EX-99.12fix-20250220xex99d1.htmEX-99.1
Exhibit 99.1
CONTACT:
Julie Shaeff, Chief Accounting Officer
675 Bering Drive, Suite 400
ir@comfortsystemsusa.com; 713-830-9687
Houston, Texas 77057
713-830-9600
FOR IMMEDIATE RELEASE
COMFORT SYSTEMS USA REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS
Houston, TX — February 20, 2025 — Comfort Systems USA, Inc. (NYSE: FIX) (the “Company”) today reported results for the quarter and annual period ended December 31, 2024.
For the quarter ended December 31, 2024, net income was $145.9 million, or $4.09 per diluted share, as compared to $91.6 million, or $2.55 per diluted share, for the quarter ended December 31, 2023. Revenue for the fourth quarter of 2024 was $1.87 billion compared to $1.36 billion in 2023. The Company reported operating cash flow of $210.5 million in the current quarter compared to $173.0 million in 2023.
Backlog as of December 31, 2024 was $5.99 billion as compared to $5.68 billion as of September 30, 2024 and $5.16 billion as of December 31, 2023. On a same-store basis, backlog increased from $5.16 billion as of December 31, 2023 to $5.60 billion as of December 31, 2024.
The Company reported net income of $522.4 million, or $14.60 per diluted share, for the twelve months ended December 31, 2024, as compared to $323.4 million, or $9.01 per diluted share in 2023. The Company also reported revenue of $7.03 billion for the twelve months ended December 31, 2024, as compared to $5.21 billion in 2023. Operating cash flow for the twelve months ended December 31, 2024 was $849.1 million, as compared to $639.6 million in 2023.
Brian Lane, Comfort Systems USA’s President and Chief Executive Officer, said, “We are reporting record annual and fourth quarter earnings as our amazing teams across the United States continue their excellent performance. Per share earnings in 2024 were over 60% higher than the spectacular results we achieved in 2023, and our strong quarterly results were also without precedent. Recently acquired companies continue to surpass our expectations, and we are pleased to announce that in January we added Century Contractors, Inc. as our newest partner company. Century is an outstanding, well-established mechanical contractor based in Charlotte, NC.”
Mr. Lane continued, “Cash flow was extraordinary throughout 2024 as we succeeded in organically funding our investments in new companies and also significant share purchases. We believe that our strong earnings, cash flow, and robust backlog indicate continued strength in our execution, customer relationships, and prospects. Fourth quarter bookings were strong, and we ended the year with same-store growth in both sequential and year-over-year backlog. With an unprecedented and broadly based backlog, healthy project pipelines, persistent demand for construction services relating to advanced technology, and an unmatched workforce, we expect continuing strong results in 2025.”
The Company will host a webcast and conference call to discuss its financial results and position on Friday, February 21, 2025 at 10:00 a.m. Central Time. To register for the call, please visit https://register.vevent.com/register/BI8cd852271e8c433cb4d799af8715623d. Upon registering, participants will receive dial-in information and a unique PIN to join the call. The call and the slide presentation to
accompany the remarks can be accessed on the Company’s website at www.comfortsystemsusa.com under the “Investor” tab. A replay of the entire call will be available on the Company’s website on the next business day following the call.
Comfort Systems USA® is a leading provider of commercial, industrial and institutional heating, ventilation, air conditioning and electrical contracting services, with 178 locations in 136 cities across the nation. For more information, visit the Company’s website at www.comfortsystemsusa.com.
Certain statements and information in this press release may constitute forward-looking statements regarding our future business expectations, which are subject to applicable securities laws and regulations. The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” or other similar expressions are intended to identify forward-looking statements, which are generally not historic in nature. These forward-looking statements are based on the current expectations and beliefs of Comfort Systems USA, Inc. and its subsidiaries (collectively, the “Company”) concerning future developments and their effect on the Company. While the Company’s management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting the Company will be those that it anticipates, and the Company’s actual results of operations, financial condition and liquidity, and the development of the industry in which the Company operates, may differ materially from those made in or suggested by the forward-looking statements contained in this press release.
