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: October 29, 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 THIRD QUARTER 2020 RESULTS | ||
- Third Quarter Revenues of $2.20 billion, 3.8% Decrease Year-over-Year - | ||
- Third Quarter Diluted EPS of $1.11, Non-GAAP Diluted EPS of $1.76 - | ||
- Record Third Quarter Operating Cash Flow of $270.1 million, 23.3% Increase Year-over-Year- | ||
- Increases 2020 Revenue Guidance to approximately $8.7 billion from $8.6 billion-$8.7 billion - | ||
- Increases 2020 Non-GAAP Diluted EPS Guidance Range to $5.90-$6.10 from $5.00-$5.50 - |
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, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Revenues | $ | 2,201,714 | $ | 2,287,741 | $ | 6,515,567 | $ | 6,770,671 | ||||||||||||||||||
Cost of sales | 1,838,530 | 1,951,754 | 5,504,036 | 5,779,550 | ||||||||||||||||||||||
Gross profit | 363,184 | 335,987 | 1,011,531 | 991,121 | ||||||||||||||||||||||
Selling, general and administrative expenses | 226,793 | 220,119 | 658,964 | 652,536 | ||||||||||||||||||||||
Restructuring expenses | 536 | 119 | 605 | 567 | ||||||||||||||||||||||
Impairment loss on goodwill, identifiable intangible assets, and other long-lived assets | — | — | 232,750 | — | ||||||||||||||||||||||
Operating income | 135,855 | 115,749 | 119,212 | 338,018 | ||||||||||||||||||||||
Net periodic pension (cost) income | 751 | 381 | 2,211 | 1,187 | ||||||||||||||||||||||
Interest expense, net | (1,484) | (2,678) | (6,082) | (8,732) | ||||||||||||||||||||||
Income before income taxes | 135,122 | 113,452 | 115,341 | 330,473 | ||||||||||||||||||||||
Income tax provision | 73,936 | 31,618 | 62,179 | 92,257 | ||||||||||||||||||||||
Net income | $ | 61,186 | $ | 81,834 | $ | 53,162 | $ | 238,216 | ||||||||||||||||||
Basic earnings per common share | $ | 1.11 | $ | 1.46 | $ | 0.96 | $ | 4.24 | ||||||||||||||||||
Diluted earnings per common share | $ | 1.11 | $ | 1.45 | $ | 0.96 | $ | 4.22 | ||||||||||||||||||
Weighted average shares of common stock outstanding: | ||||||||||||||||||||||||||
Basic | 54,979,310 | 56,216,840 | 55,302,385 | 56,189,388 | ||||||||||||||||||||||
Diluted | 55,200,245 | 56,558,450 | 55,509,722 | 56,494,430 | ||||||||||||||||||||||
Dividends declared per common share | $ | 0.08 | $ | 0.08 | $ | 0.24 | $ | 0.24 | ||||||||||||||||||
September 30, 2020 (Unaudited) | December 31, 2019 | |||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 679,342 | $ | 358,818 | ||||||||||
Accounts receivable, net | 1,942,341 | 2,030,813 | ||||||||||||
Contract assets | 187,313 | 177,830 | ||||||||||||
Inventories | 39,253 | 40,446 | ||||||||||||
Prepaid expenses and other | 48,841 | 51,976 | ||||||||||||
Total current assets | 2,897,090 | 2,659,883 | ||||||||||||
Property, plant and equipment, net | 155,161 | 156,187 | ||||||||||||
Operating lease right-of-use assets | 236,297 | 245,471 | ||||||||||||
Goodwill | 846,908 | 1,063,911 | ||||||||||||
Identifiable intangible assets, net | 596,679 | 611,444 | ||||||||||||
Other assets | 97,850 | 93,462 | ||||||||||||
Total assets | $ | 4,829,985 | $ | 4,830,358 | ||||||||||
LIABILITIES AND EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Current maturities of long-term debt and finance lease liabilities | $ | 9,693 | $ | 18,092 | ||||||||||
Accounts payable | 596,093 | 665,402 | ||||||||||||
Contract liabilities | 714,686 | 623,642 | ||||||||||||
Accrued payroll and benefits | 385,752 | 382,573 | ||||||||||||
Other accrued expenses and liabilities | 219,858 | 195,757 | ||||||||||||
Operating lease liabilities, current | 52,766 | 53,144 | ||||||||||||
Total current liabilities | 1,978,848 | 1,938,610 | ||||||||||||
Borrowings under revolving credit facility | — | 50,000 | ||||||||||||
Long-term debt and finance lease liabilities | 272,243 | 244,139 | ||||||||||||
Operating lease liabilities, long-term | 199,967 | 204,950 | ||||||||||||
Other long-term obligations | 371,062 | 334,879 | ||||||||||||
Total liabilities | 2,822,120 | 2,772,578 | ||||||||||||
Equity: | ||||||||||||||
Total EMCOR Group, Inc. stockholders’ equity | 2,007,289 | 2,057,134 | ||||||||||||
