Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (March 2019)
20 slides from Comfort Systems Usa's investor presentation, Mar 1, 2019
Slide 1: Comfort Systems USA
Comfort Systems USA Quality People. Building Solutions. NYSE: FIX March 1, 2019
Slide 2: 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 3: Comfort Systems USA
Comfort Systems USA • Leading mid-market HVAC and mechanical systems installation and service provider • $2.2B yearly revenue • 9,900+ employees • 36 operating companies • Balanced construction & service portfolio 2
Slide 4: National Footprint
National Footprint 36 companies | 128 locations in 114 cities | 9,900+ employees 3
Slide 5: Targeted Portfolio Strategy
Targeted Portfolio Strategy FY 2018 FY 2017 Revenue = $2.18B Revenue = $1.79B 9.5% 11.1% 16.0% 32.4% 36.5% 18.2% 38.0% 38.3% New Construction Existing Building Construction Service Projects Service Calls, Maintenance & Monitoring 4
Slide 6: Market Sectors
Market Sectors Multi-Family / Residential 6.2% Retail / Restaurant / Health Care Entertainment 14.7% Other 10.3% 3.7% Office Building Education 13.2% 18.0% Government 6.6% Industrial 27.3% 2018 Revenue Revenue = $2.18B 5
Slide 7: Diverse Project Mix
Diverse Project Mix Number of Projects 5,000 4,586 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 499 500 123 0 <$1M $1–$5M >$5M Average Project Size: $0.6 M | Average Project Length: 6 – 9 months (Information as of December 31, 2018) 6
Slide 8: Book of Business
Book of Business ($ in millions) Construction Backlog $1,400 $1,200 $1,000 $800 $600 $400 $200 $630 $618 $604 $758 $712 $763 $948 $1,166 $0 2011 2012 2013 2014 2015 2016 2017 2018 Service Maintenance Base $200 $175 $150 $125 $100 $75 $50 $25 $76 $75 $83 $89 $104 $111 $116 $123 $0 2011 2012 2013 2014
Slide 9: Recent Financial Performance
Recent Financial Performance Three Months Ended Twelve Months Ended ($ in millions, except per share information) 12/31/18 12/31/17 12/31/18 12/31/17 Revenue $588.4 $461.1 $2,182.9 $1,787.9 Net Income $25.2 $7.5 $112.9 $55.3 Diluted EPS $0.67 $0.20 $3.00 $1.47 Adjusted EPS (1) $0.67 $0.45 $2.93 $1.7
Slide 10: Adjusted EPS/Stock Price History
Adjusted EPS/Stock Price History $3.50 $50.00 $45.00 $3.00 $40.00 $2.50 $35.00 Stock Price at 12 / 31 Adjusted EPS at 12/31* $30.00 $2.00 $25.00 ` $1.50 $20.00 $1.00 $15.00 $10.00 $0.50 $5.00 $- $- 2013 2014 2015 2016 2017 2018 Adjusted EPS at 12/31* Stock Price at 12/31 *Adjusted EPS is a non-GAAP
Slide 11: Historical Financial Summary
Historical Financial Summary ($ in millions, except per share information) Revenue Adjusted EPS (1) CAGR = 9.97% CAGR = 33.15% $2,400 $3.20 $2,100 $2.80 $1,800 $2.40 $1,500 $2.00 $1,200 $1.60 $900 $1.20 $600 $0.80 $300 $0.40 $0 $0.00 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 Operat
Slide 12: Balance Sheet Strength
Balance Sheet Strength • $45.6M cash at December 31, 2018 • Positive free cash flow for 20 consecutive years • Debt capacity – $76.9M debt at 12/31/18 – $400M revolving credit facility – 2023 maturity • Debt/TTM EBITDA = 0.4 • $31.3M net debt at December 31, 2018 11
Slide 13: Earnings Profile for Growth
Profile for Growth Service Earnings Time Commercial HVAC 12
Slide 14: Average Discretionary Spending
Average Discretionary Spending ($ in thousands) Average 2006 - 2018 $8,304 16% $10,242 20% $33,385 64% Acquisitions Share Repurchases Dividends $60,000 $51,952 $51,930 $50,000 $40,000 $30,000 $20,000 $10,000 $- Free Cash Flow Disc Spending 13
Slide 15: Our Strengths
Our Strengths • Industry leading skilled labor • Ability to share knowledge • Diverse portfolio • Strong balance sheet • Acquisition record • Positioned for growth 14
Slide 16: Thank You
Thank You 9,900+ Employees 9,900+ of the most qualified HVAC and Mechanical systems personnel in America 128 Locations 36 operating companies across America at 128 locations in 114 cities $2.2 Billion $2.2 billion in yearly revenue Contact: Bill George Executive Vice President & CFO 1-800-723-8431 B
Slide 17: Appendix I – GAAP Reconciliation to Adjusted EBITDA
Appendix I – GAAP Reconciliation to Adjusted EBITDA Three Months Ended December 31, Twelve Months Ended December 31, ($ in thousands) 2018 2017 2018 2017 Net Income $25,156 $7,539 $112,903 $55,272 Provision for Income Taxes 9,307 18,478 35,773 45,666 Other Expense (Income), net (79) (992) (4,141) (1
Slide 18: Appendix II – GAAP Reconciliation to Adjusted EBITDA
Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical) Year Ended December 31, ($ in thousands) 2013 2014 2015 2016 2017 2018 Net Income Including Non-controlling $28,556 $28,599 $57,440 $64,896 $55,272 $112,903 Interests Discontinued Operations 76 15 - - - - Provision for Income Taxes 18
Slide 19: Appendix III – GAAP Reconciliation to Adjusted EPS
Appendix III – GAAP Reconciliation to Adjusted EPS Three months ended Twelve months ended December 31, December 31, 2018 2017 2018 2017 Diluted income per share $0.67 $0.20 $3.00 $1.47 Goodwill impairment - - - 0.02 Tax expense (benefit) for the corporate tax rate reduction and tax - 0.25 (0.07) 0.2
Slide 20: Appendix IV – GAAP Reconciliation to Adjusted EPS
Appendix IV – GAAP Reconciliation to Adjusted EPS (Historical) Year Ended December 31, 2013 2014 2015 2016 2017 2018 Diluted income per share from continuing operations attributable to $0.73 $0.61 $1.30 $1.72 $1.47 $3.00 Comfort Systems USA, Inc. Goodwill impairment - 0.01 - - 0.02 - Tax valuation a
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