EMCOR(US:EME)2023-10-25 16:00Financial Performance - Revenues for Q3 2023 reached $3,207,598, a 13.4% increase from $2,826,361 in Q3 2022[17] - Gross profit for the nine months ended September 30, 2023, was $1,471,594, up 28.1% from $1,148,794 in the same period of 2022[17] - Net income attributable to EMCOR Group, Inc. for Q3 2023 was $169,409, representing a 60.3% increase compared to $105,772 in Q3 2022[17] - Basic earnings per common share for Q3 2023 were $3.59, up from $2.16 in Q3 2022, reflecting a 66.1% increase[17] - Operating income for the nine months ended September 30, 2023, was $586,560, a 51.1% increase from $387,695 in the same period of 2022[17] - For the three months ended September 30, 2023, net income including noncontrolling interests was $169,746,000, compared to $105,772,000 for the same period in 2022, representing a 60.5% increase[26] - For the nine months ended September 30, 2023, net income including noncontrolling interests was $421,814,000, compared to $279,822,000 for the same period in 2022, indicating a 50.6% increase[29] - Total revenues for the nine months ended September 30, 2023, increased to $9.14 billion, up from $8.13 billion in the same period of 2022, representing a growth of 12.6%[131] Assets and Liabilities - Total assets as of September 30, 2023, were $6,224,193, an increase from $5,524,607 at the end of 2022[16] - Cash and cash equivalents increased to $523,632 as of September 30, 2023, compared to $456,439 at the end of 2022[16] - The company reported a total current liabilities of $3,232,802 as of September 30, 2023, an increase from $2,753,522 at the end of 2022[16] - The total stockholders' equity increased from $1,842,422,000 on September 30, 2022, to $2,279,969,000 on September 30, 2023, reflecting a growth of 23.7%[29] - Total debt as of September 30, 2023, was $103.96 million, a decrease from $247.19 million as of December 31, 2022[88] Dividends and Stock Repurchases - The company declared dividends of $0.18 per common share in Q3 2023, up from $0.13 in Q3 2022[17] - Common stock dividends paid increased from $6,450,000 in Q3 2022 to $8,520,000 in Q3 2023, marking a 32.3% increase[26] - The company repurchased common stock totaling $206,292,000 in Q3 2022, while in Q3 2023, the repurchases were significantly lower at $24,000[26] - The company repurchased approximately 0.7 million shares of common stock for about $106.1 million during the nine months ended September 30, 2023, with total repurchases since inception of the program reaching approximately $1.87 billion[111] Revenue by Segment - The United States electrical construction and facilities services segment generated total revenues of $697.406 million for the three months ended September 30, 2023, compared to $633.383 million for the same period in 2022, reflecting a growth of approximately 10.2%[61] - United States mechanical construction and facilities services generated revenues of $1,332.7 million for Q3 2023, up from $1,111.9 million in Q3 2022, marking a year-over-year increase of 19.8%[62] - The healthcare market sector saw an increase in revenue to $62.126 million, representing 9% of total revenues for the three months ended September 30, 2023, up from 7% in the same period of 2022[61] - The manufacturing and industrial market sector revenue increased to $97.788 million, which is a 24.5% increase from $78.562 million in the same period of 2022[61] - The United States building services segment reported revenues of $817.7 million for Q3 2023, up from $719.4 million in Q3 2022, driven by increased HVAC project work[149] Performance Obligations and Future Outlook - Remaining performance obligations as of September 30, 2023, totaled $8.64 billion, with 56% attributed to United States mechanical construction and facilities services[76] - The company expects to recognize $7.17 billion of remaining performance obligations as revenue within one year, with $1.46 billion expected to be recognized beyond one year[80] - Remaining performance obligations rose to $8.64 billion as of September 30, 2023, compared to $7.46 billion at December 31, 2022, indicating strong future demand[137] Operational Efficiency - The increase in operating income across segments was attributed to improved project execution and a favorable mix of work, despite ongoing supply chain disruptions[157] - The United States electrical construction segment reported operating income of $63.1 million (9.1% of revenues) for Q3 2023, compared to $35.6 million (5.6%) in Q3 2022[158] - The United States mechanical construction segment's operating income for Q3 2023 was $138.5 million (10.4% of revenues), up from $90.5 million (8.2%) in Q3 2022[159] - The United States building services segment achieved operating income of $57.2 million (7.0% of revenues) for Q3 2023, compared to $46.0 million (6.4%) in Q3 2022[160] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2023, was $475.9 million, significantly higher than $238.4 million for the same period in 2022[174] - Net cash used in investing activities increased to $134.0 million for the nine months ended September 30, 2023, from $122.9 million in the same period of 2022, primarily due to higher capital expenditures[175] - Net cash used in financing activities decreased to $276.2 million for the nine months ended September 30, 2023, from $512.6 million in the same period of 2022, reflecting reduced stock repurchases[176] Corporate Governance and Compliance - The company's disclosure controls and procedures are deemed effective as of the end of the reporting period[202] - The evaluation was conducted by the Chairman, President, and CEO, Anthony J. Guzzi, along with the Executive Vice President and CFO, Mark A. Pompa[202] - The report indicates a commitment to maintaining effective oversight and governance practices[202] - The company adheres to regulatory requirements, reinforcing its commitment to corporate governance[202]