8-KEarnings & ResultsExhibits & Filings

EMCOR Group, Inc. 8-K Report, Financial Results (Oct 30, 2007)

Filed October 30, 2007For Securities:EME

Summary

EMCOR Group, Inc. (EME) reported strong third-quarter 2007 results, demonstrating significant growth in both revenues and profitability. Revenues increased by 21.1% year-over-year to $1.50 billion, with a substantial portion of this growth driven by organic expansion (13.8%) alongside contributions from recent acquisitions. Net income saw a remarkable surge of 68.3% to $37.1 million, translating to diluted EPS of $0.55, up from $0.33 in the prior year period. The company also announced a record contract backlog of $4.48 billion, indicating robust future demand for its services. The press release also highlighted the successful completion of the Ohmstede, Ltd. acquisition for approximately $455 million. Ohmstede is expected to be accretive to earnings and contributed $19.0 million in revenues and $125.9 million to the backlog in the third quarter. Furthermore, EMCOR raised its full-year 2007 guidance for both revenues (to $5.8 billion) and diluted EPS from continuing operations ($1.75 - $1.80), reflecting confidence in its continued strong performance and favorable market conditions.

Key Highlights

  • 1Reported record third-quarter revenues of $1.50 billion, a 21.1% increase year-over-year.
  • 2Achieved record operating income of $54.9 million, a 57.8% increase, with operating margin improving to 3.7% from 2.8%.
  • 3Net income from continuing operations surged by 68.3% to $37.1 million, with diluted EPS growing to $0.55 from $0.33.
  • 4Announced a record contract backlog of $4.48 billion as of September 30, 2007, up 31.8% year-over-year.
  • 5Completed the acquisition of Ohmstede, Ltd. for approximately $455 million, which was accretive to EPS and added to backlog.
  • 6Raised full-year 2007 revenue guidance to $5.8 billion and diluted EPS guidance to $1.75 - $1.80.
  • 7Organic revenue growth was a strong 13.8% for the third quarter, demonstrating underlying business strength.

Frequently Asked Questions

EMCOR reported record revenues of $1.50 billion, a 21.1% increase year-over-year. Operating income also saw significant growth, rising 57.8% to $54.9 million, and net income from continuing operations jumped 68.3% to $37.1 million, resulting in diluted earnings per share of $0.55. The company also achieved a record contract backlog of $4.48 billion.

The acquisition of Ohmstede, Ltd. for approximately $455 million was completed during the quarter. Ohmstede contributed $19.0 million in revenues and $125.9 million to the company's backlog. Importantly, the acquisition was slightly accretive to diluted earnings per share for the period.

Yes, based on strong performance and a robust backlog, EMCOR raised its full-year 2007 guidance. The company now expects revenues of $5.8 billion and diluted earnings per share from continuing operations in the range of $1.75 to $1.80.

The record contract backlog of $4.48 billion at September 30, 2007, represents a 31.8% increase from the prior year. This indicates strong demand for EMCOR's services and provides visibility into future revenue streams, supporting the company's optimistic outlook.