Comfort Systems USA, Inc. (NYSE: FIX), a leading provider of commercial, industrial and institutional heating, ventilation and air conditioning (“HVAC”) services, today reported results for the third quarter ended September 30, 2011.
The Company recorded a net loss, including the effect of a significant reduction in goodwill balances, of $36,569,000, or $(0.98) per diluted share, for the quarter ended September 30, 2011. Excluding the reduction in goodwill and other noncash charges discussed below, adjusted non-GAAP net income was $5,348,000, or $0.14 per share, as compared to $4,996,000 or $0.13 per diluted share, in the third quarter of 2010. The Company reported revenue of $328,113,000 in the current quarter. On a same-store basis, the Company reported revenue of $284,496,000, as compared to $268,871,000 in 2010.
During the third quarter of 2011, the Company concluded that impairment indicators existed within certain companies based on year to date results and recent forecasts. As a result, the Company performed applicable tests as prescribed by the accounting literature and recognized a pre-tax, noncash goodwill impairment charge of $55,134,000, or $(1.20) per diluted share after-tax. These revised forecasts also affected judgments concerning likely future benefits from prior tax losses and the value of existing earn-out obligations. As a result, the Company recognized an additional noncash charge of $2,056,000, or $(0.05) per diluted share, due to the increase in valuation allowances related to the utilization of certain state net operating loss carryforwards. The Company also recorded a noncash change in the fair value of earn-out obligations, which resulted in pre-tax income of $5,077,000, or $0.13 per diluted share after tax.
The Company reported negative free cash flow of $840,000 in the current quarter, as compared to positive free cash flow of $1,274,000 in the third quarter of 2010. Backlog as of September 30, 2011 was $636,128,000 as compared to $621,162,000 as of June 30, 2011 and $635,818,000 as of September 30, 2010.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV