FORM 8-K |
Delaware | 1-8267 | 11-2125338 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
301 Merritt Seven, Norwalk, CT | 06851-1092 | |
(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) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) Exhibits | |
Exhibit Number | Description |
99.1 | Press Release issued by EMCOR Group, Inc. on October 29, 2015 disclosing results of operations for its fiscal 2015 third quarter ended September 30, 2015. |
EMCOR Group, Inc. | |||
Dated: October 29, 2015 | By: | /s/ ANTHONY J. GUZZI | |
Anthony J. Guzzi | |||
President and | |||
Chief Executive Officer |
EXHIBIT 99.1 |
FOR: | EMCOR GROUP, INC. | |
News Release | ||
CONTACT: | R. Kevin Matz Executive Vice President Shared Services (203) 849-7938 | |
FTI Consulting, Inc. Investors: Michelle Bitman (212) 850-5600 | ||
LAK Public Relations, Inc. Media: Lisa Linden / Mollie Fullington (212) 575-4545 / (917) 346-6123 |
EMCOR GROUP, INC. REPORTS THIRD QUARTER 2015 RESULTS |
- Record Quarterly Revenue of $1.70 Billion; 8.5% Increase Year-over-Year - |
- Total Backlog Increased 1.9% to $3.77 Billion - |
- 2015 Revenue Guidance Increased; 2015 EPS Guidance Range Narrowed - |
- Board Authorizes an Additional $200 Million Share Repurchase Program - |
EMCOR Reports Third Quarter Results | Page 2 |
EMCOR Reports Third Quarter Results | Page 3 |
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenues | $ | 1,699,128 | $ | 1,566,711 | $ | 4,940,900 | $ | 4,710,169 | ||||||||
Cost of sales | 1,463,726 | 1,344,482 | 4,249,042 | 4,051,496 | ||||||||||||
Gross profit | 235,402 | 222,229 | 691,858 | 658,673 | ||||||||||||
Selling, general and administrative expenses | 165,135 | 159,983 | 488,117 | 454,243 | ||||||||||||
Restructuring expenses | 301 | 398 | 742 | 799 | ||||||||||||
Gain on sale of building | — | 11,749 | — | 11,749 | ||||||||||||
Operating income | 69,966 | 73,597 | 202,999 | 215,380 | ||||||||||||
Interest expense | (2,226 | ) | (2,397 | ) | (6,650 | ) | (6,887 | ) | ||||||||
Interest income | 157 | 186 | 515 | 641 | ||||||||||||
Income from continuing operations before income taxes | 67,897 | 71,386 | 196,864 | 209,134 | ||||||||||||
Income tax provision | 25,720 | 23,998 | 74,672 | 75,428 | ||||||||||||
Income from continuing operations | 42,177 | 47,388 | 122,192 | 133,706 | ||||||||||||
Loss from discontinued operation, net of income taxes | (270 | ) | (611 | ) | (739 | ) | (4,087 | ) | ||||||||
Net income including noncontrolling interests | 41,907 | 46,777 | 121,453 | 129,619 | ||||||||||||
Less: Net income attributable to noncontrolling interests | (385 | ) | (1,753 | ) | (233 | ) | (3,421 | ) | ||||||||
Net income attributable to EMCOR Group, Inc. | $ | 41,522 | $ | 45,024 | $ | 121,220 | $ | 126,198 | ||||||||
Basic earnings (loss) per common share: | ||||||||||||||||
From continuing operations | $ | 0.66 | $ | 0.68 | $ | 1.94 | $ | 1.94 | ||||||||
From discontinued operation | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.06 | ) | ||||
Diluted earnings (loss) per common share: | ||||||||||||||||
From continuing operations | $ | 0.66 | $ | 0.68 | $ | 1.92 | $ | 1.92 | ||||||||
From discontinued operation | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.06 | ) | ||||
Weighted average shares of common stock outstanding: | ||||||||||||||||
Basic | 62,901,923 | 66,714,641 | 62,921,956 | 67,062,732 | ||||||||||||
Diluted | 63,392,483 | 67,417,547 | 63,443,027 | 67,802,606 | ||||||||||||
Dividends declared per common share | $ | 0.08 | $ | 0.08 | $ | 0.24 | $ | 0.24 |
September 30, 2015 (Unaudited) | December 31, 2014 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 445,400 | $ | 432,056 | ||||
Accounts receivable, net | 1,333,823 | 1,234,187 | ||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 128,828 | 103,201 | ||||||
Inventories | 47,843 | 46,854 | ||||||
Prepaid expenses and other | 59,252 | 70,305 | ||||||
Total current assets | 2,015,146 | 1,886,603 | ||||||
Investments, notes and other long-term receivables | 7,146 | 9,122 | ||||||
