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 |
EMCOR Group, Inc. | |||
Dated: February 22, 2018 | 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 FOURTH QUARTER AND FULL-YEAR 2017 RESULTS |
- Record 4th Quarter and Full-Year Revenues of $2.0 billion and $7.7 billion, respectively - |
- Record 4th Quarter Diluted EPS from Cont. Operations of $0.90, 30.4% Increase Year-over-Year - |
- Record Full-Year Diluted EPS from Cont. Operations of $3.83, 26.8% Increase Year-over-Year - |
- Record Full-Year Operating Cash Flow of $366.1 million, 38.4% Increase Year-over-Year - |
- Announces 2018 Revenue and Diluted EPS Guidance - |
EMCOR Reports Fourth Quarter and Fiscal Year Results | Page 2 |
EMCOR Reports Fourth Quarter and Fiscal Year Results | Page 3 |
EMCOR Reports Fourth Quarter and Fiscal Year Results | Page 4 |
(Unaudited) | ||||||||||||||||
For the three months ended December 31, | For the twelve months ended December 31, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenues | $ | 2,012,639 | $ | 1,949,964 | $ | 7,686,999 | $ | 7,551,524 | ||||||||
Cost of sales | 1,701,538 | 1,677,995 | 6,539,987 | 6,513,662 | ||||||||||||
Gross profit | 311,101 | 271,969 | 1,147,012 | 1,037,862 | ||||||||||||
Selling, general and administrative expenses | 204,159 | 194,884 | 757,062 | 725,538 | ||||||||||||
Restructuring expenses | 623 | 167 | 1,577 | 1,438 | ||||||||||||
Impairment loss on goodwill and identifiable intangible assets | 57,819 | 2,428 | 57,819 | 2,428 | ||||||||||||
Operating income | 48,500 | 74,490 | 330,554 | 308,458 | ||||||||||||
Interest expense | (3,306 | ) | (3,654 | ) | (12,770 | ) | (12,627 | ) | ||||||||
Interest income | 358 | 145 | 965 | 663 | ||||||||||||
Income from continuing operations before income taxes | 45,552 | 70,981 | 318,749 | 296,494 | ||||||||||||
Income tax (benefit) provision | (7,774 | ) | 28,536 | 90,699 | 111,199 | |||||||||||
Income from continuing operations | 53,326 | 42,445 | 228,050 | 185,295 | ||||||||||||
Loss from discontinued operation, net of income taxes | (128 | ) | (1,558 | ) | (857 | ) | (3,142 | ) | ||||||||
Net income including noncontrolling interests | 53,198 | 40,887 | 227,193 | 182,153 | ||||||||||||
Less: Net loss (income) attributable to noncontrolling interests | 3 | (211 | ) | 3 | (218 | ) | ||||||||||
Net income attributable to EMCOR Group, Inc. | $ | 53,201 | $ | 40,676 | $ | 227,196 | $ | 181,935 | ||||||||
Basic earnings (loss) per common share: | ||||||||||||||||
From continuing operations | $ | 0.91 | $ | 0.70 | $ | 3.85 | $ | 3.05 | ||||||||
From discontinued operation | $ | (0.00 | ) | $ | (0.03 | ) | $ | (0.01 | ) | $ | (0.05 | ) | ||||
Diluted earnings (loss) per common share: | ||||||||||||||||
From continuing operations | $ | 0.90 | $ | 0.69 | $ | 3.83 | $ | 3.02 | ||||||||
From discontinued operation | $ | (0.00 | ) | $ | (0.03 | ) | $ | (0.01 | ) | $ | (0.05 | ) | ||||
Weighted average shares of common stock outstanding: | ||||||||||||||||
Basic | 58,903,875 | 60,479,635 | 59,254,256 | 60,769,808 | ||||||||||||
Diluted | 59,314,187 | 60,956,004 | 59,618,969 | 61,206,792 | ||||||||||||
Dividends declared per common share | $ | 0.08 | $ | 0.08 | $ | 0.32 | $ | 0.32 |
December 31, 2017 | December 31, 2016 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 467,430 | $ | 464,617 | ||||
Accounts receivable, net | 1,607,922 | 1,495,431 | ||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 122,621 | 130,697 | ||||||
Inventories | 42,724 | 37,426 | ||||||
Prepaid expenses and other | 43,812 | 40,944 | ||||||
Total current assets | 2,284,509 | 2,169,115 | ||||||
Investments, notes and other long-term receivables | 2,309 | 8,792 | ||||||
Property, plant & equipment, net | 127,156 | 127,951 | ||||||
Goodwill | 964,893 | 979,628 | ||||||
Identifiable intangible assets, net | 495,036 | 487,398 | ||||||
Other assets | 92,001 | 79,554 | ||||||
Total assets | $ | 3,965,904 | $ | 3,852,438 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Current maturities of long-term debt and capital lease obligations | $ | 15,364 | $ | 15,030 | ||||
Accounts payable | 567,840 | 501,213 | ||||||
Billings in excess of costs and estimated earnings on uncompleted contracts | 524,156 | 489,242 | ||||||
Accrued payroll and benefits | 322,865 | 310,514 | ||||||
Other accrued expenses and liabilities | 220,727 | 195,775 | ||||||
Total current liabilities | 1,650,952 | 1,511,774 | ||||||
Borrowings under revolving credit facility | 25,000 | 125,000 | ||||||
