Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Q3 2023 Earnings Presentation
15 slides from Comfort Systems Usa's earnings presentation, Oct 27, 2023
Slide 1: Q3 2023 Earnings Call
-Q3 2023 Earnings Call NYSE: FIX October 27, 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: Q3 2023 results highlights
Q3 2023 Revenue was $1,378.1 million compared to $1,120.0 million in Q3 2022 Gross Profit percentage increased to 20.1% vs. 18.1% in Q3 2022 SG&A increased to $142.9 million from $121.2 million in Q3 2022 EPS was $2.93 ($2.74 per diluted share excluding $0.19 benefit related to prior year tax gains)
Slide 4: Three months ended September 30 income statement
($ Thousands, Except Per Share Data) (Unaudited) For the Three Months Ended September 30, Variance 2023 2022 $ % Revenue $ 1,378,124 100.0% $ 1,120,012 100.0% $ 258,112 23.0% Cost of Services 1,100,625 79.9% 917,788 81.9% 182,837 19.9% Gross Profit 277,499 20.1% 202,224 18.1% 75,275 37.2% Selling, G
Slide 5: Cash, working capital, goodwill and debt
($ Millions) 9/30/2023 12/31/2022 (Unaudited) Cash $ 137.6 $ 57.2 Working Capital $ 183.2 $ 136.9 Goodwill $ 637.5 $ 611.8 Intangible Assets, Net $ 274.1 $ 273.9 Total Debt $ 47.3 $ 256.2 Equity $ 1,207.2 $ 999.9
Slide 6: 2023 YTD results highlights
2023 YTD Revenue was $3.85 billion compared to $3.02 billion for the same period in 2022 Gross Profit percentage increased to 18.5% from 17.5% for the same period in 2022 SG&A increased to $414.4 million from $357.7 million for the same period in 2022 EPS was $6.46 per diluted share ($6.19 per dilut
Slide 7: Nine months ended September 30 income statement
($ Thousands, Except Per Share Data) (Unaudited) For the Nine Months Ended September 30, Variance 2023 2022 $ % Revenue $ 3,849,194 100.0% $ 3,023,176 100.0% $ 826,018 27.3% Cost of Services 3,138,370 81.5% 2,492,816 82.5% 645,554 25.9% Gross Profit 710,824 18.5% 530,360 17.5% 180,464 34.0% Selling,
Slide 8: Cash flow and unearned customer cash
($ Millions) (Unaudited) - TTM operating cash flow far exceeds TTM net income - At 9/30/23, we have a very substantial amount of unearned customer cash - Over the coming quarters, we expect pre-bookings and equipment advances will normalize creating cash flow headwind
Slide 9: Backlog
BACKLOG ($ Millions) (Unaudited) $5,000 $4,500 $4,288 $4,064 $4,000 $3,500 $3,000 $2,500 $2,000 $2,312 $1,500 $1,602 $1,000 $598 $630 i I $758 $500 if $- 4 $1,511 || 2010 2011 i i 2014 $1,166 $948 2019 2015 2016 2017 2018 2020 2021 2022 SOMFORTUGA.
Slide 10: Revenue by type of customer (YTD)
REVENUE BY TYPE OF CUSTOMER (YTD) Retail / Restaurant / Entertainment Healthcare 8 SOMFORTUGA.
Slide 11: Revenue by activity type
REVENUE BY ACTIVITY TYPE Annual 2022 y’ YTD 2023 @yew Construction Existing Building Construction @ Service Projects @service Calls, Maintenance & Monitoring 10 COMFORT U SYSTEMS <
Slide 12: Appendix
APPENDIX SOMFORT USA
Slide 13: Net income and EPS excluding tax gains reconciliation
($ Thousands) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Net Income $ 105,125 $ 61,515 $ 231,817 $ 190,523 Tax gains related to prior years (7,393) (1,678) (10,761) (58,933) Tax-related SG&A costs, net of tax 730 166 1,063 3,685 Net income exclud
Slide 14: Adjusted EBITDA reconciliation
($ Thousands) (Unaudited) Three Months Ended Nine Months Ended Septem ber 30, Septem ber 30, 2023 2022 2023 2022 Net Income $ 105,125 $ 61,515 $ 231,817 $ 190,523 Provision (Benefit) for Income Taxes 20,313 12,920 44,648 (24,864) Other Expense (Income), net 44 (46) (1) (101) Changes in the Fair Valu
Slide 15: Free cash flow reconciliation
($ Thousands) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Cash from Operating Activities $ 214,241 $ 61,232 $ 466,560 $ 169,524 Purchases of Property and Equipment (28,444) (14,578) (69,574) (34,793) Proceeds from Sales of Property and Equipment 3