EMCOR Group, Inc (EME) has reported 20.35 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $40.68 million, or $0.66 a share in the quarter, compared with $51.07 million, or $0.81 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $43.71 million, or $0.72 a share compared with $50.39 million or $0.80 a share, a year ago. Revenue during the quarter grew 9.68 percent to $1,949.96 million from $1,777.83 million in the previous year period. Gross margin for the quarter contracted 26 basis points over the previous year period to 13.95 percent. Total expenses were 96.18 percent of quarterly revenues, up from 95.27 percent for the same period last year. That has resulted in a contraction of 91 basis points in operating margin to 3.82 percent.
Operating income for the quarter was $74.49 million, compared with $84.08 million in the previous year period.
However, the adjusted operating income for the quarter stood at $76.92 million compared to $84.08 million in the prior year period. At the same time, adjusted operating margin contracted 78 basis points in the quarter to 3.94 percent from 4.73 percent in the last year period.
Tony Guzzi, President and Chief Executive Officer of EMCOR, commented, “The Company delivered record revenues and diluted earnings per share from continuing operations in the 2016 full-year period, with growth of 12% and 14%, respectively, excluding transaction expenses and an impairment charge. This was driven by double-digit revenue growth in our combined U.S. businesses, with strong operating income contributions from our U.S. Electrical Construction segment and our U.S. Industrial Services segment and bottom-line growth from our U.K. business. We are particularly pleased with these results given the obstacles that were presented throughout the year, including the losses incurred from several large scale projects in both of our U.S. Construction segments, with respect to which we are seeking recovery.”
Emcor Group expects revenue to be in the range of $7,500 million to $7,600 million for financial year 2017. For financial year 2017, the company projects diluted earnings per share to be in the range of $3.10 to $3.50.
Operating cash flow remains almost stable
EMCOR Group, Inc has generated cash of $264.56 million from operating activities during the year, down 0.79 percent or $2.11 million, when compared with the last year. The company has spent $270.67 million cash to meet investing activities during the year as against cash outgo of $59.81 million in the last year. It has incurred net capital expenditure of $37.72 million on net basis during the year, up 19.33 percent or $6.11 million from year ago.
The company has spent $9.43 million cash to carry out financing activities during the year as against cash outgo of $149.47 million in the last year period.
Cash and cash equivalents stood at $464.62 million as on Dec. 31, 2016, down 4.56 percent or $22.21 million from $486.83 million on Dec. 31, 2015.
Working capital increases
EMCOR Group, Inc has recorded an increase in the working capital over the last year. It stood at $699.07 million as at Dec. 31, 2016, up 6.94 percent or $45.38 million from $653.69 million on Dec. 31, 2015. Current ratio was at 1.46 as on Dec. 31, 2016, up from 1.46 on Dec. 31, 2015.
Cash conversion cycle (CCC) was almost stable at 23 days for the quarter, when compared with the last year period. Days sales outstanding were almost stable at 35 days for the quarter, when compared with the last year period.
Days inventory outstanding was almost stable at 1 days for the quarter, when compared with the last year period. At the same time, days payable outstanding was almost stable at 14 days for the quarter, when compared with the previous year period.
Debt increases substantially
EMCOR Group, Inc has witnessed an increase in total debt over the last one year. It stood at $423.33 million as on Dec. 31, 2016, up 34.35 percent or $108.23 million from $315.10 million on Dec. 31, 2015. Total debt was 10.87 percent of total assets as on Dec. 31, 2016, compared with 8.88 percent on Dec. 31, 2015. Debt to equity ratio was at 0.28 as on Dec. 31, 2016, up from 0.21 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 20.39 for the quarter from 36.85 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
