10-QPeriod: Q1 FY2013

COMFORT SYSTEMS USA INC Quarterly Report for Q1 Ended Mar 31, 2013

Filed May 1, 2013For Securities:FIX

Summary

Comfort Systems USA Inc. (FIX) filed its quarterly report for the period ending March 30, 2013. The company disclosed that it is involved in routine legal proceedings arising in the normal course of business, for which it has accrued estimated losses. While management currently believes these matters will not materially impact financial results, they are subject to inherent uncertainties. The company's stock repurchase program, initiated in 2007, has been extended over time. As of March 31, 2013, Comfort Systems USA had repurchased a cumulative total of 5.9 million shares under this program, with a remaining authorization to purchase approximately 0.7 million shares. During the quarter, the company repurchased a small number of shares in the open market and also had shares withheld for tax purposes related to restricted stock and options, though no shares were withheld for tax obligations during this specific quarter.

Financial Highlights

51 data points
Beta

Revenue

$325.89M

15.8% Gross Margin

Net Income

$2.53M

0.8% Net Margin

EPS (Diluted)

$0.07

Total Assets

$583.61M

Cash & Equivalents

$25.43M

Free Cash Flow

-$13.56M

Financial Statements
Beta
Revenue$325.89M
Cost of Revenue$274.42M
Gross Profit$51.47M
SG&A Expenses$46.52M
Operating Income$5.09M
Interest Expense$338K
Net Income$2.53M
EPS (Basic)$0.07
EPS (Diluted)$0.07
Shares Outstanding (Basic)37.07M
Shares Outstanding (Diluted)37.33M

Key Highlights

  • 1The company is involved in ongoing legal proceedings, but management believes they will not have a material adverse impact on financial condition or results.
  • 2Comfort Systems USA has an active stock repurchase program, demonstrating a commitment to returning value to shareholders.
  • 3As of March 31, 2013, 5.9 million shares have been cumulatively repurchased since the program's inception.
  • 4Approximately 0.7 million shares may still be repurchased under the current authorization.
  • 5Share repurchases in the open market during the quarter were minimal (11,700 shares).
  • 6No shares were withheld for tax purposes related to restricted stock awards or option exercises during the three months ended March 31, 2013.

Frequently Asked Questions

Comfort Systems USA is subject to claims and lawsuits arising from its normal business operations. The company has made accruals for probable losses and legal fees associated with these matters. Management currently believes that the resolution of these claims, individually or in aggregate, will not materially affect the company's operating results or financial condition, although inherent uncertainties exist.

The company has an ongoing stock repurchase program originally approved in March 2007. This program has been extended, and as of March 31, 2013, Comfort Systems USA had repurchased a total of 5.9 million shares at an average price of $10.93 per share. The program allows for the repurchase of up to 6.6 million shares in total, with approximately 697,164 shares remaining under the authorization as of March 31, 2013.

Yes, the company repurchased a small number of shares, specifically 11,700 shares, in the open market during the quarter ended March 31, 2013, at an average price of $12.41 per share.

Under its restricted share plan, employees can elect to have company shares withheld to cover tax obligations related to the vesting of restricted stock awards and the exercise of options. However, during the three months ended March 31, 2013, no shares were withheld for these tax purposes.