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 24, 2013 disclosing results of operations for its fiscal 2013 third quarter ended September 30, 2013. |
EMCOR Group, Inc. | |||
Dated: October 24, 2013 | 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: Nathan Elwell / Matt Steinberg (212) 850-5600 | ||
Linden Alschuler & Kaplan, Inc. Media: Lisa Linden / Mollie Fullington 212-575-4545 / 917-346-6123 |
EMCOR GROUP, INC. REPORTS THIRD QUARTER 2013 RESULTS |
- Total Backlog Remains Strong at $3.39 Billion - |
- Quarter Three Operating Cash Flow - $120.3 Million - |
- Creates U.S. Industrial Services Segment, Includes Ohmstede and RepconStrickland - |
EMCOR Reports Third Quarter Results | Page 2 |
EMCOR Reports Third Quarter Results | Page 3 |
EMCOR Reports Third Quarter Results | Page 4 |
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues | $ | 1,629,067 | $ | 1,606,242 | $ | 4,754,221 | $ | 4,734,798 | ||||||||
Cost of sales | 1,422,757 | 1,402,994 | 4,175,238 | 4,156,893 | ||||||||||||
Gross profit | 206,310 | 203,248 | 578,983 | 577,905 | ||||||||||||
Selling, general and administrative expenses | 149,722 | 134,477 | 427,855 | 406,656 | ||||||||||||
Restructuring expenses | 2,466 | 145 | 9,642 | 145 | ||||||||||||
Operating income | 54,122 | 68,626 | 141,486 | 171,104 | ||||||||||||
Interest expense | (2,352 | ) | (1,807 | ) | (5,978 | ) | (5,460 | ) | ||||||||
Interest income | 235 | 381 | 862 | 1,165 | ||||||||||||
Income before income taxes | 52,005 | 67,200 | 136,370 | 166,809 | ||||||||||||
Income tax provision | 23,112 | 26,890 | 55,285 | 64,711 | ||||||||||||
Net income including noncontrolling interests | 28,893 | 40,310 | 81,085 | 102,098 | ||||||||||||
Less: Net income attributable to noncontrolling interests | (2,203 | ) | (729 | ) | (3,214 | ) | (1,924 | ) | ||||||||
Net income attributable to EMCOR Group, Inc. | $ | 26,690 | $ | 39,581 | $ | 77,871 | $ | 100,174 | ||||||||
Basic earnings per common share | $ | 0.40 | $ | 0.59 | $ | 1.16 | $ | 1.50 | ||||||||
Diluted earnings per common share | $ | 0.39 | $ | 0.59 | $ | 1.14 | $ | 1.48 | ||||||||
Weighted average shares of common stock outstanding: | ||||||||||||||||
Basic | 67,174,848 | 66,568,318 | 67,127,149 | 66,667,681 | ||||||||||||
Diluted | 68,163,701 | 67,511,707 | 68,119,740 | 67,717,704 | ||||||||||||
Dividends declared per common share | $ | 0.06 | $ | — | $ | 0.12 | $ | 0.15 |
September 30, 2013 (Unaudited) | December 31, 2012 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 444,037 | $ | 605,303 | ||||
Accounts receivable, net | 1,286,237 | 1,221,956 | ||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 110,241 | 93,061 | ||||||
Inventories | 42,724 | 50,512 | ||||||
Prepaid expenses and other | 85,247 | 73,621 | ||||||
Total current assets | 1,968,486 | 2,044,453 | ||||||
Investments, notes and other long-term receivables | 5,865 | 4,959 | ||||||
Property, plant & equipment, net | 123,138 | 116,631 | ||||||
Goodwill | 829,316 | 566,588 | ||||||
Identifiable intangible assets, net | 550,785 | 343,748 | ||||||
Other assets | 29,169 | 30,691 | ||||||
Total assets | $ | 3,506,759 | $ | 3,107,070 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Borrowings under revolving credit facility | $ | — | $ | — | ||||
Current maturities of long-term debt and capital lease obligations | 1,882 | 1,787 | ||||||
Accounts payable | 479,604 | 490,621 | ||||||
Billings in excess of costs and estimated earnings on uncompleted contracts | 390,606 | 383,527 | ||||||
Accrued payroll and benefits | 241,181 | 224,555 | ||||||
Other accrued expenses and liabilities | 178,743 | 194,029 | ||||||
Total current liabilities | 1,292,016 | 1,294,519 | ||||||
Borrowings under revolving credit facility | 400,000 | 150,000 | ||||||
Long-term debt and capital lease obligations | 3,195 | 4,112 | ||||||
Other long-term obligations | 376,347 | 301,260 | ||||||
