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| FOR: | | EMCOR GROUP, INC. |
| News Release | | |
| CONTACT: | | R. Kevin Matz Executive Vice President Shared Services (203) 849-7938 |
| | | |
| | | FTI Consulting, Inc. Investors: Nathan Elwell / Matt Steinberg (212) 850-5600 |
| | | |
| | | LAK Public Relations, Inc. Media: Lisa Linden / Mollie Fullington 212-575-4545 / 917-346-6123 |
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| EMCOR GROUP, INC. REPORTS SECOND QUARTER 2014 RESULTS |
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| - Second Quarter EPS Growth of 90.3% - |
| - Total Backlog Increased 3.6% to $3.64 Billion - |
- Company Updates 2014 Guidance - |
NORWALK, CONNECTICUT, July 29, 2014 - EMCOR Group, Inc. (NYSE: EME) today reported results for the second quarter ended June 30, 2014.
For the second quarter of 2014, net income attributable to EMCOR was $39.9 million, or $0.59 per diluted share, compared to net income of $21.0 million, or $0.31 per diluted share, in the second quarter of 2013. Excluding one-time charges discussed below, non-GAAP net income for the quarter increased by 25.8% to $41.4 million, or $0.61 per diluted share, compared to non-GAAP net income of $32.9 million, or $0.48 per diluted share, in the second quarter of 2013. Revenues in the second quarter of 2014 totaled $1.56 billion, approximately the same as revenues in the year ago period.
Operating income for the second quarter of 2014 was $67.7 million, or 4.3% of revenues, which included UK operating losses and expenses aggregating approximately $1.9 million (including UK restructuring expenses of $0.3 million) relating to the Company's decision to withdraw from the UK construction market. Excluding those losses and expense items, the Company's non-GAAP operating income for the second quarter of 2014 increased by 35.8% to $69.7 million, or 4.5% of revenues, compared to non-GAAP operating income in the 2013 second quarter of $51.3 million, or 3.3% of revenues, which also excluded UK operating losses and expenses relating to the withdrawal from the UK construction market, as well as transaction costs associated with the 2013 acquisition of RepconStrickland, Inc.
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 2014 second quarter were $151.5 million, or 9.7% of revenues, compared to $139.6 million, or 9.0% of revenues, in the year ago period.
The Company's income tax rate in the 2014 second quarter was 38.0%, compared to an income tax rate of 38.5% in the year ago period.
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| EMCOR Reports Second Quarter Results | Page 2 |
Backlog as of June 30, 2014 was $3.64 billion, an increase of 3.6% from $3.51 billion at the end of the 2013 second quarter and an increase of 8.2% from $3.36 billion as of December 31, 2013. Domestic backlog grew by $138 million, which included backlog growth in the U.S. Electrical and Mechanical Construction segments and in the U.S. Industrial Services segment, offset by expected declines in the U.S. Building Services segment due to our 2013 service contract portfolio reshaping. Backlog growth in the commercial, transportation, healthcare and water/wastewater sectors was offset by declines in the industrial, institutional and hospitality/gaming sectors.
Tony Guzzi, President and Chief Executive Officer of EMCOR Group commented, “Our performance for the second quarter highlights the diverse strength of our businesses and resulted in overall improved profitability in a choppy environment. We are pleased with the mix of projects we are working on today and the strength of our backlog, despite the pace of the non-residential construction recovery being somewhat slower than originally expected.”
Mr. Guzzi added, “We demonstrated consistent, excellent results in our U.S. Electrical Construction segment and, based on backlog trends, we are confident in the direction of this business. Our U.S. Mechanical Construction segment generated an improved operating margin, and while our U.S. Building Services segment had a lower operating margin than a year ago, it remains well-positioned to deliver long-term growth as its year to date profitability is on track. Our U.S. Industrial segment had strong organic growth and continued success in the integration of RepconStrickland, Inc.”
