Dividend Increase
The Company today announced that its Board of Directors has approved an increase to the Company’s regular quarterly dividend to $0.25 per share from $0.18 per share. The Board expects to declare this cash dividend starting in the second quarter of 2024.
Mr. Guzzi said, “This planned dividend increase is a testament to the exceptional execution of our employees, confidence in our business, and solid financial foundation. We believe our strong performance across key end markets positions us for sustained success going into 2024.”
Fourth Quarter Earnings Conference Call Information
EMCOR Group's fourth quarter conference call will be available live via internet broadcast today, Wednesday, February 28, at 10:30 AM Eastern Standard Time. The live call may be accessed through the Company's website at www.emcorgroup.com.
About EMCOR
EMCOR Group, Inc. is a Fortune 500 leader in mechanical and electrical construction services, industrial and energy infrastructure and building services. This press release and other press releases may be viewed at the Company’s website at www.emcorgroup.com. EMCOR routinely posts information that may be important to investors in the “Investor Relations” section of our website at www.emcorgroup.com. Investors and potential investors are encouraged to consult the EMCOR website regularly for important information about EMCOR.
Forward Looking Statements:
This release contains forward-looking statements. Such statements speak only as of February 28, 2024, and EMCOR assumes no obligation to update any such forward-looking statements, unless required by law. These forward-looking statements may include statements regarding anticipated future operating and financial performance, including financial guidance and projections underlying that guidance; the nature and impact of our remaining performance obligations; our ability to be prudent capital allocators; our ability to pursue organic investments and acquisitions; our ability to return capital to shareholders; market opportunities; market growth prospects; customer trends; and project mix. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated (whether expressly or implied) by the forward-looking statements. Accordingly, these statements do not guarantee future performance or events. Applicable risks and uncertainties include, but are not limited to, adverse effects of general economic conditions; domestic and international political developments; changes in the specific markets for EMCOR’s services; adverse business conditions, including labor market tightness and/or disruption, productivity challenges, the nature and extent of supply chain disruptions impacting availability and pricing of materials, and inflationary trends more generally, including fluctuations in energy costs; the impact of legislation and/or government regulations; changes in interest rates; the availability of adequate levels of surety bonding; increased competition; and unfavorable developments in the mix of our business. Certain of the risk factors associated with EMCOR’s business are also discussed in Part I, Item 1A “Risk Factors,” of the Company’s 2023 Form 10-K, and in other reports filed from time to time with the Securities and Exchange Commission and available at www.sec.gov and www.emcorgroup.com. Such risk factors should be taken into account in evaluating our business, including any forward-looking statements.
Non-GAAP Measures:
This release also includes certain financial measures that were not prepared in accordance with U.S. generally accepted accounting principles (GAAP). Reconciliations of those non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this release. The Company uses these non-GAAP measures as key performance indicators for the purpose of evaluating performance internally. We also believe that these non-GAAP measures provide investors with useful information with respect to our ongoing operations. Any non-GAAP financial measures presented are not, and should not be viewed as, substitutes for financial measures required by GAAP, have no standardized meaning prescribed by GAAP, and may not be comparable to the calculation of similar measures of other companies.
EMCOR GROUP, INC.
