EMCOR Reports YTD Revenue Rise Of 23%
For the 2008 nine-month period, the company reported net income of $121.9 million, or $1.82 per diluted share, an increase of 59.4 percent, compared to net income of $76.5 million, or $1.15 per diluted share, for the first nine months of 2007.
The company’s results for the 2008 nine-month period include a one-time charge, substantially all of which is noncash, of $7.9 million, or $0.07 per diluted share after-tax, resulting from an adverse jury verdict in a construction contract case in the 2008 second quarter.
For the third quarter of 2008, EMCOR reported revenues were $1.72 billion compared to $1.50 billion in the third quarter of 2007, an increase of 14.6 percent, of which 8 percent was organic growth (which excludes the contribution from businesses acquired during the past year). Net income was $48.6 million, or $0.72 per diluted share, an increase of 26.9 percent over net income of $38.3 million, or $0.57 per diluted share, for the third quarter of 2007.
“The 2008 third quarter … saw continued margin expansion across most of our business segments, as both our organic and acquired businesses continued to perform strongly, supported by end markets with demand drivers not tied to the current economic cycle and rising demand for higher-margin facilities services,” said Frank T. MacInnis, chairman and CEO of EMCOR Group.
He continued: “The keystone of our long-term strategic growth plan has been the diversification of our business to hedge against construction cyclicality and to provide a solid underlying level of earnings power for the company through targeted growth of our facilities services businesses. At the same time, we have undertaken strategic acquisitions, such as Ohmstede, S.A. Comunale and a number of mechanical services companies, which have shifted the mix of our business to stable end markets such as refining, fire protection and mechanical services, which are less capital intensive and not as vulnerable to economic downturns than construction.”
Based on current market conditions, EMCOR now expects revenues of between $6.8 billion and $7 billion and diluted earnings per share of between $2.48 and $2.58 for the 2008 full-year period.