Mr. Guzzi concluded, “Our improved profitability was the result of solid performance across most segments as we remain disciplined in our bidding activities. During the quarter, we generated strong cash flow and continued to enhance shareholder value through our share repurchase program. Overall, we have had a strong first six months, and, while the challenging non-residential construction environment has constrained revenue growth so far this year, we expect this market to show sequential improvement in the third and fourth quarters.”
Revenues for the first six months totaled $3.16 billion, higher by 1.0% compared to $3.13 billion for the first six months of 2013.
Net income attributable to EMCOR for the first half of 2014 was $81.2 million, or $1.19 per diluted share. Excluding the loss associated with our withdrawal from the UK construction market and restructuring expenses, non-GAAP net income for the first half of 2014 was $84.8 million, or $1.25 per diluted share, compared to non-GAAP net income of $67.1 million, or $0.99 per diluted share, in the year ago period, as adjusted for similar losses and expenses, as well as transaction expenses associated with the 2013 acquisition of RepconStrickland, Inc.
Operating income in the first half of 2014 was $137.1 million, or 4.3% of revenues. Excluding the items mentioned in the immediately preceding paragraph, non-GAAP operating income for the 2014 six-month period was $141.8 million, or 4.5% of revenues, compared to non-GAAP operating income of $107.8 million, or 3.5% of revenues, in the prior year period.
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| EMCOR Reports Second Quarter Results | Page 3 |
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 first six months of 2014, SG&A totaled $296.4 million, 9.4% of revenues, compared to $278.1 million, or 8.9% of revenues, in the first half of 2013.
The Company stated that, based on the current size and mix of its backlog and assuming the continuation of current market conditions, it now expects 2014 revenues to be approximately $6.6 billion, compared to its previous guidance of approximately $6.8 billion. The Company also now expects diluted earnings per share to be between $2.50 to $2.70, up from its previous guidance of between $2.45 to $2.70, excluding restructuring and other costs associated with the withdrawal from the UK construction market and a gain of approximately $11.7 million on the sale of a building in July 2014.
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 second quarter conference call will be available live via internet broadcast today, Tuesday, July 29, at 10:30 AM Eastern Daylight 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.
EMCOR GROUP, INC.
FINANCIAL HIGHLIGHTS
(In thousands, except share and per share information)
(Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
| | | | | | | | | | | | | | | | |
| | | For the three months ended June 30, | | For the six months ended June 30, |
| | | 2014 | | 2013 | | 2014 | | 2013 |
| Revenues | | $ | 1,558,055 |
| | $ | 1,556,753 |
| | $ | 3,157,440 |
| | $ | 3,125,154 |
|
| Cost of sales | | 1,338,420 |
| | 1,375,218 |
| | 2,722,594 |
| | 2,752,481 |
|
| Gross profit | | 219,635 |
| | 181,535 |
| | 434,846 |
| | 372,673 |
|
| Selling, general and administrative expenses | | 151,461 |
| | 139,623 |
| | 296,389 |
| | 278,133 |
|
| Restructuring expenses | | 438 |
| | 5,813 |
| | 1,347 |
| | 7,176 |
|
| Operating income | | 67,736 |
| | 36,099 |
| | 137,110 |
| | 87,364 |
|
| Interest expense | | (2,242 | ) | | (1,764 | ) | | (4,490 | ) | | (3,626 | ) |
| Interest income | | 221 |
| | 270 |
| | 455 |
| | 627 |
|
| Income before income taxes | | 65,715 |
| | 34,605 |
