Emcor(EME)

Industrials SectorAugust 2nd, 2009

Kevin Abels

American Recovery and Reinvestment Act - Economic Stimulus Package

•Total Cost - $819 Billion

•$637 Billion in spending

•$182 Billion in tax cuts*As estimated by the CBO

• Goal of reviving the renewable energy industry and providing the capital over the next 3 years to eventually double domestic renewable energy capacity

• Undertake the largest weatherization program in history by modernizing 75 percent of federal business space and more than one million homes

• Enact the largest increase in funding of our nations roads, bridges, and mass transit systems since the creation of the national highway system in the 1950’s

Economic Stimulus Package - Goals

• The different agencies (Departments of Education, Health and Human Services, and Energy) decide who will receive award grants and contracts. Sometimes the money will go to a state government; other times, the funds will go directly to a school, hospital, contractor, or other organization.

How Does the Recovery Act Work?

Timeline

• The house bill will pour approximately $525 Billion (64%) into the economy within 19 months through spending and tax breaks

• Approximately $107.1 Billion is estimated to be spent this year

• The peak year is estimated to be between 2010-2011 with estimated spending to reach as high as $236.4 Billion

Emcor/Government Contracts

NAVY, Department of the $16,994,470

Public Buildings Service $11,302,524

Office of Asst. Sec. for Health except national centers (disused code)

$3,710,133

Smithsonian Institution, except units under separate Board of Trustees

$3,697,046

STATE, Department of $2,155,409

Top 5 Contracting Agencies Purchasing from Contractor(s)

Top 5 Contracting Agencies Purchasing from Emcor

 Facilities Operations Support Services $21,308,609

 Maintenance, Repair or Alteration of Real Property -- Office Buildings

$4,107,346

 Food Items For Resale $3,697,046

 Maintenance, Repair and Rebuilding of Equipment -- Plumbing, Heating, and Waste Disposal Equipment

$3,196,708

 Maintenance, Repair and Rebuilding of Equipment -- Refrigeration, Air Conditioning, and Air Circulating Equipment

$3,059,437

Emcor/Government Contracts

Top 5 Products or Services Sold

Top 5 Products/Services Sold

Emcor/Government Contracts

2000 $20,407,272

2001 $38,438,117

2002 $89,129,207

2003 $62,995,907

2004 $34,668,865

2005 $50,594,484

2006 $43,613,469

2007 $55,336,640

2008 $52,433,602

2009 $42,533,977

Trend

Trend

How Does Emcor Benefit?

Business Segments

•The Government has detailed to spend approximately $6 Billion to improve energy efficiency and energy conservation of federal buildings – Emcor is the second largest facilities service provider in the Washington DC area

•A total of approximately $32 Billion is allocated to transform the nations energy transmission , distribution, and production by allowing for a smarter and better grid and focusing investment in renewable technology

•The amount of capital that has already been deployed in the energy and infrastructure fields is minimal relative to the amount allocated. An increase in capital spending and opportunity is yet to come. Emcor has yet to receive any Recovery Act money, but is touted to be one of the biggest beneficiaries.