Comfort Systems USA, Inc. (NYSE: FIX), a leading provider of commercial, industrial and institutional heating, ventilation and air conditioning (“HVAC”) services, today announced net income attributable to Comfort Systems USA of $375,000 or $0.01 per diluted share, for the quarter ended March 31, 2014, as compared to $2,532,000 or $0.07 per diluted share, for the quarter ended March 31, 2013.
Brian Lane, Comfort Systems USA’s Chief Executive Officer, said, “The first quarter is traditionally our weakest quarter each year, and seasonal weakness was exacerbated this year by customer site closings and resulting productivity losses arising from bad winter weather in many of our geographies. We also experienced an increase in SG&A this quarter arising from our ongoing investment in service growth, combined with additional investment in information technology. This increase in SG&A expense this quarter more than offset an increase in gross profit margins, and resulted in lower overall operating income margins.”
The Company reported revenue of $321,381,000 in the current quarter, as compared to $325,890,000 in 2013. The Company reported negative free cash flow of $12,449,000 in the current quarter, as compared to a negative $13,382,000 in 2013. Backlog as of March 31, 2014 was $612,335,000, as compared to $603,603,000 as of December 31, 2013 and $631,056,000 as of March 31, 2013.
Mr. Lane concluded, “Backlog remains solid and we remain confident in our decision to increase our investment in service growth. Further, we now expect that over the next several quarters demand for non-residential construction is likely to gradually increase in a majority of our markets. Although our first quarter 2014 earnings and revenues were below the same quarter last year, we do not believe that these results indicate a trend, and we have not changed our outlook that overall profitability this year will be similar to 2013. Overall, we believe that our investments, combined with the efficiency gained over the course of this recession, have positioned us for growth in 2015 and beyond.”