-term receivables                                                                         8,792                                                                     8,359
Property, plant & equipment, net                                                                                         127,951                                                                   122,018
Goodwill                                                                                                                 979,628                                                                   843,170
Identifiable intangible assets, net                                                                                      487,398                                                                   472,834
Other assets                                                                                                              79,554                                                 30,164
                                                                                                                  -----------------------------------                      --------------------------------
Total assets                                                                                                         $ 3,894,170                                 $            3,542,657
                                                                                                                  ==== ========= ====================                      ========== ====================
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt and capital lease obligations                                                   $    15,030                                                    $               17,541
Accounts payable                                                                                                         501,213                                                                   488,251
Billings in excess of costs and estimated earnings on uncompleted                                                        489,242                                                                   429,235
contracts
Accrued payroll and benefits                                                                                             310,514                                                                   268,033
Other accrued expenses and liabilities                                                                                   195,775                                                209,361
                                                                                                                  -----------------------------------                      --------------------------------
Total current liabilities                                                                                              1,511,774                                                                 1,412,421
Borrowings under revolving credit facility                                                                               125,000                                                            --
Long-term debt and capital lease obligations                                                                             283,296                                                                   297,559
Other long-term obligations                                                                                              436,158                                                352,621
                                                                                                                  -----------------------------------                      --------------------------------
Total liabilities                                                                                                      2,356,228                                              2,062,601
                                                                                                                  -----------------------------------                      --------------------------------
Equity:
Total EMCOR Group, Inc. stockholders’ equity                                                1,537,089                                                                 1,476,711
Noncontrolling interests                                                                                                     853                                                  3,345
                                                                                                                  -----------------------------------                      --------------------------------
Total equity                                                                                                           1,537,942                                              1,480,056
                                                                                                                  -----------------------------------                      --------------------------------
Total liabilities and equity                                                                                         $ 3,894,170                                 $            3,542,657
                                                                                                                  ==== ========= ====================                      ========== ====================
                                                                                                                                                                                       
                                                                                                               
                                                                                               EMCOR GROUP, INC.
                                                                                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                            For the Twelve Months Ended December 31, 2016 and 2015
                                                                                                (In thousands)
                                                                                                                                                                          
                                                                                                                               2016                                                      2015
                                                                                                               -------------------------------------                     -------------------------------------
Cash flows - operating activities:
Net income including noncontrolling interests                                                                        $ 182,153                                                 $ 172,507
Depreciation and amortization                                                                                           38,881                                                    36,294
Amortization of identifiable intangible assets                                                                          40,908                                                    37,895
Deferred income taxes                                                                                                   (8,108 )                                                 (10,300 )
Excess tax benefits from share-based compensation                                                                       (2,546 )                                                  (1,663 )
Equity income from unconsolidated entities                                                                              (1,569 )                                                  (2,883 )
Other non-cash items                                                                                                    17,789                                                    11,932
Distributions from unconsolidated entities                                                                               1,247                                                     3,352
Changes in operating assets and liabilities, excluding the effect of                                                    (4,194 )                                                  19,532  
businesses acquired
                                                                                                               --------------  --------------------                      --------------  --------------------
Net cash provided by operating activities                                                                              264,561                                266,666  
                                                                                                               ------------------------------------                      ------------------------------------
Cash flows - investing activities:
Payments for acquisitions of businesses, net of cash acquired                                                         (232,947 )                                                 (28,195 )
Proceeds from sale of property, plant and equipment                                                                      2,023                                                     3,847
Purchase of property, plant and equipment                                                                              (39,648 )                                                 (35,460 )
Investments in and advances to unconsolidated entities and joint                                                           (99 )                                          --  
ventures
                                                                                                               --------------  --------------------                      --------------  --------------------
Net cash used in investing activities                                                                                 (270,671 )                                                 (59,808 )
                                                                                                               ------------------------------------                      ------------------------------------
Cash flows - financing activities:
Proceeds from revolving credit facility                                                                                220,000                                            --
Repayments of revolving credit facility                                                                                (95,000 )                                          --
Borrowings from long-term debt                                                                                         400,000                                            --
Repayments of long-term debt and debt issuance costs                                                                  (417,990 )                                                 (17,514 )
Repayments of capital lease obligations                                                                                 (1,384 )                                                  (2,737 )
Dividends paid to stockholders                                                                                         (19,454 )                                                 (20,095 )
Repurchase of common stock                                                                                             (94,221 )                                                (104,330 )
Proceeds from exercise of stock options                                                                                    741                                                     3,836
Payments to satisfy minimum tax withholding                                                                             (4,225 )                                                  (3,866 )
Issuance of common stock under employee stock purchase plan                                                              4,814                                                     4,223
Payments for contingent consideration arrangements                                                              --                                                      (403 )
Distributions to noncontrolling interests                                                                               (2,710 )                                                 (10,250 )
Excess tax benefits from share-based compensation                                                               --                                  1,663  
                                                                                                               ------------------------------------                      ------------------------------------
Net cash used in financing activities                                                                                   (9,429 )                                                (149,473 )
                                                                                                               ------------------------------------                      ------------------------------------
Effect of exchange rate changes on cash and cash equivalents                                                            (6,675 )                                                  (2,610 )
                                                                                                               ------------------------------------                      ------------------------------------
(Decrease) increase in cash and cash equivalents                                                                       (22,214 )                                                  54,775
Cash and cash equivalents at beginning of year                                                                         486,831                                432,056  
                                                                                                               ------------------------------------                      ------------------------------------
Cash and cash equivalents at end of period                                                                           $ 464,617                              $ 486,831  
                                                                                                               ======= ======= ====================                      ======= ======= ====================
                                                                                                                                                                                          
