Emcor group, inc. reports first quarter 2018 results
Norwalk, conn.--(business wire)--emcor group, inc. (nyse:eme) today reported results for the first quarter ended march 31, 2018. for the first quarter of 2018, net income from continuing operations attributable to emcor was $55.7 million, or $0.94 per diluted share, compared to $53.1 million, or $0.88 per diluted share, for the first quarter of 2017. revenues for the first quarter of 2018 totaled $1.90 billion, an increase of 0.5%, compared to $1.89 billion for the first quarter 2017. operating income for the first quarter of 2018 was $78.7 million, or 4.1% of revenues, compared to $82.8 million, or 4.4% of revenues, in the year ago period. selling, general and administrative expenses for the first quarter of 2018 totaled $190.3 million, or 10.0% of revenues, compared to $183.0 million, or 9.7% of revenues, in the year ago period. the company's income tax rate for the first quarter of 2018 was 27.0%, compared to an income tax rate of 33.6% in the year ago period. backlog as of march 31, 2018 was $3.95 billion, compared to both $3.97 billion at the end of the first quarter of 2017 and $3.79 billion as of december 31, 2017. total domestic backlog decreased approximately $87 million year-over-year, but increased $130 million from year end 2017. backlog in our u.k. segment grew approximately $59 million year-over-year and increased $26 million from year end 2017, partially as a result of changes in the foreign exchange rate. year-over-year backlog growth in our u.s. building services segment, our u.k. building services segment and our u.s. industrial services segment was slightly offset by backlog declines in our u.s. mechanical construction segment and our u.s. electrical construction segment. from an end-market perspective, year-over-year backlog growth in the commercial and water and wastewater sectors was slightly offset by backlog declines in the healthcare, industrial and transportation sectors. tony guzzi, president and chief executive officer of emcor, commented, “the company had a strong start to the year, delivering record first quarter revenue and diluted earnings per share from continuing operations. our business performed in-line with our expectations, led by our u.s. construction segments, which delivered revenue growth of 3.5%, and our u.k. building services segment, which achieved revenue growth of over 35%. our strong execution led to healthy operating margins across our segments, with the exception of our industrial services segment, which, as expected, continued to reflect the lingering impact of hurricane harvey on turnaround activity.” mr. guzzi added, “we continued to achieve growth in our u.s. construction segments, with revenues in our u.s. electrical construction segment and our u.s. mechanical construction segment up 2.6% and 4.1% year-over-year, respectively. our u.s. electrical construction segment delivered 90 basis points of operating margin expansion, and while execution in our u.s. mechanical construction segment was strong, we faced a difficult comparison due to the partial resolution of an outstanding claim in the year ago period, which favorably impacted our 2017 first quarter operating margin. we are pleased by the momentum in our u.s. building services segment, which posted operating income growth of approximately 20% year-over-year, supported by solid execution in our commercial site-based and energy services businesses. our u.s. industrial services segment faced a difficult comparison to the year ago period, partially as a result of a delayed turnaround work schedule due to hurricane harvey. finally, our u.k. segment performed exceptionally well, with operating income growth of approximately 172% year-over-year and margin expansion of 220 basis points, driven by outstanding execution on recent contract wins and an increase in project activity.” based on the current project mix and assuming consistent market conditions, emcor maintains its full year 2018 revenue guidance of $7.6 billion to $7.7 billion and full year 2018 diluted earnings per share from continuing operations guidance of $4.10 to $4.70. mr. guzzi concluded, “we are encouraged by our results in the first quarter and optimistic about our prospects for the remainder of 2018. the underlying growth drivers of our business remain strong, and we are well positioned to deliver on our guidance for the full year. additionally, our healthy balance sheet continues to provide us with the flexibility to invest in our business organically and through strategic acquisitions, while returning capital to our shareholders through share repurchases and dividends.” 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 group's first quarter conference call will be available live via internet broadcast today, thursday, april 26, at 10:30 am eastern daylight time. the live call may be accessed through the company's website at www.emcorgroup.com. forward looking statements: this release contains certain forward-looking statements within the meaning of the private securities reform act of 1995. any such comments speak only as of this date and emcor assumes no obligation to update any such forward-looking statements. these forward-looking statements may include statements regarding anticipated future operating and financial performance, the nature and impact of our backlog, our ability to pursue acquisitions, our ability to return capital to shareholders, market opportunities, and market growth. these forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. accordingly these statements are no guarantee of future performance. such risk and uncertainties include, but are not limited to, adverse effects of general economic conditions, changes in the political environment, changes in the specific markets for emcor’s services, adverse business conditions, availability of adequate levels of surety bonding, increased competition, unfavorable labor productivity and mix of 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 2017 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 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). 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 historical 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. (in thousands, except share and per share information) (unaudited) (in thousands) for the three months ended march 31, 2018 and 2017 (in thousands) (unaudited) (in thousands) (unaudited)
