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 25, 2018 | By: | /s/ ANTHONY J. GUZZI | |
Anthony J. Guzzi | |||
Chairman, 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: Jamie Baird (212) 850-5600 | ||
LAK Public Relations, Inc. Media: Lisa Linden / David Simpson (212) 575-4545 |
EMCOR GROUP, INC. REPORTS THIRD QUARTER 2018 RESULTS |
- Record Quarterly Revenues of $2.05 Billion, 8.5% Increase Year-over-Year - |
- Record Quarterly Diluted EPS from Cont. Operations of $1.36, 24.8% Increase Year-over-Year - |
- Increases Full-Year Revenue Guidance and Diluted EPS Guidance Range - |
- Board Authorizes an Additional $200 Million Share Repurchase Program - |
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, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Revenues | $ | 2,047,049 | $ | 1,886,691 | $ | 5,901,323 | $ | 5,674,360 | ||||||||
Cost of sales | 1,737,710 | 1,591,621 | 5,032,021 | 4,838,449 | ||||||||||||
Gross profit | 309,339 | 295,070 | 869,302 | 835,911 | ||||||||||||
Selling, general and administrative expenses | 197,334 | 188,980 | 578,266 | 554,112 | ||||||||||||
Restructuring expenses | 229 | 46 | 693 | 954 | ||||||||||||
Impairment loss on identifiable intangible assets | — | — | 907 | — | ||||||||||||
Operating income | 111,776 | 106,044 | 289,436 | 280,845 | ||||||||||||
Net periodic pension (cost) income | 615 | 415 | 2,069 | 1,209 | ||||||||||||
Interest expense | (3,588 | ) | (3,324 | ) | (10,041 | ) | (9,464 | ) | ||||||||
Interest income | 852 | 277 | 2,030 | 607 | ||||||||||||
Income from continuing operations before income taxes | 109,655 | 103,412 | 283,494 | 273,197 | ||||||||||||
Income tax provision | 29,711 | 38,608 | 76,873 | 98,473 | ||||||||||||
Income from continuing operations | 79,944 | 64,804 | 206,621 | 174,724 | ||||||||||||
Loss from discontinued operation, net of income taxes | (523 | ) | (207 | ) | (1,010 | ) | (729 | ) | ||||||||
Net income including noncontrolling interests | 79,421 | 64,597 | 205,611 | 173,995 | ||||||||||||
Less: Net income attributable to noncontrolling interests | (48 | ) | — | (48 | ) | — | ||||||||||
Net income attributable to EMCOR Group, Inc. | $ | 79,373 | $ | 64,597 | $ | 205,563 | $ | 173,995 | ||||||||
Basic earnings (loss) per common share: | ||||||||||||||||
From continuing operations | $ | 1.37 | $ | 1.10 | $ | 3.54 | $ | 2.94 | ||||||||
From discontinued operation | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.02 | ) | $ | (0.01 | ) | ||||
Diluted earnings (loss) per common share: | ||||||||||||||||
From continuing operations | $ | 1.36 | $ | 1.09 | $ | 3.52 | $ | 2.93 | ||||||||
From discontinued operation | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.02 | ) | $ | (0.01 | ) | ||||
Amounts attributable to EMCOR Group, Inc. common stockholders: | ||||||||||||||||
Net income from continuing operations attributable to EMCOR Group, Inc. | $ | 79,896 | $ | 64,804 | $ | 206,573 | $ | 174,724 | ||||||||
Loss from discontinued operation, net of income taxes | (523 | ) | (207 | ) | (1,010 | ) | (729 | ) | ||||||||
Net income attributable to EMCOR Group, Inc. | $ | 79,373 | $ | 64,597 | $ | 205,563 | $ | 173,995 | ||||||||
Weighted average shares of common stock outstanding: | ||||||||||||||||
Basic | 58,208,203 | 59,061,768 | 58,422,928 | 59,371,672 | ||||||||||||
Diluted | 58,541,310 | 59,419,200 | 58,754,867 | 59,721,185 | ||||||||||||
Dividends declared per common share | $ | 0.08 | $ | 0.08 | $ | 0.24 | $ | 0.24 | ||||||||
September 30, 2018 (Unaudited) | December 31, 2017 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 353,912 | $ | 467,430 | ||||
Accounts receivable, net | 1,715,462 | 1,607,922 | ||||||
Contract assets | 168,665 | 122,621 | ||||||
Inventories | 41,932 | 42,724 | ||||||
Prepaid expenses and other | 44,221 | 43,812 | ||||||
Total current assets | 2,324,192 | 2,284,509 | ||||||
Investments, notes and other long-term receivables | 3,542 | 2,309 | ||||||
Property, plant & equipment, net | 128,765 | 127,156 | ||||||
Goodwill | 978,243 | 964,893 | ||||||
Identifiable intangible assets, net | 471,447 | 495,036 | ||||||
