Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (August 2013)
29 slides from Comfort Systems Usa's investor presentation, Aug 13, 2013
Slide 1: Comfort Systems USA
Comfort Systems USA (NYSE: FIX) August 13, 2013
Slide 2: Disclosures
Disclosures Safe Harbor Certain statements and information in this presentation may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,”
Slide 3: Comfort Systems USA Overview
Comfort Systems USA Overview Who We Are • Leading HVAC and mechanical systems installation and service provider • Focused on commercial, industrial, and institutional HVAC markets What We Do Applied Systems Piping Retrofit Service 3
Slide 4: Broad Nationwide Footprint
Broad Nationwide Footprint 36 companies | 87 locations in 72 cities | 6,700+ employees 4
Slide 5: Our Customers
Our Customers Omni Orlando Resort at ChampionsGate Navy Federal Credit Union Orlando, Florida Pensacola, Florida MedImmune FMC Expansion University Hospital Frederick, Maryland Little Rock, Arkansas 5
Slide 6: Areas of Strength
Areas of Strength • Long-term local relationships • Collaboration • Safety excellence • Purchasing economics • National service capability • Bonding and insurance • Balance sheet strength 6
Slide 7: Our Safety Record is No Accident
Our Safety Record is No Accident 14 Lost Time Injury Rate 12 70% below the industry average OSHA Recordable Incident Rate 10 OSHA Incident Rate 8 38% below the industry average 6 4 2 0 1998 2000 2002 2004 2006 2008 2010 2012 Comfort Systems USA (June 2013 data) Industry Average (December 2011 – All
Slide 8: Energy Efficiency
Energy Efficiency • Energy costs drive the need for efficiency. • HVAC accounts for 30%–50% of electricity usage. • Energy Star (Department of Energy/EPA)/LEED (USGBC). • 2–4 year payouts depending on electric rates, usage, age, and incentives. Use Our Energy to Save Yours!™ 8
Slide 9: Revenue/Stock Price History
Revenue/Stock Price History $2,000 $25.00 $1,800 $1,600 $20.00 $1,400 Revenue ($ in millions) Stock Price at 12 / 31 $1,200 $15.00 $1,000 ` $800 $10.00 $600 $400 $5.00 $200 $0 $- 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Acquisition Phase Sale of Assets New Acqu
Slide 10: Revenue by Activity
Revenue by Activity 2008 2013 YTD 13% 16% 44% 57% 30% 40% New Construction / Installation Replacement Service & Maintenance 10
Slide 11: Revenue by Sector
Revenue by Sector June 2013 YTD Revenue 6% 3% Education 19% 10% Healthcare Government Manufacturing / Distribution 10% 15% Office Buildings Retail / Restaurants / Entertainment Multi-Family / Residential 11% Other 26% 11
Slide 12: Diverse Project Mix
Diverse Project Mix Number of Projects Aggregate Contract Value 4,500 4,000 4,011 3,500 3,000 19% 2,500 46% 2,000 1,500 35% 1,000 500 288 88 0 <$1M $1–$5M >$5M Jobs <$1M (Value: $361M) Jobs $1M – $5M (Value: $660M) Jobs >$5M (Value: $869M) Average Project Size: $431,000 | Average Project Length: 6–9
Slide 13: Book of Business
Book of Business ($ in millions) Construction Backlog $1,000 $800 $600 $400 $200 $589 $474 $607 $617 $590 $0 2Q 2009 2Q 2010 2Q 2011 2Q 2012 2Q 2013 Service Maintenance Base $200 $150 $100 $50 $63 $62 $74 $76 $80 $0 2Q 2009 2Q 2010 2Q 2011 2Q 2012 2Q 2013 13
Slide 14: Historical Financial Summary
Historical Financial Summary ($ in millions, except per share information) Revenue Adjusted EPS (1) $1,400 $1.40 $1,200 $1.20 $1,000 $1.00 $800 $0.80 $600 $0.60 $400 $0.40 $200 $0.20 $0 $0.00 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Operating Cash Flow Adjusted EBITDA (2) $100 $100 $80 $80
Slide 15: Historical Financial Summary
Historical Financial Summary Operating Income % 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% (1) 2006 2007 2008 2009 2010 2011 2012 Adjusted EBITDA % (2) 8.0% 6.0% 4.0% 2.0% 0.0% 2006 2007 2008 2009 2010 2011 2012 (1) Operating income for 2011 excludes goodwill impairment of $57.4M. (2) Adjusted EBITDA i
Slide 16: QTD Financial Performance
