Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (May 2017)
23 slides from Comfort Systems Usa's investor presentation, May 2, 2017
Slide 1: Comfort Systems USA
Comfort Systems USA Quality People. Building Solutions. May 2, 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 • 8,500 employees • 36 operating companies • Balanced construction & service portfolio 2
Slide 4: National Footprint
National Footprint 36 companies | 102 locations in 95 cities | 8,500 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 19% 18% 80% 11% 11% • Continue to grow 60% 31% 31% construction 40% • Leverage existing 20% 39% 40% construction capabilities 0% into retrofit market 2017 YTD 2016 Service & Maintenance • Access to new custom
Slide 7: Market Sectors
Market Sectors Multi-Family / Residential Health Care 7% 14% Retail / Restaurant / Entertainment Other 12% 4% Education 16% Office Building 14% Government 10% Industrial / Distribution 23% March 2017 YTD Revenue 6
Slide 8: Diverse Project Mix
Diverse Project Mix Number of Projects Aggregate Contract Value 4,000 3,630 3,500 3,000 21% 2,500 38% 2,000 1,500 1,000 41% 500 351 92 0 <$1M $1–$5M >$5M Jobs <$1M (Value: $451.7M) Jobs $1M – $5M (Value: $799.1M) Jobs >$5M (Value: $871.7M) Average Project Size: $0.5M | Average Project Length: 6 – 9
Slide 9: Lifecycle Product Portfolio
Lifecycle Product Portfolio • 5+ million nonresidential buildings • Building solutions a necessity • Diverse revenue streams throughout lifecycle • 10 - 20 year replacement cycle • Recurring service • Increasing technical content • Essential to energy efficiency 8
Slide 10: Book of Business
Book of Business ($ in millions) Construction Backlog $1,000 $800 $600 $400 $200 $630 $618 $604 $758 $712 $763 $863 $0 2011 2012 2013 2014 2015 2016 Q1 2017 Service Maintenance Base $500 $400 $300 $200 $100 $76 $75 $83 $89 $104 $111 $113 $0 2011 2012 2013 2014 2015 2016 Q1 2017 9
Slide 11: Recent Financial Performance
Recent Financial Performance Three Months Ended ($ in millions, except per share information) 3/31/17 3/31/16 Revenue $380.6 $385.9 Net Income $7.5 $9.8 Diluted EPS $0.20 $0.26 Adjusted EBITDA (1) $18.8 $21.6 Operating Cash Flow $10.1 $13.1 (1)Adjusted EBITDA is a non-GAAP financial measure. See App
Slide 12: Adjusted EPS/Stock Price History
Adjusted EPS/Stock Price History $1.80 $35.00 $1.60 $30.00 $1.40 $25.00 $1.20 Stock Price at 12 / 31 Adjusted EPS at 12/31* $1.00 $20.00 $0.80 ` $15.00 $0.60 $10.00 $0.40 $5.00 $0.20 $- $- 2012 2013 2014 2015 2016 Adjusted EPS at 12/31* Stock Price at 12/31 *Adjusted EPS is a non-GAAP financial meas
Slide 13: Historical Financial Summary
Historical Financial Summary ($ 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 • $31.4M cash at March 31, 2017 • Positive free cash flow for 18 consecutive years • Debt capacity – $2.0M debt at 3/31/ 2017 – $325M revolving credit facility – 2021 maturity 13
Slide 15: Profile for Growth
Profile for Growth Service Earnings Time Commercial HVAC 14
Slide 16: Average Discretionary Spending
Average Discretionary Spending ($ 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 8,500 Employees Approx. 8,500 of the most qualified HVAC and Mechanical systems personnel in the USA 102 Locations Operating 36 companies across America at 102 locations in 95 cities $1.6 Billion $1.6 billion in yearly revenue 17
Slide 19: Appendix
18 Appendix COMFORT SYSTEMS USA
Slide 20: Appendix I – GAAP Reconciliation to Adjusted EBITDA
Appendix I – GAAP Reconciliation to Adjusted EBITDA Three Months Ended March 31, ($ in thousands) 2017 2016 Net Income $7,477 $9,841 Income Taxes 3,892 5,402 Other (Income) Expense, net (18) (486) Changes in the Fair Value of Contingent Earn-out Obligations 26 - Interest Expense, net 379 700 Gain on
Slide 21: Appendix II – GAAP Reconciliation to Adjusted EBITDA
Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical) Year Ended December 31, ($ 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 (May 2017) on 6ix