Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (August 2018)
19 slides from Comfort Systems Usa's investor presentation, Aug 2, 2018
Slide 1: Comfort Systems USA
Comfort Systems USA Quality People. Building Solutions. August 2, 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 • $2.0B yearly revenue • 9,600+ employees • 37 operating companies • Balanced construction & service portfolio 2
Slide 4: National Footprint
National Footprint 37 companies | 126 locations in 112 cities | 9,600+ employees 3
Slide 5: Targeted Portfolio Strategy
Targeted Portfolio Strategy YTD June 2018 FY 2017 Revenue = $1.00B Revenue = $1.79B 9% 11% 32% 36% 18% 19% 37% 38% New Construction Existing Building Construction Service Projects Service Calls, Maintenance & Monitoring 4
Slide 6: Market Sectors
Market Sectors Multi-Family / Residential 7% Health Care 14% Retail / Restaurant / Entertainment Other 11% 5% Education 20% Office Building 15% Government Industrial 7% 21% YTD June 2018 Revenue Revenue = $1.00B 5
Slide 7: Diverse Project Mix
Diverse Project Mix Number of Projects 5,000 4,721 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 481 121 0 <$1M $1–$5M >$5M Average Project Size: $0.6 M | Average Project Length: 6 – 9 months (Information as of June 30, 2018) 6
Slide 8: Book of Business
Book of Business ($ in millions) Construction Backlog $1,400 $1,200 $1,000 $800 $600 $400 $200 $630 $618 $604 $758 $712 $763 $948 $1,228 $0 2011 2012 2013 2014 2015 2016 2017 Q2 2018 Service Maintenance Base $200 $175 $150 $125 $100 $75 $50 $25 $76 $75 $83 $89 $104 $111 $116 $119 $0 2011 2012 2013 2
Slide 9: Recent Financial Performance
Recent Financial Performance Three Months Ended Six Months Ended ($ in millions, except per share information) 6/30/18 6/30/17 6/30/18 6/30/17 Revenue $535.0 $465.4 $1,000.0 $846.0 Net Income $32.5 $18.0 $49.2 $25.4 Diluted EPS $0.87 $0.48 $1.31 $0.67 Adjusted EBITDA (1) $50.5 $39.9 $78.7 $58.7 Oper
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 • $28.0M cash at June 30, 2018 • Positive free cash flow for 19 consecutive years • Debt capacity – $59.0M debt at 6/30/18 – $400M revolving credit facility – 2023 maturity • Debt/TTM EBITDA = 0.4 • $31.0M net debt at June 30, 2018 11
Slide 13: Earnings Profile for Growth
Profile for Growth Service Earnings Time Commercial HVAC 12
Slide 14: Average Discretionary Spending
Average Discretionary Spending ($ 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: Thank You
Thank You 9,600+ Employees 9,600+ of the most qualified HVAC and Mechanical systems personnel in the USA 126 Locations 37 operating companies across America at 126 locations in 112 cities $2.0 Billion $2.0 billion in yearly revenue Contact: Bill George Executive Vice President & CFO 1-800-723-8431 B
Slide 17: Appendix I – GAAP Reconciliation to Adjusted EBITDA
Appendix I – GAAP Reconciliation to Adjusted EBITDA Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2018 2017 2018 2017 Net Income $32,547 $17,972 $49,206 $25,449 Provision for Income Taxes 10,797 9,711 12,871 13,603 Other (Income) Expense, net (3,985) (29) (4,023) (47) Change
Slide 18: Appendix II – GAAP Reconciliation to Adjusted EBITDA
Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical) Year Ended December 31, ($ 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 – GAAP Reconciliation to Adjusted EPS
Appendix III – GAAP Reconciliation to Adjusted EPS (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 val
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