Summary
EMCOR Group, Inc. reported increased revenues and operating income for the three and six months ended June 30, 2011, compared to the same periods in 2010. This improvement was driven by strategic acquisitions, notably the significant USM Services Holdings, Inc. acquisition, which bolstered the United States facilities services segment, and organic growth in several key areas including United States electrical and United Kingdom construction and facilities services. Despite a challenging economic environment that pressured gross margins, the company demonstrated effective cost management, leading to improved operating margins. Financially, EMCOR saw a substantial increase in goodwill and identifiable intangible assets, largely due to the USM acquisition, reflecting significant investment in growth. While cash from operations improved year-over-year, a considerable portion of cash was utilized for investing activities, primarily acquisitions. The company also successfully managed its debt obligations, with a strong focus on maintaining liquidity through its revolving credit facility. Looking ahead, EMCOR is strategically divesting its Canadian operations, indicating a focus on optimizing its portfolio for future growth and profitability.
Financial Highlights
50 data points| Revenue | $1.35B |
| Cost of Revenue | $1.17B |
| Gross Profit | $174.66M |
| SG&A Expenses | $124.47M |
| Operating Income | $50.05M |
| Interest Expense | $2.81M |
| Net Income | $28.81M |
| EPS (Basic) | $0.43 |
| EPS (Diluted) | $0.42 |
| Shares Outstanding (Basic) | 66.85M |
| Shares Outstanding (Diluted) | 68.59M |
Key Highlights
- 1Revenue increased by 9.7% for the quarter and 7.5% for the six months, reaching $1.4 billion and $2.7 billion respectively.
- 2Operating income saw a significant increase of 34.8% for the quarter and 18.4% for the six months, reaching $49.1 million and $91.5 million respectively, partly due to a large impairment charge in the prior year.
- 3Net income attributable to EMCOR Group, Inc. increased by 6.1% for the quarter to $28.8 million and by 9.1% for the six months to $53.4 million.
- 4The company completed the acquisition of USM Services Holdings, Inc. on June 30, 2011, adding $255.0 million in consideration and significantly increasing goodwill and intangible assets.
- 5Backlog increased to $3.80 billion as of June 30, 2011, from $3.15 billion in the prior year, indicating strong future revenue potential.
- 6The company announced the agreement to sell its Canadian subsidiary, signaling a strategic portfolio adjustment.
- 7Cash from operations improved significantly, moving from a use of $74.2 million in the prior year's six months to a provision of $5.0 million in the current period.