| | 133,075 |
| | 84,365 |
|
| Income tax provision | | 24,715 |
| | 13,131 |
| | 50,233 |
| | 32,173 |
|
| Net income including noncontrolling interests | | 41,000 |
| | 21,474 |
| | 82,842 |
| | 52,192 |
|
| Less: Net income attributable to noncontrolling interests | | (1,087 | ) | | (460 | ) | | (1,668 | ) | | (1,011 | ) |
| Net income attributable to EMCOR Group, Inc. | | $ | 39,913 |
| | $ | 21,014 |
| | $ | 81,174 |
| | $ | 51,181 |
|
| | | | | | | | | |
| Basic earnings per common share | | $ | 0.59 |
| | $ | 0.31 |
| | $ | 1.21 |
| | $ | 0.76 |
|
| Diluted earnings per common share | | $ | 0.59 |
| | $ | 0.31 |
| | $ | 1.19 |
| | $ | 0.75 |
|
| | | | | | | | | |
| Weighted average shares of common stock outstanding: | | |
| | | | | | |
| Basic | | 67,294,498 |
| | 67,095,447 |
| | 67,242,392 |
| | 67,102,530 |
|
| Diluted | | 68,000,361 |
| | 68,095,577 |
| | 68,000,750 |
| | 68,096,989 |
|
| | | | | | | | | |
| Dividends declared per common share | | $ | 0.08 |
| | $ | 0.06 |
| | $ | 0.16 |
| | $ | 0.06 |
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EMCOR GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
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| | | | | | | | |
| | | June 30, 2014 (Unaudited) | | December 31, 2013 |
| ASSETS | | | | |
| Current assets: | | | | |
| Cash and cash equivalents | | $ | 437,119 |
| | $ | 439,813 |
|
| Accounts receivable, net | | 1,203,666 |
| | 1,268,226 |
|
| Costs and estimated earnings in excess of billings on uncompleted contracts | | 110,267 |
| | 90,727 |
|
| Inventories | | 58,251 |
| | 52,123 |
|
| Prepaid expenses and other | | 78,530 |
| | 79,216 |
|
| Total current assets | | 1,887,833 |
| | 1,930,105 |
|
| Investments, notes and other long-term receivables | | 8,792 |
| | 6,799 |
|
| Property, plant & equipment, net | | 121,376 |
| | 123,414 |
|
| Goodwill | | 834,102 |
| | 834,825 |
|
| Identifiable intangible assets, net | | 522,493 |
| | 541,497 |
|
| Other assets | | 30,299 |
| | 29,275 |
|
| Total assets | | $ | 3,404,895 |
| | $ | 3,465,915 |
|
| LIABILITIES AND EQUITY | | |
| | |
|
| Current liabilities: | | |
| | |
|
| Borrowings under revolving credit facility | | $ | — |
| | $ | — |
|
| Current maturities of long-term debt and capital lease obligations | | 19,184 |
| | 19,332 |
|
| Accounts payable | | 399,926 |
| | 487,738 |
|
| Billings in excess of costs and estimated earnings on uncompleted contracts | | 380,781 |
| | 381,295 |
|
| Accrued payroll and benefits | | 206,889 |
| | 237,779 |
|
| Other accrued expenses and liabilities | | 177,759 |
| | 172,599 |
|
| Total current liabilities | | 1,184,539 |
| | 1,298,743 |
|
| Borrowings under revolving credit facility | | — |
| | — |
|
| Long-term debt and capital lease obligations | | 326,084 |
| | 335,331 |
|
| Other long-term obligations | | 346,781 |
| | 352,215 |
|
| Total liabilities | | 1,857,404 |
| | 1,986,289 |
|
| Equity: | | |
| | |
|
| Total EMCOR Group, Inc. stockholders’ equity | | 1,533,862 |
| | 1,466,265 |
|
| Noncontrolling interests | | 13,629 |
| | 13,361 |
|
| Total equity | | 1,547,491 |
| | 1,479,626 |
|
| Total liabilities and equity | | $ | 3,404,895 |
| | $ | 3,465,915 |
|
EMCOR GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 2014 and 2013
(In thousands) (Unaudited)
|
| | | | | | | | |
| | | 2014 | | 2013 |
| Cash flows - operating activities: | | | | |
| Net income including noncontrolling interests | | $ | 82,842 |
| | $ | 52,192 |
|
| Depreciation and amortization | | 17,956 |
| | 16,895 |
|
| Amortization of identifiable intangible assets | | 19,005 |
| | 12,687 |
|
| Deferred income taxes | | 4,648 |
| | (436 | ) |
| Loss on sale of subsidiary | | 608 |
| | — |
|
