10-QPeriod: Q2 FY2008

COMFORT SYSTEMS USA INC Quarterly Report for Q2 Ended Jun 30, 2008

Filed July 31, 2008For Securities:FIX

Summary

Comfort Systems USA Inc. (FIX) filed its quarterly report on July 31, 2008, detailing its "Other Information" for the period ending June 30, 2008. The company addressed ongoing legal proceedings, stating that while subject to claims and lawsuits in the normal course of business, they are not expected to materially impact financial condition or operating results, with accruals made for probable losses. Investors would be interested in the company's stock repurchase program. During the second quarter of 2008 (April 1 - June 30), Comfort Systems USA repurchased a total of 438,760 shares of its common stock at an average price of $13.56 per share, as part of its publicly announced plans. Additionally, the company utilized share withholding to cover tax obligations on equity awards, repurchasing 34,385 shares for this purpose at an average price of $13.58 during the same period. The company also reported on its annual stockholder meeting held on May 16, 2008, where all incumbent directors were re-elected and key proposals were ratified.

Key Highlights

  • 1The company is subject to routine legal proceedings but believes they will not have a material impact on financial condition or results of operations.
  • 2Comfort Systems USA actively repurchased shares in the second quarter of 2008, buying back 438,760 shares under its approved stock repurchase program.
  • 3The average price paid for shares repurchased under the program during Q2 2008 was $13.56.
  • 4The company also withheld 34,385 shares to cover employee tax obligations related to equity awards during the quarter.
  • 5The annual stockholder meeting re-elected all incumbent directors and ratified the company's independent auditors, Ernst & Young LLP.
  • 6Key proposals regarding equity compensation plans for non-employee directors and senior management were approved by shareholders.

Frequently Asked Questions

Comfort Systems USA Inc. stated that while they are involved in claims and lawsuits arising in the normal course of business, they have made provisions for probable losses. They believe that the ultimate liability from these matters, individually and in aggregate, will not materially affect their operating results or financial condition.

During the period from April 1 to June 30, 2008, Comfort Systems USA Inc. repurchased a total of 438,760 shares of its common stock under its publicly announced stock repurchase program. The average price paid for these shares was $13.56 per share.

Yes, the company also withheld 34,385 shares of common stock during the second quarter of 2008 to satisfy minimum statutory tax withholding obligations arising from the vesting of restricted stock awards and the exercise of options. These shares were repurchased at an average price of $13.58 per share.

At the annual stockholder meeting held on May 16, 2008, all incumbent directors were elected. Additionally, shareholders ratified the appointment of Ernst & Young LLP as the company's independent auditors for 2007 and approved the company's Amended and Restated 2006 Equity Compensation Plan for Non-employee Directors and the 2008 Senior Management Annual Performance Plan.