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 28, 2005
EMCOR Group, Inc.
--------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Its Charter)
Delaware
--------------------------------------------------------------------------------
(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
--------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(203) 849-7800
(Registrant's Telephone Number, Including Area Code)
N/A
--------------------------------------------------------------------------------
(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))
EMCOR GROUP, INC. REPORTS 2005 FIRST QUARTER RESULTS
- Operating Income Shows Significant Increase -
NORWALK, CONNECTICUT, April 28, 2005 - EMCOR Group, Inc. (NYSE: EME) today
reported results for the first quarter ended March 31, 2005.
In the first quarter of 2005, the Company reported net income of $1.9 million,
or $0.12 per diluted share, compared with net income of $5.7 million, or $0.37
per diluted share, in the first quarter of 2004. Revenues in the first quarter
of 2005 totaled $1.09 billion, compared with total revenues of $1.11 billion in
the year-ago quarter.
Included in the Company's 2004 first quarter results were a $9.6 million
reversal of income tax reserves and approximately $5.2 million in restructuring
expenses. First quarter 2005 results include restructuring expenses of $1.2
million primarily related to the Company's Canadian and UK operations.
Operating income for the first quarter of 2005, including the $1.2 million
restructuring charge, was $5.5 million compared to an operating loss of $4.5
million in the first quarter of last year, which included the $5.2 million
restructuring charge in the year-ago period. The increase in operating income
was largely due to improved performance at the Company's Facilities Services
segment and its Mechanical Construction segment, as well as aggressive
management of overhead expenses in virtually all areas. For the 2005 first
quarter, selling, general and administrative expenses ("SG&A") totaled $93.4
million, or 8.5% of revenues, a decline of 7.1% compared to SG&A of $100.5
million, or 9.1% of revenues in the first quarter of 2004.
As of March 31, 2005, contract backlog was $2.72 billion, compared to backlog of
$2.75 billion at December 31, 2004 and $3.08 billion at March 31, 2004. The
reduction in backlog relative to the year ago period is consistent with the
Company's strategy to conserve capacity to service the recovering private sector
marketplace.
- MORE -
EMCOR Announces 2005 First Quarter Results Page 2
Frank T. MacInnis, Chairman and CEO of EMCOR Group, stated, "As expected, the
first quarter of 2005 saw the continuation of a gradual recovery in the markets
we serve which, when combined with the actions we've taken within our
organization, resulted in improved operating results across most of our
operations. We saw solid improvement within our Mechanical segment, as well as
improved results within our Facilities Services segment which continues to grow
and gain share in the marketplace. We are also particularly pleased with our
ongoing cost reduction initiatives, which resulted in a reduction in SG&A
expenses of over 7% compared to year-ago levels."
Mr. MacInnis continued, "In early 2004 we announced that EMCOR would begin a
process of "rebalancing" our contract backlog by reducing our proportional
exposure to public-sector projects and conserving capacity for private-sector
work. Our efforts were successful; in succeeding quarters we dramatically
reduced our activity in the institutional market, particularly K-through-12
educational projects, and the current quarter reflects a strong increase in
"systems-rich" healthcare projects, a demographically-driven market in which we
have a long history of success. We will continue to exercise the contract
selectivity and bidding discipline that is necessary to gain access to markets
offering the greatest margin opportunities, and we expect our operating results
to reflect these efforts."
Mr. MacInnis concluded, "As we enter a seasonally stronger period for our
businesses, we are encouraged by the increased opportunities we are seeing in
many of our markets. We are pleased with the improved performance of our
operations, and expect to see a continuation of these trends as we move through
the year. The markets we serve are continuing their gradual recovery, and as we
move into the warmer months we are awaiting the return of higher-margin, small
task discretionary projects that should become available. At this point, we
continue to expect revenue in 2005 to be between $4.4 billion and $4.6 billion,
and earnings per share for the year to be between $2.00 and $2.40."
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.
EMCOR Group's first quarter conference call will be available live via Internet
broadcast today, Thursday, April 28, at 10:30 AM Eastern Time. You can access
the live call through the Home Page of the Company's Web site at
www.emcorgroup.com.
MORE -
EMCOR Announces 2005 First Quarter Results Page 3
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's 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, project 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, increased
competition, unfavorable labor productivity, mix of business, and risks
associated with foreign operations. Certain of the risks and factors associated
with EMCOR's business are also discussed in the Company's 2004 Form 10-K, its
Form 10-Q for the first quarter ended March 31, 2005, 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 Quarters Ended
March 31,
---------------------------
2005 2004
---- ----
Revenues $1,093,208 $1,109,086
Cost of sales 993,125 1,007,923
---------- ----------
Gross profit 100,083 101,163
Selling, general and administrative expenses 93,384 100,533
Restructuring expenses 1,171 5,179
---------- ----------
Operating income (loss) 5,528 (4,549)
Interest expense, net (1,640) (1,678)
Minority interest (865) (468)
---------- ----------
Income (loss) before income taxes 3,023 (6,695)
Income tax provision (benefit) 1,110 (12,412)
---------- ----------
Net income $ 1,913 $ 5,717
========== ==========
Basic earnings per share $ 0.12 $ 0.38
========== ==========
Diluted earnings per share $ 0.12 $ 0.37
========== ==========
Weighted average shares of
Common Stock outstanding:
Basic 15,353,231 15,057,308
Diluted 15,699,488 15,462,941
EMCOR GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, 2005 December 31,
(Unaudited) 2004
-------------- ------------
ASSETS
Current assets:
Cash and cash equivalents $ 69,272 $ 70,404
Accounts receivable, net 1,038,357 1,073,454
Costs and estimated earnings in excess of billings
on uncompleted contracts 230,382 240,716
Inventories 9,359 10,580
Prepaid expenses and other 30,674 30,417
---------- ----------
Total current assets 1,378,044 1,425,571
Investments, notes, and other long-term receivables 26,783 26,472
Property, plant & equipment, net 54,447 56,468
Goodwill 279,929 279,432
Identifiable intangible assets, net 17,921 18,782
Other assets 10,362 11,244
---------- ----------
Total assets $1,767,486 $1,817,969
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Borrowings under working capital credit line $ 82,400 $ 80,000
Current maturities of long-term debt and capital
lease obligations 828 806
Accounts payable 427,667 467,415
Billings in excess of costs and estimated earnings
on uncompleted contracts 351,827 359,667
Accrued payroll and benefits 129,578 138,771
Other accrued expenses and liabilities 112,604 115,714
---------- ----------
Total current liabilities 1,104,904 1,162,373
Long-term debt and capital lease obligations 1,360 1,332
Other long-term obligations 96,788 91,903
Total stockholders' equity 564,434 562,361
---------- ----------
Total liabilities and stockholders' equity $1,767,486 $1,817,969
========== ==========
# # #