10-QPeriod: Q3 FY2013

COMFORT SYSTEMS USA INC Quarterly Report for Q3 Ended Sep 30, 2013

Filed October 30, 2013For Securities:FIX

Summary

Comfort Systems USA Inc. (FIX) filed its quarterly report for the period ending September 29, 2013, on October 29, 2013. The filing primarily addresses legal proceedings and details the company's stock repurchase program. Management believes that ongoing claims and lawsuits, while inherent to the normal course of business, will not materially impact the company's financial condition, cash flows, or operating results, supported by existing insurance coverages and provided accruals. Of significant note for investors is the company's active stock repurchase program. Comfort Systems USA Inc. has a long-standing authorization to repurchase up to 6.6 million shares, with a considerable portion already bought back. During the nine months ended September 30, 2013, the company repurchased approximately 0.1 million shares. The filing provides details on share repurchases during the third quarter of 2013, including the number of shares bought and the average prices paid, indicating ongoing capital allocation towards shareholder returns.

Financial Highlights

52 data points
Beta

Revenue

$349.99M

19.1% Gross Margin

Net Income

$11.38M

3.3% Net Margin

EPS (Diluted)

$0.30

Total Assets

$594.45M

Cash & Equivalents

$45.30M

Free Cash Flow

$22.20M

Financial Statements
Beta
Revenue$349.99M
Cost of Revenue$282.97M
Gross Profit$67.02M
SG&A Expenses$49.40M
Operating Income$17.73M
Interest Expense$347K
Net Income$11.38M
EPS (Basic)$0.31
EPS (Diluted)$0.30
Shares Outstanding (Basic)37.29M
Shares Outstanding (Diluted)37.63M

Key Highlights

  • 1The company is involved in legal proceedings arising in the normal course of business, but management believes these will not materially impact financial condition.
  • 2Comfort Systems USA Inc. has an active stock repurchase program authorized to acquire up to 6.6 million shares.
  • 3During the nine months ended September 30, 2013, the company repurchased 0.1 million shares at an average price of $14.59.
  • 4Since the program's inception in 2007, a total of 6.0 million shares have been repurchased at an average price of $11.00.
  • 5In the third quarter of 2013 (July 1 - September 30), the company repurchased a total of 75,578 shares at an average price of $15.56.
  • 6The remaining shares that may be purchased under the program as of September 30, 2013, stood at 583,323.
  • 7No unregistered sales of equity securities occurred during the reported period.

Frequently Asked Questions

Comfort Systems USA Inc. is subject to claims and lawsuits in the normal course of business. The company has insurance coverage and has made accruals for probable losses. Management currently believes that the resolution of these matters, individually or in aggregate, will not have a material adverse impact on the company's operating results, cash flows, or financial condition.

The company has an ongoing stock repurchase program approved by its Board of Directors. This program allows for the repurchase of up to 6.6 million shares of common stock. As of September 30, 2013, they have repurchased a cumulative total of 6.0 million shares since the program's inception in 2007.

During the third quarter of 2013 (July 1 - September 30), Comfort Systems USA Inc. repurchased a total of 75,578 shares of its common stock at an average price of $15.56 per share.

Investors are advised to consider the risk factors detailed in the company's Annual Report on Form 10-K for the year ended December 31, 2012. While this 10-Q filing does not introduce new specific risk factors beyond those already disclosed, it notes that other currently unknown or deemed immaterial risks could also adversely affect the business.