Noncontrolling interests | 576 | 646 | ||||||||||||
Total equity | 2,007,865 | 2,057,780 | ||||||||||||
Total liabilities and equity | $ | 4,829,985 | $ | 4,830,358 |
2020 | 2019 | |||||||||||||
Cash flows - operating activities: | ||||||||||||||
Net income | $ | 53,162 | $ | 238,216 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | 34,881 | 32,412 | ||||||||||||
Amortization of identifiable intangible assets | 44,765 | 34,500 | ||||||||||||
Provision for credit losses | 3,409 | 1,621 | ||||||||||||
Deferred income taxes | (28,104) | (913) | ||||||||||||
Excess tax benefits from share-based compensation | (192) | (601) | ||||||||||||
Non-cash expense for impairment of goodwill, identifiable intangible assets, and other long-lived assets | 232,750 | — | ||||||||||||
Non-cash share-based compensation expense | 8,510 | 8,840 | ||||||||||||
Other reconciling items | 1,361 | 3,696 | ||||||||||||
Changes in operating assets and liabilities, excluding the effect of businesses acquired | 196,292 | (140,850) | ||||||||||||
Net cash provided by operating activities | 546,834 | 176,921 | ||||||||||||
Cash flows - investing activities: | ||||||||||||||
Payments for acquisitions of businesses, net of cash acquired | (44,930) | (79,984) | ||||||||||||
Proceeds from sale or disposal of property, plant and equipment | 1,891 | 1,612 | ||||||||||||
Purchase of property, plant and equipment | (34,180) | (35,829) | ||||||||||||
Investments in and advances to unconsolidated entities | — | (794) | ||||||||||||
Distributions from unconsolidated entities | — | 38 | ||||||||||||
Net cash used in investing activities | (77,219) | (114,957) | ||||||||||||
Cash flows - financing activities: | ||||||||||||||
Proceeds from revolving credit facility | 200,000 | — | ||||||||||||
Repayments of revolving credit facility | (250,000) | (25,000) | ||||||||||||
Proceeds from long-term debt | 300,000 | — | ||||||||||||
Repayments of long-term debt and debt issuance costs | (280,049) | (11,400) | ||||||||||||
Repayments of finance lease liabilities | (3,390) | (3,357) | ||||||||||||
Dividends paid to stockholders | (13,280) | (13,458) | ||||||||||||
Repurchase of common stock | (99,048) | — | ||||||||||||
Taxes paid related to net share settlements of equity awards | (2,574) | (3,771) | ||||||||||||
Issuance of common stock under employee stock purchase plan | 4,887 | 4,501 | ||||||||||||
Payments for contingent consideration arrangements | (4,070) | (3,589) | ||||||||||||
Distributions to noncontrolling interests | (70) | (250) | ||||||||||||
Net cash used in financing activities | (147,594) | (56,324) | ||||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (1,304) | (2,047) | ||||||||||||
Increase in cash, cash equivalents, and restricted cash | 320,717 | 3,593 | ||||||||||||
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) | $ | 680,637 | $ | 369,807 |
For the three months ended September 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
Revenues from unrelated entities: | ||||||||||||||
United States electrical construction and facilities services | $ | 508,863 | $ | 554,637 | ||||||||||
United States mechanical construction and facilities services | 891,509 | 869,188 | ||||||||||||
United States building services | 551,555 | 532,122 | ||||||||||||
United States industrial services | 139,712 | 234,166 | ||||||||||||
Total United States operations | 2,091,639 | 2,190,113 | ||||||||||||
United Kingdom building services | 110,075 | 97,628 | ||||||||||||
Total worldwide operations | $ | 2,201,714 | $ | 2,287,741 | ||||||||||
For the nine months ended September 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
Revenues from unrelated entities: | ||||||||||||||
United States electrical construction and facilities services | $ | 1,479,973 | $ | 1,652,109 | ||||||||||
United States mechanical construction and facilities services | 2,516,062 | 2,444,683 | ||||||||||||
United States building services | 1,542,054 | 1,567,899 | ||||||||||||
United States industrial services | 661,909 | 788,271 | ||||||||||||
