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 | |||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
EMCOR Group, Inc. | |||||||||||
Dated: August 3, 2020 | 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 2020 RESULTS | ||
- Second Quarter Revenues of $2.01 Billion, 13.3% Decrease Year-over-Year - | ||
- Second Quarter Diluted Loss Per Share of $(1.52), Non-GAAP Diluted EPS of $1.44 - | ||
- Record Second Quarter Operating Cash Flow of $355.6 Million - | ||
- Total Remaining Performance Obligations of $4.59 Billion, 8.6% Increase Year-over-Year - | ||
- Reintroduces 2020 Revenue and Diluted EPS Guidance Range - |
EMCOR Reports Second Quarter Results | Page 2 |
EMCOR Reports Second Quarter Results | Page 3 |
EMCOR Reports Second Quarter Results | Page 4 |
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Revenues | $ | 2,014,021 | $ | 2,324,202 | $ | 4,313,853 | $ | 4,482,930 | ||||||||||||||||||
Cost of sales | 1,698,735 | 1,977,822 | 3,665,506 | 3,827,796 | ||||||||||||||||||||||
Gross profit | 315,286 | 346,380 | 648,347 | 655,134 | ||||||||||||||||||||||
Selling, general and administrative expenses | 205,174 | 226,248 | 432,171 | 432,417 | ||||||||||||||||||||||
Restructuring expenses | — | 173 | 69 | 448 | ||||||||||||||||||||||
Impairment loss on goodwill, identifiable intangible assets, and other long-lived assets | 232,750 | — | 232,750 | — | ||||||||||||||||||||||
Operating (loss) income | (122,638) | 119,959 | (16,643) | 222,269 | ||||||||||||||||||||||
Net periodic pension (cost) income | 718 | 400 | 1,460 | 806 | ||||||||||||||||||||||
Interest expense, net | (2,110) | (3,231) | (4,598) | (6,054) | ||||||||||||||||||||||
(Loss) income before income taxes | (124,030) | 117,128 | (19,781) | 217,021 | ||||||||||||||||||||||
Income tax (benefit) provision | (40,341) | 33,156 | (11,757) | 60,639 | ||||||||||||||||||||||
Net (loss) income | $ | (83,689) | $ | 83,972 | $ | (8,024) | $ | 156,382 | ||||||||||||||||||
Basic (loss) earnings per common share | $ | (1.52) | $ | 1.49 | $ | (0.14) | $ | 2.78 | ||||||||||||||||||
Diluted (loss) earnings per common share | $ | (1.52) | $ | 1.49 | $ | (0.14) | $ | 2.77 | ||||||||||||||||||
Weighted average shares of common stock outstanding: | ||||||||||||||||||||||||||
Basic | 54,937,038 | 56,181,864 | 55,467,799 | 56,175,219 | ||||||||||||||||||||||
Diluted | 54,937,038 | 56,499,514 | 55,467,799 | 56,461,977 | ||||||||||||||||||||||
Dividends declared per common share | $ | 0.08 | $ | 0.08 | $ | 0.16 | $ | 0.16 | ||||||||||||||||||
June 30, 2020 (Unaudited) | December 31, 2019 | |||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 481,391 | $ | 358,818 | ||||||||||
Accounts receivable, net | 1,936,442 | 2,030,813 | ||||||||||||
Contract assets | 171,389 | 177,830 | ||||||||||||
Inventories | 40,590 | 40,446 | ||||||||||||
Prepaid expenses and other | 49,268 | 51,976 | ||||||||||||
Total current assets | 2,679,080 | 2,659,883 | ||||||||||||
Property, plant and equipment, net | 158,453 | 156,187 | ||||||||||||
Operating lease right-of-use assets | 240,659 | 245,471 | ||||||||||||
Goodwill | 839,772 | 1,063,911 | ||||||||||||
Identifiable intangible assets, net | 576,540 | 611,444 | ||||||||||||
Other assets | 95,919 | 93,462 | ||||||||||||
Total assets | $ | 4,590,423 | $ | 4,830,358 | ||||||||||
LIABILITIES AND EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Current maturities of long-term debt and finance lease liabilities | $ | 10,234 | $ | 18,092 | ||||||||||
Accounts payable | 563,128 | 665,402 | ||||||||||||
Contract liabilities | 655,298 | 623,642 | ||||||||||||
Accrued payroll and benefits | 317,783 | 382,573 | ||||||||||||
Other accrued expenses and liabilities | 209,064 | 195,757 | ||||||||||||
Operating lease liabilities, current | 52,705 | 53,144 | ||||||||||||
Total current liabilities | 1,808,212 | 1,938,610 | ||||||||||||
Borrowings under revolving credit facility | — | 50,000 | ||||||||||||
Long-term debt and finance lease liabilities | 294,126 | 244,139 | ||||||||||||
Operating lease liabilities, long-term | 204,361 | 204,950 | ||||||||||||
Other long-term obligations | 339,526 | 334,879 | ||||||||||||
Total liabilities | 2,646,225 | 2,772,578 | ||||||||||||
Equity: | ||||||||||||||
Total EMCOR Group, Inc. stockholders’ equity | 1,943,622 | 2,057,134 | ||||||||||||
