Comfort Systems USA 1999 Second Quarter Pro Forma Earnings Per Share Up 32%; Pro Forma Net Income Increases 65%; Warm Weather Attracts Attention to Industry.HOUSTON--(BUSINESS WIRE)--Aug. 4, 1999-- Comfort Systems USA, Inc. (NYSE NYSE See: New York Stock Exchange : FIX), a leading provider of commercial/industrial heating, ventilation ventilation, process of supplying fresh air to an enclosed space and removing from it air contaminated by odors, gases, or smoke. Proper ventilation requires also that there be a movement or circulation of the air within the space and that the temperature and and air conditioning air conditioning, mechanical process for controlling the humidity, temperature, cleanliness, and circulation of air in buildings and rooms. Indoor air is conditioned and regulated to maintain the temperature-humidity ratio that is most comfortable and healthful. ("HVAC (Heating Ventilation Air Conditioning) In the home or small office with a handful of computers, HVAC is more for human comfort than the machines. In large datacenters, a humidity-free room with a steady, cool temperature is essential for the trouble-free ") services today announced that pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income for the second quarter ended June June: see month. 30, 1999, increased 65% to $14,645,000 as compared to $8,891,000 in 1998. Pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. per share increased 32% to $0.37 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, as compared to $0.28 per diluted share in 1998. The total number of diluted shares outstanding quarter-over-quarter increased by approximately 8.5 million. Pro forma combined revenues for the quarter increased 76% to $341,493,000 as compared to $194,350,000 in 1998. "We are pleased to report another quarter with excellent results," said Fred (Friendly Rollabout Engineered for Doctors) A mobile medical conferencing unit. See videoconferencing. 1. FRED - Robert Carr. Language used by Framework, Ashton-Tate. 2. Ferreira, Comfort Systems USA's Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "We continue to make significant strides in building our company. During this quarter we added new acquisitions, introduced Comfort Capital, and increased our management depth including the appointment of industry leader Gary Hess Hess , Walter Rudolf 1881-1973. Swiss physiologist. He shared a 1949 Nobel Prize for his research on the brain's control of the body. as Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. ." Pro forma combined revenues for the six months ended June 30, 1999 were $633,419,000, an increase of 94% over $326,958,000 in 1998. Pro forma net income increased 71% to $21,209,000 as compared to $12,373,000 in 1998. Pro forma earnings per diluted share advanced 35% to $0.54 from $0.40 in 1998. The total number of diluted shares outstanding year-over-year increased by approximately ten million. Mr. Ferreira continued, "Our growing strength as a national company not only positions us well to capture multi-location and energy-related business, it also enables us to build a diversified diversified (di·verˑ·s base of business. For example, our top ten customers in 1999 come from ten different industries or economic sectors, are located in each of our six geographic regions, and are served by eight different Comfort companies." Ferreira added, "The largest of these customers is about 1.5% of our revenues, and together they account for only 8% of our activity. Maintaining this kind of diversified business mix is an important goal for us as we drive Comfort Systems USA's growth." Turning to current events affecting the HVAC industry, Mr. Ferreira noted, "This July and August have seen extremely warm weather across much of the US. While these temperatures do not have a significant immediate impact on our business, because much of our work is planned in advance with our customers, the current heat wave does draw attention to the importance of what we do. With comfortable environments viewed as a basic necessity, more and more customers are looking to ensure, through design and service, that their HVAC systems can take the heat in conditions like these. We believe this raises the profile of our industry and gives us the opportunity to expand our customer base." Mr. Ferreira added, "Today's markets are active, and we are pleased with the trends in revenues and booked business we saw during the first half of 1999. The current tone of our business has contributed to our excitement about continuing to build Comfort Systems USA into the leading national provider of commercial/industrial HVAC and related services." Comfort Systems USA is a premier provider of business solutions addressing workplace comfort, environments, processes and energy services, with more than 115 locations in 80 cities around the nation. Comfort Systems USA has annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. revenues of approximately $1.3 billion and is based in Houston. For more information, visit the Company's web-site at www.comfortsystemsusa.com. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on the current plans and expectations of Comfort Systems USA, Inc. and involve risks and uncertainties that could cause actual future activities and results of operations to be materially different from those set forth in the forward-looking statements. Important factors that could cause actual results to differ include, among others, risks associated with acquisitions, fluctuations in operating results because of acquisitions, and variations in stock prices, changes in government regulations, competition, and risks entailed in the operations and growth of the newly acquired businesses and other risks detailed in the Company's reports filed with the Securities and Exchange Commission. -0-
Comfort Systems USA, Inc.
