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 28, 2014 disclosing results of operations for its fiscal 2014 third quarter ended September 30, 2014. |
EMCOR Group, Inc. | |||
Dated: October 28, 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 / Daniel Haykin (212) 850-5600 | ||
Linden Alschuler & Kaplan, Inc. Media: Lisa Linden / Mollie Fullington 212-575-4545 / 917-346-6123 |
EMCOR GROUP, INC. REPORTS THIRD QUARTER 2014 RESULTS |
- GAAP Diluted EPS from Continuing Operations of $0.68 - |
- Total Backlog Increased 9.8% to $3.70 Billion - |
- Ceases UK Construction Operations - |
EMCOR Reports Third Quarter Results | Page 2 |
EMCOR Reports Third Quarter Results | Page 3 |
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenues | $ | 1,566,711 | $ | 1,605,315 | $ | 4,710,169 | $ | 4,684,248 | ||||||||
Cost of sales | 1,344,482 | 1,398,753 | 4,051,496 | 4,099,473 | ||||||||||||
Gross profit | 222,229 | 206,562 | 658,673 | 584,775 | ||||||||||||
Selling, general and administrative expenses | 159,983 | 147,917 | 454,243 | 419,679 | ||||||||||||
Restructuring expenses | 398 | 601 | 799 | 652 | ||||||||||||
Gain on sale of building | 11,749 | — | 11,749 | — | ||||||||||||
Operating income | 73,597 | 58,044 | 215,380 | 164,444 | ||||||||||||
Interest expense | (2,397 | ) | (2,351 | ) | (6,887 | ) | (5,978 | ) | ||||||||
Interest income | 186 | 234 | 641 | 862 | ||||||||||||
Income from continuing operations before income taxes | 71,386 | 55,927 | 209,134 | 159,328 | ||||||||||||
Income tax provision | 23,998 | 24,024 | 75,428 | 60,622 | ||||||||||||
Income from continuing operations | 47,388 | 31,903 | 133,706 | 98,706 | ||||||||||||
Loss from discontinued operation, net of income taxes | (611 | ) | (3,010 | ) | (4,087 | ) | (17,621 | ) | ||||||||
Net income including noncontrolling interests | 46,777 | 28,893 | 129,619 | 81,085 | ||||||||||||
Less: Net income attributable to noncontrolling interests | (1,753 | ) | (2,203 | ) | (3,421 | ) | (3,214 | ) | ||||||||
Net income attributable to EMCOR Group, Inc. | $ | 45,024 | $ | 26,690 | $ | 126,198 | $ | 77,871 | ||||||||
Basic earnings (loss) per common share: | ||||||||||||||||
From continuing operations | $ | 0.68 | $ | 0.44 | $ | 1.94 | $ | 1.42 | ||||||||
From discontinued operation | $ | (0.01 | ) | $ | (0.04 | ) | $ | (0.06 | ) | $ | (0.26 | ) | ||||
Diluted earnings (loss) per common share: | ||||||||||||||||
From continuing operations | $ | 0.68 | $ | 0.43 | $ | 1.92 | $ | 1.40 | ||||||||
From discontinued operation | $ | (0.01 | ) | $ | (0.04 | ) | $ | (0.06 | ) | $ | (0.26 | ) | ||||
Weighted average shares of common stock outstanding: | ||||||||||||||||
Basic | 66,714,641 | 67,174,848 | 67,062,732 | 67,127,149 | ||||||||||||
Diluted | 67,417,547 | 68,163,701 | 67,802,606 | 68,119,740 | ||||||||||||
Dividends declared per common share | $ | 0.08 | $ | 0.06 | $ | 0.24 | $ | 0.12 |
September 30, 2014 (Unaudited) | December 31, 2013 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 437,446 | $ | 439,813 | ||||
Accounts receivable, net | 1,233,916 | 1,268,226 | ||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 121,577 | 90,727 | ||||||
Inventories | 67,173 | 52,123 | ||||||
Prepaid expenses and other | 66,558 | 79,216 | ||||||
Total current assets | 1,926,670 | 1,930,105 | ||||||
Investments, notes and other long-term receivables | 7,634 | 6,799 | ||||||
Property, plant & equipment, net | 122,240 | 123,414 | ||||||
Goodwill | 834,102 | 834,825 | ||||||
Identifiable intangible assets, net | 513,001 | 541,497 | ||||||
Other assets | 31,020 | 29,275 | ||||||
Total assets | $ | 3,434,667 | $ | 3,465,915 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Borrowings under revolving credit facility | $ | — | $ | — | ||||
Current maturities of long-term debt and capital lease obligations | 19,138 | 19,332 | ||||||
Accounts payable | 404,094 | 487,738 | ||||||
Billings in excess of costs and estimated earnings on uncompleted contracts | 384,782 | 381,295 | ||||||
Accrued payroll and benefits | 247,151 | 237,779 | ||||||