Noncontrolling interests | 576 | 646 | ||||||||||||
Total equity | 1,944,198 | 2,057,780 | ||||||||||||
Total liabilities and equity | $ | 4,590,423 | $ | 4,830,358 |
2020 | 2019 | |||||||||||||
Cash flows - operating activities: | ||||||||||||||
Net (loss) income | $ | (8,024) | $ | 156,382 | ||||||||||
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | ||||||||||||||
Depreciation and amortization | 23,220 | 21,391 | ||||||||||||
Amortization of identifiable intangible assets | 29,404 | 23,169 | ||||||||||||
Provision for credit losses | 4,957 | 851 | ||||||||||||
Deferred income taxes | (19,942) | (920) | ||||||||||||
Excess tax benefits from share-based compensation | (196) | (593) | ||||||||||||
Non-cash expense for impairment of goodwill, identifiable intangible assets, and other long-lived assets | 232,750 | — | ||||||||||||
Non-cash share-based compensation expense | 5,960 | 6,225 | ||||||||||||
Other reconciling items | 1,064 | 3,020 | ||||||||||||
Changes in operating assets and liabilities, excluding the effect of businesses acquired | 7,550 | (251,723) | ||||||||||||
Net cash provided by (used in) operating activities | 276,743 | (42,198) | ||||||||||||
Cash flows - investing activities: | ||||||||||||||
Payments for acquisitions of businesses, net of cash acquired | (3,194) | (63,991) | ||||||||||||
Proceeds from sale or disposal of property, plant and equipment | 824 | 1,326 | ||||||||||||
Purchase of property, plant and equipment | (25,951) | (22,455) | ||||||||||||
Investments in and advances to unconsolidated entities | — | (794) | ||||||||||||
Distributions from unconsolidated entities | — | 84 | ||||||||||||
Net cash used in investing activities | (28,321) | (85,830) | ||||||||||||
Cash flows - financing activities: | ||||||||||||||
Proceeds from revolving credit facility | 200,000 | — | ||||||||||||
Repayments of revolving credit facility | (250,000) | — | ||||||||||||
Proceeds from long-term debt | 300,000 | — | ||||||||||||
Repayments of long-term debt and debt issuance costs | (257,549) | (7,601) | ||||||||||||
Repayments of finance lease liabilities | (2,354) | (2,151) | ||||||||||||
Dividends paid to stockholders | (8,888) | (8,967) | ||||||||||||
Repurchase of common stock | (99,048) | — | ||||||||||||
Taxes paid related to net share settlements of equity awards | (2,550) | (3,735) | ||||||||||||
Issuance of common stock under employee stock purchase plan | 3,228 | 2,969 | ||||||||||||
Payments for contingent consideration arrangements | (4,070) | (2,508) | ||||||||||||
Distributions to noncontrolling interests | (70) | (250) | ||||||||||||
Net cash used in financing activities | (121,301) | (22,243) | ||||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (4,701) | (175) | ||||||||||||
Increase (decrease) in cash, cash equivalents, and restricted cash | 122,420 | (150,446) | ||||||||||||
Cash, cash equivalents, and restricted cash at beginning of year (1) | 359,920 | 366,214 | ||||||||||||
Cash, cash equivalents, and restricted cash at end of period (2) | $ | 482,340 | $ | 215,768 |
For the three months ended June 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
Revenues from unrelated entities: | ||||||||||||||
United States electrical construction and facilities services | $ | 445,881 | $ | 569,402 | ||||||||||
United States mechanical construction and facilities services | 790,441 | 823,086 | ||||||||||||
United States building services | 472,416 | 523,698 | ||||||||||||
United States industrial services | 212,166 | 295,460 | ||||||||||||
Total United States operations | 1,920,904 | 2,211,646 | ||||||||||||
United Kingdom building services | 93,117 | 112,556 | ||||||||||||
Total worldwide operations | $ | 2,014,021 | $ | 2,324,202 | ||||||||||
For the six months ended June 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
Revenues from unrelated entities: | ||||||||||||||
United States electrical construction and facilities services | $ | 971,110 | $ | 1,097,472 | ||||||||||
United States mechanical construction and facilities services | 1,624,553 | 1,575,495 | ||||||||||||
United States building services | 990,499 | 1,035,777 | ||||||||||||
United States industrial services | 522,197 | 554,105 | ||||||||||||
Total United States operations | 4,108,359 | 4,262,849 | ||||||||||||
