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 July 28, 2016 disclosing results of operations for its fiscal 2016 second quarter ended June 30, 2016. |
EMCOR Group, Inc. | |||
Dated: July 28, 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 SECOND QUARTER RESULTS |
- Record Quarterly Revenues of $1.93 Billion, 17.0% Increase Year-over-Year - |
- Record Quarterly Diluted EPS from Continuing Operations of $0.92 - |
- Total Backlog of $3.81 Billion; 5.1% Increase Year-over-Year - |
- Increases 2016 Revenue Guidance and Diluted EPS Guidance Range - |
EMCOR Reports Second Quarter Results | Page 2 |
EMCOR Reports Second Quarter Results | Page 3 |
EMCOR Reports Second Quarter Results | Page 4 |
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Revenues | $ | 1,933,416 | $ | 1,652,585 | $ | 3,678,386 | $ | 3,241,772 | ||||||||
Cost of sales | 1,658,675 | 1,413,058 | 3,180,537 | 2,785,316 | ||||||||||||
Gross profit | 274,741 | 239,527 | 497,849 | 456,456 | ||||||||||||
Selling, general and administrative expenses | 181,811 | 161,391 | 349,213 | 322,982 | ||||||||||||
Restructuring expenses | 641 | 433 | 732 | 441 | ||||||||||||
Operating income | 92,289 | 77,703 | 147,904 | 133,033 | ||||||||||||
Interest expense | (3,118 | ) | (2,208 | ) | (5,494 | ) | (4,424 | ) | ||||||||
Interest income | 192 | 182 | 357 | 358 | ||||||||||||
Income from continuing operations before income taxes | 89,363 | 75,677 | 142,767 | 128,967 | ||||||||||||
Income tax provision | 32,911 | 28,727 | 51,880 | 48,952 | ||||||||||||
Income from continuing operations | 56,452 | 46,950 | 90,887 | 80,015 | ||||||||||||
Loss from discontinued operation, net of income taxes | (1,097 | ) | (114 | ) | (1,178 | ) | (469 | ) | ||||||||
Net income including noncontrolling interests | 55,355 | 46,836 | 89,709 | 79,546 | ||||||||||||
Less: Net loss attributable to noncontrolling interests | 25 | 13 | 19 | 152 | ||||||||||||
Net income attributable to EMCOR Group, Inc. | $ | 55,380 | $ | 46,849 | $ | 89,728 | $ | 79,698 | ||||||||
Basic earnings (loss) per common share: | ||||||||||||||||
From continuing operations | $ | 0.93 | $ | 0.75 | $ | 1.49 | $ | 1.27 | ||||||||
From discontinued operation | $ | (0.02 | ) | $ | (0.00 | ) | $ | (0.02 | ) | $ | (0.01 | ) | ||||
Diluted earnings (loss) per common share: | ||||||||||||||||
From continuing operations | $ | 0.92 | $ | 0.74 | $ | 1.48 | $ | 1.26 | ||||||||
From discontinued operation | $ | (0.02 | ) | $ | (0.00 | ) | $ | (0.02 | ) | $ | (0.01 | ) | ||||
Weighted average shares of common stock outstanding: | ||||||||||||||||
Basic | 60,808,502 | 62,809,699 | 60,854,781 | 62,932,295 | ||||||||||||
Diluted | 61,204,221 | 63,330,253 | 61,276,278 | 63,468,622 | ||||||||||||
Dividends declared per common share | $ | 0.08 | $ | 0.08 | $ | 0.16 | $ | 0.16 |
June 30, 2016 (Unaudited) | December 31, 2015 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 443,019 | $ | 486,831 | ||||
Accounts receivable, net | 1,448,323 | 1,359,862 | ||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 139,906 | 117,734 | ||||||
Inventories | 41,946 | 37,545 | ||||||
Prepaid expenses and other | 68,714 | 64,140 | ||||||
Total current assets | 2,141,908 | 2,066,112 | ||||||
Investments, notes and other long-term receivables | 7,668 | 8,359 | ||||||
Property, plant & equipment, net | 128,376 | 122,018 | ||||||
Goodwill | 979,339 | 843,170 | ||||||
Identifiable intangible assets, net | 510,723 | 472,834 | ||||||
Other assets | 32,352 | 30,164 | ||||||
Total assets | $ | 3,800,366 | $ | 3,542,657 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Current maturities of long-term debt and capital lease obligations | $ | 17,354 | $ | 17,541 | ||||
Accounts payable | 450,646 | 488,251 | ||||||
