Comfort Systems USA, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Comfort Systems USA, Inc. has filed its 2023 10-K report detailing financial performance and operational activities for the fiscal year ending December 31, 2023.</b>

AI Summary

COMFORT SYSTEMS USA INC (FIX) filed a Annual Report (10-K) with the SEC on February 22, 2024. Comfort Systems USA, Inc. filed its 2023 Form 10-K on February 22, 2024. The filing covers the fiscal year ending December 31, 2023. Key financial data and operational details for the fiscal year 2023 are presented. The report includes information on stock repurchase programs initiated in 2007. Subsequent events, including acquisitions, are noted with dates in early 2024.

Why It Matters

For investors and stakeholders tracking COMFORT SYSTEMS USA INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Comfort Systems USA's financial health and strategic initiatives throughout 2023, crucial for investors assessing the company's performance and future outlook. The inclusion of subsequent events, such as acquisitions in early 2024, offers timely insights into the company's ongoing growth strategy and potential impact on future financial results.

Risk Assessment

Risk Level: medium — COMFORT SYSTEMS USA INC shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive annual report. While it contains detailed financial information, it does not inherently signal immediate high risk, but the complexity and scope of a 10-K necessitate careful review for potential risks.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand the company's performance drivers and potential challenges for 2024.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed Period of Report)
• 2024-02-22 — Filing Date (Filed as of Date)
• 350000 — Contingent Consideration Liability (Change in amount of contingent consideration liability)
• 2007-03-29 — Stock Repurchase Program Start Date (fix:StockRepurchaseProgram2007Member)

Key Players & Entities

• COMFORT SYSTEMS USA INC (company) — Filer
• 20231231 (date) — Conformed Period of Report
• 20240222 (date) — Filed as of Date
• Mechanical Contractors Inc JS (company) — Subsequent Event
• Industrial Construction LLC Summit (company) — Subsequent Event

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — End of reporting period for the 10-K
• 2024-02-22: Filing Date — Date the 10-K was officially filed with the SEC
• 2024-02-01: Subsequent Event — Acquisition of Mechanical Contractors Inc JS and Industrial Construction LLC Summit

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This filing provides the official annual financial and operational overview of Comfort Systems USA for 2023.)

Contingent Consideration Liability

An obligation that may arise depending on the outcome of a future event. (The filing notes a change in this liability, indicating potential adjustments related to past business combinations.)

Key Financial Figures

• $164.20 — roximately $ 5.75 billion, based on the $164.20 last sale price of the registrant's com
• $350 billion — e in the United States of approximately $350 billion. Mechanical and electrical systems are
• $12.0 billion — gregate contract value of approximately $12.0 billion. Our average project takes six to nine
• $1.1 million — average contract price of approximately $1.1 million. This average project size, when taken
• $2 million — 2023 with contract prices in excess of $2 million. Our largest project in progress at Dec
• $149.6 million — cember 31, 2023 had a contract price of $149.6 million. Project contracts typically provide fo

Filing Documents

• fix-20231231x10k.htm (10-K) — 2803KB
• fix-20231231xex10d34.htm (EX-10.34) — 41KB
• fix-20231231xex21d1.htm (EX-21.1) — 146KB
• fix-20231231xex23d1.htm (EX-23.1) — 3KB
• fix-20231231xex31d1.htm (EX-31.1) — 15KB
• fix-20231231xex31d2.htm (EX-31.2) — 15KB
• fix-20231231xex32d1.htm (EX-32.1) — 7KB
• fix-20231231xex32d2.htm (EX-32.2) — 7KB
• fix-20231231xex97.htm (EX-97) — 44KB
• fix-20231231x10k002.jpg (GRAPHIC) — 60KB
• 0001558370-24-001529.txt (&nbsp;) — 12788KB
• fix-20231231.xsd (EX-101.SCH) — 79KB
• fix-20231231_cal.xml (EX-101.CAL) — 86KB
• fix-20231231_def.xml (EX-101.DEF) — 302KB
• fix-20231231_lab.xml (EX-101.LAB) — 743KB
• fix-20231231_pre.xml (EX-101.PRE) — 525KB
• fix-20231231x10k_htm.xml (XML) — 2469KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 10 Item 1B. Unresolved Staff Comments 22 Item 1C. Cybersecurity 23 Item 2.

Properties

Properties 24 Item 3.

Legal Proceedings

Legal Proceedings 24 Item 4. Mine Safety Disclosures 25 Item 4A. Executive Officers of the Registrant 25 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 26 Item 6. Reserved 28 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 28 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 40 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 41 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 75 Item 9A.

Controls and Procedures

Controls and Procedures 75 Item 9B. Other Information 78 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 78 Part III Item 10. Directors, Executive Officers and Corporate Governance 78 Item 11.

Executive Compensation

Executive Compensation 78 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 78 Item 13. Certain Relationships and Related Transactions, and Director Independence 78 Item 14. Principal Accounting Fees and Services 78 Part IV Item 15. Exhibits and Financial Statement Schedules 78 Item 16. Form 10-K Summary 78 1 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Certain statements and information in this Annual Report on Form 10-K may constitute forward looking statements within the meaning of 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 Annual Report on Form 10-K. 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 Annual Report on Form 10-K, 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

Business

ITEM 1. Business Comfort Systems USA, Inc., a Delaware corporation, was established in 1997. We provide mechanical and electrical contracting services. Our mechanical segment principally includes heating, ventilation and air conditioning ("HVAC"), plumbing, piping and controls, as well as off-site construction, monitoring and fire protection. Our electrical segment includes installation and servicing of electrical systems. We build, install, maintain, repair and replace mechanical, electrical and plumbing ("MEP") systems throughout our 44 operating units with 172 locations in 131 cities throughout the United States. We operate primarily in the commercial, industrial and institutional MEP markets and perform most of our services in manufacturing, healthcare, education, office, technology, retail and government facilities. Substantially all of our consolidated 2023 revenue was derived from commercial, industrial and institutional customers and multi-family residential projects. Approximately 54.8% of our revenue was attributable to installation services in newly constructed facilities and 45.2% was attributable to renovation, expansion, maintenance, repair and replacement services in existing buildings. Our consolidated 2023 revenue was derived from the following service industries: Percentage of Service Activity Revenue Mechanical Services 75.8 % Electrical Services 24.2 % Total 100.0 % Industry Overview We believe that commercial, industrial, and institutional mechanical and electrical contracting generate annual revenue in the United States of approximately $350 billion. Mechanical and electrical systems are necessary to virtually all commercial, industrial and institutional buildings. Because most buildings are sealed, HVAC systems provide the primary method of circulating fresh air in such buildings. Replacing an aging building's existing systems with modern, energy-efficient systems significantly reduces a building's energy consumption, c

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View this 10-K filing on SEC EDGAR