Emcor group, inc. reports fourth quarter and full year 2013 results
Norwalk, conn.--(business wire)--emcor group, inc. (nyse:eme) today reported results for the fourth quarter and the year ended december 31, 2013. for the fourth quarter of 2013, net income attributable to emcor was $45.9 million, or $0.68 per diluted share. excluding several one-time charges discussed below, non-gaap net income was $51.5 million, or $0.76 per diluted share, compared to non-gaap net income of $50.6 million, or $0.75 per diluted share in the fourth quarter of 2012. revenues in the fourth quarter of 2013 totaled $1.66 billion, compared to revenues of $1.61 billion in the year ago period. operating income for the fourth quarter of 2013 was $68.8 million, or 4.1% of revenues, which included operating losses and expenses aggregating approximately $7.2 million (including restructuring expenses of $2.1 million) primarily relating to the company's decision to withdraw from the uk construction market. excluding these losses and expense items, the company's non-gaap operating income for the fourth quarter of 2013 was $76.0 million, or 4.6% of revenues, compared to non-gaap operating income in the 2012 fourth quarter of $84.4 million, or 5.3% of revenues, as adjusted to exclude 2012 uk construction operating losses. please see the attached tables for a reconciliation of non-gaap operating income, non-gaap net income and non-gaap diluted earnings per share to the comparable gaap figures. selling, general and administrative expenses for the 2013 fourth quarter were $163.2 million, or 9.8% of revenues, compared to $149.6 million, or 9.3% of revenues, in the year ago period. the company's income tax rate in the 2013 fourth quarter was 30.4%, compared to an income tax rate of 39.8% in the year ago period. backlog as of december 31, 2013 was $3.36 billion, a decrease of 0.4% from $3.37 billion at the end of the 2012 fourth quarter. fourth quarter backlog growth of $45 million in the company's domestic operations nearly offset a backlog decline of $58 million related to the company's decision to withdraw from the uk construction market. backlog growth in the transportation, healthcare, water/wastewater and commercial sectors was more than offset by declines in the institutional and industrial sectors. total backlog of $3.36 billion was a decrease of 0.9% from $3.39 billion compared to september 30, 2013. tony guzzi, president and chief executive officer of emcor group commented, “our performance in 2013 highlights the strength from the diversity of our business which insulates us from weakness in any one sector of the economy. growth in the non-residential construction market remained sluggish, and we continue to contend with a slowdown in government spending. in spite of this, our u.s. electrical construction segment performed well, and we saw marked improvement in our building services segment. although results in our u.s. mechanical construction segment were hindered by challenges related to two project write-downs in the year, we are confident that this segment will rebound in 2014. mr. guzzi continued, “during 2013, we made several key strategic moves to position the company for long-term success, most notably our mid-year acquisition of repconstrickland and our second quarter decision to exit from the uk construction business. we are pleased with the progress made on the integration and performance of repconstrickland to date which has been teamed with our ohmstede subsidiary. we now have a market-leading industrial services business focused on refineries and petrochemical facilities. as we continue to focus on producing sustainable long-term growth, our new $1.1 billion credit agreement, announced in december, provides us with the financial flexibility needed to pursue strategic growth opportunities. finally, by returning $38.2 million to our shareholders through our share repurchase program and dividends during 2013, we demonstrated our commitment to enhancing shareholder value.” mr. guzzi concluded, “we are optimistic about our prospects for 2014, despite ongoing challenges in some markets. we anticipate that improvements in the non-residential construction cycle will lead to greater opportunities resulting in increased revenue growth. we continue to operate from a position of financial strength with a robust balance sheet and strong cash generation. overall, we are now in a better position financially and operationally than we were at the same point last year and believe 2014 has the potential to be a strong year for emcor.” revenues for the 2013 full-year period increased 1.1% to $6.42 billion compared to $6.35 billion for the 2012 full-year period. net income attributable to emcor for the 2013 full-year period was $123.8 million, or $1.82 per diluted share. excluding losses associated with the withdrawal from the uk construction market, transaction expenses associated with the acquisition of repconstrickland, and uk restructuring expenses, non-gaap net income was $151.2 million, or $2.22 per diluted share, compared to non-gaap net income of $154.4 million, or $2.28 per diluted share, in the year ago period, excluding 2012 uk construction losses. operating income in the 2013 full-year period was $210.3 million, or 3.3% of revenues. excluding the items mentioned in the immediately preceding paragraph, non-gaap operating income for the 2013 full-year period was $246.5 million, or 3.9% of revenues, compared to non-gaap operating income of $260.3 million, or 4.2% of revenues, in 2012. please see the attached tables for a reconciliation of non-gaap operating income, non-gaap net income and non-gaap diluted earnings per share to the comparable gaap figures. for the 2013 full-year period, sg&a totaled $591.1 million, or 9.2% of revenues, compared to $556.2 million, or 8.8% of revenues, in 2012. the company noted that, based on the current size and mix of its backlog and assuming the continuation of current market conditions, it expects in 2014 revenues to be approximately $6.8 billion and diluted earnings per share to be between $2.40 to $2.70 excluding restructuring and other costs associated with the withdrawal from the uk construction market. emcor group, inc. is a fortune 500 worldwide leader in mechanical and electrical construction services, energy infrastructure and facilities services. this press release and other press releases may be viewed at the company's web site at www.emcorgroup.com. emcor group's fourth quarter conference call will be available live via internet broadcast today, tuesday, february 25, at 10:30 am eastern standard 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 2013 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. financial highlights (in thousands, except share and per share information) for the three months ended december 31, for the twelve months ended december 31, (in thousands) 2013 2012 for the twelve months ended december 31, 2013 and 2012 (in thousands) payments for acquisitions of businesses, net of cash acquired, and related contingent consideration agreement (in thousands) for the three months ended december 31, for the twelve months ended december 31, (in thousands) for the three months ended december 31, for the twelve months ended december 31, emcor group, inc. reconciliation of 2013 and 2012 operating income in our press release, we provide actual 2013 and 2012 fourth quarter and year-to-date december 31, 2013 and 2012 operating income. the following table provides a reconciliation between 2013 and 2012 operating income based on non-gaap measures to the most direct comparable gaap measures. for the three months ended december 31, for the twelve months ended december 31, repconstrickland transaction expenses, uk losses and uk restructuring expenses emcor group, inc. reconciliation of 2013 and 2012 net income in our press release, we provide actual 2013 and 2012 fourth quarter and year-to-date december 31, 2013 and 2012 net income attributable to emcor group, inc. the following table provides a reconciliation between 2013 and 2012 net income attributable to emcor group, inc. based on non-gaap measures to the most direct comparable gaap measures. for the three months ended december 31, for the twelve months ended december 31, inc., excluding repconstrickland transaction expenses, uk losses and uk restructuring expenses emcor group, inc. reconciliation of 2013 and 2012 diluted earnings per share figures in our press release, we provide actual 2013 and 2012 fourth quarter and year-to-date december 31, 2013 and 2012 diluted earnings per share. the following table provides a reconciliation between 2013 and 2012 eps based on non-gaap measures to the most direct comparable gaap measures. for the three months ended december 31, for the twelve months ended december 31, transaction expenses related to the acquisition of repconstrickland, inc. 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