|
||||||||||||||||
|
|
(Unaudited) |
|
|
|
|
||||||||||
|
|
For the quarters ended
|
|
For the years ended
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Revenues |
|
$ |
3,439,221 |
|
|
$ |
2,949,822 |
|
|
$ |
12,582,873 |
|
|
$ |
11,076,120 |
|
Cost of sales |
|
|
2,821,476 |
|
|
|
2,495,022 |
|
|
|
10,493,534 |
|
|
|
9,472,526 |
|
| Gross profit |
|
|
617,745 |
|
|
|
454,800 |
|
|
|
2,089,339 |
|
|
|
1,603,594 |
|
| Selling, general and administrative expenses |
|
|
328,549 |
|
|
|
277,618 |
|
|
|
1,211,233 |
|
|
|
1,038,717 |
|
| Impairment loss on long-lived assets |
|
|
— |
|
|
|
— |
|
|
|
2,350 |
|
|
|
— |
|
| Operating income |
|
|
289,196 |
|
|
|
177,182 |
|
|
|
875,756 |
|
|
|
564,877 |
|
| Net periodic pension (cost) income |
|
|
(279 |
) |
|
|
1,023 |
|
|
|
(1,119 |
) |
|
|
4,311 |
|
| Interest income (expense), net |
|
|
2,830 |
|
|
|
(4,204 |
) |
|
|
(1,784 |
) |
|
|
(10,438 |
) |
| Income before income taxes |
|
|
291,747 |
|
|
|
174,001 |
|
|
|
872,853 |
|
|
|
558,750 |
|
| Income tax provision |
|
|
80,232 |
|
|
|
47,701 |
|
|
|
239,524 |
|
|
|
152,628 |
|
| Net income including noncontrolling interests |
|
|
211,515 |
|
|
|
126,300 |
|
|
|
633,329 |
|
|
|
406,122 |
|
| Net (loss) income attributable to noncontrolling interests |
|
|
(2 |
) |
|
|
— |
|
|
|
335 |
|
|
|
— |
|
| Net income attributable to EMCOR Group, Inc. |
|
$ |
211,517 |
|
|
$ |
126,300 |
|
|
$ |
632,994 |
|
|
$ |
406,122 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Basic earnings per common share: |
|
$ |
4.49 |
|
|
$ |
2.65 |
|
|
$ |
13.37 |
|
|
$ |
8.13 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Diluted earnings per common share: |
|
$ |
4.47 |
|
|
$ |
2.63 |
|
|
$ |
13.31 |
|
|
$ |
8.10 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Weighted average shares of common stock outstanding: |
|
|
|
|
|
|
|
|
||||||||
| Basic |
|
|
47,097,762 |
|
|
|
47,710,479 |
|
|
|
47,358,467 |
|
|
|
49,931,940 |
|
| Diluted |
|
|
47,331,532 |
|
|
|
47,936,737 |
|
|
|
47,564,258 |
|
|
|
50,136,262 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Dividends declared per common share |
|
$ |
0.18 |
|
|
$ |
0.15 |
|
|
$ |
0.69 |
|
|
$ |
0.54 |
|
|
EMCOR GROUP, INC.
|
||||||
|
|
|
December 31, 2023 |
|
December 31, 2022 |
||
| ASSETS |
|
|
|
|
||
| Current assets: |
|
|
|
|
||
| Cash and cash equivalents |
|
$ |
789,750 |
|
$ |
456,439 |
| Accounts receivable, net |
|
|
3,203,490 |
|
|
2,567,371 |
| Contract assets |
|
|
269,885 |
|
|
273,176 |
| Inventories |
|
|
110,774 |
|
|
85,641 |
| Prepaid expenses and other |
|
|
73,072 |
|
|
79,346 |
| Total current assets |
|
|
4,446,971 |
|
|
3,461,973 |
| Property, plant, and equipment, net |
|
|
179,378 |
|
|
157,819 |
| Operating lease right-of-use assets |
|
|
310,498 |
|
|
268,063 |
| Goodwill |
|
|
956,549 |
|
|
919,151 |
| Identifiable intangible assets, net |
|
|
586,032 |
|
|
593,975 |
| Other assets |
|
|
130,293 |
|
|
123,626 |
| Total assets |
|
$ |
6,609,721 |
|
$ |
5,524,607 |
| LIABILITIES AND EQUITY |
|
|
|
|
||
| Current liabilities: |
|
|
|
|
||
| Current maturities of long-term debt and finance lease liabilities |
|
$ |
2,465 |
|
$ |
15,567 |
| Accounts payable |
|
|
935,967 |
|
|
849,284 |
| Contract liabilities |
|
|
1,595,109 |
|
|
1,098,263 |
| Accrued payroll and benefits |
|
|
596,936 |
|
|
465,000 |
| Other accrued expenses and liabilities |
|
|
312,642 |
|
|
258,190 |
| Operating lease liabilities, current |
|
|
75,236 |
|
|
67,218 |
| Total current liabilities |
|
|
3,518,355 |
|
|
2,753,522 |
| Long-term debt and finance lease liabilities |
|
|
2,838 |
|
|
231,625 |
| Operating lease liabilities, long-term |
|
|
259,430 |
|
|
220,764 |
| Other long-term obligations |
|
|
358,283 |
|
|
344,405 |
| Total liabilities |
|
|
4,138,906 |
|
|
3,550,316 |
| Equity: |
|
|
|
|
||
| Total EMCOR Group, Inc. stockholders’ equity |
|
|
2,469,778 |
|
|
1,973,589 |
| Noncontrolling interests |
|
|
1,037 |
|
|
702 |
| Total equity |
|
|
2,470,815 |
|
|
1,974,291 |
| Total liabilities and equity |
|
$ |
6,609,721 |
|
$ |
5,524,607 |
|
EMCOR GROUP, INC.
