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, 2014 disclosing results of operations for its fiscal 2013 fourth quarter ended December 31, 2013. |
EMCOR Group, Inc. | |||
Dated: February 25, 2014 | 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 | ||
LAK Public Relations, Inc. Media: Lisa Linden / Mollie Fullington 212-575-4545 / 917-346-6123 |
EMCOR GROUP, INC. REPORTS FOURTH QUARTER AND FULL YEAR 2013 RESULTS |
- 2013 Revenue Growth of 1.1% to $6.42 billion - |
- Quarter Four Operating Cash Flow - $82.0 million - |
- Announces 2014 Revenue 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, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues | $ | 1,662,937 | $ | 1,611,881 | $ | 6,417,158 | $ | 6,346,679 | ||||||||
Cost of sales | 1,428,862 | 1,383,432 | 5,604,100 | 5,540,325 | ||||||||||||
Gross profit | 234,075 | 228,449 | 813,058 | 806,354 | ||||||||||||
Selling, general and administrative expenses | 163,208 | 149,586 | 591,063 | 556,242 | ||||||||||||
Restructuring expenses | 2,061 | — | 11,703 | 145 | ||||||||||||
Operating income | 68,806 | 78,863 | 210,292 | 249,967 | ||||||||||||
Interest expense | (2,791 | ) | (1,815 | ) | (8,769 | ) | (7,275 | ) | ||||||||
Interest income | 266 | 391 | 1,128 | 1,556 | ||||||||||||
Income before income taxes | 66,281 | 77,439 | 202,651 | 244,248 | ||||||||||||
Income tax provision | 20,012 | 30,651 | 75,297 | 95,362 | ||||||||||||
Net income including noncontrolling interests | 46,269 | 46,788 | 127,354 | 148,886 | ||||||||||||
Less: Net income attributable to noncontrolling interests | (348 | ) | (378 | ) | (3,562 | ) | (2,302 | ) | ||||||||
Net income attributable to EMCOR Group, Inc. | $ | 45,921 | $ | 46,410 | $ | 123,792 | $ | 146,584 | ||||||||
Basic earnings per common share | $ | 0.69 | $ | 0.69 | $ | 1.85 | $ | 2.20 | ||||||||
Diluted earnings per common share | $ | 0.68 | $ | 0.68 | $ | 1.82 | $ | 2.16 | ||||||||
Weighted average shares of common stock outstanding: | ||||||||||||||||
Basic | 66,966,303 | 66,805,577 | 67,086,299 | 66,701,869 | ||||||||||||
Diluted | 67,950,697 | 67,801,701 | 68,076,841 | 67,738,418 | ||||||||||||
Dividends declared per common share | $ | — | $ | 0.36 | $ | 0.18 | $ | 0.51 |
December 31, 2013 | December 31, 2012 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 439,813 | $ | 605,303 | ||||
Accounts receivable, net | 1,268,226 | 1,221,956 | ||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 90,727 | 93,061 | ||||||
Inventories | 52,123 | 50,512 | ||||||
Prepaid expenses and other | 79,216 | 73,621 | ||||||
Total current assets | 1,930,105 | 2,044,453 | ||||||
Investments, notes and other long-term receivables | 6,799 | 4,959 | ||||||
Property, plant & equipment, net | 123,414 | 116,631 | ||||||
Goodwill | 834,825 | 566,588 | ||||||
Identifiable intangible assets, net | 541,497 | 343,748 | ||||||
Other assets | 29,275 | 30,691 | ||||||
Total assets | $ | 3,465,915 | $ | 3,107,070 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Borrowings under revolving credit facility | $ | — | $ | — | ||||
Current maturities of long-term debt and capital lease obligations | 19,332 | 1,787 | ||||||
Accounts payable | 487,738 | 490,621 | ||||||
Billings in excess of costs and estimated earnings on uncompleted contracts | 381,295 | 383,527 | ||||||
Accrued payroll and benefits | 237,779 | 224,555 | ||||||
Other accrued expenses and liabilities | 172,599 | 194,029 | ||||||
Total current liabilities | 1,298,743 | 1,294,519 | ||||||
Borrowings under revolving credit facility | — | 150,000 | ||||||
Long-term debt and capital lease obligations | 335,331 | 4,112 | ||||||
Other long-term obligations | 352,215 | 301,260 | ||||||
Total liabilities | 1,986,289 | 1,749,891 | ||||||
Equity: | ||||||||
Total EMCOR Group, Inc. stockholders’ equity | 1,466,265 | 1,346,080 | ||||||
Noncontrolling interests | 13,361 | 11,099 | ||||||
Total equity | 1,479,626 | 1,357,179 | ||||||
Total liabilities and equity | $ | 3,465,915 | $ | 3,107,070 |
