UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of report (Date of earliest event reported) April 26, 2007
EMCOR Group, Inc.
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(Exact Name of Registrant as Specified in Its Charter)
Delaware
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(State or Other Jurisdiction of Incorporation)
1-8267 11-2125338
(Commission File Number) (I.R.S. Employer Identification No.)
301 Merritt Seven, Norwalk, CT 06851
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(Address of Principal Executive Offices) (Zip Code)
(203) 849-7800
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(Registrant's Telephone Number, Including Area Code)
N/A
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
__ 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))
Item 2.02 Results of Operations and Financial Condition
On April 26, 2007, EMCOR Group, Inc. issued a press release disclosing
results of operations for its fiscal 2007 first quarter ended March 31, 2007. A
copy of such press release is furnished as Exhibit 99.1 to this Current Report
on Form 8-K.
The information contained in this Current Report on Form 8-K shall not be
deemed to be "filed" for the purposes of Section 18 of the Securities Exchange
Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that
Section, nor shall it be incorporated by reference into a filing under the
Securities Act of 1933, or the Exchange Act, except as shall be expressly set
forth by specific reference in such a filing.
Item. 9.01 Financial Statements and Exhibits
(c) Exhibits
Exhibit Number Description
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99.1 Press Release issued by EMCOR Group, Inc. on April 26, 2007
disclosing results of operations for its fiscal 2007 first
quarter ended March 31, 2007.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
EMCOR Group, Inc.
Dated: April 26, 2007 By: /s/ Frank T. MacInnis
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Frank T. MacInnis
Chairman of the Board of
Directors and Chief
Executive Officer
EMCOR GROUP, INC. REPORTS 2007 FIRST QUARTER RESULTS
- Revenues increase 14.5% to $1.32 billion -
- Operating income increases 53.6% to $18.9 million -
- Contract backlog increases 36.5% to record $3.84 billion -
NORWALK, CONNECTICUT, April 26, 2007 - EMCOR Group, Inc. (NYSE: EME) today
reported results for the first quarter ended March 31, 2007.
Income from continuing operations in the 2007 first quarter was $12.0 million,
or $0.36 per diluted share, an increase of 57.1% over income from continuing
operations of $7.6 million, or $0.24 per diluted share, in the first quarter of
2006. Net income rose 71.0% to $12.0 million, or $0.36 per diluted share,
compared to net income of $7.0 million, or $0.22 per diluted share, in the 2006
first quarter, which includes a loss from discontinued operation of $0.6
million, or $0.02 per diluted share. Revenues increased 14.5% in the first
quarter of 2007 to $1.32 billion from $1.15 billion in the first quarter of
2006.
Operating income rose 53.6% in the first quarter of 2007 to $18.9 million, or
1.4% of revenues, from operating income of $12.3 million, or 1.1% of revenues,
in the year ago period. In the 2007 first quarter, selling, general and
administrative (SG&A) expenses were $113.2 million, versus $102.5 million in the
comparable prior year period, reflecting higher SG&A activity as a result of
higher revenue during the period. As a percentage of revenues, however, SG&A
expenses declined to 8.6% from 8.9% a year ago.
As of March 31, 2007, contract backlog was $3.84 billion, versus $3.50 billion
at December 31, 2006 and $2.82 billion at March 31, 2006, reflecting an increase
of 9.9% and 36.5%, respectively, and demonstrating the continued strong demand
for the Company's services. Private sector commercial and hospitality contracts
represented 53% of total backlog at the end of the 2007 first quarter, versus
47% as of March 31, 2006.
EMCOR Announces 2007 First Quarter Results Page 2
Frank T. MacInnis, Chairman and CEO of EMCOR Group, commented, "As we
anticipated, the first quarter of 2007 saw the continued strong growth trends we
experienced at the end of 2006. Driven by a robust, balanced backlog, strong
demand for our services across our markets and our continued focus on excellent
operational execution and cost control, we reported a very good start to the
year."
Mr. MacInnis continued, "The quarter saw outstanding performance in most of our
operating segments, with our U.S. Electrical and U.S. Mechanical operations both
generating higher revenues and substantial increases in profitability. Within
our Facilities Services segment, the first quarter saw a good balance between
site-based and mobile services, and its solid revenue growth during the quarter
resulted in nearly double its operating income from the year ago period. At the
same time, we were also able to effectively manage our growth, reducing SG&A
expenses as a percentage of revenues and generating a substantial improvement in
cash flow from year ago levels."
Mr. MacInnis concluded, "Having positioned ourselves to take advantage of an
improvement in the private sector, we began to see demand from this sector
increase in 2006, and the private sector markets have improved further as we've
moved into 2007. Looking ahead, the strong organic growth in all aspects of our
business remains favorable, as we continue to generate dynamic growth within our
targeted markets while maintaining the financial strength to take advantage of
growth opportunities. Based on information currently available, we confidently
reiterate our previously issued 2007 performance estimates of $5.3B - $5.5B of
revenue and 2007 diluted earnings per share of $2.45 - $2.80. We are currently
in the midst of our operations reforecast cycle, and expect to be in a position
to revise our guidance, if appropriate, at the conclusion of that cycle in early
to mid-June."
EMCOR Group, Inc. is a Fortune 500(R) worldwide leader in mechanical and
electrical construction services, energy infrastructure and facilities services.
This press release and other press releases may be viewed at the Company's Web
site at www.emcorgroup.com.
EMCOR Group's first quarter conference call will be available live via Internet
broadcast today, Thursday, April 26, at 10:30 AM Eastern Daylight Time. You can
access the live call through the Home Page of the Company's Web site at
www.emcorgroup.com.
This release may contain certain forward-looking statements within the meaning
of the Private Securities Reform Act of 1995. Any such comments are based upon
information available to EMCOR management and its perception thereof, as of this
date, and EMCOR assumes no obligation to update any such forward-looking
statements. These forward-looking statements may include statements regarding
market opportunities, market share growth, gross profit, backlog mix, projects
with varying profit margins, and selling, general and administrative expenses.
These forward-looking statements involve risks and uncertainties that could
cause actual results to differ materially from the forward-looking statements.
Accordingly these statements are no guarantee of future performance. Such risk
and uncertainties include, but are not limited to, adverse effects of general
economic conditions, changes in the political environment, changes in the
specific markets for EMCOR's services, adverse business conditions, availability
of adequate levels of surety bonding, increased competition, unfavorable labor
productivity and mix of business. Certain of the risks and factors associated
with EMCOR's business are also discussed in the Company's 2006 Form 10-K, its
Form 10-Q for the first quarter ended March 31, 2007, and in other reports filed
from time to time with the Securities and Exchange Commission. All these risks
and factors should be taken into account in evaluating any forward-looking
statements.
EMCOR GROUP, INC.
FINANCIAL HIGHLIGHTS
(In thousands, except share and per share information)
(Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended
March 31,
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2007 2006
---- ----
Revenues $ 1,318,347 $ 1,151,077
Cost of sales 1,186,124 1,036,244
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Gross profit 132,223 114,833
Selling, general and administrative expenses 113,199 102,506
Restructuring expenses 93 --
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Operating income 18,931 12,327
Interest income, net 2,712 238
Minority interest (1,192) (256)
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Income from continuing operations before income taxes 20,451 12,309
Income tax provision 8,459 4,676
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Income from continuing operations 11,992 7,633
Loss from discontinued operation, net of income taxes -- (620)
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Net income $ 11,992 $ 7,013
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Basic earnings per share - continuing operations $ 0.38 $ 0.24
Basic earnings per share - discontinued operation -- (0.02)
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$ 0.38 $ 0.22
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Diluted earnings per share - continuing operations $ 0.36 $ 0.24
Diluted earnings per share - discontinued operation -- (0.02)
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$ 0.36 $ 0.22
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Weighted average shares of common stock outstanding:
Basic 31,912,218 31,314,293
Diluted 33,139,491 32,274,728
EMCOR GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
2007 2006
(Unaudited)
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ASSETS
Current assets:
Cash and cash equivalents $ 276,569 $ 273,735
Accounts receivable, net 1,187,709 1,184,418
Costs and estimated earnings in excess of billings
on uncompleted contracts 156,322 147,848
Inventories 18,408 18,015
Prepaid expenses and other 39,560 38,397
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Total current assets 1,678,568 1,662,413
Investments, notes and other long-term receivables 30,741 29,630
Property, plant & equipment, net 53,305 52,780
Goodwill 288,168 288,165
Identifiable intangible assets, net 37,251 38,251
Other assets 17,459 17,784
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Total assets $2,105,492 $2,089,023
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Borrowings under working capital credit line $ -- $ --
Current maturities of long-term debt and capital
lease obligations 639 659
Accounts payable 454,797 496,407
Billings in excess of costs and estimated earnings
on uncompleted contracts 471,904 412,069
Accrued payroll and benefits 166,111 177,490
Other accrued expenses and liabilities 114,858 121,723
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Total current liabilities 1,208,309 1,208,348
Long-term debt and capital lease obligations 1,133 1,239
Other long-term obligations 170,746 169,127
Total stockholders' equity 725,304 710,309
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Total liabilities and stockholders' equity $2,105,492 $2,089,023
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