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Sep 30, 2020
Comfort Systems USA Q3 2020 Earnings Report
Reported increased earnings and strong cash flow despite challenges from the global pandemic.
Key Takeaways
Comfort Systems USA reported a strong third quarter with increased earnings and phenomenal cash flow, despite the challenges of the global pandemic. Revenue slightly increased, and the company anticipates full-year results will surpass record results from 2019.
Net income for the quarter was $50.1 million, or $1.36 per diluted share, compared to $36.2 million, or $0.98 per diluted share, for the same quarter last year.
Revenue for the quarter was $714.1 million, up from $706.9 million in the prior year.
Operating cash flow was $52.6 million, compared to $73.1 million in the prior year.
Backlog as of September 30, 2020, was $1.43 billion, compared to $1.61 billion as of September 30, 2019.
Comfort Systems USA
Comfort Systems USA
Forward Guidance
The Company expects full-year 2020 results will significantly surpass record results in 2019, with solid profitability and cash flow in 2021. However, incremental challenges are expected during the first half of 2021 due to potential delays in project bookings and starts.
Positive Outlook
- Full-year 2020 results will significantly surpass record results in 2019.
- Confident of solid profitability in 2021.
- Confident of solid cash flow in 2021.
- Bidding activity is good.
- Service operations are near pre-pandemic levels with strong profitability.
Challenges Ahead
- Potential for air pockets resulting from delays in project bookings.
- Potential for air pockets resulting from delays in project starts.
- Expect incremental challenges during the first half of 2021.
- Continue to prepare for a wide range of economic circumstances over the coming quarters.
- Decline in backlog reflects delays in bookings and starts at certain of our large project companies