QTD Financial Performance Three Months Ended ($ in millions, except per share information) 6/30/13 6/30/12 Revenue $ 351.1 $ 353.2 Net Income from Continuing Operations Attributable to Comfort Systems USA, Inc. $ 7.8 $ 4.4 Diluted EPS from Continuing Operations Attributable to Comfort Systems USA, I
Slide 17: YTD Financial Performance
YTD Financial Performance Six Months Ended ($ in millions, except per share information) 6/30/13 6/30/12 Revenue $ 676.9 $ 680.1 Net Income from Continuing Operations Attributable to Comfort Systems USA, Inc. $ 10.3 $ 3.6 Diluted EPS from Continuing Operations Attributable to Comfort Systems USA, In
Slide 18: Key Financial Statistics
Key Financial Statistics As of ($ in millions) 6/30/13 12/31/12 Cash $ 23.3 $ 40.8 Working Capital $ 113.7 $ 104.0 Goodwill and Intangible Assets $ 155.4 $ 159.1 Total Debt $ 5.4 $ 7.4 Equity $ 296.2 $ 287.3 18
Slide 19: Balance Sheet Strength
Balance Sheet Strength • $23.3M cash at June 30, 2013 • Positive free cash flow for 14 consecutive years • Debt capacity o $5.4M debt at 6/30/ 2013 o $175M revolving credit facility o 2018 maturity 19
Slide 20: Earnings Profile for Growth
Profile for Growth Service Earnings Time Commercial HVAC 20
Slide 21: Industry Environment: McGraw Hill Construction
Industry Environment: McGraw Hill Construction Comfort Systems USA in the Next Cycle Total Nonresidential Construction Starts Billions of Current Dollars History Forecast • Expanding service 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 • Growing markets • Investing in our workforce Nonresidenti
Slide 22: Appendices
systems) A. Quality People. Building Solutions. Appendices
Slide 23: Appendix I—Income Statement (QTD)
Appendix I —Income Statement (QTD) ($ in thousands, except per share information) Three Months Ended June 30, 2013 2012 Revenue $ 351,053 100.0% $ 353,172 100.0% Cost of Services 291,086 82.9% 299,076 84.7% Gross Profit 59,967 17.1% 54,096 15.3% Selling, General and Administrative Expenses 45,699 13
Slide 24: Appendix II—Income Statement (YTD)
Appendix II —Income Statement (YTD) ($ in thousands, except per share information) Six Months Ended June 30, 2013 2012 Revenue $ 676,943 100.0% $ 680,074 100.0% Cost of Services 565,509 83.5% 583,047 85.7% Gross Profit 111,434 16.5% 97,027 14.3% Selling, General and Administrative Expenses 92,219 13
Slide 25: Appendix III—GAAP Reconciliation to Adjusted EBITDA
Appendix III—GAAP Reconciliation to Adjusted EBITDA ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2013 2012 2013 2012 Net Income Including Noncontrolling Interests $ 8,314 $ 4,047 $ 11,009 $ 1,379 Discontinued Operation - (98) 54 139 Income Taxes 5,735 3,049 7,778 2,105 Othe
Slide 26: Appendix IV—GAAP Reconciliation to Adjusted EBITDA (Historical)
Appendix IV—GAAP Reconciliation to Adjusted EBITDA (Historical) ($ in thousands) Year Ended December 31, 2006 2007 2008 2009 2010 2011 2012 Net Income (Loss) Including $ 28,724 $ 32,466 $ 49,690 $ 34,182 $ 14,740 ($36,492) $11,849 Noncontrolling Interests Discontinued Operations (304) (266) 107 (1,2
Slide 27: Appendix V—Supplemental Non-GAAP Information (Historical)
Appendix V—Supplemental Non -GAAP Information (Historical) ($ in thousands) Year Ended December 31, 2008 2009 2010 2011 2012 Net income (loss) from continuing operations attributable to Comfort Systems USA, Inc. $ 49,797 $ 32,900 $ 20,564 ($32,812) $13,108 Goodwill impairment (after tax) - - - 44,80
Slide 28: Appendix VI—GAAP Reconciliation to Adjusted EPS (Historical)
Appendix VI—GAAP Reconciliation to Adjusted EPS (Historical) Year Ended December 31, 2008 2009 2010 2011 2012 Diluted income (loss) per share from continuing operations attributable to Comfort Systems USA, Inc. $ 1.24 $ 0.86 $ 0.54 $ (0.88) $ 0.35 Goodwill and other intangible asset impairments - -
Slide 29: Contact
Contact Bill George Executive Vice President and CFO 1-800-723-8431 bill.george@comfortsystemsusa.com www.comfortsystemsusa.com 29
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