Summary
EMCOR Group, Inc. reported strong third-quarter and year-to-date results for 2016, demonstrating significant growth in revenues and operating income. The company achieved record quarterly revenues of $1.92 billion, a 13.2% increase year-over-year, driven by robust performance across its domestic construction and building services segments. This growth was further bolstered by strategic acquisitions, notably Ardent Services, L.L.C. and Rabalais Constructors, LLC, which contributed significantly to the electrical construction and facilities services segment. Profitability also saw a substantial improvement, with operating income rising to $86.1 million from $70.0 million in the prior year's quarter, reflecting an improved operating margin of 4.5%. Diluted earnings per share from continuing operations reached $0.85, up from $0.66 in the comparable period. The company's backlog remains strong at $3.90 billion, indicating sustained future revenue potential. EMCOR's financial position appears solid, with a healthy increase in cash and cash equivalents and effective management of its credit facilities, which were amended and restated to provide greater capacity.
Financial Highlights
51 data points| Revenue | $1.92B |
| Cost of Revenue | $1.66B |
| Gross Profit | $268.04M |
| SG&A Expenses | $181.44M |
| Operating Income | $86.06M |
| Interest Expense | $3.48M |
| Net Income | $51.53M |
| EPS (Basic) | $0.84 |
| EPS (Diluted) | $0.84 |
| Shares Outstanding (Basic) | 60.89M |
| Shares Outstanding (Diluted) | 61.32M |
Key Highlights
- 1Revenues increased by 13.2% to $1.92 billion for the three months ended September 30, 2016, driven by strong performance across most segments, particularly domestic construction and building services.
- 2Operating income grew to $86.1 million from $70.0 million in the prior year's quarter, with operating margin improving to 4.5%.
- 3Diluted earnings per common share from continuing operations rose to $0.85 from $0.66 in the same period last year.
- 4The company completed the significant acquisition of Ardent Services, L.L.C. and Rabalais Constructors, LLC for $201.4 million, enhancing its electrical construction and facilities services capabilities.
- 5Backlog increased to $3.90 billion as of September 30, 2016, indicating a healthy pipeline of future work.
- 6EMCOR amended and restated its credit agreement, establishing a larger $900 million revolving credit facility and a $400 million term loan, improving its financial flexibility.
- 7Net cash provided by operating activities increased to $128.9 million for the nine months ended September 30, 2016, up from $95.6 million in the prior year.