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)) |
Emerging growth company | o |
(d) Exhibits | |
Exhibit Number | Description |
99.1 |
EMCOR Group, Inc. | |||
Dated: July 27, 2017 | 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 / David Simpson (212) 575-4545 |
EMCOR GROUP, INC. REPORTS SECOND QUARTER 2017 RESULTS |
- Record Second Quarter Diluted EPS from Continuing Operations of $0.95 - |
- Total Backlog of $4.10 Billion; 7.6% Increase Year-over-Year - |
- Year-To-Date Operating Cash Flow of $103 Million; 115% Increase Year-over-Year - |
- Raises 2017 Revenue Guidance and Diluted EPS Guidance Range - |
EMCOR Reports Second Quarter Results | Page 2 |
EMCOR Reports Second Quarter Results | Page 3 |
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenues | $ | 1,895,937 | $ | 1,933,416 | $ | 3,787,669 | $ | 3,678,386 | ||||||||
Cost of sales | 1,621,436 | 1,658,675 | 3,246,828 | 3,180,537 | ||||||||||||
Gross profit | 274,501 | 274,741 | 540,841 | 497,849 | ||||||||||||
Selling, general and administrative expenses | 181,337 | 181,811 | 364,338 | 349,213 | ||||||||||||
Restructuring expenses | 343 | 641 | 908 | 732 | ||||||||||||
Operating income | 92,821 | 92,289 | 175,595 | 147,904 | ||||||||||||
Interest expense | (3,069 | ) | (3,118 | ) | (6,140 | ) | (5,494 | ) | ||||||||
Interest income | 73 | 192 | 330 | 357 | ||||||||||||
Income from continuing operations before income taxes | 89,825 | 89,363 | 169,785 | 142,767 | ||||||||||||
Income tax provision | 33,019 | 32,911 | 59,865 | 51,880 | ||||||||||||
Income from continuing operations | 56,806 | 56,452 | 109,920 | 90,887 | ||||||||||||
Loss from discontinued operation, net of income taxes | (18 | ) | (1,097 | ) | (522 | ) | (1,178 | ) | ||||||||
Net income including noncontrolling interests | 56,788 | 55,355 | 109,398 | 89,709 | ||||||||||||
Less: Net (income) loss attributable to noncontrolling interests | (30 | ) | 25 | — | 19 | |||||||||||
Net income attributable to EMCOR Group, Inc. | $ | 56,758 | $ | 55,380 | $ | 109,398 | $ | 89,728 | ||||||||
Basic earnings (loss) per common share: | ||||||||||||||||
From continuing operations | $ | 0.96 | $ | 0.93 | $ | 1.85 | $ | 1.49 | ||||||||
From discontinued operation | $ | (0.00 | ) | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.02 | ) | ||||
Diluted earnings (loss) per common share: | ||||||||||||||||
From continuing operations | $ | 0.95 | $ | 0.92 | $ | 1.84 | $ | 1.48 | ||||||||
From discontinued operation | $ | (0.00 | ) | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.02 | ) | ||||
Weighted average shares of common stock outstanding: | ||||||||||||||||
Basic | 59,290,420 | 60,808,502 | 59,527,863 | 60,854,781 | ||||||||||||
Diluted | 59,639,061 | 61,204,221 | 59,873,416 | 61,276,278 | ||||||||||||
Dividends declared per common share | $ | 0.08 | $ | 0.08 | $ | 0.16 | $ | 0.16 |
June 30, 2017 (Unaudited) | December 31, 2016 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 385,396 | $ | 464,617 | ||||
Accounts receivable, net | 1,501,036 | 1,495,431 | ||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 132,224 | 130,697 | ||||||
Inventories | 42,451 | 37,426 | ||||||
Prepaid expenses and other | 38,729 | 40,944 | ||||||
Total current assets | 2,099,836 | 2,169,115 | ||||||
Investments, notes and other long-term receivables | 7,722 | 8,792 | ||||||
Property, plant & equipment, net | 127,754 | 127,951 | ||||||
Goodwill | 1,010,399 | 979,628 | ||||||
Identifiable intangible assets, net | 509,341 | 487,398 | ||||||
Other assets | 92,522 | 79,554 | ||||||