| Excess tax benefits from share-based compensation | | (5,627 | ) | | (994 | ) |
| Equity income from unconsolidated entities | | (836 | ) | | (240 | ) |
| Other non-cash items | | 3,185 |
| | 2,417 |
|
| Distributions from unconsolidated entities | | 572 |
| | 634 |
|
| Changes in operating assets and liabilities, excluding the effect of businesses acquired | | (82,713 | ) | | (135,366 | ) |
| Net cash provided by (used in) operating activities | | 39,640 |
| | (52,211 | ) |
| Cash flows - investing activities: | | |
| | |
|
| Payments for acquisitions of businesses, net of cash acquired | | — |
| | (1,050 | ) |
| Proceeds from sale of subsidiary | | 1,108 |
| | — |
|
| Proceeds from sale of property, plant and equipment | | 2,630 |
| | 861 |
|
| Purchase of property, plant and equipment | | (16,579 | ) | | (14,820 | ) |
| Maturity of short-term investments | | — |
| | 4,616 |
|
| Investments in and advances to unconsolidated entities and joint ventures | | (1,590 | ) | | — |
|
| Net cash used in investing activities | | (14,431 | ) | | (10,393 | ) |
| Cash flows - financing activities: | | |
| | |
|
| Repayments of long-term debt | | (8,756 | ) | | (4 | ) |
| Repayments of capital lease obligations | | (840 | ) | | (786 | ) |
| Dividends paid to stockholders | | (10,743 | ) | | (4,027 | ) |
| Repurchase of common stock | | (18,332 | ) | | (4,998 | ) |
| Proceeds from exercise of stock options | | 4,533 |
| | 1,933 |
|
| Payments to satisfy minimum tax withholding | | (1,481 | ) | | (927 | ) |
| Issuance of common stock under employee stock purchase plan | | 1,753 |
| | 1,344 |
|
| Payments for contingent consideration arrangements | | — |
| | (537 | ) |
| Distributions to noncontrolling interests | | (1,400 | ) | | (1,050 | ) |
| Excess tax benefits from share-based compensation | | 5,627 |
| | 994 |
|
| Net cash used in financing activities | | (29,639 | ) | | (8,058 | ) |
| Effect of exchange rate changes on cash and cash equivalents | | 1,736 |
| | (4,256 | ) |
| Decrease in cash and cash equivalents | | (2,694 | ) | | (74,918 | ) |
| Cash and cash equivalents at beginning of year | | 439,813 |
| | 605,303 |
|
| Cash and cash equivalents at end of period | | $ | 437,119 |
| | $ | 530,385 |
|
EMCOR GROUP, INC.
SEGMENT INFORMATION
(In thousands) (Unaudited)
|
| | | | | | | | |
| | | For the three months ended June 30, |
| | | 2014 | | 2013 |
| Revenues from unrelated entities: | | | | |
| United States electrical construction and facilities services | | $ | 335,492 |
| | $ | 336,330 |
|
| United States mechanical construction and facilities services | | 538,556 |
| | 583,963 |
|
| United States building services | | 418,142 |
| | 448,459 |
|
| United States industrial services | | 177,232 |
| | 78,935 |
|
| Total United States operations | | 1,469,422 |
| | 1,447,687 |
|
| United Kingdom construction and building services | | 88,633 |
| | 109,066 |
|
| Total worldwide operations | | $ | 1,558,055 |
| | $ | 1,556,753 |
|
| | | | | |
|
| | | | | | | | |
| | | For the six months ended June 30, |
| | | 2014 | | 2013 |
| Revenues from unrelated entities: | | | | |
| United States electrical construction and facilities services | | $ | 643,628 |
| | $ | 643,914 |
|
| United States mechanical construction and facilities services | | 1,051,567 |
| | 1,125,080 |
|
| United States building services | | 866,186 |
| | 903,615 |
|
| United States industrial services | | 409,190 |
| | 224,479 |
|
| Total United States operations | | 2,970,571 |
| | 2,897,088 |
|
| United Kingdom construction and building services | | 186,869 |
| | 228,066 |
|
| Total worldwide operations | | $ | 3,157,440 |
| | $ | 3,125,154 |
|
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EMCOR GROUP, INC.
