Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (May 2016)
25 slides from Comfort Systems Usa's investor presentation, May 6, 2016
Slide 1: Comfort Systems USA
Comfort Systems USA Quality People. Building Solutions. May 6, 2016
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 revenues • 7,500+ Employees • 35 Operating companies • Balanced construction & service portfolio 2
Slide 4: Broad Nationwide Footprint
Broad Nationwide Footprint 35 companies | 98 locations in 85 cities | 7,500+ 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% 13% commercial 90% 18% 80% • Continue to grow 70% 30% 60% 41% construction 50% 40% • Leverage existing 30% 57% construction capabilities 20% 41% 10% into retrofit market 0% 2008 2016 YTD • Access to new customers Servic
Slide 7: Market Sectors
Market Sectors Multi-Family / Residential 8% Health Care 12% Retail / Restaurant / Entertainment Other 11% Education 3% 16% Technology 4% Office Building Government 14% 9% Manufacturing / Distribution 23% March 2016 YTD Revenue 6
Slide 8: Diverse Project Mix
Diverse Project Mix Number of Projects Aggregate Contract Value 4,000 3,676 3,500 3,000 20% 2,500 34% 2,000 1,500 1,000 46% 500 309 94 0 <$1M $1–$5M >$5M Jobs <$1M (Value: $416M) Jobs $1M – $5M (Value: $685M) Jobs >$5M (Value: $946M) Average Project Size: $0.5M | Average Project Length: 6 – 9 months
Slide 9: Lifecycle Product Portfolio
Lifecycle Product Portfolio • 5+ million nonresidential buildings • Building solutions a necessity • Diverse revenue streams throughout lifecycle • 10 - 20 year replacement cycle • Recurring service • Increasing technical content • Essential to energy efficiency 8
Slide 10: Why We Win
Why We Win Be Here Investment in service technology When I Need Real time GPS You Always Handle National training program My Problems Better positioned to attract labor The First Time Advantaged Leverage our scale and national Value footprint Position Make It Really Technology investments Easy To Do
Slide 11: Book of Business
Book of Business ($ in millions) Construction Backlog $1,000 $800 $600 $400 $200 $598 $630 $618 $604 $758 $712 $777 $0 2010 2011 2012 2013 2014 2015 Q1 2016 Service Maintenance Base $500 $400 $300 $200 $100 $72 $76 $75 $83 $89 $104 $107 $0 2010 2011 2012 2013 2014 2015 Q1 2016 10
Slide 12: Recent Financial Performance
Recent Financial Performance Three Months Ended ($ in millions, except per share information) 3/31/16 3/31/15 Revenue $385.9 $369.5 Net Income Attributable to Comfort Systems USA, Inc. $9.8 $5.1 Diluted EPS Attributable to Comfort Systems USA, Inc. $0.26 $0.13 Adjusted EBITDA (1) $21.6 $16.6 Operati
Slide 13: Revenue/Stock Price History
Revenue/Stock Price History $2,000 $30.00 $1,800 $25.00 $1,600 Revenue ($ in millions) $1,400 Stock Price at 12 / 31 $20.00 $1,200 $1,000 $15.00 ` $800 $10.00 $600 $400 $5.00 $200 $0 $- 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12
Slide 14: Historical Financial Summary
Historical Financial Summary ($ in millions, except per share information) Revenue Adjusted EPS (1) $1,800 $1.40 $1,500 $1.20 $1.00 $1,200 $0.80 $900 $0.60 $600 $0.40 $300 $0.20 $0 $0.00 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 Operating Cash Flow Adjusted EBITDA (2) $120 $120 $10
Slide 15: Historical Financial Summary
Historical Financial Summary Operating Income % (1) 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2008 2009 2010 2011 2012 2013 2014 2015 Adjusted EBITDA % (2) 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2008 2009 2010 2011 2012 2013 2014 2015 (1) Operating income for 2011 excludes goodwill impairment of
Slide 16: Balance Sheet Strength
Balance Sheet Strength • $43.5M cash at March 31, 2016 • Positive free cash flow for 17 consecutive years • Debt capacity – $51M debt at 3/31/ 2016 – $325M revolving credit facility – 2021 maturity 15
Slide 17: Profile for Growth
Profile for Growth Service Earnings Time Commercial HVAC 16
Slide 18: Average Discretionary Spending
Average Discretionary Spending ($ in thousands) Average 2006 - 2015 $7,443 20% $21,184 $8,251 58% 22% Acquisitions Share Repurchases Dividends $45,000 $40,475 $40,000 $36,878 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $- Free Cash Flow Disc Spending 17
Slide 19: Our Strengths
Our Strengths • Industry leading skilled labor • Ability to share knowledge • Diverse portfolio • Strong balance sheet • Acquisition record • Positioned for growth 18
Slide 20: Thank You
Thank You 7,500+ Employees Over 7,500 of the most qualified HVAC and Mechanical systems personnel in the USA 98 Locations Operating 35 companies across America at 98 locations in 85 cities $1.6 Billion $1.6 billion in yearly revenues 19
Slide 21: Appendix
20 Appendix COMFORT SYSTEMS USA.
Slide 22: Appendix I – GAAP Reconciliation to Adjusted EBITDA
Appendix I – GAAP Reconciliation to Adjusted EBITDA Three Months Ended March 31, ($ in thousands) 2016 2015 Net Income Including Non-controlling Interests $9,755 $6,889 Income Taxes 5,497 3,793 Other (Income) Expense, net (486) (18) Interest Expense, net 700 504 Gain on Sale of Assets (145) (176) De
Slide 23: Appendix II – GAAP Reconciliation to Adjusted EBITDA
Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical) Year Ended December 31, ($ in thousands) 2008 2009 2010 2011 2012 2013 2014 2015 Net Income (Loss) Including Non- $49,690 $34,182 $14,740 ($36,492) $11,849 $28,556 $28,599 $57,440 controlling Interests Discontinued Operations 107 (1,2
Slide 24: Appendix III – Supplemental Non-GAAP Information
Appendix III – Supplemental Non-GAAP Information (Historical) Year Ended December 31, 2010 2011 2012 2013 2014 2015 Diluted income (loss) per share from continuing operations $0.54 $(0.88) $0.35 $0.73 $0.61 $1.30 attributable to Comfort Systems USA, Inc. Goodwill Impairment - 1.20 - - 0.01 - Changes
Slide 25: Contact
Contact Bill George Executive Vice President and CFO 1-800-723-8431 bill.george@comfortsystemsusa.com www.comfortsystemsusa.com 24
Comfort Systems USA — Investor Presentation (May 2016) on 6ix