Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (March 2019)
20 slides from Comfort Systems Usa's investor presentation, Mar 1, 2019
Slide 1: 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, as amended. The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,”
Slide 2: Comfort Systems USA
Comfort Systems USA 2 Leading mid-market HVAC and mechanical systems installation and service provider $2.2B yearly revenue 9,900+ employees 36 operating companies Balanced construction & service portfolio
Slide 3: National Footprint
National Footprint 3 36 companies 128 locations in 114 cities 9,900+ employees
Slide 4: Targeted Portfolio Strategy
Targeted Portfolio Strategy 4 FY 2017 FY 2018 New Construction Existing Building Construction Service Projects Service Calls, Maintenance & Monitoring Revenue = $2.18B Revenue = $1.79B 11.1% 18.2% 38.3% 32.4% 9.5% 16.0% 38.0% 36.5%
Slide 5: Market Sectors 2018 Revenue
Market Sectors 5 2018 Revenue Institutional Industrial Revenue = $2.18B
Slide 6: Diverse Project Mix
Diverse Project Mix 6 Average Project Size: $0.6 M Average Project Length: 6–9 months (Information as of December 31, 2018) 4,586 499 123 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 <$1M $1 – $5M >$5M Number of Projects
Slide 7: Book of Business
Book of Business 7 ($ in millions) $76 $75 $83 $89 $104 $111 $116 $123 $0 $25 $50 $75 $100 $125 $150 $175 $200 2011 2012 2013 2014 2015 2016 2017 2018 Service Maintenance Base $630 $618 $604 $758 $712 $763 $948 $1,166 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 2011 2012 2013 2014 2015 2016 2017 201
Slide 8: Recent Financial Performance
Recent Financial Performance 8 Three Months Ended Twelve Months Ended ($ in millions, except per share information) 12/31/18 12/31/17 12/31/18 12/31/17 Revenue $588.4 $461.1 $2,182.9 $1,787.9 Net Income $25.2 $7.5 $112.9 $55.3 Diluted EPS $0.67 $0.20 $3.00 $1.47 Adjusted EPS (1) $0.67 $0.45 $2.93 $1
Slide 9: Adjusted EPS/Stock Price History
Adjusted EPS/Stock Price History 9 Adjusted EPS at 12/31* Stock Price at 12/31 *Adjusted EPS is a non-GAAP financial measure. Adjusted EPS excludes goodwill impairments, tax valuation allowances and tax expense (benefit) for the corporate tax rate reduction and tax accounting method change. See Appe
Slide 10: Historical Financial Summary
Historical Financial Summary ($ in millions, except per share information) 10 (1) Adjusted EPS is a non-GAAP financial measure. Adjusted EPS excludes goodwill impairments, tax valuation allowances and tax expense (benefit) for the corporate tax rate reduction and tax accounting method change. See Ap
Slide 11: Balance Sheet Strength
Balance Sheet Strength $45.6M cash at December 31, 2018 Positive free cash flow for 20 consecutive years Debt capacity $76.9M debt at 12/31/18 $400M revolving credit facility 2023 maturity Debt/TTM EBITDA = 0.4 $31.3M net debt at December 31, 2018 11
Slide 12: Profile for Growth
Profile for Growth 12 Time Earnings Grow Service Innovate Acquire Service Commercial HVAC Grow Construction
Slide 13: Average Discretionary Spending
13 Average Discretionary Spending ($ in thousands) $33,385 64% $10,242 20% $8,304 16% Average 2006 - 2018 Acquisitions Share Repurchases Dividends $51,930 $51,952 $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 Free Cash Flow Disc Spending
Slide 14: Our Strengths
Our Strengths 14 Industry leading skilled labor Ability to share knowledge Diverse portfolio Strong balance sheet Acquisition record Positioned for growth
Slide 15: Thank You
Thank You 15 $2.2 Billion $2.2 billion in yearly revenue 128 Locations 36 operating companies across America at 128 locations in 114 cities 9,900+ of the most qualified HVAC and Mechanical systems personnel in America 9,900+ Employees Contact: Bill George Executive Vice President & CFO 1-800-723-843
Slide 16: Appendix I – GAAP Reconciliation to Adjusted EBITDA
Appendix I – GAAP Reconciliation to Adjusted EBITDA 16 Three Months Ended December 31, Twelve Months Ended December 31, ($ in thousands) 2018 2017 2018 2017 Net Income $25,156 $7,539 $112,903 $55,272 Provision for Income Taxes 9,307 18,478 35,773 45,666 Other Expense (Income), net (79) (992) (4,141)
Slide 17: Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical)
Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical) 17 Note: The Company defines adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) as net income including non-controlling interests, excluding discontinued operations, provision for income taxes,
Slide 18: Appendix III – GAAP Reconciliation to Adjusted EPS
Appendix III – GAAP Reconciliation to Adjusted EPS 18 Note 1: Diluted income per share excluding goodwill impairment and tax expense (benefit) for the corporate tax rate reduction and tax accounting method change are presented because the Company believes it reflects the results of the core ongoing
Slide 19: Appendix IV – GAAP Reconciliation to Adjusted EPS (Historical)
Appendix IV – GAAP Reconciliation to Adjusted EPS (Historical) 19 Note 1: Diluted income per share from continuing operations attributable to Comfort Systems USA, Inc., excluding goodwill impairment, tax valuation allowances, tax expense (benefit) for the corporate tax rate reduction and tax account
Slide 20: Appendix IV - GAAP Reconciliation to Adjusted EPS (Historical)
Appendix IV - GAAP Reconciliation to Adjusted EPS (Historical) Year Ended December 31, 203 | 2014 | 2015 | 206 | 2017 | 2018 Diluted income per share from continuing operations attributable to Comfort Systems USA, Ine. 073 | sosr | si30 | siz | grav | $3.00 Goodwillimpairment oot 0.02 : ‘Tax valuati
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