This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Comfort Systems USA Reports Third Quarter Results

Bill Murdy concluded, “We expect a profitable fourth quarter and continued profitability in 2011, and we also expect that our cash flow will strengthen as we close out 2010.”

As previously announced, the Company will host a conference call to discuss its financial results and position in more depth on Wednesday, November 3, 2010 at 10:00 a.m. Central Time. The call-in number for this conference call is 1-888-680-0860 and enter 95646121 as the passcode. Participants may pre-register for the call at https://cossprereg.btci.com/prereg/key.process?key=PAQ6RG797. Pre-registrants will be issued a pin number to use when dialing into 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 Investors tab. A replay of the entire call will be available until 6:00 p.m. Central Time, Wednesday, November 10, 2010 by calling 1-888-286-8010 with the conference passcode of 26353747, and will also be available on our website on the next business day following the call.

Comfort Systems USA ® is a premier provider of business solutions addressing workplace comfort, with 85 locations in 76 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 of 1995. These statements are based on the current plans and expectations of future events 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, the use of incorrect estimates for bidding a fixed-price contract, undertaking contractual commitments that exceed our labor resources, failing to perform contractual obligations efficiently enough to maintain profitability, national or regional weakness in construction activity and economic conditions, financial difficulties affecting projects, vendors, customers, or subcontractors, our backlog failing to translate into actual revenue or profits, difficulty in obtaining or increased costs associated with bonding and insurance, impairment to goodwill, errors in our percentage-of-completion method of accounting, the result of competition in our markets, our decentralized management structure, shortages of labor and specialty building materials, retention of key management, seasonal fluctuations in the demand for HVAC systems, the imposition of past and future liability from environmental, safety, and health regulations including the inherent risk associated with self-insurance, adverse litigation results and other risks detailed in our reports filed with the Securities and Exchange Commission. A further list and description of these risks, uncertainties and other factors are discussed under "Item 1A. Company Risk Factors" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2009. These forward-looking statements speak only as of the date of this filing. 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 our expectations with regard thereto or any change in events, developments, conditions or circumstances on which any such statement is based.

- Financial tables follow –

 

Comfort Systems USA, Inc.

Consolidated Statements of Operations
For the Three Months and Nine Months Ended September 30, 2010 and 2009
(in thousands, except per share amounts)
(unaudited)
 
    Three Months Ended   Nine Months Ended
September 30, September 30,
2010   %     2009   %     2010   %       2009   %  
Revenues $ 307,648 100.0 % $ 291,591 100.0 % $ 793,711 100.0 % $ 872,214 100.0 %
Cost of services   257,339 83.6 %   234,186 80.3 %   661,929 83.4 %   701,335 80.4 %
Gross profit 50,309 16.4 % 57,405 19.7 % 131,782 16.6 % 170,879 19.6 %
 
SG&A 41,885 13.6 % 41,713 14.3 % 114,905 14.5 % 126,175 14.5 %
Goodwill impairment

-

-

-

-

4,446 0.6 %

-

-

Gain on sale of assets

  (29 )

-

  (101 )

-

  (502 ) (0.1 )%   (98 )

-

Operating income 8,453 2.7 % 15,793 5.4 % 12,933 1.6 % 44,802 5.1 %
 
Interest expense, net (793 ) (0.3 )% (184 ) (0.1 )% (1,223 ) (0.2 )% (454 ) (0.1 )%
Other income   669 0.2 %   3

-

  675 0.1 %   5

-

Income before income taxes 8,329 2.7 % 15,612 5.4 % 12,385 1.6 % 44,353 5.1 %
Income tax expense   2,919   6,072   4,164   17,293
Income from continuing operations 5,410 1.8 % 9,540 3.3 % 8,221 1.0 % 27,060 3.1 %
 

Discontinued operations:

Operating loss, net of income tax benefit of $-, $-, $-, and $133

-

 

-

-

(387 )

Estimated gain (loss) on disposition, net of income tax expense of $195, $-, $166 and $-

 

(39

)  

-

  723   (93 )
Net income $ 5,371 $ 9,540 $ 8,944 $ 26,580
 
Income per share:

Basic -

Income from continuing operations $ 0.14 $ 0.25 $ 0.22 $ 0.71
Discontinued operations -
Loss from operations

-

-

-

(0.01 )
Estimated gain (loss) on disposition  

-

 

-

  0.02  

-

Net income $ 0.14 $ 0.25 $ 0.24 $ 0.70
 
Diluted -
Income from continuing operations $ 0.14 $ 0.25 $ 0.22 $ 0.70
Discontinued operations -
Loss from operations

-

-

-

(0.01 )
Estimated gain (loss) on disposition  

-

 

-

  0.02  

-

Net income $ 0.14 $ 0.25 $ 0.24 $ 0.69
 
Shares used in computing income per share:

 

Basic 37,560 37,995 37,564 38,135
Diluted 37,794 38,382 37,821 38,533

Note 1: The diluted earnings per share data presented above reflects the dilutive effect, if any, of stock options and contingently issuable restricted stock which were outstanding during the periods presented.

2 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,039.49 +60.36 0.36%
S&P 500 1,992.37 +5.86 0.30%
NASDAQ 4,532.1040 +5.6220 0.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs