Emcor Group (EME) has reported 53.25 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $52.64 million, or $0.87 a share in the quarter, compared with $34.35 million, or $0.56 a share for the same period last year.     

Revenue during the quarter grew 8.41 percent to $1,891.73 million from $1,744.97 million in the previous year period. Gross margin for the quarter expanded 129 basis points over the previous year period to 14.08 percent. Total expenses were 95.62 percent of quarterly revenues, down from 96.81 percent for the same period last year. This has led to an improvement of 119 basis points in operating margin to 4.38 percent.

Operating income for the quarter was $82.77 million, compared with $55.62 million in the previous year period.

However, the adjusted operating income for the quarter stood at $82.77 million compared to $56.70 million in the prior year period. At the same time, adjusted operating margin improved 113 basis points in the quarter to 4.38 percent from 3.25 percent in the last year period.

Tony Guzzi, president and chief executive officer of EMCOR, commented, "2017 is off to a very solid start with record first quarter revenues and operating income, driven by strong top-line growth and operating performance in our U.S. Construction segments. Strong execution for the quarter across all end-markets drove operating income growth for the Company of 49% and operating margin expansion of 120 basis points over the year ago period. Along with revenue growth of over 8%, we continued to grow our backlog ending the first quarter with a strong pipeline of project work."

For financial year 2017, Emcor Group expects revenue to be in the range of $7,500 million to $7,600 million. The company projects diluted earnings per share to be in the range of $3.20 to $3.50.

The company has spent $91.57 million cash to meet investing activities during the quarter as against cash outgo of $8.79 million in the last year period. It has incurred capital expenditure of $10.18 million on net basis during the quarter, up 19.27 percent or $1.64 million from year ago period.

The company has spent $65.61 million cash to carry out financing activities during the quarter as against cash outgo of $47.30 million in the last year period.

Cash and cash equivalents stood at $302.75 million as on Mar. 31, 2017, down 22.84 percent or $89.61 million from $392.36 million on Mar. 31, 2016.

Working capital declinesEmcor Group has witnessed a decline in the working capital over the last year. It stood at $568.93 million as at Mar. 31, 2017, down 13.95 percent or $92.24 million from $661.18 million on Mar. 31, 2016. Current ratio was at 1.39 as on Mar. 31, 2017, down from 1.50 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 43 days for the quarter from 45 days for the last year period. Days sales outstanding went down to 68 days for the quarter compared with 71 days for the same period last year.

Days inventory outstanding has decreased to 1 days for the quarter compared with 2 days for the previous year period. At the same time, days payable outstanding went down to 26 days for the quarter from 28 for the same period last year.