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FIX · Comfort Systems USA

50 filings

10-Q

FIX 10-Q Quarterly Reports

Comfort Systems USA - 50 quarterly reports

Filing record · 2016–202610-K1110-Q338-K137

FIX filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 137 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Apr ’17Apr ’17
  2. Material agreement8-K · Dec ’19Dec ’19
  3. Leadership change8-K · Jan ’22Jan ’22
  4. Leadership change8-K · Dec ’25Dec ’25
  1. 2026-Q3

    Comfort Systems USA Quarterly Report for Q3 Ended Sep 30, 2026

    Comfort Systems USA, Inc. (FIX) reported a significant increase in revenue and net income for the nine months ended September 30, 2026, compared to the same period in 2025. Revenue surged by 53.3% to $9.9 billion, driven by strong organic growth across both its mechanical and electrical segments, particularly in the technology sector, and the impact of recent acquisitions. Net income also saw a substantial rise of 88.1% to $1.3 billion, reflecting improved operational efficiencies and revenue growth. The company's backlog also grew significantly, indicating strong future revenue potential. Despite increased investments in property and equipment, the company maintained a strong liquidity position, with a substantial increase in cash and cash equivalents.

    Oct 22, 2026
  2. 2026-Q2

    Comfort Systems USA Quarterly Report for Q2 Ended Jun 30, 2026

    Comfort Systems USA, Inc. (FIX) reported a substantial increase in revenue and profitability for the six months ended June 30, 2026, compared to the same period in the prior year. Revenue surged by 53.1% to $6.13 billion, driven by robust same-store growth of 47.3% and contributions from recent acquisitions. This strong top-line performance, coupled with improved gross profit margins and effective management of selling, general, and administrative (SG&A) expenses, led to a significant increase in operating income, which more than doubled to $1.04 billion. The company also experienced a substantial improvement in cash flow from operations, which increased by over 800% to $1.53 billion, primarily due to higher earnings and favorable working capital movements. The company's strong financial position is further supported by a healthy backlog of $14.06 billion, indicating continued demand for its services, particularly within the technology sector. Management expects this positive trend to continue for the remainder of 2026, despite anticipating persistent cost pressures and supply chain challenges.

    Jul 23, 2026
  3. 2026-Q1

    Comfort Systems USA Quarterly Report for Q1 Ended Mar 31, 2026

    Comfort Systems USA, Inc. (FIX) has reported a strong first quarter for 2026, demonstrating significant growth across its mechanical and electrical services segments. Revenue surged by 56.5% year-over-year to $2.87 billion, driven by robust demand, particularly in the technology sector, and contributions from recent acquisitions. Gross profit also saw a substantial increase of 87.0%, reaching $754.4 million, with improved margins reflecting better operational execution and favorable project developments. The company’s backlog has expanded significantly, up 80.8% year-over-year to $12.45 billion, signaling continued strong demand and providing visibility for future revenue. Despite facing persistent labor cost increases and supply chain challenges, Comfort Systems has managed these effectively through proactive planning and pricing strategies. The company maintains a strong liquidity position with significant credit availability and a history of consistent free cash flow generation.

    Apr 23, 2026
  4. 2025-Q3

    Comfort Systems USA Quarterly Report for Q3 Ended Sep 30, 2025

    Comfort Systems USA, Inc. (FIX) reported a strong third quarter and nine-month performance for the period ending September 30, 2025. Revenue surged significantly year-over-year, driven by robust demand in the technology sector, particularly for data centers, and strong performance in both mechanical and electrical segments. The company saw substantial growth in its backlog, indicating continued positive momentum. Profitability improved considerably, with gross profit and operating income showing significant increases due to higher revenues and enhanced operational execution. The company also demonstrated strong free cash flow generation and maintained a healthy liquidity position, further strengthened by an amendment to its credit facility, increasing borrowing capacity. While the company continues to navigate challenges such as increased labor costs and supply chain delays, management remains optimistic about the outlook for the remainder of 2025 and into 2026, citing strong project pipelines and favorable market conditions in key sectors. The company also made strategic acquisitions during the period, further expanding its capabilities and market reach.

    Oct 23, 2025
  5. 2025-Q2

    Comfort Systems USA Quarterly Report for Q2 Ended Jun 30, 2025

    Comfort Systems USA, Inc. (FIX) demonstrated strong financial performance in its second quarter and first half of 2025, with significant increases in revenue and gross profit. Revenue surged by 20.1% year-over-year for the quarter, reaching $2.17 billion, driven by robust demand, particularly in the technology sector and data center construction. The company's backlog also saw substantial growth, increasing by 40.7% year-over-year to $8.12 billion, indicating continued strong business prospects. Profitability improved notably, with gross profit rising by 40.2% for the quarter and operating income more than doubling year-over-year. This improvement was attributed to higher revenues, better operational execution, and improved gross profit margins in the mechanical segment. Despite increased SG&A expenses due to higher headcount and compensation costs, the company managed to leverage its revenue growth, leading to a slight decrease in SG&A as a percentage of revenue. The company ended the period with a strong liquidity position and ample credit availability.

    Jul 24, 2025
  6. 2025-Q1

    Comfort Systems USA Quarterly Report for Q1 Ended Mar 31, 2025

    Comfort Systems USA, Inc. (FIX) reported a strong first quarter for 2025, with significant revenue and net income growth compared to the prior year. Revenue increased by 19.1% to $1.83 billion, driven by robust demand, particularly in the technology and manufacturing sectors, and augmented by recent acquisitions. Net income surged by 75.8% to $169.3 million, translating to a substantial increase in diluted earnings per share to $4.75. The company also demonstrated improved operational efficiency, with gross profit margin expanding to 22.0% from 19.3% in the prior year, attributed to higher revenues and better project execution. Despite positive operational results, the company's cash flow from operations turned negative, primarily due to a significant decrease in accounts payable and other current liabilities and a strategic timing of tax payments. This resulted in a substantial decrease in cash and cash equivalents on the balance sheet. However, the company maintains a strong liquidity position with ample availability under its revolving credit facility. Backlog also saw healthy growth, indicating continued demand for its services in the near to medium term, which provides confidence in the company's outlook for the remainder of 2025.

    Apr 24, 2025
  7. 2024-Q3

    Comfort Systems USA Quarterly Report for Q3 Ended Sep 30, 2024

    Comfort Systems USA, Inc. (FIX) reported a strong third quarter and year-to-date performance, driven by significant revenue growth and improved profitability. Revenue for the nine months ended September 30, 2024, surged by 34.0% to $5.16 billion, compared to $3.85 billion in the prior year period. This growth was fueled by both organic expansion ("same-store activity") and strategic acquisitions, particularly in the technology and manufacturing sectors. The company's operating income more than doubled year-over-year for the nine-month period, reaching $523.0 million from $298.1 million, reflecting improved gross margins and operational leverage. The company's balance sheet remains robust, with a substantial increase in cash and cash equivalents to $415.6 million from $205.2 million at the end of 2023, supported by strong operating cash flow. Acquisitions, notably Summit Industrial Construction and J&S Mechanical Contractors, have contributed significantly to both revenue and goodwill. Management anticipates continued strong demand, especially from technology and manufacturing clients, positioning the company for solid earnings through the remainder of 2024 and into 2025, despite ongoing concerns regarding labor costs and supply chain pressures.

    Oct 24, 2024
  8. 2024-Q2

    Comfort Systems USA Quarterly Report for Q2 Ended Jun 30, 2024

    Comfort Systems USA, Inc. (FIX) reported strong financial performance for the quarter and six months ended June 30, 2024, driven by significant revenue growth across both its mechanical and electrical segments. The company's strategic acquisitions, including Summit Industrial Construction, LLC and J & S Mechanical Contractors, Inc., contributed substantially to this growth, alongside robust organic "same-store" performance, particularly in the technology and manufacturing sectors. Key financial highlights include substantial increases in revenue and gross profit, coupled with improved gross profit margins. The company also demonstrated effective cost management, with Selling, General, and Administrative (SG&A) expenses as a percentage of revenue decreasing. Free cash flow generation remained strong, reflecting the company's operational efficiency and effective working capital management. Despite ongoing inflationary pressures and supply chain challenges, management anticipates continued solid earnings and cash flow for the remainder of 2024.

