Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (November 2014)
26 slides from Comfort Systems Usa's investor presentation, Nov 13, 2014
Slide 1: Comfort Systems USA
Comfort Systems USA (NYSE: FIX) November 13, 2014
Slide 2: Disclosures
Disclosures 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. The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,”
Slide 3: Comfort Systems USA Overview
Comfort Systems USA Overview • Leading mid-market HVAC and mechanical systems installation and service provider • Focused on commercial, industrial, and institutional HVAC markets • $1.4B yearly revenue • 7,000+ employees • 37 operating companies • Balanced construction & service portfolio 3
Slide 4: Broad Nationwide Footprint
Broad Nationwide Footprint 37 companies | 92 locations in 83 cities | 7,000+ employees New location 4
Slide 5: Areas of Strength
Areas of Strength • Long-term local relationships • Collaboration • Safety excellence • Purchasing economics • National service capability • Bonding and insurance • Balance sheet strength 5
Slide 6: Our Customers
Our Customers Omni Orlando Resort at ChampionsGate Navy Federal Credit Union Orlando, Florida Pensacola, Florida MedImmune FMC Expansion University Hospital Frederick, Maryland Little Rock, Arkansas 6
Slide 7: Revenue/Stock Price History
Revenue/Stock Price History $2,000 $25.00 $1,800 $1,600 $20.00 $1,400 Revenue ($ in millions) Stock Price at 12 / 31 $1,200 $15.00 $1,000 ` $800 $10.00 $600 $400 $5.00 $200 $0 $- 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Acquisition Phase Sale of Assets New
Slide 8: Revenue by Activity
Revenue by Activity 2008 2014 YTD 13% 18% 43% 57% 30% 39% New Construction / Installation Replacement Service & Maintenance 8
Slide 9: Revenue by Sector
Revenue by Sector September 2014 YTD Revenue Multi-Family / Health Care Residential 11% 8% Retail / Restaurant / Entertainment 12% Education Other 17% 4% Office Building 12% Government 10% Manufacturing / Distribution 26% 9
Slide 10: Book of Business
Book of Business ($ in millions) Construction Backlog $1,000 $800 $600 $400 $200 $508 $598 $630 $618 $604 $657 $0 2009 2010 2011 2012 2013 3Q 2014 Service Maintenance Base $200 $150 $100 $50 $63 $74 $75 $73 $82 $88 $0 3Q 2009 3Q 2010 3Q 2011 3Q 2012 3Q 2013 3Q 2014 10
Slide 11: Historical Financial Summary
Historical Financial Summary ($ in millions, except per share information) Revenue Adjusted EPS (1) $1,500 $1.00 $0.80 $1,000 $0.60 $0.40 $500 $0.20 $0 $0.00 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Operating Cash Flow Adjusted EBITDA (2) $60 $70 $50 $60 $40 $50 $40 $30 $30 $20 $20 $10 $10
Slide 12: Historical Financial Summary
Historical Financial Summary Operating Income % 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% (1) 2007 2008 2009 2010 2011 2012 2013 Adjusted EBITDA % (2) 8.0% 6.0% 4.0% 2.0% 0.0% 2007 2008 2009 2010 2011 2012 2013 (1) Operating income for 2011 excludes goodwill impairment of $57.4M. (2) Adjusted EBITDA i
Slide 13: QTD Financial Performance
QTD Financial Performance Three Months Ended ($ in millions, except per share information) 9/30/14 9/30/13 Revenue $ 370.1 $ 350.0 Net Income from Continuing Operations Attributable to Comfort Systems USA, Inc. $ 7.6 $ 11.4 Diluted EPS from Continuing Operations Attributable to Comfort Systems USA,
Slide 14: YTD Financial Performance
