10-KPeriod: FY2012

COMFORT SYSTEMS USA INC Annual Report, Year Ended Dec 31, 2012

Filed February 28, 2013For Securities:FIX

Summary

Comfort Systems USA, Inc. (FIX) filed its 10-K for the fiscal year ending December 31, 2012. The company reported a significant revenue increase of 9.4% to $1.33 billion, driven by both same-store growth and strategic acquisitions, particularly in the manufacturing sector, despite a slight decrease in the healthcare sector. The company's gross profit margin improved to 15.6% from 14.9% in the previous year, reflecting better project profitability and operational efficiencies. Despite revenue growth and improved gross margins, operating income saw a notable swing, moving from a loss of $42.6 million in 2011 to a profit of $22.3 million in 2012. This turnaround was primarily driven by the absence of a significant goodwill impairment charge that impacted 2011 results. The company also demonstrated strong liquidity, generating $30.5 million in cash flow from operating activities and maintaining zero outstanding borrowings under its credit facility, underscoring its financial stability.

Financial Highlights

55 data points
Beta

Revenue

$1.33B

15.6% Gross Margin

Net Income

$13.46M

1.0% Net Margin

EPS (Diluted)

$0.36

Total Assets

$580.75M

Cash & Equivalents

$40.76M

Free Cash Flow

$18.73M

Financial Statements
Beta
Revenue$1.33B
Cost of Revenue$1.12B
Gross Profit$207.62M
SG&A Expenses$185.81M
Operating Income$22.30M
Interest Expense$1.59M
Net Income$13.46M
EPS (Basic)$0.36
EPS (Diluted)$0.36
Shares Outstanding (Basic)37.11M
Shares Outstanding (Diluted)37.26M

Key Highlights

  • 1Revenue increased by 9.4% to $1.33 billion in 2012, driven by a 3.4% same-store revenue increase and 6.0% from acquisitions, with strength in the manufacturing sector.
  • 2Gross profit margin improved to 15.6% in 2012 from 14.9% in 2011, reflecting better project profitability and operational efficiencies.
  • 3Operating income turned positive, reaching $22.3 million in 2012, a significant improvement from a loss of $42.6 million in 2011, largely due to the absence of a goodwill impairment charge.
  • 4The company generated $30.5 million in cash flow from operating activities in 2012, indicating strong cash generation capabilities.
  • 5Comfort Systems maintained a healthy financial position with zero outstanding borrowings under its $125 million senior credit facility and $76.8 million in available credit as of December 31, 2012.
  • 6The company repurchased 0.3 million shares in 2012 for $2.9 million as part of its ongoing stock repurchase program.

Frequently Asked Questions

In 2012, Comfort Systems USA reported a revenue of $1.33 billion, an increase of 9.4% compared to the previous year. Gross profit margin improved to 15.6%. The company swung to an operating income of $22.3 million from a loss of $42.6 million in 2011, largely due to the absence of a significant goodwill impairment charge.

The company maintained a strong liquidity position, generating $30.5 million in operating cash flow in 2012. Notably, they had no outstanding borrowings under their $125 million senior credit facility and had $76.8 million in available credit as of December 31, 2012, indicating ample financial flexibility.

Revenue growth was driven by a combination of same-store activity, which increased by 3.4%, and acquisitions, which contributed 6.0%. A significant driver was increased activity in the manufacturing sector, notably a large data center project, although this was partially offset by decreased revenue in the healthcare sector.

Yes, Comfort Systems USA continued its stock repurchase program in 2012, acquiring approximately 0.3 million shares for $2.9 million. This reflects the company's commitment to returning value to shareholders.