Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (November 2016)
25 slides from Comfort Systems Usa's investor presentation, Nov 3, 2016
Slide 1: Comfort Systems USA
Comfort Systems USA Quality People. Building Solutions. November 3, 2016
Slide 2: Safe Harbor
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,” or other sim
Slide 3: Comfort Systems USA
Comfort Systems USA • Leading mid-market HVAC and mechanical systems installation and service provider • $1.6B yearly revenue • 7,800+ employees • 35 operating companies • Balanced construction & service portfolio 2
Slide 4: National Footprint
National Footprint 35 companies | 91 locations in 84 cities | 7,800+ employees 3
Slide 5: Our Markets
Our Markets Every Building You See … Light Heavy Light Heavy Residential Commercial Industrial Commercial Commercial Industrial Industrial … Needs What We Do 4
Slide 6: Targeted Portfolio Strategy
Targeted Portfolio Strategy Revenue by Activity • Light commercial to heavy 100% commercial 18% 19% 80% 10% 11% • Continue to grow 60% 28% 31% construction 40% • Leverage existing 20% 44% 39% construction capabilities 0% into retrofit market 2015 2016 YTD Service & Maintenance • Access to new custom
Slide 7: Market Sectors
Market Sectors Multi-Family / Residential Health Care 8% 12% Retail / Restaurant / Entertainment Other 12% 3% Education 20% Office Building 12% Government Industrial / 10% Distribution 23% September 2016 YTD Revenue 6
Slide 8: Diverse Project Mix
Diverse Project Mix Number of Projects Aggregate Contract Value 4,500 4,092 4,000 3,500 3,000 21% 2,500 37% 2,000 1,500 1,000 42% 500 336 90 0 <$1M $1–$5M >$5M Jobs <$1M (Value: $449M) Jobs $1M – $5M (Value: $763M) Jobs >$5M (Value: $878M) Average Project Size: $0.5M | Average Project Length: 6 – 9
Slide 9: Lifecycle Product Portfolio
Lifecycle Product Portfolio • 5+ million nonresidential buildings • Building solutions a necessity • Diverse revenue streams throughout lifecycle • 10 - 20 year replacement cycle • Recurring service • Increasing technical content • Essential to energy efficiency 8
Slide 10: Why We Win
Why We Win Be Here Investment in service technology When I Need Real time GPS You Always Handle National training program My Problems Better positioned to attract labor The First Time Advantaged Leverage our scale and national Value footprint Position Make It Really Technology investments Easy To Do
Slide 11: Book of Business
Book of Business ($ in millions) Construction Backlog $1,000 $800 $600 $400 $200 $630 $618 $604 $758 $712 $719 $0 2011 2012 2013 2014 2015 Q3 2016 Service Maintenance Base $500 $400 $300 $200 $100 $76 $75 $83 $89 $104 $111 $0 2011 2012 2013 2014 2015 Q3 2016 10
Slide 12: Recent Financial Performance
Recent Financial Performance Three Months Ended Nine Months Ended ($ in millions, except per share information) 9/30/16 9/30/15 9/30/16 9/30/15 Revenue $428.8 $410.6 $1,242.2 $1,196.7 Net Income Attributable to Comfort Systems USA, Inc. $20.5 $17.7 $48.0 $36.1 Diluted EPS Attributable to Comfort Sys
Slide 13: Revenue/Stock Price History
Revenue/Stock Price History $2,000 $30.00 $1,800 $25.00 $1,600 Revenue ($ in millions) $1,400 Stock Price at 12 / 31 $20.00 $1,200 $1,000 $15.00 ` $800 $10.00 $600 $400 $5.00 $200 $0 $- 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12
Slide 14: Historical Financial Summary
Historical Financial Summary ($ in millions, except per share information) Revenue Adjusted EPS (1) $1,800 $1.40 $1,500 $1.20 $1.00 $1,200 $0.80 $900 $0.60 $600 $0.40 $300 $0.20 $0 $0.00 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Operating Cash Flow Adjusted EBITDA (2) $120 $120 $100 $100 $80
Slide 15: Historical Financial Summary
Historical Financial Summary Operating Income % (1) 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2011 2012 2013 2014 2015 Adjusted EBITDA % (2) 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2011 2012 2013 2014 2015 (1) Operating income for 2011 excludes goodwill impairment of $57.4M. (2) Adjusted EBITDA is a n
Slide 16: Balance Sheet Strength
Balance Sheet Strength • $25.3M cash at September 30, 2016 • Positive free cash flow for 17 consecutive years • Debt capacity – $27.9M debt at 9/30/ 2016 – $325M revolving credit facility – 2021 maturity 15
Slide 17: Profile for Growth
Profile for Growth Service Earnings Time Commercial HVAC 16
Slide 18: Average Discretionary Spending
Average Discretionary Spending ($ in thousands) Average 2006 - 2015 $7,443 20% $21,184 $8,251 58% 22% Acquisitions Share Repurchases Dividends $45,000 $40,475 $40,000 $36,878 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $- Free Cash Flow Disc Spending 17
Slide 19: Our Strengths
Our Strengths • Industry leading skilled labor • Ability to share knowledge • Diverse portfolio • Strong balance sheet • Acquisition record • Positioned for growth 18
Slide 20: Thank You
Thank You 7,800+ Employees Over 7,800 of the most qualified HVAC and Mechanical systems personnel in the USA 91 Locations Operating 35 companies across America at 91 locations in 84 cities $1.6 Billion $1.6 billion in yearly revenue 19
Slide 21: Appendix
20 Appendix COMFORT SYSTEMS USA.
Slide 22: Appendix I – GAAP Reconciliation to Adjusted EBITDA
Appendix I – GAAP Reconciliation to Adjusted EBITDA Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2016 2015 2016 2015 Net Income Including Non-controlling Interests $20,471 $19,886 $48,029 $42,557 Income Taxes 11,803 9,613 27,052 22,202 Other (Income) Expense, net
Slide 23: Appendix II – GAAP Reconciliation to Adjusted EBITDA
Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical) Year Ended December 31, ($ in thousands) 2011 2012 2013 2014 2015 Net Income (Loss) Including Non-controlling ($36,492) $11,849 $28,556 $28,599 $57,440 Interests Discontinued Operations 4,018 (355) 76 15 - Income Taxes (5,463) 10,045
Slide 24: Appendix III – Supplemental Non-GAAP Information
Appendix III – Supplemental Non-GAAP Information (Historical) Year Ended December 31, 2011 2012 2013 2014 2015 Diluted income (loss) per share from continuing operations attributable to $(0.88) $0.35 $0.73 $0.61 $1.30 Comfort Systems USA, Inc. Goodwill Impairment 1.20 - - 0.01 - Changes in the fair
Slide 25: Contact
Contact Bill George Executive Vice President and CFO 1-800-723-8431 bill.george@comfortsystemsusa.com www.comfortsystemsusa.com 24
Comfort Systems USA — Investor Presentation (November 2016) on 6ix