Comfort Systems Usa, Inc. · NYSE:FIX

Comfort Systems Usa — Investor Presentation (November 2015)

23 slides from Comfort Systems Usa's investor presentation, Nov 4, 2015

  1. 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

  2. Slide 2: Comfort Systems USA

    Comfort Systems USA 2 Leading mid-market HVAC and mechanical systems installation and service provider $1.4B Yearly revenues 7,000+ Employees 35 Operating companies Balanced construction & service portfolio

  3. Slide 3: Broad Nationwide Footprint

    Broad Nationwide Footprint 3 35 companies 88 locations in 83 cities 7,000+ employees

  4. Slide 4: Our Markets

    Our Markets 4 Light Commercial Commercial Residential Light Industrial Industrial Heavy Industrial Heavy Commercial

  5. 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

  6. Slide 6: Market Sectors

    Market Sectors 6 September 2015 YTD Revenue Institutional Industrial

  7. Slide 7: Diverse Project Mix

    Diverse Project Mix 7 Average Project Size: $0.5M Average Project Length: 6–9 months (Information as of September 30, 2015) Aggregate Contract Value Jobs <$1M (Value: $439M) Jobs $1M–$5M (Value: $717M) Jobs >$5M (Value: $999M) 4,037 316 102 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 <$1M

  8. 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

  9. 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

  10. Slide 10: Book of Business

    Book of Business 10 ($ in millions) $63 $72 $76 $75 $83 $89 $101 $0 $100 $200 $300 $400 $500 2009 2010 2011 2012 2013 2014 Q3 2015 Service Maintenance Base $508 $598 $630 $618 $604 $758 $666 $0 $200 $400 $600 $800 $1,000 2009 2010 2011 2012 2013 2014 Q3 2015 Construction Backlog

  11. Slide 11: Recent Financial Performance

    Recent Financial Performance 11 Three Months Ended Nine Months Ended ($ in millions, except per share information) 9/30/15 9/30/14 9/30/15 9/30/14 Revenue $410.6 $370.1 $1,196.7 $1,054.3 Net Income from Continuing Operations Attributable to Comfort Systems USA, Inc. $17.7 $7.6 $36.1 $12.4 Diluted EP

  12. Slide 12: Revenue/Stock Price History

    Revenue/Stock Price History 12 Revenue ($ in millions) Acquisition Phase and Industry Growth Sale of Assets New Acquisitions 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 1997 1998 1999 2000 2001 2002 2003 2004 2005

  13. 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 IV for a GAAP reconcilia

  14. 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 III 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% 2007 2008 2009 2010 2011 2012 2013 20

  15. Slide 15: Balance Sheet Strength

    Balance Sheet Strength $45.1M cash at September 30, 2015 Positive free cash flow for 16 consecutive years Debt capacity $10M debt at 9/30/2015 $250M revolving credit facility 2019 maturity 15

  16. Slide 16: Profile for Growth

    Profile for Growth 16 Time Earnings Grow Service Innovate Acquire Service Commercial HVAC Grow Construction

  17. Slide 17: Our Strengths

    Our Strengths 17 Long-term local relationships Collaboration Safety excellence Purchasing economics National service capability Bonding and insurance Balance sheet strength

  18. Slide 18: Thank You

    Thank You 18 $1.4 Billion $1.4 billion in yearly revenues 88 Locations Operating 35 companies across America at 88 locations in 83 cities Over 7,000 of the most qualified HVAC and Mechanical systems personnel in the USA 7,000+ Employees

  19. Slide 19: Thank You

    Thank You 88 Locations is $1.4 Bill $1.4 billion in yearly revenues svarems USA.

  20. Slide 20: Appendix I – GAAP Reconciliation to Adjusted EBITDA

    Appendix I – GAAP Reconciliation to Adjusted EBITDA 20 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

  21. Slide 21: Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical)

    Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical) 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

  22. Slide 22: Appendix III – Supplemental Non-GAAP Information (Historical)

    Appendix III – Supplemental Non-GAAP Information (Historical) 22 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

  23. Slide 23: Contact

    Contact Bill George Executive Vice President and CFO 1-800-723-8431 bill.george@comfortsystemsusa.com www.comfortsystemsusa.com SoMFoRzUSA

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