Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (May 2023)
20 slides from Comfort Systems Usa's investor presentation, May 2, 2023
Slide 1: Quality People. Building Solutions.
Quality People. Building Solutions. NYSE: FIX May 2, 2023
Slide 2: Safe Harbor
SAFE HARBOR Certain statements and information in this presentation may constitute forward - looking statements within the meaning of applicab le securities laws and regulations. The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” or oth er similar e
Slide 3: Comfort Systems USA
COMFORT SYSTEMS USA 2 • Leading national mechanical, electrical and plumbing (“MEP”) installation and service provider • $4.0+ billion yearly revenue • 14,700+ employees • History of profitable growth • Balanced construction and service portfolio
Slide 4: National Footprint
NATIONAL FOOTPRINT 3 173 locations | 132 cities | 14,700+ employees
Slide 5: Revenue Breakdown – YTD 2023
9% 11% 39% 26% 15% New Construction Existing Building Construction Modular Construction Service Projects Service Calls, Maintenance & Monitoring REVENUE BREAKDOWN – YTD 2023 4 ACTIVITY YTD 2023 Revenue = $1.17B Healthcare 14% Education 9% Government 6% Manufacturing 31% Technology 19% Office Buildin
Slide 6: Construction Backlog
CONSTRUCTION BACKLOG 5 $763 $948 $1,166 $1,602 $1,511 $2,312 $4,064 $4,445 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 2016 2017 2018 2019 2020 2021 2022 Q1 2023 ($ in millions)
Slide 7: Service Maintenance Base
SERVICE MAINTENANCE BASE 6 $111 $116 $123 $127 $130 $147 $161 $165 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 2016 2017 2018 2019 2020 2021 2022 Q1 2023 ($ in millions)
Slide 8: Recent Financial Performance
RECENT FINANCIAL PERFORMANCE 7 THREE MONTHS ENDED TWELVE MONTHS ENDED ($ in millions, except per share information) 3/31/23 3/31/22 12/31/22 Revenue $1,174.6 $885.2 $4,140.4 Net Income $57.2 $86.8 $245.9 Diluted EPS $1.59 $2.40 $6.82 Adjusted EPS (1) $1.51 $0.91 $5.29 Adjusted EBITDA (2) $90.3 $60.7
Slide 9: Focus on Cash Flow
FOCUS ON CASH FLOW • Positive free cash flow for 24 consecutive years • Increased dividend for 11 consecutive years • Debt/TTM EBITDA = 0.57 • $48.6M cash at March 31, 2023 • $209.2M total debt at March 31, 2023 • Debt capacity – $160M borrowings at 3/31/23 – $850M senior credit facility – 2027 matu
Slide 10: Capital Allocation
9 CAPITAL ALLOCATION ($ in thousands) $77,414 75% $15,505 15% $10,611 10% AVERAGE 2007 - 2022 Acquisitions Share Repurchases Dividends
Slide 11: Capital Returned
10 CAPITAL RETURNED ($ in thousands) FISCAL PERIODS SHARE REPURCHASES DIVIDENDS CAPITAL RETURNED 2015 $8,330 $9,358 $17,688 2016 $13,088 $10,264 $23,352 2017 $9,007 $10,987 $19,994 2018 $28,533 $12,268 $40,801 2019 $19,550 $14,543 $34,093 2020 $30,120 $15,499 $45,619 2021 $27,054 $17,384 $44,438 202
Slide 12: Market Outlook
MARKET OUTLOOK 11 Strong Markets • Technology – Data Centers and Chip Manufacturing • Life Sciences - Pharmaceuticals • Food Processing • Manufacturing • Healthcare • EV Battery Trends • Industrial • Re - Shoring • Indoor Air Quality • Service • Modular
Slide 13: Modular Off-Site Construction
MODULAR OFF - SITE CONSTRUCTION 12
Slide 14: ESG goals and employee environment
Foster a safe, collaborative, and inclusive environment for our employees • 100% of all operating companies have diversity, equity, and inclusion action plans • 100% of operational sites have conducted an employee health and safety risk assessment and utilize the CAUSE Mapping program and the “5x5”
Slide 15: Innovation with an Emphasis on Productivity
Time Innovation INNOVATION WITH AN EMPHASIS ON PRODUCTIVITY 2004 – 2014 • Early adoption of BIM • Industry - leading prefabrication • Best practice sharing across subsidiaries 2014 – Present • Investments in advanced BIM technologies • EAS & TAS modular construction • Mobile technology deployment in
Slide 16: Our Values
15 Be safe Be honest Be respectful Be innovative Be collaborative OUR VALUES
Slide 17: Our Strength
OUR STRENGTH 16 • Consistent free cash flow • Strong Balance Sheet • Acquisition record • Leading innovation • Profitable growth
Slide 18: Thank You
THANK YOU 17 173 Locations 43 operating companies across America at 173 locations in 132 cities 14,700+ of the most qualified HVAC and electrical contracting personnel in America 14,700+ Employees $4.0+ Billion $4.0+ billion in yearly revenue CONTACT: Julie Shaeff Chief Accounting Officer 1 - 800 -
Slide 19: Appendix I – GAAP Reconciliation to Adjusted EBITDA
APPENDIX I – GAAP RECONCILIATION TO ADJUSTED EBITDA 18 Three Months Ended March 31, Twelve Months Ended December 31, ($ in thousands) 2023 2022 2022 Net Income $57,216 $86,762 $245,947 Provision (Benefit) for Income Taxes 8,609 (49,053) (10,089) Other (Income) Expense, net (1) (56) (134) Changes in
Slide 20: Appendix II – GAAP Reconciliation to Adjusted EPS
APPENDIX II – GAAP RECONCILIATION TO ADJUSTED EPS 19 Three Months Ended March 31, Twelve Months Ended December 31, 2023 2022 2022 Diluted Income per Share $1.59 $2.40 $6.82 Tax Gains Related to Prior Years (0.09) (1.59) (1.64) Tax - Related SG&A Costs, Net of Tax 0.01 0.10 0.11 Diluted Income per Sh
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