Net cash provided by operating activities (USD, thousands)

Net cash used in investing activities (USD, thousands)

Net cash used in financing activities (USD, thousands)

Purchases of property and equipment (USD, thousands)

Proceeds from sales of property and equipment (USD, thousands)

10e90e788e78394ec51afbce253a8618ea72e8cfd422284e372cf1d9ddb96c1a

The **surge in cash and cash equivalents to 415,583** in Q3 2024 was driven by several key factors: **strong operating cash flow** (with operating cash from activities increasing from **466,560** to **638,594** over nine months), significant **net income growth** (rising from **231,817** to **376,563**), and favorable **changes in working capital** such as increases in **accounts payable and accrued liabilities** by **323,756** and **billings in excess of costs** by **80,448**. These elements collectively helped offset the outflows from investing and financing activities, leading to the notable increase in cash balances.  **[0001558370-24-013619_fix-20241024xex99d1.htm:7]** **[0001558370-24-013635_fix-20240930x10q.htm:6]** 

Why did Cash and cash equivalents surge to 415,583 in Q3 2024?

The **long-term debt** nearly doubled in Q1 2024 mainly due to **cash payments for acquisitions**—specifically, the **Summit and J & S acquisitions** completed in February 2024—and the issuance of **notes to former owners** as part of the acquisition financing process.  **[0001558370-24-005764_fix-20240425xex99d1.htm:6]** **[0001558370-24-005763_fix-20240331x10q.htm:2]** **[FIX_3381225_3]** **[0001558370-24-005763_fix-20240331x10q.htm:17]** 

What drove Long-term debt to almost double in Q1 2024?

The sharp rise in **Total assets** in Q3 2024 was primarily driven by several factors. **Acquisitions** played a key role, as seen by the significant increases in **goodwill** (from **$666,834 thousand** to **$875,193 thousand**) and **identifiable intangible assets** (from **$280,397 thousand** to **$456,459 thousand**), reflecting deals including Summit Industrial Construction, LLC, J&S, and DECCO.  **[0001558370-24-013619_fix-20241024xex99d1.htm:7]** **[0001558370-24-013635_fix-20240930x10q.htm:19]** **[0001558370-24-013635_fix-20240930x10q.htm:33]**  Additionally, a robust increase in **cash and cash equivalents** (from **$205,150 thousand** to **$415,583 thousand**), supported by solid operating cash flow of **$638,594 thousand**, contributed to these gains.  **[0001558370-24-013619_fix-20241024xex99d1.htm:7]** **[0001558370-24-013635_fix-20240930x10q.htm:2]** **[0001558370-24-013619_fix-20241024xex99d1.htm:0]**  Moreover, higher **accounts receivable**, increased **costs and estimated earnings in excess of billings** (rising from **$28,084 thousand** to **$73,934 thousand**), and enhanced **property and equipment, net** (increasing from **$208,568 thousand** to **$250,150 thousand**) further bolstered the total assets during this period.  **[0001558370-24-013619_fix-20241024xex99d1.htm:7]** **[0001558370-24-013635_fix-20240930x10q.htm:2]** **[0001558370-24-013635_fix-20240930x10q.htm:14]** 

What factors contributed to the sharp rise in Total assets in Q3 2024?

The drop in **Cash and cash equivalents** to **100,792 thousand** in Q1 2024 was primarily driven by **significant cash outflows in investing activities**, most notably a substantial increase in cash paid for acquisitions—including the purchases of Summit Industrial and J & S Mechanical in February 2024—which far outweighed the strong cash flow from operating activities. Additionally, even though financing activities saw a lower cash outflow compared to the previous year, together with the impact of reversing large advanced payments and pre-bookings, these factors contributed to the overall reduction in cash balances.  **[0001558370-24-005763_fix-20240331x10q.htm:5]** **[FIX_3381225_1]** **[0001558370-24-005763_fix-20240331x10q.htm:32]** **[0001558370-24-005764_fix-20240425xex99d1.htm:6]** 

Why did Cash and cash equivalents drop to 100,792 in Q1 2024?

b20c90d4d470c2163abc4fe68a632ba1171f71644d70e25ecc37e0667220a204

**In Q4 2023, the interest expense was low primarily due to a significant decrease in the company's average outstanding debt balance and an improved financial position, which led to no outstanding borrowings on its revolving credit facility. Additionally, while there was an increase in average interest rates that partially offset the decrease, these factors together resulted in notably lower interest expenses.  **[0001558370-24-001529_fix-20231231x10k.htm:83]** **[0001558370-24-001529_fix-20231231x10k.htm:48]** **

Why was Interest expense so low in Q4 2023?

The jump in **Basic income per share** in Q2 2024 was driven by several factors. **Higher net income** (up nearly **93%** from Q2 2023, rising from **$69.5 million** to **$134.0 million**) played a major role. In addition, **revenue growth** from **$1.30 billion** to **$1.81 billion** boosted earnings, while **improved margins** (with gross profit margins moving from **17.6%** to **20.1%**) and more efficient expense control (SG&A expenses as a percentage of revenue decreasing from **10.5%** to **9.9%**) further supported the increase.  **[0001104659-24-085357_tm2420602d1_ex99-1.htm:5]** **[FIX_3394762_1]** **[0001558370-24-010175_fix-20240725xex99d1.htm:0]** **[0001558370-24-010175_fix-20240725xex99d1.htm:5]** 

What drove the jump in Basic income per share in Q2 2024?

