Comfort Systems USA Reports First Quarter Results; Backlog Increases to Another Record Level.HOUSTON Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; -- Comfort Systems USA, Inc. (NYSE NYSE See: New York Stock Exchange :FIX), a leading provider of commercial, industrial and institutional 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 net income of $529,000 or $0.01 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, for the quarter ended March 31, 2005, as compared to net income of $1,043,000 or $0.03 per diluted share, in the first quarter of 2004. 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, "Although as expected we earned less than we did last year in our seasonally low first quarter, we continue to feel positive about our prospects to exceed our 2004 earnings during 2005." The Company reported revenues from 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 of $204,690,000 in the current quarter, an increase of 6.2% as compared to $192,801,000 in 2004. Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 3.3% of this increase related to internal growth and the remaining 2.9% resulted from the acquisition of Granite granite, coarse-grained igneous rock of even texture and light color, composed chiefly of quartz and feldspars. It usually contains small quantities of mica or hornblende, and minor accessory minerals may be present. State Plumbing plumbing, piping systems inside buildings for water supply and sewage. The Romans had a highly developed plumbing system; water was brought to Rome by aqueducts and distributed to homes in lead pipes—hence the name plumbing from the Latin word plumbum & Heating in January January: see month. 2005. Following a very strong fourth quarter cash flow, the Company reported negative free cash flow of $7,436,000 in the current quarter which was funded entirely by existing cash balances. Backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. as of March 31, 2005 was a record $629,600,000, up 9.8% from $573,400,000, the previous record as of December December: see month. 31, 2004. Murdy continued, "Our increased revenues and record backlog reflect continuing improvement in activity levels and suggest a good opportunity for success during the remainder of the year. Our acquisition of Granite State Plumbing & Heating has met all of our initial expectations, and they are part of our revenue and backlog increase. However, even without the effects of the Granite State acquisition, revenues were up $6.3 million and backlog has increased by $140.6 million from a year earlier." Bill Murdy concluded, "Overall, we believe we remain well-positioned to deliver strong results in 2005." As previously announced, the Company will host a conference call to discuss its financial results and position in more depth on Thursday Thursday: see week. , May 5, 2005 at 10:00 a.m. Central Time. The call-in call-in adj. Being in a format such that listeners or viewers are invited to have their telephone conversations with the host or guests on a show broadcast to other listeners: a call-in radio show. n. number for this conference call is 1-712-257-2124. A replay of the entire call will be available until 6:00 p.m. Central Time, Thursday, May 12, 2005 by calling 1-203-369-1801. Comfort Systems USA 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 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, retention of key management, national and regional weakness in non-residential construction activity, difficulty in obtaining or increased costs associated with 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 A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. 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 Incorrect means to not be correct and may also refer to:
Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to any forward-looking statement contained herein to reflect any change in Comfort Systems USA Inc.'s expectations with regard thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. or any change in events, conditions or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or on which any such statement is based. --Financial table follows -
Comfort Systems USA, Inc.
Consolidated Statements of Operations
For the Three Months Ended March 31, 2005 and 2004
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
March 31,
----------------------------------
2005 % 2004 %
---------- ------ --------- ------
Revenues $204,690 100.0% $192,801 100.0%
Cost of services 175,377 85.7% 162,777 84.4%
---------- ----------
Gross profit 29,313 14.3% 30,024 15.6%
SG&A 28,077 13.7% 27,055 14.0%
Gain on sale of assets (34) - (36) -
---------- ----------
Income from operations 1,270 0.6% 3,005 1.6%
Interest expense, net 247 0.1% 497 0.3%
Other expense (income) (11) - 702 0.4%
---------- ----------
Income before taxes 1,034 0.5% 1,806 0.9%
Income taxes 505 796
---------- ----------
Income from continuing operations 529 0.3% 1,010 0.5%
Discontinued operations:
Operating income, net of income tax
expense of $23 - 33
---------- ----------
Net income $529 $1,043
========== ==========
Income per share:
Basic-
Income from continuing operations $0.01 $0.03
Discontinued operations-
Income from operations - -
---------- ----------
Net income $0.01 $0.03
========== ==========
Diluted-
Income from continuing operations $0.01 $0.03
Discontinued operations-
Income from operations - -
---------- ----------
Net income $0.01 $0.03
========== ==========
Shares used in computing income
per share:
Basic 38,990 38,136
Diluted 40,062 39,443
Note 1: The diluted earnings per share data presented above reflects
the dilutive effect, if any, of stock options, warrants and
contingently issuable restricted stock which were outstanding during
the periods presented.
