EMCOR Group, Inc. Reports Second Quarter 2024 Results
Record Quarterly Revenues of
Record Quarterly Diluted EPS of
Remaining Performance Obligations of
Increases 2024
Increases 2024
Second Quarter 2024 Results of Operations
For the second quarter of 2024, revenues totaled
Operating income for the second quarter of 2024 was
Selling, general and administrative expenses for the second quarter of 2024 totaled
The Company's income tax rate for the second quarter of 2024 was 27.0%, compared to 27.4% for the second quarter of 2023.
Remaining performance obligations as of
First Six Months 2024 Results of Operations
Revenues for the first six months of 2024 totaled
Operating income for the first six months of 2024 was
Selling, general and administrative expenses totaled
Increases Full Year 2024 Guidance
Based on year-to-date 2024 performance, current operating conditions, and near-term visibility, the Company is:
-
Increasing its full-year 2024 revenue guidance range to
$14.5 billion -$15.0 billion , from the prior guidance range of$14.0 billion -$14.5 billion . -
Increasing its full-year 2024 diluted earnings per share guidance range to
$19.00 -$20.00 , from the prior guidance range of$15.50 -$16.50 .
Second Quarter Earnings Conference Call Information
About
Forward Looking Statements:
This release and related presentation contain forward-looking statements. Such statements speak only as of
Non-GAAP Measures:
This release and related presentation also include certain financial measures that were not prepared in accordance with
FINANCIAL HIGHLIGHTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share information) (Unaudited) |
||||||||||||||
|
|
For the quarters ended
|
|
For the six months ended
|
||||||||||
|
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
Revenues |
|
$ |
3,666,897 |
|
$ |
3,045,622 |
|
|
$ |
7,099,173 |
|
$ |
5,936,054 |
|
Cost of sales |
|
|
2,982,896 |
|
|
2,555,562 |
|
|
|
5,825,863 |
|
|
5,009,932 |
|
Gross profit |
|
|
684,001 |
|
|
490,060 |
|
|
|
1,273,310 |
|
|
926,122 |
|
Selling, general and administrative expenses |
|
|
351,193 |
|
|
293,393 |
|
|
|
680,549 |
|
|
574,545 |
|
Operating income |
|
|
332,808 |
|
|
196,667 |
|
|
|
592,761 |
|
|
351,577 |
|
Net periodic pension income (cost) |
|
|
221 |
|
|
(282 |
) |
|
|
443 |
|
|
(556 |
) |
Interest income (expense), net |
|
|
6,106 |
|
|
(2,692 |
) |
|
|
13,647 |
|
|
(4,524 |
) |
Income before income taxes |
|
|
339,135 |
|
|
193,693 |
|
|
|
606,851 |
|
|
346,497 |
|
Income tax provision |
|
|
91,563 |
|
|
53,098 |
|
|
|
162,130 |
|
|
94,429 |
|
Net income |
|
$ |
247,572 |
|
$ |
140,595 |
|
|
$ |
444,721 |
|
$ |
252,068 |
|
|
|
|
|
|
|
|
|
|
||||||
Basic earnings per common share |
|
$ |
5.27 |
|
$ |
2.97 |
|
|
$ |
9.45 |
|
$ |
5.30 |
|
|
|
|
|
|
|
|
|
|
||||||
Diluted earnings per common share |