United Kingdom building services | 205,494 | 220,081 | ||||||||||||
Total worldwide operations | $ | 4,313,853 | $ | 4,482,930 | ||||||||||
For the three months ended June 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
Operating income (loss): | ||||||||||||||
United States electrical construction and facilities services | $ | 32,184 | $ | 43,799 | ||||||||||
United States mechanical construction and facilities services | 66,937 | 53,954 | ||||||||||||
United States building services | 26,378 | 28,001 | ||||||||||||
United States industrial services | 2,961 | 16,012 | ||||||||||||
Total United States operations | 128,460 | 141,766 | ||||||||||||
United Kingdom building services | 5,351 | 5,476 | ||||||||||||
Corporate administration | (23,699) | (27,110) | ||||||||||||
Restructuring expenses | — | (173) | ||||||||||||
Impairment loss on goodwill, identifiable intangible assets, and other long-lived assets | (232,750) | — | ||||||||||||
Total worldwide operations | (122,638) | 119,959 | ||||||||||||
Other corporate items: | ||||||||||||||
Net periodic pension (cost) income | 718 | 400 | ||||||||||||
Interest expense, net | (2,110) | (3,231) | ||||||||||||
(Loss) income before income taxes | $ | (124,030) | $ | 117,128 | ||||||||||
For the six months ended June 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
Operating income (loss): | ||||||||||||||
United States electrical construction and facilities services | $ | 76,087 | $ | 86,750 | ||||||||||
United States mechanical construction and facilities services | 112,108 | 94,939 | ||||||||||||
United States building services | 47,216 | 55,484 | ||||||||||||
United States industrial services | 15,218 | 25,648 | ||||||||||||
Total United States operations | 250,629 | 262,821 | ||||||||||||
United Kingdom building services | 11,115 | 9,617 | ||||||||||||
Corporate administration | (45,568) | (49,721) | ||||||||||||
Restructuring expenses | (69) | (448) | ||||||||||||
Impairment loss on goodwill, identifiable intangible assets, and other long-lived assets | (232,750) | — | ||||||||||||
Total worldwide operations | (16,643) | 222,269 | ||||||||||||
Other corporate items: | ||||||||||||||
Net periodic pension (cost) income | 1,460 | 806 | ||||||||||||
Interest expense, net | (4,598) | (6,054) | ||||||||||||
(Loss) income before income taxes | $ | (19,781) | $ | 217,021 | ||||||||||
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
GAAP operating (loss) income | $ | (122,638) | $ | 119,959 | $ | (16,643) | $ | 222,269 | ||||||||||||||||||
Impairment loss on goodwill, identifiable intangible assets, and other long-lived assets | 232,750 | — | 232,750 | — | ||||||||||||||||||||||
Non-GAAP operating income, excluding impairment loss on goodwill, identifiable intangible assets, and other long-lived assets | $ | 110,112 | $ | 119,959 | $ | 216,107 | $ | 222,269 |
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
GAAP operating margin | (6.1) | % | 5.2 | % | (0.4) | % | 5.0 | % | ||||||||||||||||||
Impairment loss on goodwill, identifiable intangible assets, and other long-lived assets | 11.6 | % | — | % | 5.4 | % | — | % | ||||||||||||||||||
Non-GAAP operating margin, excluding impairment loss on goodwill, identifiable intangible assets, and other long-lived assets | 5.5 | % | 5.2 | % | 5.0 | % | 5.0 | % |
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
GAAP net (loss) income | $ | (83,689) | $ | 83,972 | $ | (8,024) | $ | 156,382 | ||||||||||||||||||
Impairment loss on goodwill, identifiable intangible assets, and other long-lived assets (1) | 162,885 | — | 162,885 | — | ||||||||||||||||||||||
Non-GAAP net income, excluding impairment loss on goodwill, identifiable intangible assets, and other long-lived assets | $ | 79,196 | $ | 83,972 | $ | 154,861 | $ | 156,382 |
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
GAAP diluted (loss) earnings per common share | $ | (1.52) | $ | 1.49 | $ | (0.14) | $ | 2.77 | ||||||||||||||||||
Impairment loss on goodwill, identifiable intangible assets, and other long-lived assets (1) | 2.95 | — | 2.93 | — | ||||||||||||||||||||||
Non-GAAP diluted earnings per common share, excluding impairment loss on goodwill, identifiable intangible assets, and other long-lived assets | $ | 1.44 | $ | 1.49 | $ | 2.78 | $ | 2.77 |
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