Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (February 2023)
20 slides from Comfort Systems Usa's investor presentation, Feb 24, 2023
Slide 1: Quality People. Building Solutions.
SoLrSREU A Quality People. Building Solutions. NYSE: FIX February 24, 2023 COMFORT SYSTEMS UA
Slide 2: Forward-looking statements
Certain statements and information in this presentation may constitute forward-looking statements within the meaning of applicable securities laws and regulations. The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” or other similar expressions are i
Slide 3: Leading national MEP installation and service provider
• Leading national mechanical, electrical and plumbing (“MEP”) installation and service provider • $4.0+ billion yearly revenue • 14,600+ employees • History of profitable growth • Balanced construction and service portfolio
Slide 4: National Footprint
NATIONAL FOOTPRINT 172 locations | 13 1 cities | 14 9 6 0 0 + employees
Slide 5: Revenue Breakdown - 2022
REVENUE BREAKDOWN - 2022 2022 Revenue = $4.14B ACTIVITY MARKET SECTOR oo : Restaurant / : EnteNainment %, : ~~ \ 8% Healthcare a : (e) \ Other 14% i 5 \O% en Ke) : Office Buildings . : 39/ Education : 8% ON 11% & 6% e New Construction ; sna e@ Existing Building Construction : e Modular Construction
Slide 6: Construction Backlog
CONSTRUCTION BACKLOG (Sin millions) $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $763 $948 $1,166 $1,602 $1,511 $2,312 $4,064 2016 2017 2018 2019 2020 2021 2022 5 SoMFoRT UGA.
Slide 7: Service Maintenance Base
SERVICE MAINTENANCE BASE (Sin millions) $120 $100 $80 $60 $40 $20 $0 $111 $116 $123 $127 $130 $147 $161 2016 2017 2018 2019 2020 2021 2022 6 COMFORT USA SYSTEMS s
Slide 8: Financial summary
($ in millions, except per share information) (1) Adjusted EPS is a non-GAAP financial measure. Adjusted EPS excludes tax gains. See Appendix II for a GAAP reconciliation to Adjusted EPS. (2) Adjusted EBITDA is a non-GAAP financial measure. See Appendix I for a GAAP reconciliation to Adjusted EBITDA
Slide 9: Free cash flow and balance sheet
• Positive free cash flow for 24 consecutive years • Increased dividend for 10 consecutive years • Debt/TTM EBITDA = 0.76 • $57.2M cash at December 31, 2022 • $256.2M total debt at December 31, 2022 • Debt capacity – $215M borrowings at 12/31/22 – $850M senior credit facility – 2027 maturity
Slide 10: Consistent Capital Allocation
CONSISTENT CAPITAL ALLOCATION (Sin thousands) AVERAGE 2007 - 2022 $10,611 10% $15,505 15% $77,414 75% = Acquisitions = Share Repurchases = Dividends 9 SOvFORT USA.
Slide 11: Capital Returned
CAPITAL RETURNED (Sin thousands) FISCAL PERIODS SHARE REPURCHASES DIVIDENDS CAPITAL RETURNED 2015 $8,330 $9,358 $17,688 2016 $13,088 $10,264 $23,352 2017 $9,007 $10,987 $19,994 2018 $28,533 $12,268 $40,801 2019 $19,550 $14,543 $34,093 2020 $30,120 $15,499 $45,619 2021 $27,054 $17,384 $44,438 2022 $3
Slide 12: Key growth end markets
• Technology – Data Centers and Chip Manufacturing • Life Sciences - Pharmaceuticals • Food Processing • Manufacturing • Healthcare • EV Battery • Industrial • Re-Shoring • Indoor Air Quality • Service • Modular
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Slide 14: Planet, Partners, People
Our environmental, social and corporate governance (ESG) goals are embedded in how we operate as a business – they are part of our very foundation and core values of being safe, honest, respectful, collaborative, and innovative – and we have diligently sought to develop transparent disclosures to su
Slide 15: Innovation and technology
• Pilots of emerging technologies • Partnerships with industry leading tech firms • Data analytics to drive business insights • Investments in advanced BIM technologies • EAS & TAS modular construction • Mobile technology deployment in service • Early adoption of BIM • Industry-leading prefabricatio
Slide 16: Core values
Be safe Be honest Be respectful Be innovative Be collaborative
Slide 17: Investment highlights
• Consistent free cash flow • Strong Balance Sheet • Acquisition record • Leading innovation • Profitable growth
Slide 18: Contact
14,600+ of the most qualified HVAC and electrical contracting personnel in America 43 operating companies across America at $4.0+ billion in yearly revenue 172 locations in 131 cities Julie Shaeff Chief Accounting Officer 1-800-723-8431 ir@comfortsystemsusa.com www.comfortsystemsusa.com
Slide 19: Appendix I: Adjusted EBITDA reconciliation
($ in thousands) Note: The Company defines adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”) as net income, provision for income taxes, other expense (income), net, changes in the fair value of contingent earn-out obligations, interest expense, net, gain on
Slide 20: Appendix II: Adjusted EPS reconciliation
Note: Diluted income per share excluding tax gains is presented because the Company believes it reflects the results of the core ongoing operations of the Company, and we believe it is responsive to frequent questions we receive from third parties. This measure, however, is not considered a primary
Comfort Systems USA — Investor Presentation (February 2023) on 6ix