    Jul 25, 2024
  9. 2024-Q1

    Comfort Systems USA Quarterly Report for Q1 Ended Mar 31, 2024

    Comfort Systems USA, Inc. (FIX) reported a strong first quarter for 2024, with significant increases in revenue and net income compared to the prior year. Revenue grew by 30.8% to $1.54 billion, driven by robust demand across its mechanical and electrical segments, particularly in technology and manufacturing sectors. This growth was supported by both existing operations and strategic acquisitions, as evidenced by a substantial 33.0% increase in backlog year-over-year. The company's profitability also saw a marked improvement, with gross profit increasing by 44.8% and net income rising to $96.3 million, or $2.69 per diluted share, up from $57.2 million, or $1.59 per diluted share, in the first quarter of 2023. This improved performance was attributed to higher revenues, better operational execution, and increased gross profit margins. Despite some persistent challenges like increased labor costs and supply chain constraints, the company anticipates continued solid earnings and cash flow for the remainder of 2024, projecting sustained supportive conditions, especially for its industrial and technology clients.

    Apr 25, 2024
  10. 2023-Q3

    Comfort Systems USA Quarterly Report for Q3 Ended Sep 30, 2023

    Comfort Systems USA, Inc. (FIX) reported a strong third quarter for 2023, demonstrating significant growth across key financial metrics. Revenue increased by 23.0% year-over-year to $1.38 billion, driven by robust demand in both the mechanical and electrical segments, including contributions from recent acquisitions. This revenue growth translated into a substantial increase in gross profit, up 37.2% to $277.5 million, with gross margin improving from 18.1% to 20.1%. Net income also saw a significant rise of 70.9% to $105.1 million, or $2.93 per diluted share. The company highlighted strong backlog growth, up 31.9% year-over-year to $4.29 billion, indicating a healthy pipeline of future projects. Management expressed confidence in continued solid earnings and cash flow through the remainder of 2023 and into 2024, despite ongoing challenges in labor costs and supply chain constraints. The company also reported a strong operating cash flow and a healthy available credit facility, underscoring its financial stability and operational execution.

    Oct 26, 2023
  11. 2023-Q2

    Comfort Systems USA Quarterly Report for Q2 Ended Jun 30, 2023

    Comfort Systems USA, Inc. (FIX) demonstrated robust financial performance in the second quarter and first half of 2023, with significant increases in revenue and gross profit across both its mechanical and electrical services segments. Revenue growth was driven by a combination of strong market conditions, successful acquisitions (notably Eldeco, Inc.), and the ability to pass through inflationary cost increases to customers. The company also saw a substantial year-over-year increase in its backlog, indicating strong future demand. Operational efficiency improved, with gross profit margin expanding slightly, and selling, general, and administrative (SG&A) expenses as a percentage of revenue decreasing. The company generated strong operating cash flow and free cash flow, underscoring its financial health and operational effectiveness. While facing persistent challenges like supply chain constraints and labor cost increases, Comfort Systems USA, Inc. remains optimistic about solid earnings and cash flow for the remainder of 2023 and has substantial bookings for 2024.

    Jul 26, 2023
  12. 2023-Q1

    Comfort Systems USA Quarterly Report for Q1 Ended Mar 31, 2023

    Comfort Systems USA, Inc. (FIX) reported a strong first quarter for 2023, with revenue increasing by 32.7% year-over-year to $1.17 billion. This growth was driven by both organic expansion ('same-store' activity) and strategic acquisitions, particularly in the electrical services segment. The company highlighted robust demand and an increasing backlog, which grew by 62.6% year-over-year to $4.44 billion, indicating positive near-term revenue prospects. Profitability also improved, with gross profit up 34.1% and operating income more than doubling. The company's financial position remains solid, with significant available credit and positive free cash flow generation, although they are managing ongoing challenges such as supply chain constraints and labor cost increases. Key developments include the acquisition of Eldeco, Inc. and a favorable legal settlement that positively impacted gross profit. Management anticipates continued solid earnings and cash flow for 2023, expecting supportive industry conditions despite potential economic headwinds. Investors should note the strong backlog growth and revenue expansion, coupled with improved operating margins, as key indicators of the company's performance.

    Apr 26, 2023
  13. 2022-Q3

    Comfort Systems USA Quarterly Report for Q3 Ended Sep 30, 2022

    Comfort Systems USA, Inc. (FIX) reported a strong third quarter in 2022, with significant year-over-year growth in revenue and net income. Revenue surged by 34.3% to $1.12 billion, driven by both organic growth across its mechanical and electrical segments and contributions from recent acquisitions. The company benefited from favorable market conditions and the pass-through of inflation on costs. Profitability also saw a substantial improvement, with net income increasing by 32.9% to $61.5 million. This growth was supported by increased gross profit, despite a slight decrease in gross profit margin percentage, and well-managed selling, general, and administrative (SG&A) expenses which decreased as a percentage of revenue. The company's robust backlog provides a positive outlook for continued revenue generation, and management anticipates solid earnings and cash flow for the remainder of 2022.

    Oct 26, 2022
  14. 2022-Q2

    Comfort Systems USA Quarterly Report for Q2 Ended Jun 30, 2022

    Comfort Systems USA, Inc. (FIX) reported strong revenue growth for the second quarter and the first six months of 2022, driven by both organic growth and strategic acquisitions. Revenue increased by 42.6% in Q2 and 37.5% year-to-date, reflecting robust market conditions and the successful integration of recent acquisitions. The company also demonstrated solid profitability, with gross profit increasing significantly year-over-year. While gross profit margin saw a slight decrease due to product mix and increased material costs, overall operating income and net income showed substantial improvements. The company highlighted strong backlog growth and an optimistic outlook for the remainder of 2022, despite ongoing challenges such as supply chain constraints and increased labor costs.

    Jul 27, 2022
  15. 2022-Q1

    Comfort Systems USA Quarterly Report for Q1 Ended Mar 31, 2022

    Comfort Systems USA, Inc. (FIX) reported robust financial results for the first quarter of 2022, demonstrating significant year-over-year growth driven by both organic expansion and strategic acquisitions. Revenue surged by 32.2% to $885.2 million, largely propelled by a 15.6% increase in same-store activity and a 16.6% boost from recent acquisitions, particularly in the electrical services segment. The company also saw a substantial increase in its backlog, which grew by 18.2% sequentially and 64.6% year-over-year, indicating strong future revenue potential. Net income saw a remarkable jump to $86.8 million from $26.5 million in the prior year's first quarter, aided by a significant tax benefit related to R&D tax credits and a reduction in unrecognized tax benefits. Despite increased selling, general, and administrative expenses and a slight dip in gross profit margin due to product and segment mix, the company's operational performance and financial position remain strong. Comfort Systems USA's proactive management of supply chain challenges and continued focus on operational efficiency position it for sustained performance in the coming quarters.

    Apr 27, 2022
  16. 2021-Q3

    Comfort Systems USA Quarterly Report for Q3 Ended Sep 30, 2021

    Comfort Systems USA, Inc. (FIX) reported solid revenue growth in the third quarter of 2021, with total revenue reaching $833.9 million, a 16.8% increase year-over-year. This growth was driven by both organic (same-store) increases and strategic acquisitions, notably TEC and Amteck. The company also saw a significant increase in its backlog, reaching $1.94 billion, indicating strong future revenue potential. Despite revenue growth, gross profit margins slightly compressed in the quarter to 19.1% from 20.6% in the prior year, primarily due to lower margins in certain segments and operations. However, selling, general, and administrative (SG&A) expenses as a percentage of revenue decreased, reflecting improved operational efficiencies and a decrease in bad debt expense. Net income for the quarter was $46.3 million, a slight decrease from $50.1 million in the prior year, impacted by factors including changes in the fair value of contingent earn-out obligations and higher income tax provision.

