Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (May 2012)
26 slides from Comfort Systems Usa's investor presentation, May 8, 2012
Slide 1: Comfort Systems USA
Comfort Systems USA (NYSE: FIX) May 8, 2012
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 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 37 companies | 86 locations in 72 cities | 7,000+ employees 4
Slide 5: 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 5
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 14 Lost Time Injury Rate 12 75% below the industry average OSHA Recordable Incident Rate, % 20% Difference 10 OSHA Incident Rate 8 27% below the industry average 6 27% Difference 4 2 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Industr
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. Use Our Energy to Save Yours!™ 8
Slide 9: 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 $- 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Acquisition Phase Sale of Assets New Acquisiti
Slide 10: Historical Financial Summary
Historical Financial Summary ($ in millions, except per share information) Revenue Adjusted EPS (1) $1,400 $1.40 $1,200 $1.20 $1,000 $1.00 $800 $0.80 $600 $0.60 $400 $0.40 $200 $0.20 $0 $0.00 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Operating Cash Flow Adjusted EBITDA (2) $100 $100 $80 $80
Slide 11: Revenue by Activity
Revenue by Activity 2008 2011 13% 17% 43% 57% 30% 40% New Construction/Installation Replacement Service & Maintenance 11
Slide 12: Revenue by Sector
Revenue by Sector March 2012 Year-to-Date Revenue 5% 5% 18% Education 7% Healthcare Government 8% Manufacturing / Distribution 13% Office Buildings Retail / Restaurants / Entertainment Multi-Family / Residential 29% 15% Other 12
Slide 13: Diverse Project Mix
Diverse Project Mix Number of Projects Aggregate Contract Value 5,000 3,915 4,000 17% 3,000 51% 2,000 32% 1,000 264 96 0 <$1M $1–$5M >$5M Jobs <$1M (Value: $330M) Jobs $1M – $5M (Value: $600M) Jobs >$5M (Value: $967M) Average Project Size: $444,000 | Average Project Length: 6–9 months (Information a
Slide 14: Book of Business
Book of Business ($ in millions) Construction Backlog $1,000 $800 $600 $400 $200 $0 2007 2008 2009 2010 2011 Service Maintenance Base $200 $150 $100 $50 $0 2007 2008 2009 2010 2011 14
Slide 15: Full Year 2010/2011 Financial Performance
Full Year 2010/2011 Financial Performance Year Ended ($ in millions, except per share information) 12/31/11 12/31/10 Revenue $ 1,240.0 $ 1,108.3 Adjusted Net Income (1) $ 5.7 $ 16.4 Adjusted EPS (2) $ 0.15 $ 0.43 Adjusted EBITDA (3) $ 29.4 $ 42.7 Operating Cash Flow $ 29.7 $ 32.1 (1)Adjusted Net Inc
Slide 16: Key Financial Statistics
Key Financial Statistics As of ($ in millions) 3/31/12 12/31/11 Cash $ 27.9 $ 51.2 Working Capital $ 107.3 $ 109.3 Goodwill and Intangible Assets $ 153.4 $ 155.4 Total Debt $ 15.3 $ 15.4 Equity $ 279.2 $ 283.1 16
Slide 17: Balance Sheet Strength
Balance Sheet Strength • $28M cash at March 31, 2012 • Positive free cash flow for 13 consecutive years • Debt capacity o $15M debt at 3/31/ 2012 o $125M revolving credit facility o 2016 maturity 17
Slide 18: Profile for Growth
Profile for Growth Service Earnings Time Commercial HVAC 18
Slide 19: Positioned to Rise
Positioned to Rise Comfort Systems USA in the Next Cycle • Expanding service • Growing markets • Investing in our workforce • Focusing on our customers Commercial, Industrial, Institutional HVAC – A $40B+ Industry $350 $300 $250 $ in billions $200 $150 $100 $50 $0 1980 1982 1984 1986 1988 1990 1992
Slide 20: Appendices
svstemsU A. Quality People. Building Solutions.
Slide 21: Appendix I—Income Statement
Appendix I —Income Statement ($ in thousands, except per share information) Three Months Ended March 31, 2012 2011 Revenue $ 329,410 100.0% $ 282,059 100.0% Cost of Services 286,666 87.0% 247,850 87.9% Gross Profit 42,744 13.0% 34,209 12.1% Selling, General and Administrative Expenses 46,363 14.1% 4
Slide 22: Appendix II—GAAP Reconciliation to Adjusted EBITDA (Quarterly)
Appendix II—GAAP Reconciliation to Adjusted EBITDA (Quarterly) ($ in thousands) Three Months Ended March 31, 2012 2011 Net Loss Including Noncontrolling Interests $ (2,668) $ (5,170) Income Taxes (1,106) (3,699) Other (Income) Expense, net (52) (15) Changes in the Fair Value of Contingent Earn-out O
Slide 23: Appendix III—GAAP Reconciliation to Adjusted EBITDA (Annual)
Appendix III—GAAP Reconciliation to Adjusted EBITDA (Annual) ($ in thousands) Year Ended December 31, 2007 2008 2009 2010 2011 Net Income (Loss) Including Noncontrolling Interests $ 32,466 $ 49,690 $ 34,182 $ 14,740 $ (36,492) Discontinued Operations - 114 414 (723) - Income Taxes 20,080 30,866 21,4
Slide 24: Appendix IV—Supplemental Non-GAAP Information
Appendix IV—Supplemental Non-GAAP Information ($ in thousands) Year Ended December 31, 2007 2008 2009 2010 2011 Net income (loss) from continuing operations attributable to Comfort Systems USA, Inc. $ 32,219 $ 49,804 $ 34,596 $ 14,017 $ (36,830) Goodwill and other intangible asset impairments (after
Slide 25: Appendix V—GAAP Reconciliation to Adjusted EPS
Appendix V—GAAP Reconciliation to Adjusted EPS Year Ended December 31, 2007 2008 2009 2010 2011 Diluted income (loss) per share from continuing operations attributable to Comfort Systems USA, Inc. $ 0.78 $ 1.24 $ 0.90 $ 0.37 $ (0.99) Goodwill and other intangible asset impairments - - - 0.09 1.22 Ch
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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