Long-term debt and capital lease obligations | 269,786 | 283,296 | ||||||
Other long-term obligations | 346,049 | 394,426 | ||||||
Total liabilities | 2,291,787 | 2,314,496 | ||||||
Equity: | ||||||||
Total EMCOR Group, Inc. stockholders’ equity | 1,673,267 | 1,537,089 | ||||||
Noncontrolling interests | 850 | 853 | ||||||
Total equity | 1,674,117 | 1,537,942 | ||||||
Total liabilities and equity | $ | 3,965,904 | $ | 3,852,438 |
2017 | 2016 | |||||||
Cash flows - operating activities: | ||||||||
Net income including noncontrolling interests | $ | 227,193 | $ | 182,153 | ||||
Depreciation and amortization | 39,915 | 38,881 | ||||||
Amortization of identifiable intangible assets | 48,594 | 40,908 | ||||||
Deferred income taxes | (53,358 | ) | (8,108 | ) | ||||
Excess tax benefits from share-based compensation | (1,616 | ) | (2,546 | ) | ||||
Equity income from unconsolidated entities | (864 | ) | (1,569 | ) | ||||
Non-cash expense for impairment of goodwill and identifiable intangible assets | 57,819 | 2,428 | ||||||
Other non-cash items | 11,219 | 15,361 | ||||||
Distributions from unconsolidated entities | 5,506 | 1,247 | ||||||
Changes in operating assets and liabilities, excluding the effect of businesses acquired | 31,726 | (4,194 | ) | |||||
Net cash provided by operating activities | 366,134 | 264,561 | ||||||
Cash flows - investing activities: | ||||||||
Payments for acquisitions of businesses, net of cash acquired | (107,223 | ) | (232,947 | ) | ||||
Proceeds from sale of property, plant and equipment | 4,014 | 2,023 | ||||||
Purchase of property, plant and equipment | (34,684 | ) | (39,648 | ) | ||||
Investments in and advances to unconsolidated entities | (675 | ) | (99 | ) | ||||
Distributions from unconsolidated entities | 475 | — | ||||||
Net cash used in investing activities | (138,093 | ) | (270,671 | ) | ||||
Cash flows - financing activities: | ||||||||
Proceeds from revolving credit facility | — | 220,000 | ||||||
Repayments of revolving credit facility | (100,000 | ) | (95,000 | ) | ||||
Borrowings from long-term debt | — | 400,000 | ||||||
Repayments of long-term debt and debt issuance costs | (15,202 | ) | (417,990 | ) | ||||
Repayments of capital lease obligations | (1,445 | ) | (1,384 | ) | ||||
Dividends paid to stockholders | (18,971 | ) | (19,454 | ) | ||||
Repurchase of common stock | (93,166 | ) | (94,221 | ) | ||||
Proceeds from exercise of stock options | — | 741 | ||||||
Taxes paid related to net share settlements of equity awards | (3,462 | ) | (4,225 | ) | ||||
Issuance of common stock under employee stock purchase plan | 4,793 | 4,814 | ||||||
Payments for contingent consideration arrangements | (1,017 | ) | — | |||||
Distributions to noncontrolling interests | — | (2,710 | ) | |||||
Net cash used in financing activities | (228,470 | ) | (9,429 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 3,242 | (6,675 | ) | |||||
Increase (decrease) in cash and cash equivalents | 2,813 | (22,214 | ) | |||||
Cash and cash equivalents at beginning of year | 464,617 | 486,831 | ||||||
Cash and cash equivalents at end of period | $ | 467,430 | $ | 464,617 |
(Unaudited) | ||||||||
For the three months ended December 31, | ||||||||
2017 | 2016 | |||||||
Revenues from unrelated entities: | ||||||||
United States electrical construction and facilities services | $ | 479,410 | $ | 476,929 | ||||
United States mechanical construction and facilities services | 790,785 | 717,528 | ||||||
United States building services | 438,302 | 443,256 | ||||||
United States industrial services | 207,475 | 237,251 | ||||||
Total United States operations | 1,915,972 | 1,874,964 | ||||||
United Kingdom building services | 96,667 | 75,000 | ||||||
Total worldwide operations | $ | 2,012,639 | $ | 1,949,964 | ||||
For the twelve months ended December 31, | ||||||||
2017 | 2016 | |||||||
Revenues from unrelated entities: | ||||||||
United States electrical construction and facilities services | $ | 1,829,567 | $ | 1,704,403 | ||||
United States mechanical construction and facilities services | 2,963,815 | 2,643,321 | ||||||
United States building services | 1,753,703 | 1,810,229 | ||||||
United States industrial services | 799,169 | 1,067,315 | ||||||
Total United States operations | 7,346,254 | 7,225,268 | ||||||
United Kingdom building services | 340,745 | 326,256 | ||||||
Total worldwide operations | $ | 7,686,999 | $ | 7,551,524 |
(Unaudited) | ||||||||
