Summary
Comfort Systems USA, Inc. (FIX) reported its first-quarter 2021 financial results, showing a decrease in revenue of 4.3% to $669.8 million compared to the prior year, largely due to an 11.8% decrease in same-store activity, partially offset by contributions from recent acquisitions. Despite the revenue decline, gross profit increased by 5.4% to $123.5 million, leading to a significant improvement in operating income, which rose to $35.6 million from $24.7 million in Q1 2020. This improved profitability was driven by better margins in the electrical segment and reduced selling, general, and administrative expenses. The company demonstrated strong cash flow generation, with operating cash flow increasing substantially to $84.6 million from $21.9 million year-over-year, bolstered by effective receivables management. Free cash flow also saw a significant increase, reaching $80.3 million. The company maintained a healthy liquidity position with $390.5 million in available credit under its senior credit facility. Management anticipates continued solid earnings and cash flow throughout 2021, supported by a robust backlog and improving industry conditions.
Financial Highlights
51 data points| Revenue | $669.76M |
| Cost of Revenue | $546.29M |
| Gross Profit | $123.47M |
| SG&A Expenses | $88.21M |
| Operating Income | $35.60M |
| Interest Expense | $1.50M |
| Net Income | $26.49M |
| EPS (Basic) | $0.73 |
| EPS (Diluted) | $0.73 |
| Shares Outstanding (Basic) | 36.29M |
| Shares Outstanding (Diluted) | 36.50M |
Key Highlights
- 1Revenue decreased by 4.3% to $669.8 million in Q1 2021 compared to Q1 2020, primarily driven by a decline in same-store activity.
- 2Gross profit increased by 5.4% to $123.5 million, with gross margin improving to 18.4% from 16.7%, largely due to better execution in the electrical segment.
- 3Operating income significantly increased to $35.6 million from $24.7 million, reflecting improved gross profit and lower SG&A expenses.
- 4Selling, General & Administrative (SG&A) expenses decreased by 5.1% to $88.2 million, partly due to reduced bad debt expenses.
- 5Net income rose to $26.5 million ($0.73 per diluted share) from $17.7 million ($0.48 per diluted share) in the prior year's quarter.
- 6Operating cash flow dramatically improved to $84.6 million from $21.9 million year-over-year, driven by strong collections and improved working capital management.
- 7Backlog increased by 9.8% sequentially to $1.66 billion, indicating a positive near-term revenue outlook, supported by recent acquisitions and new project bookings.