|
$ |
5.25 |
|
$ |
2.95 |
|
|
$ |
9.41 |
|
$ |
5.28 |
|
|
|
|
|
|
|
|
|
|
||||||
Weighted average shares of common stock outstanding: |
|
|
|
|
|
|
|
|
||||||
Basic |
|
|
46,972,032 |
|
|
47,393,493 |
|
|
|
47,053,768 |
|
|
47,584,656 |
|
Diluted |
|
|
47,159,660 |
|
|
47,588,669 |
|
|
|
47,236,738 |
|
|
47,767,242 |
|
|
|
|
|
|
|
|
|
|
||||||
Dividends declared per common share |
|
$ |
0.25 |
|
$ |
0.18 |
|
|
$ |
0.43 |
|
$ |
0.33 |
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) |
||||||
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|
(Unaudited)
2024 |
|
2023 |
||
ASSETS |
|
|
|
|
||
Current assets: |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
807,318 |
|
$ |
789,750 |
Accounts receivable, net |
|
|
3,459,270 |
|
|
3,203,490 |
Contract assets |
|
|
293,677 |
|
|
269,885 |
Inventories |
|
|
103,896 |
|
|
110,774 |
Prepaid expenses and other |
|
|
76,628 |
|
|
73,072 |
Total current assets |
|
|
4,740,789 |
|
|
4,446,971 |
Property, plant, and equipment, net |
|
|
201,168 |
|
|
179,378 |
Operating lease right-of-use assets |
|
|
331,313 |
|
|
310,498 |
|
|
|
998,571 |
|
|
956,549 |
Identifiable intangible assets, net |
|
|
661,920 |
|
|
586,032 |
Other assets |
|
|
138,788 |
|
|
130,293 |
Total assets |
|
$ |
7,072,549 |
|
$ |
6,609,721 |
LIABILITIES AND EQUITY |
|
|
|
|
||
Current liabilities: |
|
|
|
|
||
Accounts payable |
|
$ |
922,002 |
|
$ |
935,967 |
Contract liabilities |
|
|
1,783,909 |
|
|
1,595,109 |
Accrued payroll and benefits |
|
|
584,113 |
|
|
596,936 |
Other accrued expenses and liabilities |
|
|
304,482 |
|
|
315,107 |
Operating lease liabilities, current |
|
|
78,726 |
|
|
75,236 |
Total current liabilities |
|
|
3,673,232 |
|
|
3,518,355 |
Operating lease liabilities, long-term |
|
|
279,465 |
|
|
259,430 |
Other long-term obligations |
|
|
374,255 |
|
|
361,121 |
Total liabilities |
|
|
4,326,952 |
|
|
4,138,906 |
Equity: |
|
|
|
|
||
|
|
|
2,744,560 |
|
|
2,469,778 |
Noncontrolling interests |
|
|
1,037 |
|
|
1,037 |
Total equity |
|
|
2,745,597 |
|
|
2,470,815 |
Total liabilities and equity |
|
$ |
7,072,549 |
|
$ |
6,609,721 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended (In thousands) (Unaudited) |
||||||||
|
|
|
2024 |
|
|
|
2023 |
|
Cash flows - operating activities: |
|
|
|
|
||||
Net income |
|
$ |
444,721 |
|
|
$ |
252,068 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
27,408 |
|
|
|
25,393 |
|
Amortization of identifiable intangible assets |
|
|
36,412 |
|
|
|
32,100 |
|
Provision for credit losses |
|
|
12,251 |
|
|
|
3,115 |
|
Non-cash share-based compensation expense |
|
|
11,371 |
|
|
|
7,535 |
|
Other reconciling items |
|
|
(5,240 |
) |
|
|
(6,800 |
) |
Changes in operating assets and liabilities, excluding the effect of businesses acquired |
|
|
(114,965 |
) |
|
|
(98,479 |
) |