    Oct 27, 2021
  17. 2021-Q2

    Comfort Systems USA Quarterly Report for Q2 Ended Jun 30, 2021

    Comfort Systems USA, Inc. (FIX) reported its second quarter and first six months results for the period ending June 30, 2021. For the second quarter, revenue was $713.9 million, a decrease of 4.0% year-over-year, primarily driven by a 6.2% decrease in same-store activity, partially offset by the TEC acquisition. Net income for the quarter was $33.0 million, a decrease from $39.5 million in the prior year period. For the first six months, revenue declined 4.2% to $1.38 billion, while net income increased slightly to $59.5 million from $57.2 million in the prior year. The company's backlog saw a significant increase, growing 20.2% year-over-year to $1.84 billion, indicating a positive outlook for future revenue, particularly in the mechanical services segment. Despite the revenue decline in the current quarter, the company maintained a strong operational performance, with positive free cash flow generation of $100.8 million for the first six months of the year. The company also continues to manage its debt effectively, with ample credit availability under its senior credit facility.

    Jul 28, 2021
  18. 2021-Q1

    Comfort Systems USA Quarterly Report for Q1 Ended Mar 31, 2021

    Comfort Systems USA, Inc. (FIX) reported its first-quarter 2021 financial results, showing a decrease in revenue of 4.3% to $669.8 million compared to the prior year, largely due to an 11.8% decrease in same-store activity, partially offset by contributions from recent acquisitions. Despite the revenue decline, gross profit increased by 5.4% to $123.5 million, leading to a significant improvement in operating income, which rose to $35.6 million from $24.7 million in Q1 2020. This improved profitability was driven by better margins in the electrical segment and reduced selling, general, and administrative expenses. The company demonstrated strong cash flow generation, with operating cash flow increasing substantially to $84.6 million from $21.9 million year-over-year, bolstered by effective receivables management. Free cash flow also saw a significant increase, reaching $80.3 million. The company maintained a healthy liquidity position with $390.5 million in available credit under its senior credit facility. Management anticipates continued solid earnings and cash flow throughout 2021, supported by a robust backlog and improving industry conditions.

    Apr 28, 2021
  19. 2020-Q3

    Comfort Systems USA Quarterly Report for Q3 Ended Sep 30, 2020

    Comfort Systems USA, Inc. reported solid revenue growth for the nine months ended September 30, 2020, primarily driven by strategic acquisitions, including TAS Energy Inc. and an electrical contractor in North Carolina. Total revenue increased by 13.8% year-over-year, reaching $2.16 billion. This growth was supported by both acquired entities and a slight increase in same-store activity, indicating resilience despite the economic headwinds from COVID-19. The company also demonstrated strong operational execution, leading to a significant increase in gross profit of 11.0% year-over-year. Despite the ongoing pandemic, which impacted service revenue and operations, management has implemented safety precautions and expects continued earnings and cash flow generation, albeit with potential project award delays in the near term.

    Oct 26, 2020
  20. 2020-Q2

    Comfort Systems USA Quarterly Report for Q2 Ended Jun 30, 2020

    Comfort Systems USA, Inc. (FIX) reported a strong second quarter in 2020, driven by significant revenue growth, primarily attributed to strategic acquisitions, notably TAS Energy Inc. and an electrical contractor in North Carolina. Despite the ongoing economic uncertainty stemming from the COVID-19 pandemic, the company demonstrated resilience, with revenue increasing by 14.3% year-over-year for the quarter, supported by a 2.1% increase in same-store activity. The company also saw a healthy improvement in gross profit margins, rising from 18.5% to 19.6% on a year-over-year basis for the quarter, attributed to better project execution. Financially, the company maintained a solid liquidity position with substantial credit availability and a strong free cash flow generation of $150.6 million for the first six months of 2020. While the pandemic introduced cost increases and operational inefficiencies, particularly in the service business, management anticipates full-year 2020 earnings to be comparable to 2019 levels. The company's strategic focus on acquisitions and operational improvements, coupled with its robust financial health, positions it to navigate current market conditions effectively.

    Jul 27, 2020
  21. 2020-Q1

    Comfort Systems USA Quarterly Report for Q1 Ended Mar 31, 2020

    Comfort Systems USA, Inc. (FIX) reported its first-quarter 2020 financial results, highlighting a significant increase in revenue driven by strategic acquisitions, particularly the Walker acquisition and a North Carolina electrical contractor. Despite a 30% year-over-year revenue growth to $700.1 million, the company experienced a decrease in net income to $17.7 million ($0.48 per diluted share) from $19.9 million ($0.53 per diluted share) in the prior year's quarter. This decline is attributed to a lower gross profit margin, impacted by acquisition-related accounting and initial COVID-19 related operational inefficiencies. The company's financial position remains solid with substantial liquidity, evidenced by a significant increase in cash and cash equivalents to $133.3 million from $50.8 million year-over-year, bolstered by recent borrowing activity to fund acquisitions. Management noted that while the first quarter saw some impacts from COVID-19, the effects are expected to be more pronounced in the second quarter. The company is actively managing its cost structure and operational efficiencies in response to the evolving economic environment.

    Apr 27, 2020
  22. 2019-Q3

    Comfort Systems USA Quarterly Report for Q3 Ended Sep 30, 2019

    Comfort Systems USA, Inc. (FIX) reported a strong third quarter and year-to-date performance ending September 30, 2019, driven by significant revenue growth, largely attributable to strategic acquisitions, most notably the Walker acquisition. Revenue for the quarter increased by 18.9% to $706.9 million, and for the nine-month period, it rose by 18.9% to $1.9 billion. This growth was supported by a healthy increase in backlog, which stood at $1.61 billion, up 28.2% year-over-year, indicating robust future demand. While gross profit saw an increase of 11.6% for the quarter, the gross profit margin slightly compressed to 20.2% from 21.5% in the prior year, partly due to lower margins on the acquired Walker business and amortization of backlog. Selling, General, and Administrative (SG&A) expenses also increased, reflecting investments in personnel and professional fees related to growth and acquisitions. Despite these pressures, the company maintained solid profitability, with operating income showing a modest increase for the quarter. The company's financial position remains strong, evidenced by a healthy free cash flow generation of $78.5 million for the nine-month period and a strong liquidity position.

    Oct 24, 2019
  23. 2019-Q2

    Comfort Systems USA Quarterly Report for Q2 Ended Jun 30, 2019

    Comfort Systems USA, Inc. (FIX) reported a significant increase in revenue for the second quarter and first six months of 2019, driven largely by the acquisition of Walker TX Holding Company, LLC. While consolidated revenue saw substantial growth, same-store revenue experienced a slight decrease in the second quarter but increased over the first six months. The company's gross profit also increased in dollar terms but declined as a percentage of revenue, partly due to lower margins on the acquired business and amortization of backlog. Selling, General, and Administrative (SG&A) expenses rose, but as a percentage of revenue, they decreased. Net income for the quarter and six months was lower than the previous year, impacted by increased interest expense and changes in the fair value of contingent earn-out obligations, alongside a higher effective tax rate. Financially, the company shows a strong increase in total assets, significantly due to the acquisition, with substantial growth in goodwill and identifiable intangible assets. Debt levels increased considerably to fund acquisitions, reflected in higher interest expenses. Despite a decrease in operating cash flow, the company's liquidity remains strong, supported by a revolving credit facility and manageable debt levels relative to its earnings.

    Jul 25, 2019
  24. 2019-Q1

    Comfort Systems USA Quarterly Report for Q1 Ended Mar 31, 2019

    Comfort Systems USA, Inc. (FIX) reported a strong first quarter for 2019, demonstrating significant revenue and profit growth compared to the prior year. Revenue increased by 15.8% to $538.5 million, driven by a combination of organic growth and contributions from acquisitions. Gross profit saw a notable increase of 19.8% to $106.7 million, leading to an expansion in gross profit margin. This improved operational performance translated to a 49.4% increase in operating income to $28.0 million. Despite a slight increase in Selling, General, and Administrative (SG&A) expenses, the company managed to improve its SG&A as a percentage of revenue, indicating improved operational efficiency. Net income rose to $19.9 million, a 19.3% increase from the prior year, with diluted EPS growing to $0.53. The company's balance sheet remains robust, supported by a strong credit facility, and management expresses confidence in continued favorable industry conditions and profitability for the full year 2019.

