FORM |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
(Address of Principal Executive Offices) | (Zip Code) |
(Registrant’s Telephone Number, Including Area Code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||
Emerging growth company |
(d) Exhibits | |
Exhibit Number | Description |
99.1 |
EMCOR Group, Inc. | |||
Dated: July 30, 2019 | 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) 850-5659 |
EMCOR GROUP, INC. REPORTS SECOND QUARTER 2019 RESULTS |
- Record Quarterly Revenues of $2.32 billion, 19.0% Increase Year-over-Year - |
- Record Quarterly Diluted EPS from Cont. Operations of $1.49, 23.1% Increase Year-over-Year - |
- Total Remaining Performance Obligations of $4.23 billion, 15.1% Increase Year-over-Year - |
- Increases 2019 Revenue Guidance Range to $8.8-$8.9 billion from $8.5-$8.6 billion - |
- Increases 2019 Diluted EPS Guidance Range to $5.50-$5.75 from $5.00-$5.50 - |
EMCOR Reports Second Quarter Results | Page 2 |
EMCOR Reports Second Quarter Results | Page 3 |
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenues | $ | 2,324,202 | $ | 1,953,886 | $ | 4,482,930 | $ | 3,854,274 | ||||||||
Cost of sales | 1,977,822 | 1,663,042 | 3,827,796 | 3,294,311 | ||||||||||||
Gross profit | 346,380 | 290,844 | 655,134 | 559,963 | ||||||||||||
Selling, general and administrative expenses | 226,248 | 189,907 | 432,417 | 380,932 | ||||||||||||
Restructuring expenses | 173 | 374 | 448 | 464 | ||||||||||||
Impairment loss on identifiable intangible assets | — | 907 | — | 907 | ||||||||||||
Operating income | 119,959 | 99,656 | 222,269 | 177,660 | ||||||||||||
Net periodic pension (cost) income | 400 | 717 | 806 | 1,454 | ||||||||||||
Interest expense, net | (3,231 | ) | (2,823 | ) | (6,054 | ) | (5,275 | ) | ||||||||
Income from continuing operations before income taxes | 117,128 | 97,550 | 217,021 | 173,839 | ||||||||||||
Income tax provision | 33,156 | 26,529 | 60,639 | 47,162 | ||||||||||||
Income from continuing operations | 83,972 | 71,021 | 156,382 | 126,677 | ||||||||||||
Loss from discontinued operation, net of income taxes | — | (205 | ) | — | (487 | ) | ||||||||||
Net income including noncontrolling interests | 83,972 | 70,816 | 156,382 | 126,190 | ||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | — | ||||||||||||
Net income attributable to EMCOR Group, Inc. | $ | 83,972 | $ | 70,816 | $ | 156,382 | $ | 126,190 | ||||||||
Basic earnings (loss) per common share: | ||||||||||||||||
From continuing operations | $ | 1.49 | $ | 1.22 | $ | 2.78 | $ | 2.16 | ||||||||
From discontinued operation | $ | — | $ | (0.00 | ) | $ | — | $ | (0.01 | ) | ||||||
Diluted earnings (loss) per common share: | ||||||||||||||||
From continuing operations | $ | 1.49 | $ | 1.21 | $ | 2.77 | $ | 2.15 | ||||||||
From discontinued operation | $ | — | $ | (0.00 | ) | $ | — | $ | (0.01 | ) | ||||||
Weighted average shares of common stock outstanding: | ||||||||||||||||
Basic | 56,181,864 | 58,332,934 | 56,175,219 | 58,531,150 | ||||||||||||
Diluted | 56,499,514 | 58,670,595 | 56,461,977 | 58,862,505 | ||||||||||||
Dividends declared per common share | $ | 0.08 | $ | 0.08 | $ | 0.16 | $ | 0.16 | ||||||||
June 30, 2019 (Unaudited) | December 31, 2018 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 213,374 | $ | 363,907 | ||||
Accounts receivable, net | 1,946,811 | 1,773,620 | ||||||
Contract assets | 179,439 | 158,243 | ||||||
Inventories | 39,180 | 42,321 | ||||||
Prepaid expenses and other | 41,831 | 48,116 | ||||||
Total current assets | 2,420,635 | 2,386,207 | ||||||
Investments, notes and other long-term receivables | 1,904 | 2,899 | ||||||
Property, plant & equipment, net | 145,638 | 134,351 | ||||||
Operating lease right-of-use assets | 233,173 | — | ||||||
Goodwill | 1,013,822 | 990,887 | ||||||
Identifiable intangible assets, net | 488,017 | 488,286 | ||||||
Other assets | 90,389 | 86,177 | ||||||
Total assets | $ | 4,393,578 | $ | 4,088,807 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Current maturities of long-term debt and finance lease liabilities | $ | 18,385 | $ | 16,013 | ||||
