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: October 26, 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 THIRD QUARTER 2017 RESULTS |
- Record Quarterly Diluted EPS from Continuing Operations of $1.09 - |
- Total Backlog of $3.96 Billion; 1.5% Increase Year-over-Year - |
- Maintains 2017 Revenue Guidance and Raises 2017 Diluted EPS Guidance Range - |
- Board Authorizes an Additional $100 Million Share Repurchase Program - |
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, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenues | $ | 1,886,691 | $ | 1,923,174 | $ | 5,674,360 | $ | 5,601,560 | ||||||||
Cost of sales | 1,591,621 | 1,655,130 | 4,838,449 | 4,835,667 | ||||||||||||
Gross profit | 295,070 | 268,044 | 835,911 | 765,893 | ||||||||||||
Selling, general and administrative expenses | 188,565 | 181,441 | 552,903 | 530,654 | ||||||||||||
Restructuring expenses | 46 | 539 | 954 | 1,271 | ||||||||||||
Operating income | 106,459 | 86,064 | 282,054 | 233,968 | ||||||||||||
Interest expense | (3,324 | ) | (3,479 | ) | (9,464 | ) | (8,973 | ) | ||||||||
Interest income | 277 | 161 | 607 | 518 | ||||||||||||
Income from continuing operations before income taxes | 103,412 | 82,746 | 273,197 | 225,513 | ||||||||||||
Income tax provision | 38,608 | 30,783 | 98,473 | 82,663 | ||||||||||||
Income from continuing operations | 64,804 | 51,963 | 174,724 | 142,850 | ||||||||||||
Loss from discontinued operation, net of income taxes | (207 | ) | (406 | ) | (729 | ) | (1,584 | ) | ||||||||
Net income including noncontrolling interests | 64,597 | 51,557 | 173,995 | 141,266 | ||||||||||||
Less: Net income attributable to noncontrolling interests | — | (26 | ) | — | (7 | ) | ||||||||||
Net income attributable to EMCOR Group, Inc. | $ | 64,597 | $ | 51,531 | $ | 173,995 | $ | 141,259 | ||||||||
Basic earnings (loss) per common share: | ||||||||||||||||
From continuing operations | $ | 1.10 | $ | 0.85 | $ | 2.94 | $ | 2.35 | ||||||||
From discontinued operation | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.03 | ) | ||||
Diluted earnings (loss) per common share: | ||||||||||||||||
From continuing operations | $ | 1.09 | $ | 0.85 | $ | 2.93 | $ | 2.33 | ||||||||
From discontinued operation | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.03 | ) | ||||
Weighted average shares of common stock outstanding: | ||||||||||||||||
Basic | 59,061,768 | 60,889,484 | 59,371,672 | 60,866,532 | ||||||||||||
Diluted | 59,419,200 | 61,318,057 | 59,721,185 | 61,290,388 | ||||||||||||
Dividends declared per common share | $ | 0.08 | $ | 0.08 | $ | 0.24 | $ | 0.24 |
September 30, 2017 (Unaudited) | December 31, 2016 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 480,496 | $ | 464,617 | ||||
Accounts receivable, net | 1,537,819 | 1,495,431 | ||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 135,602 | 130,697 | ||||||
Inventories | 43,653 | 37,426 | ||||||
Prepaid expenses and other | 34,402 | 40,944 | ||||||
Total current assets | 2,231,972 | 2,169,115 | ||||||
Investments, notes and other long-term receivables | 7,604 | 8,792 | ||||||
Property, plant & equipment, net | 126,563 | 127,951 | ||||||
Goodwill | 1,010,399 | 979,628 | ||||||
Identifiable intangible assets, net | 497,278 | 487,398 | ||||||
Other assets | 92,505 | 79,554 | ||||||
Total assets | $ | 3,966,321 | $ | 3,852,438 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Current maturities of long-term debt and capital lease obligations | $ | 15,364 | $ | 15,030 | ||||
Accounts payable | 485,701 | 501,213 | ||||||
Billings in excess of costs and estimated earnings on uncompleted contracts | 532,386 | 489,242 | ||||||
Accrued payroll and benefits | 309,237 | 310,514 | ||||||
