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 February 25, 2016 disclosing results of operations for its fiscal 2015 fourth quarter ended December 31, 2015. |
EMCOR Group, Inc. | |||
Dated: February 25, 2016 | 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: Effie Veres (212) 850-5600 | ||
LAK Public Relations, Inc. Media: Lisa Linden / Mollie Fullington (212) 575-4545 / (917) 346-6123 |
EMCOR GROUP, INC. REPORTS FOURTH QUARTER AND FULL YEAR 2015 RESULTS |
- Record Fourth Quarter Revenues of $1.78 Billion - |
- Record Fourth Quarter Operating Cash Flow of $171.1 Million - |
- Total Backlog of $3.77 Billion; 3.8% Increase Year-over-Year - |
- Announces 2016 Revenues and Diluted EPS Guidance - |
EMCOR Reports Fourth Quarter Results | Page 2 |
EMCOR Reports Fourth Quarter Results | Page 3 |
(Unaudited) | ||||||||||||||||
For the three months ended December 31, | For the twelve months ended December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenues | $ | 1,777,826 | $ | 1,714,796 | $ | 6,718,726 | $ | 6,424,965 | ||||||||
Cost of sales | 1,525,205 | 1,466,223 | 5,774,247 | 5,517,719 | ||||||||||||
Gross profit | 252,621 | 248,573 | 944,479 | 907,246 | ||||||||||||
Selling, general and administrative expenses | 168,456 | 172,235 | 656,573 | 626,478 | ||||||||||||
Restructuring expenses | 82 | 369 | 824 | 1,168 | ||||||||||||
Impairment loss of identifiable intangible assets | — | 1,471 | — | 1,471 | ||||||||||||
Gain on sale of building | — | — | — | 11,749 | ||||||||||||
Operating income | 84,083 | 74,498 | 287,082 | 289,878 | ||||||||||||
Interest expense | (2,282 | ) | (2,188 | ) | (8,932 | ) | (9,075 | ) | ||||||||
Interest income | 158 | 201 | 673 | 842 | ||||||||||||
Income from continuing operations before income taxes | 81,959 | 72,511 | 278,823 | 281,645 | ||||||||||||
Income tax provision | 31,584 | 28,100 | 106,256 | 103,528 | ||||||||||||
Income from continuing operations | 50,375 | 44,411 | 172,567 | 178,117 | ||||||||||||
Income (loss) from discontinued operation, net of income taxes | 679 | (603 | ) | (60 | ) | (4,690 | ) | |||||||||
Net income including noncontrolling interests | 51,054 | 43,808 | 172,507 | 173,427 | ||||||||||||
Less: Net loss (income) attributable to noncontrolling interests | 12 | (1,342 | ) | (221 | ) | (4,763 | ) | |||||||||
Net income attributable to EMCOR Group, Inc. | $ | 51,066 | $ | 42,466 | $ | 172,286 | $ | 168,664 | ||||||||
Basic earnings (loss) per common share: | ||||||||||||||||
From continuing operations | $ | 0.81 | $ | 0.67 | $ | 2.74 | $ | 2.61 | ||||||||
From discontinued operation | $ | 0.01 | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.07 | ) | |||||
Diluted earnings (loss) per common share: | ||||||||||||||||
From continuing operations | $ | 0.80 | $ | 0.66 | $ | 2.72 | $ | 2.59 | ||||||||
From discontinued operation | $ | 0.01 | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.07 | ) | |||||
Weighted average shares of common stock outstanding: | ||||||||||||||||
Basic | 62,398,915 | 64,185,026 | 62,789,120 | 66,331,886 | ||||||||||||
Diluted | 62,909,269 | 64,887,897 | 63,307,512 | 67,062,509 | ||||||||||||
Dividends declared per common share | $ | 0.08 | $ | 0.08 | $ | 0.32 | $ | 0.32 |
December 31, 2015 | December 31, 2014 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 486,831 | $ | 432,056 | ||||
Accounts receivable, net | 1,359,862 | 1,234,187 | ||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 117,734 | 103,201 | ||||||
Inventories | 37,545 | 46,854 | ||||||
Prepaid expenses and other | 65,447 | 70,305 | ||||||
Total current assets | 2,067,419 | 1,886,603 | ||||||
Investments, notes and other long-term receivables | 8,359 | 9,122 | ||||||
Property, plant & equipment, net | 122,018 | 122,178 | ||||||
Goodwill | 843,170 | 834,102 | ||||||
Identifiable intangible assets, net | 472,834 | 502,060 | ||||||
Other assets | 32,670 | 34,902 | ||||||
Total assets | $ | 3,546,470 | $ | 3,388,967 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Borrowings under revolving credit facility | $ | — | $ | — | ||||
Current maturities of long-term debt and capital lease obligations | 18,848 | 19,041 | ||||||
Accounts payable | 488,251 | 460,478 | ||||||
