Comfort Systems USA Q1 2022 Earnings Report
Key Takeaways
Comfort Systems USA reported a strong start to 2022, with revenue increasing to $885.2 million and net income reaching $86.8 million, or $2.40 per diluted share. The company's backlog grew to $2.73 billion, reflecting solid demand for its services. Operating cash flow was $63.7 million for the quarter.
Revenue for the first quarter of 2022 was $885.2 million, up from $669.8 million in 2021.
Net income for the quarter ended March 31, 2022, was $86.8 million, or $2.40 per diluted share, compared to $26.5 million, or $0.73 per diluted share, for the same period in 2021.
Backlog as of March 31, 2022, reached $2.73 billion, compared to $1.66 billion as of March 31, 2021.
Operating cash flow for the current quarter was $63.7 million, compared to $84.6 million in 2021.
Comfort Systems USA
Comfort Systems USA
Forward Guidance
The company is optimistic that 2022 revenue and earnings will benefit from the very strong backlog and years of investment in its existing and new businesses.
Positive Outlook
- Teams continue to achieve superb execution across our markets.
- Same-store revenue increased substantially.
- New work commencing across our footprint.
- Bookings once again increased significantly.
- Several terrific new companies joined us recently, and they are making a big contribution to our culture and our results.
Challenges Ahead
- 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.
- The Company’s business being negatively affected by health crises or outbreaks of disease, such as epidemics or pandemics (and related impacts, such as vaccine mandates or supply chain disruptions);