Accounts payable | 579,461 | 652,091 | ||||||
Contract liabilities | 544,346 | 552,290 | ||||||
Accrued payroll and benefits | 327,006 | 343,069 | ||||||
Other accrued expenses and liabilities | 185,398 | 170,935 | ||||||
Operating lease liabilities, current | 49,970 | — | ||||||
Total current liabilities | 1,704,566 | 1,734,398 | ||||||
Borrowings under revolving credit facility | 25,000 | 25,000 | ||||||
Long-term debt and finance lease liabilities | 251,448 | 254,764 | ||||||
Operating lease liabilities, long-term | 195,149 | — | ||||||
Other long-term obligations | 322,584 | 333,204 | ||||||
Total liabilities | 2,498,747 | 2,347,366 | ||||||
Equity: | ||||||||
Total EMCOR Group, Inc. stockholders’ equity | 1,894,185 | 1,740,545 | ||||||
Noncontrolling interests | 646 | 896 | ||||||
Total equity | 1,894,831 | 1,741,441 | ||||||
Total liabilities and equity | $ | 4,393,578 | $ | 4,088,807 |
2019 | 2018 | |||||||
Cash flows - operating activities: | ||||||||
Net income including noncontrolling interests | $ | 156,382 | $ | 126,190 | ||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||
Depreciation and amortization | 21,391 | 19,233 | ||||||
Amortization of identifiable intangible assets | 23,169 | 21,352 | ||||||
Provision for doubtful accounts | 851 | 7 | ||||||
Deferred income taxes | (920 | ) | 4,855 | |||||
Excess tax benefits from share-based compensation | (593 | ) | (1,065 | ) | ||||
Equity loss (income) from unconsolidated entities | 835 | (290 | ) | |||||
Non-cash expense from contingent consideration arrangements | 1,203 | 186 | ||||||
Non-cash expense for impairment of identifiable intangible assets | — | 907 | ||||||
Non-cash share-based compensation expense | 6,225 | 5,956 | ||||||
Distributions from unconsolidated entities | 871 | 1,847 | ||||||
Other reconciling items | 111 | 389 | ||||||
Changes in operating assets and liabilities, excluding the effect of businesses acquired | (251,723 | ) | (212,217 | ) | ||||
Net cash used in operating activities | (42,198 | ) | (32,650 | ) | ||||
Cash flows - investing activities: | ||||||||
Payments for acquisitions of businesses, net of cash acquired | (63,991 | ) | (25,207 | ) | ||||
Proceeds from sale of property, plant and equipment | 1,326 | 605 | ||||||
Purchase of property, plant and equipment | (22,455 | ) | (15,914 | ) | ||||
Investments in and advances to unconsolidated entities | (794 | ) | (3,484 | ) | ||||
Distributions from unconsolidated entities | 84 | 83 | ||||||
Net cash used in investing activities | (85,830 | ) | (43,917 | ) | ||||
Cash flows - financing activities: | ||||||||
Repayments of long-term debt and debt issuance costs | (7,601 | ) | (7,634 | ) | ||||
Repayments of finance lease liabilities | (2,151 | ) | (696 | ) | ||||
Dividends paid to stockholders | (8,967 | ) | (9,381 | ) | ||||
Repurchase of common stock | — | (60,508 | ) | |||||
Taxes paid related to net share settlements of equity awards | (3,735 | ) | (3,745 | ) | ||||
Issuance of common stock under employee stock purchase plan | 2,969 | 2,758 | ||||||
Payments for contingent consideration arrangements | (2,508 | ) | (3,298 | ) | ||||
Distributions to noncontrolling interests | (250 | ) | — | |||||
Net cash used in financing activities | (22,243 | ) | (82,504 | ) | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (175 | ) | (1,121 | ) | ||||
Decrease in cash, cash equivalents and restricted cash | (150,446 | ) | (160,192 | ) | ||||
Cash, cash equivalents and restricted cash at beginning of year | 366,214 | 469,388 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 215,768 | $ | 309,196 |
For the three months ended June 30, | ||||||||
2019 | 2018 | |||||||
Revenues from unrelated entities: | ||||||||
United States electrical construction and facilities services | $ | 569,402 | $ | 479,542 | ||||
United States mechanical construction and facilities services | 823,086 | 723,882 | ||||||
United States building services | 523,698 | 461,033 | ||||||
United States industrial services | 295,460 | 183,922 | ||||||
Total United States operations | 2,211,646 | 1,848,379 | ||||||
