Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (August 2012)
28 slides from Comfort Systems Usa's investor presentation, Aug 15, 2012
Slide 1: Comfort Systems USA
Comfort Systems USA (NYSE: FIX) August 15, 2012
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 37 companies | 87 locations in 72 cities | 7,000+ 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: Our Safety Record is No Accident
Our Safety Record is No Accident 14 Lost Time Injury Rate 12 75% below the industry average OSHA Recordable Incident Rate, % 20% Difference 10 OSHA Incident Rate 8 27% below the industry average 6 27% Difference 4 2 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Industr
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 Acquisition Phase Sale of Assets New Acquisiti
Slide 10: Revenue by Activity
Revenue by Activity 2008 YTD 2012 13% 15% 49% 57% 30% 36% New Construction / Installation Replacement Service & Maintenance 10
Slide 11: Revenue by Sector
Revenue by Sector June 2012 Year-to-Date Revenue 5% 3% Education 21% 9% Healthcare Government 9% Manufacturing / Distribution Office Buildings 13% Retail / Restaurants / Entertainment Multi-Family / Residential 26% Other 14% 11
Slide 12: Diverse Project Mix
Diverse Project Mix Number of Projects Aggregate Contract Value 5,000 4,278 4,000 18% 3,000 47% 2,000 35% 1,000 286 85 0 <$1M $1–$5M >$5M Jobs <$1M (Value: $353M) Jobs $1M – $5M (Value: $683M) Jobs >$5M (Value: $926M) Average Project Size: $422,000 | Average Project Length: 6–9 months (Information a
Slide 13: Book of Business
Book of Business ($ in millions) Construction Backlog $1,000 $800 $600 $400 $200 $780 $640 $507 $621 $618 $0 2Q 2008 2Q 2009 2Q 2010 2Q 2011 2Q 2012 Service Maintenance Base $200 $150 $100 $50 $61 $63 $62 $74 $76 $0 2Q 2008 2Q 2009 2Q 2010 2Q 2011 2Q 2012 13
Slide 14: Historical Financial Summary
Historical Financial Summary ($ in millions, except per share information) Revenue Adjusted EPS (1) $1,400 $1.40 $1,200 $1.20 $1,000 $1.00 $800 $0.80 $600 $0.60 $400 $0.40 $200 $0.20 $0 $0.00 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Operating Cash Flow Adjusted EBITDA (2) $100 $100 $80 $80
Slide 15: QTD Financial Performance
QTD Financial Performance Three Months Ended ($ in millions, except per share information) 6/30/12 6/30/11 Revenue $ 354.8 $ 312.1 Net Income $ 4.5 $ 3.2 Diluted EPS $ 0.12 $ 0.08 Adjusted EBITDA (1) $ 12.4 $ 10.3 Operating Cash Flow $ 6.8 $ (4.4) (1)Adjusted EBITDA is a non-GAAP financial measure.
Slide 16: YTD Financial Performance
YTD Financial Performance Six Months Ended ($ in millions, except per share information) 6/30/12 6/30/11 Revenue $ 684.2 $ 594.2 Net Income $ 3.4 $ (2.0) Diluted EPS $ 0.09 $ (0.05) Adjusted EBITDA (1) $ 14.0 $ 6.7 Operating Cash Flow $ (13.0) $ (23.4) (1)Adjusted EBITDA is a non-GAAP financial meas
Slide 17: Key Financial Statistics
Key Financial Statistics As of ($ in millions) 6/30/12 12/31/11 Cash $ 28.8 $ 51.2 Working Capital $ 114.4 $ 109.3 Goodwill and Intangible Assets $ 163.8 $ 155.4 Total Debt $ 29.3 $ 15.4 Equity $ 280.8 $ 283.1 17
Slide 18: Balance Sheet Strength
Balance Sheet Strength • $29M cash at June 30, 2012 • Positive free cash flow for 13 consecutive years • Debt capacity o $29M debt at 6/30/ 2012 o $125M revolving credit facility o 2016 maturity 18
Slide 19: Profile for Growth
Profile for Growth Service Earnings Time Commercial HVAC 19
Slide 20: Industry Environment: McGraw Hill Construction
Industry Environment: McGraw Hill Construction Comfort Systems USA in the Next Cycle Total Nonresidential Construction Starts Billions of Current Dollars History Forecast • Expanding service 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 • Growing markets • Investing in our workforce Nonresidenti
Slide 21: Appendices
systems) A. Quality People. Building Solutions. Appendices
Slide 22: Appendix I—Income Statement (QTD)
Appendix I —Income Statement (QTD) ($ in thousands, except per share information) Three Months Ended June 30, 2012 2011 Revenue $ 354,750 100.0% $ 312,148 100.0% Cost of Services 300,238 84.6% 264,638 84.8% Gross Profit 54,512 15.4% 47,510 15.2% Selling, General and Administrative Expenses 47,090 13
Slide 23: Appendix II—Income Statement (YTD)
Appendix II —Income Statement (YTD) ($ in thousands, except per share information) Six Months Ended June 30, 2012 2011 Revenue $ 684,160 100.0% $ 594,207 100.0% Cost of Services 586,904 85.8% 512,488 86.2% Gross Profit 97,256 14.2% 81,719 13.8% Selling, General and Administrative Expenses 93,453 13.
Slide 24: Appendix III—GAAP Reconciliation to Adjusted EBITDA (Quarterly)
Appendix III—GAAP Reconciliation to Adjusted EBITDA (Quarterly) ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2012 2011 2012 2011 Net Income (Loss) Including Noncontrolling Interests $ 4,047 $ 3,162 $ 1,379 $ (2,008) Income Taxes 3,171 2,513 2,065 (1,186) Other (Income) Expe
Slide 25: Appendix IV—GAAP Reconciliation to Adjusted EBITDA (Annual)
Appendix IV—GAAP Reconciliation to Adjusted EBITDA (Annual) ($ in thousands) Year Ended December 31, 2007 2008 2009 2010 2011 Net Income (Loss) Including Noncontrolling Interests $ 32,466 $ 49,690 $ 34,182 $ 14,740 $ (36,492) Discontinued Operations - 114 414 (723) - Income Taxes 20,080 30,866 21,43
Slide 26: Appendix V—Supplemental Non-GAAP Information
Appendix V—Supplemental Non -GAAP Information ($ in thousands) Year Ended December 31, 2007 2008 2009 2010 2011 Net income (loss) from continuing operations attributable to Comfort Systems USA, Inc. $ 32,219 $ 49,804 $ 34,596 $ 14,017 $ (36,830) Goodwill and other intangible asset impairments (after
Slide 27: Appendix VI—GAAP Reconciliation to Adjusted EPS
Appendix VI—GAAP Reconciliation to Adjusted EPS Year Ended December 31, 2007 2008 2009 2010 2011 Diluted income (loss) per share from continuing operations attributable to Comfort Systems USA, Inc. $ 0.78 $ 1.24 $ 0.90 $ 0.37 $ (0.99) Goodwill and other intangible asset impairments - - - 0.09 1.22 C
Slide 28: Contact
Contact Bill George Executive Vice President and CFO 1-800-723-8431 bill.george@comfortsystemsusa.com www.comfortsystemsusa.com 28
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