8-KEarnings & ResultsExhibits & Filings

EMCOR Group, Inc. 8-K Report, Financial Results (Apr 26, 2007)

Filed April 26, 2007For Securities:EME

Summary

EMCOR Group, Inc. reported strong first-quarter 2007 results, demonstrating significant operational and financial improvements. The company saw a substantial 14.5% increase in revenues, reaching $1.32 billion, driven by robust demand for its services. This revenue growth translated into a 57.1% surge in income from continuing operations, resulting in diluted earnings per share of $0.36. The company also achieved a notable increase in operating income, up 53.6% to $18.9 million, with operating margins improving to 1.4% from 1.1% in the prior year period. The company's contract backlog reached a record $3.84 billion as of March 31, 2007, a 36.5% increase year-over-year, indicating strong future revenue potential. Management highlighted strong performance across most operating segments, particularly in U.S. Electrical and U.S. Mechanical operations, and a solid contribution from the Facilities Services segment. The increasing proportion of private sector commercial and hospitality contracts within the backlog suggests a favorable shift in market demand.

Key Highlights

  • 1Revenues increased by 14.5% to $1.32 billion for the first quarter of 2007 compared to the prior year period.
  • 2Income from continuing operations grew by 57.1% to $12.0 million, or $0.36 per diluted share.
  • 3Operating income saw a significant increase of 53.6% to $18.9 million, with improved operating margins.
  • 4Contract backlog reached a record $3.84 billion, up 36.5% year-over-year, indicating strong future demand.
  • 5Private sector commercial and hospitality contracts now represent 53% of the total backlog, up from 47% in the prior year.
  • 6Selling, general and administrative (SG&A) expenses decreased as a percentage of revenues to 8.6% from 8.9%.
  • 7EMCOR reiterated its full-year 2007 guidance for revenues ($5.3B - $5.5B) and diluted EPS ($2.45 - $2.80).

Frequently Asked Questions

EMCOR reported a 14.5% increase in revenues to $1.32 billion and a 57.1% rise in income from continuing operations to $12.0 million, or $0.36 per diluted share. Operating income grew 53.6% to $18.9 million.

EMCOR's contract backlog reached a record $3.84 billion as of March 31, 2007, a 36.5% increase from the prior year. This record backlog suggests strong future revenue streams and continued demand for EMCOR's services.

The company noted an improvement in private sector markets, with private sector commercial and hospitality contracts making up 53% of the total backlog at the end of the first quarter of 2007, compared to 47% a year ago. This indicates a favorable shift and growing demand in this segment.

No, EMCOR reiterated its previously issued 2007 performance estimates, projecting revenues between $5.3 billion and $5.5 billion, and diluted earnings per share between $2.45 and $2.80. The company expects to potentially revise guidance in early to mid-June after its operations reforecast cycle.