Other assets | 89,704 | 92,001 | ||||||
Total assets | $ | 3,995,893 | $ | 3,965,904 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Current maturities of long-term debt and capital lease obligations | $ | 15,769 | $ | 15,364 | ||||
Accounts payable | 529,618 | 567,840 | ||||||
Contract liabilities | 531,284 | 524,156 | ||||||
Accrued payroll and benefits | 343,797 | 322,865 | ||||||
Other accrued expenses and liabilities | 169,100 | 220,727 | ||||||
Total current liabilities | 1,589,568 | 1,650,952 | ||||||
Borrowings under revolving credit facility | 25,000 | 25,000 | ||||||
Long-term debt and capital lease obligations | 258,569 | 269,786 | ||||||
Other long-term obligations | 343,630 | 346,049 | ||||||
Total liabilities | 2,216,767 | 2,291,787 | ||||||
Equity: | ||||||||
Total EMCOR Group, Inc. stockholders’ equity | 1,778,228 | 1,673,267 | ||||||
Noncontrolling interests | 898 | 850 | ||||||
Total equity | 1,779,126 | 1,674,117 | ||||||
Total liabilities and equity | $ | 3,995,893 | $ | 3,965,904 |
2018 | 2017 | |||||||
Cash flows - operating activities: | ||||||||
Net income including noncontrolling interests | $ | 205,611 | $ | 173,995 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 28,685 | 30,235 | ||||||
Amortization of identifiable intangible assets | 31,482 | 36,320 | ||||||
Provision for doubtful accounts | 261 | 6,027 | ||||||
Deferred income taxes | 4,685 | (5,991 | ) | |||||
Excess tax benefits from share-based compensation | (1,065 | ) | (1,565 | ) | ||||
Equity income from unconsolidated entities | (247 | ) | (1,132 | ) | ||||
Non-cash expense for impairment of identifiable intangible assets | 907 | — | ||||||
Non-cash share-based compensation expense | 8,502 | 7,565 | ||||||
Distributions from unconsolidated entities | 2,442 | 2,308 | ||||||
Other reconciling items | 632 | (2,830 | ) | |||||
Changes in operating assets and liabilities, excluding the effect of businesses acquired | (216,003 | ) | (6,609 | ) | ||||
Net cash provided by operating activities | 65,892 | 238,323 | ||||||
Cash flows - investing activities: | ||||||||
Payments for acquisitions of businesses, net of cash acquired | (25,710 | ) | (82,724 | ) | ||||
Proceeds from sale of property, plant and equipment | 915 | 2,125 | ||||||
Purchase of property, plant and equipment | (28,674 | ) | (26,113 | ) | ||||
Investments in and advances to unconsolidated entities | (3,484 | ) | — | |||||
Distributions from unconsolidated entities | 82 | — | ||||||
Net cash used in investing activities | (56,871 | ) | (106,712 | ) | ||||
Cash flows - financing activities: | ||||||||
Repayments of long-term debt and debt issuance costs | (11,434 | ) | (11,401 | ) | ||||
Repayments of capital lease obligations | (1,050 | ) | (1,079 | ) | ||||
Dividends paid to stockholders | (14,036 | ) | (14,266 | ) | ||||
Repurchase of common stock | (90,804 | ) | (90,944 | ) | ||||
Taxes paid related to net share settlements of equity awards | (3,745 | ) | (3,376 | ) | ||||
Issuance of common stock under employee stock purchase plan | 4,286 | 3,459 | ||||||
Payments for contingent consideration arrangements | (3,300 | ) | (1,017 | ) | ||||
Net cash used in financing activities | (120,083 | ) | (118,624 | ) | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,985 | ) | 2,931 | |||||
(Decrease) increase in cash, cash equivalents and restricted cash | (113,047 | ) | 15,918 | |||||
Cash, cash equivalents and restricted cash at beginning of year | 469,388 | 466,660 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 356,341 | $ | 482,578 |
For the three months ended September 30, | ||||||||
2018 | 2017 | |||||||
Revenues from unrelated entities: | ||||||||
United States electrical construction and facilities services | $ | 485,974 | $ | 457,919 | ||||
United States mechanical construction and facilities services | 772,332 | 760,084 | ||||||
United States building services | 473,701 | 437,107 | ||||||
United States industrial services | 214,476 | 145,679 | ||||||
Total United States operations | 1,946,483 | 1,800,789 | ||||||