In addition, even if our results of operations, financial condition and liquidity, and the development of the industry in which we operate, are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of our results or developments in subsequent periods. All comments concerning the Company’s expectations for future revenue and operating results are based on the Company’s forecasts for its existing operations and do not include the potential impact of any future acquisitions. The Company’s forward-looking statements involve significant risks and uncertainties (some of which are beyond the Company’s control) and assumptions that could cause actual future results to differ materially from the Company’s historical experience and its present expectations or projections.
Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: the use of incorrect estimates for bidding a fixed-price contract; undertaking contractual commitments that exceed the Company’s labor resources; failing to perform contractual obligations efficiently enough to maintain profitability; national or regional weakness in construction activity and economic conditions; rising inflation and fluctuations in interest rates; shortages of labor and specialty building materials or material increases to the cost thereof; the Company’s business being negatively affected by health crises or outbreaks of disease, such as epidemics or pandemics (and related impacts, such as supply chain disruptions); financial difficulties affecting projects, vendors, customers, or subcontractors; the Company’s backlog failing to translate into actual revenue or profits; failure of third party subcontractors and suppliers to complete work as anticipated; difficulty in obtaining, or increased costs associated with, bonding and insurance; impairment to goodwill; errors in the Company’s cost-to-cost input method of accounting; the result of competition in the Company’s markets; the Company’s decentralized management structure; material failure to comply with varying state and local laws, regulations or requirements; debarment from bidding on or performing government contracts; retention of key management; seasonal fluctuations in the demand for mechanical and electrical 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; an increase in our effective tax rate; a material information technology failure or a material cyber security breach; risks associated with acquisitions, such as challenges to our ability to integrate those companies into our internal control environment; our ability to manage growth and geographically-dispersed operations; our ability to obtain financing on acceptable terms; extreme weather conditions (such as storms, droughts, extreme heat or cold, wildfires and floods), including as a result of climate change, and any resulting regulations or restrictions related thereto; and other risks detailed in our reports filed with the Securities and Exchange Commission (the “SEC”).
For additional information regarding known material factors that could cause the Company’s results to differ from its projected results, please see its filings with the SEC, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.
Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statements after the date they are made, whether because of new information, future events, or otherwise.
— Financial tables follow —
Comfort Systems USA, Inc.
Consolidated Statements of Operations
(In Thousands, Except per Share Amounts)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
(Unaudited)
2024
%
2023
%
2024
%
2023
%
Revenue
$
1,867,804
100.0
%
$
1,357,566
100.0
%
$
7,027,476
100.0
%
$
5,206,760
100.0
%
Cost of services
1,434,066
76.8
%
1,077,881
79.4
%
5,551,065
79.0
%
4,216,251
81.0
%
Gross profit
433,738
23.2
%
279,685
20.6
%
1,476,411
21.0
%
990,509
19.0
%
SG&A
207,635
11.1
%
160,026
11.8
%
730,072
10.4
%
574,423
11.0
%
Gain on sale of assets
(252)
—
(619)
—
(3,030)
—
(2,302)
—
Operating income
226,355
12.1
%
120,278
8.9
%
749,369
10.7
%
418,388
8.0
%
Interest income (expense), net
3,286
0.2
%
650
—
4,906
0.1
%
(6,789)
(0.1)
%
Changes in the fair value of contingent earn-out obligations
(43,712)
(2.3)
%
(9,400)
(0.7)
%
(88,146)
(1.3)
%
(23,607)
(0.5)
%
Other income, net
109
—
201
—
432
—
202
—
Income before income taxes
186,038
10.0
%
111,729
8.2
%
666,561
9.5
%
388,194
7.5
%
Provision for income taxes
40,168
20,148
144,128
64,796
Net income
$
145,870
7.8
%
$
91,581
6.7
%
$
522,433
7.4
%
$
323,398
6.2
%
Income per share
Basic
$
4.10
$
2.56
$
14.64
$
9.03
Diluted
$
4.09
$
2.55
$
14.60
$
9.01
Shares used in computing income per share:
Basic
35,601
35,752
35,689
35,802
Diluted
35,692
35,852
35,775
35,895
Dividends per share
$
0.350
$
0.250
$
1.200
$
0.850
Supplemental Non-GAAP Information — (Unaudited) (In Thousands, Except per Share Amounts)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2024
2023
2024
2023
Net income
$
145,870
$
91,581
$
522,433
$
323,398
Tax gains related to prior years
—
—
—
(10,761)
Tax-related SG&A costs, net of tax
—
—
—
1,063
Net income excluding tax gains
$
145,870
$
91,581
$
522,433
$
313,700
Diluted income per share
$
4.09
$
2.55
$
14.60
$
9.01
Tax gains related to prior years
—
—
—
(0.30)
Tax-related SG&A costs, net of tax
—
—
—
0.03
Diluted income per share excluding tax gains
$
4.09
$
2.55
$
14.60
$
8.74
Note: Net income excluding tax gains and diluted income per share excluding tax gains are presented because the Company believes they reflect the results of the core ongoing operations of the Company, and we believe they are responsive to frequent questions we receive from third parties. These amounts, however, are not considered primary measures of an entity’s financial results under generally accepted accounting principles, and accordingly, they should not be considered an alternative to operating results as determined under generally accepted accounting principles and as reported by the Company.