Property, plant & equipment, net | 117,039 | 122,178 | ||||||
Goodwill | 834,660 | 834,102 | ||||||
Identifiable intangible assets, net | 474,240 | 502,060 | ||||||
Other assets | 35,198 | 34,902 | ||||||
Total assets | $ | 3,483,429 | $ | 3,388,967 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Borrowings under revolving credit facility | $ | — | $ | — | ||||
Current maturities of long-term debt and capital lease obligations | 18,712 | 19,041 | ||||||
Accounts payable | 423,260 | 460,478 | ||||||
Billings in excess of costs and estimated earnings on uncompleted contracts | 389,727 | 368,555 | ||||||
Accrued payroll and benefits | 264,788 | 245,854 | ||||||
Other accrued expenses and liabilities | 212,743 | 189,489 | ||||||
Total current liabilities | 1,309,230 | 1,283,417 | ||||||
Long-term debt and capital lease obligations | 303,040 | 316,399 | ||||||
Other long-term obligations | 356,990 | 359,764 | ||||||
Total liabilities | 1,969,260 | 1,959,580 | ||||||
Equity: | ||||||||
Total EMCOR Group, Inc. stockholders’ equity | 1,510,312 | 1,416,013 | ||||||
Noncontrolling interests | 3,857 | 13,374 | ||||||
Total equity | 1,514,169 | 1,429,387 | ||||||
Total liabilities and equity | $ | 3,483,429 | $ | 3,388,967 |
2015 | 2014 | |||||||
Cash flows - operating activities: | ||||||||
Net income including noncontrolling interests | $ | 121,453 | $ | 129,619 | ||||
Depreciation and amortization | 26,806 | 27,211 | ||||||
Amortization of identifiable intangible assets | 28,391 | 28,497 | ||||||
Deferred income taxes | (3,598 | ) | 4,434 | |||||
Loss on sale of subsidiary | — | 608 | ||||||
Gain on sale of building | — | (11,749 | ) | |||||
Excess tax benefits from share-based compensation | (1,306 | ) | (5,886 | ) | ||||
Equity income from unconsolidated entities | (1,634 | ) | (1,349 | ) | ||||
Other non-cash items | 9,701 | 8,005 | ||||||
Distributions from unconsolidated entities | 3,316 | 1,640 | ||||||
Changes in operating assets and liabilities, excluding the effect of businesses acquired | (87,548 | ) | (72,036 | ) | ||||
Net cash provided by operating activities | 95,581 | 108,994 | ||||||
Cash flows - investing activities: | ||||||||
Payments for acquisitions of businesses, net of cash acquired | (2,357 | ) | — | |||||
Proceeds from sale of subsidiary | — | 1,108 | ||||||
Proceeds from sale of building | — | 11,885 | ||||||
Proceeds from sale of property, plant and equipment | 2,921 | 3,138 | ||||||
Purchase of property, plant and equipment | (22,862 | ) | (27,574 | ) | ||||
Investments in and advances to unconsolidated entities and joint ventures | — | (1,865 | ) | |||||
Net cash used in investing activities | (22,298 | ) | (13,308 | ) | ||||
Cash flows - financing activities: | ||||||||
Repayments of long-term debt | (13,136 | ) | (13,074 | ) | ||||
Repayments of capital lease obligations | (2,190 | ) | (1,272 | ) | ||||
Dividends paid to stockholders | (15,078 | ) | (16,109 | ) | ||||
Repurchase of common stock | (21,148 | ) | (76,395 | ) | ||||
Proceeds from exercise of stock options | 2,378 | 5,044 | ||||||
Payments to satisfy minimum tax withholding | (3,866 | ) | (1,481 | ) | ||||
Issuance of common stock under employee stock purchase plan | 3,147 | 2,677 | ||||||
Payments for contingent consideration arrangements | (403 | ) | — | |||||
Distributions to noncontrolling interests | (9,750 | ) | (2,750 | ) | ||||
Excess tax benefits from share-based compensation | 1,306 | 5,886 | ||||||
Net cash used in financing activities | (58,740 | ) | (97,474 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (1,199 | ) | (579 | ) | ||||
Increase (decrease) in cash and cash equivalents | 13,344 | (2,367 | ) | |||||
Cash and cash equivalents at beginning of year | 432,056 | 439,813 | ||||||
Cash and cash equivalents at end of period | $ | 445,400 | $ | 437,446 |
For the three months ended September 30, | ||||||||
2015 | 2014 | |||||||
Revenues from unrelated entities: | ||||||||
United States electrical construction and facilities services | $ | 344,389 | $ | 314,666 | ||||
United States mechanical construction and facilities services | 587,522 | 565,227 | ||||||
United States building services | 428,270 | 427,564 | ||||||
United States industrial services | 241,946 | 172,452 | ||||||
Total United States operations | 1,602,127 | 1,479,909 | ||||||
United Kingdom building services | 97,001 | 86,802 | ||||||
Total worldwide operations | $ | 1,699,128 | $ | 1,566,711 | ||||
For the nine months ended September 30, | ||||||||
2015 | 2014 | |||||||
Revenues from unrelated entities: | ||||||||
United States electrical construction and facilities services | $ | 1,009,585 | $ | 958,295 | ||||
United States mechanical construction and facilities services | 1,652,551 | 1,616,794 | ||||||
United States building services | 1,303,389 | 1,293,750 | ||||||
United States industrial services | 699,839 | 581,642 | ||||||
Total United States operations | 4,665,364 | 4,450,481 | ||||||
United Kingdom building services | 275,536 | 259,688 | ||||||
Total worldwide operations | $ | 4,940,900 | $ | 4,710,169 | ||||
For the three months ended September 30, | ||||||||
2015 | 2014 | |||||||
Operating income (loss): | ||||||||
United States electrical construction and facilities services | $ | 25,528 | $ | 20,666 | ||||
United States mechanical construction and facilities services | 26,926 | 30,206 | ||||||
United States building services | 16,027 | 19,388 | ||||||
United States industrial services | 14,340 | 7,385 | ||||||
Total United States operations | 82,821 | 77,645 | ||||||
United Kingdom building services | 3,358 | 3,082 | ||||||
Corporate administration | (15,912 | ) | (18,481 | ) | ||||
Restructuring expenses | (301 | ) | (398 | ) | ||||
Gain on sale of building | — | 11,749 | ||||||
Total worldwide operations | 69,966 | 73,597 | ||||||
Other corporate items: | ||||||||
Interest expense | (2,226 | ) | (2,397 | ) | ||||
Interest income | 157 | 186 | ||||||
Income from continuing operations before income taxes | $ | 67,897 | $ | 71,386 | ||||
For the nine months ended September 30, | ||||||||
2015 | 2014 | |||||||
Operating income (loss): | ||||||||
United States electrical construction and facilities services | $ | 67,479 | $ | 67,162 | ||||
United States mechanical construction and facilities services | 80,191 | 78,052 | ||||||
United States building services | 54,944 | 53,606 | ||||||
United States industrial services | 44,588 | 43,155 | ||||||
Total United States operations | 247,202 | 241,975 | ||||||
United Kingdom building services | 8,570 | 12,647 | ||||||
Corporate administration | (52,031 | ) | (50,192 | ) | ||||
Restructuring expenses | (742 | ) | (799 | ) | ||||
Gain on sale of building | — | 11,749 | ||||||
Total worldwide operations | 202,999 | 215,380 | ||||||
Other corporate items: | ||||||||
Interest expense | (6,650 | ) | (6,887 | ) | ||||
Interest income | 515 | 641 | ||||||
Income from continuing operations before income taxes | $ | 196,864 | $ | 209,134 | ||||
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
GAAP operating income | $ | 69,966 | $ | 73,597 | $ | 202,999 | $ | 215,380 | ||||||||
Gain on sale of building | — | (11,749 | ) | — | (11,749 | ) | ||||||||||
Non-GAAP operating income, excluding gain on sale of building | $ | 69,966 | $ | 61,848 | $ | 202,999 | $ | 203,631 |
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
GAAP net income from continuing operations attributable to EMCOR Group, Inc. (1) | $ | 41,792 | $ | 45,635 | $ | 121,959 | $ | 130,285 | ||||||||
Gain on sale of building (2) | — | (7,126 | ) | — | (7,126 | ) | ||||||||||
Non-GAAP net income attributable to EMCOR Group, Inc., excluding gain on sale of building | $ | 41,792 | $ | 38,509 | $ | 121,959 | $ | 123,159 |
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
GAAP diluted EPS from continuing operations | $ | 0.66 | $ | 0.68 | $ | 1.92 | $ | 1.92 | ||||||||
Gain on sale of building (1) | — | (0.11 | ) | — | (0.11 | ) | ||||||||||
Non-GAAP diluted earnings per common share, excluding gain on sale of building | $ | 0.66 | $ | 0.57 | $ | 1.92 | $ | 1.82 |
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