Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (November 2018)
18 slides from Comfort Systems Usa's investor presentation, Nov 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 • Leading mid-market HVAC and mechanical systems installation and service provider $2.0B yearly revenue 9,800+ employees 37 operating companies Balanced construction & service portfolio • • • • 2
Slide 3: National Footprint
National Footprint 37 companies 1 1271ocations in 113 cities 19,800+ employees COMFORTU LlA SYSTEMSf7#4e 3
Slide 4: Targeted Portfolio Strategy
Targeted Portfolio Strategy Revenue = $1.79B Revenue = $1.59B 10.5% 9.4% 32.1% 35.5% 17.5% 19.5% 37.9% 37.6% New Construction Existing Building Construction Service Projects Service Calls, Maintenance & Monitoring 4 YTD September 2018 FY 2017
Slide 5: Market Sectors
Market Sectors Multi-Fami y / Residenti 6.5% Retail / Restaurant / Entertai ment l 13.4% Other 4.1% 10.7% Education 9.6% Office Building 14.1% Gover ment 6.6% Industrial 25.0% YTD September 2018 Revenue Revenue = $1.59B 5
Slide 6: Diverse Project Mix
Diverse Project Mix Number of Projects 6,000 4,920 5,000 4,000 3,000 2,000 1,000 0 <$1M $1–$5M >$5M Average Project Size: $0.6 M | Average Project Length: 6 – 9 months (Information as of September 30, 2018) 6 512 125
Slide 7: Book of Business: Construction Backlog and Service Maintenance Base
Book ($ in millions) of Business Construction Backlog $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 2011 2012 2013 2014 2015 2016 2017 Q3 2018 Service Maintenance Base $200 $175 $150 $125 $100 $75 $50 $25 $0 2011 2012 2013 2014 2015 2016 2017 Q3 2018 7 $116 $119 $111 $104 $89 $83 $76 $75 $1,255 $948 $
Slide 8: Recent Financial Performance
Recent Financial Performance 9/30/18 9/30/17 9/30/18 9/30/17 information) (1)Adjusted EBITDA is a non-GAAP financial measure. See Appendix I for a GAAP reconciliation to Adjusted EBITDA. 8 Three Months EndedNine Months Ended ($ in millions, except per share Revenue$594.5 $480.9 $1,594.5 $1,326.9 Net
Slide 9: Adjusted EPS/Stock Price History
Adjusted EPS/Stock Price History $2.00 $50.00 $1.80 $45.00 $1.60 $40.00 $1.40 $35.00 $1.20 $30.00 $1.00 $25.00 $0.80 $20.00 $0.60 $15.00 $0.40 $10.00 $0.20 $5.00 $-$- 2012 2013 2014 2015 2016 2017 Adjusted EPS at 12/31* Stock Price at 12/31 *Adjusted EPS is a non-GAAP financial measure. Adjusted EPS
Slide 10: Historical Financial Summary
Historical Financial ($ in millions, except per share information) Summary Adjusted EPS (1) Revenue CAGR = 6.08% CAGR = 37.81% $2,100 $1,800 $1,500 $1,200 $900 $600 $300 $0 $2.00 $1.60 $1.20 $0.80 $0.40 $0.00 20122013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 Operating Cash Flow CAGR = 30.19
Slide 11: Balance Sheet Strength
Balance Sheet Strength • • $19.2M cash at September 30, Positive free cash flow for 19 consecutive years Debt capacity 2018 • – – – $97.0M debt at 9/30/18 $400M revolving credit facility 2023 maturity • • Debt/TTM EBITDA = 0.6 $77.8M net debt 2018 at September 30, 11
Slide 12: Profile for Growth
Profile for Growth Service Time Commercial HVAC 12 Earnings
Slide 13: Our Strengths
Our Strengths • Industry leading skilled labor • Ability to share knowledge • Diverse portfolio • Strong balance sheet • Acquisition record • Positioned for growth 14
Slide 14: Thank You
Thank You Contact: Bill George Executive Vice President & CFO 1-800-723-8431 Bill.George@comfortsystemsusa.com www.comfortsystemsusa.com 15 $2.0 Billion $2.0 billion in yearly revenue 127 Locations 37 operating companies across America at 127 locations in 113 cities 9,800+ Employees 9,800+ of the mo
Slide 15: Appendix I – GAAP Reconciliation to Adjusted EBITDA
Appendix I – GAAP Reconciliation to Adjusted EBITDA Note: The Company defines adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) as net income, provision for income taxes, other (income) expense, net, changes in the fair value of contingent earn-out obligatio
Slide 16: Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical)
Appendix (Historical) II – GAAP Reconciliation to Adjusted EBITDA 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 ta
Slide 17: Appendix III – GAAP Reconciliation to Adjusted EPS (Historical)
Appendix (Historical) III – GAAP Reconciliation to Adjusted EPS 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 period a
Slide 18: Appendix III - GAAP Reconciliation to Adjusted EPS
Appendix III - GAAP Reconciliation to Adjusted EPS (Historical) Year Ended December 3, zo | 2 | 2m | 2s | 2m6 | 207 Diuted income (os) pe share fom continuing operations » | on | com | sa | an | sar attributable to Comfort Systems USA, Inc, = bee G c G G ‘Goodiimpaiement = | oot om at vation allowan
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