Total United States operations | 6,199,998 | 6,452,962 | ||||||||||||
United Kingdom building services | 315,569 | 317,709 | ||||||||||||
Total worldwide operations | $ | 6,515,567 | $ | 6,770,671 | ||||||||||
For the three months ended September 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
Operating income (loss): | ||||||||||||||
United States electrical construction and facilities services | $ | 47,059 | $ | 33,630 | ||||||||||
United States mechanical construction and facilities services | 80,048 | 61,213 | ||||||||||||
United States building services | 38,205 | 35,051 | ||||||||||||
United States industrial services | (9,794) | 5,561 | ||||||||||||
Total United States operations | 155,518 | 135,455 | ||||||||||||
United Kingdom building services | 5,327 | 4,754 | ||||||||||||
Corporate administration | (24,454) | (24,341) | ||||||||||||
Restructuring expenses | (536) | (119) | ||||||||||||
Total worldwide operations | 135,855 | 115,749 | ||||||||||||
Other corporate items: | ||||||||||||||
Net periodic pension (cost) income | 751 | 381 | ||||||||||||
Interest expense, net | (1,484) | (2,678) | ||||||||||||
Income before income taxes | $ | 135,122 | $ | 113,452 | ||||||||||
For the nine months ended September 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
Operating income (loss): | ||||||||||||||
United States electrical construction and facilities services | $ | 123,146 | $ | 120,380 | ||||||||||
United States mechanical construction and facilities services | 192,156 | 156,152 | ||||||||||||
United States building services | 85,421 | 90,535 | ||||||||||||
United States industrial services | 5,424 | 31,209 | ||||||||||||
Total United States operations | 406,147 | 398,276 | ||||||||||||
United Kingdom building services | 16,442 | 14,371 | ||||||||||||
Corporate administration | (70,022) | (74,062) | ||||||||||||
Restructuring expenses | (605) | (567) | ||||||||||||
Impairment loss on goodwill, identifiable intangible assets, and other long-lived assets | (232,750) | — | ||||||||||||
Total worldwide operations | 119,212 | 338,018 | ||||||||||||
Other corporate items: | ||||||||||||||
Net periodic pension (cost) income | 2,211 | 1,187 | ||||||||||||
Interest expense, net | (6,082) | (8,732) | ||||||||||||
Income before income taxes | $ | 115,341 | $ | 330,473 | ||||||||||
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
GAAP operating income | $ | 135,855 | $ | 115,749 | $ | 119,212 | $ | 338,018 | ||||||||||||||||||
Impairment loss on goodwill, identifiable intangible assets, and other long-lived assets | — | — | 232,750 | — | ||||||||||||||||||||||
Non-GAAP operating income | $ | 135,855 | $ | 115,749 | $ | 351,962 | $ | 338,018 |
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
GAAP operating margin | 6.2 | % | 5.1 | % | 1.8 | % | 5.0 | % | ||||||||||||||||||
Impairment loss on goodwill, identifiable intangible assets, and other long-lived assets | — | % | — | % | 3.6 | % | — | % | ||||||||||||||||||
Non-GAAP operating margin | 6.2 | % | 5.1 | % | 5.4 | % | 5.0 | % |
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
GAAP net income | $ | 61,186 | $ | 81,834 | $ | 53,162 | $ | 238,216 | ||||||||||||||||||
Impairment loss on goodwill, identifiable intangible assets, and other long-lived assets | — | — | 232,750 | — | ||||||||||||||||||||||
Tax effect of impairment loss on goodwill, identifiable intangible assets, and other long-lived assets | 35,776 | — | (34,089) | — | ||||||||||||||||||||||
Non-GAAP net income | $ | 96,962 | $ | 81,834 | $ | 251,823 | $ | 238,216 |
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
GAAP diluted earnings per common share | $ | 1.11 | $ | 1.45 | $ | 0.96 | $ | 4.22 | ||||||||||||||||||
Impairment loss on goodwill, identifiable intangible assets, and other long-lived assets | — | — | 4.19 | — | ||||||||||||||||||||||
Tax effect of impairment loss on goodwill, identifiable intangible assets, and other long-lived assets | 0.65 | — | (0.61) | — | ||||||||||||||||||||||
Non-GAAP diluted earnings per common share | $ | 1.76 | $ | 1.45 | $ | 4.54 | $ | 4.22 |
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