Summary
EMCOR Group, Inc. reported solid revenue growth for the second quarter and first half of 2012, with revenues increasing by 18.0% and 12.6% respectively, compared to the prior year periods. This growth was driven by a combination of organic increases across most business segments and contributions from recent acquisitions, particularly in the United States mechanical construction and facilities services and United States facilities services segments. Net income attributable to EMCOR Group, Inc. also saw a healthy increase. Despite the revenue growth, the company experienced a slight compression in operating margins, with operating income as a percentage of revenues decreasing from 3.7% to 3.5% for the quarter and from 3.5% to 3.3% for the six-month period. This margin pressure was attributed to lower margins in specific segments like United States electrical construction and facilities services, and United Kingdom construction and facilities services, partly offset by improved performance in the United States mechanical construction and facilities services segment. The company also noted a decrease in backlog compared to the previous year, influenced by a reduction in the United Kingdom and domestic construction segments, though this was partially offset by acquisitions.
Financial Highlights
50 data points| Revenue | $1.59B |
| Cost of Revenue | $1.40B |
| Gross Profit | $193.96M |
| SG&A Expenses | $137.68M |
| Operating Income | $56.29M |
| Interest Expense | $1.88M |
| Net Income | $33.45M |
| EPS (Basic) | $0.50 |
| EPS (Diluted) | $0.49 |
| Shares Outstanding (Basic) | 66.75M |
| Shares Outstanding (Diluted) | 67.70M |
Key Highlights
- 1Revenues increased by 18.0% for the three months ended June 30, 2012, reaching $1.59 billion, and by 12.6% for the six months ended June 30, 2012, reaching $3.13 billion, compared to the prior year periods.
- 2Net income attributable to EMCOR Group, Inc. increased to $33.4 million for the quarter and $60.6 million for the six months, up from $28.8 million and $53.4 million, respectively.
- 3Diluted earnings per common share from continuing operations rose to $0.49 for the quarter and $0.89 for the six months, compared to $0.43 and $0.77 in the prior year periods.
- 4Operating margins saw a slight decrease, with operating income as a percentage of revenues at 3.5% for the quarter and 3.3% for the six months, down from 3.7% and 3.5% respectively.
- 5Backlog decreased to $3.28 billion at June 30, 2012, from $3.54 billion at June 30, 2011, excluding the disposed Canadian subsidiary.
- 6The company completed an immaterial acquisition in early 2012, which expanded its service capabilities.
- 7EMCOR repurchased approximately $21.2 million of its common stock during the first half of 2012, with $51.3 million remaining under its authorized repurchase program.