    Apr 25, 2019
  25. 2018-Q3

    Comfort Systems USA Quarterly Report for Q3 Ended Sep 30, 2018

    Comfort Systems USA (FIX) reported strong third-quarter 2018 results, with revenue up 23.6% year over year to $594.5 million and net income rising 73% to $38.5 million, or $1.02 diluted EPS. For the first nine months, revenue grew 20.2% to $1.59 billion and net income nearly doubled to $87.7 million. Gross margin expanded modestly to 21.5% in the quarter, and SG&A fell as a percentage of revenue to 12.7%, producing a 52.8 million operating income (8.9% margin) versus 34.3 million a year earlier. Much of the growth was organic: same-store revenue rose 17.9% in the quarter, driven by the North Carolina, Virginia and Florida operations, and backlog reached a record $1.25 billion, up 39.3% from a year ago. Management expects year-over-year improvement in revenue and earnings in Q4 2018 and continued favorable conditions in 2019. Balance sheet and cash flow are solid but show some working-capital strain. Cash fell to $19.2 million, and borrowings on the revolver rose to $70.0 million, with total debt at $97.0 million, largely from acquisitions funded with notes to former owners. Billed receivables grew to $497.9 million, and operating cash flow of $68.0 million was roughly flat, with free cash flow of $47.0 million for the nine months versus $49.6 million a year earlier. Leverage remains low, with a total leverage ratio of 0.5x against a 3.0x covenant, and $296.4 million of credit was available at quarter end. Investors should note that management guided to a higher 2019 effective tax rate of 25% to 30%, up from 22% to 25% for 2018, which will pressure future net income margins.

    Oct 25, 2018
  26. 2018-Q2

    Comfort Systems USA Quarterly Report for Q2 Ended Jun 30, 2018

    Comfort Systems USA reported strong second-quarter 2018 results, with revenue up 15.0% to $535.0 million and operating income up 37% to $40.2 million. Net income rose to $32.5 million, or $0.87 per diluted share, versus $18.0 million, or $0.48, a year earlier. Results were helped by a $4.0 million pre-tax gain from settlements with BP over the 2010 Deepwater Horizon claims, which was recorded in other income. Excluding that gain, operating income still grew strongly, driven by North Carolina, Virginia, Arizona and Tennessee operations, and gross margin improved modestly to 20.8% from 20.6%. For the six months, revenue rose 18.2% to $1.00 billion, with about 15.2% from same-store activity and 3.0% from the BCH acquisition. Gross margin slipped to 20.0% from 20.3%, mainly due to underperformance at a New York operation and a California operation. Backlog reached $1.23 billion at June 30, 2018, up 30.9% from a year earlier and 13.8% sequentially, which supports management's expectation for higher revenue and earnings in 2018. Cash generation improved, with operating cash flow of $37.5 million for the first half (versus $21.2 million) and free cash flow of $24.1 million (versus $10.1 million). The balance sheet remains conservative: total debt was $59.0 million, the revolver had $42.0 million drawn, leverage was 0.3x against a 3.00x covenant, and $324.4 million of revolver capacity was available after the April 2018 expansion of the facility to $400 million. The company also repurchased $6.8 million of stock and paid dividends of $0.08 per share in the quarter. Management expects the 2018 effective tax rate to be 22% to 26%, rising to 25% to 30% in 2019.

    Jul 26, 2018
  27. 2018-Q1

    Comfort Systems USA Quarterly Report for Q1 Ended Mar 31, 2018

    Comfort Systems USA (FIX) reported a strong first quarter of 2018, with revenue up 22.2% year over year to $464.9 million, driven by a 6.7% contribution from the April 2017 BCH acquisition and a 15.5% same-store increase. Net income more than doubled to $16.7 million ($0.44 diluted EPS) from $7.5 million ($0.20), though a large part of that improvement reflects a $2.8 million tax benefit from a federal accounting method change, which pushed the effective tax rate down to 11.1%. Gross margin contracted about 80 basis points to 19.2%, but SG&A leverage (15.1% of revenue versus 16.6%) lifted operating margin to 4.1% from 3.1%. Backlog reached a record $1.08 billion, up 25.0% year over year and 13.7% sequentially, with management expecting about 85% of remaining performance obligations to convert to revenue over the next twelve months. Balance sheet strength remains evident: the leverage ratio was 0.4x against a 2.75x covenant, and the company had $241.4 million of credit available under its $325 million facility. Management also reiterated its 2018 outlook for improved revenue and earnings and a full-year effective tax rate of 22% to 27%. The main investor concern is cash flow. Operating cash flow fell to $3.9 million from $10.1 million, and free cash flow turned negative at $(1.4) million versus $5.3 million a year earlier, mainly because receivables grew $28.1 million. Cash declined to $25.2 million, while debt rose to $66.0 million. Quarterly results are seasonally weak, so the cash trend should be judged against the full-year cycle, but the first-quarter working capital build and the tax-driven earnings lift are worth monitoring.

    Apr 26, 2018
  28. 2017-Q3

    Comfort Systems USA Quarterly Report for Q3 Ended Sep 30, 2017

    Comfort Systems USA (FIX) reported a solid third quarter 2017, with revenue up 12.1% year over year to $480.9 million, driven largely by the BCH acquisition (8.0 points of growth) and a 4.1% same-store increase. Nine-month revenue rose 6.8% to $1.33 billion. Gross margin compressed modestly to 21.0% in the quarter (from 21.6%) and 20.5% for the nine months, reflecting backlog amortization from BCH. Operating income rose 7.4% in the quarter to $34.3 million, while nine-month net income was roughly flat at $47.7 million versus $48.0 million, weighed down by a $1.1 million goodwill impairment in Q1 2017 and higher interest and amortization costs. Diluted EPS was $0.59 for the quarter, up from $0.54. Balance sheet and cash flow were shaped by the $100 million BCH acquisition. Total debt rose to $81.7 million from $2.8 million, mostly from a $66.0 million revolver draw, and the leverage ratio was 0.5x against a 3.00x covenant limit. Operating cash flow improved to $65.7 million from $49.8 million, though part of that benefit reflected timing of payables and about $6.0 million in tax payments deferred due to Hurricane Harvey relief. Free cash flow reached $49.6 million versus $33.3 million a year earlier. Backlog stood at $901.2 million, up 25.3% year over year but down 3.9% sequentially. Management expects 2017 revenue above 2016 and profitability similar to 2016, with an effective tax rate guided to 35% to 38%. For investors, the key takeaways are steady organic growth, acquisition-led top-line expansion, and a conservatively levered balance sheet with ample revolver availability ($219.4 million). The main watch points are thinner gross margins, rising receivables, and the sequential backlog decline.

    Oct 26, 2017
  29. 2017-Q2

    Comfort Systems USA Quarterly Report for Q2 Ended Jun 30, 2017

    Comfort Systems USA (FIX) reported solid second-quarter 2017 results, with revenue up 8.9% year over year to $465.4 million, driven largely by the April 2017 acquisition of BCH Holdings. Same-store revenue was roughly flat (down 0.1% in the quarter and down 1.5% for the first six months). Gross margin slipped to 20.6% from 20.9% as BCH backlog amortization weighed on profitability, while SG&A rose 9.1% to $66.6 million, keeping operating income roughly flat at $29.3 million. Diluted EPS for the quarter was $0.48, versus $0.47 a year earlier. For the six months, diluted EPS fell to $0.67 from $0.73, reflect a $1.1 million goodwill impairment on a California reporting unit recorded in Q1 2017 and higher SG&A. The balance sheet and liquidity picture changed meaningfully. Total assets rose to $893.2 million from $708.9 million at year-end 2016, largely from goodwill and intangibles acquired with BCH. Long-term debt increased to $103.5 million from about $2.0 million, mainly from $88.5 million drawn on the $325 million revolving credit facility and $15.8 million of notes to former owners. The company remained in compliance with its covenants, with a leverage ratio of 0.70 against a 3.00x limit. Operating cash flow fell to $21.2 million from $36.4 million, largely because receivables grew by $38.9 million, leaving free cash flow at $10.1 million versus $26.0 million a year earlier. Management reaffirmed expectations for higher 2017 revenue and profitability similar to 2016, and kept its quarterly dividend growing ($0.075 per share).

