Yahoo Finance Comfort Systems USA Inc (FIX) (Q1 2024) Earnings Call Transcript Highlights: Stellar Growth and ...
Revenue: $1.5 billion, a 31% increase year-over-year.
Net Income: $96 million, up from $57 million in Q1 2023.
Earnings Per Share (EPS): $2.69, compared to $1.59 in the previous year.
Same-Store Sales: Increased by 23%.
Gross Margin: Improved to 19.3% from 17.5% in Q1 2023.
EBITDA: $170 million, significantly higher than $90 million in Q1 2023.
Free Cash Flow: $123 million for the quarter.
Dividend: Increased by 20% to $0.30 per share.
Backlog: Reached a record $5.9 billion, up 33% year-over-year.
Release Date: April 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss the potential for margin expansion over the rest of the year? A: (Brian Lane, President and CEO) - We're pleased with our current margins, which are in the 18% to 20% range. We expect to maintain this level throughout the year, with some fluctuations. (William George, CFO) - We anticipate EBITDA margins for the full year to stay near last year's levels, despite facing tougher comparables in the second half of the year.
Q: What end markets drove the strong organic backlog growth this quarter, and can we expect backlog to continue increasing sequentially? A: (Brian Lane, President and CEO) - The growth was broad-based across multiple sectors, including tech, manufacturing, education, and healthcare. (William George, CFO) - While demand remains high, historically, backlogs tend to decline sequentially in the middle of the year.
Q: How are the Summit and J&S acquisitions integrating into your business, and what is your appetite for more deals through the year? A: (Brian Lane, President and CEO) - Both companies are integrating well, benefiting from their sophisticated operations and great leadership. We continue to look for acquisition opportunities. (William George, CFO) - Integration focuses on preserving what's great about these companies.
Q: Could you provide an update on the bidding environment and pricing for potential projects? A: (Brian Lane, President and CEO) - The bidding environment remains robust and pricing is reasonable. We continue to be selective, focusing on projects that match our strengths.
Q: Can you discuss the current state of the data center market and your capacity for modular expansion? A: (William George, CFO) - Demand for modular construction in data centers remains high. We are evaluating further capacity expansion but have not made specific plans yet.
Q: What are your thoughts on EBITDA margin trends and the lack of seasonality observed in Q1? A: (William George, CFO) - While EBITDA margins typically rise from Q1 to Q2, the extraordinary results in Q1 make it uncertain if this trend will continue. We aim to perform better this year compared to last.
These highlights from the Q&A session of Comfort Systems USA's earnings call provide insights into the company's financial health, strategic acquisitions, market dynamics, and future expectations.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
