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: 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 $2.0B yearly revenue 9,600+ employees 37 operating companies Balanced construction & service portfolio
Slide 3: National Footprint
National Footprint 3 37 companies 126 locations in 112 cities 9,600+ employees
Slide 4: Targeted Portfolio Strategy
Targeted Portfolio Strategy 4 FY 2017 YTD June 2018 New Construction Existing Building Construction Service Projects Service Calls, Maintenance & Monitoring Revenue = $1.00B Revenue = $1.79B 11% 19% 38% 32% 9% 18% 37% 36%
Slide 5: Market Sectors
Market Sectors 5 YTD June 2018 Revenue Institutional Industrial Revenue = $1.00B
Slide 6: Diverse Project Mix
Diverse Project Mix 6 Average Project Size: $0.6 M Average Project Length: 6–9 months (Information as of June 30, 2018) 4,721 481 121 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 <$1M $1 – $5M >$5M Number of Projects
Slide 7: Book of Business
Book of Business 7 ($ in millions) $76 $75 $83 $89 $104 $111 $116 $119 $0 $25 $50 $75 $100 $125 $150 $175 $200 2011 2012 2013 2014 2015 2016 2017 Q2 2018 Service Maintenance Base $630 $618 $604 $758 $712 $763 $948 $1,228 -$100 $100 $300 $500 $700 $900 $1,100 $1,300 2011 2012 2013 2014 2015 2016 2017
Slide 8: Recent Financial Performance
Recent Financial Performance 8 Three Months Ended Six Months Ended ($ 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 $58.7 Op
Slide 9: Adjusted EPS/Stock Price History
Adjusted EPS/Stock Price History 9 Adjusted EPS at 12/31* Stock Price at 12/31 *Adjusted EPS is a non-GAAP financial measure. Adjusted EPS excludes goodwill impairments, tax valuation allowances and tax expense related to remeasurement of net deferred tax assets. See Appendix III for a GAAP reconcil
Slide 10: Historical Financial Summary
Historical Financial Summary ($ in millions, except per share information) 10 (1) Adjusted EPS is a non-GAAP financial measure. Adjusted EPS excludes goodwill impairments, tax valuation allowances and tax expense related to remeasurement of net deferred tax assets. See Appendix III for a GAAP reconc
Slide 11: 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 $31.0M net debt at June 30, 2018 11
Slide 12: Profile for Growth
Profile for Growth 12 Time Earnings Grow Service Innovate Acquire Service Commercial HVAC Grow Construction
Slide 13: Average Discretionary Spending
13 Average Discretionary Spending ($ in thousands) $30,322 64% $8,717 19% $7,973 17% Average 2006 - 2017 Acquisitions Share Repurchases Dividends $47,012 $46,147 $- $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 14: Our Strengths
Our Strengths 14 Industry leading skilled labor Ability to share knowledge Diverse portfolio Strong balance sheet Acquisition record Positioned for growth
Slide 15: Thank You
Thank You 15 $2.0 Billion $2.0 billion in yearly revenue 126 Locations 37 operating companies across America at 126 locations in 112 cities 9,600+ of the most qualified HVAC and Mechanical systems personnel in the USA 9,600+ Employees Contact: Bill George Executive Vice President & CFO 1-800-723-843
Slide 16: Appendix I – GAAP Reconciliation to Adjusted EBITDA
Appendix I – GAAP Reconciliation to Adjusted EBITDA 16 Three Months Ended June 30, Six Months Ended June 30, ($ 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) Cha
Slide 17: Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical)
Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical) 17 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, provision for income
Slide 18: Appendix III – GAAP Reconciliation to Adjusted EPS (Historical)
Appendix III – GAAP Reconciliation to Adjusted EPS (Historical) 18 Note 1: Operating results from continuing operations attributable to Comfort Systems USA, Inc., excluding goodwill impairment, tax valuation allowances, tax expense related to remeasurement of net deferred tax assets and out of perio
Slide 19: Appendix III - GAAP Reconciliation to Adjusted EPS (Historical)
Appendix Ill - GAAP Reconciliation to Adjusted EPS (Historical) Year Ended December 31, zoiz | 2013 | 2014 | 205 | 2016 | 2017 Diluted income (loss) per share from continuing operations attributable to Comfort Systems USA, ne. | cease | ects | Mcrae ecsaal | eeane Goodwillimpairment : 0.01 : 0.02 Ta
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