Emcor group, inc. reports second quarter 2015 results
Norwalk, conn.--(business wire)--emcor group, inc. (nyse:eme) today reported results for the second quarter ended june 30, 2015. net income from continuing operations attributable to emcor was $47.0 million in the second quarter, or $0.74 per diluted share, compared to net income from continuing operations of $41.3 million, or $0.61 per diluted share, in the second quarter of 2014. revenues in the second quarter of 2015 were $1.65 billion, an increase of 6.4% from revenues of $1.55 billion in the second quarter of 2014. operating income for the second quarter of 2015 was $77.7 million, or 4.7% of revenues, compared to operating income of $69.7 million, or 4.5% of revenues, in the second quarter of 2014. selling, general and administrative expenses for the second quarter of 2015 were $161.4 million, or 9.8% of revenues, compared to $150.4 million, or 9.7% of revenues, in the year ago period. the company's income tax rate in the 2015 second quarter was 38.0%, compared to an income tax rate of 37.7% in the year ago period. backlog as of june 30, 2015 was $3.62 billion compared to $3.63 billion at the end of the second quarter of 2014 and $3.74 billion as of march 31, 2015. domestic backlog was essentially flat on a year-over-year basis in the second quarter of 2015, reflecting backlog growth in the u.s. electrical and mechanical construction segments, offset by declines in backlog in the u.s. building services and u.s. industrial services segments. backlog growth in the commercial, water/wastewater and hospitality/gaming sectors was offset by declines in backlog in the healthcare, transportation, industrial and institutional sectors. tony guzzi, president and chief executive officer of emcor group, commented, “a healthy return to organic growth in the second quarter, combined with solid execution, resulted in record second quarter revenue, operating income, and diluted earnings per share and put us back on track for the year. we achieved some recovery from the first quarter’s adverse impact of weather and experienced a slight improvement from refinery turnaround project deferrals related to the first quarter refinery strike. we are very pleased with the mix of projects we are working on and the consistent strength of our backlog going forward.” mr. guzzi added, “our u.s. electrical construction segment continues to produce strong operating margins, and, as the year progresses, we expect continued strong performance within this segment. our u.s. mechanical construction segment generated improved operating margins and returned to organic growth. our u.s. building services segment demonstrated improved performance at our commercial site-based services operations and continued strong performance from our mobile mechanical services operations. finally, our u.s. industrial services segment showed significant improvement in terms of both revenue and operating margins from the year ago quarter.” mr. guzzi concluded, “we are pleased with our performance thus far in 2015 and particularly with the organic growth achieved in the second quarter after a challenging first quarter of the year. with a diverse backlog that we expect to grow in the back half of the year and a non-residential market that continues to improve, we are confident in our ability to meet our 2015 objectives. we also remain focused on maintaining a strong and liquid balance sheet, pursuing opportunities to invest in our future growth, and delivering value to shareholders through share repurchases and dividends.” revenues for the first six months of 2015 totaled $3.24 billion, an increase of 3.1% compared to $3.14 billion for the first six months of 2014. net income from continuing operations attributable to emcor for the first six months of 2015 was $80.2 million, or $1.26 per diluted share, compared to net income from continuing operations of $84.7 million, or $1.24 per diluted share, for the first six months of 2014. operating income for the first six months of 2015 was $133.0 million, or 4.1% of revenues. for the first six months of 2015, sg&a totaled $323.0 million, or 10.0% of revenues, compared to $294.3 million, or 9.4% of revenues, in the first six months of 2014. emcor continues to expect full year 2015 revenues to be approximately $6.6 billion based on the current size and mix of its backlog and assuming continued improvement in current market conditions. the company narrowed its full year 2015 guidance for diluted earnings per share from continuing operations to between $2.65 and $2.85 per share. 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 web site at www.emcorgroup.com. emcor group's second quarter conference call will be available live via internet broadcast today, thursday, july 30, at 10:30 am eastern daylight time. you can access the live call through the home page of the company's web site at www.emcorgroup.com. this release may contain certain forward-looking statements within the meaning of the private securities reform act of 1995. any such comments are based upon information available to emcor management and its perception thereof, as of this date, and emcor assumes no obligation to update any such forward-looking statements. these forward-looking statements may include statements regarding market opportunities, market share growth, gross profit, backlog mix, projects with varying profit margins, and selling, general and administrative expenses. 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 risks and factors associated with emcor's business are also discussed in the company's 2014 form 10-k and in other reports filed from time to time with the securities and exchange commission. all these risks and factors should be taken into account in evaluating any forward-looking statements. emcor group, inc. financial highlights (in thousands, except share and per share information) (unaudited) condensed consolidated statements of operations emcor group, inc. condensed consolidated balance sheets (in thousands) (unaudited) 2014 emcor group, inc. condensed consolidated statements of cash flows for the six months ended june 30, 2015 and 2014 (in thousands) (unaudited) emcor group, inc. segment information (in thousands) (unaudited) for the six months ended june 30, 2015 2014 revenues from unrelated entities: united states electrical construction and facilities services $ 665,196 $ 643,628 united states mechanical construction and facilities services 1,065,029 1,051,567 united states building services 875,119 866,186 united states industrial services 457,893 409,190 total united states operations 3,063,237 2,970,571 united kingdom building services 178,535 172,886 total worldwide operations $ 3,241,772 $ 3,143,457 emcor group, inc. segment information (in thousands) (unaudited) for the six months ended june 30, 2015 2014 operating income (loss): united states electrical construction and facilities services $ 41,951 $ 46,496 united states mechanical construction and facilities services 53,265 47,846 united states building services 38,917 34,218 united states industrial services 30,248 35,770 total united states operations 164,381 164,330 united kingdom building services 5,212 9,565 corporate administration (36,119 ) (31,711 ) restructuring expenses (441 ) (401 ) total worldwide operations 133,033 141,783 other corporate items: interest expense (4,424 ) (4,490 ) interest income 358 455 income from continuing operations before income taxes $ 128,967 $ 137,748