                                                                 
                                                                                        EMCOR GROUP, INC.
                                                                                       SEGMENT INFORMATION
                                                                                         (In thousands)
                                                                                                         
                                                                                                                                               (Unaudited)
                                                                                                                                       For the three months ended
                                                                                                                                              December 31,
                                                                                                        -----------------------------------------------------------------------------------
                                                                                                                        2016                                2015
                                                                                                        ------------------------------------                     --------------------------------
Revenues from unrelated entities:
United States electrical construction and facilities services                                              $   476,929                                                    $              357,557
United States mechanical construction and facilities services                                                  722,245                                                                   660,212
United States building services                                                                                438,539                                                                   435,870
United States industrial services                                                                              237,251                                                222,246
                                                                                                        -----------------------------------                      --------------------------------
Total United States operations                                                                               1,874,964                                                                 1,675,885
United Kingdom building services                                                                                75,000                                                101,941
                                                                                                        -----------------------------------                      --------------------------------
Total worldwide operations                                                                                 $ 1,949,964                                 $            1,777,826
                                                                                                        ==== ========= ====================                      ========== ====================
                                                                                                                                                                  
                                                                                                                                       For the twelve months ended
                                                                                                                                              December 31,
                                                                                                        -----------------------------------------------------------------------------------
                                                                                                                        2016                                                   2015
                                                                                                        ------------------------------------                     --------------------------------
Revenues from unrelated entities:
United States electrical construction and facilities services                                              $ 1,704,403                                                    $            1,367,142
United States mechanical construction and facilities services                                                2,661,763                                                                 2,312,763
United States building services                                                                              1,791,787                                                                 1,739,259
United States industrial services                                                                            1,067,315                                                922,085
                                                                                                        -----------------------------------                      --------------------------------
Total United States operations                                                                               7,225,268                                                                 6,341,249
United Kingdom building services                                                                               326,256                                                377,477
                                                                                                        -----------------------------------                      --------------------------------
Total worldwide operations                                                                                 $ 7,551,524                                 $            6,718,726
                                                                                                        ==== ========= ====================                      ========== ====================
                                                                                                                                                                             
                                                                 
                                                                                         EMCOR GROUP, INC.
                                                                                        SEGMENT INFORMATION
                                                                                          (In thousands)
                                                                                                         