SEGMENT INFORMATION
(In thousands) (Unaudited)
|
| | | | | | | | |
| | | For the three months ended June 30, |
| | | 2014 | | 2013 |
| Operating income (loss): | | | | |
| United States electrical construction and facilities services | | $ | 24,841 |
| | $ | 25,236 |
|
| United States mechanical construction and facilities services | | 28,740 |
| | 18,248 |
|
| United States building services | | 13,920 |
| | 16,763 |
|
| United States industrial services | | 12,376 |
| | 3,265 |
|
| Total United States operations | | 79,877 |
| | 63,512 |
|
| United Kingdom construction and building services | | 4,541 |
| | (4,537 | ) |
| Corporate administration | | (16,244 | ) | | (17,063 | ) |
| Restructuring expenses | | (438 | ) | | (5,813 | ) |
| Total worldwide operations | | 67,736 |
| | 36,099 |
|
| Other corporate items: | | |
| | |
| Interest expense | | (2,242 | ) | | (1,764 | ) |
| Interest income | | 221 |
| | 270 |
|
| Income before income taxes | | $ | 65,715 |
| | $ | 34,605 |
|
| | | | | |
|
| | | | | | | | |
| | | For the six months ended June 30, |
| | | 2014 | | 2013 |
| Operating income (loss): | | | | |
| United States electrical construction and facilities services | | $ | 46,496 |
| | $ | 44,176 |
|
| United States mechanical construction and facilities services | | 47,846 |
| | 29,388 |
|
| United States building services | | 34,218 |
| | 29,643 |
|
| United States industrial services | | 35,770 |
| | 26,012 |
|
| Total United States operations | | 164,330 |
| | 129,219 |
|
| United Kingdom construction and building services | | 5,838 |
| | (3,258 | ) |
| Corporate administration | | (31,711 | ) | | (31,421 | ) |
| Restructuring expenses | | (1,347 | ) | | (7,176 | ) |
| Total worldwide operations | | 137,110 |
| | 87,364 |
|
| Other corporate items: | | |
| | |
| Interest expense | | (4,490 | ) | | (3,626 | ) |
| Interest income | | 455 |
| | 627 |
|
| Income before income taxes | | $ | 133,075 |
| | $ | 84,365 |
|
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EMCOR GROUP, INC.
RECONCILIATION OF 2014 AND 2013 OPERATING INCOME
(In thousands) (Unaudited)
In our press release, we provide actual 2014 and 2013 second quarter and year-to-date June 30, 2014 and 2013 operating income. The following table provides a reconciliation between 2014 and 2013 operating income based on non-GAAP measures to the most direct comparable GAAP measures.
|
| | | | | | | | | | | | | | | | |
| | | For the three months ended June 30, | | For the six months ended June 30, |
| | | 2014 | | 2013 | | 2014 | | 2013 |
| GAAP operating income | | $ | 67,736 |
| | $ | 36,099 |
| | $ | 137,110 |
| | $ | 87,364 |
|
| Transaction expenses related to the acquisition of RepconStrickland, Inc. | | — |
| | 1,361 |
| | — |
| | 1,361 |
|
| EMCOR UK construction operating losses | | 1,662 |
| | 8,023 |
| | 3,727 |
| | 11,910 |
|
| EMCOR UK restructuring expenses | | 261 |
| | 5,801 |
| | 946 |
| | 7,126 |
|
Non-GAAP operating income, excluding RepconStrickland transaction expenses, UK losses and UK restructuring expenses | | $ | 69,659 |
| | $ | 51,284 |
| | $ | 141,783 |
| | $ | 107,761 |
|
EMCOR GROUP, INC.
