Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (May 2019)
21 slides from Comfort Systems Usa's investor presentation, May 1, 2019
Slide 1: Quality People. Building Solutions.
Quality People. Building Solutions. NYSE: FIX May 1, 2019
Slide 2: Safe Harbor / Non-GAAP Measures
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, as amended. The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,”
Slide 3: Comfort Systems USA
Comfort Systems USA • Leading mid-market HVAC and electrical contracting installation and service provider • $2.2B yearly revenue • 9,900+ employees • 36 operating companies • Balanced construction & service portfolio 2
Slide 4: National Footprint
National Footprint 36 companies | 132 locations in 115 cities | 9,900+ employees 3
Slide 5: Our Markets
Our Markets Every Building You See … Light Heavy Light Heavy Residential Commercial Industrial Commercial Commercial Industrial Industrial … Needs What We Do 4
Slide 6: Lifecycle Product Portfolio
Lifecycle Product Portfolio • 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 5
Slide 7: Revenue by Activity
Revenue by Activity YTD 2019 FY 2018 Revenue = $538.5M Revenue = $2.18B 9.4% 9.5% 33.8% 15.2% 36.5% 16.0% 41.6% 38.0% New Construction Existing Building Construction Service Projects Service Calls, Maintenance & Monitoring 6
Slide 8: Market Sectors
Market Sectors Multi-Family / Residential 5.6% Retail / Restaurant / Health Care Entertainment 17.1% 11.0% Other 4.3% Education Office Building 12.4% 12.3% Government 6.0% Industrial 31.3% YTD March 2019 Revenue Revenue = $538.5M 7
Slide 9: Diverse Project Mix
Diverse Project Mix Number of Projects 5,000 4,511 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 484 117 0 <$1M $1–$5M >$5M Average Project Size: $0.6 M | Average Project Length: 6 – 9 months (Information as of March 31, 2019) 8
Slide 10: Book of Business
Book of Business ($ in millions) Construction Backlog $1,400 $1,200 $1,000 $800 $600 $400 $200 $618 $604 $758 $712 $763 $948 $1,166 $1,143 $0 2012 2013 2014 2015 2016 2017 2018 Q1 2019 Service Maintenance Base $200 $175 $150 $125 $100 $75 $50 $25 $75 $83 $89 $104 $111 $116 $123 $123 $0 2012 2013 201
Slide 11: Recent Financial Performance
Recent Financial Performance Three Months Ended ($ in millions, except per share information) 3/31/19 3/31/18 Revenue $538.5 $464.9 Net Income $19.9 $16.7 Diluted EPS $0.53 $0.44 Adjusted EBITDA (1) $38.5 $28.3 Operating Cash Flow $1.0 $3.9 (1) Adjusted EBITDA is a non-GAAP financial measure. See Ap
Slide 12: Adjusted EPS/Stock Price History
Adjusted EPS/Stock Price History $3.50 $50.00 $45.00 $3.00 $40.00 $2.50 $35.00 Stock Price at 12 / 31 Adjusted EPS at 12/31* $30.00 $2.00 $25.00 ` $1.50 $20.00 $1.00 $15.00 $10.00 $0.50 $5.00 $- $- 2013 2014 2015 2016 2017 2018 Adjusted EPS at 12/31* Stock Price at 12/31 *Adjusted EPS is a non-GAAP
Slide 13: Historical Financial Summary
Historical Financial Summary ($ in millions, except per share information) Revenue Adjusted EPS (1) CAGR = 9.97% CAGR = 33.15% $2,400 $3.20 $2,100 $2.80 $1,800 $2.40 $1,500 $2.00 $1,200 $1.60 $900 $1.20 $600 $0.80 $300 $0.40 $0 $0.00 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 Operat
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 = 0.4 • $29.1M cash at March 31, 2019 • $48.1M net debt at March 31, 2019 • Debt capacity – $77.2M debt at 3/31/19 – $400M revolving credit facility – 2023 maturity 13
Slide 15: Profile for Growth
Profile for Growth Service Earnings Time Commercial HVAC 14
Slide 16: Average Discretionary Spending
Average Discretionary Spending ($ in thousands) Average 2006 - 2018 $8,304 16% $10,242 20% $33,385 64% Acquisitions Share Repurchases Dividends $60,000 $51,952 $51,930 $50,000 $40,000 $30,000 $20,000 $10,000 $- Free Cash Flow Disc Spending 15
Slide 17: Our Strengths
Our Strengths • Industry leading skilled labor • Ability to share knowledge • Diverse portfolio • Strong balance sheet • Acquisition record • Positioned for growth 16
Slide 18: Thank You
Thank You 9,900+ Employees 9,900+ of the most qualified HVAC and electrical contracting personnel in America 132 Locations $2.2 Billion 36 operating companies across America at $2.2 billion in yearly revenue 132 locations in 115 cities Contact: Bill George Executive Vice President & CFO 1-800-723-84
Slide 19: Appendix I – GAAP Reconciliation to Adjusted EBITDA
Appendix I – GAAP Reconciliation to Adjusted EBITDA Three Months Ended March 31, ($ in thousands) 2019 2018 Net Income $19,866 $16,659 Provision for Income Taxes 6,933 2,074 Other Expense (Income), net (15) (38) Changes in the Fair Value of Contingent Earn-out Obligations 158 (153) Interest Expense,
Slide 20: Appendix II – GAAP Reconciliation to Adjusted EBITDA
Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical) Year Ended December 31, ($ in thousands) 2013 2014 2015 2016 2017 2018 Net Income Including Non-controlling $28,556 $28,599 $57,440 $64,896 $55,272 $112,903 Interests Discontinued Operations 76 15 - - - - Provision for Income Taxes 18
Slide 21: Appendix III – GAAP Reconciliation to Adjusted EPS
Appendix III – GAAP Reconciliation to Adjusted EPS (Historical) Year Ended December 31, 2013 2014 2015 2016 2017 2018 Diluted income per share from continuing operations attributable to $0.73 $0.61 $1.30 $1.72 $1.47 $3.00 Comfort Systems USA, Inc. Goodwill impairment - 0.01 - - 0.02 - Tax valuation
Comfort Systems USA — Investor Presentation (May 2019) on 6ix