EMCOR Group, Inc. (NYSE:EME) today announced that its Board of Directors has authorized a new additional share repurchase program allowing the Company to repurchase up to an additional $100 million of its outstanding common stock. The Company also announced that its Board of Directors intends to increase the Company’s annual dividend from $0.24 to $0.32 beginning in the first quarter of 2014.
Tony Guzzi, President and Chief Executive Officer of EMCOR Group, said, “I am pleased to announce our new share repurchase program and our new dividend policy, which reflects our confidence in our financial strength and the future prospects for the company in 2014 and beyond. We believe in a balanced approach to capital allocation, which is demonstrated by our decision to also increase our dividend. Our strong balance sheet and consistent cash flow generation allow us to remain financially flexible with a continued focus on pursuing strategic investments that will support the long-term growth of the Company.”
The Company has already repurchased $77.5 million of its outstanding common stock of its current $100 million share repurchase program launched in September 2011. The new repurchase program will be funded from the Company’s internal funds. The shares will be repurchased from time to time in the open market or through privately negotiated transactions at the Company’s discretion, subject to market conditions, and in accordance with applicable regulatory requirements. The repurchase program does not obligate the Company to acquire any particular amount of common stock and may be suspended, recommenced or discontinued at any time or from time to time without prior notice.
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.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 2012 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.