10-QPeriod: Q3 FY2012

COMFORT SYSTEMS USA INC Quarterly Report for Q3 Ended Sep 30, 2012

Filed November 1, 2012For Securities:FIX

Summary

Comfort Systems USA Inc. (FIX) filed its quarterly report for the period ending September 29, 2012, on October 31, 2012. The filing highlights ongoing legal proceedings, which the company believes will not have a material adverse impact, but notes inherent uncertainties. Investors should also be aware of the risk factors previously disclosed in their 2011 10-K, as no new material risks were detailed in this filing. A key area of activity for investors to note is the company's continued stock repurchase program. Over the nine months ending September 30, 2012, Comfort Systems USA Inc. repurchased 0.1 million shares, and as of September 30, 2012, a cumulative total of 5.8 million shares had been repurchased since the program's inception in 2007. The company also notes a mechanism for share withholding to satisfy tax obligations on restricted stock awards and options, though no shares were repurchased under this specific provision during the third quarter of 2012.

Financial Highlights

53 data points
Beta

Revenue

$335.24M

16.6% Gross Margin

Net Income

$5.67M

1.7% Net Margin

EPS (Diluted)

$0.15

Total Assets

$591.73M

Cash & Equivalents

$35.66M

Free Cash Flow

$13.64M

Financial Statements
Beta
Revenue$335.24M
Cost of Revenue$279.72M
Gross Profit$55.52M
SG&A Expenses$45.85M
Operating Income$9.77M
Interest Expense$406K
Net Income$5.67M
EPS (Basic)$0.15
EPS (Diluted)$0.15
Shares Outstanding (Basic)37.16M
Shares Outstanding (Diluted)37.33M

Key Highlights

  • 1The company is involved in legal proceedings, but management believes these will not materially impact financial condition or operating results.
  • 2No new material risk factors were disclosed beyond those previously reported in the 2011 10-K.
  • 3Comfort Systems USA Inc. has an ongoing stock repurchase program, having bought back 0.1 million shares in the first nine months of 2012.
  • 4Since 2007, the company has repurchased a total of 5.8 million shares under its stock repurchase program.
  • 5During the third quarter of 2012, the company repurchased 48,695 shares of common stock.
  • 6The average price paid for shares repurchased in the third quarter of 2012 was approximately $10.51.
  • 7No shares were repurchased under the employee tax withholding plan during the three months ended September 30, 2012.

Frequently Asked Questions

The company is subject to claims and lawsuits in the normal course of business. While they have accrued for probable losses and carry insurance, management currently believes that the resolution of these matters, individually or in aggregate, will not have a material adverse impact on the company's financial condition or operating results, though inherent uncertainties exist.

This 10-Q filing indicates that investors should continue to consider the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2011. No new material risks were detailed in this quarterly report.

The company has an active stock repurchase program. In the nine months ending September 30, 2012, they repurchased 0.1 million shares. As of September 30, 2012, 5.8 million shares had been repurchased since the program's inception in 2007. During the third quarter of 2012 specifically, 48,695 shares were repurchased at an average price of $10.51 per share.

Employees can elect to have the company withhold shares to cover tax withholding obligations on restricted stock awards and option exercises. While this is a mechanism for share repurchase, Comfort Systems USA Inc. did not withhold any shares for this purpose during the three months ended September 30, 2012.