Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (November 2012)
29 slides from Comfort Systems Usa's investor presentation, Nov 13, 2012
Slide 1: Comfort Systems USA
Comfort Systems USA (NYSE: FIX) November 13, 2012
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 37 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: OSHA Recordable Incident Rate
Our Safety Record is No Accident 14 Lost Time Injury Rate 12 73% below the industry average OSHA Recordable Incident Rate 10 OSHA Incident Rate 8 34% below the industry average 6 4 2 0 1998 2000 2002 2004 2006 2008 2010 2012 Comfort Systems USA (September 2012 data) Industry Average (December 2011 –
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 Acquisition Phase Sale of Assets New Acquisiti
Slide 10: Revenue by Activity
Revenue by Activity 2008 YTD 2012 13% 16% 47% 57% 30% 37% New Construction/Installation Replacement Service & Maintenance 10
Slide 11: Revenue by Sector
Revenue by Sector September 2012 Year-to-Date Revenue 5% 3% Education 9% 23% Healthcare Government 9% Manufacturing / Distribution Office Buildings 13% Retail / Restaurants / Entertainment Multi-Family / Residential 24% Other 14% 11
Slide 12: Diverse Project Mix
Diverse Project Mix Number of Projects Aggregate Contract Value 5,000 4,575 4,000 18% 3,000 50% 2,000 32% 1,000 286 96 0 <$1M $1–$5M >$5M Jobs <$1M (Value: $371M) Jobs $1M – $5M (Value: $650M) Jobs >$5M (Value: $1,004M) Average Project Size: $409,000 | Average Project Length: 6–9 months (Information
Slide 13: Book of Business
Book of Business ($ in millions) Construction Backlog $1,000 $800 $600 $400 $200 $804 $554 $636 $636 $623 $0 3Q 2008 3Q 2009 3Q 2010 3Q 2011 3Q 2012 Service Maintenance Base $200 $150 $100 $50 $64 $63 $74 $75 $73 $0 3Q 2008 3Q 2009 3Q 2010 3Q 2011 3Q 2012 13
Slide 14: Historical Financial Summary
Historical Financial Summary ($ 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 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Operating Cash Flow Adjusted EBITDA (2) $100 $100 $80 $80
Slide 15: QTD Financial Performance
QTD Financial Performance Three Months Ended ($ in millions, except per share information) 9/30/12 9/30/11 Revenue $ 335.5 $ 328.1 Net Income $ 5.7 $ (36.6) Adjusted Net Income (1) $ 5.7 $ 5.3 Diluted EPS $ 0.15 $ (0.98) Adjusted Diluted EPS (2) $ 0.15 $ 0.14 Adjusted EBITDA (3) $ 15.0 $ 12.3 Operat
Slide 16: YTD Financial Performance
YTD Financial Performance Nine Months Ended ($ in millions, except per share information) 9/30/12 9/30/11 Revenue $ 1,019.7 $ 922.3 Net Income $ 9.1 $ (38.6) Adjusted Net Income (1) $ 9.1 $ 3.0 Diluted EPS $ 0.24 $ (1.03) Adjusted Diluted EPS (2) $ 0.24 $ 0.08 Adjusted EBITDA (3) $ 28.9 $ 19.0 Opera
Slide 17: Key Financial Statistics
Key Financial Statistics As of ($ in millions) 9/30/12 12/31/11 Cash $ 35.7 $ 51.2 Working Capital $ 116.2 $ 109.3 Goodwill and Intangible Assets $ 161.4 $ 155.4 Total Debt $ 24.3 $ 15.4 Equity $ 284.3 $ 283.1 17
Slide 18: Balance Sheet Strength
Balance Sheet Strength • $36 cash at September 30, 2012 • Positive free cash flow for 13 consecutive years • Debt capacity o $24M debt at 9/30/ 2012 o $125M revolving credit facility o 2016 maturity 18
Slide 19: Earnings Profile for Growth
Profile for Growth Service Earnings Time Commercial HVAC 19
Slide 20: Industry Environment: McGraw Hill Construction
Industry Environment: McGraw Hill Construction Comfort Systems USA in the Next Cycle Total Nonresidential Construction Starts Billions of Current Dollars History Forecast • Expanding service 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 • Growing markets • Investing in our workforce Nonresidenti
Slide 21: Appendices
svstemsU A. Quality People. Building Solutions.
Slide 22: Appendix I—Income Statement (QTD)
Appendix I —Income Statement (QTD) Three Months Ended September 30, ($ in thousands, except per share information) 2012 2011 Revenue $ 335,540 100.0% $ 328,113 100.0% Cost of Services 279,889 83.4% 279,005 85.0% Gross Profit 55,651 16.6% 49,108 15.0% Selling, General and Administrative Expenses 46,0
Slide 23: Appendix II—Income Statement (YTD)
Appendix II —Income Statement (YTD) Nine Months Ended September 30, ($ in thousands, except per share information) 2012 2011 Revenue $ 1,019,700 100.0% $ 922,320 100.0% Cost of Services 866,793 85.0% 791,493 85.8% Gross Profit 152,907 15.0% 130,827 14.2% Selling, General and Administrative Expenses
Slide 24: Appendix III—Supplemental Non-GAAP Information (Quarterly)
Appendix III—Supplemental Non-GAAP Information (Quarterly) ($ in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2012 2011 2012 2011 Net income (loss) attributable to Comfort Systems USA $ 5,673 $ (36,569) $ 9,112 $ (38,577) Goodwill impairment (after tax) - 44,886 - 44,8
Slide 25: Appendix IV—GAAP Reconciliation to Adjusted EBITDA (Quarterly)
Appendix IV—GAAP Reconciliation to Adjusted EBITDA (Quarterly) ($ in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2012 2011 2012 2011 Net Income (Loss) Including Noncontrolling Interests $ 5,325 $ (36,569) $ 6,704 $ (38,577) Income Taxes 4,003 (6,293) 6,068 (7,479) Oth
Slide 26: Appendix V—GAAP Reconciliation to Adjusted EBITDA (Annual)
Appendix V—GAAP Reconciliation to Adjusted EBITDA (Annual) ($ in thousands) Year Ended December 31, 2007 2008 2009 2010 2011 Net Income (Loss) Including Noncontrolling Interests $ 32,466 $ 49,690 $ 34,182 $ 14,740 $ (36,492) Discontinued Operations - 114 414 (723) - Income Taxes 20,080 30,866 21,437
Slide 27: Appendix VI—Supplemental Non-GAAP Information
Appendix VI—Supplemental Non-GAAP Information ($ in thousands) Year Ended December 31, 2007 2008 2009 2010 2011 Net income (loss) from continuing operations attributable to Comfort Systems USA, Inc. $ 32,219 $ 49,804 $ 34,596 $ 14,017 $ (36,830) Goodwill and other intangible asset impairments (after
Slide 28: Appendix VII—GAAP Reconciliation to Adjusted EPS
Appendix VII—GAAP Reconciliation to Adjusted EPS Year Ended December 31, 2007 2008 2009 2010 2011 Diluted income (loss) per share from continuing operations attributable to Comfort Systems USA, Inc. $ 0.78 $ 1.24 $ 0.90 $ 0.37 $ (0.99) Goodwill and other intangible asset impairments - - - 0.09 1.22
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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