United Kingdom building services | 112,556 | 105,507 | ||||||
Total worldwide operations | $ | 2,324,202 | $ | 1,953,886 | ||||
For the six months ended June 30, | ||||||||
2019 | 2018 | |||||||
Revenues from unrelated entities: | ||||||||
United States electrical construction and facilities services | $ | 1,097,472 | $ | 934,294 | ||||
United States mechanical construction and facilities services | 1,575,495 | 1,408,632 | ||||||
United States building services | 1,035,777 | 915,785 | ||||||
United States industrial services | 554,105 | 383,166 | ||||||
Total United States operations | 4,262,849 | 3,641,877 | ||||||
United Kingdom building services | 220,081 | 212,397 | ||||||
Total worldwide operations | $ | 4,482,930 | $ | 3,854,274 | ||||
For the three months ended June 30, | ||||||||
2019 | 2018 | |||||||
Operating income (loss): | ||||||||
United States electrical construction and facilities services | $ | 43,799 | $ | 35,985 | ||||
United States mechanical construction and facilities services | 53,954 | 57,417 | ||||||
United States building services | 28,001 | 22,430 | ||||||
United States industrial services | 16,012 | 1,234 | ||||||
Total United States operations | 141,766 | 117,066 | ||||||
United Kingdom building services | 5,476 | 4,601 | ||||||
Corporate administration | (27,110 | ) | (20,730 | ) | ||||
Restructuring expenses | (173 | ) | (374 | ) | ||||
Impairment loss on identifiable intangible assets | — | (907 | ) | |||||
Total worldwide operations | 119,959 | 99,656 | ||||||
Other corporate items: | ||||||||
Net periodic pension (cost) income | 400 | 717 | ||||||
Interest expense, net | (3,231 | ) | (2,823 | ) | ||||
Income from continuing operations before income taxes | $ | 117,128 | $ | 97,550 | ||||
For the six months ended June 30, | ||||||||
2019 | 2018 | |||||||
Operating income (loss): | ||||||||
United States electrical construction and facilities services | $ | 86,750 | $ | 71,836 | ||||
United States mechanical construction and facilities services | 94,939 | 97,037 | ||||||
United States building services | 55,484 | 39,507 | ||||||
United States industrial services | 25,648 | 4,675 | ||||||
Total United States operations | 262,821 | 213,055 | ||||||
United Kingdom building services | 9,617 | 8,371 | ||||||
Corporate administration | (49,721 | ) | (42,395 | ) | ||||
Restructuring expenses | (448 | ) | (464 | ) | ||||
Impairment loss on identifiable intangible assets | — | (907 | ) | |||||
Total worldwide operations | 222,269 | 177,660 | ||||||
Other corporate items: | ||||||||
Net periodic pension (cost) income | 806 | 1,454 | ||||||
Interest expense, net | (6,054 | ) | (5,275 | ) | ||||
Income from continuing operations before income taxes | $ | 217,021 | $ | 173,839 | ||||
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
GAAP operating income | $ | 119,959 | $ | 99,656 | $ | 222,269 | $ | 177,660 | ||||||||
Impairment loss on identifiable intangible assets | — | 907 | — | 907 | ||||||||||||
Non-GAAP operating income, excluding impairment loss on identifiable intangible assets | $ | 119,959 | $ | 100,563 | $ | 222,269 | $ | 178,567 |
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
GAAP net income from continuing operations attributable to EMCOR Group, Inc. (1) | $ | 83,972 | $ | 71,021 | $ | 156,382 | $ | 126,677 | ||||||||
Impairment loss on identifiable intangible assets (2) | — | 907 | — | 907 | ||||||||||||
Non-GAAP net income from continuing operations attributable to EMCOR Group, Inc., excluding impairment loss on identifiable intangible assets | $ | 83,972 | $ | 71,928 | $ | 156,382 | $ | 127,584 |
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
GAAP diluted earnings per common share from continuing operations | $ | 1.49 | $ | 1.21 | $ | 2.77 | $ | 2.15 | ||||||||
Impairment loss on identifiable intangible assets (1) | — | 0.02 | — | 0.02 | ||||||||||||
Non-GAAP diluted earnings per common share from continuing operations, excluding impairment loss on identifiable intangible assets | $ | 1.49 | $ | 1.23 | $ | 2.77 | $ | 2.17 |
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