                                                                                                                                                (Unaudited)
                                                                                                                                        For the three months ended
                                                                                                                                               December 31,
                                                                                                        ------------------------------------------------------------------------------------
                                                                                                                      2016                                 2015
                                                                                                        ---------------------------------                     -------------------------------------
Operating income (loss):
United States electrical construction and facilities services                                             $  31,116                                                 $  14,746
United States mechanical construction and facilities services                                                32,238                                                    58,497
United States building services                                                                              21,009                                                    15,588
United States industrial services                                                                            11,245                                 11,881  
                                                                                                        --------------------------------                      ------------------------------------
Total United States operations                                                                               95,608                                                   100,712
United Kingdom building services                                                                              2,786                                                     3,064
Corporate administration                                                                                    (21,309 )                                                 (19,611 )
Restructuring expenses                                                                                         (167 )                                                     (82 )
Impairment loss on identifiable intangible assets                                                            (2,428 )                                          --  
                                                                                                        --------------------------------                      ------------------------------------
Total worldwide operations                                                                                   74,490                                                    84,083
Other corporate items:
Interest expense                                                                                             (3,654 )                                                  (2,282 )
Interest income                                                                                                 145                                    158  
                                                                                                        --------------------------------                      ------------------------------------
Income from continuing operations before income taxes                                                     $  70,981                              $  81,959  
                                                                                                        === ======= ====================                      ======= ======= ====================
                                                                                                                                                               
                                                                                                                                        For the twelve months ended
                                                                                                                                               December 31,
                                                                                                        ------------------------------------------------------------------------------------
                                                                                                                      2016                                                    2015
                                                                                                        ---------------------------------                     -------------------------------------
Operating income (loss):
United States electrical construction and facilities services                                             $ 101,761                                                 $  82,225
United States mechanical construction and facilities services                                               133,742                                                   138,688
United States building services                                                                              75,770                                                    70,532
United States industrial services                                                                            77,845                                 56,469  
                                                                                                        --------------------------------                      ------------------------------------
Total United States operations                                                                              389,118                                                   347,914
United Kingdom building services                                                                             11,946                                                    11,634
Corporate administration                                                                                    (88,740 )                                                 (71,642 )
Restructuring expenses                                                                                       (1,438 )                                                    (824 )
Impairment loss on identifiable intangible assets                                                            (2,428 )                                          --  
                                                                                                        --------------------------------                      ------------------------------------
Total worldwide operations                                                                                  308,458                                                   287,082
Other corporate items:
Interest expense                                                                                            (12,627 )                                                  (8,932 )
Interest income                                                                                                 663                                    673  
                                                                                                        --------------------------------                      ------------------------------------
Income from continuing operations before income taxes                                                     $ 296,494                              $ 278,823  
                                                                                                        === ======= ====================                      ======= ======= ====================
                                                                                                                                                                               

EMCOR GROUP, INC. RECONCILIATION OF 2016 AND 2015 OPERATING INCOME (In thousands) (Unaudited)

In our press release, we provide actual 2016 and 2015 fourth quarter and year-to-date December 31, 2016 and 2015 operating income. The following table provides a reconciliation between 2016 and 2015 operating income based on non-GAAP measures to the most direct comparable GAAP measures.

                                                                                                                                                                         
                                                                                                                                                 For the three months ended                                                                                     For the twelve months ended
                                                                                                                                                        December 31,                                                                                                   December 31,
                                                                                                               ----------------------------------------------------------------------------------------                            ------------------------------------------------------------------------------
                                                                                                                               2016                                   2015                                                     2016                             2015
                                                                                                               -------------------------------------                     -------------------------------------                     ----------------------------------                     -----------------------------
GAAP operating income                                                                                                $  74,490                                                 $  84,083                                              $ 308,458                                                 $              287,082
Transaction expenses related to the acquisition of Ardent                                                       --                                            --                                                  3,838                                                         --
Impairment loss on identifiable intangible assets                                                                        2,428                         --                               2,428                                      --
                                                                                                               ------------------------------------                      ------------------------------------                      ---------------------------------                      -----------------------------
Non-GAAP operating income, excluding Ardent transaction expenses and                                                 $  76,918                              $  84,083                           $ 314,724                              $              287,082
impairment loss on identifiable intangible assets
                                                                                                               ======= ======= ====================                      ======= ======= ====================                      ==== ======= ====================                      ======= ====================
                                                                                                                                                                                                                                                                                                   

EMCOR GROUP, INC. RECONCILIATION OF 2016 AND 2015 NET INCOME (In thousands) (Unaudited)

In our press release, we provide actual 2016 and 2015 fourth quarter and year-to-date December 31, 2016 and 2015 net income from continuing operations attributable to EMCOR Group, Inc. The following table provides a reconciliation between 2016 and 2015 net income from continuing operations attributable to EMCOR Group, Inc. based on non-GAAP measures to the most direct comparable GAAP measures.

