Summary
Comfort Systems USA, Inc. (FIX) reported robust financial results for the first quarter of 2022, demonstrating significant year-over-year growth driven by both organic expansion and strategic acquisitions. Revenue surged by 32.2% to $885.2 million, largely propelled by a 15.6% increase in same-store activity and a 16.6% boost from recent acquisitions, particularly in the electrical services segment. The company also saw a substantial increase in its backlog, which grew by 18.2% sequentially and 64.6% year-over-year, indicating strong future revenue potential. Net income saw a remarkable jump to $86.8 million from $26.5 million in the prior year's first quarter, aided by a significant tax benefit related to R&D tax credits and a reduction in unrecognized tax benefits. Despite increased selling, general, and administrative expenses and a slight dip in gross profit margin due to product and segment mix, the company's operational performance and financial position remain strong. Comfort Systems USA's proactive management of supply chain challenges and continued focus on operational efficiency position it for sustained performance in the coming quarters.
Financial Highlights
51 data points| Revenue | $885.22M |
| Cost of Revenue | $732.07M |
| Gross Profit | $153.14M |
| SG&A Expenses | $117.78M |
| Operating Income | $35.69M |
| Interest Expense | $2.13M |
| Net Income | $86.76M |
| EPS (Basic) | $2.40 |
| EPS (Diluted) | $2.40 |
| Shares Outstanding (Basic) | 36.08M |
| Shares Outstanding (Diluted) | 36.19M |
Key Highlights
- 1Revenue increased by 32.2% to $885.2 million in Q1 2022 compared to Q1 2021.
- 2Net income significantly grew to $86.8 million ($2.40 per diluted share) from $26.5 million ($0.73 per diluted share) in the prior year quarter.
- 3Backlog increased to $2.73 billion as of March 31, 2022, up 18.2% sequentially and 64.6% year-over-year, reflecting strong future demand.
- 4Operating income remained stable at $35.7 million, despite a decrease in gross profit margin from 18.4% to 17.3% due to segment and product mix.
- 5Selling, general, and administrative (SG&A) expenses increased by 33.5% to $117.8 million, partly due to acquisition-related amortization and increased operating costs.
- 6The company benefited from a significant tax provision adjustment, including a $28.8 million reduction in unrecognized tax benefits and R&D tax credits, leading to a negative effective tax rate of -130.1% for the quarter.
- 7Cash provided by operating activities was $63.7 million, though lower than the prior year's $84.6 million, influenced by changes in receivables; however, free cash flow was robust at $55.6 million.