EX-99.1 2 exhibit99-1.htm FIRST QUARTER 2011 PRESS RELEASE exhibit99-1.htm
 
EXHIBIT 99.1 
EMCOR Group, Inc. Logo

FOR:
 
EMCOR GROUP, INC.
     
CONTACT:
 
R. Kevin Matz
Executive Vice President
Shared Services
(203) 849-7938
     
   
FD
Investors: Eric Boyriven / Alexandra Tramont
(212) 850-5600
     
   
Linden Alschuler & Kaplan, Inc.
Media: Lisa Linden / Mollie Fullington
212-575-4545 / 917-346-6123

EMCOR GROUP, INC. REPORTS FIRST QUARTER 2011 RESULTS
 
- Revenues Increase 8.3% to $1.31 Billion
- First Quarter Diluted Earnings Per Share of $0.36 -
- Backlog Increases 8.5% Year Over Year to $3.57 Billion -


NORWALK, CONNECTICUT, April 28, 2011 – EMCOR Group, Inc. (NYSE: EME) today reported results for the first quarter ended March 31, 2011.

Net income for the first quarter of 2011 increased 12.7% to $24.6 million, or $0.36 per diluted share, from $21.8 million, or $0.32 per diluted share, in the first quarter of 2010.  Revenues for the first quarter of 2011 were $1.31 billion, an 8.3% increase over revenues of $1.21 billion in the 2010 first quarter.  Organic growth in the quarter was 2.9%.

For the first quarter of 2011, operating income was $42.3 million, or 3.2% of revenues, and includes restructuring expenses of $1.0 million.  Operating income for the first quarter of 2010 was $42.3 million, or 3.5% of revenues.  Selling, general and administrative expenses (SG&A) decreased $3.1 million to $119.7 million, or 9.1% of revenues, in the first quarter of 2011, compared to $122.8 million, or 10.1% of revenues, in the first quarter of 2010.

Backlog as of March 31, 2011 was $3.57 billion, compared to backlog of $3.42 billion at the end of the fourth quarter of 2010 and $3.29 billion at March 31, 2010.  The Company’s backlog reflects the contributions of acquired companies, as well as continued improvement in demand across most of the Company’s sectors.  The Company’s current backlog represents the highest quarterly backlog level since the first quarter of 2009 and continues the recent trend where the organic book-to-bill ratio was at least 1.0.
 
Tony Guzzi, President and Chief Executive Officer of EMCOR Group, commented, “The 2011 first quarter was a solid start to the year.  We executed well in a challenging environment and the result was solid financial performance.”
 

 
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 EMCOR Reports First Quarter Results  Page 2
 
 
Mr. Guzzi continued, “Our results for the quarter were driven by superior performance of our large construction projects, as well as a recovery in demand for our services in the refinery sector.  We also continue to benefit from our expense control efforts, as SG&A declined on both a relative and absolute basis despite the increase in expense from acquisitions.  These factors more than offset conditions in the markets for our small project work that remain challenging as a result of keen competitive pricing.  On balance, however, the Company is performing largely as we expected it would at this point in the cycle.”

Mr. Guzzi concluded, “As we look ahead to the rest of 2011, we continue to see some benefit from pre-recessionary projects and the Company remains positioned to leverage opportunities for growth as our markets continue to recover.  The growth in demand from the refining sector has continued and, more broadly, we are increasing our backlog as customers have begun to gradually put their capital to work in many of the market sectors we serve.  However, the economy remains uncertain in which all macroeconomic factors are still not positively aligned and may affect the timing and pace of a recovery thus impacting demand for our services.  Overall, we are very pleased with our positioning and progress to date and look forward to continued execution across all of our businesses, and we believe our reduced cost structure will serve us well as markets improve.”

The Company noted that, based on the current size and mix of its backlog and assuming a continuation of existing market conditions, it continues to expect to generate revenues in 2011 of approximately $5.3 - $5.5 billion, and diluted earnings per share for 2011 of $1.45 to $1.85.

EMCOR Group, Inc. is a Fortune 500â worldwide leader in mechanical and electrical construction services, energy infrastructure 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 Daylight Time.  You can access the live call through the Home Page of the Company’s Web site 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 2010 Form 10-K, its Form 10-Q for the first quarter ended March 31, 2011, 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.


 
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EMCOR GROUP, INC.
FINANCIAL HIGHLIGHTS
(In thousands, except share and per share information)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


   
(Unaudited)
For the Three Months Ended
March 31,
 
   
2011
   
2010
 
             
Revenues
  $ 1,312,231     $ 1,212,212  
Cost of sales
    1,149,261       1,047,096  
Gross profit
    162,970       165,116  
Selling, general and administrative expenses
    119,671       122,797  
Restructuring expenses
    961        
                 
Operating income
    42,338       42,319  
Interest expense, net
    2,184       2,391  
                 
Income before income taxes
    40,154       39,928  
Income tax provision
    14,778       17,511  
                 
Net income including noncontrolling interests
    25,376       22,417  
Less: Net income attributable to noncontrolling interests
    782       600  
                 
Net income attributable to EMCOR Group, Inc.
  $ 24,594     $ 21,817  
                 
Basic earnings per common share:
               
                 
Net income attributable to EMCOR Group, Inc. common stockholders
  $ 0.37     $ 0.33  
                 
Diluted earnings per common share:
               
                 
Net income attributable to EMCOR Group, Inc. common stockholders
  $ 0.36     $ 0.32  
                 
Weighted average shares of common stock outstanding:
               
Basic
    66,808,867       66,316,105  
Diluted
    68,581,276       67,898,224  
 
 
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EMCOR GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

   
(Unaudited)
March 31,
2011
   
Dec. 31,
2010
 
ASSETS
           
Current assets:
           
Cash and cash equivalents
  $ 631,984     $ 710,836  
Accounts receivable, net
    1,103,195       1,090,927  
Costs and estimated earnings in excel of billings on uncompleted contracts
    111,858       88,253  
Inventories
    38,035       32,778  
Prepaid expenses and other
    56,799       57,373  
Total current assets
    1,941,871       1,980,167  
                 
Investments, notes and other long-term receivables
    5,767       6,211  
Property, plant & equipment, net
    88,549       88,615  
Goodwill
    426,688       406,804  
Identifiable intangible assets, net
    259,401       245,089  
Other assets
    27,737       28,656  
Total assets
  $ 2,750,013     $ 2,755,542  
                 
LIABILITIES AND EQUITY
               
Current liabilities
               
Borrowings under revolving credit facility
  $     $  
Current maturities of long-term debt and capital lease obligations
    478       489  
Accounts payable
    392,524       416,715  
Billings in excess of costs and estimated earnings on uncompleted contracts
    458,405       456,690  
Accrued payroll and benefits
    164,141       192,407  
Other accrued expenses and liabilities
    171,906       166,398  
Total current liabilities
    1,187,454       1,232,699  
                 
Borrowings under revolving credit facility
    150,000       150,000  
Long-term debt and capital lease obligations
    1,426       1,184  
Other long-term obligations
    217,623       208,814  
Total liabilities
    1,556,503       1,592,697  
                 
Equity:
               
Total EMCOR Group, Inc. stockholders’ equity
    1,182,826       1,152,943  
Noncontrolling interests
    10,684       9,902  
Total equity
    1,193,510       1,162,845  
Total liabilities and equity
  $ 2,750,013     $ 2,755,542  

 
 
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