Billings in excess of costs and estimated earnings on uncompleted contracts | 465,135 | 429,235 | ||||||
Accrued payroll and benefits | 268,710 | 268,033 | ||||||
Other accrued expenses and liabilities | 190,816 | 209,361 | ||||||
Total current liabilities | 1,392,661 | 1,412,421 | ||||||
Borrowings under revolving credit facility | 220,000 | — | ||||||
Long-term debt and capital lease obligations | 289,841 | 297,559 | ||||||
Other long-term obligations | 361,365 | 352,621 | ||||||
Total liabilities | 2,263,867 | 2,062,601 | ||||||
Equity: | ||||||||
Total EMCOR Group, Inc. stockholders’ equity | 1,535,223 | 1,476,711 | ||||||
Noncontrolling interests | 1,276 | 3,345 | ||||||
Total equity | 1,536,499 | 1,480,056 | ||||||
Total liabilities and equity | $ | 3,800,366 | $ | 3,542,657 |
2016 | 2015 | |||||||
Cash flows - operating activities: | ||||||||
Net income including noncontrolling interests | $ | 89,709 | $ | 79,546 | ||||
Depreciation and amortization | 19,265 | 17,942 | ||||||
Amortization of identifiable intangible assets | 20,011 | 18,951 | ||||||
Provision for doubtful accounts | 4,478 | 477 | ||||||
Deferred income taxes | 1,734 | 1,406 | ||||||
Excess tax benefits from share-based compensation | (1,818 | ) | (1,038 | ) | ||||
Equity income from unconsolidated entities | (160 | ) | (1,034 | ) | ||||
Other non-cash items | 5,565 | 5,237 | ||||||
Distributions from unconsolidated entities | 863 | 3,316 | ||||||
Changes in operating assets and liabilities, excluding the effect of businesses acquired | (91,862 | ) | (130,869 | ) | ||||
Net cash provided by (used in) operating activities | 47,785 | (6,066 | ) | |||||
Cash flows - investing activities: | ||||||||
Payments for acquisitions of businesses, net of cash acquired | (232,283 | ) | (1,176 | ) | ||||
Proceeds from sale of property, plant and equipment | 909 | 2,569 | ||||||
Purchase of property, plant and equipment | (18,950 | ) | (15,793 | ) | ||||
Net cash used in investing activities | (250,324 | ) | (14,400 | ) | ||||
Cash flows - financing activities: | ||||||||
Proceeds from revolving credit facility | 220,000 | — | ||||||
Repayments of long-term debt | (8,756 | ) | (8,758 | ) | ||||
Repayments of capital lease obligations | (816 | ) | (1,330 | ) | ||||
Dividends paid to stockholders | (9,734 | ) | (10,054 | ) | ||||
Repurchase of common stock | (34,074 | ) | (21,148 | ) | ||||
Proceeds from exercise of stock options | 144 | 1,368 | ||||||
Payments to satisfy minimum tax withholding | (4,111 | ) | (3,790 | ) | ||||
Issuance of common stock under employee stock purchase plan | 2,383 | 2,051 | ||||||
Payments for contingent consideration arrangements | — | (403 | ) | |||||
Distributions to noncontrolling interests | (2,050 | ) | (9,750 | ) | ||||
Excess tax benefits from share-based compensation | — | 1,038 | ||||||
Net cash provided by (used in) financing activities | 162,986 | (50,776 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | (4,259 | ) | 35 | |||||
Decrease in cash and cash equivalents | (43,812 | ) | (71,207 | ) | ||||
Cash and cash equivalents at beginning of year | 486,831 | 432,056 | ||||||
Cash and cash equivalents at end of period | $ | 443,019 | $ | 360,849 |
For the three months ended June 30, | ||||||||
2016 | 2015 | |||||||
Revenues from unrelated entities: | ||||||||
United States electrical construction and facilities services | $ | 420,632 | $ | 346,202 | ||||
United States mechanical construction and facilities services | 629,895 | 554,003 | ||||||
United States building services | 458,797 | 435,627 | ||||||
United States industrial services | 333,508 | 225,168 | ||||||
Total United States operations | 1,842,832 | 1,561,000 | ||||||
United Kingdom building services | 90,584 | 91,585 | ||||||
