Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (March 2013)
29 slides from Comfort Systems Usa's investor presentation, Mar 8, 2013
Slide 1: Comfort Systems USA
Comfort Systems USA (NYSE: FIX) March 8, 2013
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 | 6,600+ 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: OSHA Recordable Incident Rate
Our Safety Record is No Accident 14 Lost Time Injury Rate 12 73% below the industry average OSHA Recordable Incident Rate 10 OSHA Incident Rate 8 34% below the industry average 6 4 2 0 1998 2000 2002 2004 2006 2008 2010 2012 Comfort Systems USA (December 2012 data) Industry Average (December 2011 –
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 2012 Acquisition Phase Sale of Assets New Acqu
Slide 10: Revenue by Activity
Revenue by Activity 2008 2012 13% 16% 47% 57% 30% 37% New Construction/Installation Replacement Service & Maintenance 10
Slide 11: Revenue by Sector
Revenue by Sector 2012 Revenue 5% 3% Education 9% 22% Healthcare Government 10% Manufacturing / Distribution Office Buildings 13% Retail / Restaurants / Entertainment Multi-Family / Residential 25% Other 13% 11
Slide 12: Diverse Project Mix
Diverse Project Mix Number of Projects Aggregate Contract Value 5,000 4,000 3,930 18% 3,000 50% 2,000 32% 1,000 260 83 0 <$1M $1–$5M >$5M Jobs <$1M (Value: $341M) Jobs $1M – $5M (Value: $600M) Jobs >$5M (Value: $919M) Average Project Size: $435,000 | Average Project Length: 6–9 months (Information a
Slide 13: Book of Business
Book of Business ($ in millions) Construction Backlog $1,000 $800 $600 $400 $200 $707 $508 $598 $630 $618 $0 4Q 2008 4Q 2009 4Q 2010 4Q 2011 4Q 2012 Service Maintenance Base $200 $150 $100 $50 $62 $63 $72 $76 $75 $0 4Q 2008 4Q 2009 4Q 2010 4Q 2011 4Q 2012 13
Slide 14: Historical Financial Summary
Historical Financial Summary ($ 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 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 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) 12/31/12 12/31/11 Revenue $ 315.9 $ 313.9 Net Income from Continuing Operations Attributable to Comfort Systems USA, Inc. $ 3.8 $ 4.3 Adjusted Net Income (1) $ 3.1 $ 4.3 Diluted EPS from Continuing Operations
Slide 16: YTD Financial Performance
YTD Financial Performance Twelve Months Ended ($ in millions, except per share information) 12/31/12 12/31/11 Revenue $ 1,331.2 $ 1,216.7 Net Income (Loss) from Continuing Operations Attributable to Comfort Systems USA, Inc. $ 13.1 $ (32.8) Adjusted Net Income (1) $ 12.5 $ 8.8 Diluted EPS from Conti
Slide 17: Key Financial Statistics
Key Financial Statistics As of ($ in millions) 12/31/12 12/31/11 Cash $ 40.8 $ 51.2 Working Capital $ 104.0 $ 109.8 Goodwill and Intangible Assets $ 159.1 $ 155.4 Total Debt $ 7.4 $ 15.4 Equity $ 287.3 $ 283.1 17
Slide 18: Balance Sheet Strength
Balance Sheet Strength • $40.8M cash at December 31, 2012 • Positive free cash flow for 14 consecutive years • Debt capacity o $7.4M debt at 12/31/ 2012 o $125M revolving credit facility o 2016 maturity 18
Slide 19: Earnings Profile for Growth
Profile for Growth Service Earnings Time Commercial HVAC 19
Slide 20: Industry Environment: McGraw Hill Construction
Industry Environment: McGraw Hill Construction Comfort Systems USA in the Next Cycle Total Nonresidential Construction Starts Billions of Current Dollars History Forecast • Expanding service 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 • Growing markets • Investing in our workforce Nonresidenti
Slide 21: Appendices
svstemsU A. Quality People. Building Solutions.
Slide 22: Appendix I—Income Statement (QTD)
Appendix I —Income Statement (QTD) Three Months Ended December 31, ($ in thousands, except per share information) 2012 2011 Revenue $ 315,870 100.0% $ 313,851 100.0% Cost of Services 260,797 82.6% 263,386 83.9% Gross Profit 55,073 17.4% 50,465 16.1% Selling, General and Administrative Expenses 47,02
Slide 23: Appendix II—Income Statement (YTD)
Appendix II —Income Statement (YTD) Twelve Months Ended December 31, ($ in thousands, except per share information) 2012 2011 Revenue $ 1,331,185 100.0% $ 1,216,654 100.0% Cost of Services 1,123,564 84.4% 1,035,124 85.1% Gross Profit 207,621 15.6% 181,530 14.9% Selling, General and Administrative Ex
Slide 24: Appendix III—Supplemental Non-GAAP Information
Appendix III—Supplemental Non-GAAP Information ($ in thousands) Three Months Ended December 31, Twelve Months Ended December 31, 2012 2011 2012 2011 Net income (loss) from continuing operations attributable to Comfort Systems USA $ 3,759 $ 4,279 $ 13,108 $ (32,812) Goodwill impairment (after tax) -
Slide 25: Appendix IV—GAAP Reconciliation to Adjusted EBITDA
Appendix IV—GAAP Reconciliation to Adjusted EBITDA ($ in thousands) Three Months Ended December 31, Twelve Months Ended December 31, 2012 2011 2012 2011 Net Income (Loss) Including Noncontrolling Interests $ 5,145 $ 2,085 $ 11,849 $ (36,492) Discontinued Operation (592) 2,532 (355) 4,018 Income Taxe
Slide 26: Appendix V—GAAP Reconciliation to Adjusted EBITDA (Historical)
Appendix V—GAAP Reconciliation to Adjusted EBITDA (Historical) ($ in thousands) Year Ended December 31, 2008 2009 2010 2011 2012 Net Income (Loss) Including Noncontrolling Interests $ 49,690 $ 34,182 $ 14,740 ($36,492) $11,849 Discontinued Operations 107 (1,282) 5,824 4,018 (355) Income Taxes 30,855
Slide 27: Appendix VI—Supplemental Non-GAAP Information (Historical)
Appendix VI—Supplemental Non-GAAP Information (Historical) ($ in thousands) Year Ended December 31, 2008 2009 2010 2011 2012 Net income (loss) from continuing operations attributable to Comfort Systems USA, Inc. $ 49,797 $ 32,900 $ 20,564 ($32,812) $13,108 Goodwill impairment (after tax) - - - 44,80
Slide 28: Appendix VII—GAAP Reconciliation to Adjusted EPS (Historical)
Appendix VII—GAAP Reconciliation to Adjusted EPS (Historical) Year Ended December 31, 2008 2009 2010 2011 2012 Diluted income (loss) per share from continuing operations attributable to Comfort Systems USA, Inc. $ 1.24 $ 0.86 $ 0.54 $ (0.88) $ 0.35 Goodwill and other intangible asset impairments - -
Slide 29: Contact
Contact Bill George Executive Vice President and CFO 1-800-723-8431 bill.george@comfortsystemsusa.com www.comfortsystemsusa.com 29
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