                                                                                                                                                                         
                                                                                                                                           For the three months ended December 31,                                                                        For the twelve months ended December 31,
                                                                                                               ----------------------------------------------------------------------------------------                            --------------------------------------------------------------------------------
                                                                                                                               2016                                   2015                                                      2016                              2015
                                                                                                               -------------------------------------                     -------------------------------------                     ------------------------------------                     -----------------------------
GAAP net income from continuing operations attributable to EMCOR                                                     $  42,234                                                 $  50,387                                                $ 185,077                                                 $              172,346
Group, Inc. (1)
Transaction expenses related to the acquisition of Ardent (2)                                                   --                                            --                                                    2,328                                                         --
Impairment loss on identifiable intangible assets (3)                                                                    1,473                         --                                 1,473                                      --
                                                                                                               ------------------------------------                      ------------------------------------                      -----------------------------------                      -----------------------------
Non-GAAP net income from continuing operations attributable to EMCOR                                                 $  43,707                              $  50,387                             $ 188,878                              $              172,346
Group, Inc., excluding Ardent transaction expenses and impairment
loss on identifiable intangible assets
                                                                                                               ======= ======= ====================                      ======= ======= ====================                      ====== ======= ====================                      ======= ====================
                                                                                                                                                                                                                                                                                                     

(1) Amount is income from continuing operations less net income attributable to noncontrolling interest. (2) Amount is net of tax effect of $1.5 million in the 2016 year-to-date period. (3) Amount is net of tax effect of $1.0 million in the 2016 quarter and year-to-date periods.

EMCOR GROUP, INC. RECONCILIATION OF 2016 AND 2015 DILUTED EARNINGS PER SHARE FIGURES (Unaudited)

In our press release, we provide actual 2016 and 2015 fourth quarter and year-to-date December 31, 2016 and 2015 diluted earnings per share from continuing operations. The following table provides a reconciliation between 2016 and 2015 EPS based on non-GAAP measures to the most direct comparable GAAP measures.

                                                                                                                                                                      
                                                                                                                                        For the three months ended December 31,                                                                       For the twelve months ended December 31,
                                                                                                            -----------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------
                                                                                                                            2016                                   2015                                                     2016                              2015
                                                                                                            -------------------------------------                     -------------------------------------                     -----------------------------------                     -----------------------------
GAAP diluted earnings per common share from continuing operations                                                 $    0.69                                                 $    0.80                                                $   3.02                                                 $                 2.72
Transaction expenses related to the acquisition of Ardent (1)                                                --                                            --                                                    0.04                                                         --
Impairment loss on identifiable intangible assets (2)                                                                  0.02                                            --                                                    0.02                                                         --
Non-GAAP diluted earnings per common share from continuing                                                        $    0.72                              $    0.80                             $   3.09                              $                 2.72
operations, excluding Ardent transaction expenses and impairment
loss on identifiable intangible assets
                                                                                                            ======= ======= ====================                      ======= ======= ====================                      ====== ====== ====================                      ======= ====================
                                                                                                                                                                                                                                                                                                 

(1) Amount is net of tax effect of $1.5 million in the 2016 year-to-date period. (2) Amount is net of tax effect of $1.0 million in the 2016 quarter and year-to-date periods.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170223005225r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20170223005225/en/

SOURCE: EMCOR Group, Inc.

EMCOR Group, Inc. 
R. Kevin Matz, 203-849-7938 
Executive Vice President 
Shared Services 
or 
Investors: 
FTI Consulting, Inc. 
Effie Veres, 212-850-5600 
or 
Media: 
LAK Public Relations, Inc. 
Lisa Linden, 212-575-4545 
or 
Mollie Fullington, 917-346-6123


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