Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (February 2018)
21 slides from Comfort Systems Usa's investor presentation, Feb 23, 2018
Slide 1: Comfort Systems USA
Comfort Systems USA Quality People. Building Solutions. February 23, 2018
Slide 2: Safe Harbor
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, as amended. The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,”
Slide 3: Comfort Systems USA
Comfort Systems USA • Leading mid-market HVAC and mechanical systems installation and service provider • $1.8B yearly revenue • 8,700+ employees • 36 operating companies • Balanced construction & service portfolio 2
Slide 4: National Footprint
National Footprint 36 companies | 117 locations in 104 cities | 8,700+ employees 3
Slide 5: Targeted Portfolio Strategy
Targeted Portfolio Strategy 2017 2016 Revenue = $1,787.9M Revenue = $1,634.3M 11% 11% 32% 31% 19% 18% 38% 40% New Construction Existing Building Construction Service Projects Service & Maintenance 4
Slide 6: Market Sectors
Market Sectors Multi-Family / Residential Health Care 7% 13% Retail / Restaurant / Entertainment Other 13% 3% Education 20% Office Building 14% Government Industrial 8% 22% 2017 Revenue Revenue = $1,787.9M 5
Slide 7: Diverse Project Mix
Diverse Project Mix Number of Projects Aggregate Contract Value 4,500 4,221 4,000 3,500 3,000 22% 2,500 35% 2,000 1,500 1,000 43% 500 368 101 0 <$1M $1–$5M >$5M Jobs <$1M (Value: $529.8M) Jobs $1M – $5M (Value: $828.6M) Jobs >$5M (Value: $1,005.6M) Average Project Size: $0.5M | Average Project Lengt
Slide 8: Book of Business
Book of Business ($ in millions) Construction Backlog $1,000 $800 $600 $400 $200 $630 $618 $604 $758 $712 $763 $948 $0 2011 2012 2013 2014 2015 2016 2017 Service Maintenance Base $500 $400 $300 $200 $100 $76 $75 $83 $89 $104 $111 $116 $0 2011 2012 2013 2014 2015 2016 2017 7
Slide 9: Recent Financial Performance
Recent Financial Performance Three Months Ended Twelve Months Ended ($ in millions, except per share information) 12/31/17 12/31/16 12/31/17 12/31/16 Revenue $461.1 $392.1 $1,787.9 $1,634.3 Net Income $7.5 $16.9 $55.3 $64.9 Diluted EPS $0.20 $0.45 $1.47 $1.72 Adjusted EPS (1) $0.45 $0.45 $1.74 $1.72
Slide 10: Adjusted EPS/Stock Price History
Adjusted EPS/Stock Price History $2.00 $50.00 $1.80 $45.00 $1.60 $40.00 $1.40 $35.00 Stock Price at 12 / 31 Adjusted EPS at 12/31* $1.20 $30.00 $1.00 $25.00 ` $0.80 $20.00 $0.60 $15.00 $0.40 $10.00 $0.20 $5.00 $- $- 2012 2013 2014 2015 2016 2017 Adjusted EPS at 12/31* Stock Price at 12/31 *Adjusted
Slide 11: Historical Financial Summary
Historical Financial Summary ($ in millions, except per share information) Revenue Adjusted EPS (1) CAGR = 6.08% CAGR = 37.81% $2,100 $2.00 $1,800 $1.60 $1,500 $1,200 $1.20 $900 $0.80 $600 $0.40 $300 $0 $0.00 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 Operating Cash Flow Adjusted EB
Slide 12: Balance Sheet Strength
Balance Sheet Strength • $36.5M cash at December 31, 2017 • Positive free cash flow for 19 consecutive years • Debt capacity – $60.5M debt at 12/31/17 – $325M revolving credit facility – 2021 maturity • Debt/TTM EBITDA = 0.4 • $24.0M net debt at December 31, 2017 11
Slide 13: Profile for Growth
Profile for Growth Service Earnings Time Commercial HVAC 12
Slide 14: Average Discretionary Spending
Average Discretionary Spending ($ in thousands) Average 2006 - 2017 $7,973 17% $8,717 19% $30,322 64% Acquisitions Share Repurchases Dividends $50,000 $46,147 $47,012 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $- Free Cash Flow Disc Spending 13
Slide 15: Our Strengths
Our Strengths • Industry leading skilled labor • Ability to share knowledge • Diverse portfolio • Strong balance sheet • Acquisition record • Positioned for growth 14
Slide 16: Appendix
15 Appendix COMFORT SYSTEMS USA
Slide 17: Appendix I – GAAP Reconciliation to Adjusted EBITDA
Appendix I – GAAP Reconciliation to Adjusted EBITDA Three Months Ended December 31, Twelve Months Ended December 31, ($ in thousands) 2017 2016 2017 2016 Net Income $7,539 $16,867 $55,272 $64,896 Provision for Income Taxes 18,478 9,113 45,666 36,165 Other (Income) Expense, net (992) (642) (1,049) (1
Slide 18: Appendix II – GAAP Reconciliation to Adjusted EBITDA
Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical) Year Ended December 31, ($ in thousands) 2012 2013 2014 2015 2016 2017 Net Income (Loss) Including Non-controlling $11,849 $28,556 $28,599 $57,440 $64,896 55,272 Interests Discontinued Operations (355) 76 15 - - - Provision for Income
Slide 19: Appendix III – Supplemental Non-GAAP Information
Appendix III – Supplemental Non-GAAP Information Three months ended Twelve months ended December 31, December 31, 2017 2016 2017 2016 Diluted income (loss) per share from continuing operations $0.20 $0.45 $1.47 $1.72 attributable to Comfort Systems USA, Inc. Goodwill impairment - - 0.02 - Tax valuat
Slide 20: Appendix IV – Supplemental Non-GAAP Information
Appendix IV – Supplemental Non-GAAP Information (Historical) Year Ended December 31, 2012 2013 2014 2015 2016 2017 Diluted income (loss) per share from continuing operations $0.35 $0.73 $0.61 $1.30 $1.72 $1.47 attributable to Comfort Systems USA, Inc. Goodwill impairment - - 0.01 - - 0.02 Tax valuat
Slide 21: Thank You
Thank You 8,700+ Employees 8,700+ of the most qualified HVAC and Mechanical systems personnel in the USA 117 Locations Operating 36 companies across America at 117 locations in 104 cities $1.8 Billion $1.8 billion in yearly revenue Contact: Bill George Executive Vice President & CFO 1-800-723-8431 B
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