Comfort Systems USA, Inc.

Welcome to the Quarter 4 2020 Comfort Systems USA Earnings Conference call. During your presentation, your lines remain on listen only. If you require assistance at any time, please key star zero on your telephone and a coordinator will be happy to assist you. I would like to advise all parties that this call has been recorded for replay purposes. And now I'd like to welcome to the host of today, Julie Shafe, Chief Accounting Officer. Please proceed.

Thanks, Benny. Good morning. Welcome to Comfort Systems USA's fourth quarter and full year 2020 earnings call. Our comments this morning as well as our press releases contain forward-looking statements within the meaning of the Private Securities Litigation Act of 1995. What we will say today is based on the current plans and expectations of Comfort Systems USA. Those plans and expectations include risks and uncertainties that might cause actual future activities and results of our operations to be materially different from those set forth in our comments. You can read a more detailed listing and commentary concerning our specific risk factors in our most recent form 10-K as well as in our press release covering these earnings. A slide presentation has been provided as a companion to our remarks. The presentation is posted on the investor relations section of the company's website found at ComfortSystemsUSA.com. Joining me on the call today are Brian Lane, President and Chief Executive Officer, and Bill George, Chief Financial Officer. Brian will open our remarks.

Okay, thanks, Julie. Good morning, everyone, and thank you for joining us on the call today. Due to the commitment and resilience of our people, we were able to overcome unprecedented challenges during 2020 to achieve record earnings and cash flows. In addition to the ongoing challenges from the pandemic, our people and organizations also experienced and overcame significant adversity in Texas just last week. In 2020, we earned more than 20% of our revenue in Texas, where we have multiple strong mechanical capabilities in many markets, and Texas is also the home to our largest electrical team. Virtually all of our operations were closed for at least three full days with lots of productivity throughout last week. We are now back to full capacity. I am deeply grateful for the courage and perseverance that our field employees demonstrated last week in Texas and in many other markets that experienced terrible weather. And I am in awe of our field workforce's grit and perseverance through COVID. as every day our essential workers overcame the challenges they faced. We continue to work hard to keep our workforce and our community safe and healthy every day. 2020 was a record year for Comfort Systems USA. We finished the year with strong fourth quarter earnings per share of $1.17, and for the full year we earned $4.09. This marks the highest annual EPS in the history of our company, even without our tax and valuation gain. Revenue for full year 2020 was also a record at $2.9 billion. Our backlog is up slightly since September, and we have very good ongoing bidding activity as we start 2021. Our 2020 free cash flow was an unprecedented $265 million, and yesterday we again announced an increase in our dividend. At the end of 2020, we acquired a Tennessee electric company headquartered in Kingsport, Tennessee, and we expect they will contribute $90 million to $100 million of revenues in 2021. This acquisition was closed on December 31, 2020, so their balance sheet and backlog are included as of the last day of December. TEC is a strong electrical and mechanical contractor, but TEC also brings unique industrial construction and plant service expertise and relationships with complex industrial clients. Their results will be reported in our electrical segment starting in 2021. In December, we promoted Trent McKenna to Chief Operating Officer. Trent has been with Comfort Systems USA for 16 years, and I believe he will be a valuable leader as we continue to grow and improve our operations. By the way, I am not going anywhere, but this added depth will provide much needed bandwidth to our senior team. Before I review our operating results and prospects, I want to ask Bill to review our financial performance.