Other accrued expenses and liabilities | 191,965 | 172,599 | ||||||
Total current liabilities | 1,247,130 | 1,298,743 | ||||||
Borrowings under revolving credit facility | — | — | ||||||
Long-term debt and capital lease obligations | 321,222 | 335,331 | ||||||
Other long-term obligations | 340,592 | 352,215 | ||||||
Total liabilities | 1,908,944 | 1,986,289 | ||||||
Equity: | ||||||||
Total EMCOR Group, Inc. stockholders’ equity | 1,511,691 | 1,466,265 | ||||||
Noncontrolling interests | 14,032 | 13,361 | ||||||
Total equity | 1,525,723 | 1,479,626 | ||||||
Total liabilities and equity | $ | 3,434,667 | $ | 3,465,915 |
2014 | 2013 | |||||||
Cash flows - operating activities: | ||||||||
Net income including noncontrolling interests | $ | 129,619 | $ | 81,085 | ||||
Depreciation and amortization | 27,211 | 25,907 | ||||||
Amortization of identifiable intangible assets | 28,497 | 21,317 | ||||||
Deferred income taxes | 4,434 | (666 | ) | |||||
Loss on sale of subsidiary | 608 | — | ||||||
Gain on sale of building | (11,749 | ) | — | |||||
Excess tax benefits from share-based compensation | (5,886 | ) | (1,267 | ) | ||||
Equity income from unconsolidated entities | (1,349 | ) | (880 | ) | ||||
Other non-cash items | 8,005 | 2,403 | ||||||
Distributions from unconsolidated entities | 1,640 | 634 | ||||||
Changes in operating assets and liabilities, excluding the effect of businesses acquired | (72,036 | ) | (60,486 | ) | ||||
Net cash provided by operating activities | 108,994 | 68,047 | ||||||
Cash flows - investing activities: | ||||||||
Payments for acquisitions of businesses, net of cash acquired | — | (448,943 | ) | |||||
Proceeds from sale of subsidiary | 1,108 | — | ||||||
Proceeds from sale of building | 11,885 | — | ||||||
Proceeds from sale of property, plant and equipment | 3,138 | 1,171 | ||||||
Purchase of property, plant and equipment | (27,574 | ) | (24,006 | ) | ||||
Maturity of short-term investments | — | 4,616 | ||||||
Investments in and advances to unconsolidated entities and joint ventures | (1,865 | ) | — | |||||
Net cash used in investing activities | (13,308 | ) | (467,162 | ) | ||||
Cash flows - financing activities: | ||||||||
Proceeds from revolving credit facility | — | 250,000 | ||||||
Repayments of long-term debt | (13,074 | ) | (6 | ) | ||||
Repayments of capital lease obligations | (1,272 | ) | (1,256 | ) | ||||
Dividends paid to stockholders | (16,109 | ) | (8,052 | ) | ||||
Repurchase of common stock | (76,395 | ) | (4,998 | ) | ||||
Proceeds from exercise of stock options | 5,044 | 2,320 | ||||||
Payments to satisfy minimum tax withholding | (1,481 | ) | (927 | ) | ||||
Issuance of common stock under employee stock purchase plan | 2,677 | 2,088 | ||||||
Payments for contingent consideration arrangements | — | (537 | ) | |||||
Distributions to noncontrolling interests | (2,750 | ) | (1,300 | ) | ||||
Excess tax benefits from share-based compensation | 5,886 | 1,267 | ||||||
Net cash (used in) provided by financing activities | (97,474 | ) | 238,599 | |||||
Effect of exchange rate changes on cash and cash equivalents | (579 | ) | (750 | ) | ||||
Decrease in cash and cash equivalents | (2,367 | ) | (161,266 | ) | ||||
Cash and cash equivalents at beginning of year | 439,813 | 605,303 | ||||||
Cash and cash equivalents at end of period | $ | 437,446 | $ | 444,037 |
For the three months ended September 30, | ||||||||
2014 | 2013 | |||||||
Revenues from unrelated entities: | ||||||||
United States electrical construction and facilities services | $ | 314,666 | $ | 340,529 | ||||
United States mechanical construction and facilities services | 565,227 | 616,403 | ||||||
United States building services | 427,564 | 457,777 | ||||||
United States industrial services | 172,452 | 110,879 | ||||||
Total United States operations | 1,479,909 | 1,525,588 | ||||||
United Kingdom building services | 86,802 | 79,727 | ||||||
Total worldwide operations | $ | 1,566,711 | $ | 1,605,315 | ||||
For the nine months ended September 30, | ||||||||
2014 | 2013 | |||||||
