EMCOR Group Inc. (EME) filed Quarterly Report for the period ended 2009-09-30.
EMCOR GROUP INC. conducts its business through subsidiaries specializes in the design integration installation start-up testing operation andmaintenance of complex mechanical and electrical systems. In additioncertain of its subsidiaries operate and maintain mechanical and/or electrical systems for customers under contracts and provide other servicesto customers at the customer's facilities which services are commonlyreferred to as facilities management. Emcor Group Inc. has a market cap of $1.47 billion; its shares were traded at around $22.32 with a P/E ratio of 7.8 and P/S ratio of 0.2. Emcor Group Inc. had an annual average earning growth of 4.8% over the past 10 years.
Highlight of Business Operations:
Supplemental cash flow information:Cash paid for:
Interest $ 4,466 $ 7,740
Income taxes $ 71,099 $ 91,542
Non-cash financing activities:
Assets acquired under capital lease obligations $ - $ 480
Capital lease obligations terminated $ 674 $ -
Contingent purchase price accrued $ 1,818 $ -
Balance, January 1, 2008 $ 891,734 $678 $387,288 $(15,102) $526,307 $(14,130) $6,693
Net income including
noncontrolling interests 123,175 $123,175 - - - 121,917 - 1,258
Foreign currency translation
adjustments (5,407) (5,407) - - (5,407) - - -
Pension adjustment, net of tax
benefit of $0.5 million 1,214 1,214 - - 1,214 - - -
-
Comprehensive income 118,982
Less: Net income attributable
to noncontrolling interests (1,258)
-
Comprehensive income
attributable to EMCOR $117,724
=
Issuance of treasury stock
for restricted stock units (2) - - (108) - - 108 -
Treasury stock, at cost (3) (493) - - - - (493) -
Common stock issued under
stock option plans, net of
tax benefit (4) 4,141 2 4,048 - - 91 -
Distributions to noncontrolling
interests (1,200) - - - - - (1,200)
Share-based compensation
expense 4,648 - 4,648 - - - -
- - - - - - -
Balance, September 30, 2008 $1,017,812 $680 $395,876 $(19,295) $648,224 $(14,424) $6,751
= = = = = = =
Balance, January 1, 2009 $1,050,769 $681 $397,895 $(49,318) $708,511 $(14,424) $7,424
Net income including
noncontrolling interests 123,076 $123,076 - - - 121,573 - 1,503
Foreign currency translation
adjustments 4,917 4,917 - - 4,917 - - -
Pension adjustment, net of tax
benefit of $1.0 million 2,385 2,385 - - 2,385 - - -
Deferred loss on cash flow
hedge, net of tax benefit
of $0.5 million (787) (787) - - (787) - - -
-
Comprehensive income 129,591
Less: Net income attributable
to noncontrolling interests (1,503)
-
Comprehensive income
attributable to EMCOR $128,088
=
Treasury stock, at cost (3) (1,589) - - - - (1,589) -
Common stock issued under
share-based compensation
plans, net of tax
benefit (4) 2,002 5 1,853 - - 144 -
Common stock issued under
employee stock purchase plan 1,580 - 1,580 - - - -
Distributions to noncontrolling
interests (550) - - - - - (550)
Share-based compensation
expense 4,428 - 4,428 - - - -
Capital contributed by selling
shareholders of acquired
business (5) 1,572 - 1,572 - - - -
- - - - - - -
Balance, September 30, 2009 $1,187,803 $686 $407,328 $(42,803) $830,084 $(15,869) $8,377
= = = = = = =
September 30, December 31,
2009 2008
- -
Raw materials and construction materials $ 19,512 $ 22,845
Work in process 20,383 31,756
- -
$ 39,895 $ 54,601
= =
September 30, December 31,
2009 2008
- -
Term Loan $ 195,500 $ 197,750
Capitalized lease obligations 707 2,313
Other - 41
- -
196,207 200,104
Less: current maturities 3,332 3,886
- -
$ 192,875 $ 196,218
= =
On September 19, 2007, we entered into an agreement providing for a $300.0
million term loan ("Term Loan"). The proceeds were used to pay a portion of the
consideration for the acquisition of FR X Ohmstede Acquisitions Co. ("Ohmstede")
and costs and expenses incident thereto. The Term Loan contains covenants,
representations and warranties and events of default. The Term Loan covenants
require, among other things, maintenance of certain financial ratios and certain
restrictions with respect to payment of dividends, common stock repurchases,
investments, acquisitions, indebtedness and capital expenditures. We are
required to make principal payments on the Term Loan in installments on the last
day of March, June, September and December of each year, which commenced in
March 2008, in the amount of $0.75 million. A final payment comprised of all
remaining principal and interest is due in October 2010. The Term Loan is
secured by substantially all of our assets and most of the assets of our U.S.
subsidiaries. The Term Loan bears interest at (1) the prime commercial lending
rate announced by Bank of Montreal from time to time (3.25% at September 30,
2009) plus 0.0% to 0.5% based on certain financial tests or (2) U.S. dollar
LIBOR (0.25% at September 30, 2009) plus 1.0% to 2.25% based on certain
financial tests. The interest rate in effect at September 30, 2009 was 1.25%
(see Note H, "Derivative Instrument and Hedging Activity"). We capitalized
approximately $4.0 million of debt issuance costs associated with the Term Loan.
This amount is being amortized over the life of the loan and is included as part
of interest expense. Since September 19, 2007, we have made prepayments under
the Term Loan of $99.25 million, and mandatory repayments of $5.25 million, to
reduce the balance to $195.5 million at September 30, 2009.
EMCOR Group, Inc. and Subsidiaries
EME is in the portfolios of David Dreman of Dreman Value Management, John Hussman of Hussman Economtrics Advisors, Inc..
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