Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (May 2013)
26 slides from Comfort Systems Usa's investor presentation, May 8, 2013
Slide 1: Comfort Systems USA
Comfort Systems USA (NYSE: FIX) May 8, 2013
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 36 companies | 87 locations in 72 cities | 6,700+ 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: OSHA Recordable Incident Rate
Our Safety Record is No Accident 14 Lost Time Injury Rate 12 73% below the industry average OSHA Recordable Incident Rate 10 OSHA Incident Rate 8 39% below the industry average 6 4 2 0 1998 2000 2002 2004 2006 2008 2010 2012 Comfort Systems USA (March 2013 data) Industry Average (December 2011 – All
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 2012 Acquisition Phase Sale of Assets New Acqu
Slide 10: Revenue by Activity
Revenue by Activity 2008 2013 YTD 13% 16% 45% 57% 30% 39% New Construction/Installation Replacement Service & Maintenance 10
Slide 11: Revenue by Sector
Revenue by Sector March 2013 YTD Revenue 4% 6% Education 20% Healthcare 11% Government Manufacturing / Distribution 9% Office Buildings 15% Retail / Restaurants / Entertainment Multi-Family / Residential 10% Other 25% 11
Slide 12: Diverse Project Mix
Diverse Project Mix Number of Projects Aggregate Contract Value 5,000 4,000 3,666 18% 3,000 48% 2,000 34% 1,000 272 86 0 <$1M $1–$5M >$5M Jobs <$1M (Value: $340M) Jobs $1M – $5M (Value: $617M) Jobs >$5M (Value: $875M) Average Project Size: $455,000 | Average Project Length: 6–9 months (Information a
Slide 13: Book of Business
Book of Business ($ in millions) Construction Backlog $1,000 $800 $600 $400 $200 $631 $464 $600 $620 $631 $0 1Q 2009 1Q 2010 1Q 2011 1Q 2012 1Q 2013 Service Maintenance Base $200 $150 $100 $50 $63 $61 $72 $73 $81 $0 1Q 2009 1Q 2010 1Q 2011 1Q 2012 1Q 2013 13
Slide 14: Historical Financial Summary
Historical Financial Summary ($ 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 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Operating Cash Flow Adjusted EBITDA (2) $100 $100 $80 $80
Slide 15: QTD Financial Performance
QTD Financial Performance Three Months Ended ($ 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 Syste
Slide 16: Key Financial Statistics
Key Financial Statistics 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 16
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 o $7.4M debt at 3/31/ 2013 o $125M revolving credit facility o 2016 maturity 17
Slide 18: Earnings Profile for Growth
Profile for Growth Service Earnings Time Commercial HVAC 18
Slide 19: Industry Environment: McGraw Hill Construction
Industry Environment: McGraw Hill Construction Comfort Systems USA in the Next Cycle Total Nonresidential Construction Starts Billions of Current Dollars History Forecast • Expanding service 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 • Growing markets • Investing in our workforce Nonresidenti
Slide 20: Appendices
svstemsU A. Quality People. Building Solutions.
Slide 21: Appendix I—Income Statement (QTD)
Appendix I —Income Statement (QTD) ($ in thousands, except per share information) Three Months Ended March 31, 2013 2012 Revenue $ 325,890 100.0% $ 326,902 100.0% Cost of Services 274,423 84.2% 283,971 86.9% Gross Profit 51,467 15.8% 42,931 13.1% Selling, General and Administrative Expenses 46,520 1
Slide 22: Appendix II—GAAP Reconciliation to Adjusted EBITDA
Appendix II—GAAP Reconciliation to Adjusted EBITDA ($ in thousands) Three Months Ended March 31, 2013 2012 Net Income (Loss) Including Noncontrolling Interests $ 2,695 $ (2,668) Discontinued Operation 54 237 Income Taxes 2,043 (944) Other (Income) Expense, net (64) (51) Changes in the Fair Value of
Slide 23: Appendix III—GAAP Reconciliation to Adjusted EBITDA (Historical)
Appendix III—GAAP Reconciliation to Adjusted EBITDA (Historical) ($ in thousands) Year Ended December 31, 2008 2009 2010 2011 2012 Net Income (Loss) Including Noncontrolling Interests $ 49,690 $ 34,182 $ 14,740 ($36,492) $11,849 Discontinued Operations 107 (1,282) 5,824 4,018 (355) Income Taxes 30,8
Slide 24: Appendix IV—Supplemental Non-GAAP Information (Historical)
Appendix IV—Supplemental Non-GAAP Information (Historical) ($ in thousands) Year Ended December 31, 2008 2009 2010 2011 2012 Net income (loss) from continuing operations attributable to Comfort Systems USA, Inc. $ 49,797 $ 32,900 $ 20,564 ($32,812) $13,108 Goodwill impairment (after tax) - - - 44,80
Slide 25: Appendix V—GAAP Reconciliation to Adjusted EPS (Historical)
Appendix V—GAAP Reconciliation to Adjusted EPS (Historical) Year Ended December 31, 2008 2009 2010 2011 2012 Diluted income (loss) per share from continuing operations attributable to Comfort Systems USA, Inc. $ 1.24 $ 0.86 $ 0.54 $ (0.88) $ 0.35 Goodwill and other intangible asset impairments - - -
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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