The significant rise in **net income** in Q1 2024 was driven by several factors. **Revenue increased by 31%** year-over-year, fueled by **23% same-store revenue growth** and the impact of acquisitions contributing **$96 million** to revenue.  **[FIX_3381225_3]** **[0001558370-24-005764_fix-20240425xex99d1.htm:0]** **[FIX_3381225_2]**  **Gross profit margins improved**—with the electrical segment margins rising from **16.1% to 22.6%** and improvements in the mechanical segment—boosting overall profitability.  **[FIX_3381225_2]**  Additionally, **operating income surged by 91%** (from **$71 million** to **$135 million**) due to enhanced gross margins and more efficient SG&A expense management, while **adjusted EBITDA nearly doubled** (from **$90,312 thousand** to **$169,807 thousand**), reflecting strong operational performance.  **[FIX_3381225_2]** **[0001558370-24-005763_fix-20240331x10q.htm:30]** **[0001104659-24-055728_tm2413158d2_ex99-1.htm:7]**  Finally, **favorable market conditions**, such as strong demand in key segments and beneficial weather patterns, also played a role in driving the improved performance.  **[FIX_3381225_2]** **[0001558370-24-005763_fix-20240331x10q.htm:31]** 

What contributed to the significant rise in Net income in Q1 2024?

The **Q1 2024 revenue growth** was driven by several key factors. First, **same-store revenue growth** increased by **22.7%**, contributing **$266 million** primarily due to strong performance in the **technology** and **manufacturing sectors**, including high demand from **data centers**, **chip plants**, **food**, and **pharmaceuticals**. Second, revenue from **acquisitions** added an additional **8.1%**, or **$96 million**, to the growth. Additionally, both the **Mechanical** and **Electrical segments** saw significant gains—with the mechanical segment bolstered by robust same-store and acquisition-driven revenue in regions like Texas, North Carolina, and Virginia, and the electrical segment benefiting from rising activity due to increased demand in Texas and North Carolina. Lastly, **favorable market conditions** across key sectors such as **technology**, **life sciences**, **manufacturing**, and **healthcare**, combined with supportive weather conditions, further propelled the overall revenue increase.  **[FIX_3381225_2]** **[0001558370-24-005763_fix-20240331x10q.htm:28]** 

What factors drove the strong revenue growth in Q1 2024?

The significant increase in operating income in Q3 2024 was driven by several factors. **Revenue Growth** played a major role, with revenue rising by **32%** from **$1,378,124 thousand in Q3 2023** to **$1,812,366 thousand in Q3 2024**. Additionally, **gross profit improved** by **$104,215 thousand** (from **$277,499 thousand** to **$381,714 thousand**), and the gross profit margin increased from **20.1% to 21.1%**. This improvement was partially due to more effective cost management, particularly through **SG&A expense leverage**—with SG&A expenses declining as a percentage of revenue from **10.4% to 9.9%**. Moreover, strong performance in key business segments, where the Mechanical segment achieved a **39% revenue increase** and the Electrical segment experienced an **8% increase**, further contributed to the overall increase in operating income.  **[0001558370-24-013635_fix-20240930x10q.htm:3]** **[FIX_3403995_2]** **[0001558370-24-013635_fix-20240930x10q.htm:34]** **[0001558370-24-013635_fix-20240930x10q.htm:33]** 

Why did Operating income experience a significant increase in Q3 2024?

99b96401c43ed908dd0b9fbb2cf1c4dbdc5b7d3fad49430f4fa5cd5dec5c41d7

Revenue (USD, thousands)

Cost of Services (USD, thousands)

Gross profit (USD, thousands)

Selling, General and Administrative Expenses (USD, thousands)

Gain on Sale of Assets (USD, thousands)

Operating income (USD, thousands)

Changes in the fair value of contingent earn-out obligations (USD, thousands)

Other income (expense) (USD, thousands)

Income before income taxes (USD, thousands)

Provision for income taxes (USD, thousands)

Net income (USD, thousands)

Basic income per share (USD)

Diluted income per share (USD)

Basic shares used in computing income per share (thousands)

Diluted shares used in computing income per share (thousands)

c4a7cd5cb3ad754d0b6b84cf3034c88e41e551d4e0891ddbb6cbfbcaef3c0e2e

3c465260a78d65e9797d0a18fa01f3106de6469a3c203f1680373540e854f9f7

Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

0826b0e5da54aeb5cff57c3191daea76a90eee7c1cfa6fdc6e4759422b6bd282

2a48811846da7c607772b5d187bb18f63075fd80c08890d212964b788926deef

5a94a80cba04b246a2a4bdb90f16b69057a7fdae124cc2fa9b459fa20f174c13

ad46941872439fca648f845e07cfe5c92ea098f130191842d70de0ac2aa1d0b0

COMFORT SYSTEMS USA (FIX)

Financials