    Jul 27, 2017
  30. 2017-Q1

    Comfort Systems USA Quarterly Report for Q1 Ended Mar 31, 2017

    Comfort Systems USA (FIX) reported first-quarter 2017 results that were mixed: revenue slipped 1.4% year over year to $380.6 million, while gross margin expanded to 20.0% from 19.0%, supported by better project execution at a New York operation and a Wisconsin operation. However, higher SG&A (up 8.7% to $63.2 million, including $0.8 million of leadership-transition compensation and $0.4 million of acquisition costs for BCH) and a $1.1 million goodwill impairment at the California reporting unit pulled operating income down about 24% to $11.8 million. Net income fell to $7.5 million, or $0.20 per diluted share, from $9.8 million, or $0.26, a year earlier. The balance sheet and liquidity remain strong. The company had no borrowings under its $325 million revolving credit facility at quarter-end, with $286.1 million available, and its leverage ratio was 0.02 against a 3.00x covenant. Cash from operations was $10.1 million, and free cash flow was $5.3 million, down from $9.6 million, mainly due to working capital timing. Shareholders' equity rose to $382.0 million, and the company continued buying back shares and paying dividends ($0.07 per share, up from $0.065). Forward-looking indicators are constructive. Backlog rose 13.1% sequentially to a record-level $863.0 million and was up 11.1% year over year. Management expects 2017 revenue to exceed 2016 levels, helped by the BCH acquisition, and expects profitability similar to 2016. The company also guided to a full-year effective tax rate of 35% to 40%. Investors will want to watch whether the backlog growth converts into revenue and whether SG&A investments pay off.

    Apr 26, 2017
  31. 2016-Q3

    Comfort Systems USA Quarterly Report for Q3 Ended Sep 30, 2016

    Comfort Systems USA (FIX) reported a solid third quarter of 2016, with revenue up 4.4% year over year to $428.8 million and operating income rising 7.0% to $32.0 million. For the first nine months, revenue grew 3.8% to $1.24 billion and net income attributable to the company rose to $48.0 million, up from $36.1 million a year earlier. Part of that growth was acquired: the Shoffner acquisition contributed about 4.7 points of Q3 revenue growth. Same-store revenue actually declined 0.3% in the quarter, mainly because the EAS operation saw less large manufacturing project work. Nine-month gross margin expanded to 20.6% from 19.6%, driven by better project execution in several operations. The balance sheet remains conservative. Total debt was $27.9 million at quarter-end against a $325 million revolving credit facility, leaving $258.5 million of available credit, and the company was in compliance with all covenants. Cash flow was weaker than last year: operating cash flow fell to $49.8 million from $74.6 million, and free cash flow dropped to $33.3 million from $60.3 million, largely because of working capital timing and lower payables benefits. Cash spending also rose with the $58.5 million in acquisitions, and the company continued returning capital through dividends and buybacks. Management expects 2016 revenue and profitability to exceed 2015 levels and anticipates improved activity in 2017. Backlog stood at $719.3 million, up 7.9% year over year, though it fell 0.7% sequentially. Investors should weigh the strong margin and balance-sheet picture against the soft same-store revenue trend and the decline in cash generation.

    Oct 27, 2016
  32. 2016-Q2

    Comfort Systems USA Quarterly Report for Q2 Ended Jun 30, 2016

    Comfort Systems USA (FIX) reported a solid second quarter of 2016, with revenue up 2.6% year over year to $427.5 million and operating income up 15.2% to $28.6 million. Gross margin expanded to 20.9% from 19.7%, driven by improved project execution outside its EAS operation. For the first six months, revenue rose 3.5% to $813.5 million and net income attributable to the company climbed 49% to $27.6 million, with diluted EPS of $0.73 versus $0.49. Results were supported by the Shoffner acquisition, which contributed about 5% of revenue growth, while same-store revenue declined 1.1% on weakness at the EAS operation. The balance sheet remains conservative. Total debt rose to $39.5 million from $11.5 million at year-end, mostly from revolver borrowings used to fund roughly $56 million of cash acquisitions (EAS and Shoffner). The leverage ratio is 0.3x against a 3.00x covenant, and the company reports compliance with all covenants. Free cash flow fell to $26.0 million from $41.8 million, largely due to working capital outflows in payables and billings. Backlog stood at $724.3 million, up 1.7% year over year but down 6.8% sequentially, and management expects 2016 revenue similar to 2015 with profitability exceeding 2015 levels. For investors, the key takeaways are margin improvement and a strong balance sheet offset by softer same-store volumes, a sequential backlog decline, and weaker cash conversion in the first half. The company also continued to return capital through dividends ($0.07 per quarter) and share repurchases.

    Jul 28, 2016
  33. 2016-Q1

    Comfort Systems USA Quarterly Report for Q1 Ended Mar 31, 2016

    Comfort Systems USA, Inc. (FIX) reported revenue of $385.9 million for the first quarter of 2016, an increase of 4.4% compared to the same period in 2015, driven by a combination of organic growth and a recent acquisition. Net income attributable to the company was $9.8 million, or $0.26 per diluted share, a significant improvement from $5.1 million, or $0.13 per diluted share, in the prior year quarter. The company's gross profit margin also improved to 19.0% from 17.5% year-over-year, indicating better project execution and volume leverage. The company's financial position remains strong, supported by a larger revolving credit facility and a consistent history of generating positive free cash flow. The company completed two acquisitions in the first quarter of 2016, including acquiring the remaining noncontrolling interest in Environmental Air Systems and purchasing the ShoffnerKalthoff family of companies, which are expected to contribute to future growth. Management is optimistic about industry conditions, expecting revenue and profitability in 2016 to be similar to or above 2015 levels.

    Apr 27, 2016
  34. 2015-Q3

    Comfort Systems USA Quarterly Report for Q3 Ended Sep 30, 2015

    Comfort Systems USA (FIX) reported a strong third quarter and nine months of 2015. Q3 revenue rose 10.9% to $410.6 million and operating income roughly doubled to $29.9 million (7.3% margin vs. 4.0% a year earlier), driven by gross margin expansion to 21.3% from 18.0%. For the first nine months, revenue grew 13.5% to $1.197 billion, net income attributable to the company rose to $36.1 million from $12.4 million, and diluted EPS reached $0.96 versus $0.33. Much of the margin improvement reflects the absence of 2014 job underperformance at the Southern California operation and better execution at a large Virginia operation, along with improved industrial market conditions. Management expects revenue and profitability to exceed recent levels, with backlog of $666.3 million at quarter-end, up 1.4% year over year. The balance sheet and cash generation also strengthened. Nine-month operating cash flow was $74.6 million, roughly double the prior year, producing free cash flow of $60.3 million. Long-term debt fell to $11.0 million from $39.5 million as the revolver was paid down, and the company had $193.6 million of credit available under its $250 million facility, which runs to October 2019. Retained earnings and total equity increased, and the company continued its dividend and buyback programs. Risks to note include the project-based, fixed-price nature of much of the work, which exposes margins to cost overruns, and the company's reliance on surety bonding for roughly 25% to 35% of its business. Working capital needs remain significant because customers withhold retainage. The company also disclosed a subsequent-event expectation of a $3.0 to $3.5 million project gain in Q4 2015 from approved change orders.