2013 | 2012 | |||||||
Cash flows - operating activities: | ||||||||
Net income including noncontrolling interests | $ | 127,354 | $ | 148,886 | ||||
Depreciation and amortization | 36,310 | 31,204 | ||||||
Amortization of identifiable intangible assets | 31,028 | 29,762 | ||||||
Deferred income taxes | 11,857 | 6,626 | ||||||
Excess tax benefits from share-based compensation | (4,624 | ) | (7,083 | ) | ||||
Equity income from unconsolidated entities | (1,048 | ) | (930 | ) | ||||
Other non-cash items | (6,262 | ) | 8,978 | |||||
Distributions from unconsolidated entities | 679 | 887 | ||||||
Changes in operating assets and liabilities, excluding the effect of businesses acquired | (45,225 | ) | (33,922 | ) | ||||
Net cash provided by operating activities | 150,069 | 184,408 | ||||||
Cash flows - investing activities: | ||||||||
Payments for acquisitions of businesses, net of cash acquired, and related contingent consideration agreement | (454,671 | ) | (20,613 | ) | ||||
Proceeds from sale of property, plant and equipment | 2,930 | 3,070 | ||||||
Purchase of property, plant and equipment | (35,497 | ) | (37,875 | ) | ||||
Investments in and advances to unconsolidated entities and joint ventures | (800 | ) | — | |||||
Purchase of short-term investments | — | (22,433 | ) | |||||
Maturity of short-term investments | 4,616 | 35,305 | ||||||
Net cash used in investing activities | (483,422 | ) | (42,546 | ) | ||||
Cash flows - financing activities: | ||||||||
Proceeds from revolving credit facility | 250,000 | — | ||||||
Repayments of revolving credit facility | (400,000 | ) | — | |||||
Borrowings from long-term debt | 350,000 | — | ||||||
Repayments of long-term debt | (3,013 | ) | (40 | ) | ||||
Repayments of capital lease obligations | (1,692 | ) | (1,978 | ) | ||||
Dividends paid to stockholders | (12,080 | ) | (34,073 | ) | ||||
Repurchase of common stock | (26,070 | ) | (23,912 | ) | ||||
Proceeds from exercise of stock options | 5,172 | 8,786 | ||||||
Payments to satisfy minimum tax withholding | (927 | ) | (1,654 | ) | ||||
Issuance of common stock under employee stock purchase plan | 2,854 | 2,549 | ||||||
Payments for contingent consideration arrangements | (537 | ) | (5,748 | ) | ||||
Distributions to noncontrolling interests | (1,300 | ) | (1,600 | ) | ||||
Excess tax benefits from share-based compensation | 4,624 | 7,083 | ||||||
Net cash provided by (used in) financing activities | 167,031 | (50,587 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | 832 | 2,706 | ||||||
(Decrease) increase in cash and cash equivalents | (165,490 | ) | 93,981 | |||||
Cash and cash equivalents at beginning of year | 605,303 | 511,322 | ||||||
Cash and cash equivalents at end of period | $ | 439,813 | $ | 605,303 |
(Unaudited) | ||||||||
For the three months ended December 31, | ||||||||
2013 | 2012 | |||||||
Revenues from unrelated entities: | ||||||||
United States electrical construction and facilities services | $ | 361,307 | $ | 306,349 | ||||
United States mechanical construction and facilities services | 588,351 | 592,230 | ||||||
United States building services | 433,586 | 465,977 | ||||||
United States industrial services | 184,055 | 113,188 | ||||||
Total United States operations | 1,567,299 | 1,477,744 | ||||||
United Kingdom construction and building services | 95,638 | 134,137 | ||||||
Total worldwide operations | $ | 1,662,937 | $ | 1,611,881 | ||||
For the twelve months ended December 31, | ||||||||
2013 | 2012 | |||||||
Revenues from unrelated entities: | ||||||||
United States electrical construction and facilities services | $ | 1,345,750 | $ | 1,211,692 | ||||
United States mechanical construction and facilities services | 2,329,834 | 2,386,498 | ||||||
United States building services | 1,794,978 | 1,807,917 | ||||||
United States industrial services | 519,413 | 401,793 | ||||||
Total United States operations | 5,989,975 | 5,807,900 | ||||||
United Kingdom construction and building services | 427,183 | 538,779 | ||||||
