Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (August 2016)
25 slides from Comfort Systems Usa's investor presentation, Aug 5, 2016
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. The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” or other sim
Slide 2: Comfort Systems USA
Comfort Systems USA 2 Leading mid-market HVAC and mechanical systems installation and service provider $1.6B Yearly revenues 7,800+ Employees 35 Operating companies Balanced construction & service portfolio
Slide 3: National Footprint
National Footprint 3 35 companies 91 locations in 84 cities 7,800+ employees
Slide 4: Our Markets
Our Markets 4 Light Commercial Commercial Residential Light Industrial Industrial Heavy Industrial Heavy Commercial Every Building You See Needs What We Do
Slide 5: Targeted Portfolio Strategy
Targeted Portfolio Strategy 5 Light commercial to heavy commercial Continue to grow construction Leverage existing construction capabilities into retrofit market Access to new customers through service Data and manufacturing Revenue by Activity
Slide 6: Market Sectors
Market Sectors 6 June 2016 YTD Revenue Institutional Industrial
Slide 7: Diverse Project Mix
Diverse Project Mix 7 Average Project Size: $0.5M Average Project Length: 6–9 months (Information as of June 30, 2016) Aggregate Contract Value Jobs <$1M (Value: $436M) Jobs $1M–$5M (Value: $730M) Jobs >$5M (Value: $882M) 4,001 327 87 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 <$1M $1 – $
Slide 8: Lifecycle Product Portfolio
Lifecycle Product Portfolio 8 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
Slide 9: Why We Win
Why We Win 9 Be Here When I Need You Advantaged Value Position Make It Really Easy To Do Business With You Always Handle My Problems The First Time Leverage our scale and national footprint Technology investments Customer loyalty program Investment in service technology Real time GPS National traini
Slide 10: Book of Business
Book of Business 10 ($ in millions) $72 $76 $75 $83 $89 $104 $110 $0 $100 $200 $300 $400 $500 2010 2011 2012 2013 2014 2015 Q2 2016 Service Maintenance Base $598 $630 $618 $604 $758 $712 $724 $0 $200 $400 $600 $800 $1,000 2010 2011 2012 2013 2014 2015 Q2 2016 Construction Backlog
Slide 11: Recent Financial Performance
Recent Financial Performance 11 Three Months Ended Six Months Ended ($ in millions, except per share information) 6/30/16 6/30/15 6/30/16 6/30/15 Revenue $427.5 $416.6 $813.5 $786.1 Net Income from Continuing Operations Attributable to Comfort Systems USA, Inc. $17.7 $13.4 $27.6 $18.5 Diluted EPS fr
Slide 12: Revenue/Stock Price History
Revenue/Stock Price History 12 Revenue ($ in millions) Stock Price at 12/31 $- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 `
Slide 13: Historical Financial Summary
Historical Financial Summary ($ in millions, except per share information) 13 (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 III for a GAAP reconcili
Slide 14: Historical Financial Summary
Historical Financial Summary 14 (1) Operating income for 2011 excludes goodwill impairment of $57.4M. (2) Adjusted EBITDA is a non-GAAP financial measure. See Appendix II for a GAAP reconciliation to Adjusted EBITDA. 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 2008 2009 2010 2011 2012 2013 2014 201
Slide 15: Balance Sheet Strength
Balance Sheet Strength $38.3M cash at June 30, 2016 Positive free cash flow for 17 consecutive years Debt capacity $39.5M debt at 6/30/2016 $325M revolving credit facility 2021 maturity 15
Slide 16: Profile for Growth
Profile for Growth 16 Time Earnings Grow Service Innovate Acquire Service Commercial HVAC Grow Construction
Slide 17: Average Discretionary Spending
17 Average Discretionary Spending ($ in thousands) $21,184 58% $8,251 22% $7,443 20% Average 2006 - 2015 Acquisitions Share Repurchases Dividends $36,878 $40,475 $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 Free Cash Flow Disc Spending
Slide 18: Our Strengths
Our Strengths 18 Industry leading skilled labor Ability to share knowledge Diverse portfolio Strong balance sheet Acquisition record Positioned for growth
Slide 19: Thank You
Thank You 19 $1.6 Billion $1.6 billion in yearly revenues 91 Locations Operating 35 companies across America at 91 locations in 84 cities Over 7,800 of the most qualified HVAC and Mechanical systems personnel in the USA 7,800+ Employees
Slide 20: Thank You
Thank You 91 Locations $1.6 Bill $1.6 bilion in yearly revenues » Systems UDA
Slide 21: Appendix I – GAAP Reconciliation to Adjusted EBITDA
Appendix I – GAAP Reconciliation to Adjusted EBITDA 21 Note: The Company defines adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) as net income (loss) including non-controlling interests, excluding discontinued operations, income taxes, other (income) expen
Slide 22: Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical)
Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical) 22 Note: The Company defines adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) as net income (loss) including non-controlling interests, excluding discontinued operations, income taxes, other
Slide 23: Appendix III – Supplemental Non-GAAP Information (Historical)
Appendix III – Supplemental Non-GAAP Information (Historical) 23 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, tax valuation allowances and out of period adj
Slide 24: Contact
Contact Bill George Executive Vice President and CFO 1-800-723-8431 bill.george@comfortsystemsusa.com www.comfortsystemsusa.com 24
Slide 25: Contact
Contact Bill George Executive Vice President and CFO 1-800-723-8431 bill.george@comfortsystemsusa.com www.comfortsystemsusa.com 7 SOMESZUSA
Comfort Systems USA — Investor Presentation (August 2016) on 6ix