Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (August 2017)
23 slides from Comfort Systems Usa's investor presentation, Aug 4, 2017
Slide 1: 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 2: Comfort Systems USA
Comfort Systems USA 2 Leading mid-market HVAC and mechanical systems installation and service provider $1.7B yearly revenue 8,700+ employees 36 operating companies Balanced construction & service portfolio
Slide 3: National Footprint
National Footprint 3 36 companies 108 locations in 97 cities 8,700+ employees
Slide 4: Our Markets
Our Markets 4 Light Commercial Commercial Residential Light Industrial Industrial Heavy Industrial Heavy Commercial Every Building You See Needs What We Do
Slide 5: Targeted Portfolio Strategy
Targeted Portfolio Strategy 5 2016 YTD June 2017 New Construction Existing Building Construction Service Projects Service & Maintenance Revenue = $846.0M Revenue = $1,634.3M 11% 18% 40% 31% 11% 19% 39% 31%
Slide 6: Market Sectors
Market Sectors 6 June 2017 YTD Revenue Institutional Industrial Revenue = $846.0M
Slide 7: Diverse Project Mix
Diverse Project Mix 7 Average Project Size: $0.5M Average Project Length: 6–9 months (Information as of June 30, 2017) Aggregate Contract Value Jobs <$1M (Value: $525.0M) Jobs $1M–$5M (Value: $871.8M) Jobs >$5M (Value: $972.8M) 4,513 392 101 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,00
Slide 8: Lifecycle Product Portfolio
Lifecycle Product Portfolio 8 5+ million nonresidential buildings Building solutions are a necessity Diverse revenue streams throughout lifecycle 10 - 20 year replacement cycle Recurring service Increasing technical content Essential to energy efficiency
Slide 9: Book of Business
Book of Business 9 ($ in millions) $76 $75 $83 $89 $104 $111 $117 $0 $100 $200 $300 $400 $500 2011 2012 2013 2014 2015 2016 Q2 2017 Service Maintenance Base $630 $618 $604 $758 $712 $763 $938 $0 $200 $400 $600 $800 $1,000 2011 2012 2013 2014 2015 2016 Q2 2017 Construction Backlog
Slide 10: Recent Financial Performance
Recent Financial Performance 10 Three Months Ended Six Months Ended ($ in millions, except per share information) 6/30/17 6/30/16 6/30/17 6/30/16 Revenue $465.4 $427.5 $846.0 $813.5 Net Income $18.0 $17.7 $25.4 $27.6 Diluted EPS $0.48 $0.47 $0.67 $0.73 Adjusted EBITDA (1) $39.9 $35.3 $58.7 $56.9 Ope
Slide 11: Adjusted EPS/Stock Price History
Adjusted EPS/Stock Price History 11 Adjusted EPS at 12/31* Stock Price at 12/31 *Adjusted EPS is a non-GAAP financial measure. Adjusted EPS excludes goodwill impairments, changes in the fair value of contingent earn-out obligations and tax valuation allowances. See Appendix III for a GAAP reconcilia
Slide 12: Historical Financial Summary
Historical Financial Summary ($ in millions, except per share information) 12 (1) Adjusted EPS is a non-GAAP financial measure. Adjusted EPS excludes goodwill impairments, changes in the fair value of contingent earn-out obligations and tax valuation allowances. See Appendix III for a GAAP reconcili
Slide 13: Balance Sheet Strength
Balance Sheet Strength $34.5M cash at June 30, 2017 Positive free cash flow for 18 consecutive years Debt capacity $104.7M debt at 6/30/2017 $325M revolving credit facility 2021 maturity TTM debt/EBITDA = 0.8 $70.3M net debt at June 30, 2017 13
Slide 14: Profile for Growth
Profile for Growth 14 Time Earnings Grow Service Innovate Acquire Service Commercial HVAC Grow Construction
Slide 15: Average Discretionary Spending
15 Average Discretionary Spending ($ in thousands) $24,455 60% $8,691 21% $7,699 19% Average 2006 - 2016 Acquisitions Share Repurchases Dividends $40,845 $43,071 $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 Free Cash Flow Disc Spending
Slide 16: Our Strengths
Our Strengths 16 Industry leading skilled labor Ability to share knowledge Diverse portfolio Strong balance sheet Acquisition record Positioned for growth
Slide 17: Thank You
Thank You 17 $1.7 Billion $1.7 billion in yearly revenue 108 Locations Operating 36 companies across America at 108 locations in 97 cities 8,700+ of the most qualified HVAC and Mechanical systems personnel in the USA 8,700+ Employees
Slide 18: Thank You
Thank You 108 Locations $1.7 Bill $1.7 bilion in yearly revenue ” Systems USA
Slide 19: Appendix I – GAAP Reconciliation to Adjusted EBITDA
Appendix I – GAAP Reconciliation to Adjusted EBITDA 19 Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2017 2016 2017 2016 Net Income $17,972 $17,717 $25,449 $27,558 Income Taxes 9,711 9,847 13,603 15,249 Other (Income) Expense, net (29) 111 (47) (375) Changes in the Fair Valu
Slide 20: Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical)
Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical) 20 Note: The Company defines adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) as net income (loss) including non-controlling interests, excluding discontinued operations, income taxes, other
Slide 21: Appendix III – Supplemental Non-GAAP Information (Historical)
Appendix III – Supplemental Non-GAAP Information (Historical) 21 Note 1: Operating results from continuing operations attributable to Comfort Systems USA, Inc., excluding goodwill impairment, changes in the fair value of contingent earn-out obligations, tax valuation allowances and out of period adj
Slide 22: Contact
Contact Bill George Executive Vice President and CFO 1-800-723-8431 bill.george@comfortsystemsusa.com www.comfortsystemsusa.com 22
Slide 23: Contact
Contact Bill George Executive Vice President and CFO 1-800-723-8431 bill.george@comfortsystemsusa.com www.comfortsystemsusa.com a SOMESZUSA
Comfort Systems USA — Investor Presentation (August 2017) on 6ix