Comfort Systems USA Completes New Long-Term Debt Facility; Improved Terms, Stability and Flexibility; Earnings Release Date Announced.HOUSTON -- Comfort Systems USA, Inc. (NYSE NYSE See: New York Stock Exchange :FIX), a leading provider of commercial, industrial and institutional heating, ventilation 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 it has closed a new $75 million senior debt facility led by Hibernia Bank. This new facility replaces the previous facility led by Bank of Texas, N.A. and Hibernia Bank, although Bank of Texas has also increased its commitment and remains as the second largest lender in the new facility. The new facility has a four year term, increases the overall amount available by approximately $20 million to $75 million, and eliminates the term debt portion of the prior facility. Bill Murdy, 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. , said, "We are extremely pleased that our lenders, all of whom participated in our previous facility, have continued their partnership with us in this important new financing. In addition to improved economic terms, the facility provides us with additional capacity as we consider prudent acquisitions. The agreement also affords our board of directors the flexibility to consider ways in which the Company might return value to its shareholders. "A strong and stable new facility is a key competitive advantage that complements our strong balance sheet and provides a meaningful advantage in an industry where owners and general contractors continue to value partners with strong financial foundations. Our continued improvement in financial fundamentals is primarily thanks to the work and dedication of management and personnel at our operating locations, and we are deeply indebted to them." Mr. Murdy concluded, "Our new long-term facility provides significant support to our continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the and further strengthens our foundation for long-term growth." The new facility contains financial covenants that include a limit on the ratio of debt to earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Total assets less intangible assets and total liabilities. Notes: In terms of a consumer, tangible net worth is the sum of all your tangible assets (cash, home, cars, etc). . The Company has complied with all of its debt covenants under the prior facility by comfortable margins. The new facility contains less restrictive covenants Restrictive covenants Provisions that place constraints on the operations of borrowers, such as restrictions on working capital, fixed assets, future borrowing, and payment of dividends. , and should provide further improvement in the Company's margin of compliance with debt covenants. Because of the Company's net cash position, initial borrowings under the new credit line will be zero. The Company will record a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. in its second quarter 2005 results to write off deferred financing costs associated with its previous senior lending facility which was terminated when the Company's new facility was established. This charge is expected to be approximately $0.9 million pretax, or $.01 per share. The Company separately announced that it has scheduled its quarterly conference call for Wednesday, August 3, 2005 at 10:00 a.m. Central Time to discuss second quarter 2005 financial results. The results will be released after the market closes on Tuesday, August 2, 2005. To participate in the call, dial 1-210-234-0002 ten minutes before the conference call begins and ask for the Comfort Systems USA conference. A replay of the entire call will be available until 6:00 p.m. Central Time, Wednesday, August 10, 2005 by calling 1-203-369-3360. Comfort Systems USA(R) is a premier provider of business solutions addressing workplace comfort, with 60 locations in 51 cities around the nation. For more information, visit the Company's website at www.comfortsystemsusa.com. This press release contains forward-looking statements 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, retention of key management, national and regional weakness in non-residential construction activity, difficulty in obtaining debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay or bonding, shortages of labor and specialty building materials Building materials used in the construction industry to create . These categories of materials and products are used by and construction project managers to specify the materials and methods used for . , seasonal fluctuations in the demand for HVAC systems and the use of incorrect estimates for bidding a fixed price contract and other risks detailed in the Company's reports filed with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this release. Comfort Systems USA, Inc. expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in Comfort Systems USA Inc.'s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. |
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