Total worldwide operations | $ | 1,933,416 | $ | 1,652,585 | ||||
For the six months ended June 30, | ||||||||
2016 | 2015 | |||||||
Revenues from unrelated entities: | ||||||||
United States electrical construction and facilities services | $ | 768,921 | $ | 665,196 | ||||
United States mechanical construction and facilities services | 1,241,785 | 1,065,029 | ||||||
United States building services | 898,448 | 875,119 | ||||||
United States industrial services | 591,012 | 457,893 | ||||||
Total United States operations | 3,500,166 | 3,063,237 | ||||||
United Kingdom building services | 178,220 | 178,535 | ||||||
Total worldwide operations | $ | 3,678,386 | $ | 3,241,772 | ||||
For the three months ended June 30, | ||||||||
2016 | 2015 | |||||||
Operating income (loss): | ||||||||
United States electrical construction and facilities services | $ | 23,011 | $ | 25,277 | ||||
United States mechanical construction and facilities services | 38,180 | 32,364 | ||||||
United States building services | 18,291 | 17,939 | ||||||
United States industrial services | 33,148 | 17,415 | ||||||
Total United States operations | 112,630 | 92,995 | ||||||
United Kingdom building services | 3,258 | 2,834 | ||||||
Corporate administration | (22,958 | ) | (17,693 | ) | ||||
Restructuring expenses | (641 | ) | (433 | ) | ||||
Total worldwide operations | 92,289 | 77,703 | ||||||
Other corporate items: | ||||||||
Interest expense | (3,118 | ) | (2,208 | ) | ||||
Interest income | 192 | 182 | ||||||
Income from continuing operations before income taxes | $ | 89,363 | $ | 75,677 | ||||
For the six months ended June 30, | ||||||||
2016 | 2015 | |||||||
Operating income (loss): | ||||||||
United States electrical construction and facilities services | $ | 39,718 | $ | 41,951 | ||||
United States mechanical construction and facilities services | 62,057 | 53,265 | ||||||
United States building services | 32,193 | 38,917 | ||||||
United States industrial services | 52,014 | 30,248 | ||||||
Total United States operations | 185,982 | 164,381 | ||||||
United Kingdom building services | 6,569 | 5,212 | ||||||
Corporate administration | (43,915 | ) | (36,119 | ) | ||||
Restructuring expenses | (732 | ) | (441 | ) | ||||
Total worldwide operations | 147,904 | 133,033 | ||||||
Other corporate items: | ||||||||
Interest expense | (5,494 | ) | (4,424 | ) | ||||
Interest income | 357 | 358 | ||||||
Income from continuing operations before income taxes | $ | 142,767 | $ | 128,967 | ||||
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
GAAP operating income | $ | 92,289 | $ | 77,703 | $ | 147,904 | $ | 133,033 | ||||||||
Transaction expenses related to the acquisition of Ardent | 2,757 | — | 3,838 | — | ||||||||||||
Non-GAAP operating income, excluding Ardent transaction expenses | $ | 95,046 | $ | 77,703 | $ | 151,742 | $ | 133,033 |
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
GAAP net income from continuing operations attributable to EMCOR Group, Inc. (1) | $ | 56,477 | $ | 46,963 | $ | 90,906 | $ | 80,167 | ||||||||
Transaction expenses related to the acquisition of Ardent (2) | 1,672 | — | 2,328 | — | ||||||||||||
Non-GAAP net income from continuing operations attributable to EMCOR Group, Inc., excluding Ardent transaction expenses | $ | 58,149 | $ | 46,963 | $ | 93,234 | $ | 80,167 |
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
GAAP diluted earnings per common share from continuing operations | $ | 0.92 | $ | 0.74 | $ | 1.48 | $ | 1.26 | ||||||||
Transaction expenses related to the acquisition of Ardent (1) | 0.03 | — | 0.04 | — | ||||||||||||
Non-GAAP diluted earnings per common share from continuing operations, excluding Ardent transaction expenses | $ | 0.95 | $ | 0.74 | $ | 1.52 | $ | 1.26 |
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