Other accrued expenses and liabilities | 209,591 | 195,775 | ||||||
Total current liabilities | 1,552,279 | 1,511,774 | ||||||
Borrowings under revolving credit facility | 125,000 | 125,000 | ||||||
Long-term debt and capital lease obligations | 273,506 | 283,296 | ||||||
Other long-term obligations | 397,671 | 394,426 | ||||||
Total liabilities | 2,348,456 | 2,314,496 | ||||||
Equity: | ||||||||
Total EMCOR Group, Inc. stockholders’ equity | 1,617,012 | 1,537,089 | ||||||
Noncontrolling interests | 853 | 853 | ||||||
Total equity | 1,617,865 | 1,537,942 | ||||||
Total liabilities and equity | $ | 3,966,321 | $ | 3,852,438 |
2017 | 2016 | |||||||
Cash flows - operating activities: | ||||||||
Net income including noncontrolling interests | $ | 173,995 | $ | 141,266 | ||||
Depreciation and amortization | 30,235 | 29,117 | ||||||
Amortization of identifiable intangible assets | 36,320 | 30,678 | ||||||
Provision for doubtful accounts | 6,027 | 3,962 | ||||||
Deferred income taxes | (5,991 | ) | (830 | ) | ||||
Excess tax benefits from share-based compensation | (1,565 | ) | (2,062 | ) | ||||
Equity income from unconsolidated entities | (1,132 | ) | (719 | ) | ||||
Other non-cash items | 4,735 | 6,844 | ||||||
Distributions from unconsolidated entities | 2,308 | 863 | ||||||
Changes in operating assets and liabilities, excluding the effect of businesses acquired | (6,648 | ) | (80,195 | ) | ||||
Net cash provided by operating activities | 238,284 | 128,924 | ||||||
Cash flows - investing activities: | ||||||||
Payments for acquisitions of businesses, net of cash acquired | (82,724 | ) | (232,883 | ) | ||||
Proceeds from sale of property, plant and equipment | 2,125 | 1,850 | ||||||
Purchase of property, plant and equipment | (26,113 | ) | (29,306 | ) | ||||
Net cash used in investing activities | (106,712 | ) | (260,339 | ) | ||||
Cash flows - financing activities: | ||||||||
Proceeds from revolving credit facility | — | 220,000 | ||||||
Repayments of revolving credit facility | — | (95,000 | ) | |||||
Borrowings from long-term debt | — | 400,000 | ||||||
Repayments of long-term debt and debt issuance costs | (11,401 | ) | (317,987 | ) | ||||
Repayments of capital lease obligations | (1,079 | ) | (1,144 | ) | ||||
Dividends paid to stockholders | (14,266 | ) | (14,598 | ) | ||||
Repurchase of common stock | (90,944 | ) | (34,805 | ) | ||||
Proceeds from exercise of stock options | — | 508 | ||||||
Payments to satisfy minimum tax withholding | (3,376 | ) | (4,166 | ) | ||||
Issuance of common stock under employee stock purchase plan | 3,459 | 3,583 | ||||||
Payments for contingent consideration arrangements | (1,017 | ) | — | |||||
Distributions to noncontrolling interests | — | (2,050 | ) | |||||
Net cash (used in) provided by financing activities | (118,624 | ) | 154,341 | |||||
Effect of exchange rate changes on cash and cash equivalents | 2,931 | (5,199 | ) | |||||
Increase in cash and cash equivalents | 15,879 | 17,727 | ||||||
Cash and cash equivalents at beginning of year | 464,617 | 486,831 | ||||||
Cash and cash equivalents at end of period | $ | 480,496 | $ | 504,558 |
For the three months ended September 30, | ||||||||
2017 | 2016 | |||||||
Revenues from unrelated entities: | ||||||||
United States electrical construction and facilities services | $ | 457,919 | $ | 458,553 | ||||
United States mechanical construction and facilities services | 760,084 | 691,818 | ||||||
United States building services | 437,107 | 460,715 | ||||||
United States industrial services | 145,679 | 239,052 | ||||||
Total United States operations | 1,800,789 | 1,850,138 | ||||||
United Kingdom building services | 85,902 | 73,036 | ||||||
Total worldwide operations | $ | 1,886,691 | $ | 1,923,174 | ||||