For the three months ended December 31, | ||||||||
2017 | 2016 | |||||||
Operating income (loss): | ||||||||
United States electrical construction and facilities services | $ | 40,266 | $ | 31,116 | ||||
United States mechanical construction and facilities services | 61,349 | 32,060 | ||||||
United States building services | 21,129 | 21,187 | ||||||
United States industrial services | 2,511 | 11,245 | ||||||
Total United States operations | 125,255 | 95,608 | ||||||
United Kingdom building services | 5,740 | 2,786 | ||||||
Corporate administration | (24,053 | ) | (21,309 | ) | ||||
Restructuring expenses | (623 | ) | (167 | ) | ||||
Impairment loss on goodwill and identifiable intangible assets | (57,819 | ) | (2,428 | ) | ||||
Total worldwide operations | 48,500 | 74,490 | ||||||
Other corporate items: | ||||||||
Interest expense | (3,306 | ) | (3,654 | ) | ||||
Interest income | 358 | 145 | ||||||
Income from continuing operations before income taxes | $ | 45,552 | $ | 70,981 | ||||
For the twelve months ended December 31, | ||||||||
2017 | 2016 | |||||||
Operating income (loss): | ||||||||
United States electrical construction and facilities services | $ | 150,001 | $ | 101,761 | ||||
United States mechanical construction and facilities services | 212,320 | 132,667 | ||||||
United States building services | 81,504 | 76,845 | ||||||
United States industrial services | 19,084 | 77,845 | ||||||
Total United States operations | 462,909 | 389,118 | ||||||
United Kingdom building services | 14,849 | 11,946 | ||||||
Corporate administration | (87,808 | ) | (88,740 | ) | ||||
Restructuring expenses | (1,577 | ) | (1,438 | ) | ||||
Impairment loss on goodwill and identifiable intangible assets | (57,819 | ) | (2,428 | ) | ||||
Total worldwide operations | 330,554 | 308,458 | ||||||
Other corporate items: | ||||||||
Interest expense | (12,770 | ) | (12,627 | ) | ||||
Interest income | 965 | 663 | ||||||
Income from continuing operations before income taxes | $ | 318,749 | $ | 296,494 |
For the three months ended December 31, | For the twelve months ended December 31, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
GAAP operating income | $ | 48,500 | $ | 74,490 | $ | 330,554 | $ | 308,458 | ||||||||
Transaction expenses related to the acquisition of Ardent | — | — | — | 3,838 | ||||||||||||
Impairment loss on goodwill and identifiable intangible assets | 57,819 | 2,428 | 57,819 | 2,428 | ||||||||||||
Non-GAAP operating income, excluding Ardent transaction expenses and impairment loss on goodwill and identifiable intangible assets | $ | 106,319 | $ | 76,918 | $ | 388,373 | $ | 314,724 |
For the three months ended December 31, | For the twelve months ended December 31, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
GAAP net income from continuing operations attributable to EMCOR Group, Inc. (1) | $ | 53,329 | $ | 42,234 | $ | 228,053 | $ | 185,077 | ||||||||
Transaction expenses related to the acquisition of Ardent (2) | — | — | — | 2,328 | ||||||||||||
Impairment loss on goodwill and identifiable intangible assets (3) | 53,054 | 1,473 | 53,054 | 1,473 | ||||||||||||
Impact of change in tax rate on net deferred tax liability balance | (39,343 | ) | — | (39,343 | ) | — | ||||||||||
Non-GAAP net income from continuing operations attributable to EMCOR Group, Inc., excluding Ardent transaction expenses, impairment loss on goodwill and identifiable intangible assets and impact of change in tax rate on net deferred tax liability balance | $ | 67,040 | $ | 43,707 | $ | 241,764 | $ | 188,878 |
For the three months ended December 31, | For the twelve months ended December 31, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
GAAP diluted earnings per common share from continuing operations | $ | 0.90 | $ | 0.69 | $ | 3.83 | $ | 3.02 | ||||||||
Transaction expenses related to the acquisition of Ardent (1) | — | — | — | 0.04 | ||||||||||||
Impairment loss on goodwill and identifiable intangible assets (2) | 0.89 | 0.02 | 0.89 | 0.02 | ||||||||||||
Impact of change in tax rate on net deferred tax liability balance | (0.66 | ) | — | (0.66 | ) | — | ||||||||||
Non-GAAP diluted earnings per common share from continuing operations, excluding Ardent transaction expenses, impairment loss on goodwill and identifiable intangible assets and impact of change in tax rate on net deferred tax liability balance | $ | 1.13 | $ | 0.72 | $ | 4.06 | $ | 3.09 |
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