8-KEarnings & ResultsExhibits & Filings

EMCOR Group, Inc. 8-K Report, Financial Results (Oct 29, 2009)

Filed October 29, 2009For Securities:EME

Summary

EMCOR Group, Inc. reported its third-quarter fiscal 2009 results on October 29, 2009. The company generated $1.37 billion in revenue for the quarter, a decrease from $1.72 billion in the prior year period. Net income for the quarter was $39.99 million, or $0.59 per diluted share, down from $48.64 million, or $0.72 per diluted share, in Q3 2008. Despite the year-over-year revenue and profit decline, EMCOR highlighted improved operating margins of 4.9% compared to 4.6% in the prior year, driven by strong execution and project management. The company also raised its full-year 2009 diluted EPS guidance to a range of $2.20 to $2.35, signaling confidence in its operational performance and future outlook. The company's contract backlog stood at $3.39 billion as of September 30, 2009, a decrease from $4.42 billion in the prior year, primarily due to lower contract awards in the hospitality and commercial sectors. However, backlog growth was noted in the healthcare and institutional sectors. EMCOR's balance sheet remained strong, with a significant increase in cash and cash equivalents to $648.2 million from $405.9 million at year-end 2008, indicating robust cash flow generation and financial flexibility. Management expressed cautious optimism, acknowledging ongoing economic challenges but emphasizing their ability to adapt to market shifts and leverage potential benefits from government stimulus spending.

Key Highlights

  • 1Third quarter 2009 revenues were $1.37 billion, down from $1.72 billion in Q3 2008.
  • 2Third quarter 2009 diluted EPS was $0.59, compared to $0.72 in Q3 2008.
  • 3Operating margin improved to 4.9% in Q3 2009 from 4.6% in Q3 2008.
  • 4Contract backlog decreased year-over-year to $3.39 billion as of September 30, 2009, from $4.42 billion.
  • 5Backlog decline was primarily due to lower awards in hospitality and commercial sectors, partially offset by growth in healthcare and institutional sectors.
  • 6Cash and cash equivalents increased significantly to $648.2 million as of September 30, 2009, from $405.9 million at December 31, 2008.
  • 7Full-year 2009 diluted EPS guidance was raised to a range of $2.20 to $2.35.

Frequently Asked Questions

EMCOR's third-quarter 2009 revenues decreased to $1.37 billion from $1.72 billion in the prior year. Net income attributable to EMCOR Group, Inc. also fell to $39.99 million ($0.59 per diluted share) from $48.64 million ($0.72 per diluted share) in the third quarter of 2008. However, the operating margin improved to 4.9% from 4.6% year-over-year.

As of September 30, 2009, EMCOR's contract backlog was $3.39 billion, down from $4.42 billion a year earlier. This decline is largely attributed to reduced contract awards in the hospitality/gaming and commercial sectors. However, the company noted backlog growth in the healthcare and institutional sectors, and the overall rate of backlog decline has decreased throughout 2009.

Yes, EMCOR has updated its full-year 2009 guidance. The company now expects full-year diluted Earnings Per Share (EPS) to be in the range of $2.20 to $2.35. This increase in guidance reflects the company's performance in the first nine months and current market conditions.

EMCOR's balance sheet remains strong. Notably, cash and cash equivalents significantly increased to $648.2 million as of September 30, 2009, compared to $405.9 million at the end of 2008. This strong liquidity position provides financial flexibility for managing business opportunities and investing in strategic growth.