Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (March 2017)
23 slides from Comfort Systems Usa's investor presentation, Mar 7, 2017
Slide 1: Comfort Systems USA
Comfort Systems USA Quality People. Building Solutions. March 7, 2017
Slide 2: 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
Slide 3: Comfort Systems USA
Comfort Systems USA • Leading mid-market HVAC and mechanical systems installation and service provider • $1.6B yearly revenue • 7,700+ employees • 35 operating companies • Balanced construction & service portfolio 2
Slide 4: National Footprint
National Footprint 35 companies | 91 locations in 84 cities | 7,700+ 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: Targeted Portfolio Strategy
Targeted Portfolio Strategy Revenue by Activity • Light commercial to heavy 100% commercial 18% 18% 80% 10% 11% • Continue to grow 60% 28% 31% construction 40% • Leverage existing 20% 44% 40% construction capabilities 0% into retrofit market 2015 2016 Service & Maintenance • Access to new customers
Slide 7: Market Sectors
Market Sectors Multi-Family / Residential Health Care 8% 12% Retail / Restaurant / Entertainment Other 12% Education 4% 19% Office Building 12% Government Industrial / 10% Distribution 23% 2016 Revenue 6
Slide 8: Diverse Project Mix
Diverse Project Mix Number of Projects Aggregate Contract Value 4,000 3,500 3,415 3,000 21% 2,500 38% 2,000 1,500 1,000 41% 500 328 87 0 <$1M $1–$5M >$5M Jobs <$1M (Value: $423M) Jobs $1M – $5M (Value: $744M) Jobs >$5M (Value: $808M) Average Project Size: $0.5M | Average Project Length: 6 – 9 months
Slide 9: Lifecycle Product Portfolio
Lifecycle Product Portfolio • 5+ million nonresidential buildings • Building solutions a necessity • Diverse revenue streams throughout lifecycle • 10 - 20 year replacement cycle • Recurring service • Increasing technical content • Essential to energy efficiency 8
Slide 10: Book of Business
Book of Business ($ in millions) Construction Backlog $1,000 $800 $600 $400 $200 $630 $618 $604 $758 $712 $763 $0 2011 2012 2013 2014 2015 2016 Service Maintenance Base $500 $400 $300 $200 $100 $76 $75 $83 $89 $104 $111 $0 2011 2012 2013 2014 2015 2016 9
Slide 11: Recent Financial Performance
Recent Financial Performance Three Months Ended Twelve Months Ended ($ in millions, except per share information) 12/31/16 12/31/15 12/31/16 12/31/15 Revenue $392.1 $383.8 $1,634.3 $1,580.5 Net Income Attributable to Comfort Systems USA, Inc. $16.9 $13.2 $64.9 $49.4 Diluted EPS Attributable to Comfo
Slide 12: Revenue/Stock Price History
Revenue/Stock Price History $2,000 $35.00 $1,800 $30.00 $1,600 Revenue ($ in millions) $1,400 $25.00 Stock Price at 12 / 31 $1,200 $20.00 $1,000 ` $15.00 $800 $600 $10.00 $400 $5.00 $200 $0 $- 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 11
Slide 13: Historical Financial Summary
Historical Financial Summary ($ in millions, except per share information) Revenue Adjusted EPS (1) CAGR = 4.19% CAGR = 38.80% $1,800 $2.00 $1,500 $1.60 $1,200 $1.20 $900 $0.80 $600 $300 $0.40 $0 $0.00 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Operating Cash Flow Adjusted EBITDA (2) $120 CAG
Slide 14: Balance Sheet Strength
Balance Sheet Strength • $32.1M cash at December 31, 2016 • Positive free cash flow for 18 consecutive years • Debt capacity – $2.8M debt at 12/31/ 2016 – $325M revolving credit facility – 2021 maturity 13
Slide 15: Profile for Growth
Profile for Growth Service Earnings Time Commercial HVAC 14
Slide 16: Average Discretionary Spending
Average Discretionary Spending ($ in thousands) Average 2006 - 2016 $7,699 19% $8,691 $24,455 21% 60% Acquisitions Share Repurchases Dividends $50,000 $45,000 $43,071 $40,845 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $- 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 7,700+ Employees Over 7,700 of the most qualified HVAC and Mechanical systems personnel in the USA 91 Locations Operating 35 companies across America at 91 locations in 84 cities $1.6 Billion $1.6 billion in yearly revenue 17
Slide 19: Appendix
18 Appendix COMFORT SYSTEMS USA.
Slide 20: Appendix I – GAAP Reconciliation to Adjusted EBITDA
Appendix I – GAAP Reconciliation to Adjusted EBITDA Three Months Ended December 31, Twelve Months Ended December 31, ($ in thousands) 2016 2015 2016 2015 Net Income Including Non-controlling Interests $16,867 $14,883 $64,896 $57,440 Income Taxes 9,113 9,022 36,165 31,224 Other (Income) Expense, net
Slide 21: Appendix II – GAAP Reconciliation to Adjusted EBITDA
Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical) Year Ended December 31, ($ in thousands) 2012 2013 2014 2015 2016 Net Income (Loss) Including Non-controlling $11,849 $28,556 $28,599 $57,440 $64,896 Interests Discontinued Operations (355) 76 15 - - Income Taxes 10,045 18,148 11,614
Slide 22: Appendix III – Supplemental Non-GAAP Information
Appendix III – Supplemental Non-GAAP Information (Historical) Year Ended December 31, 2012 2013 2014 2015 2016 Diluted income (loss) per share from continuing operations attributable $0.35 $0.73 $0.61 $1.30 $1.72 to Comfort Systems USA, Inc. Goodwill Impairment - - 0.01 - - Changes in the fair value
Slide 23: Contact
Contact Bill George Executive Vice President and CFO 1-800-723-8431 bill.george@comfortsystemsusa.com www.comfortsystemsusa.com 22
Comfort Systems USA — Investor Presentation (March 2017) on 6ix