Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (November 2017)
23 slides from Comfort Systems Usa's investor presentation, Nov 3, 2017
Slide 1: Comfort Systems USA
Comfort Systems USA Quality People. Building Solutions. November 3, 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 • 8,800+ employees • 36 operating companies • Balanced construction & service portfolio 2
Slide 4: National Footprint
National Footprint 36 companies | 109 locations in 98 cities | 8,800+ 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 September 2017 2016 Revenue = $1,326.9M Revenue = $1,634.3M 11% 11% 32% 31% 20% 18% 37% 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 13% Other Education 5% 19% Office Building 13% Government Industrial / 8% Distribution 22% September 2017 YTD Revenue Revenue = $1,326.9M 6
Slide 8: Diverse Project Mix
Diverse Project Mix Number of Projects Aggregate Contract Value 5,000 4,722 4,500 4,000 3,500 23% 3,000 36% 2,500 2,000 1,500 1,000 41% 500 387 101 0 <$1M $1–$5M >$5M Jobs <$1M (Value: $546.7M) Jobs $1M – $5M (Value: $856.8M) Jobs >$5M (Value: $977.0M) 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 $901 $0 2011 2012 2013 2014 2015 2016 Q3 2017 Service Maintenance Base $500 $400 $300 $200 $100 $76 $75 $83 $89 $104 $111 $118 $0 2011 2012 2013 2014 2015 2016 Q3 2017 9
Slide 11: Recent Financial Performance
Recent Financial Performance Three Months Ended Nine Months Ended ($ in millions, except per share information) 9/30/17 9/30/16 9/30/17 9/30/16 Revenue $480.9 $428.8 $1,326.9 $1,242.2 Net Income $22.3 $20.5 $47.7 $48.0 Diluted EPS $0.59 $0.54 $1.27 $1.27 Adjusted EBITDA (1) $44.6 $38.3 $103.3 $95.2
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 • $29.5M cash at September 30, 2017 • Positive free cash flow for 18 consecutive years • Debt capacity – $81.7M debt at 9/30/ 2017 – $325M revolving credit facility – 2021 maturity • Debt/TTM EBITDA = 0.6 • $52.2M net debt at September 30, 2017 13
Slide 15: Profile for Growth
Profile for Growth Service Earnings Time Commercial HVAC 14
Slide 16: Average Discretionary Spending
Average Discretionary Spending ($ 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 8,800+ Employees 8,800+ of the most qualified HVAC and Mechanical systems personnel in the USA 109 Locations Operating 36 companies across America at 109 locations in 98 cities $1.7 Billion $1.7 billion in yearly revenue 17
Slide 19: Appendix
18 Appendix COMFORT SYSTEMS USA
Slide 20: Appendix I – GAAP Reconciliation to Adjusted EBITDA
Appendix I – GAAP Reconciliation to Adjusted EBITDA Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2017 2016 2017 2016 Net Income $22,284 $20,471 $47,733 $48,029 Income Taxes 13,585 11,803 27,188 27,052 Other (Income) Expense, net (10) (80) (57) (455) Changes in th
Slide 21: Appendix II – GAAP Reconciliation to Adjusted EBITDA
Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical) Year Ended December 31, ($ 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 (November 2017) on 6ix