-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, J9dtplXjqCk4qQlWndoJPoCT1b8b8yeJW6o69S0JvXn0wEr0UEBOLpbgwRyDgAfP Tw4TuCCegO7PCNhUccEZyw== 0000105634-05-000079.txt : 20050428 0000105634-05-000079.hdr.sgml : 20050428 20050428083047 ACCESSION NUMBER: 0000105634-05-000079 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20050331 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050428 DATE AS OF CHANGE: 20050428 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EMCOR GROUP INC CENTRAL INDEX KEY: 0000105634 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRICAL WORK [1731] IRS NUMBER: 112125338 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08267 FILM NUMBER: 05778253 BUSINESS ADDRESS: STREET 1: 301 MERRITT SEVEN CORPORATE PK STREET 2: 6TH FLOOR CITY: NORWALK STATE: CT ZIP: 06851 BUSINESS PHONE: 203-849-7800 MAIL ADDRESS: STREET 1: 301 MERRITT SEVEN CORPORATE PARK STREET 2: 6TH FLOOR CITY: NORWALK STATE: CT ZIP: 06851 FORMER COMPANY: FORMER CONFORMED NAME: JWP INC/DE/ DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: JAMAICA WATER PROPERTIES INC DATE OF NAME CHANGE: 19860518 FORMER COMPANY: FORMER CONFORMED NAME: WELSBACH CORP DATE OF NAME CHANGE: 19761119 8-K 1 a305pr.txt !AT QUARTER EARNINGS RELEASE UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (Date of earliest event reported) April 28, 2005 EMCOR Group, Inc. - -------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in Its Charter) Delaware - -------------------------------------------------------------------------------- (State or Other Jurisdiction of Incorporation) 1-8267 11-2125338 - -------------------------------------------------------------------------------- (Commission File Number) (I.R.S. Employer Identification No.) 301 Merritt Seven, Norwalk, CT 06851 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) (203) 849-7800 (Registrant's Telephone Number, Including Area Code) N/A - -------------------------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): __ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) __ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) __ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) __ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) EMCOR GROUP, INC. REPORTS 2005 FIRST QUARTER RESULTS - Operating Income Shows Significant Increase - NORWALK, CONNECTICUT, April 28, 2005 - EMCOR Group, Inc. (NYSE: EME) today reported results for the first quarter ended March 31, 2005. In the first quarter of 2005, the Company reported net income of $1.9 million, or $0.12 per diluted share, compared with net income of $5.7 million, or $0.37 per diluted share, in the first quarter of 2004. Revenues in the first quarter of 2005 totaled $1.09 billion, compared with total revenues of $1.11 billion in the year-ago quarter. Included in the Company's 2004 first quarter results were a $9.6 million reversal of income tax reserves and approximately $5.2 million in restructuring expenses. First quarter 2005 results include restructuring expenses of $1.2 million primarily related to the Company's Canadian and UK operations. Operating income for the first quarter of 2005, including the $1.2 million restructuring charge, was $5.5 million compared to an operating loss of $4.5 million in the first quarter of last year, which included the $5.2 million restructuring charge in the year-ago period. The increase in operating income was largely due to improved performance at the Company's Facilities Services segment and its Mechanical Construction segment, as well as aggressive management of overhead expenses in virtually all areas. For the 2005 first quarter, selling, general and administrative expenses ("SG&A") totaled $93.4 million, or 8.5% of revenues, a decline of 7.1% compared to SG&A of $100.5 million, or 9.1% of revenues in the first quarter of 2004. As of March 31, 2005, contract backlog was $2.72 billion, compared to backlog of $2.75 billion at December 31, 2004 and $3.08 billion at March 31, 2004. The reduction in backlog relative to the year ago period is consistent with the Company's strategy to conserve capacity to service the recovering private sector marketplace. - MORE - EMCOR Announces 2005 First Quarter Results Page 2 Frank T. MacInnis, Chairman and CEO of EMCOR Group, stated, "As expected, the first quarter of 2005 saw the continuation of a gradual recovery in the markets we serve which, when combined with the actions we've taken within our organization, resulted in improved operating results across most of our operations. We saw solid improvement within our Mechanical segment, as well as improved results within our Facilities Services segment which continues to grow and gain share in the marketplace. We are also particularly pleased with our ongoing cost reduction initiatives, which resulted in a reduction in SG&A expenses of over 7% compared to year-ago levels." Mr. MacInnis continued, "In early 2004 