    Oct 29, 2015
  35. 2015-Q2

    Comfort Systems USA Quarterly Report for Q2 Ended Jun 30, 2015

    Comfort Systems USA (FIX) reported strong second-quarter 2015 results, with revenue up 14.8% year over year to $416.6 million and gross margin expanding to 19.7% from 17.1%. Operating income more than doubled to $24.8 million from $10.6 million, and net income attributable to the company rose to $13.4 million, or $0.35 per diluted share, versus $4.4 million, or $0.12, a year earlier. For the first six months, revenue grew 14.9% to $786.1 million and diluted EPS reached $0.49 compared with $0.13. Management attributed most of the margin improvement to better project execution at its Virginia operation and its Environmental Air Systems (EAS) subsidiary, plus recovery at the Southern California operation that underperformed in 2014. Revenue growth was broad-based, with the same-store increase at 13.5% for the quarter. Balance sheet and cash generation also strengthened. Operating cash flow was $50.7 million for the first half, against $13.6 million a year earlier, and free cash flow was $41.8 million versus $5.8 million. Total debt fell to $19.7 million from $40.3 million as the company paid down its revolver, leaving $184.0 million of credit available under a $250.0 million facility that now runs to October 2019. Backlog stood at $712.3 million, up 5.7% year over year but down 0.8% sequentially. The company expects 2015 revenue above recent-year levels and profitability above 2014, though it also flagged reliance on fixed-price contracts, bonding requirements, and a modest sequential decline in backlog as points to monitor. Capital returns continued alongside the growth. The company paid $4.5 million in dividends in the first half, repurchased about 73,000 shares in the quarter, and kept a cumulative repurchase program covering 6.6 million shares. Noncontrolling interests, mainly EAS, took $4.2 million of first-half net income, a reminder that consolidated earnings overstate the portion accruing to shareholders. Overall, the filing presents a company with improving margins, low leverage, and a stronger cash position heading into the seasonally stronger second half.

    Jul 30, 2015
  36. 2015-Q1

    Comfort Systems USA Quarterly Report for Q1 Ended Mar 31, 2015

    Comfort Systems USA (FIX) reported a strong first quarter of 2015, with revenue rising 15.0% year over year to $369.5 million and operating income more than quintupling to $11.2 million from $1.9 million. Gross margin expanded roughly 130 basis points to 17.5%, driven by improved project execution at its EAS operation and the turnaround of a Southern California operation that underperformed in 2014. SG&A grew a more modest 6.6%, so operating margin improved to 3.0% from 0.6%. Net income attributable to Comfort Systems was $5.1 million, or $0.13 per diluted share, versus $0.4 million, or $0.01, a year earlier. Part of the earnings gain was absorbed by a larger noncontrolling interest (EAS) share, which rose to $1.8 million. The balance sheet and cash flow picture also improved. Operating cash flow swung to $20.4 million from an $8.8 million outflow, producing free cash flow of $17.0 million versus a negative $12.4 million in the prior-year quarter. The company reduced revolver borrowings to $36.0 million and ended the quarter with $38.9 million in cash and $164.5 million of credit availability. Leverage stood at 0.51x against a 2.75x covenant ceiling. Backlog was $718.0 million, up 17.3% year over year but down 5.2% sequentially. Management expects 2015 revenue to exceed recent levels and profitability to improve over 2014, while the quarter's seasonally weak Q1 and the sequential backlog decline temper near-term visibility. Key watch items include the sequential backlog decline, the concentration of recent growth in a few operations (EAS, Arkansas, Virginia), ongoing surety market tightness that could constrain bonded work (roughly 25% to 35% of business requires bonds), and the effective tax rate guidance of 35% to 40% for 2015.

    Apr 29, 2015
  37. 2014-Q3

    Comfort Systems USA Quarterly Report for Q3 Ended Sep 30, 2014

    Comfort Systems USA (FIX) reported a mixed third quarter 2014. Revenue rose 5.8% year over year to $370.1 million, driven mainly by the Northern Texas acquisition, while same-store revenue grew only 0.7%. Gross margin contracted to 18.0% from 19.1%, reflecting a $2.2 million writedown on a loss-making Southern California project and weaker Arizona volume. Operating income fell 16.6% to $14.8 million, and net income attributable to Comfort Systems dropped 33% to $7.6 million, or $0.20 per diluted share, versus $0.30 a year earlier. Noncontrolling interest income (mainly the EAS subsidiary) rose sharply, which further reduced the share of profit attributable to shareholders. The balance sheet and cash flow picture is more nuanced. For the nine months, operating cash flow improved to $37.5 million from $23.8 million, and free cash flow nearly doubled to $23.3 million. However, the company spent $54.2 million on acquisitions and drew $42.0 million on its revolver to fund them, so net cash fell by $8.2 million year to date. Total debt is now $42.0 million, versus none at year-end 2013. Liquidity remains strong, with the revolver upsized to $250 million in July 2014 and roughly $129.5 million of credit available, and the company says it is in compliance with all covenants (leverage ratio of 0.68 against a 2.75 maximum). Management's outlook is cautious: nonresidential construction activity is expected to stay at recent low levels through early 2015, backlog is $656.8 million (up 15% year over year but down 2.5% sequentially), and the company expects to be solidly profitable in 2014 but with lower net profit than 2013. The main investor concerns are margin pressure from project execution issues, the rising share of earnings going to noncontrolling interests, and the shift toward debt-funded acquisitions after a long period of a debt-free balance sheet.

    Oct 29, 2014
  38. 2014-Q2

    Comfort Systems USA Quarterly Report for Q2 Ended Jun 30, 2014

    Comfort Systems USA (FIX) reported a mixed second quarter of 2014 with solid top-line growth but compressed profitability. Revenue rose 3.3% to $362.8 million in Q2 2014 (up 1.1% to $684.2 million for the six months), driven by two acquisitions, including a northern Texas operation acquired in May 2014. However, gross margin held flat at 17.1% for the quarter while SG&A grew 10.7% to $50.6 million, pushing operating income down 26% to $10.6 million. Net income attributable to Comfort Systems fell 43% to $4.4 million ($0.12 per diluted share), with a growing share of earnings going to the noncontrolling interest in the EAS subsidiary ($1.9 million, up from $0.6 million). The company also recorded a $0.7 million goodwill impairment at its Southern California operation, which underperformed on several jobs. Balance sheet and cash flow shifted toward leverage to fund growth. Cash fell modestly to $49.8 million, while the revolving credit facility balance rose to $52.0 million, with $50.6 million in letters of credit outstanding. Acquisition spending of roughly $51 million in the first half drove investing outflows of $59.2 million, but operating cash flow improved to $13.6 million from negative $3.7 million a year earlier, and free cash flow turned positive at $5.8 million. Backlog grew 14.1% year over year to $673.7 million, partly from acquisitions. Management expects revenue to remain at recent levels and full-year 2014 profitability to be solid but below 2013. Leverage remains low (0.77x against a 3.00x covenant), and the company amended its credit facility on July 22, 2014 to increase capacity to $250 million. For investors, the key questions are whether the margin pressure from SG&A growth and the Southern California weakness is temporary and whether acquisitions can translate into higher profitability. Backlog growth and a stronger balance sheet provide some support, but the sharp decline in earnings and rising reliance on the revolver warrant monitoring.

    Jul 30, 2014
  39. 2014-Q1

    Comfort Systems USA Quarterly Report for Q1 Ended Mar 31, 2014

    Comfort Systems USA (FIX) reported a soft first quarter of 2014 with revenue of $321.4 million, down 1.4% from $325.9 million a year earlier, driven by declines in the education and healthcare sectors that were partly offset by growth in office, multi-family and manufacturing markets. Gross margin improved to 16.2% from 15.8%, helped by better risk-management claims experience and a stronger EAS operation, but SG&A rose 8.3% to $50.4 million on investment in service growth and IT, so operating income fell 63% to $1.9 million from $5.1 million. Net income attributable to Comfort Systems fell to $0.4 million, or $0.01 per diluted share, from $2.5 million, or $0.07, as noncontrolling interests absorbed a larger share of earnings. Note that the first quarter is seasonally the weakest for HVAC demand, so these results are typical in direction but still reflect margin pressure from cost growth. The balance sheet remains conservative. Cash fell to $40.7 million from $52.1 million, and the company drew $7.0 million on its $175 million revolving credit facility, which carries a leverage ratio of just 0.14 against a 3.00 covenant. Operating cash flow was negative at $8.8 million, the result of working-capital timing and accrued liability payments, and free cash flow was negative $12.4 million. Backlog ended the quarter at $612.3 million, up 1.4% sequentially but down 3.0% year over year, and management expects 2014 revenue to stay near recent levels with profitability comparable to 2013. A subsequent event is the pending acquisition of Dyna Ten Corporation for $37.5 million in cash, expected to close around May 1, 2014 and to add roughly $70 to $80 million in annualized revenue. It will be funded from the revolver and cash on hand, which would materially increase borrowings and is the key item for investors to monitor.

