UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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) October 2, 2003
EMCOR GROUP, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-2315 11-2125338
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(State or other jurisdiction of (Commission File (I.R.S. Employer
incorporation or organization) Number) Identification No.)
301 Merritt Seven Corporate Park
Norwalk, Connecticut 06851
(Address of principal executive offices) (Zip code)
(Registrant's telephone number, including area code) 203-849-7800
Item 7. Financial Statements and Exhibits
(c) Exhibits.
Exhibit No. Description of Exhibit
99.1 Press Release dated October 2, 2003
Item 12. Results of Operations and Financial Condition
On October 2, 2003, EMCOR Group, Inc. issued a press release announcing
anticipated results for the second half of 2003. A copy of the press release is
attached hereto as Exhibit 99.1.
EXHIBIT INDEX
Exhibit No. Description
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99.1 Press release issued by EMCOR Group, Inc.
on October 2, 2003
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.
By: /s/ Frank T. MacInnis
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Frank T. MacInnis
Chairman of the Board of Directors
and Chief Executive Officer
Date: October 2, 2003
Exhibit 99.1
EMCOR GROUP, INC. ANNOUNCES ANTICIPATED RESULTS
FOR THE SECOND HALF OF 2003
- Updates 2003 Full-Year Guidance -
NORWALK, CONNECTICUT, October 2, 2003 - EMCOR Group, Inc. (NYSE: EME) today
provided financial guidance for the second half of 2003 and updated its
financial guidance for the 2003 full-year period.
Based on current market conditions, the Company expects revenue for the second
half of 2003 to be between $2.25 billion and $2.35 billion, and diluted earnings
per share to be between $0.90 and $1.01. The Company expects these results to be
slightly weighted towards the 2003 fourth quarter. In light of these
expectations, the Company's guidance for the 2003 full-year period is for
revenue of between $4.4 billion and $4.6 billion, in line with previous
estimates, and diluted earnings per share of between $1.65 and $1.75. Contract
backlog at September 30th, 2003 is anticipated to be approximately $3.1 billion
versus $2.9 billion as of 9/30/02 and 12/31/02. EMCOR expects to release its
financial results for the third quarter of 2003 on October 23, 2003.
The Company's financial guidance reflects continued solid revenue growth as a
result of its leading position in its markets, and profitable results from all
the Company's North American operations. However, gross profits continue to be
restrained by the high proportion of public sector work within backlog,
continued recessionary conditions in most of EMCOR's markets, especially in the
Midwestern and Northeastern U.S., and a reduced level of private sector,
discretionary, small project work, which typically generates higher gross
margins than longer-term work. EMCOR's expected results for the second half of
2003 also reflect the impact of the slower than anticipated return to
profitability of the Company's U.K. subsidiary, due to reorganization charges at
that subsidiary and to U.K. market conditions.
The Company continues to see good performance within its facilities services
business, with strong contributions to revenue and operating income by
recently-acquired Consolidated Engineering Services. EMCOR is committed to the
growing market for outsourcing and facilities services, as evidenced by its
separate announcement today of both an alliance with Siemens Building
Technologies and an agreement to acquire Siemens' US Facilities Management
Business.
- MORE -
EMCOR Announces Anticipated Results for the Second Half of 2003
The Company also continues to operate from a position of financial strength,
with one of the strongest and most liquid balance sheets in its industry and
reasonable levels of revolving debt. Based on strong cash flow from operations,
EMCOR expects current debt to decline further by the end of the year.
Mr. Frank T. MacInnis, Chairman and Chief Executive Officer of EMCOR Group,
stated, "This continues to be a challenging time for EMCOR and its entire
industry. While we have been able to maintain our dominant position in many of
our markets, mainly through awards of public sector projects, the contracting
environment remains recessionary, with many of our private sector clients
waiting for clearer signs of a full-fledged economic recovery. In addition, the
anticipated recovery in small-project discretionary spending has been slower and
less profitable than anticipated. In the U.K., our new management team has taken
steps to enhance profitability, and although we expect profitable performance
from these operations in the second half of this year, before reorganization
costs, current conditions in the U.K. market together with reorganization costs
will prevent us from attaining our previously announced profitability goals for
this business until 2004."
Mr. MacInnis continued, "Despite the difficult conditions currently faced by
some of our operations, EMCOR continues to make progress towards its strategic
goals. Our Consolidated Engineering Service business is performing well, and we
continue to strengthen our ability to deliver facilities services on a national
scale. We are particularly excited about the growth opportunities associated
with the Siemens Building Technologies agreements which we announced today.
EMCOR remains solidly profitable, with strong cash flow and the financial
strength to execute its business strategy."
Mr. MacInnis added, "While we are obviously disappointed by the near-term
outlook, we remain committed to our long-term diversity model that provides an
array of services to a multitude of markets. Our broad skill sets and agility
have been built into our business, resulting in high backlog levels with
corresponding top-line revenue growth. The current market has given us an
over-weighting of public sector work; however, when the economic recovery takes
a firmer foothold, our backlog mix will naturally shift to a more optimal
balance of public and private sector customers. This backlog rebalancing
combined with our growing facilities services business should yield future
profitability at or above historical levels."
Mr. MacInnis concluded, "EMCOR's 2004 budget process has just begun. Since this
involves the accumulation of analyses and estimates from each of our more than
140 operating locations, it is too early to make detailed judgments about next
year's prospects. However, based on our existing contract backlog, reports from
subsidiary managers, and opportunities in our facilities service businesses, we
look for "baseline" EBIT performance in 2004 at about 2% of revenues, with a
significant likelihood of enhanced performance if private sector capital
spending strengthens as predicted by many economists. The anticipated "baseline"
level of performance would reflect EPS growth of at least 40% during 2004, over
expected 2003 levels."
- MORE -
EMCOR Announces Anticipated Results for the Second Half of 2003
In conjunction with this release, EMCOR will host a conference call on Friday,
October 3, 2003 at 9:00 AM Eastern Time that will be available live via internet
broadcast. You can access the live call through the Home Page of the company's
web site at www.emcorgroup.com.
EMCOR Group, Inc. is a worldwide leader in mechanical and electrical
construction services and facilities services. This press release and other
press releases may be viewed at the Company's Web site at www.emcorgroup.com.
This release may include "forward looking statements." These statements are
based on certain assumptions and analyses made by the Company in light of its
experience and its perception of historical trends, current conditions, expected
future developments and other factors it believes are appropriate. Such
statements are subject to a number of assumptions, risks and uncertainties,
general economic and business conditions, business opportunities that may be
presented to and pursued by the Company and other factors, many of which are
beyond the control of the Company. Actual results may differ materially from
those anticipated in the statements.