For the nine months ended September 30, | ||||||||
2017 | 2016 | |||||||
Revenues from unrelated entities: | ||||||||
United States electrical construction and facilities services | $ | 1,350,157 | $ | 1,227,474 | ||||
United States mechanical construction and facilities services | 2,173,030 | 1,925,793 | ||||||
United States building services | 1,315,401 | 1,366,973 | ||||||
United States industrial services | 591,694 | 830,064 | ||||||
Total United States operations | 5,430,282 | 5,350,304 | ||||||
United Kingdom building services | 244,078 | 251,256 | ||||||
Total worldwide operations | $ | 5,674,360 | $ | 5,601,560 | ||||
For the three months ended September 30, | ||||||||
2017 | 2016 | |||||||
Operating income (loss): | ||||||||
United States electrical construction and facilities services | $ | 46,583 | $ | 30,927 | ||||
United States mechanical construction and facilities services | 57,484 | 38,890 | ||||||
United States building services | 25,981 | 23,125 | ||||||
United States industrial services | (4,844 | ) | 14,586 | |||||
Total United States operations | 125,204 | 107,528 | ||||||
United Kingdom building services | 3,933 | 2,591 | ||||||
Corporate administration | (22,632 | ) | (23,516 | ) | ||||
Restructuring expenses | (46 | ) | (539 | ) | ||||
Total worldwide operations | 106,459 | 86,064 | ||||||
Other corporate items: | ||||||||
Interest expense | (3,324 | ) | (3,479 | ) | ||||
Interest income | 277 | 161 | ||||||
Income from continuing operations before income taxes | $ | 103,412 | $ | 82,746 | ||||
For the nine months ended September 30, | ||||||||
2017 | 2016 | |||||||
Operating income (loss): | ||||||||
United States electrical construction and facilities services | $ | 109,735 | $ | 70,645 | ||||
United States mechanical construction and facilities services | 150,971 | 100,607 | ||||||
United States building services | 60,375 | 55,658 | ||||||
United States industrial services | 16,573 | 66,600 | ||||||
Total United States operations | 337,654 | 293,510 | ||||||
United Kingdom building services | 9,109 | 9,160 | ||||||
Corporate administration | (63,755 | ) | (67,431 | ) | ||||
Restructuring expenses | (954 | ) | (1,271 | ) | ||||
Total worldwide operations | 282,054 | 233,968 | ||||||
Other corporate items: | ||||||||
Interest expense | (9,464 | ) | (8,973 | ) | ||||
Interest income | 607 | 518 | ||||||
Income from continuing operations before income taxes | $ | 273,197 | $ | 225,513 | ||||
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
GAAP operating income | $ | 106,459 | $ | 86,064 | $ | 282,054 | $ | 233,968 | ||||||||
Transaction expenses related to the acquisition of Ardent | — | — | — | 3,838 | ||||||||||||
Non-GAAP operating income, excluding Ardent transaction expenses | $ | 106,459 | $ | 86,064 | $ | 282,054 | $ | 237,806 |
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
GAAP net income from continuing operations attributable to EMCOR Group, Inc. (1) | $ | 64,804 | $ | 51,937 | $ | 174,724 | $ | 142,843 | ||||||||
Transaction expenses related to the acquisition of Ardent (2) | — | — | — | 2,328 | ||||||||||||
Non-GAAP net income from continuing operations attributable to EMCOR Group, Inc., excluding Ardent transaction expenses | $ | 64,804 | $ | 51,937 | $ | 174,724 | $ | 145,171 |
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
GAAP diluted earnings per common share from continuing operations | $ | 1.09 | $ | 0.85 | $ | 2.93 | $ | 2.33 | ||||||||
Transaction expenses related to the acquisition of Ardent (1) | — | — | — | 0.04 | ||||||||||||
Non-GAAP diluted earnings per common share from continuing operations, excluding Ardent transaction expenses | $ | 1.09 | $ | 0.85 | $ | 2.93 | $ | 2.37 |
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