Revenues from unrelated entities: | ||||||||
United States electrical construction and facilities services | $ | 958,295 | $ | 984,443 | ||||
United States mechanical construction and facilities services | 1,616,794 | 1,741,483 | ||||||
United States building services | 1,293,750 | 1,361,392 | ||||||
United States industrial services | 581,642 | 335,358 | ||||||
Total United States operations | 4,450,481 | 4,422,676 | ||||||
United Kingdom building services | 259,688 | 261,572 | ||||||
Total worldwide operations | $ | 4,710,169 | $ | 4,684,248 | ||||
For the three months ended September 30, | ||||||||
2014 | 2013 | |||||||
Operating income (loss): | ||||||||
United States electrical construction and facilities services | $ | 20,666 | $ | 23,971 | ||||
United States mechanical construction and facilities services | 30,206 | 27,421 | ||||||
United States building services | 19,388 | 23,285 | ||||||
United States industrial services | 7,385 | 308 | ||||||
Total United States operations | 77,645 | 74,985 | ||||||
United Kingdom building services | 3,082 | 3,192 | ||||||
Corporate administration | (18,481 | ) | (19,532 | ) | ||||
Restructuring expenses | (398 | ) | (601 | ) | ||||
Gain on sale of building | 11,749 | — | ||||||
Total worldwide operations | 73,597 | 58,044 | ||||||
Other corporate items: | ||||||||
Interest expense | (2,397 | ) | (2,351 | ) | ||||
Interest income | 186 | 234 | ||||||
Income from continuing operations before income taxes | $ | 71,386 | $ | 55,927 | ||||
For the nine months ended September 30, | ||||||||
2014 | 2013 | |||||||
Operating income (loss): | ||||||||
United States electrical construction and facilities services | $ | 67,162 | $ | 68,147 | ||||
United States mechanical construction and facilities services | 78,052 | 56,809 | ||||||
United States building services | 53,606 | 52,928 | ||||||
United States industrial services | 43,155 | 26,320 | ||||||
Total United States operations | 241,975 | 204,204 | ||||||
United Kingdom building services | 12,647 | 11,845 | ||||||
Corporate administration | (50,192 | ) | (50,953 | ) | ||||
Restructuring expenses | (799 | ) | (652 | ) | ||||
Gain on sale of building | 11,749 | — | ||||||
Total worldwide operations | 215,380 | 164,444 | ||||||
Other corporate items: | ||||||||
Interest expense | (6,887 | ) | (5,978 | ) | ||||
Interest income | 641 | 862 | ||||||
Income from continuing operations before income taxes | $ | 209,134 | $ | 159,328 | ||||
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
GAAP operating income | $ | 73,597 | $ | 58,044 | $ | 215,380 | $ | 164,444 | ||||||||
Transaction expenses related to the acquisition of RepconStrickland, Inc. | — | 4,689 | — | 6,050 | ||||||||||||
Gain on sale of building | (11,749 | ) | — | (11,749 | ) | — | ||||||||||
Non-GAAP operating income, excluding RepconStrickland transaction expenses and gain on sale of building | $ | 61,848 | $ | 62,733 | $ | 203,631 | $ | 170,494 |
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
GAAP net income attributable to EMCOR Group, Inc. | $ | 45,024 | $ | 26,690 | $ | 126,198 | $ | 77,871 | ||||||||
Transaction expenses related to the acquisition of RepconStrickland, Inc. (1) | — | 2,898 | — | 4,256 | ||||||||||||
Gain on sale of building (2) | (7,126 | ) | — | (7,126 | ) | — | ||||||||||
Non-GAAP net income attributable to EMCOR Group, Inc., excluding RepconStrickland transaction expenses and gain on sale of building | $ | 37,898 | $ | 29,588 | $ | 119,072 | $ | 82,127 |
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
GAAP diluted EPS from continuing operations | $ | 0.68 | $ | 0.43 | $ | 1.92 | $ | 1.40 | ||||||||
Transaction expenses related to the acquisition of RepconStrickland, Inc. (1) | — | 0.04 | — | 0.06 | ||||||||||||
Gain on sale of building (2) | (0.11 | ) | — | (0.11 | ) | — | ||||||||||
Non-GAAP diluted earnings per common share, excluding RepconStrickland transaction expenses and gain on sale of building | $ | 0.57 | $ | 0.48 | $ | 1.82 | $ | 1.46 |
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