Net cash provided by operating activities |
|
|
411,958 |
|
|
|
214,932 |
|
Cash flows - investing activities: |
|
|
|
|
||||
Payments for acquisitions of businesses, net of cash acquired |
|
|
(173,265 |
) |
|
|
(22,384 |
) |
Proceeds from sale or disposal of property, plant, and equipment |
|
|
1,655 |
|
|
|
10,514 |
|
Purchases of property, plant, and equipment |
|
|
(39,529 |
) |
|
|
(36,564 |
) |
Net cash used in investing activities |
|
|
(211,139 |
) |
|
|
(48,434 |
) |
Cash flows - financing activities: |
|
|
|
|
||||
Proceeds from revolving credit facility |
|
|
— |
|
|
|
100,000 |
|
Repayments of revolving credit facility |
|
|
— |
|
|
|
(100,000 |
) |
Repayments of finance lease liabilities |
|
|
(1,393 |
) |
|
|
(1,477 |
) |
Dividends paid to stockholders |
|
|
(20,219 |
) |
|
|
(15,714 |
) |
Repurchases of common stock |
|
|
(149,009 |
) |
|
|
(105,299 |
) |
Taxes paid related to net share settlements of equity awards |
|
|
(11,766 |
) |
|
|
(5,295 |
) |
Issuances of common stock under employee stock purchase plan |
|
|
943 |
|
|
|
4,441 |
|
Payments for contingent consideration arrangements |
|
|
— |
|
|
|
(3,026 |
) |
Net cash used in financing activities |
|
|
(181,444 |
) |
|
|
(126,370 |
) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
|
(927 |
) |
|
|
5,856 |
|
Increase in cash, cash equivalents, and restricted cash |
|
|
18,448 |
|
|
|
45,984 |
|
Cash, cash equivalents, and restricted cash at beginning of year (1) |
|
|
789,750 |
|
|
|
457,068 |
|
Cash, cash equivalents, and restricted cash at end of period (2) |
|
$ |
808,198 |
|
|
$ |
503,052 |
|
_________
(1) Includes
(2) Includes
SEGMENT INFORMATION (In thousands, except for percentages) (Unaudited) |
||||||||||||
|
|
For the quarters ended |
||||||||||
|
|
|
2024 |
|
% of
|
|
|
2023 |
|
% of
|
||
Revenues from unrelated entities: |
|
|
|
|
|
|
|
|
||||
|
|
$ |
799,994 |
|
22 |
% |
|
$ |
678,167 |
|
22 |
% |
|
|
|
1,655,181 |
|
45 |
% |
|
|
1,194,113 |
|
39 |
% |
|
|
|
781,108 |
|
21 |
% |
|
|
775,012 |
|
26 |
% |
|
|
|
324,047 |
|
9 |
% |
|
|
292,283 |
|
10 |
% |
Total |
|
|
3,560,330 |
|
97 |
% |
|
|
2,939,575 |
|
97 |
% |
|
|
|
106,567 |
|
3 |
% |
|
|
106,047 |
|
3 |
% |
Total operations |
|
$ |
3,666,897 |
|
100 |
% |
|
$ |
3,045,622 |
|
100 |
% |
|
|
For the six months ended |
||||||||||
|
|
|
2024 |
|
% of
|
|
|
2023 |
|
% of
|
||
Revenues from unrelated entities: |
|
|
|
|
|
|
|
|
||||
|
|
$ |
1,564,705 |
|
22 |
% |
|
$ |
1,322,913 |
|
22 |
% |
|
|
|
3,082,846 |
|
43 |
% |
|
|
2,272,671 |
|
38 |
% |
|
|
|
1,562,268 |
|
22 |
% |
|
|
1,500,387 |
|
25 |
% |
|
|
|
678,100 |
|
10 |
% |
|
|
623,166 |
|
11 |
% |
Total |
|
|
6,887,919 |
|
97 |
% |
|
|
5,719,137 |
|
96 |
% |
|
|
|
211,254 |
|
3 |
% |
|
|
216,917 |
|
4 |
% |
Total operations |
|
$ |
7,099,173 |
|
100 |
% |
|
$ |
5,936,054 |
|
100 |
% |