Total liabilities | 2,071,558 | 1,749,891 | ||||||
Equity: | ||||||||
Total EMCOR Group, Inc. stockholders’ equity | 1,422,188 | 1,346,080 | ||||||
Noncontrolling interests | 13,013 | 11,099 | ||||||
Total equity | 1,435,201 | 1,357,179 | ||||||
Total liabilities and equity | $ | 3,506,759 | $ | 3,107,070 |
2013 | 2012 | |||||||
Cash flows - operating activities: | ||||||||
Net income including noncontrolling interests | $ | 81,085 | $ | 102,098 | ||||
Depreciation and amortization | 25,907 | 22,577 | ||||||
Amortization of identifiable intangible assets | 21,317 | 22,336 | ||||||
Deferred income taxes | (666 | ) | 949 | |||||
Excess tax benefits from share-based compensation | (1,267 | ) | (5,636 | ) | ||||
Equity income from unconsolidated entities | (880 | ) | (628 | ) | ||||
Other non-cash items | 1,860 | 3,753 | ||||||
Distributions from unconsolidated entities | 634 | 867 | ||||||
Changes in operating assets and liabilities, excluding the effect of businesses acquired | (59,943 | ) | (103,285 | ) | ||||
Net cash provided by operating activities | 68,047 | 43,031 | ||||||
Cash flows - investing activities: | ||||||||
Payments for acquisitions of businesses, net of cash acquired, and related contingent consideration agreement | (448,943 | ) | (20,613 | ) | ||||
Proceeds from sale of property, plant and equipment | 1,171 | 1,830 | ||||||
Purchase of property, plant and equipment | (24,006 | ) | (29,356 | ) | ||||
Purchase of short-term investments | — | (22,433 | ) | |||||
Maturity of short-term investments | 4,616 | 22,490 | ||||||
Net cash used in investing activities | (467,162 | ) | (48,082 | ) | ||||
Cash flows - financing activities: | ||||||||
Proceeds from revolving credit facility | 250,000 | — | ||||||
Repayments of long-term debt | (6 | ) | (38 | ) | ||||
Repayments of capital lease obligations | (1,256 | ) | (1,654 | ) | ||||
Dividends paid to stockholders | (8,052 | ) | (9,988 | ) | ||||
Repurchase of common stock | (4,998 | ) | (23,912 | ) | ||||
Proceeds from exercise of stock options | 2,320 | 2,953 | ||||||
Payments to satisfy minimum tax withholding | (927 | ) | (1,654 | ) | ||||
Issuance of common stock under employee stock purchase plan | 2,088 | 1,913 | ||||||
Payments for contingent consideration arrangements | (537 | ) | (5,748 | ) | ||||
Distributions to noncontrolling interests | (1,300 | ) | (1,600 | ) | ||||
Excess tax benefits from share-based compensation | 1,267 | 5,636 | ||||||
Net cash provided by (used in) financing activities | 238,599 | (34,092 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | (750 | ) | 2,201 | |||||
Decrease in cash and cash equivalents | (161,266 | ) | (36,942 | ) | ||||
Cash and cash equivalents at beginning of year | 605,303 | 511,322 | ||||||
Cash and cash equivalents at end of period | $ | 444,037 | $ | 474,380 |
For the three months ended September 30, | ||||||||
2013 | 2012 | |||||||
Revenues from unrelated entities: | ||||||||
United States electrical construction and facilities services | $ | 340,529 | $ | 318,960 | ||||
United States mechanical construction and facilities services | 616,403 | 593,448 | ||||||
United States building services | 457,777 | 444,510 | ||||||
United States industrial services | 110,879 | 125,412 | ||||||
Total United States operations | 1,525,588 | 1,482,330 | ||||||
United Kingdom construction and facilities services | 103,479 | 123,912 | ||||||
Total worldwide operations | $ | 1,629,067 | $ | 1,606,242 | ||||
For the nine months ended September 30, | ||||||||
2013 | 2012 | |||||||
Revenues from unrelated entities: | ||||||||
United States electrical construction and facilities services | $ | 984,443 | $ | 905,343 | ||||
United States mechanical construction and facilities services | 1,741,483 | 1,794,268 | ||||||
United States building services | 1,361,392 | 1,341,940 | ||||||
United States industrial services | 335,358 | 288,605 | ||||||