Supplemental Non-GAAP Information — Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) — (Unaudited) (In Thousands)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2024
%
2023
%
2024
%
2023
%
Net income
$
145,870
$
91,581
$
522,433
$
323,398
Provision for income taxes
40,168
20,148
144,128
64,796
Other expense (income), net
(109)
(201)
(432)
(202)
Changes in the fair value of contingent earn-out obligations
43,712
9,400
88,146
23,607
Interest expense (income), net
(3,286)
(650)
(4,906)
6,789
Gain on sale of assets
(252)
(619)
(3,030)
(2,302)
Tax-related SG&A costs
—
—
—
1,345
Amortization
22,042
11,131
97,266
43,404
Depreciation
12,842
10,445
48,219
38,162
Adjusted EBITDA
$
260,987
14.0
%
$
141,235
10.4
%
$
891,824
12.7
%
$
498,997
9.6
%
Note: The Company defines adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”) as net income, provision for income taxes, other expense (income), net, changes in the fair value of contingent earn-out obligations, interest expense (income), net, gain on sale of assets, goodwill impairment, other one-time expenses or gains and depreciation and amortization. Other companies may define Adjusted EBITDA differently. 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)
December 31,
December 31,
2024
2023
Cash and cash equivalents
$
549,939
$
205,150
Billed accounts receivable, net
1,861,212
1,318,926
Unbilled accounts receivable, net
95,786
72,774
Costs and estimated earnings in excess of billings, net
91,681
28,084
Other current assets, net
191,623
286,166
Total current assets
2,790,241
1,911,100
Property and equipment, net
277,180
208,568
Goodwill
875,270
666,834
Identifiable intangible assets, net
434,417
280,397
Other noncurrent assets
333,980
238,680
Total assets
$
4,711,088
$
3,305,579
Current maturities of long-term debt
$
6,042
$
4,867
Accounts payable
654,943
419,962
Billings in excess of costs and estimated earnings and deferred revenue
1,149,257
909,538
Other current liabilities
772,528
386,838
Total current liabilities
2,582,770
1,721,205
Long-term debt
62,293
39,345
Other long-term liabilities
361,349
267,200
Total liabilities
3,006,412
2,027,750
Total stockholders’ equity
1,704,676
1,277,829
Total liabilities and stockholders’ equity
$
4,711,088
$
3,305,579
Selected Cash Flow Data (Unaudited) (In Thousands)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2024
2023
2024
2023
Cash provided by (used in):
Operating activities
$
210,463
$
173,008
$
849,057
$
639,568
Investing activities
$
(39,489)
$
(73,883)
$
(343,509)
$
(193,008)
Financing activities
$
(36,618)
$
(31,598)
$
(160,759)
$
(298,624)
Free cash flow:
Cash from operating activities
$
210,463
$
173,008
$
849,057
$
639,568
Purchases of property and equipment
(40,676)
(25,264)
(111,071)
(94,838)
Proceeds from sales of property and equipment
1,927
858
5,538
5,951
Free cash flow
$
171,714
$
148,602
$
743,524
$
550,681
Note: Free cash flow is defined as cash flow from operating activities less customary capital expenditures, plus the proceeds from asset sales. Other companies may define free cash flow differently. 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.
Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 0 | — | — |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 0 | — | — |
| Recession recession, downturn, contraction, slowdown | 0 | — | — |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 0 | — | — |
| Buybacks share repurchase, buyback program | 0 | — | — |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Source: SEC EDGAR · public domain · Highlights by Palanor