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: April 30, 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 FIRST QUARTER 2020 RESULTS |
- Record First Quarter Revenues of $2.30 billion, 6.5% Increase Year-over-Year - |
- Record First Quarter Diluted EPS of $1.35, 5.5% Increase Year-over-Year - |
- Total Remaining Performance Obligations of $4.42 billion, 6.4% Increase Year-over-Year - |
EMCOR Reports First Quarter Results | Page 2 |
EMCOR Reports First Quarter Results | Page 3 |
For the three months ended March 31, | ||||||||
2020 | 2019 | |||||||
Revenues | $ | 2,299,832 | $ | 2,158,728 | ||||
Cost of sales | 1,966,771 | 1,849,974 | ||||||
Gross profit | 333,061 | 308,754 | ||||||
Selling, general and administrative expenses | 226,997 | 206,169 | ||||||
Restructuring expenses | 69 | 275 | ||||||
Operating income | 105,995 | 102,310 | ||||||
Net periodic pension (cost) income | 742 | 406 | ||||||
Interest expense, net | (2,488 | ) | (2,823 | ) | ||||
Income before income taxes | 104,249 | 99,893 | ||||||
Income tax provision | 28,584 | 27,483 | ||||||
Net income | $ | 75,665 | $ | 72,410 | ||||
Basic earnings per common share | $ | 1.35 | $ | 1.29 | ||||
Diluted earnings per common share | $ | 1.35 | $ | 1.28 | ||||
Weighted average shares of common stock outstanding: | ||||||||
Basic | 56,007,122 | 56,168,356 | ||||||
Diluted | 56,210,728 | 56,424,222 | ||||||
Dividends declared per common share | $ | 0.08 | $ | 0.08 | ||||
March 31, 2020 (Unaudited) | December 31, 2019 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 347,092 | $ | 358,818 | ||||
Accounts receivable, net | 2,055,483 | 2,030,813 | ||||||
Contract assets | 195,265 | 177,830 | ||||||
Inventories | 35,387 | 40,446 | ||||||
Prepaid expenses and other | 52,161 | 51,976 | ||||||
Total current assets | 2,685,388 | 2,659,883 | ||||||
Property, plant & equipment, net | 157,848 | 156,187 | ||||||
Operating lease right-of-use assets | 237,796 | 245,471 | ||||||
Goodwill | 1,064,853 | 1,063,911 | ||||||
Identifiable intangible assets, net | 597,897 | 611,444 | ||||||
Other assets | 91,765 | 93,462 | ||||||
Total assets | $ | 4,835,547 | $ | 4,830,358 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Current maturities of long-term debt and finance lease liabilities | $ | 10,360 | $ | 18,092 | ||||
Accounts payable | 592,576 | 665,402 | ||||||
Contract liabilities | 590,873 | 623,642 | ||||||
Accrued payroll and benefits | 301,878 | 382,573 | ||||||
Other accrued expenses and liabilities | 237,973 | 195,757 | ||||||
Operating lease liabilities, current | 52,722 | 53,144 | ||||||
Total current liabilities | 1,786,382 | 1,938,610 | ||||||
Borrowings under revolving credit facility | 200,000 | 50,000 | ||||||
Long-term debt and finance lease liabilities | 294,181 | 244,139 | ||||||
Operating lease liabilities, long-term | 198,492 | 204,950 | ||||||
Other long-term obligations | 328,898 | 334,879 | ||||||
Total liabilities | 2,807,953 | 2,772,578 | ||||||
Equity: | ||||||||
Total EMCOR Group, Inc. stockholders’ equity | 2,026,948 | 2,057,134 | ||||||
Noncontrolling interests | 646 | 646 | ||||||
Total equity | 2,027,594 | 2,057,780 | ||||||
Total liabilities and equity | $ | 4,835,547 | $ | 4,830,358 |
2020 | 2019 | |||||||
Cash flows - operating activities: | ||||||||
Net income | $ | 75,665 | $ | 72,410 | ||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||
Depreciation and amortization | 11,767 | 10,585 | ||||||
Amortization of identifiable intangible assets | 14,747 | 11,610 | ||||||
Provision for (recovery of) credit losses | 2,614 | (673 | ) | |||||
Deferred income taxes | 4,375 | 2,496 | ||||||
Excess tax benefits from share-based compensation | (157 | ) | (499 | ) | ||||
Non-cash share-based compensation expense | 3,291 | 3,557 | ||||||