RECONCILIATION OF 2014 AND 2013 NET INCOME
(In thousands) (Unaudited)
In our press release, we provide actual 2014 and 2013 second quarter and year-to-date June 30, 2014 and 2013 net income attributable to EMCOR Group, Inc. The following table provides a reconciliation between 2014 and 2013 net income attributable to EMCOR Group, Inc. based on non-GAAP measures to the most direct comparable GAAP measures.
|
| | | | | | | | | | | | | | | | |
| | | For the three months ended June 30, | | For the six months ended June 30, |
| | | 2014 | | 2013 | | 2014 | | 2013 |
| GAAP net income attributable to EMCOR Group, Inc. | | $ | 39,913 |
| | $ | 21,014 |
| | $ | 81,174 |
| | $ | 51,181 |
|
Transaction expenses related to the acquisition of RepconStrickland, Inc. (1) | | — |
| | 1,301 |
| | — |
| | 1,301 |
|
EMCOR UK construction losses (2) | | 1,305 |
| | 6,158 |
| | 2,926 |
| | 9,141 |
|
EMCOR UK restructuring expenses (3) | | 205 |
| | 4,452 |
| | 743 |
| | 5,469 |
|
| Non-GAAP net income attributable to EMCOR Group, Inc., excluding RepconStrickland transaction expenses, UK losses and UK restructuring expenses | | $ | 41,423 |
| | $ | 32,925 |
| | $ | 84,843 |
| | $ | 67,092 |
|
(1) Amount is net of tax effect of $0.1 million in the 2013 quarter and $0.1 million in the 2013 six-month period.
(2) Amount is net of tax effect of $0.4 million in the 2014 quarter and $0.8 million in the 2014 six-month period.
Amount is net of tax effect of $1.9 million in the 2013 quarter and $2.8 million in the 2013 six-month period.
(3) Amount is net of tax effect of $0.1 million in the 2014 quarter and $0.2 million in the 2014 six-month period.
Amount is net of tax effect of $1.3 million in the 2013 quarter and $1.7 million in the 2013 six-month period.
EMCOR GROUP, INC.
RECONCILIATION OF 2014 AND 2013 DILUTED EARNINGS PER SHARE FIGURES
(Unaudited)
In our press release, we provide actual 2014 and 2013 second quarter and year-to-date June 30, 2014 and 2013 diluted earnings per share. The following table provides a reconciliation between 2014 and 2013 diluted EPS based on non-GAAP measures to the most direct comparable GAAP measures.
|
| | | | | | | | | | | | | | | | |
| | | For the three months ended June 30, | | For the six months ended June 30, |
| | | 2014 | | 2013 | | 2014 | | 2013 |
| GAAP diluted earnings per common share | | $ | 0.59 |
| | $ | 0.31 |
| | $ | 1.19 |
| | $ | 0.75 |
|
Transaction expenses related to the acquisition of RepconStrickland, Inc. (1) | | — |
| | 0.02 |
| | — |
| | 0.02 |
|
EMCOR UK construction losses (2) | | 0.02 |
| | 0.09 |
| | 0.04 |
| | 0.13 |
|
EMCOR UK restructuring expenses (3) | | 0.00 |
| | 0.07 |
| | 0.01 |
| | 0.08 |
|
| Non-GAAP diluted earnings per common share, excluding RepconStrickland transaction expenses, UK losses and UK restructuring expenses | | $ | 0.61 |
| | $ | 0.48 |
| | $ | 1.25 |
| | $ | 0.99 |
|
(1) Amount is net of tax effect of $0.1 million in the 2013 quarter and $0.1 million in the 2013 six-month period.
(2) Amount is net of tax effect of $0.4 million in the 2014 quarter and $0.8 million in the 2014 six-month period.
Amount is net of tax effect of $1.9 million in the 2013 quarter and $2.8 million in the 2013 six-month period.
(3) Amount is net of tax effect of $0.1 million in the 2014 quarter and $0.2 million in the 2014 six-month period.
Amount is net of tax effect of $1.3 million in the 2013 quarter and $1.7 million in the 2013 six-month period.
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