Summary
Comfort Systems USA, Inc. (FIX) reported for the fiscal year ending December 31, 2013, a substantial increase in revenue to $1,357.3 million, a 2.0% rise from the previous year, driven by strong performance in its Arizona and EAS operations. This revenue growth, coupled with improved operational efficiencies and market conditions, led to a significant increase in gross profit, up 15.5% to $239.9 million, resulting in a gross profit margin of 17.7%. The company's net income attributable to common stockholders also saw a substantial improvement, reaching $27.3 million, a significant turnaround from the loss reported in 2011 and a notable increase from $13.5 million in 2012. This performance reflects the company's successful strategy of focusing on core competencies, achieving operating efficiencies, and leveraging its resources across its 36 operating units in 79 cities. Despite a competitive market and economic uncertainties, Comfort Systems demonstrated strong liquidity, with $52.1 million in cash and cash equivalents and no outstanding borrowings on its $175 million revolving credit facility as of year-end 2013. The company generated $38.4 million in cash flow from operating activities, indicating robust cash generation capabilities. Key risk factors identified include the cyclical nature of the construction industry, potential cost overruns on contracts, and reliance on third-party subcontractors and suppliers. However, the company's diversified customer base, strong backlog, and focus on both installation and maintenance/repair services position it well to navigate these challenges and pursue future growth opportunities.
Financial Highlights
54 data points| Revenue | $1.36B |
| Cost of Revenue | $1.12B |
| Gross Profit | $239.88M |
| SG&A Expenses | $194.21M |
| Operating Income | $46.26M |
| Interest Expense | $1.35M |
| Net Income | $27.27M |
| EPS (Basic) | $0.73 |
| EPS (Diluted) | $0.73 |
| Shares Outstanding (Basic) | 37.24M |
| Shares Outstanding (Diluted) | 37.54M |
Key Highlights
- 1Revenue increased by 2.0% to $1,357.3 million in 2013, primarily due to growth in Arizona and EAS operations, offsetting a decline in Virginia.
- 2Gross profit significantly improved by 15.5% to $239.9 million, with gross profit margin increasing from 15.6% to 17.7%, driven by improved profitability and market conditions.
- 3Net income attributable to Comfort Systems USA, Inc. rose to $27.3 million in 2013, up from $13.5 million in 2012, indicating improved operational performance.
- 4The company maintained strong liquidity, ending 2013 with $52.1 million in cash and cash equivalents and no borrowings on its $175 million credit facility.
- 5Cash flow from operating activities was robust at $38.4 million in 2013, supporting free cash flow of $22.1 million.
- 6Backlog was $603.6 million as of December 31, 2013, a slight decrease from the prior year, reflecting ongoing industry conditions.
- 7Comfort Systems is focused on improving execution, cost control, and project/service performance, with an outlook for comparable profitability in 2014.