we announced that EMCOR would begin a process of "rebalancing" our contract backlog by reducing our proportional exposure to public-sector projects and conserving capacity for private-sector work. Our efforts were successful; in succeeding quarters we dramatically reduced our activity in the institutional market, particularly K-through-12 educational projects, and the current quarter reflects a strong increase in "systems-rich" healthcare projects, a demographically-driven market in which we have a long history of success. We will continue to exercise the contract selectivity and bidding discipline that is necessary to gain access to markets offering the greatest margin opportunities, and we expect our operating results to reflect these efforts." Mr. MacInnis concluded, "As we enter a seasonally stronger period for our businesses, we are encouraged by the increased opportunities we are seeing in many of our markets. We are pleased with the improved performance of our operations, and expect to see a continuation of these trends as we move through the year. The markets we serve are continuing their gradual recovery, and as we move into the warmer months we are awaiting the return of higher-margin, small task discretionary projects that should become available. At this point, we continue to expect revenue in 2005 to be between $4.4 billion and $4.6 billion, and earnings per share for the year to be between $2.00 and $2.40." EMCOR Group, Inc. is a worldwide leader in mechanical and electrical construction services and facilities services. This press release and other press releases may be viewed at the Company's Web site at www.emcorgroup.com. EMCOR Group's first quarter conference call will be available live via Internet broadcast today, Thursday, April 28, at 10:30 AM Eastern Time. You can access the live call through the Home Page of the Company's Web site at www.emcorgroup.com. MORE - EMCOR Announces 2005 First Quarter Results Page 3 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's 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, project 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, increased competition, unfavorable labor productivity, 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 2004 Form 10-K, its Form 10-Q for the first quarter ended March 31, 2005, 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. -FINANCIAL TABLES FOLLOW- EMCOR GROUP, INC. FINANCIAL HIGHLIGHTS (In thousands, except share and per share information) (Unaudited) CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the Quarters Ended March 31, --------------------------- 2005 2004 ---- ---- Revenues $1,093,208 $1,109,086 Cost of sales 993,125 1,007,923 ---------- ---------- Gross profit 100,083 101,163 Selling, general and administrative expenses 93,384 100,533 Restructuring expenses 1,171 5,179 ---------- ---------- Operating income (loss) 5,528 (4,549) Interest expense, net (1,640) (1,678) Minority interest (865) (468) ---------- ---------- Income (loss) before income taxes 3,023 (6,695) Income tax provision (benefit) 1,110 (12,412) ---------- ---------- Net income $ 1,913 $ 5,717 ========== ========== Basic earnings per share $ 0.12 $ 0.38 ========== ========== Diluted earnings per share $ 0.12 $ 0.37 ========== ========== Weighted average shares of Common Stock outstanding: Basic 15,353,231 15,057,308 Diluted 15,699,488 15,462,941 EMCOR GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
March 31, 2005 December 31, (Unaudited) 2004 -------------- ------------ ASSETS Current assets: Cash and cash equivalents $ 69,272 $ 70,404 Accounts receivable, net 1,038,357 1,073,454 Costs and estimated earnings in excess of billings on uncompleted contracts 230,382 240,716 Inventories 9,359 10,580 Prepaid expenses and other 30,674 30,417 ---------- ---------- Total current assets 1,378,044 1,425,571 Investments, notes, and other long-term receivables 26,783 26,472 Property, plant & equipment, net 54,447 56,468 Goodwill 279,929 279,432 Identifiable intangible assets, net 17,921 18,782 Other assets 10,362 11,244 ---------- ---------- Total assets $1,767,486 $1,817,969 ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Borrowings under working capital credit line $ 82,400 $ 80,000 Current maturities of long-term debt and capital lease obligations 828 806 Accounts payable 427,667 467,415 Billings in excess of costs and estimated earnings on uncompleted contracts 351,827 359,667 Accrued payroll and benefits 129,578 138,771 Other accrued expenses and liabilities 112,604 115,714 ---------- ---------- Total current liabilities 1,104,904 1,162,373 Long-term debt and capital lease obligations 1,360 1,332 Other long-term obligations 96,788 91,903 Total stockholders' equity 564,434 562,361 ---------- ---------- Total liabilities and stockholders' equity $1,767,486 $1,817,969 ========== ==========
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