Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (November 2014)
25 slides from Comfort Systems Usa's investor presentation, Nov 13, 2014
Slide 1: Comfort Systems USA
(NYSE: FIX) November 13, 2014 Comfort Systems USA
Slide 2: Disclosures Safe Harbor
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 $1.4B yearly revenue 7,000+ employees 37 operating companies Balanced construction & service portfolio 3
Slide 4: Areas of Strength
Areas of Strength Long-term local relationships Collaboration Safety excellence Purchasing economics National service capability Bonding and insurance Balance sheet strength 5
Slide 5: Our Customers
Our Customers 6 Omni Orlando Resort at ChampionsGate Orlando, Florida University Hospital Little Rock, Arkansas Navy Federal Credit Union Pensacola, Florida MedImmune FMC Expansion Frederick, Maryland
Slide 6: Revenue/Stock Price History
Revenue/Stock Price History 7 Revenue ($ in millions) Acquisition Phase and Industry Growth Sale of Assets New Acquisitions Stock Price at 12/31
Slide 7: Revenue by Activity
Revenue by Activity 8 New Construction/Installation Replacement Service & Maintenance 2008 2014 YTD
Slide 8: Revenue by Sector
Revenue by Sector 9 September 2014 YTD Revenue
Slide 9: Book of Business
Book of Business 10 ($ in millions)
Slide 10: Historical Financial Summary
Historical Financial Summary ($ in millions, except per share information) 11 (1) Adjusted EPS is a non-GAAP financial measure. Adjusted EPS excludes goodwill impairments, changes in the fair value of contingent earn-out obligations and tax valuation allowances. See Appendix V for a GAAP reconciliat
Slide 11: Historical Financial Summary
Historical Financial Summary 12 (1) Operating income for 2011 excludes goodwill impairment of $57.4M. (2) Adjusted EBITDA is a non-GAAP financial measure. See Appendix III for a GAAP reconciliation to Adjusted EBITDA. (1)
Slide 12: QTD Financial Performance
QTD Financial Performance 13 Three Months Ended ($ 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 US
Slide 13: YTD Financial Performance
YTD Financial Performance 14 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 System
Slide 14: Key Financial Statistics
Key Financial Statistics 15 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
Slide 15: Balance Sheet Strength
Balance Sheet Strength $43.9M cash at September 30, 2014 Positive free cash flow for 15 consecutive years Debt capacity $42M debt at 9/30/2014 $250M revolving credit facility 2019 maturity 16
Slide 16: Long Term Industry Growth
Long Term Industry Growth 17 Commercial, Industrial, Institutional HVAC–A $40B+ Industry Source: McGraw Hill Construction 3Q 2014 CMFS Data Building solutions A “necessity” HVAC accounts for 30%–50% of electricity usage. Mechanical equipment Requires service Repair Replacement Increasing technical c
Slide 17: Profile for Growth
Profile for Growth 18 Time Earnings Grow Service Innovate Acquire Service Commercial HVAC Grow Construction
Slide 18: Appendices
sverevsU A Appendices
Slide 19: Appendix I—Income Statement (QTD)
Appendix I —Income Statement (QTD) 20 ($ in thousands, except per share information) (1)Adjusted EBITDA is a non-GAAP financial measure. See Appendix III for a GAAP Reconciliation to Adjusted EBITDA. 2014 Revenue 370,145 $ 100.0% 349,989 $ 100.0% Cost of Services 303,686 82.0% 282,968 80.9% Gross Pr
Slide 20: Appendix II—Income Statement (YTD)
Appendix II —Income Statement (YTD) 21 ($ in thousands, except per share information) (1)Adjusted EBITDA is a non-GAAP financial measure. See Appendix III for a GAAP Reconciliation to Adjusted EBITDA. 2014 Revenue 1,054,327 $ 100.0% 1,026,932 $ 100.0% Cost of Services 873,860 82.9% 848,477 82.6% Gro
Slide 21: Appendix III—GAAP Reconciliation to Adjusted EBITDA
Appendix III —GAAP Reconciliation to Adjusted EBITDA 22 ($ in thousands) Note: The Company defines adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) as net income (loss) including noncontrolling interests, excluding discontinued operations, income taxes, oth
Slide 22: Appendix IV—GAAP Reconciliation to Adjusted EBITDA (Historical)
($ in thousands) Appendix IV —GAAP Reconciliation to Adjusted EBITDA (Historical) 23 Note: The Company defines adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) as net income (loss) including noncontrolling interests, excluding discontinued operations, incom
Slide 23: Appendix V—Supplemental Non-GAAP Information (Historical)
($ in thousands) Appendix V —Supplemental Non-GAAP Information (Historical) 24 Note 1: Operating results from continuing operations attributable to Comfort Systems USA, Inc., excluding goodwill impairment, changes in the fair value of contingent earn-out obligations, tax valuation allowances and out
Slide 24: Appendix VI—GAAP Reconciliation to Adjusted EPS (Historical)
Appendix VI —GAAP Reconciliation to Adjusted EPS (Historical) 25 Note 1: Operating results from continuing operations attributable to Comfort Systems USA, Inc., excluding goodwill impairment, changes in the fair value of contingent earn-out obligations, tax valuation allowances and out of period adj
Slide 25: Contact
Contact 26 Bill George Executive Vice President and CFO 1-800-723-8431 bill.george@comfortsystemsusa.com www.comfortsystemsusa.com
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