July 27, 2007 - EMCOR Group Reports Increased YTD Revenues, Record 2Q Backlog
EMCOR Group reported results for six months ended June 30, 2007. Year-to-date revenues in 2007 totaled $2.72 billion vs. revenues of $2.37 billion in the same period last year, an increase of 14.9 percent. Income from continuing operations was $38.1 million, or $0.57 per diluted share, an increase of 55.7 percent over income from continuing operations of $24.5 million, or $0.38 per diluted share, for the first six months of 2006.
For the 2007 second quarter, revenues increased 15.2 percent to $1.41 billion from $1.22 billion in the same period last year. Net income increased 55.1 percent to $26.2 million, or $0.39 per diluted share, compared to net income of $16.9 million, or $0.26 per diluted share, in the 2006 second quarter.
EMCOR achieved record levels in its contract backlog for the second quarter. At June 30, 2007, contract backlog was $4.26 billion, a 32.3 percent increase over $3.22 billion at June 30, 2006, and 10.9 percent higher than the previous record of $3.84 billion at March 31, 2007. Private sector commercial and hospitality/gaming contracts represented 56 percent of total backlog at the end of the second quarter of 2007 compared to 53 percent and 54 percent, respectively, at March 31, 2007 and June 30, 2006.
“Our record second-quarter results … were driven by strong performance across our domestic operations, including excellent results within our U.S. mechanical and electrical segments, and continued strong performance in our facilities services segment, which grew in line with our expected rate for this business,” said Chairman and CEO Frank T. MacInnis. “While we are very pleased with our financial performance, we are also encouraged by the trajectory of our backlog in recent quarters in terms of both amount and composition.
“EMCOR has focused its efforts on leveraging the private sector commercial and hospitality/gaming markets as well as other markets such as healthcare. Not only have these efforts generated strong financial results, they have also served to increase the proportion of our backlog consisting of larger and more complex projects, which tend to have longer durations and increasing profit opportunities.”
MacInnis stated the company is increasing its anticipated year-end 2007 diluted earnings per share to $1.48 - $1.60, while increasing and narrowing its 2007 revenues guidance to $5.6 billion - $5.7 billion.
EMCOR’s financial results for prior year periods have been adjusted to reflect its 2-for-1 stock split, effective July 9, 2007.