Comfort Systems Usa (FIX) has reported a 33.17 percent plunge in profit for the quarter ended Sep. 30, 2014. The company has earned $7.60 million, or $0.20 a share in the quarter, compared with $11.38 million, or $0.30 a share for the same period last year.
Revenue during the quarter grew 5.76 percent to $370.14 million from $349.99 million in the previous year period. Gross margin for the quarter contracted 119 basis points over the previous year period to 17.95 percent.
Total expenses were 96.01 percent of quarterly revenues, up from 94.93 percent for the same period last year. That has resulted in a contraction of 107 basis points in operating margin to 3.99 percent.
Operating income for the quarter was $14.78 million, compared with $17.73 million in the previous year period.
Cash Flow
Comfort Systems Usa has generated cash of $37.48 million from operating activities during the nine month period, up 57.61 percent or $13.70 million, when compared with the last year period.
The company has spent $68.34 million cash to meet investing activities during the nine month period as against cash outgo of $11.86 million in the last year period. It has incurred net capital expenditure of $14.14 million on net basis during the nine month period, up 18.82 percent or $2.24 million from year ago period.
Cash flow from financing activities was $22.68 million for the nine month period as against cash outgo of $7.37 million in the last year period. It has borrowed net of $39.78 million through debt. It has spent net of $5.18 million on repurchase of common stocks.
Cash and cash equivalents stood at $43.88 million as on Sep. 30, 2014, down 3.14 percent or $1.42 million from $45.30 million on Sep. 30, 2013.
Working Capital
Comfort Systems Usa has recorded an increase in the working capital over the last year. It stood at $131.02 million as at Sep. 30, 2014, up 6.89 percent or $8.44 million from $122.58 million on Sep. 30, 2013. Current ratio was at 1.47 as on Sep. 30, 2014, up from 1.46 on Sep. 30, 2013.
Cash conversion cycle (CCC) has decreased to 46 days for the quarter from 47 days for the last year period. Days sales outstanding went down to 75 days for the quarter compared with 76 days for the same period last year.
Days inventory outstanding was almost stable at 3 days for the quarter, when compared with the last year period. At the same time, days payable outstanding was almost stable at 31 days for the quarter, when compared with the previous year period.
Debt Level
Comfort Systems Usa has witnessed an increase in total debt over the last one year. It stood at $42.93 million as on Sep. 30, 2014, up 758.68 percent or $37.93 million from $5 million on Sep. 30, 2013.
Total debt was 6.54 percent of total assets as on Sep. 30, 2014, compared with 0.84 percent on Sep. 30, 2013. Debt to equity ratio was at 0.14 as on Sep. 30, 2014, up from 0.02 as on Sep. 30, 2013. Interest coverage ratio decreased to 26.35 for the quarter from 51.11 for the same period last year.
