10-QPeriod: Q1 FY2009

COMFORT SYSTEMS USA INC Quarterly Report for Q1 Ended Mar 31, 2009

Filed April 30, 2009For Securities:FIX

Summary

Comfort Systems USA Inc. (FIX) reported on its 10-Q filing for the quarter ending March 31, 2009, primarily detailing ongoing legal proceedings and its share repurchase program. The company states that while subject to claims and lawsuits, it believes any resulting liability will not materially impact its financial condition or operating results, supported by insurance and accruals. The focus for investors lies in the active share repurchase program, which has been extended and expanded, indicating management's confidence or a strategy to return capital to shareholders. During the first quarter of 2009, the company repurchased 203,200 shares at an average price of $9.57 per share, bringing the cumulative total to 3.4 million shares repurchased since the program's inception. The repurchase program, originally approved in March 2007, has seen several extensions, with a total of 4.4 million shares authorized for repurchase. The company also utilized its ability to withhold shares for tax purposes, repurchasing an additional 3,490 shares for this specific reason.

Key Highlights

  • 1Comfort Systems USA Inc. asserts that current legal proceedings, though normal for business, are not expected to have a material adverse effect on the company's financial condition or operating results, based on insurance coverage and recorded provisions.
  • 2The company's Board of Directors has approved extensions and expansions of its share repurchase program, authorizing up to 4.4 million shares for buybacks since its inception in March 2007.
  • 3In Q1 2009, Comfort Systems USA Inc. repurchased 203,200 shares of its common stock at an average price of $9.57 per share.
  • 4As of March 31, 2009, a cumulative total of 3.4 million shares had been repurchased under the program.
  • 5The share repurchase program has remaining authorization for up to 995,500 shares to be purchased.
  • 6The company also repurchased 3,490 shares to satisfy tax withholding obligations related to restricted stock awards and option exercises during Q1 2009.

Frequently Asked Questions

Comfort Systems USA Inc. states that it is involved in claims and lawsuits arising in the normal course of business. However, the company maintains insurance and has recorded accruals for probable losses. Management believes that any liability from these matters, individually or in aggregate, will not materially affect the company's operating results or financial condition.

The company's Board of Directors has approved a significant share repurchase program, which has been extended multiple times. As of March 31, 2009, the program's authorization was expanded to cover up to 4.4 million shares since its inception in March 2007. The company repurchased 203,200 shares in the first quarter of 2009 and has 995,500 shares remaining available for repurchase under the program.

In the three months ended March 31, 2009, Comfort Systems USA Inc. repurchased 203,200 shares of its common stock at an average price of $9.57 per share.

Yes, the company also repurchased 3,490 shares during the first quarter of 2009 to satisfy minimum statutory tax withholding obligations arising from the vesting of restricted stock awards and the exercise of options. These shares were withheld by the company to remit to the appropriate taxing authorities.