10-QPeriod: Q2 FY2012

COMFORT SYSTEMS USA INC Quarterly Report for Q2 Ended Jun 30, 2012

Filed August 1, 2012For Securities:FIX

Summary

Comfort Systems USA Inc. (FIX) filed its quarterly report for the period ending June 29, 2012. The company is currently involved in legal proceedings and notes that while they believe these will not materially impact their financial condition, such matters are subject to inherent uncertainties. Investors should also review the risk factors previously disclosed in the 2011 10-K, as potential future risks not currently known could adversely affect the business. The company also provided an update on its stock repurchase program. As of June 30, 2012, the Board had approved the repurchase of up to 6.6 million shares. During the first six months of 2012, the company repurchased 0.1 million shares, and since the program's inception, a cumulative total of 5.7 million shares have been bought back. Additionally, the company withheld shares to satisfy tax withholding obligations on restricted stock awards and option exercises, with 50,625 shares withheld during the quarter ended June 30, 2012.

Financial Highlights

53 data points
Beta

Revenue

$353.17M

15.3% Gross Margin

Net Income

$4.47M

1.3% Net Margin

EPS (Diluted)

$0.12

Total Assets

$604.62M

Cash & Equivalents

$28.81M

Free Cash Flow

$2.30M

Financial Statements
Beta
Revenue$353.17M
Cost of Revenue$299.08M
Gross Profit$54.10M
SG&A Expenses$46.88M
Operating Income$7.44M
Interest Expense$428K
Net Income$4.47M
EPS (Basic)$0.12
EPS (Diluted)$0.12
Shares Outstanding (Basic)37.17M
Shares Outstanding (Diluted)37.25M

Key Highlights

  • 1The company is subject to legal proceedings but believes they will not have a material adverse impact on financial condition.
  • 2Investors are advised to review previously disclosed risk factors from the 2011 10-K.
  • 3Comfort Systems USA Inc. has an active stock repurchase program, with Board approval extended to acquire up to 6.6 million shares.
  • 4The company repurchased 0.1 million shares in the first six months of 2012.
  • 5A cumulative total of 5.7 million shares have been repurchased since the program's inception in 2007.
  • 6During the second quarter of 2012, 95,834 shares were repurchased under the publicly announced program.
  • 7The company withheld 50,625 shares to cover tax obligations on restricted stock awards and option exercises during the quarter ended June 30, 2012.

Frequently Asked Questions

Comfort Systems USA Inc. is subject to claims and lawsuits arising in the normal course of business. While they have made accruals for probable losses, management currently believes that the resolution of these matters will not have a material adverse impact on their operating results or financial condition. However, the company acknowledges the inherent uncertainties involved.

Yes, the company has an ongoing stock repurchase program. The Board has approved extensions to acquire up to 6.6 million shares. In the first six months of 2012, 0.1 million shares were repurchased, and cumulatively, 5.7 million shares have been bought back since the program began in 2007.

This filing does not introduce new risk factors. Instead, it directs investors to carefully consider the risk factors previously discussed in Part 1, 'Item 1A. Company Risk Factors' of their Annual Report on Form 10-K for the year ended December 31, 2011. The company also notes that additional risks not currently known or deemed immaterial could potentially impact the business.

During the quarter ended June 30, 2012, the company repurchased 95,834 shares of its common stock at an average price of $9.51 per share. Additionally, 50,625 shares were withheld to satisfy tax withholding obligations related to restricted stock awards and option exercises, at an average price of $10.73 per share.