|
||||||||
|
|
|
2023 |
|
2022 |
||||
| Cash flows - operating activities: |
|
|
|
|
||||
| Net income including noncontrolling interests |
|
$ |
633,329 |
|
|
$ |
406,122 |
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
| Depreciation and amortization |
|
|
51,822 |
|
|
|
47,296 |
|
| Amortization of identifiable intangible assets |
|
|
67,143 |
|
|
|
61,315 |
|
| Provision for credit losses |
|
|
7,859 |
|
|
|
5,166 |
|
| Deferred income taxes |
|
|
(16,651 |
) |
|
|
10,483 |
|
| Gain on sale or disposal of property, plant, and equipment |
|
|
(2,057 |
) |
|
|
(6,393 |
) |
| Non-cash expense for impairment of long-lived assets |
|
|
2,350 |
|
|
|
— |
|
| Non-cash share-based compensation expense |
|
|
13,739 |
|
|
|
12,125 |
|
| Other reconciling items |
|
|
268 |
|
|
|
925 |
|
| Changes in operating assets and liabilities, excluding the effect of businesses acquired |
|
|
141,853 |
|
|
|
(39,106 |
) |
| Net cash provided by operating activities |
|
|
899,655 |
|
|
|
497,933 |
|
| Cash flows - investing activities: |
|
|
|
|
||||
| Payments for acquisitions of businesses, net of cash acquired |
|
|
(96,491 |
) |
|
|
(98,656 |
) |
| Proceeds from sale or disposal of property, plant, and equipment |
|
|
13,604 |
|
|
|
7,145 |
|
| Purchases of property, plant, and equipment |
|
|
(78,404 |
) |
|
|
(49,289 |
) |
| Net cash used in investing activities |
|
|
(161,291 |
) |
|
|
(140,800 |
) |
| Cash flows - financing activities: |
|
|
|
|
||||
| Proceeds from revolving credit facility |
|
|
200,000 |
|
|
|
270,000 |
|
| Repayments of revolving credit facility |
|
|
(200,000 |
) |
|
|
(270,000 |
) |
| Repayments of long-term debt and debt issuance costs |
|
|
(246,171 |
) |
|
|
(13,875 |
) |
| Repayments of finance lease liabilities |
|
|
(2,776 |
) |
|
|
(3,551 |
) |
| Dividends paid to stockholders |
|
|
(32,684 |
) |
|
|
(27,187 |
) |
| Repurchases of common stock |
|
|
(127,713 |
) |
|
|
(660,609 |
) |
| Taxes paid related to net share settlements of equity awards |
|
|
(6,060 |
) |
|
|
(7,539 |
) |
| Issuances of common stock under employee stock purchase plan |
|
|
9,189 |
|
|
|
8,177 |
|
| Payments for contingent consideration arrangements |
|
|
(5,839 |
) |
|
|
(5,534 |
) |
| Net cash used in financing activities |
|
|
(412,054 |
) |
|
|
(710,118 |
) |
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
|
6,372 |
|
|
|
(12,515 |
) |
| Increase (decrease) in cash, cash equivalents, and restricted cash |
|
|
332,682 |
|
|
|
(365,500 |
) |
| Cash, cash equivalents, and restricted cash at beginning of year (1) |
|
|
457,068 |
|
|
|
822,568 |
|
| Cash, cash equivalents, and restricted cash at end of period (1) |
|
$ |
789,750 |
|
|
$ |
457,068 |
|
| (1) |
|
Includes $0.6 million and $1.2 million of restricted cash classified as “Prepaid expenses and other” in the Consolidated Balance Sheets as of December 31, 2022 and 2021, respectively. |
|
EMCOR GROUP, INC.