Total assets | $ | 3,847,574 | $ | 3,852,438 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Current maturities of long-term debt and capital lease obligations | $ | 15,318 | $ | 15,030 | ||||
Accounts payable | 469,318 | 501,213 | ||||||
Billings in excess of costs and estimated earnings on uncompleted contracts | 523,115 | 489,242 | ||||||
Accrued payroll and benefits | 271,438 | 310,514 | ||||||
Other accrued expenses and liabilities | 189,668 | 195,775 | ||||||
Total current liabilities | 1,468,857 | 1,511,774 | ||||||
Borrowings under revolving credit facility | 125,000 | 125,000 | ||||||
Long-term debt and capital lease obligations | 276,866 | 283,296 | ||||||
Other long-term obligations | 397,922 | 394,426 | ||||||
Total liabilities | 2,268,645 | 2,314,496 | ||||||
Equity: | ||||||||
Total EMCOR Group, Inc. stockholders’ equity | 1,578,076 | 1,537,089 | ||||||
Noncontrolling interests | 853 | 853 | ||||||
Total equity | 1,578,929 | 1,537,942 | ||||||
Total liabilities and equity | $ | 3,847,574 | $ | 3,852,438 |
2017 | 2016 | |||||||
Cash flows - operating activities: | ||||||||
Net income including noncontrolling interests | $ | 109,398 | $ | 89,709 | ||||
Depreciation and amortization | 20,354 | 19,265 | ||||||
Amortization of identifiable intangible assets | 24,257 | 20,011 | ||||||
Provision for doubtful accounts | 2,543 | 4,478 | ||||||
Deferred income taxes | (6,410 | ) | 1,734 | |||||
Excess tax benefits from share-based compensation | (1,554 | ) | (1,818 | ) | ||||
Equity income from unconsolidated entities | (758 | ) | (160 | ) | ||||
Other non-cash items | 2,208 | 5,565 | ||||||
Distributions from unconsolidated entities | 1,829 | 863 | ||||||
Changes in operating assets and liabilities, excluding the effect of businesses acquired | (48,978 | ) | (91,862 | ) | ||||
Net cash provided by operating activities | 102,889 | 47,785 | ||||||
Cash flows - investing activities: | ||||||||
Payments for acquisitions of businesses, net of cash acquired | (82,724 | ) | (232,283 | ) | ||||
Proceeds from sale of property, plant and equipment | 1,629 | 909 | ||||||
Purchase of property, plant and equipment | (17,668 | ) | (18,950 | ) | ||||
Net cash used in investing activities | (98,763 | ) | (250,324 | ) | ||||
Cash flows - financing activities: | ||||||||
Proceeds from revolving credit facility | — | 220,000 | ||||||
Repayments of long-term debt | (7,601 | ) | (8,756 | ) | ||||
Repayments of capital lease obligations | (716 | ) | (816 | ) | ||||
Dividends paid to stockholders | (9,531 | ) | (9,734 | ) | ||||
Repurchase of common stock | (65,775 | ) | (34,074 | ) | ||||
Proceeds from exercise of stock options | — | 144 | ||||||
Payments to satisfy minimum tax withholding | (2,637 | ) | (4,111 | ) | ||||
Issuance of common stock under employee stock purchase plan | 2,191 | 2,383 | ||||||
Payments for contingent consideration arrangements | (1,017 | ) | — | |||||
Distributions to noncontrolling interests | — | (2,050 | ) | |||||
Net cash (used in) provided by financing activities | (85,086 | ) | 162,986 | |||||
Effect of exchange rate changes on cash and cash equivalents | 1,739 | (4,259 | ) | |||||
Decrease in cash and cash equivalents | (79,221 | ) | (43,812 | ) | ||||
Cash and cash equivalents at beginning of year | 464,617 | 486,831 | ||||||
Cash and cash equivalents at end of period | $ | 385,396 | $ | 443,019 |
For the three months ended June 30, | ||||||||
2017 | 2016 | |||||||
Revenues from unrelated entities: | ||||||||
United States electrical construction and facilities services | $ | 449,222 | $ | 420,632 | ||||
United States mechanical construction and facilities services | 741,817 | 625,547 | ||||||
United States building services | 438,264 | 463,145 | ||||||
