Summary
EMCOR Group, Inc. reported a modest increase in revenues for the first quarter of 2013, reaching $1.57 billion, up 1.9% from the prior year period. This revenue growth was primarily driven by stronger performance in the United States Facilities Services segment, alongside contributions from the United States Electrical Construction and Facilities Services segment. Despite increased revenues, the company experienced a significant rise in net cash used in operating activities, largely due to working capital changes. Profitability saw improvement with operating income increasing to $51.3 million and net income attributable to EMCOR Group, Inc. rising to $30.2 million, leading to diluted EPS of $0.44. The company maintained a strong balance sheet, ending the quarter with $499.1 million in cash and cash equivalents, though this represented a decrease from the previous quarter. The company's backlog remained robust at $3.42 billion, indicating continued demand for its services, particularly in electrical construction. However, the mechanical construction and United Kingdom segments faced revenue declines. Management remains focused on disciplined bidding to ensure profitable project execution amidst a competitive market. While facing some headwinds in specific segments and increased operational cash outflow, the overall financial performance for the quarter was positive, driven by growth in key service areas and improved profitability.
Financial Highlights
50 data points| Revenue | $1.55B |
| Cost of Revenue | $1.38B |
| Gross Profit | $191.88M |
| SG&A Expenses | $138.51M |
| Operating Income | $51.27M |
| Interest Expense | $1.86M |
| Net Income | $30.17M |
| EPS (Basic) | $0.45 |
| EPS (Diluted) | $0.44 |
| Shares Outstanding (Basic) | 67.11M |
| Shares Outstanding (Diluted) | 68.10M |
Key Highlights
- 1Total revenues increased by 1.9% to $1.57 billion in Q1 2013 compared to Q1 2012.
- 2Net income attributable to EMCOR Group, Inc. increased to $30.2 million, or $0.44 per diluted share, up from $27.1 million, or $0.40 per diluted share, in the prior year quarter.
- 3Operating income increased to $51.3 million from $46.2 million in the prior year period, with operating margin improving to 3.3% from 3.0%.
- 4The United States Facilities Services segment showed strong performance, with revenues up significantly and contributing to the overall increase in operating income.
- 5Backlog remained strong at $3.42 billion as of March 31, 2013, indicating a healthy pipeline of future work, primarily driven by electrical construction projects.
- 6Net cash used in operating activities significantly increased to $95.1 million from $33.1 million in the prior year, primarily due to changes in working capital.