Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (May 2018)
19 slides from Comfort Systems Usa's investor presentation, May 2, 2018
Slide 1: Comfort Systems USA
Comfort Systems USA Quality People. Building Solutions. May 2, 2018
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, 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 mechanical systems installation and service provider • $1.8B yearly revenue • 8,800+ employees • 36 operating companies • Balanced construction & service portfolio 2
Slide 4: National Footprint
National Footprint 36 companies | 118 locations in 105 cities | 8,800+ employees 3
Slide 5: Targeted Portfolio Strategy
Targeted Portfolio Strategy YTD March 2018 FY 2017 Revenue = $464.9M Revenue = $1,787.9M 9% 11% 33% 32% 19% 19% 39% 38% New Construction Existing Building Construction Service Projects Service Calls, Maintenance & Monitoring 4
Slide 6: Market Sectors
Market Sectors Multi-Family / Residential 7% Health Care Retail / Restaurant / 14% Entertainment Other 11% 4% Education 19% Office Building 15% Government Industrial 8% 22% YTD March 2018 Revenue Revenue = $464.9M 5
Slide 7: Diverse Project Mix
Diverse Project Mix Number of Projects 4,500 4,000 3,919 3,500 3,000 2,500 2,000 1,500 1,000 500 397 103 0 <$1M $1–$5M >$5M Average Project Size: $0.6 M | Average Project Length: 6 – 9 months (Information as of March 31, 2018) 6
Slide 8: Book of Business
Book of Business ($ in millions) Construction Backlog $1,200 $1,000 $800 $600 $400 $200 $630 $618 $604 $758 $712 $763 $948 $1,079 $0 2011 2012 2013 2014 2015 2016 2017 Q1 2018 Service Maintenance Base $200 $175 $150 $125 $100 $75 $50 $25 $76 $75 $83 $89 $104 $111 $116 $116 $0 2011 2012 2013 2014 201
Slide 9: Recent Financial Performance
Recent Financial Performance Three Months Ended ($ in millions, except per share information) 3/31/18 3/31/17 Revenue $464.9 $380.6 Net Income $16.7 $7.5 Diluted EPS $0.44 $0.20 Adjusted EBITDA (1) $28.3 $18.8 Operating Cash Flow $3.9 $10.1 (1) Adjusted EBITDA is a non-GAAP financial measure. See Ap
Slide 10: Adjusted EPS/Stock Price History
Adjusted EPS/Stock Price History $2.00 $50.00 $1.80 $45.00 $1.60 $40.00 $1.40 $35.00 Stock Price at 12 / 31 Adjusted EPS at 12/31* $1.20 $30.00 $1.00 $25.00 ` $0.80 $20.00 $0.60 $15.00 $0.40 $10.00 $0.20 $5.00 $- $- 2012 2013 2014 2015 2016 2017 Adjusted EPS at 12/31* Stock Price at 12/31 *Adjusted
Slide 11: Historical Financial Summary
Historical Financial Summary ($ in millions, except per share information) Revenue Adjusted EPS (1) CAGR = 6.08% CAGR = 37.81% $2,100 $2.00 $1,800 $1.60 $1,500 $1,200 $1.20 $900 $0.80 $600 $0.40 $300 $0 $0.00 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 Operating Cash Flow Adjusted EB
Slide 12: Balance Sheet Strength
Balance Sheet Strength • $25.2M cash at March 31, 2018 • Positive free cash flow for 19 consecutive years • Debt capacity – $66.0M debt at 3/31/18 – $400M revolving credit facility – 2023 maturity • Debt/TTM EBITDA = 0.5 • $40.8M net debt at March 31, 2018 11
Slide 13: Profile for Growth
Profile for Growth Service Earnings Time Commercial HVAC 12
Slide 14: Average Discretionary Spending
Average Discretionary Spending ($ in thousands) Average 2006 - 2017 $7,973 17% $8,717 19% $30,322 64% Acquisitions Share Repurchases Dividends $50,000 $46,147 $47,012 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $- Free Cash Flow Disc Spending 13
Slide 15: Our Strengths
Our Strengths • Industry leading skilled labor • Ability to share knowledge • Diverse portfolio • Strong balance sheet • Acquisition record • Positioned for growth 14
Slide 16: Appendix I – GAAP Reconciliation to Adjusted EBITDA
Appendix I – GAAP Reconciliation to Adjusted EBITDA Three Months Ended March 31, ($ in thousands) 2018 2017 Net Income $16,659 $7,477 Provision for Income Taxes 2,074 3,892 Other (Income) Expense, net (38) (18) Changes in the Fair Value of Contingent Earn-out Obligations (153) 26 Interest (Income) E
Slide 17: Appendix II – GAAP Reconciliation to Adjusted EBITDA
Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical) Year Ended December 31, ($ in thousands) 2012 2013 2014 2015 2016 2017 Net Income (Loss) Including Non-controlling $11,849 $28,556 $28,599 $57,440 $64,896 55,272 Interests Discontinued Operations (355) 76 15 - - - Provision for Income
Slide 18: Appendix III – Supplemental Non-GAAP Information
Appendix III – Supplemental Non-GAAP Information (Historical) Year Ended December 31, 2012 2013 2014 2015 2016 2017 Diluted income (loss) per share from continuing operations $0.35 $0.73 $0.61 $1.30 $1.72 $1.47 attributable to Comfort Systems USA, Inc. Goodwill impairment - - 0.01 - - 0.02 Tax valua
Slide 19: Thank You
Thank You 8,800+ Employees 8,800+ of the most qualified HVAC and Mechanical systems personnel in the USA 118 Locations 36 operating companies across America at 118 locations in 105 cities $1.8 Billion $1.8 billion in yearly revenue Contact: Bill George Executive Vice President & CFO 1-800-723-8431 B
Comfort Systems USA — Investor Presentation (May 2018) on 6ix