    Apr 30, 2014
  40. 2013-Q3

    Comfort Systems USA Quarterly Report for Q3 Ended Sep 30, 2013

    Comfort Systems USA (FIX) reported a solid third quarter and nine-month 2013 period, with revenue of $350.0 million for Q3 (up 4.4% year over year) and $1,026.9 million for the first nine months (up 1.1%). The margin story is the key takeaway: gross margin expanded to 19.1% in Q3 from 16.6% a year earlier, and to 17.4% for the nine months from 15.0%. Operating income more than tripled for the nine months to $37.2 million from $14.2 million, and net income attributable to Comfort Systems rose to $21.7 million, or $0.58 diluted EPS, from $9.1 million, or $0.24. Part of the Q3 improvement reflects a roughly $2.5 million gross profit benefit from correcting prior-period accounting errors (about $1.3 million after tax for the nine months), which management says were not material. Excluding that adjustment, Q3 gross margin would have been 18.6%. The balance sheet remains conservative. Cash rose to $45.3 million, total debt was only $7.0 million (of which $5.0 million was drawn on a $175 million revolver that was upsized and extended to July 2018), and stockholders' equity reached $306.2 million. Operating cash flow improved to $23.8 million for the nine months from $3.4 million, and free cash flow was $11.9 million versus a $5.0 million outflow a year earlier. Backlog, however, declined to $570.9 million, down 8.3% year over year, which management attributes to lower bookings in California, Virginia and Florida. Management expects revenue to remain at recent lower levels through 2013, with profitability improving versus 2012, and anticipates 2014 revenue and profitability comparable to 2013. For investors, the central questions are whether margin gains are sustainable given falling backlog and an industry expected to stay flat, and how much of the earnings improvement is durable versus driven by bonus accrual timing and one-time items. The company's strong liquidity and modest leverage (leverage ratio of 0.10) provide a meaningful cushion.

    Oct 30, 2013
  41. 2013-Q2

    Comfort Systems USA Quarterly Report for Q2 Ended Jun 30, 2013

    Comfort Systems USA (FIX) reported a improved second quarter and first half of 2013 on a largely flat top line. Q2 2013 revenue was $351.1 million, down 0.6% year over year, while gross profit rose 10.9% to $60.0 million and gross margin expanded from 15.3% to 17.1%. Operating income nearly doubled to $14.4 million, and net income attributable to Comfort Systems was $7.8 million, or $0.21 per diluted share, versus $4.5 million, or $0.12, a year earlier. For the first six months, revenue was $676.9 million (down 0.5%), gross margin rose to 16.5% from 14.3%, and net income attributable to the company reached $10.3 million, or $0.28 per diluted share. Management attributed much of the margin gain to better results at its EAS operation and to the absence of 2012 underperformance at its Maryland operations, along with lower bad debt expense. The balance sheet remains conservative. The company had no borrowings under its revolving credit facility at June 30, 2013, and the facility was amended on June 25, 2013 to increase capacity from $125.0 million to $175.0 million and extend maturity to July 2018. Cash fell to $23.3 million, largely because operating cash flow was negative $3.7 million for the first half, though Q2 operating cash flow was positive at $6.7 million. Total debt was only $5.4 million, and the leverage ratio was 0.09 against a covenant maximum of 3.00. Backlog declined to $590.3 million, down 4.4% year over year, and management expects revenue to stay at subdued levels for the rest of 2013 while profitability improves modestly versus 2012. The main risks flagged in the filing include continued weakness in nonresidential construction, strong price competition, surety market constraints that could limit bonding capacity for the 25% to 35% of business that requires bonds, and an effective tax rate that is elevated and volatile, with full-year 2013 guidance of 38% to 42%.

    Jul 31, 2013
  42. 2013-Q1

    Comfort Systems USA Quarterly Report for Q1 Ended Mar 31, 2013

    Comfort Systems USA (FIX) reported a modest first quarter 2013 with revenue of $325.9 million, essentially flat (down 0.3%) versus $326.9 million a year earlier. The top-line stability masked a meaningful improvement in profitability: gross profit rose 19.9% to $51.5 million, lifting gross margin to 15.8% from 13.1%. Management attributed the gain mainly to improved performance at its EAS subsidiary (about $2.5 million), the absence of a prior-year Maryland underperformance (about $1.1 million), and a roughly $1.4 million gross profit recovery from a settled data center claim. Operating income swung to $5.1 million from a $3.0 million loss, and net income attributable to the company was $2.5 million, or $0.07 per diluted share, versus a $1.0 million loss a year earlier. The quarter's effective tax rate of 42.6% was elevated, and management expects an annual rate between 35% and 45%. The balance sheet and cash flow profile remain conservative. Cash fell to $25.4 million from $40.8 million at year-end, and operating cash flow was still negative at $10.4 million, although that was an improvement from negative $19.8 million a year earlier, driven by higher receivables and billings. Debt is minimal: the revolving credit facility is undrawn, total debt is $7.4 million, and the leverage ratio is 0.14. Backlog rose 2.1% sequentially to $631.1 million, largely due to the EAS operation. Management expects 2013 profitability similar to 2012 levels, with activity in the industry remaining subdued and price competition persisting.

    May 1, 2013
  43. 2012-Q3

    Comfort Systems USA Quarterly Report for Q3 Ended Sep 30, 2012

    Comfort Systems USA (FIX) reported a solid third quarter of 2012 with revenue of $335.5 million, up 2.3% year over year, and gross margin expanding to 16.6% from 15.0%. Operating income was $9.7 million versus a $47.5 million loss in Q3 2011, which included a $55.1 million goodwill impairment, so the comparison is flattered by that one-time charge. Nine-month revenue rose 10.6% to $1,019.7 million, helped by the November 2011 EAS acquisition and a large ColonialWebb data center project, though same-store healthcare revenue declined. Management characterized the underlying nonresidential construction environment as weak and expects current profitability levels to persist through 2013 unless conditions improve. Balance sheet and cash flow were broadly stable but tighter than a year earlier. Cash fell to $35.7 million from $51.2 million at year-end 2011, mainly because $12.7 million was spent on acquisitions and the company drew $14.0 million on its revolver. Nine-month operating cash flow was positive at $3.4 million after a $22.0 million outflow in the prior-year period, and free cash flow was negative $5.0 million year to date, though it was strongly positive in Q3 at $13.8 million. Leverage remains modest, with a leverage ratio of 0.52 against a 3.00 covenant, and the company remains in compliance with all financial covenants. Key risks for investors include a tax rate that rose sharply to 47.5% for the nine months, persistent price competition, reliance on surety bonding (25% to 35% of business requires bonds), and an unresolved asbestos-related gasket claim from Ferguson Enterprises whose potential liability cannot yet be estimated. Backlog of $623.1 million was roughly flat year over year, with same-store backlog down 10.3%.

