Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (November 2015)
24 slides from Comfort Systems Usa's investor presentation, Nov 4, 2015
Slide 1: Comfort Systems USA
Comfort Systems USA Quality People. Building Solutions. November 4, 2015
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. The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” or other sim
Slide 3: Comfort Systems USA
Comfort Systems USA • Leading mid-market HVAC and mechanical systems installation and service provider • $1.4B Yearly revenues • 7,000+ Employees • 35 Operating companies • Balanced construction & service portfolio 2
Slide 4: Broad Nationwide Footprint
Broad Nationwide Footprint 35 companies | 88 locations in 83 cities | 7,000+ employees 3
Slide 5: Our Markets
Our Markets Light Heavy Light Heavy Residential Commercial Industrial Commercial Commercial Industrial Industrial 4
Slide 6: Targeted Portfolio Strategy
Targeted Portfolio Strategy Revenue by Activity • Light commercial to heavy 100% 13% commercial 90% 18% 80% • Continue to grow 70% 30% 60% 36% construction 50% 40% • Leverage existing 30% 57% 46% construction capabilities 20% 10% into retrofit market 0% 2008 2015 YTD • Access to new customers Servic
Slide 7: Market Sectors
Market Sectors Multi-Family / Residential 6% Health Care Retail / 11% Restaurant / Other Entertainment Education 2% 12% 15% Office Building 12% Government 11% Industrial / Distribution 31% September 2015 YTD Revenue 6
Slide 8: Diverse Project Mix
Diverse Project Mix Number of Projects Aggregate Contract Value 4,500 4,037 4,000 3,500 3,000 20% 2,500 33% 2,000 1,500 1,000 47% 500 316 102 0 <$1M $1–$5M >$5M Jobs <$1M (Value: $439M) Jobs $1M – $5M (Value: $717M) Jobs >$5M (Value: $999M) Average Project Size: $0.5M | Average Project Length: 6 – 9
Slide 9: Lifecycle Product Portfolio
Lifecycle Product Portfolio • 5+ million nonresidential buildings • Building solutions a necessity • Diverse revenue streams throughout lifecycle • 10 - 20 year replacement cycle • Recurring service • Increasing technical content • Essential to energy efficiency 8
Slide 10: Why We Win
Why We Win Be Here Investment in service technology When I Need Real time GPS You Always Handle National training program My Problems Better positioned to attract labor The First Time Advantaged Leverage our scale and national Value footprint Position Make It Really Technology investments Easy To Do
Slide 11: Book of Business
Book of Business ($ in millions) Construction Backlog $1,000 $800 $600 $400 $200 $508 $598 $630 $618 $604 $758 $666 $0 2009 2010 2011 2012 2013 2014 Q3 2015 Service Maintenance Base $500 $400 $300 $200 $100 $63 $72 $76 $75 $83 $89 $101 $0 2009 2010 2011 2012 2013 2014 Q3 2015 10
Slide 12: Recent Financial Performance
Recent Financial Performance Three Months Ended Nine Months Ended ($ in millions, except per share information) 9/30/15 9/30/14 9/30/15 9/30/14 Revenue $410.6 $370.1 $1,196.7 $1,054.3 Net Income from Continuing Operations Attributable to Comfort Systems $17.7 $7.6 $36.1 $12.4 USA, Inc. Diluted EPS f
Slide 13: Revenue/Stock Price History
Revenue/Stock Price History $2,000 $30.00 $1,800 $25.00 $1,600 $1,400 Revenue ($ in millions) $20.00 Stock Price at 12 / 31 $1,200 $1,000 $15.00 ` $800 $10.00 $600 $400 $5.00 $200 $0 $- 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q3 2015 Acquisition Phas
Slide 14: Historical Financial Summary
Historical Financial Summary ($ in millions, except per share information) Revenue Adjusted EPS (1) $1,600 $1.00 $1,400 $0.80 $1,200 $1,000 $0.60 $800 $600 $0.40 $400 $0.20 $200 $0 $0.00 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 Operating Cash Flow Adjusted EBITDA (2) $60 $70 $50 $
Slide 15: Historical Financial Summary
Historical Financial Summary Operating Income % (1) 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2007 2008 2009 2010 2011 2012 2013 2014 Adjusted EBITDA % (2) 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2007 2008 2009 2010 2011 2012 2013 2014 (1) Operating income for 2011 excludes goodwill impairment of
Slide 16: Balance Sheet Strength
Balance Sheet Strength • $45.1M cash at September 30, 2015 • Positive free cash flow for 16 consecutive years • Debt capacity – $10M debt at 9/30/ 2015 – $250M revolving credit facility – 2019 maturity 15
Slide 17: Earnings Profile for Growth
Profile for Growth Service Earnings Time Commercial HVAC 16
Slide 18: Our Strengths
Our Strengths • Long-term local relationships • Collaboration • Safety excellence • Purchasing economics • National service capability • Bonding and insurance • Balance sheet strength 17
Slide 19: Thank You
Thank You 7,000+ Employees Over 7,000 of the most qualified HVAC and Mechanical systems personnel in the USA 88 Locations Operating 35 companies across America at 88 locations in 83 cities $1.4 Billion $1.4 billion in yearly revenues 18
Slide 20: Appendix
Appendix COMFORT LGA
Slide 21: Appendix I – GAAP Reconciliation to Adjusted EBITDA
Appendix I – GAAP Reconciliation to Adjusted EBITDA Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2015 2014 2015 2014 Net Income Including Non-controlling Interests $19,886 $9,379 $42,557 $16,778 Discontinued Operations - - - 15 Income Taxes 9,613 4,649 22,202 9,0
Slide 22: Appendix II – GAAP Reconciliation to Adjusted EBITDA
Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical) Year Ended December 31, ($ in thousands) 2008 2009 2010 2011 2012 2013 2014 Net Income (Loss) Including Non- $49,690 $34,182 $14,740 ($36,492) $11,849 $28,556 $28,599 controlling Interests Discontinued Operations 107 (1,282) 5,824 4,0
Slide 23: Appendix III – Supplemental Non-GAAP Information
Appendix III – Supplemental Non-GAAP Information (Historical) Year Ended December 31, 2008 2009 2010 2011 2012 2013 2014 Diluted income (loss) per share from continuing operations $1.24 $0.86 $0.54 $(0.88) $0.35 $0.73 $0.61 attributable to Comfort Systems USA, Inc. Goodwill Impairment - - - 1.20 - -
Slide 24: Contact
Contact Bill George Executive Vice President and CFO 1-800-723-8431 bill.george@comfortsystemsusa.com www.comfortsystemsusa.com 23
Comfort Systems USA — Investor Presentation (November 2015) on 6ix