YTD Financial Performance Nine Months Ended ($ in millions, except per share information) 9/30/14 9/30/13 Revenue $ 1,054.3 $ 1,026.9 Net Income from Continuing Operations Attributable to Comfort Systems USA, Inc. $ 12.4 $ 21.7 Diluted EPS from Continuing Operations Attributable to Comfort Systems U
Slide 15: Key Financial Statistics
Key Financial Statistics As of ($ in millions) 9/30/14 12/31/13 Cash $ 43.9 $ 52.1 Working Capital $ 131.0 $ 127.6 Goodwill and Intangible Assets $ 184.3 $ 152.0 Total Debt $ 42.9 $ 2.0 Equity $ 316.8 $ 314.0 15
Slide 16: Balance Sheet Strength
Balance Sheet Strength • $43.9M cash at September 30, 2014 • Positive free cash flow for 15 consecutive years • Debt capacity o $42M debt at 9/30/ 2014 o $250M revolving credit facility o 2019 maturity 16
Slide 17: Long Term Industry Growth
Long Term Industry Growth Commercial, Industrial, Institutional HVAC – A $40B+ Industry • Building solutions $300 o A “necessity” $250 o HVAC accounts for 30%– 50% of electricity usage. $ in billions $200 $150 • Mechanical equipment $100 o Requires service $50 $0 o Repair 1990 1992 1994 1996 1998 20
Slide 18: Earnings Profile for Growth
Profile for Growth Service Earnings Time Commercial HVAC 18
Slide 19: Appendices
Seu A. Appendices
Slide 20: Appendix I — Income Statement (QTD)
Appendix I —Income Statement (QTD) ($ in thousands, except per share information) Three Months Ended September 30, 2014 2013 Revenue $ 370,145 100.0% $ 349,989 100.0% Cost of Services 303,686 82.0% 282,968 80.9% Gross Profit 66,459 18.0% 67,021 19.1% Selling, General and Administrative Expenses 52,2
Slide 21: Appendix II — Income Statement (YTD)
Appendix II —Income Statement (YTD) ($ in thousands, except per share information) Nine Months Ended September 30, 2014 2013 Revenue $ 1,054,327 100.0% $ 1,026,932 100.0% Cost of Services 873,860 82.9% 848,477 82.6% Gross Profit 180,467 17.1% 178,455 17.4% Selling, General and Administrative Expense
Slide 22: Appendix III — GAAP Reconciliation to Adjusted EBITDA
Appendix III —GAAP Reconciliation to Adjusted EBITDA ($ in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2014 2013 2014 2013 Net Income Including Noncontrolling Interests $ 9,379 $ 11,612 $ 16,778 $ 22,621 Discontinued Operations - 25 15 79 Income Taxes 4,649 6,588 9,08
Slide 23: Appendix IV — GAAP Reconciliation to Adjusted EBITDA (Historical)
Appendix IV —GAAP Reconciliation to Adjusted EBITDA (Historical) ($ in thousands) Year Ended December 31, 2007 2008 2009 2010 2011 2012 2013 Net Income (Loss) Including $ 32,466 $ 49,690 $ 34,182 $ 14,740 ($36,492) $11,849 $28,556 Noncontrolling Interests Discontinued Operations (266) 107 (1,282) 5,
Slide 24: Appendix V — Supplemental Non-GAAP Information (Historical)
Appendix V —Supplemental Non-GAAP Information (Historical) ($ in thousands) 2008 2009 2010 2011 2012 2013 Net income (loss) from continuing operations attributable to Comfort Systems USA, Inc. $ 49,797 $ 32,900 $ 20,564 ($32,812) $13,108 $27,345 Goodwill impairment (after tax) - - - 44,805 - - Chang
Slide 25: Appendix VI — GAAP Reconciliation to Adjusted EPS (Historical)
Appendix VI —GAAP Reconciliation to Adjusted EPS (Historical) Year Ended December 31, 2008 2009 2010 2011 2012 2013 Diluted income (loss) per share from continuing operations attributable to Comfort Systems USA, Inc. $ 1.24 $ 0.86 $ 0.54 $ (0.88) $ 0.35 $ 0.73 Goodwill impairment - - - 1.20 - - Chan
Slide 26: Contact
Contact Bill George Executive Vice President and CFO 1-800-723-8431 bill.george@comfortsystemsusa.com www.comfortsystemsusa.com 26
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