Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (August 2015)
24 slides from Comfort Systems Usa's investor presentation, Aug 20, 2015
Slide 1: Comfort Systems USA
Comfort Systems USA Quality People. Building Solutions. August 20, 2015
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 • $1.4B Yearly revenues • 7,000+ Employees • 36 Operating companies • Balanced construction & service portfolio 2
Slide 4: Broad Nationwide Footprint
Broad Nationwide Footprint 36 companies | 90 locations in 85 cities | 7,000+ employees 3
Slide 5: 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 $- 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Acquisition Phase Sale of Asset
Slide 6: Lifecycle Product Portfolio
Lifecycle Product Portfolio • 5+ million nonresidential buildings • Building solutions a necessity • Diverse revenue streams throughout lifecycle • 10 - 20 year replacement cycle • Recurring service • Increasing technical content • Essential to energy efficiency 5
Slide 7: Service markets we participate in
Service markets we participate in Light Heavy Light Heavy Residential Commercial Industrial Commercial Commercial Industrial Industrial 6
Slide 8: Why We Win
Why We Win Be Here Investment in service technology When I Need Real time GPS You Always Handle National training program My Problems Better positioned to attract labor The First Time Advantaged Leverage our scale and national Value footprint Position Make It Really Technology investments Easy To Do
Slide 9: Targeted Portfolio Strategy
Targeted Portfolio Strategy Revenue by Activity • Light commercial to heavy 100% 90% 13% 17% commercial 80% 70% 30% • Continue to grow 35% 60% 50% construction 40% 30% • Leverage existing 57% 20% 48% construction capabilities 10% 0% into retrofit market 2008 2015 YTD Service & Maintenance • Access t
Slide 10: Market Sectors
Market Sectors Multi-Family / Residential 5% Health Care Retail / 11% Restaurant / Other Entertainment Education 4% 12% 14% Office Building 11% Government 11% Industrial / Distribution 32% June 2015 YTD Revenue 9
Slide 11: Book of Business
Book of Business ($ in millions) Construction Backlog $1,000 $800 $600 $400 $200 $508 $598 $630 $618 $604 $758 $712 $0 2009 2010 2011 2012 2013 2014 Q2 2015 Service Maintenance Base $500 $400 $300 $200 $100 $63 $72 $76 $75 $83 $89 $98 $0 2009 2010 2011 2012 2013 2014 Q2 2015 10
Slide 12: Diverse Project Mix
Diverse Project Mix Number of Projects Aggregate Contract Value 4,000 3,798 3,500 3,000 20% 2,500 34% 2,000 1,500 1,000 46% 500 312 98 0 <$1M $1–$5M >$5M Jobs <$1M (Value: $423M) Jobs $1M – $5M (Value: $699M) Jobs >$5M (Value: $967M) Average Project Size: $0.5M | Average Project Length: 6 – 9 months
Slide 13: Historical Financial Summary
Historical Financial Summary ($ in millions, except per share information) Revenue Adjusted EPS (1) $1,600 $1.00 $1,400 $0.80 $1,200 $1,000 $0.60 $800 $600 $0.40 $400 $0.20 $200 $0 $0.00 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 Operating Cash Flow Adjusted EBITDA (2) $60 $70 $50 $
Slide 14: Historical Financial Summary
Historical Financial Summary Operating Income % (1) 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2007 2008 2009 2010 2011 2012 2013 2014 Adjusted EBITDA % (2) 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2007 2008 2009 2010 2011 2012 2013 2014 (1) Operating income for 2011 excludes goodwill impairment of
Slide 15: Balance Sheet Strength
Balance Sheet Strength • $40.7M cash at June 30, 2015 • Positive free cash flow for 16 consecutive years • Debt capacity – $18M debt at 6/30/ 2015 – $250M revolving credit facility – 2019 maturity 14
Slide 16: Earnings Profile for Growth
Profile for Growth Service Earnings Time Commercial HVAC 15
Slide 17: Our Strengths
Our Strengths • Long-term local relationships • Collaboration • Safety excellence • Purchasing economics • National service capability • Bonding and insurance • Balance sheet strength 16
Slide 18: Thank You
Thank You 7,000+ Employees Over 7,000 of the most qualified HVAC and Mechanical systems personnel in the USA 90 Locations Operating 36 companies across America at 90 locations in 85 cities $1.4 Billion $1.4 billion in yearly revenues 17
Slide 19: Appendix
Appendix COMFORT LGA
Slide 20: Appendix I – QTD & YTD Financial Performance
Appendix I – QTD & YTD Financial Performance Three Months Ended Six Months Ended ($ in millions, except per share information) 6/30/15 6/30/14 6/30/15 6/30/14 Revenue $416.6 $362.8 $786.1 $684.2 Net Income from Continuing Operations Attributable to Comfort Systems $13.4 $4.4 $18.5 $4.8 USA, Inc. Dil
Slide 21: Appendix II – GAAP Reconciliation to Adjusted EBITDA
Appendix II – GAAP Reconciliation to Adjusted EBITDA Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2015 2014 2015 2014 Net Income Including Non-controlling Interests $15,782 $6,336 $22,671 $7,399 Discontinued Operations - - - 15 Income Taxes 8,796 3,746 12,589 4,438 Other (I
Slide 22: Appendix III – GAAP Reconciliation to Adjusted EBITDA
Appendix III – GAAP Reconciliation to Adjusted EBITDA (Historical) Year Ended December 31, ($ in thousands) 2008 2009 2010 2011 2012 2013 2014 Net Income (Loss) Including Non- $49,690 $34,182 $14,740 ($36,492) $11,849 $28,556 $28,599 controlling Interests Discontinued Operations 107 (1,282) 5,824 4,
Slide 23: Appendix IV – Supplemental Non-GAAP Information
Appendix IV – Supplemental Non-GAAP Information (Historical) Year Ended December 31, 2008 2009 2010 2011 2012 2013 2014 Diluted income (loss) per share from continuing operations $1.24 $0.86 $0.54 $(0.88) $0.35 $0.73 $0.61 attributable to Comfort Systems USA, Inc. Goodwill Impairment - - - 1.20 - -
Slide 24: Contact
Contact Bill George Executive Vice President and CFO 1-800-723-8431 bill.george@comfortsystemsusa.com www.comfortsystemsusa.com 23
Comfort Systems USA — Investor Presentation (August 2015) on 6ix