Billings in excess of costs and estimated earnings on uncompleted contracts | 429,235 | 368,555 | ||||||
Accrued payroll and benefits | 268,033 | 245,854 | ||||||
Other accrued expenses and liabilities | 209,361 | 189,489 | ||||||
Total current liabilities | 1,413,728 | 1,283,417 | ||||||
Long-term debt and capital lease obligations | 300,065 | 316,399 | ||||||
Other long-term obligations | 352,621 | 359,764 | ||||||
Total liabilities | 2,066,414 | 1,959,580 | ||||||
Equity: | ||||||||
Total EMCOR Group, Inc. stockholders’ equity | 1,476,711 | 1,416,013 | ||||||
Noncontrolling interests | 3,345 | 13,374 | ||||||
Total equity | 1,480,056 | 1,429,387 | ||||||
Total liabilities and equity | $ | 3,546,470 | $ | 3,388,967 |
2015 | 2014 | |||||||
Cash flows - operating activities: | ||||||||
Net income including noncontrolling interests | $ | 172,507 | $ | 173,427 | ||||
Depreciation and amortization | 36,294 | 36,524 | ||||||
Amortization of identifiable intangible assets | 37,895 | 37,966 | ||||||
Deferred income taxes | (10,300 | ) | 5,748 | |||||
Loss on sale of subsidiary | — | 608 | ||||||
Gain on sale of building | — | (11,749 | ) | |||||
Excess tax benefits from share-based compensation | (1,663 | ) | (8,264 | ) | ||||
Equity income from unconsolidated entities | (2,883 | ) | (1,440 | ) | ||||
Non-cash expense for impairment of identifiable intangible assets | — | 1,471 | ||||||
Other non-cash items | 11,932 | 10,175 | ||||||
Distributions from unconsolidated entities | 3,352 | 1,767 | ||||||
Changes in operating assets and liabilities, excluding the effect of businesses acquired | 19,532 | 424 | ||||||
Net cash provided by operating activities | 266,666 | 246,657 | ||||||
Cash flows - investing activities: | ||||||||
Payments for acquisitions of businesses, net of cash acquired | (28,195 | ) | — | |||||
Proceeds from sale of subsidiary | — | 1,108 | ||||||
Proceeds from sale of building | — | 11,885 | ||||||
Proceeds from sale of property, plant and equipment | 3,847 | 7,239 | ||||||
Purchase of property, plant and equipment | (35,460 | ) | (38,035 | ) | ||||
Investments in and advances to unconsolidated entities and joint ventures | — | (3,865 | ) | |||||
Net cash used in investing activities | (59,808 | ) | (21,668 | ) | ||||
Cash flows - financing activities: | ||||||||
Repayments of long-term debt | (17,514 | ) | (17,454 | ) | ||||
Repayments of capital lease obligations | (2,737 | ) | (1,715 | ) | ||||
Dividends paid to stockholders | (20,095 | ) | (21,293 | ) | ||||
Repurchase of common stock | (104,330 | ) | (201,994 | ) | ||||
Proceeds from exercise of stock options | 3,836 | 6,858 | ||||||
Payments to satisfy minimum tax withholding | (3,866 | ) | (1,481 | ) | ||||
Issuance of common stock under employee stock purchase plan | 4,223 | 3,615 | ||||||
Payments for contingent consideration arrangements | (403 | ) | — | |||||
Distributions to noncontrolling interests | (10,250 | ) | (4,750 | ) | ||||
Excess tax benefits from share-based compensation | 1,663 | 8,264 | ||||||
Net cash used in financing activities | (149,473 | ) | (229,950 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (2,610 | ) | (2,796 | ) | ||||
Increase (decrease) in cash and cash equivalents | 54,775 | (7,757 | ) | |||||
Cash and cash equivalents at beginning of year | 432,056 | 439,813 | ||||||
Cash and cash equivalents at end of period | $ | 486,831 | $ | 432,056 |
(Unaudited) | ||||||||
For the three months ended December 31, | ||||||||
2015 | 2014 | |||||||
Revenues from unrelated entities: | ||||||||
United States electrical construction and facilities services | $ | 357,557 | $ | 353,693 | ||||
United States mechanical construction and facilities services | 660,212 | 584,418 | ||||||
United States building services | 435,870 | 427,591 | ||||||
United States industrial services | 222,246 | 258,338 | ||||||
Total United States operations | 1,675,885 | 1,624,040 | ||||||
United Kingdom building services | 101,941 | 90,756 | ||||||
Total worldwide operations | $ | 1,777,826 | $ | 1,714,796 | ||||
For the twelve months ended December 31, | ||||||||
2015 | 2014 | |||||||
Revenues from unrelated entities: | ||||||||
United States electrical construction and facilities services | $ | 1,367,142 | $ | 1,311,988 | ||||