United Kingdom building services | 100,566 | 85,902 | ||||||
Total worldwide operations | $ | 2,047,049 | $ | 1,886,691 | ||||
For the nine months ended September 30, | ||||||||
2018 | 2017 | |||||||
Revenues from unrelated entities: | ||||||||
United States electrical construction and facilities services | $ | 1,420,268 | $ | 1,350,157 | ||||
United States mechanical construction and facilities services | 2,211,836 | 2,173,030 | ||||||
United States building services | 1,389,486 | 1,315,401 | ||||||
United States industrial services | 566,770 | 591,694 | ||||||
Total United States operations | 5,588,360 | 5,430,282 | ||||||
United Kingdom building services | 312,963 | 244,078 | ||||||
Total worldwide operations | $ | 5,901,323 | $ | 5,674,360 | ||||
For the three months ended September 30, | ||||||||
2018 | 2017 | |||||||
Operating income (loss): | ||||||||
United States electrical construction and facilities services | $ | 34,473 | $ | 46,583 | ||||
United States mechanical construction and facilities services | 58,689 | 57,503 | ||||||
United States building services | 29,315 | 26,035 | ||||||
United States industrial services | 8,184 | (4,844 | ) | |||||
Total United States operations | 130,661 | 125,277 | ||||||
United Kingdom building services | 4,457 | 3,445 | ||||||
Corporate administration | (23,113 | ) | (22,632 | ) | ||||
Restructuring expenses | (229 | ) | (46 | ) | ||||
Total worldwide operations | 111,776 | 106,044 | ||||||
Other corporate items: | ||||||||
Net periodic pension (cost) income | 615 | 415 | ||||||
Interest expense | (3,588 | ) | (3,324 | ) | ||||
Interest income | 852 | 277 | ||||||
Income from continuing operations before income taxes | $ | 109,655 | $ | 103,412 | ||||
For the nine months ended September 30, | ||||||||
2018 | 2017 | |||||||
Operating income (loss): | ||||||||
United States electrical construction and facilities services | $ | 106,309 | $ | 109,735 | ||||
United States mechanical construction and facilities services | 155,864 | 151,028 | ||||||
United States building services | 68,822 | 60,537 | ||||||
United States industrial services | 12,721 | 16,573 | ||||||
Total United States operations | 343,716 | 337,873 | ||||||
United Kingdom building services | 12,828 | 7,681 | ||||||
Corporate administration | (65,508 | ) | (63,755 | ) | ||||
Restructuring expenses | (693 | ) | (954 | ) | ||||
Impairment loss on identifiable intangible assets | (907 | ) | — | |||||
Total worldwide operations | 289,436 | 280,845 | ||||||
Other corporate items: | ||||||||
Net periodic pension (cost) income | 2,069 | 1,209 | ||||||
Interest expense | (10,041 | ) | (9,464 | ) | ||||
Interest income | 2,030 | 607 | ||||||
Income from continuing operations before income taxes | $ | 283,494 | $ | 273,197 | ||||
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
GAAP operating income | $ | 111,776 | $ | 106,044 | $ | 289,436 | $ | 280,845 | ||||||||
Impairment loss on identifiable intangible assets | — | — | 907 | — | ||||||||||||
Non-GAAP operating income, excluding impairment loss on identifiable intangible assets | $ | 111,776 | $ | 106,044 | $ | 290,343 | $ | 280,845 |
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
GAAP net income from continuing operations attributable to EMCOR Group, Inc. (1) | $ | 79,896 | $ | 64,804 | $ | 206,573 | $ | 174,724 | ||||||||
Impairment loss on identifiable intangible assets (2) | — | — | 907 | — | ||||||||||||
Non-GAAP net income from continuing operations attributable to EMCOR Group, Inc., excluding impairment loss on identifiable intangible assets | $ | 79,896 | $ | 64,804 | $ | 207,480 | $ | 174,724 |
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
GAAP diluted earnings per common share from continuing operations | $ | 1.36 | $ | 1.09 | $ | 3.52 | $ | 2.93 | ||||||||
Impairment loss on identifiable intangible assets (1) | — | — | 0.02 | — | ||||||||||||
Non-GAAP diluted earnings per common share from continuing operations, excluding impairment loss on identifiable intangible assets | $ | 1.36 | $ | 1.09 | $ | 3.54 | $ | 2.93 |
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