United States industrial services | 187,476 | 333,508 | ||||||
Total United States operations | 1,816,779 | 1,842,832 | ||||||
United Kingdom building services | 79,158 | 90,584 | ||||||
Total worldwide operations | $ | 1,895,937 | $ | 1,933,416 | ||||
For the six months ended June 30, | ||||||||
2017 | 2016 | |||||||
Revenues from unrelated entities: | ||||||||
United States electrical construction and facilities services | $ | 892,238 | $ | 768,921 | ||||
United States mechanical construction and facilities services | 1,412,946 | 1,233,975 | ||||||
United States building services | 878,294 | 906,258 | ||||||
United States industrial services | 446,015 | 591,012 | ||||||
Total United States operations | 3,629,493 | 3,500,166 | ||||||
United Kingdom building services | 158,176 | 178,220 | ||||||
Total worldwide operations | $ | 3,787,669 | $ | 3,678,386 | ||||
For the three months ended June 30, | ||||||||
2017 | 2016 | |||||||
Operating income (loss): | ||||||||
United States electrical construction and facilities services | $ | 32,118 | $ | 23,011 | ||||
United States mechanical construction and facilities services | 53,054 | 37,936 | ||||||
United States building services | 20,185 | 18,535 | ||||||
United States industrial services | 4,373 | 33,148 | ||||||
Total United States operations | 109,730 | 112,630 | ||||||
United Kingdom building services | 3,497 | 3,258 | ||||||
Corporate administration | (20,063 | ) | (22,958 | ) | ||||
Restructuring expenses | (343 | ) | (641 | ) | ||||
Total worldwide operations | 92,821 | 92,289 | ||||||
Other corporate items: | ||||||||
Interest expense | (3,069 | ) | (3,118 | ) | ||||
Interest income | 73 | 192 | ||||||
Income from continuing operations before income taxes | $ | 89,825 | $ | 89,363 | ||||
For the six months ended June 30, | ||||||||
2017 | 2016 | |||||||
Operating income (loss): | ||||||||
United States electrical construction and facilities services | $ | 63,152 | $ | 39,718 | ||||
United States mechanical construction and facilities services | 93,487 | 61,717 | ||||||
United States building services | 34,394 | 32,533 | ||||||
United States industrial services | 21,417 | 52,014 | ||||||
Total United States operations | 212,450 | 185,982 | ||||||
United Kingdom building services | 5,176 | 6,569 | ||||||
Corporate administration | (41,123 | ) | (43,915 | ) | ||||
Restructuring expenses | (908 | ) | (732 | ) | ||||
Total worldwide operations | 175,595 | 147,904 | ||||||
Other corporate items: | ||||||||
Interest expense | (6,140 | ) | (5,494 | ) | ||||
Interest income | 330 | 357 | ||||||
Income from continuing operations before income taxes | $ | 169,785 | $ | 142,767 | ||||
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
GAAP operating income | $ | 92,821 | $ | 92,289 | $ | 175,595 | $ | 147,904 | ||||||||
Transaction expenses related to the acquisition of Ardent | — | 2,757 | — | 3,838 | ||||||||||||
Non-GAAP operating income, excluding Ardent transaction expenses | $ | 92,821 | $ | 95,046 | $ | 175,595 | $ | 151,742 |
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
GAAP net income from continuing operations attributable to EMCOR Group, Inc. (1) | $ | 56,776 | $ | 56,477 | $ | 109,920 | $ | 90,906 | ||||||||
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 | $ | 56,776 | $ | 58,149 | $ | 109,920 | $ | 93,234 |
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
GAAP diluted earnings per common share from continuing operations | $ | 0.95 | $ | 0.92 | $ | 1.84 | $ | 1.48 | ||||||||
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 | $ | 0.95 | $ | 1.84 | $ | 1.52 |
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