Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Q2 2023 Earnings Presentation
15 slides from Comfort Systems Usa's earnings presentation, Jul 27, 2023
Slide 1: Q2 2023 Earnings Call
-Q2 2023 Earnings Call NYSE: FIX July 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: Q2 2023 highlights
Q2 2023 Revenue was $1,296.4 million compared to $1,017.9 million in Q2 2022 Gross Profit percentage increased to 17.6% vs. 17.2% in Q2 2022 SG&A increased to $136.4 million from $118.7 million in Q2 2022 EPS was $1.93 per diluted share compared to $1.17 in Q2 2022 Q2 2023 Cash Flow from Operations
Slide 4: Q2 2023 income statement summary
($ Thousands, Except Per Share Data) (Unaudited) For the Three Months Ended June 30, Variance 2023 2022 $ % Revenue $ 1,296,430 100.0% $ 1,017,948 100.0% $ 278,482 27.4% Cost of Services 1,068,510 82.4% 842,956 82.8% 225,554 26.8% Gross Profit 227,920 17.6% 174,992 17.2% 52,928 30.2% Selling, Genera
Slide 5: Cash, Working Capital, Goodwill
($ Millions) 6/30/2023 12/31/2022 (Unaudited) Cash $ 60.0 $ 57.2 Working Capital $ 18.8 $ 136.9 Goodwill $ 637.5 $ 611.8 Intangible Assets, Net $ 285.1 $ 273.9 Total Debt $ 147.3 $ 256.2 Equity $ 1,111.5 $ 999.9
Slide 6: 2023 YTD highlights
2023 YTD Revenue was $2.47 billion compared to $1.90 billion for the same period in 2022 Gross Profit percentage increased to 17.5% from 17.2% for the same period in 2022 SG&A increased to $271.5 million from $236.5 million for the same period in 2022 EPS was $3.53 per diluted share ($3.45 per dilut
Slide 7: Six months ended June 30 income statement summary
($ Thousands, Except Per Share Data) (Unaudited) For the Six Months Ended June 30, Variance 2023 2022 $ % Revenue $ 2,471,070 100.0% $ 1,903,164 100.0% $ 567,906 29.8% Cost of Services 2,037,745 82.5% 1,575,028 82.8% 462,717 29.4% Gross Profit 433,325 17.5% 328,136 17.2% 105,189 32.1% Selling, Gener
Slide 8: Operating cash flow and unearned customer cash
($ Millions) (Unaudited) - TTM operating cash flow far exceeds TTM net income - At 6/30/23, 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) $4,500 $4,000 $4,186 $3,500 $3,000 $2,500 $2,000 $1,500 $1,602 $1,166 $948 $1,000 $598 $630 $618 $604 $758 gviz 8788 ~ 1 ll ll ll $- 5 1 r ; + $4,064 $2,312 | 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $1,511 2020 2021 2022 = Q223 SOMFORTUGA.
Slide 10: Revenue by type of customer (YTD)
REVENUE BY TYPE OF CUSTOMER (YTD) 8 SOMFORTUGA.
Slide 11: Revenue by activity type
REVENUE BY ACTIVITY TYPE Annual 2022 y’ YTD 2023 @yew Construction Existing Building Construction @ Service Projects @service Calls, Maintenance & Monitoring 10 COMFORT U SYSTEMS <
Slide 12: Appendix
APPENDIX SOMFORT USA
Slide 13: Reconciliation to adjusted net income and EPS
($ Thousands) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Net Income $ 69,476 $ 42,246 $ 126,692 $ 129,008 Tax gains related to prior years - - (3,368) (57,255) Tax-related SG&A costs, net of tax - - 333 3,519 Net income excluding tax gains $ 69,476 $ 42,246
Slide 14: Reconciliation to Adjusted EBITDA
($ Thousands) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Net Income $ 69,476 $ 42,246 $ 126,692 $ 129,008 Provision (Benefit) for Income Taxes 15,726 11,269 24,335 (37,784) Other Expense (Income), net (44) 1 (45) (55) Changes in the Fair Value of Contingent
Slide 15: Free cash flow reconciliation
($ Thousands) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Cash from Operating Activities $ 125,410 $ 44,563 $ 252,319 $ 108,292 Purchases of Property and Equipment (24,610) (11,023) (41,130) (20,215) Proceeds from Sales of Property and Equipment 1,464 503 2,