Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (August 2019)
21 slides from Comfort Systems Usa's investor presentation, Aug 12, 2019
Slide 1: Quality People. Building Solutions.
Quality People. Building Solutions. NYSE: FIX August 12, 2019
Slide 2: Safe Harbor
SAFE HARBOR Certain statements and information in this presentation may constitute forward - looking statements within the meaning of the Priv ate Securities Litigation Reform Act of 1995, as amended. The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee ,” “should,” “would,” “coul
Slide 3: Comfort Systems USA
Comfort Systems USA 2 • Leading mid - market HVAC and electrical contracting installation and service provider • $2.6B yearly revenue • 11,700+ employees • 36 operating companies • Balanced construction & service portfolio
Slide 4: National Footprint
National Footprint 3 36 companies | 135 locations in 115 cities | 11,700+ employees
Slide 5: 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 6: Lifecycle Product Portfolio
Lifecycle Product Portfolio 5 • 6+ million commercial buildings • Diverse revenue streams throughout lifecycle • 10 - 20 year replacement cycle • “Inventory” of future business • Recurring service • Continued benefit through maintenance & replacement
Slide 7: Revenue by Activity
Revenue by Activity 6 YTD 2019 Revenue = $1.19B New Construction Existing Building Construction Service Projects Service Calls, Maintenance & Monitoring FY 2018 Revenue = $2.18B 9.2% 15.3% 43.4% 32.1% 9.5% 16.0% 38.0% 36.5%
Slide 8: Market Sectors YTD June 2019 Revenue
Market Sectors 7 YTD June 2019 Revenue Health Care 15.1% Education 14.1% Government 6.5% Industrial 30.8% Office Building 14.4% Other 4.2% Retail / Restaurant / Entertainment 9.9% Multi - Family / Residential 5.0% Revenue = $1.19B
Slide 9: Diverse Project Mix
Diverse Project Mix 8 5,280 572 169 0 1,000 2,000 3,000 4,000 5,000 6,000 <$1M $1 – $5M >$5M Number of Projects Average Project Size: $0.7 M | Average Project Length: 6 – 9 months (Information as of June 30, 2019)
Slide 10: Book of Business
Book of Business 9 $75 $83 $89 $104 $111 $116 $123 $126 $0 $25 $50 $75 $100 $125 $150 $175 $200 2012 2013 2014 2015 2016 2017 2018 Q2 2019 Service Maintenance Base $618 $604 $758 $712 $763 $948 $1,166 $1,496 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 2012 2013 2014 2015 2016 2017 2018 Q2 201
Slide 11: Recent Financial Performance
Recent Financial Performance 10 Three Months Ended Six Months Ended ($ in millions, except per share information) 6/30/19 6/30/18 6/30/19 6/30/18 Revenue $650.3 $535.0 $1,188.8 $1,000.0 Net Income $24.2 $32.5 $44.0 $49.2 Diluted EPS $0.65 $0.87 $1.18 $1.31 Adjusted EBITDA (1) $49.8 $50.5 $88.3 $78.7
Slide 12: Adjusted EPS / Stock Price History
Adjusted EPS / Stock Price History 11 $- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 $50.00 $- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 2013 2014 2015 2016 2017 2018 Adjusted EPS at 12/31* Stock Price at 12/31 ` Adjusted EPS at 12/31* Stock Price at 1 2/ 31 *Adjusted EPS is a non
Slide 13: Historical Financial Summary
Historical Financial Summary ($ in millions, except per share information) 12 ( 1) Adjusted EPS is a non - GAAP financial measure. Adjusted EPS excludes goodwill impairments, tax valuation allowances and tax expe nse (benefit) for the corporate tax rate reduction and tax accounting method change. Se
Slide 14: Focus on Cash Flow
Focus on Cash Flow • Positive free cash flow for 20 consecutive years • Increased dividend for 6 consecutive years • Debt/TTM EBITDA = 1.46 • $36.8M cash at June 30, 2019 • $258.2M net debt at June 30, 2019 • Debt capacity – $295.0M debt at 6/30/19 – $400M revolving credit facility – 2023 maturity 1
Slide 15: Profile for Growth
Profile for Growth 14 Time Earnings Service Commercial HVAC
Slide 16: Average Discretionary Spending
15 Average Discretionary Spending ($ 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 17: Our Strengths
Our Strengths 16 • Industry leading skilled labor • Ability to share knowledge • Diverse portfolio • Strong balance sheet • Acquisition record • Positioned for growth
Slide 18: Thank You
Thank You 17 135 Locations 36 operating companies across America at 135 locations in 115 cities 11,700+ of the most qualified HVAC and electrical contracting personnel in America 11,700+ Employees $2.6 Billion $2.6 billion in yearly revenue Contact: Bill George Executive Vice President & CFO 1 - 800
Slide 19: Appendix I – GAAP Reconciliation to Adjusted EBITDA
Appendix I – GAAP Reconciliation to Adjusted EBITDA 18 Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2019 2018 2019 2018 Net Income $24,173 $32,547 $44,039 $49,206 Provision for Income Taxes 6,933 10,797 13,866 12,871 Other (Income) Expense, net (149) (3,985) (164) (4,023) C
Slide 20: Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical)
Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical) 19 Note: The Company defines adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) as net in come including non - controlling interests, excluding discontinued operations, provision for income tax
Slide 21: Appendix III – GAAP Reconciliation to Adjusted EPS (Historical)
Appendix III – GAAP Reconciliation to Adjusted EPS (Historical) 20 Note 1: Diluted income per share from continuing operations attributable to Comfort Systems USA, Inc., excluding goodwill im pai rment, tax valuation allowances, tax expense (benefit) for the corporate tax rate reduction and tax acco
Comfort Systems USA — Investor Presentation (August 2019) on 6ix