Total worldwide operations | $ | 6,417,158 | $ | 6,346,679 |
(Unaudited) | ||||||||
For the three months ended December 31, | ||||||||
2013 | 2012 | |||||||
Operating income (loss): | ||||||||
United States electrical construction and facilities services | $ | 29,967 | $ | 32,615 | ||||
United States mechanical construction and facilities services | 36,956 | 42,573 | ||||||
United States building services | 14,297 | 9,637 | ||||||
United States industrial services | 12,444 | 14,624 | ||||||
Total United States operations | 93,664 | 99,449 | ||||||
United Kingdom construction and building services | (3,859 | ) | (2,038 | ) | ||||
Corporate administration | (18,938 | ) | (18,548 | ) | ||||
Restructuring expenses | (2,061 | ) | — | |||||
Total worldwide operations | 68,806 | 78,863 | ||||||
Other corporate items: | ||||||||
Interest expense | (2,791 | ) | (1,815 | ) | ||||
Interest income | 266 | 391 | ||||||
Income before income taxes | $ | 66,281 | $ | 77,439 | ||||
For the twelve months ended December 31, | ||||||||
2013 | 2012 | |||||||
Operating income (loss): | ||||||||
United States electrical construction and facilities services | $ | 98,114 | $ | 100,736 | ||||
United States mechanical construction and facilities services | 93,765 | 125,261 | ||||||
United States building services | 67,225 | 43,290 | ||||||
United States industrial services | 38,763 | 37,241 | ||||||
Total United States operations | 297,867 | 306,528 | ||||||
United Kingdom construction and building services | (5,981 | ) | 7,052 | |||||
Corporate administration | (69,891 | ) | (63,468 | ) | ||||
Restructuring expenses | (11,703 | ) | (145 | ) | ||||
Total worldwide operations | 210,292 | 249,967 | ||||||
Other corporate items: | ||||||||
Interest expense | (8,769 | ) | (7,275 | ) | ||||
Interest income | 1,128 | 1,556 | ||||||
Income before income taxes | $ | 202,651 | $ | 244,248 |
For the three months ended December 31, | For the twelve months ended December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
GAAP operating income | $ | 68,806 | $ | 78,863 | $ | 210,292 | $ | 249,967 | ||||||||
Transaction expenses related to the acquisition of RepconStrickland, Inc. | 90 | — | 6,140 | — | ||||||||||||
EMCOR UK construction losses | 5,034 | 5,572 | 19,002 | 10,337 | ||||||||||||
EMCOR UK restructuring expenses | 2,066 | — | 11,056 | — | ||||||||||||
Non-GAAP operating income, excluding RepconStrickland transaction expenses, UK losses and UK restructuring expenses | $ | 75,996 | $ | 84,435 | $ | 246,490 | $ | 260,304 |
For the three months ended December 31, | For the twelve months ended December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
GAAP net income attributable to EMCOR Group, Inc. | $ | 45,921 | $ | 46,410 | $ | 123,792 | $ | 146,584 | ||||||||
Transaction expenses related to the acquisition of RepconStrickland, Inc. (1) | 107 | — | 4,363 | — | ||||||||||||
EMCOR UK construction losses (2) | 3,863 | 4,206 | 14,584 | 7,804 | ||||||||||||
EMCOR UK restructuring expenses (3) | 1,585 | — | 8,485 | — | ||||||||||||
Non-GAAP net income attributable to EMCOR Group, Inc., excluding RepconStrickland transaction expenses, UK losses and UK restructuring expenses | $ | 51,476 | $ | 50,616 | $ | 151,224 | $ | 154,388 |
For the three months ended December 31, | For the twelve months ended December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
GAAP diluted earnings per common share | $ | 0.68 | $ | 0.68 | $ | 1.82 | $ | 2.16 | ||||||||
Transaction expenses related to the acquisition of RepconStrickland, Inc. (1) | 0.00 | — | 0.06 | — | ||||||||||||
EMCOR UK construction losses (2) | 0.06 | 0.06 | 0.21 | 0.12 | ||||||||||||
EMCOR UK restructuring expenses (3) | 0.02 | — | 0.12 | — | ||||||||||||
Non-GAAP diluted earnings per common share, excluding RepconStrickland transaction expenses, UK losses and UK restructuring expenses | $ | 0.76 | $ | 0.75 | $ | 2.22 | $ | 2.28 |
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