Pro Forma Combined Statements of Operations
For the three months and six months ended June 30, 1999 & 1998
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended
June 30,
---------------------------------------
1999 % 1998 %
Revenues $ 341,493 100.0% $ 194,350 100.0%
Cost of services 265,254 77.7% 146,646 75.5%
Gross profit --------- ---------
76,239 22.3% 47,704 24.5%
SG&A 43,333 12.7% 29,133 15.0%
Goodwill amortization 2,883 0.8% 1,598 0.8%
--------- ---------
Income from
operations 30,023 8.8% 16,973 8.7%
Interest expense, net 4,403 1.3% 1,462 0.8%
Other (income)
expense (61) -- (42) --
--------- ---------
Income before taxes 25,681 7.5% 15,553 8.0%
Income taxes 11,036 -- 6,662 --
--------- ---------
Net income $ 14,645 4.3% $ 8,891 4.6%
Net income per share:
Basic $ 0.38 $ 0.28
Diluted $ 0.37 $ 0.28
Shares used in computing net
income per share:
Basic 38,734 31,696
Diluted 40,644 32,127
EBITDA $ 35,736 10.5% $ 20,252 10.4%
Six Months Ended
June 30,
---------------------------------------
1999 % 1998 %
Revenues $ 633,419 100.0% $ 326,958 100.0%
Cost of services 494,002 78.0% 247,915 75.8%
--------- ---------
Gross profit 139,417 22.0% 79,043 24.2%
SG&A 88,191 13.9% 52,202 16.0%
Goodwill amortization 5,667 0.9% 2,768 0.8%
--------- ---------
Income from
operations 45,559 7.2% 24,073 7.4%
Interest expense, net 8,424 1.3% 2,023 0.6%
Other (income)
expense (103) -- (19) --
--------- ---------
Income before taxes 37,238 5.9% 22,069 6.7%
Income taxes 16,029 -- 9,696 --
--------- ---------
Net income $ 21,209 3.3% $ 12,373 3.8%
Net income per share:
Basic $ 0.55 $ 0.41
Diluted $ 0.54 $ 0.40
Shares used in computing net
income per share:
Basic 38,524 30,534
Diluted 40,725 30,965
EBITDA $ 56,592 8.9% $ 29,619 9.1%
Note 1: This table presents the retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. to January 1, 1998, of companies acquired in pooling transactions, and the results of companies acquired in purchase transactions from their respective dates of acquisition. Prior to their acquisition by Comfort Systems, these companies were managed as independent companies. In conjunction with the acquisitions of the pooled companies, certain former owners have contractually agreed to reductions in salaries and benefits. These reductions are reflected in the pro forma forma, adj/n minor elements between the members of a botanical species. information as if they had occurred on January 1, 1998. In addition, an incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. tax provision has been reflected for all periods presented. Note 2: The diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of data presented above reflects the dilutive effect Dilutive effect Result of a transaction that decreases earnings per common share (EPS). , if any, of stock options and convertible notes which were outstanding during the periods presented. For convertible notes that are dilutive, shares attributable to the notes have been included in weighted shares outstanding, and after-tax interest expense related to these notes of $274 and $703 for the three months and six months ended June 30, 1999, respectively, has been added back to net income for purposes of calculating diluted earnings per share. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion