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 24, 2008
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
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(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 24, 2008, EMCOR Group, Inc. issued a press release disclosing
results of operations for its fiscal 2008 first quarter ended March 31, 2008. 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 24, 2008
disclosing results of operations for its fiscal 2008 first
quarter ended March 31, 2008.
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 24, 2008 By: /s/ Frank T. MacInnis
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Frank T. MacInnis
Chairman of the Board of
Directors and Chief
Executive Officer
Exhibit 99.1
FOR: EMCOR GROUP, INC.
CONTACT: R. Kevin Matz
Executive Vice President
Shared Services
(203) 849-7938
FD
Investors:Eric Boyriven - 212-850-5600
Linden Alschuler & Kaplan, Inc.
Media: Josh Epstein - 212-575-4545
EMCOR GROUP, INC. REPORTS RECORD FIRST QUARTER RESULTS
- Revenues increased 29.1% to $1.66 billion -
- Operating income increased 186% to $49.7 million, equal to 3.0% of revenues -
- Diluted earnings per share increased to $0.44 from $0.18 -
NORWALK, CONNECTICUT, April 24, 2008 - EMCOR Group, Inc. (NYSE: EME) today
reported results for its first quarter ended March 31, 2008.
For the first quarter of 2008, net income rose 144.6% to $29.3 million, or $0.44
per diluted share, from $12.0 million, or $0.18 per diluted share, in the first
quarter of 2007, which included income from discontinued operations of $0.5
million. Revenues in the 2008 first quarter rose 29.1% to $1.66 billion from
$1.29 billion in the first quarter of 2007, reflecting strong organic growth and
contributions from recent acquisitions.
The Company reported operating income of $49.7 million for the first quarter of
2008, compared to $17.4 million in the first quarter of 2007, an increase of
186.2%. As a percentage of revenues, first quarter 2008 operating margins
improved to 3.0%, the highest for any first quarter in the history of the
Company, from 1.3% a year ago. Selling, general and administrative (SG&A)
expenses were $140.2 million, or 8.4% of revenues, in the 2008 first quarter
compared to $111.6 million, or 8.7% of revenues, in the first quarter of 2007.
Contract backlog as of March 31, 2008 was $4.39 billion, an increase of 14.3%
over backlog of $3.84 billion at March 31, 2007. Private sector commercial and
hospitality contracts represented 49% of total backlog at the end of the 2008
first quarter, compared to 47% at December 31, 2007. Of the 14.3% increase in
backlog levels, approximately 9.4% represented organic backlog growth excluding
backlog contributions from companies acquired within the last 12 months.
Frank T. MacInnis, Chairman and CEO of EMCOR Group, stated, "Our record results
in the first quarter of 2008 represent an extraordinary start to the year.
Organic revenue growth of 16.6% confirmed strong performance across all our
businesses, and excellent operational execution enabled us to generate
substantially higher profits. We continue to be delighted with our position in
the refinery and petrochemical sectors through Ohmstede, which performed
extremely well in its seasonally strong quarter and contributed to the overall
increase in revenues, profits and profit margin."
EMCOR Announces 2008 First Quarter Results Page 2
Mr. MacInnis added, "As part of our efforts to diversify our revenue and profit
base and enable us to perform well throughout economic cycles, a key strategic
initiative at EMCOR has been the investment in and development of our facilities
services operations. Our success in this endeavor is underscored by the growth
in our facilities services business, which became the largest operating segment
contributor to operating profit during the 2008 first quarter. Its strong
performance and solid prospects serve to reinforce our commitment to this
strategy and to this business."
Mr. MacInnis concluded, "Our excellent results for the first quarter of 2008 are
the product of our efforts over the past five years to expand our service
offerings and to position EMCOR in markets that will generate strong,
sustainable growth and build on our position as a leader in the marketplace. We
have diversified and balanced the Company organically and through acquisitions,
and today we possess the businesses, services and management to leverage the
opportunities ahead of us. We are encouraged that even with record revenue
growth, our incoming contracts have generated backlog near record levels. While
certain segments of the economy may be challenging, our market position and
ongoing momentum give us increased confidence in meeting our ambitious targets
for 2008."
The Company noted that, based on current market conditions and the makeup of its
backlog, it continues to expect to generate revenues for the 2008 full-year
period of between $6.3 billion and $6.5 billion and diluted earnings per share
for 2008 of $2.08 to $2.28.
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 24, 2008 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 2007 Form 10-K, its Form 10-Q for the first quarter
ended March 31, 2008, 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.
- FINANCIAL TABLES FOLLOW -
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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2008 2007
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Revenues $ 1,661,403 $ 1,286,767
Cost of sales 1,471,478 1,157,754
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Gross profit 189,925 129,013
Selling, general and
administrative expenses 140,242 111,567
Restructuring expenses 14 93
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Operating income 49,669 17,353
Interest (expense) income, net (854) 2,711
Minority interest (76) (404)
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Income from continuing
operations before income taxes 48,739 19,660
Income tax provision 19,411 8,135
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Income from continuing
operations 29,328 11,525
Income from discontinued
operation, net of income taxes -- 467
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Net income $ 29,328 $ 11,992
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Basic earnings per share -
continuing operations $ 0.45 $ 0.18
Basic earnings per share -
discontinued operation -- 0.01
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$ 0.45 $ 0.19
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Diluted earnings per share -
continuing operations $ 0.44 $ 0.17
Diluted earnings per share -
discontinued operation -- 0.01
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$ 0.44 $ 0.18
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Weighted average shares of
common stock outstanding:
Basic 65,263,709 63,824,436
Diluted 66,971,259 66,278,982
EMCOR GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
2008 2007
(Unaudited)
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ASSETS
Current assets:
Cash and cash equivalents $ 224,989 $ 251,637
Accounts receivable, net 1,402,883 1,435,268
Costs and estimated earnings in excess of billings
on uncompleted contracts 153,280 144,919
Inventories 56,909 52,247
Prepaid expenses and other 55,566 56,935
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Total current assets 1,893,627 1,941,006
Investments, notes and other long-term receivables 22,948 22,669
Property, plant & equipment, net 86,244 83,963
Goodwill 564,791 563,918
Identifiable intangible assets, net 261,142 252,146
Other assets 13,137 13,157
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Total assets $2,841,889 $2,876,859
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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 3,793 3,791
Accounts payable 492,537 537,314
Billings in excess of costs and estimated earnings
on uncompleted contracts 587,595 572,431
Accrued payroll and benefits 186,692 215,554
Other accrued expenses and liabilities 213,034 190,349
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Total current liabilities 1,483,651 1,519,439
Long-term debt and capital lease obligations 198,468 223,453
Other long-term obligations 244,958 248,926
Total stockholders' equity 914,812 885,041
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Total liabilities and stockholders' equity $2,841,889 $2,876,859
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