Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (May 2015)
22 slides from Comfort Systems Usa's investor presentation, May 4, 2015
Slide 1: Comfort Systems USA
Comfort Systems USA Quality People. Building Solutions. May 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 • 36 Operating companies • Balanced construction & service portfolio 2
Slide 4: Broad Nationwide Footprint
Broad Nationwide Footprint 36 companies | 90 locations in 85 cities | 7,000+ employees 3
Slide 5: 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 $- 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Acquisition Phase Sale of Asset
Slide 6: Lifecycle Product Portfolio
Lifecycle Product Portfolio • 5+ million nonresidential buildings • Building solutions a necessity • Diverse revenue streams throughout lifecycle • 10 - 20 year replacement cycle • Recurring service • Increasing technical content • Essential to energy efficiency 5
Slide 7: Targeted Portfolio Strategy
Targeted Portfolio Strategy Revenue by Activity • Light commercial to heavy 100% 90% 13% 17% commercial 80% 70% 30% 31% • Continue to grow 60% 50% construction 40% 30% • Leverage existing 57% 52% 20% construction capabilities 10% 0% into retrofit market 2008 2015 YTD Service & Maintenance • Access t
Slide 8: Market Sectors
Market Sectors Multi-Family / Residential Retail / 5% Health Care Restaurant / 10% Entertainment Education 13% 13% Other 4% Office Building Government 12% 11% Manufacturing / Distribution 32% March 2015 YTD Revenue 7
Slide 9: Book of Business
Book of Business ($ in millions) Construction Backlog $1,000 $800 $600 $400 $200 $508 $598 $630 $618 $604 $758 $718 $0 2009 2010 2011 2012 2013 2014 Q1 2015 Service Maintenance Base $500 $400 $300 $200 $100 $63 $72 $76 $75 $83 $89 $97 $0 2009 2010 2011 2012 2013 2014 Q1 2015 8
Slide 10: Diverse Project Mix
Diverse Project Mix Number of Projects Aggregate Contract Value 4,000 3,711 3,500 3,000 20% 2,500 32% 2,000 1,500 1,000 48% 500 293 96 0 <$1M $1–$5M >$5M Jobs <$1M (Value: $405M) Jobs $1M – $5M (Value: $648M) Jobs >$5M (Value: $954M) Average Project Size: $0.5M | Average Project Length: 6 – 9 months
Slide 11: Historical Financial Summary
Historical Financial Summary ($ 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 12: 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 13: Balance Sheet Strength
Balance Sheet Strength • $38.9M cash at March 31, 2015 • Positive free cash flow for 16 consecutive years • Debt capacity – $38M debt at 3/31/ 2015 – $250M revolving credit facility – 2019 maturity 12
Slide 14: Profile for Growth
Profile for Growth Service Earnings Time Commercial HVAC 13
Slide 15: Our Strengths
Our Strengths • Long-term local relationships • Collaboration • Safety excellence • Purchasing economics • National service capability • Bonding and insurance • Balance sheet strength 14
Slide 16: Thank You
Thank You 7,000+ Employees Over 7,000 of the most qualified HVAC and Mechanical systems personnel in the USA 90 Locations Operating 36 companies across America at 90 locations in 85 cities $1.4 Billion $1.4 billion in yearly revenues 15
Slide 17: Appendix
Appendix COMFORT LGA
Slide 18: Appendix I – QTD & YTD Financial Performance
Appendix I – QTD & YTD Financial Performance Three Months Ended ($ in millions, except per share information) 3/31/15 3/31/14 Revenue $369.5 $321.4 Net Income from Continuing Operations Attributable to Comfort Systems USA, Inc. $5.1 $0.4 Diluted EPS from Continuing Operations Attributable to Comfort
Slide 19: Appendix II – GAAP Reconciliation to Adjusted EBITDA
Appendix II – GAAP Reconciliation to Adjusted EBITDA Three Months Ended March 31, ($ in thousands) 2015 2014 Net Income Including Non-controlling Interests $6,889 $1,063 Discontinued Operations - 15 Income Taxes 3,793 692 Other (Income) Expense, net (18) (68) Changes in the Fair Value of Contingent
Slide 20: Appendix III – GAAP Reconciliation to Adjusted EBITDA
Appendix III – GAAP Reconciliation to Adjusted EBITDA (Historical) Year Ended December 31, ($ 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,
Slide 21: Appendix IV – Supplemental Non-GAAP Information
Appendix IV – 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 22: Contact
Contact Bill George Executive Vice President and CFO 1-800-723-8431 bill.george@comfortsystemsusa.com www.comfortsystemsusa.com 21
Comfort Systems USA — Investor Presentation (May 2015) on 6ix