SEGMENT INFORMATION (In thousands, except for percentages) (Unaudited) |
||||||||||||||
|
|
For the quarters ended |
||||||||||||
|
|
|
2024 |
|
|
% of Segment Revenues |
|
|
2023 |
|
|
% of Segment Revenues |
||
Operating income (loss): |
|
|
|
|
|
|
|
|
||||||
|
|
$ |
88,577 |
|
|
11.1 |
% |
|
$ |
50,722 |
|
|
7.5 |
% |
|
|
|
213,440 |
|
|
12.9 |
% |
|
|
119,847 |
|
|
10.0 |
% |
|
|
|
46,839 |
|
|
6.0 |
% |
|
|
46,137 |
|
|
6.0 |
% |
|
|
|
12,746 |
|
|
3.9 |
% |
|
|
7,887 |
|
|
2.7 |
% |
Total |
|
|
361,602 |
|
|
10.2 |
% |
|
|
224,593 |
|
|
7.6 |
% |
|
|
|
5,777 |
|
|
5.4 |
% |
|
|
5,927 |
|
|
5.6 |
% |
Corporate administration |
|
|
(34,571 |
) |
|
— |
|
|
|
(33,853 |
) |
|
— |
|
Total operations |
|
|
332,808 |
|
|
9.1 |
% |
|
|
196,667 |
|
|
6.5 |
% |
Other items: |
|
|
|
|
|
|
|
|
||||||
Net periodic pension income (cost) |
|
|
221 |
|
|
|
|
|
(282 |
) |
|
|
||
Interest income (expense), net |
|
|
6,106 |
|
|
|
|
|
(2,692 |
) |
|
|
||
Income before income taxes |
|
$ |
339,135 |
|
|
|
|
$ |
193,693 |
|
|
|
|
|
For the six months ended |
||||||||||||
|
|
|
2024 |
|
|
% of Segment Revenues |
|
|
2023 |
|
|
% of Segment Revenues |
||
Operating income (loss): |
|
|
|
|
|
|
|
|
||||||
|
|
$ |
180,166 |
|
|
11.5 |
% |
|
$ |
91,238 |
|
|
6.9 |
% |
|
|
|
364,160 |
|
|
11.8 |
% |
|
|
206,074 |
|
|
9.1 |
% |
|
|
|
80,298 |
|
|
5.1 |
% |
|
|
83,787 |
|
|
5.6 |
% |
|
|
|
30,712 |
|
|
4.5 |
% |
|
|
22,907 |
|
|
3.7 |
% |
Total |
|
|
655,336 |
|
|
9.5 |
% |
|
|
404,006 |
|
|
7.1 |
% |
|
|
|
11,154 |
|
|
5.3 |
% |
|
|
11,351 |
|
|
5.2 |
% |
Corporate administration |
|
|
(73,729 |
) |
|
— |
|
|
|
(63,780 |
) |
|
— |
|
Total operations |
|
|
592,761 |
|
|
8.3 |
% |
|
|
351,577 |
|
|
5.9 |
% |
Other items: |
|
|
|
|
|
|
|
|
||||||
Net periodic pension income (cost) |
|
|
443 |
|
|
|
|
|
(556 |
) |
|
|
||
Interest income (expense), net |
|
|
13,647 |
|
|
|
|
|
(4,524 |
) |
|
|
||
Income before income taxes |
|
$ |
606,851 |
|
|
|
|
$ |
346,497 |
|
|
|
RECONCILIATION OF ORGANIC REVENUE GROWTH (In thousands, except for percentages) (Unaudited) |
||||||||||||||
The following table provides a reconciliation between organic revenue growth, a non-GAAP measure, and total revenue growth for the quarter and six months ended |
||||||||||||||
|
|
For the quarter ended
|
|
For the six months ended
|
||||||||||
|
|
$ |
|
% |
|
$ |
|
% |
||||||
GAAP revenue growth |
|
$ |
621,275 |
|
|
20.4 |
% |
|
$ |
1,163,119 |
|
|
19.6 |
% |
Incremental revenues from acquisitions |
|
|
(80,869 |
) |
|
(2.7 |
)% |
|
|
(88,803 |
) |
|
(1.5 |
)% |
Organic revenue growth, a non-GAAP measure |
|
$ |
540,406 |
|
|
17.7 |
% |
|
$ |
1,074,316 |
|
|
18.1 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240725280306/en/
Vice President
Investor Relations
(203) 849-7938
FTI Consulting, Inc.
Investors:
(718) 578-3706
Source: