Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (August 2017)
23 slides from Comfort Systems Usa's investor presentation, Aug 4, 2017
Slide 1: Comfort Systems USA
Comfort Systems USA Quality People. Building Solutions. August 4, 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, 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 • $1.7B yearly revenue • 8,700+ employees • 36 operating companies • Balanced construction & service portfolio 2
Slide 4: National Footprint
National Footprint 36 companies | 108 locations in 97 cities | 8,700+ 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 YTD June 2017 2016 Revenue = $846.0M Revenue = $1,634.3M 11% 11% 31% 31% 19% 18% 39% 40% New Construction Existing Building Construction Service Projects Service & Maintenance 5
Slide 7: Market Sectors
Market Sectors Multi-Family / Residential 7% Health Care 13% Retail / Restaurant / Entertainment 12% Other 5% Education 18% Office Building 15% Government 8% Industrial / Distribution 22% June 2017 YTD Revenue Revenue = $846.0M 6
Slide 8: Diverse Project Mix
Diverse Project Mix Number of Projects Aggregate Contract Value 5,000 4,513 4,500 4,000 3,500 22% 3,000 37% 2,500 2,000 1,500 1,000 41% 500 392 101 0 <$1M $1–$5M >$5M Jobs <$1M (Value: $525.0M) Jobs $1M – $5M (Value: $871.8M) Jobs >$5M (Value: $972.8M) Average Project Size: $0.5M | Average Project L
Slide 9: Lifecycle Product Portfolio
Lifecycle Product Portfolio • 5+ million nonresidential buildings • Building solutions are a necessity • Diverse revenue streams throughout lifecycle • 10 - 20 year replacement cycle • Recurring service • Increasing technical content • Essential to energy efficiency 8
Slide 10: Book of Business
Book of Business ($ in millions) Construction Backlog $1,000 $800 $600 $400 $200 $630 $618 $604 $758 $712 $763 $938 $0 2011 2012 2013 2014 2015 2016 Q2 2017 Service Maintenance Base $500 $400 $300 $200 $100 $76 $75 $83 $89 $104 $111 $117 $0 2011 2012 2013 2014 2015 2016 Q2 2017 9
Slide 11: Recent Financial Performance
Recent Financial Performance Three Months Ended Six Months Ended ($ in millions, except per share information) 6/30/17 6/30/16 6/30/17 6/30/16 Revenue $465.4 $427.5 $846.0 $813.5 Net Income $18.0 $17.7 $25.4 $27.6 Diluted EPS $0.48 $0.47 $0.67 $0.73 Adjusted EBITDA (1) $39.9 $35.3 $58.7 $56.9 Operat
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 • $34.5M cash at June 30, 2017 • Positive free cash flow for 18 consecutive years • Debt capacity – $104.7M debt at 6/30/ 2017 – $325M revolving credit facility – 2021 maturity • TTM debt/EBITDA = 0.8 • $70.3M net debt at June 30, 2017 13
Slide 15: Earnings Profile for Growth
Profile for Growth Service Earnings Time Commercial HVAC 14
Slide 16: Average Discretionary Spending
Average Discretionary Spending ($ 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 8,700+ Employees 8,700+ of the most qualified HVAC and Mechanical systems personnel in the USA 108 Locations Operating 36 companies across America at 108 locations in 97 cities $1.7 Billion $1.7 billion in yearly revenue 17
Slide 19: Appendix
18 Appendix COMFORT SYSTEMS USA
Slide 20: Appendix I – GAAP Reconciliation to Adjusted EBITDA
Appendix I – GAAP Reconciliation to Adjusted EBITDA Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2017 2016 2017 2016 Net Income $17,972 $17,717 $25,449 $27,558 Income Taxes 9,711 9,847 13,603 15,249 Other (Income) Expense, net (29) 111 (47) (375) Changes in the Fair Value o
Slide 21: Appendix II – GAAP Reconciliation to Adjusted EBITDA
Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical) Year Ended December 31, ($ 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 (August 2017) on 6ix