    Nov 1, 2012
  44. 2012-Q2

    Comfort Systems USA Quarterly Report for Q2 Ended Jun 30, 2012

    Comfort Systems USA (FIX) reported second-quarter 2012 results that show a company growing revenue while margins remain thin and the outlook remains cautious. Revenue rose 13.6% year over year to $354.8 million, driven by a 6.0% same-store increase (largely a large data center project at ColonialWebb in the manufacturing sector) and a 7.6% contribution from the November 2011 acquisition of EAS. Gross margin improved modestly to 15.4% from 15.2%, and operating income rose to $7.7 million from $5.6 million. For the first six months, the company swung to an operating profit of $4.3 million from a $2.7 million operating loss in 2011, with net income attributable to the company of $3.4 million versus a $2.0 million loss a year earlier. Quarterly diluted EPS was $0.12 compared with $0.08. Cash generation was weak in the first half. Operating cash flow was negative $13.0 million year to date, and free cash flow was negative $18.8 million, compared with negative $27.0 million a year earlier. The second quarter was positive, with free cash flow of $2.6 million. Cash fell to $28.8 million, and the company drew $18.0 million on its revolver to fund $12.2 million of acquisitions. Total debt rose to $29.3 million, but leverage remains low at a 0.49 ratio against a 3.00 covenant limit, and the company says it is in compliance with all covenants. Backlog was $617.7 million, roughly flat year over year, and management expects industry activity to remain flat over the next twelve months, with continued price competition and a focus on execution and cost control. Investors should weigh several risk items. The effective tax rate for the six months was 60.0%, which management attributes to higher tax reserves, and the company estimates a full-year 2012 rate of 38% to 48%. The company also disclosed an unquantified asbestos-related contingency tied to mislabeled gaskets purchased from a supplier, and a job write-down on an accelerated project in Q1 that exceeded $3 million in additional cost. Surety market tightening could also reduce bonding capacity for the roughly 25% to 35% of business that requires bonds.

    Aug 1, 2012
  45. 2012-Q1

    Comfort Systems USA Quarterly Report for Q1 Ended Mar 31, 2012

    Comfort Systems USA, Inc. (FIX) reported its first quarter 2012 financial results, indicating a revenue increase of 16.8% to $329.4 million compared to the prior year period. This growth was driven by a combination of same-store revenue increases and the acquisition of Environmental Air Systems (EAS) in late 2011. Despite the revenue growth, the company experienced a net loss attributable to Comfort Systems USA, Inc. of $1.0 million for the quarter, a slight improvement from a net loss of $5.2 million in the first quarter of 2011. This loss was influenced by factors such as increased selling, general, and administrative expenses and a job write-down on a project. The company maintains a solid backlog of $622.0 million, though it saw a slight sequential decrease. Management is focusing on execution, cost control, and efficient project performance to navigate continued weakness in the nonresidential construction sector.

    May 2, 2012
  46. 2011-Q3

    Comfort Systems USA Quarterly Report for Q3 Ended Sep 30, 2011

    Comfort Systems USA, Inc. reported a net loss of $36.6 million for the third quarter of 2011, a significant drop from a net income of $5.4 million in the same period of the prior year. This decline was largely driven by a substantial non-cash goodwill impairment charge of $55.1 million recognized during the quarter. Revenue showed a modest increase of 6.7% to $328.1 million, aided by the acquisition of ColonialWebb and organic growth, primarily in the manufacturing sector. However, gross profit saw a slight decrease due to job write-downs and lower profitability in certain operations, coupled with a challenging pricing environment. The company's financial position remains stable, with no outstanding borrowings on its $125 million revolving credit facility as of September 30, 2011. Despite the net loss, the company maintained positive operating cash flow for the quarter and continues to emphasize cost control and efficient execution. The outlook for the nonresidential construction sector remains cautious, with expectations of flat activity levels for the next twelve months, but Comfort Systems anticipates continued profitability through 2012.

    Nov 7, 2011
  47. 2011-Q2

    Comfort Systems USA Quarterly Report for Q2 Ended Jun 30, 2011

    Comfort Systems USA, Inc. reported its second quarter 2011 financial results, showing a significant increase in revenue driven by both organic growth and the acquisition of ColonialWebb. While revenue is up, gross profit saw a slight decline as a percentage of revenue due to pricing pressures and the close-out of profitable jobs in the prior year. Selling, General, and Administrative (SG&A) expenses also increased, but on a same-store basis excluding amortization, they decreased, indicating effective cost management. The company experienced a net loss for the six-month period ending June 30, 2011, primarily due to increases in SG&A and a prior year gain on discontinued operations, but a net income was reported for the second quarter. Financially, the company maintains a strong liquidity position with no outstanding borrowings on its revolving credit facility and substantial cash balances. However, cash flow from operations turned negative for both the quarter and the year-to-date period, largely due to increased investments in working capital. The company expects industry activity to remain flat over the next twelve months and is focusing on execution, cost control, and efficient project performance to maintain profitability. Investors should note the ongoing pricing competition and potential impacts from surety market conditions.

    Aug 2, 2011
  48. 2011-Q1

    Comfort Systems USA Quarterly Report for Q1 Ended Mar 31, 2011

    Comfort Systems USA, Inc. (FIX) reported a net loss of $5.2 million for the first quarter ended March 31, 2011, a significant shift from a net income of $1.9 million in the prior year's comparable quarter. This loss was driven by a substantial increase in the cost of services, which outpaced revenue growth and led to a decline in gross profit margins from 16.7% to 12.1%. While revenues saw a notable 19.3% increase to $282.1 million, largely due to the acquisition of ColonialWebb and a modest same-store increase, the company struggled with project write-downs and lower profitability in certain operations. Despite the quarterly loss, the company maintained a strong liquidity position, with no outstanding borrowings under its $125 million revolving credit facility and substantial uncommitted cash balances. The company's backlog remains solid, indicating potential for future revenue. However, management anticipates continued price competition and expects flat industry activity levels for the next twelve months, emphasizing a focus on execution, cost control, and efficient project management for the remainder of 2011.

    May 3, 2011
  49. 2010-Q3

    Comfort Systems USA Quarterly Report for Q3 Ended Sep 30, 2010

    Comfort Systems USA (FIX) reported a sharply weaker third quarter and nine months of 2010 as nonresidential construction activity remained soft. Q3 2010 revenue rose 5.5% to $307.6 million, but this growth was entirely acquisition-driven (+16.3%) while same-store revenue fell 10.8%. Gross margin compressed from 19.7% to 16.4%, pushing operating income down 46% to $8.5 million and net income down 44% to $5.4 million ($0.14 diluted EPS vs. $0.25 a year earlier). For the nine months, revenue fell 9.0% to $793.7 million, operating income dropped 71% to $12.9 million (including a $4.4 million goodwill impairment in Delaware), and operating cash flow turned negative at -$14.5 million, leaving free cash flow at -$10.3 million versus +$38.8 million in the prior-year period. The balance sheet remains conservative but has shifted. Cash fell to $44.7 million from $127.9 million at year-end 2009, largely due to the July 2010 ColonialWebb acquisition (about $110 million total consideration, with $49.7 million of goodwill) and tuck-in deals. Total debt rose to $31.3 million, mainly subordinated notes to former owners, and the company entered a new $125 million senior credit facility in July 2010 with no borrowings outstanding and $84.4 million of availability. Management reports covenant compliance (leverage ratio 0.45 vs. a 2.50 limit). Stockholders' equity was roughly flat at $307.7 million. Management's outlook is cautious: backlog of $638.5 million was up 15% year over year (though same-store backlog was down 6.3%), price competition remains intense, and management expects activity to decline over the next twelve months, particularly in new construction. Management still anticipates a profitable fourth quarter and continued profitability in 2011, with the focus on cost control and execution.

    Nov 3, 2010
  50. 2010-Q2

    Comfort Systems USA Quarterly Report for Q2 Ended Jun 30, 2010

    Comfort Systems USA, Inc. (FIX) reported a significant decline in revenue and net income for the six months ended June 30, 2010, compared to the same period in the prior year. Revenue decreased by 16.3% to $486.1 million, primarily driven by reduced activity in the nonresidential construction market, particularly in the education and multi-family sectors. This revenue decline, coupled with specific job underperformance and write-downs, led to a substantial drop in gross profit margin from 19.5% to 16.8%. The company also recorded a $4.4 million goodwill impairment charge related to its Delaware operations. Despite the challenging revenue environment, the company has managed its selling, general, and administrative expenses effectively, which decreased by 13.5% year-over-year, though they increased as a percentage of revenue due to the lower sales base. Comfort Systems USA's financial position remains relatively stable, characterized by zero outstanding borrowings under its credit facility and a strong cash position. The company's liquidity is supported by positive free cash flow generation over the long term, although it experienced negative free cash flow for the first six months of 2010, a shift from the prior year, attributed mainly to lower profitability. The company's outlook suggests continued profitability but at lower levels than 2009 due to expected industry weakness.

    Aug 3, 2010