Total United States operations | 4,422,676 | 4,330,156 | ||||||
United Kingdom construction and facilities services | 331,545 | 404,642 | ||||||
Total worldwide operations | $ | 4,754,221 | $ | 4,734,798 |
For the three months ended September 30, | ||||||||
2013 | 2012 | |||||||
Operating income (loss): | ||||||||
United States electrical construction and facilities services | $ | 23,971 | $ | 22,146 | ||||
United States mechanical construction and facilities services | 27,421 | 30,359 | ||||||
United States building services | 23,285 | 17,690 | ||||||
United States industrial services | 307 | 11,129 | ||||||
Total United States operations | 74,984 | 81,324 | ||||||
United Kingdom construction and facilities services | 1,136 | 1,646 | ||||||
Corporate administration | (19,532 | ) | (14,199 | ) | ||||
Restructuring expenses | (2,466 | ) | (145 | ) | ||||
Total worldwide operations | 54,122 | 68,626 | ||||||
Other corporate items: | ||||||||
Interest expense | (2,352 | ) | (1,807 | ) | ||||
Interest income | 235 | 381 | ||||||
Income before income taxes | $ | 52,005 | $ | 67,200 | ||||
For the nine months ended September 30, | ||||||||
2013 | 2012 | |||||||
Operating income (loss): | ||||||||
United States electrical construction and facilities services | $ | 68,147 | $ | 68,121 | ||||
United States mechanical construction and facilities services | 56,809 | 82,688 | ||||||
United States building services | 52,928 | 33,653 | ||||||
United States industrial services | 26,319 | 22,617 | ||||||
Total United States operations | 204,203 | 207,079 | ||||||
United Kingdom construction and facilities services | (2,122 | ) | 9,090 | |||||
Corporate administration | (50,953 | ) | (44,920 | ) | ||||
Restructuring expenses | (9,642 | ) | (145 | ) | ||||
Total worldwide operations | 141,486 | 171,104 | ||||||
Other corporate items: | ||||||||
Interest expense | (5,978 | ) | (5,460 | ) | ||||
Interest income | 862 | 1,165 | ||||||
Income before income taxes | $ | 136,370 | $ | 166,809 |
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
GAAP operating income | $ | 54,122 | $ | 68,626 | $ | 141,486 | $ | 171,104 | ||||||||
Transaction expenses related to the acquisition of RepconStrickland, Inc. | 4,689 | — | 6,050 | — | ||||||||||||
EMCOR UK construction operating losses | 2,057 | 2,819 | 13,968 | 4,765 | ||||||||||||
EMCOR UK restructuring expenses | 1,865 | — | 8,990 | — | ||||||||||||
Non-GAAP operating income, excluding RepconStrickland transaction expenses, UK losses and UK restructuring expenses | $ | 62,733 | $ | 71,445 | $ | 170,494 | $ | 175,869 |
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
GAAP net income attributable to EMCOR Group, Inc. | $ | 26,690 | $ | 39,581 | $ | 77,871 | $ | 100,174 | ||||||||
Transaction expenses related to the acquisition of RepconStrickland, Inc. (1) | 2,898 | — | 4,256 | — | ||||||||||||
EMCOR UK construction losses (2) | 1,579 | 2,128 | 10,721 | 3,598 | ||||||||||||
EMCOR UK restructuring expenses (3) | 1,431 | — | 6,900 | — | ||||||||||||
Non-GAAP net income attributable to EMCOR Group, Inc., excluding RepconStrickland transaction expenses, UK losses and UK restructuring expenses | $ | 32,598 | $ | 41,709 | $ | 99,748 | $ | 103,772 |
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
GAAP diluted earnings per common share | $ | 0.39 | $ | 0.59 | $ | 1.14 | $ | 1.48 | ||||||||
Transaction expenses related to the acquisition of RepconStrickland, Inc. (1) | 0.04 | — | 0.06 | — | ||||||||||||
EMCOR UK construction losses (2) | 0.02 | 0.03 | 0.16 | 0.05 | ||||||||||||
EMCOR UK restructuring expenses (3) | 0.02 | — | 0.10 | — | ||||||||||||
Non-GAAP diluted earnings per common share, excluding RepconStrickland transaction expenses, UK losses and UK restructuring expenses | $ | 0.48 | $ | 0.62 | $ | 1.46 | $ | 1.53 |
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