News Column

Comfort Systems USA Reports Second Quarter 2014 Results

August 16, 2014



By a News Reporter-Staff News Editor at Investment Weekly News -- Comfort Systems USA, Inc. (NYSE: FIX), a leading provider of commercial, industrial and institutional heating, ventilation and air conditioning ("HVAC") services, announced net income attributable to Comfort Systems USA of $4,401,000 or $0.12 per diluted share, for the quarter ended June 30, 2014, as compared to $7,762,000 or $0.21 per diluted share, for the quarter ended June 30, 2013. Earnings per share for the current quarter includes a goodwill impairment charge of $0.01. The Company reported revenue of $362,801,000 in the current quarter. On a same-store basis, the Company reported revenue of $352,758,000, as compared to $351,053,000 in 2013. The Company reported free cash flow of $18,256,000 in the current quarter, as compared to $2,996,000 in 2013. Backlog as of June 30, 2014 was $673,694,000. On a same-store basis, backlog was $630,372,000 as of June 30, 2014 as compared to $612,335,000 as of March 31, 2014 and $590,276,000 as of June 30, 2013.

The Company also announced that is has amended its existing credit facility to increase it from $175,000,000 to $250,000,000 and has extended the maturity to October 2019. The terms, covenants and conditions of the amended agreement are substantially similar to or improved from the previously existing agreement.

Brian Lane, Comfort Systems USA's Chief Executive Officer, said, "Earnings were lower this quarter than a year ago as market conditions remain soft. We continued to experience disappointing results at our Southern California operations, and our reported EPS includes a goodwill impairment of $0.01 associated with this operation. We were also affected by the previously discussed incremental expense arising from our ongoing SG&A investments in service growth and information technology. Apart from these factors, our field operations reported overall income that was approximately the same as last year, and we are encouraged by our increase in backlog and cash flow."

The Company reported net income attributable to Comfort Systems USA for the six months ended June 30, 2014 of $4,776,000 or $0.13 per diluted share as compared to $10,294,000 or $0.28 per diluted share, for the first six months of 2013. The Company also reported revenue of $684,182,000. On a same-store basis, the Company reported revenue of $674,139,000 as compared to $676,943,000 for the same period of 2013. Free cash flow for the six months ended June 30, 2014 was $5,807,000 as compared to negative free cash flow of $10,386,000 in the first six months of 2013.

Mr. Lane continued, "During July we substantially increased our credit line and extended its maturity to the fourth quarter of 2019. We are grateful to our lenders for their vote of confidence, and we believe that the new agreement augments our financial strength and increases our investment flexibility."

Mr. Lane concluded, "We are optimistic about our upcoming prospects despite the challenges we have encountered in the first half of 2014. Based on early results we are encouraged by the prospects for our service growth investment, and we believe that our investments, acquisitions and industry-leading workforce continue to position us for a bright future."

As previously announced, the Company will host a webcast and conference call to discuss its financial results and position in more depth on Thursday, July 31, 2014 at 10:00 a.m. Central Time. The call-in number for this conference call is 1-888-713-4211 and enter 50671717 as the passcode. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=P3XBFBJDM. The Company anticipates that an accompanying slide presentation will also be available under the Investor tab. Pre-registrants will be issued a pin number to use when dialing in to the live call, which will provide quick access to the conference by bypassing the operator upon connection. The call can also be accessed on the Company's website at www.comfortsystemsusa.com under the Investor tab. A replay of the entire call will be available until 11:59 p.m. Central Time, Thursday, August 7, 2014 by calling 1-888-286-8010 with the conference passcode of 54895871, and will also be available on our website on the next business day following the call.

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Source: Investment Weekly News


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