Supplemental Non-GAAP Information - Adjusted Earnings Before Interest,
Taxes, Depreciation and Amortization ("Adjusted EBITDA") (Unaudited):
Three Months Ended
March 31,
----------------------------
2005 % 2004 %
-------- ----- ------- -----
Net income $529 $1,043
Discontinued operations - (33)
Income taxes 505 796
Other expense (income) (11) 702
Interest expense, net 247 497
Gain on sale of assets (34) (36)
Depreciation 1,065 1,137
-------- -------
Adjusted EBITDA $2,301 1.1% $4,106 2.1%
======== =======
Note 1: The Company defines adjusted earnings before interest, taxes,
depreciation and amortization (Adjusted EBITDA) as net income,
excluding discontinued operations, income taxes, other expense
(income), interest expense, net, gain on sale of assets and
depreciation. Adjusted EBITDA may be defined differently by other
companies. Adjusted EBITDA is presented because it is a financial
measure that is frequently requested by third parties. However,
Adjusted EBITDA is not considered under generally accepted accounting
principles as a primary measure of an entity's financial results, and
accordingly, Adjusted EBITDA should not be considered an alternative
to operating income, net income, or cash flows as determined under
generally accepted accounting principles and as reported by the
Company.
Comfort Systems USA, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
March 31, December 31,
2005 2004
------------- ------------
(unaudited)
Cash and cash equivalents $22,454 $32,576
Accounts receivable, net 178,979 174,682
Costs and estimated earnings in excess of
billings 25,734 25,440
Other current assets 27,092 28,031
------------- ------------
Total current assets 254,259 260,729
Property and equipment, net 13,958 12,988
Goodwill 100,123 100,123
Other noncurrent assets 8,738 9,276
------------- ------------
Total assets $377,078 $383,116
============= ============
Current maturities of long-term debt $2,068 $2,071
Accounts payable 60,005 64,771
Billings in excess of costs and estimated
earnings 40,015 37,104
Other current liabilities 50,428 55,822
------------- ------------
Total current liabilities 152,516 159,768
Long-term debt 6,235 6,751
------------- ------------
Total liabilities 158,751 166,519
Total equity 218,327 216,597
------------- ------------
Total liabilities and equity $377,078 $383,116
============= ============
Selected Cash Flow Data (in thousands)
(unaudited):
--------------------------------------
Three Months Ended
March 31,
----------------------
2005 2004
----------- ----------
Cash flow from operating activities $(5,541) $(4,733)
Cash flow from investing activities $(4,633) $(255)
Cash flow from financing activities $52 $(29)
Cash flow from operating activities $(5,541) $(4,733)
Purchases of property and equipment (2,043) (1,317)
Proceeds from sales of property and equipment 148 129
----------- ----------
Free cash flow $(7,436) $(5,921)
=========== ==========
Note 1: Free cash flow is defined as cash flow from operating
activities less customary capital expenditures, plus the proceeds from
asset sales. Free cash flow may be defined differently by other
companies. Free cash flow is presented because it is a financial
measure that is frequently requested by third parties. However, free
cash flow is not considered under generally accepted accounting
principles as a primary measure of an entity's financial results, and
accordingly, free cash flow should not be considered an alternative to
operating income, net income, or cash flows as determined under
generally accepted accounting principles and as reported by the
Company.
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