8-KEarnings & ResultsExhibits & Filings

EMCOR Group, Inc. 8-K Report, Financial Results (Feb 25, 2008)

Filed February 25, 2008For Securities:EME

Summary

EMCOR Group, Inc. reported strong fourth quarter and full-year 2007 financial results, highlighted by record revenues and operating income. For the fourth quarter of 2007, revenues increased by 31.2% to $1.77 billion, with organic revenue growth of 21.9%. Net income rose 25.2% to $50.3 million, or $0.75 per diluted share, compared to the prior year quarter. The company also achieved a record contract backlog of $4.49 billion, up 28.4% year-over-year, signaling robust future revenue potential. For the full year 2007, EMCOR generated record revenues of $5.93 billion, a 20.9% increase, and operating income grew by 78.8% to $199.8 million. Diluted earnings per share for the full year reached $1.90, including income from discontinued operations. The company emphasized strong performance across North America, successful integration of acquisitions, and a strategic focus on growth markets like oil and gas, healthcare, and transportation, which are considered countercyclical to broader economic trends.

Key Highlights

  • 1Record fourth quarter 2007 revenues of $1.77 billion, up 31.2% year-over-year.
  • 2Fourth quarter 2007 net income increased 25.2% to $50.3 million, or $0.75 per diluted share.
  • 3Record contract backlog of $4.49 billion as of December 31, 2007, up 28.4% from the prior year.
  • 4Full-year 2007 revenues reached a record $5.93 billion, a 20.9% increase.
  • 5Full-year 2007 operating income grew significantly by 78.8% to $199.8 million.
  • 6Full-year 2007 diluted EPS was $1.90.
  • 7Company expects 2008 revenues between $6.3 billion and $6.5 billion, and diluted EPS of $2.08 to $2.28.

Frequently Asked Questions

EMCOR reported record revenues of $1.77 billion, a 31.2% increase year-over-year, and a 25.2% rise in net income to $50.3 million, or $0.75 per diluted share. Operating income more than doubled, increasing by 104.3% to $86.1 million, with operating margin improving to 4.9% from 3.1% in the prior year quarter. Additionally, the company achieved a record contract backlog of $4.49 billion.

For the full year 2007, EMCOR achieved record revenues of $5.93 billion, up 20.9% from 2006. Operating income saw a substantial increase of 78.8% to $199.8 million. Diluted earnings per share for the full year were $1.90. The company also highlighted strong organic revenue growth and successful integration of acquisitions.

Based on current market conditions and its backlog, EMCOR expects 2008 revenues to be between $6.3 billion and $6.5 billion. The company also projects diluted earnings per share for 2008 to be in the range of $2.08 to $2.28, indicating continued growth expectations.

The company cited strong organic revenue growth of 21.9% in the fourth quarter and a commitment to cost containment, which helped expand operating margins. Selling, general, and administrative (SG&A) expenses as a percentage of revenue decreased to 8.7% in Q4 2007 from 9.2% in Q4 2006. The company also benefited from a robust backlog and strategic positioning in growth markets.