|
||||||
|
|
|
(Unaudited) |
||||
|
|
|
For the quarters ended
|
||||
|
|
|
2023 |
|
2022 |
||
| Revenues from unrelated entities: |
|
|
|
|
||
| United States electrical construction and facilities services |
|
$ |
763,404 |
|
$ |
713,589 |
| United States mechanical construction and facilities services |
|
|
1,472,532 |
|
|
1,133,260 |
| United States building services |
|
|
802,029 |
|
|
713,398 |
| United States industrial services |
|
|
292,476 |
|
|
276,243 |
| Total United States operations |
|
|
3,330,441 |
|
|
2,836,490 |
| United Kingdom building services |
|
|
108,780 |
|
|
113,332 |
| Total operations |
|
$ |
3,439,221 |
|
$ |
2,949,822 |
|
|
|
|
|
|
||
|
|
|
For the years ended
|
||||
|
|
|
2023 |
|
2022 |
||
| Revenues from unrelated entities: |
|
|
|
|
||
| United States electrical construction and facilities services |
|
$ |
2,783,723 |
|
$ |
2,433,114 |
| United States mechanical construction and facilities services |
|
|
5,074,803 |
|
|
4,292,208 |
| United States building services |
|
|
3,120,134 |
|
|
2,754,953 |
| United States industrial services |
|
|
1,167,790 |
|
|
1,118,767 |
| Total United States operations |
|
|
12,146,450 |
|
|
10,599,042 |
| United Kingdom building services |
|
|
436,423 |
|
|
477,078 |
| Total operations |
|
$ |
12,582,873 |
|
$ |
11,076,120 |
|
EMCOR GROUP, INC.
|
||||||||
|
|
|
(Unaudited) |
||||||
|
|
|
For the quarters ended
|
||||||
|
|
|
2023 |
|
2022 |
||||
| Operating income (loss): |
|
|
|
|
||||
| United States electrical construction and facilities services |
|
$ |
76,275 |
|
|
$ |
58,082 |
|
| United States mechanical construction and facilities services |
|
|
186,094 |
|
|
|
104,780 |
|
| United States building services |
|
|
42,052 |
|
|
|
37,941 |
|
| United States industrial services |
|
|
12,642 |
|
|
|
1,463 |
|
| Total United States operations |
|
|
317,063 |
|
|
|
202,266 |
|
| United Kingdom building services |
|
|
5,461 |
|
|
|
4,466 |
|
| Corporate administration |
|
|
(33,328 |
) |
|
|
(29,550 |
) |
| Total operations |
|
|
289,196 |
|
|
|
177,182 |
|
| Other items: |
|
|
|
|
||||
| Net periodic pension (cost) income |
|
|
(279 |
) |
|
|
1,023 |
|
| Interest income (expense), net |
|
|
2,830 |
|
|
|
(4,204 |
) |
| Income before income taxes |
|
$ |
291,747 |
|
|
$ |
174,001 |
|
|
|
|
|
|
|
||||
|
|
|
For the years ended
|
||||||
|
|
|
2023 |
|
2022 |
||||
| Operating income (loss): |
|
|
|
|
||||
| United States electrical construction and facilities services |
|
$ |
230,640 |
|
|
$ |
148,728 |
|
| United States mechanical construction and facilities services |
|
|
530,644 |
|
|
|
330,325 |
|
| United States building services |
|
|
182,995 |
|
|
|
146,639 |
|
| United States industrial services |
|
|
35,375 |
|
|
|
19,787 |
|
| Total United States operations |
|
|
979,654 |
|
|
|
645,479 |
|
| United Kingdom building services |
|
|
25,681 |
|
|
|
29,838 |
|
| Corporate administration |
|
|
(127,229 |
) |
|
|
(110,440 |
) |
| Impairment loss on long-lived assets |
|
|
(2,350 |
) |
|
|
— |
|
| Total operations |
|
|
875,756 |
|
|
|
564,877 |
|
| Other items: |
|
|
|
|
||||
| Net periodic pension (cost) income |
|
|
(1,119 |
) |
|
|
4,311 |
|
| Interest expense, net |
|
|
(1,784 |
) |
|
|
(10,438 |
) |
| Income before income taxes |
|
$ |
872,853 |
|
|
$ |
558,750 |
|
EMCOR GROUP, INC.
