Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (February 2024)
23 slides from Comfort Systems Usa's investor presentation, Feb 23, 2024
Slide 1: Comfort Systems USA Investor Presentation
systemsU A Quality People. Building Solutions. NYSE: FIX February 23, 2024 COMFORT SYSTEMS UA
Slide 2: Forward-looking statements
Certain statements and information in this presentation may constitute forward-looking statements within the meaning of applicable securities laws and regulations. The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” or other similar expressions are i
Slide 3: Leading national MEP installation and service provider
• Leading national mechanical, electrical and plumbing (“MEP”) installation and service provider • $5.0+ billion yearly revenue • 15,000+ employees • History of profitable growth • Advantageous mechanical, electrical, and modular construction and service portfolio
Slide 4: National Footprint
NATIONAL FOOTPRINT 17 6) locations | 13 4 cities | 1 5 9 0 0 0 + employees
Slide 5: Key market drivers and end markets
• Technology – Data Centers and Chip Manufacturing • Life Sciences - Pharmaceuticals • Food Processing • Manufacturing • Healthcare • EV Battery • Industrial • Re-Shoring • Indoor Air Quality • Service • Modular
Slide 6: Q4 and FY 2023 Revenue and Gross Profit
Q4 2023 Revenue = $1,357.6M Q4 2023 Gross Profit = $279.7M FY 2023 Revenue = $5,206.8M FY 2023 Gross Profit = $990.5M
Slide 7: Revenue Breakdown - 2023
REVENUE BREAKDOWN - 2023 2023 Revenue = $5.21B Service Projects Modular 9% 15% Service and Maintenance 11% New Construction 40% ACTIVITY MARKET SECTOR Retail Healthcare ©. GH 11% %, e Education 9% Government 6% Technology 21% Manufacturing 34% SOMFORTUGA.
Slide 8: Strong Markets
STRONG MARKETS (5 in millions) % OF TOTAL REVENUE Texas $1,260.6 24.2% North Carolina 666.4 12.8% Indiana 415.6 8.0% Virginia 398.7 7.7% Tennessee 332.5 6.4% Florida 310.6 6.0% 7 COMFORT U SYSTEMS <
Slide 9: Construction Backlog
CONSTRUCTION BACKLOG (Sin millions) $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $ $763 $1,166 $1,602 $1,511 $2,312] 2016 2017 2018 2019 2020 2021 2022 SOMFORTUGA.
Slide 10: Service Maintenance Base
SERVICK MAINTENANCE BASE (Sin millions) $180 $160 $140 $120 $100 $80 $60 $40 $20 $111 $116 $123 $127 $130 $147 $161 $165 % 2016 2017 2018 2020 2021 2022 9 soereesun
Slide 11: Financial summary
($ in millions, except per share information) (1) Adjusted EPS is a non-GAAP financial measure. Adjusted EPS excludes tax gains. See Appendix II for a GAAP reconciliation to Adjusted EPS. (2) Adjusted EBITDA is a non-GAAP financial measure. See Appendix I for a GAAP reconciliation to Adjusted EBITDA
Slide 12: Cash flow
($ Millions) - Full year 2023 operating cash flow far exceeds full year net income - At 12/31/23, we have a very substantial amount of unearned customer cash - Pre-bookings and equipment advances will normalize creating cash flow headwind when project costs are incurred
Slide 13: Free cash flow and balance sheet strength
• Positive free cash flow for 25 consecutive years • Increased dividend for 11 consecutive years • Debt/TTM EBITDA = 0.09 • $205.2 M cash at December 31, 2023 • $44.2 M total debt at December 31, 2023 • Debt capacity – No borrowings at 12/31/23 – $850M senior credit facility – 2027 maturity
Slide 14: Capital Allocation
CAPITAL ALLOCATION ($ in thousands) AVERAGE 2007 - 2023 $11,774 11% $15,839 14% $82,524 75% = Acquisitions = Share Repurchases = Dividends 13 COMFORT SYSTEMS USA.
Slide 15: Capital Returned
CAPITAL RETURNED (S 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 2022 $
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Slide 17: Planet, Partners, People
Our environmental, social and corporate governance (ESG) goals are embedded in how we operate as a business – they are part of our very foundation and core values of being safe, honest, respectful, collaborative, and innovative – and we have diligently sought to develop transparent disclosures to su
Slide 18: Innovation and technology initiatives
• Pilots of emerging technologies • Partnerships with industry leading tech firms • Data analytics to drive business insights • Investments in advanced BIM technologies • EAS & TAS modular construction • Mobile technology deployment in service • Early adoption of BIM • Industry-leading prefabricatio
Slide 19: Core values
Be safe Be honest Be respectful Be innovative Be collaborative
Slide 20: Investment highlights
• Consistent free cash flow • Strong Balance Sheet • Acquisition record • Attractive geographies • Leading innovation • Profitable growth
Slide 21: Company summary and contact
15,000+ of the most qualified HVAC and electrical contracting personnel in America 46 operating companies across America at Approximately $5 .0+ billion in yearly 176 locations in 134 cities revenue Julie Shaeff Chief Accounting Officer 1-800-723-8431 ir@comfortsystemsusa.com www.comfortsystemsusa.c
Slide 22: Appendix I: Adjusted EBITDA reconciliation
($ in thousands) Note: The Company defines adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”) as net income, provision for income taxes, other expense (income), net, changes in the fair value of contingent earn-out obligations, interest expense (income), net
Slide 23: Appendix II: Adjusted EPS reconciliation
Note: Diluted income per share excluding tax gains is presented because the Company believes it reflects the results of the core ongoing operations of the Company, and we believe it is responsive to frequent questions we receive from third parties. This measure, however, is not considered a primary
Comfort Systems USA — Investor Presentation (February 2024) on 6ix