Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (March 2014)
29 slides from Comfort Systems Usa's investor presentation, Mar 10, 2014
Slide 1: Comfort Systems USA
Comfort Systems USA (NYSE: FIX) March 10, 2014
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 | 88 locations in 79 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 46% below the industry average 6 4 2 0 1998 2000 2002 2004 2006 2008 2010 2012 Comfort Systems USA (December 2013 data) Industry Average (December 2012 –
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 2013 Acquisition Phase Sale of Assets New
Slide 10: Revenue by Activity
Revenue by Activity 2008 2013 13% 17% 42% 57% 30% 41% New Construction / Installation Replacement Service & Maintenance 10
Slide 11: Revenue by Sector
Revenue by Sector 2013 Revenue 6% 3% Education 19% 11% Healthcare Government Manufacturing / Distribution 10% 14% Office Buildings Retail / Restaurants / Entertainment Multi-Family / Residential 12% Other 25% 11
Slide 12: Diverse Project Mix
Diverse Project Mix Number of Projects Aggregate Contract Value 3,500 2,959 3,000 2,500 18% 2,000 45% 1,500 1,000 37% 500 282 80 0 <$1M $1–$5M >$5M Jobs <$1M (Value: $317M) Jobs $1M – $5M (Value: $659M) Jobs >$5M (Value: $811M) Average Project Size: $538,000 | Average Project Length: 6–9 months (Inf
Slide 13: Book of Business
Book of Business ($ in millions) Construction Backlog $1,000 $800 $600 $400 $200 $508 $598 $630 $618 $604 $0 4Q 2009 4Q 2010 4Q 2011 4Q 2012 4Q 2013 Service Maintenance Base $200 $150 $100 $50 $63 $72 $76 $75 $83 $0 4Q 2009 4Q 2010 4Q 2011 4Q 2012 4Q 2013 13
Slide 14: Historical Financial Summary
Historical Financial Summary ($ in millions, except per share information) Revenue Adjusted EPS (1) $1,500 $1.00 $0.80 $1,000 $0.60 $0.40 $500 $0.20 $0 $0.00 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Operating Cash Flow Adjusted EBITDA (2) $60 $70 $50 $60 $40 $50 $40 $30 $30 $20 $20 $10 $10
Slide 15: Historical Financial Summary
Historical Financial Summary Operating Income % 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% (1) 2007 2008 2009 2010 2011 2012 2013 Adjusted EBITDA % (2) 8.0% 6.0% 4.0% 2.0% 0.0% 2007 2008 2009 2010 2011 2012 2013 (1) Operating income for 2011 excludes goodwill impairment of $57.4M. (2) Adjusted EBITDA i
Slide 16: QTD Financial Performance
QTD Financial Performance Three Months Ended ($ in millions, except per share information) 12/31/13 12/31/12 Revenue $ 330.3 $ 315.9 Net Income from Continuing Operations Attributable to Comfort Systems USA, Inc. $ 5.6 $ 3.8 Diluted EPS from Continuing Operations Attributable to Comfort Systems USA,
Slide 17: YTD Financial Performance
YTD Financial Performance Twelve Months Ended ($ in millions, except per share information) 12/31/13 12/31/12 Revenue $ 1,357.3 $ 1,331.2 Net Income from Continuing Operations Attributable to Comfort Systems USA, Inc. $ 27.3 $ 13.1 Diluted EPS from Continuing Operations Attributable to Comfort Syste
Slide 18: Key Financial Statistics
Key Financial Statistics As of ($ in millions) 12/31/13 12/31/12 Cash $ 52.1 $ 40.8 Working Capital $ 127.6 $ 104.0 Goodwill and Intangible Assets $ 152.0 $ 159.1 Total Debt $ 2.0 $ 7.4 Equity $ 314.0 $ 287.3 18
Slide 19: Balance Sheet Strength
Balance Sheet Strength • $52.1M cash at December 31, 2013 • Positive free cash flow for 15 consecutive years • Debt capacity o $2M debt at 12/31/ 2013 o $175M revolving credit facility o 2018 maturity 19
Slide 20: Earnings Profile for Growth
Profile for Growth Service Earnings Time Commercial HVAC 20
Slide 21: Industry Environment: McGraw Hill Construction
Industry Environment: McGraw Hill Construction Comfort Systems USA in the Next Cycle Total Nonresidential Construction Starts Billions of Current Dollars History Forecast • Expanding service 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 • Growing markets • Investing in our workforce Nonresidenti
Slide 22: Appendices
systems) AQ. Appendices
Slide 23: Appendix I — Income Statement (QTD)
Appendix I —Income Statement (QTD) ($ in thousands, except per share information) Three Months Ended December 31, 2013 2012 Revenue $ 330,340 100.0% $ 315,870 100.0% Cost of Services 268,912 81.4% 260,797 82.6% Gross Profit 61,428 18.6% 55,073 17.4% Selling, General and Administrative Expenses 52,59
Slide 24: Appendix II — Income Statement (YTD)
Appendix II —Income Statement (YTD) ($ in thousands, except per share information) Twelve Months Ended December 31, 2013 2012 Revenue $ 1,357,272 100.0% $ 1,331,185 100.0% Cost of Services 1,117,389 82.3% 1,123,564 84.4% Gross Profit 239,883 17.7% 207,621 15.6% Selling, General and Administrative Ex
Slide 25: Appendix III—GAAP Reconciliation to Adjusted EBITDA
Appendix III—GAAP Reconciliation to Adjusted EBITDA ($ in thousands) Three Months Ended December 31, Twelve Months Ended December 31, 2013 2012 2013 2012 Net Income Including Noncontrolling Interests $ 5,935 $ 5,145 $ 28,556 $ 11,849 Discontinued Operations (3) (592) 76 (355) Income Taxes 3,782 4,01
Slide 26: Appendix IV—GAAP Reconciliation to Adjusted EBITDA (Historical)
Appendix IV—GAAP Reconciliation to Adjusted EBITDA (Historical) ($ in thousands) Year Ended December 31, 2007 2008 2009 2010 2011 2012 2013 Net Income (Loss) Including $ 32,466 $ 49,690 $ 34,182 $ 14,740 ($36,492) $11,849 $28,556 Noncontrolling Interests Discontinued Operations (266) 107 (1,282) 5,8
Slide 27: Appendix V—Supplemental Non-GAAP Information (Historical)
Appendix V—Supplemental Non -GAAP Information (Historical) ($ in thousands) 2008 2009 2010 2011 2012 2013 Net income (loss) from continuing operations attributable to Comfort Systems USA, Inc. $ 49,797 $ 32,900 $ 20,564 ($32,812) $13,108 $27,345 Goodwill impairment (after tax) - - - 44,805 - - Chang
Slide 28: Appendix VI—GAAP Reconciliation to Adjusted EPS (Historical)
Appendix VI—GAAP Reconciliation to Adjusted EPS (Historical) Year Ended December 31, 2008 2009 2010 2011 2012 2013 Diluted income (loss) per share from continuing operations attributable to Comfort Systems USA, Inc. $ 1.24 $ 0.86 $ 0.54 $ (0.88) $ 0.35 $ 0.73 Goodwill impairment - - - 1.20 - - Chang
Slide 29: Contact
Contact Bill George Executive Vice President and CFO 1-800-723-8431 bill.george@comfortsystemsusa.com www.comfortsystemsusa.com 29
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