Summary
Comfort Systems USA, Inc. (FIX) reported strong financial performance for the fiscal year ending December 31, 2018, demonstrating significant growth in revenue and profitability. The company, a leading provider of comprehensive mechanical and electrical contracting services, saw a substantial increase in revenue, driven by both organic growth and strategic acquisitions. This growth reflects a healthy demand for its services across commercial, industrial, and institutional sectors, with a particular strength in renovation, expansion, maintenance, repair, and replacement services. The company's operational efficiency and focus on core competencies, such as design and build expertise and service excellence, contributed to improved gross margins. Despite increased selling, general, and administrative (SG&A) expenses, largely due to investments in growth and higher compensation costs, SG&A as a percentage of revenue decreased, indicating effective cost management. Comfort Systems USA, Inc. also maintained a strong liquidity position and generated robust free cash flow, enabling continued investment in its business and shareholder returns through dividends and share repurchases. The company remains optimistic about its growth prospects, anticipating continued favorable industry conditions and planning to focus on execution and cost control in the upcoming year.
Financial Highlights
52 data points| Revenue | $2.18B |
| Cost of Revenue | $1.74B |
| Gross Profit | $446.28M |
| SG&A Expenses | $296.99M |
| Operating Income | $150.24M |
| Interest Expense | $3.71M |
| Net Income | $112.90M |
| EPS (Basic) | $3.03 |
| EPS (Diluted) | $3.00 |
| Shares Outstanding (Basic) | 37.20M |
| Shares Outstanding (Diluted) | 37.59M |
Key Highlights
- 1Revenue increased by 22.1% to $2.18 billion in 2018 compared to 2017, driven by a combination of same-store growth (17.0%) and acquisitions (5.1%).
- 2Gross profit increased by 21.8% to $446.3 million, with gross margin remaining stable at 20.4% in 2018, reflecting improved project execution.
- 3Selling, General, and Administrative (SG&A) expenses increased by 11.4% to $297.0 million, but as a percentage of revenue, SG&A decreased from 14.9% in 2017 to 13.6% in 2018.
- 4Net income attributable to Comfort Systems USA, Inc. significantly increased to $112.9 million in 2018, compared to $55.3 million in 2017.
- 5The company generated strong free cash flow of $121.6 million in 2018, compared to $80.0 million in 2017, indicating healthy operational cash generation.
- 6Backlog as of December 31, 2018, was $1.17 billion, a 23.0% increase year-over-year, signaling strong future revenue potential.
- 7The company repurchased 0.6 million shares for approximately $28.5 million during 2018, demonstrating a commitment to returning capital to shareholders.