Other reconciling items | 199 | 467 | ||||||
Changes in operating assets and liabilities, excluding the effect of businesses acquired | (191,314 | ) | (157,388 | ) | ||||
Net cash used in operating activities | (78,813 | ) | (57,435 | ) | ||||
Cash flows - investing activities: | ||||||||
Payments for acquisitions of businesses, net of cash acquired | (2,582 | ) | (31,124 | ) | ||||
Proceeds from sale or disposal of property, plant and equipment | 196 | 1,023 | ||||||
Purchase of property, plant and equipment | (12,035 | ) | (13,113 | ) | ||||
Investments in and advances to unconsolidated entities | — | (794 | ) | |||||
Net cash used in investing activities | (14,421 | ) | (44,008 | ) | ||||
Cash flows - financing activities: | ||||||||
Proceeds from revolving credit facility | 200,000 | — | ||||||
Repayments of revolving credit facility | (50,000 | ) | — | |||||
Proceeds from long-term debt | 300,000 | — | ||||||
Repayments of long-term debt and debt issuance costs | (257,549 | ) | (3,800 | ) | ||||
Repayments of finance lease liabilities | (1,277 | ) | (1,053 | ) | ||||
Dividends paid to stockholders | (4,500 | ) | (4,480 | ) | ||||
Repurchase of common stock | (99,048 | ) | — | |||||
Taxes paid related to net share settlements of equity awards | (2,492 | ) | (3,735 | ) | ||||
Issuance of common stock under employee stock purchase plan | 1,638 | 1,323 | ||||||
Payments for contingent consideration arrangements | (653 | ) | (23 | ) | ||||
Distributions to noncontrolling interests | — | (40 | ) | |||||
Net cash provided by (used in) financing activities | 86,119 | (11,808 | ) | |||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (4,678 | ) | 1,298 | |||||
Decrease in cash, cash equivalents, and restricted cash | (11,793 | ) | (111,953 | ) | ||||
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) | $ | 348,127 | $ | 254,261 |
(1) | Includes $1.1 million and $2.3 million of restricted cash classified as “Prepaid expenses and other” in the Consolidated Balance Sheets as of December 31, 2019 and 2018, respectively. |
(2) | Includes $1.0 million and $2.2 million of restricted cash classified as “Prepaid expenses and other” in the Consolidated Balance Sheets as of March 31, 2020 and 2019, respectively. |
For the three months ended March 31, | ||||||||
2020 | 2019 | |||||||
Revenues from unrelated entities: | ||||||||
United States electrical construction and facilities services | $ | 525,229 | $ | 528,070 | ||||
United States mechanical construction and facilities services | 834,112 | 752,409 | ||||||
United States building services | 518,083 | 512,079 | ||||||
United States industrial services | 310,031 | 258,645 | ||||||
Total United States operations | 2,187,455 | 2,051,203 | ||||||
United Kingdom building services | 112,377 | 107,525 | ||||||
Total worldwide operations | $ | 2,299,832 | $ | 2,158,728 | ||||
For the three months ended March 31, | ||||||||
2020 | 2019 | |||||||
Operating income (loss): | ||||||||
United States electrical construction and facilities services | $ | 43,903 | $ | 42,951 | ||||
United States mechanical construction and facilities services | 45,171 | 40,985 | ||||||
United States building services | 20,838 | 27,483 | ||||||
United States industrial services | 12,257 | 9,636 | ||||||
Total United States operations | 122,169 | 121,055 | ||||||
United Kingdom building services | 5,764 | 4,141 | ||||||
Corporate administration | (21,869 | ) | (22,611 | ) | ||||
Restructuring expenses | (69 | ) | (275 | ) | ||||
Total worldwide operations | 105,995 | 102,310 | ||||||
Other corporate items: | ||||||||
Net periodic pension (cost) income | 742 | 406 | ||||||
Interest expense, net | (2,488 | ) | (2,823 | ) | ||||
Income before income taxes | $ | 104,249 | $ | 99,893 | ||||