Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (May 2013)
25 slides from Comfort Systems Usa's investor presentation, May 8, 2013
Slide 1: Comfort Systems USA (NYSE: FIX) May 8, 2013
Comfort Systems USA (NYSE: FIX) May 8, 2013
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 Who We Are Leading HVAC and mechanical systems installation and service provider Focused on commercial, industrial, and institutional HVAC markets What We Do Applied Systems Piping Retrofit Service 3
Slide 4: Broad Nationwide Footprint
Broad Nationwide Footprint 4 36 companies | 87 locations in 72 cities | 6,700+ employees
Slide 5: Our Customers
Our Customers 5 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: Areas of Strength
Areas of Strength Long-term local relationships Collaboration Safety excellence Purchasing economics National service capability Bonding and insurance Balance sheet strength 6
Slide 7: Our Safety Record is No Accident
Our Safety Record is No Accident 7 Lost Time Injury Rate 73% below the industry average OSHA Incident Rate 39% below the industry average Source: Bureau of Labor Statistics, Standard Industry Classification (SIC) Code 20 1711–Specialty Trades Contractors–HVAC and Plumbing & North American Industry C
Slide 8: Energy Efficiency
Energy Efficiency Energy costs drive the need for efficiency. HVAC accounts for 30%–50% of electricity usage. Energy Star (Department of Energy/EPA)/LEED (USGBC). 2–4 year payouts depending on electric rates, usage, age, and incentives. 8 Use Our Energy to Save Yours!™
Slide 9: Revenue/Stock Price History
Revenue/Stock Price History 9 Revenue ($ in millions) Acquisition Phase and Industry Growth Sale of Assets New Acquisitions Stock Price at 12/31 $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 $25.00 $20
Slide 10: Revenue by Activity
Revenue by Activity 10 New Construction/Installation Replacement Service & Maintenance 2008 2013 YTD 57% 13% 30% 45% 16% 39%
Slide 11: Revenue by Sector
Revenue by Sector 11 Education Healthcare Government Manufacturing/Distribution Office Buildings Retail/Restaurants/Entertainment Multi-Family/Residential Other March 2013 YTD Revenue 9% 11% 6% 4% 20% 15% 10% 25%
Slide 12: Diverse Project Mix
Diverse Project Mix 12 Average Project Size: $455,000 | Average Project Length: 6–9 months (Information as of March 31, 2013) Aggregate Contract Value Jobs <$1M (Value: $340M) Jobs $1M–$5M (Value: $617M) Jobs >$5M (Value: $875M) Number of Projects 5,000 4,000 3,000 2,000 1,000 0 3,666 272 86 <$1M $1
Slide 13: Book of Business
Book of Business 13 ($ in millions) Construction Backlog $1,000 $800 $600 $400 $200 $0 1Q 2009 1Q 2010 1Q 2011 1Q 2012 1Q 2013 Service Maintenance Base $200 $150 $100 $50 $0 1Q 2009 1Q 2010 1Q 2011 1Q 2012 1Q 2013
Slide 14: Historical Financial Summary
Historical Financial Summary ($ in millions, except per share information) 14 (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 15: QTD Financial Performance
QTD Financial Performance 15 Three Months Ended ($ in millions, except per share information) 3/31/13 3/31/12 Revenue $ 325.9 $ 326.9 Net Income (Loss) from Continuing Operations Attributable to Comfort Systems USA, Inc. $ 2.6 $ (0.8) Diluted EPS from Continuing Operations Attributable to Comfort Sy
Slide 16: Key Financial Statistics
Key Financial Statistics 16 As of ($ in millions) 3/31/13 12/31/12 Cash $ 25.4 $ 40.8 Working Capital $ 107.0 $ 104.0 Goodwill and Intangible Assets $ 157.2 $ 159.1 Total Debt $ 7.4 $ 7.4 Equity $ 288.8 $ 287.3
Slide 17: Balance Sheet Strength
Balance Sheet Strength $25.4M cash at March 31, 2013 Positive free cash flow for 14 consecutive years Debt capacity $7.4M debt at 3/31/2013 $125M revolving credit facility 2016 maturity 17
Slide 18: Profile for Growth
Profile for Growth 18 Time Earnings Grow Service Innovate Acquire Service Commercial HVAC Grow Construction
Slide 19: Industry Environment: McGraw Hill Construction
Industry Environment: McGraw Hill Construction 19 Source: McGraw Hill Construction 1Q 2013 CMFS Data History Forecast 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Nonresidential 243.0 169.3 163.2 165.0 153.4 162.0 183.8 227.4 257.4 265.7 % Change +2 -30 -4 +1 -7 +6 +13 +24 +13 +3 Total Nonresid
Slide 20: Appendices
Quality People. Building Solutions Appendices
Slide 21: Appendix I—Income Statement (QTD)
Appendix I —Income Statement (QTD) 21 ($ in thousands, except per share information) (1)Adjusted EBITDA is a non-GAAP financial measure. See Appendix II for a GAAP Reconciliation to Adjusted EBITDA. 2013 Revenue 325,890 $ 100.0% 326,902 $ 100.0% Cost of Services 274,423 84.2% 283,971 86.9% Gross Pro
Slide 22: Appendix II—GAAP Reconciliation to Adjusted EBITDA
Appendix II—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 operation, income taxes, other
Slide 23: Appendix IV—Supplemental Non-GAAP Information (Historical)
($ in thousands) Appendix IV—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 and tax valuation allowances are
Slide 24: Appendix V—GAAP Reconciliation to Adjusted EPS (Historical)
Appendix V—GAAP Reconciliation to Adjusted EPS (Historical) 25 Note 1: Operating results from continuing operations attributable to Comfort Systems USA, Inc., excluding goodwill and other intangible asset impairments, changes in the fair value of contingent earn-out obligations and tax valuation all
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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