01—Abstract
Summary
Summary of the 10-K filed February 28, 2013. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 millionb in cash flow from operating activities and maintaining zero outstanding borrowings under its credit facility, underscoring its financial stability.
02—Key points
Key Highlights
- Revenue 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.
- Gross profit margin improved to 15.6% in 2012 from 14.9% in 2011, reflecting better project profitability and operational efficiencies.
- Operating 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.
- The company generated $30.5 million in cash flow from operating activities in 2012, indicating strong cash generation capabilities.
- Comfort 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.
- The company repurchased 0.3 million shares in 2012 for $2.9 million as part of its ongoing stock repurchase program.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2012, Comfort Systems USA kept $0.01.
- Revenue$1.33B100.0%
- Cost of revenue−$1.12B84.4%
- Gross profit$207.6M15.6%
- Operating costs−$185.3M13.9%
- Operating income$22.3M1.7%
- Interest, other & tax−$8.8M0.7%
- Net income$13.5M1.0%
Where FY2012 revenue went
$1.33B- Cost of revenue: $1.12B, 84% of revenue
- SG&A: $185.8M, 14% of revenue
- Net income: $13.5M, 1.0% of revenue
- Interest, other & tax: $8.8M, 0.7% of revenue
Kept 1.0% as net incomeNet income $13.5M · 1.0%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2012filed February 28, 2013Financial Statements
FY2012 against FY2011
| Line item | FY2012FY2011 | Change |
|---|---|---|
| Revenue | $1.33B$1.22B | +9.4% |
| Cost of Revenue | $1.12B$1.04B | +8.5% |
| Gross Profit | $207.62M$181.53M | +14.4% |
| SG&A Expenses | $185.81M$167.05M | +11.2% |
| Operating Income | $22.30M-$42.64M | +152.3% |
| Interest Expense | $1.59M$1.89M | −15.4% |
| Net Income | $13.46M-$36.83M | +136.6% |
| EPS (Basic) | $0.36$-0.99 | +136.4% |
| EPS (Diluted) | $0.36$-0.99 | +136.4% |
| Shares Outstanding (Basic) | 37.11M37.39M | −0.7% |
| Shares Outstanding (Diluted) | 37.26M37.39M | −0.3% |
05—Questions
Frequently Asked Questions
What was Comfort Systems USA's revenue and profitability performance in 2012?
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.
How did the company manage its debt and liquidity?
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.
What were the main drivers of revenue growth in 2012?
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.
Did the company engage in any share repurchases in 2012?
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.
06—Continue