Comfort Systems USA Reports First Quarter Results
Houston, TX – May 3, 2006 – 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 of $4,327,000 or $0.11 per diluted share, for the quarter ended March 31, 2006, as compared to net income of $529,000 or $0.01 per diluted share, in the first quarter of 2005.
Bill Murdy, Comfort Systems USA's Chairman and CEO, said, “Strong commercial construction market fundamentals and outstanding execution by our team members helped us post substantial same quarter increases in virtually all of our activity and profit measures. We are especially pleased to demonstrate outstanding improvement in earnings and revenues over the same quarter last year.”
The Company reported revenues from continuing operations of $237,854,000 in the current quarter, an increase of 21.8% as compared to $195,260,000 in 2005. Following a very strong fourth quarter cash flow, the Company reported negative free cash flow of $15,428,000 in the current quarter which was funded entirely by existing cash balances. Backlog as of March 31, 2006 was a record $727,188,000, up 6.7% from $681,668,000, as of December 31, 2005.
Murdy continued, “As in past first calendar quarters we made a sizeable investment in working capital as same store revenues increased substantially. Our cash metrics remain strong and we expect to translate our earnings into good cash performance as the year progresses.”
Bill Murdy concluded, “We remain optimistic that our strong backlog and expected industry fundamentals give us a solid foundation for continued strong results as 2006 progresses.”
As previously announced, the Company will host a conference call to discuss its financial results and position in more depth on Thursday, May 4, 2006 at 10:00 a.m. Central Time. The call-in number for this conference call is 1-210-234-0008. A replay of the entire call will be available until 6:00 p.m. Central Time, Thursday, May 11, 2006 by calling 1-203-369-3390.
Comfort Systems USA is a premier provider of business solutions addressing workplace comfort, with 56 locations in 50 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 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 or regional weakness in non-residential construction activity, difficulty in obtaining or increased costs associated with bonding, shortages of labor and specialty building materials, seasonal fluctuations in the demand for HVAC systems and the use of incorrect estimates for bidding a fixed price contract, the Company's backlog failing to translate into actual revenue or profits, errors in the Company's percentage of completion method of accounting, the result of competition in the Company's markets, the imposition of past and future liability from environmental, safety, and health regulations, 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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