United States mechanical construction and facilities services | 2,312,763 | 2,201,212 | ||||||
United States building services | 1,739,259 | 1,721,341 | ||||||
United States industrial services | 922,085 | 839,980 | ||||||
Total United States operations | 6,341,249 | 6,074,521 | ||||||
United Kingdom building services | 377,477 | 350,444 | ||||||
Total worldwide operations | $ | 6,718,726 | $ | 6,424,965 |
(Unaudited) | ||||||||
For the three months ended December 31, | ||||||||
2015 | 2014 | |||||||
Operating income (loss): | ||||||||
United States electrical construction and facilities services | $ | 14,746 | $ | 23,711 | ||||
United States mechanical construction and facilities services | 58,497 | 36,366 | ||||||
United States building services | 15,588 | 12,279 | ||||||
United States industrial services | 11,881 | 20,004 | ||||||
Total United States operations | 100,712 | 92,360 | ||||||
United Kingdom building services | 3,064 | 2,364 | ||||||
Corporate administration | (19,611 | ) | (18,386 | ) | ||||
Restructuring expenses | (82 | ) | (369 | ) | ||||
Impairment loss on identifiable intangible assets | — | (1,471 | ) | |||||
Gain on sale of building | — | — | ||||||
Total worldwide operations | 84,083 | 74,498 | ||||||
Other corporate items: | ||||||||
Interest expense | (2,282 | ) | (2,188 | ) | ||||
Interest income | 158 | 201 | ||||||
Income from continuing operations before income taxes | $ | 81,959 | $ | 72,511 | ||||
For the twelve months ended December 31, | ||||||||
2015 | 2014 | |||||||
Operating income (loss): | ||||||||
United States electrical construction and facilities services | $ | 82,225 | $ | 90,873 | ||||
United States mechanical construction and facilities services | 138,688 | 114,418 | ||||||
United States building services | 70,532 | 65,885 | ||||||
United States industrial services | 56,469 | 63,159 | ||||||
Total United States operations | 347,914 | 334,335 | ||||||
United Kingdom building services | 11,634 | 15,011 | ||||||
Corporate administration | (71,642 | ) | (68,578 | ) | ||||
Restructuring expenses | (824 | ) | (1,168 | ) | ||||
Impairment loss on identifiable intangible assets | — | (1,471 | ) | |||||
Gain on sale of building | — | 11,749 | ||||||
Total worldwide operations | 287,082 | 289,878 | ||||||
Other corporate items: | ||||||||
Interest expense | (8,932 | ) | (9,075 | ) | ||||
Interest income | 673 | 842 | ||||||
Income from continuing operations before income taxes | $ | 278,823 | $ | 281,645 |
For the three months ended December 31, | For the twelve months ended December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
GAAP operating income | $ | 84,083 | $ | 74,498 | $ | 287,082 | $ | 289,878 | ||||||||
Impairment loss on identifiable intangible assets | — | 1,471 | — | 1,471 | ||||||||||||
Gain on sale of building | — | — | — | (11,749 | ) | |||||||||||
Non-GAAP operating income, excluding impairment loss and gain on sale of building | $ | 84,083 | $ | 75,969 | $ | 287,082 | $ | 279,600 |
For the three months ended December 31, | For the twelve months ended December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
GAAP net income from continuing operations attributable to EMCOR Group, Inc.(1) | $ | 50,387 | $ | 43,069 | $ | 172,346 | $ | 173,354 | ||||||||
Impairment loss on identifiable intangible assets (2) | — | 892 | — | 892 | ||||||||||||
Gain on sale of building (3) | — | — | — | (7,126 | ) | |||||||||||
Non-GAAP net income attributable to EMCOR Group, Inc., excluding impairment loss and gain on sale of building | $ | 50,387 | $ | 43,961 | $ | 172,346 | $ | 167,120 |
For the three months ended December 31, | For the twelve months ended December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
GAAP diluted earnings per common share from continuing operations | $ | 0.80 | $ | 0.66 | $ | 2.72 | $ | 2.59 | ||||||||
Impairment loss on identifiable intangible assets (1) | — | 0.01 | — | 0.01 | ||||||||||||
Gain on sale of building (2) | — | — | — | (0.11 | ) | |||||||||||
Non-GAAP diluted earnings per common share, excluding impairment loss and gain on sale of building | $ | 0.80 | $ | 0.68 | $ | 2.72 | $ | 2.49 |
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