Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (November 2023)
22 slides from Comfort Systems Usa's investor presentation, Nov 1, 2023
Slide 1: Quality People. Building Solutions.
SOLrREU A Quality People. Building Solutions. NYSE: FIX November 1, 2023 COMFORT SYSTEMS UA
Slide 2: Forward-looking statements
Certain statements and information in this presentation 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 i
Slide 3: Leading national MEP installation and service provider
• Leading national mechanical, electrical and plumbing (“MEP”) installation and service provider • ~$5 billion yearly revenue • 15,000+ employees • History of profitable growth • Advantageous mechanical, electrical, and modular construction and service portfolio
Slide 4: National Footprint
NATIONAL FOOTPRINT 17 2 locations | 13 1 cities | 1 5 9 0 0 0 + employees
Slide 5: YTD 2023 Revenue and Gross Profit
YTD 2023 Revenue = $3.85B YTD 2023 Gross Profit = $710.8 Million
Slide 6: Revenue Breakdown - YTD 2023
REVENUE BREAKDOWN - YTD 2023 YTD 2023 Revenue = $3.85B Modular 15% ACTIVITY MARKET SECTOR rose s % ervice Retail Projects Ry 6% Healthcare S, 2% y ce) Service and © Maintenance 11% aos ks % Education a %. e Government 6% Technology 21% New Construction Manufacturing 40% BEL SOMFORTUGA.
Slide 7: Construction Backlog
CONSTRUCTION BACKLOG (Sin millions) $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $ $763 $948 $1,166 $1,602 $1,511 $2,312 2016 2017 2018 2020 2021 2022
Slide 8: Service Maintenance Base
SERVICK MAINTENANCE BASE (Sin millions) $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 $111 $116 $123 $127 $130 $147 $161 $164 2016 2017 2018 2020 2021 2022 Q3 2023 7 SOvFoRZ USA.
Slide 9: Financial summary
($ in millions, except per share information) (1) Adjusted EPS is a non-GAAP financial measure. Adjusted EPS excludes tax gains. See Appendix II for a GAAP reconciliation to Adjusted EPS. (2) Adjusted EBITDA is a non-GAAP financial measure. See Appendix I for a GAAP reconciliation to Adjusted EBITDA
Slide 10: Cash flow
($ Millions) (Unaudited) - TTM operating cash flow far exceeds TTM net income - At 9/30/23, we have a very substantial amount of unearned customer cash - Over the coming quarters, we expect pre-bookings and equipment advances will normalize creating cash flow headwind
Slide 11: Balance sheet and liquidity
• Positive free cash flow for 24 consecutive years • Increased dividend for 11 consecutive years • Debt/TTM EBITDA = 0.10 • $137.6 M cash at September 30, 2023 • $47.3 M total debt at September 30, 2023 • Debt capacity – No borrowings at 9/30/23 – $850M senior credit facility – 2027 maturity
Slide 12: Capital Allocation
CAPITAL ALLOCATION (Sin thousands) AVERAGE 2007 - 2022 $10,611 10% $15,505 15% $77,414 75% = Acquisitions = Share Repurchases = Dividends 11 COMFORT SYSTEMS USA.
Slide 13: Capital Returned
CAPITAL RETURNED (S in thousands) FISCAL PERIODS SHARE REPURCHASES DIVIDENDS CAPITAL RETURNED 2015 $8,330 $9,358 $17,688 2016 $13,088 $10,264 $23,352 2017 $9,007 $10,987 $19,994 2018 $28,533 $12,268 $40,801 2019 $19,550 $14,543 $34,093 2020 $30,120 $15,499 $45,619 2021 $27,054 $17,384 $44,438 2022 $
Slide 14: Key end markets and demand drivers
• Technology – Data Centers and Chip Manufacturing • Life Sciences - Pharmaceuticals • Food Processing • Manufacturing • Healthcare • EV Battery • Industrial • Re-Shoring • Indoor Air Quality • Service • Modular
Slide 15: ¢ = Of te ff on | & ad
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Slide 16: Planet, Partners, People
Our environmental, social and corporate governance (ESG) goals are embedded in how we operate as a business – they are part of our very foundation and core values of being safe, honest, respectful, collaborative, and innovative – and we have diligently sought to develop transparent disclosures to su
Slide 17: Innovation and technology
• Pilots of emerging technologies • Partnerships with industry leading tech firms • Data analytics to drive business insights • Investments in advanced BIM technologies • EAS & TAS modular construction • Mobile technology deployment in service • Early adoption of BIM • Industry-leading prefabricatio
Slide 18: Core values
Be safe Be honest Be respectful Be innovative Be collaborative
Slide 19: Investment highlights
• Consistent free cash flow • Strong Balance Sheet • Acquisition record • Attractive geographies • Leading innovation • Profitable growth
Slide 20: Company summary and contact
15,000+ of the most qualified HVAC and electrical contracting personnel in America 44 operating companies across America at Approximately $5 billion in yearly revenue 172 locations in 131 cities Julie Shaeff Chief Accounting Officer 1-800-723-8431 ir@comfortsystemsusa.com www.comfortsystemsusa.com
Slide 21: Appendix I: Adjusted EBITDA reconciliation
($ in thousands) Note: The Company defines adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”) as net income, provision for income taxes, other expense (income), net, changes in the fair value of contingent earn-out obligations, interest expense, net, gain on
Slide 22: Appendix II: Adjusted EPS reconciliation
Note: Diluted income per share excluding tax gains is presented because the Company believes it reflects the results of the core ongoing operations of the Company, and we believe it is responsive to frequent questions we receive from third parties. This measure, however, is not considered a primary
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