Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (May 2018)
19 slides from Comfort Systems Usa's investor presentation, May 2, 2018
Slide 1: 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 2: Comfort Systems USA
Comfort Systems USA 2 Leading mid-market HVAC and mechanical systems installation and service provider $1.8B yearly revenue 8,800+ employees 36 operating companies Balanced construction & service portfolio
Slide 3: National Footprint
National Footprint 3 36 companies 118 locations in 105 cities 8,800+ employees
Slide 4: Targeted Portfolio Strategy
Targeted Portfolio Strategy 4 FY 2017 YTD March 2018 New Construction Existing Building Construction Service Projects Service Calls, Maintenance & Monitoring Revenue = $464.9M Revenue = $1,787.9M 11% 19% 38% 32% 9% 19% 39% 33%
Slide 5: Market Sectors
Market Sectors 5 YTD March 2018 Revenue Institutional Industrial Revenue = $464.9M
Slide 6: Diverse Project Mix
Diverse Project Mix 6 Average Project Size: $0.6 M Average Project Length: 6–9 months (Information as of March 31, 2018) 3,919 397 103 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 <$1M $1 – $5M >$5M Number of Projects
Slide 7: Book of Business
Book of Business 7 ($ in millions) $76 $75 $83 $89 $104 $111 $116 $116 $0 $25 $50 $75 $100 $125 $150 $175 $200 2011 2012 2013 2014 2015 2016 2017 Q1 2018 Service Maintenance Base $630 $618 $604 $758 $712 $763 $948 $1,079 $0 $200 $400 $600 $800 $1,000 $1,200 2011 2012 2013 2014 2015 2016 2017 Q1 2018
Slide 8: Recent Financial Performance
Recent Financial Performance 8 Three Months Ended ($ in millions, except per share information) 3/31/18 3/31/17 Revenue $464.9 $380.6 Net Income $16.7 $7.5 Diluted EPS $0.44 $0.20 Adjusted EBITDA (1) $28.3 $18.8 Operating Cash Flow $3.9 $10.1 (1) Adjusted EBITDA is a non-GAAP financial measure. See
Slide 9: Adjusted EPS/Stock Price History
Adjusted EPS/Stock Price History 9 Adjusted EPS at 12/31* Stock Price at 12/31 *Adjusted EPS is a non-GAAP financial measure. Adjusted EPS excludes goodwill impairments, tax valuation allowances and tax expense related to remeasurement of net deferred tax assets. See Appendix III for a GAAP reconcil
Slide 10: Historical Financial Summary
Historical Financial Summary ($ in millions, except per share information) 10 (1) Adjusted EPS is a non-GAAP financial measure. Adjusted EPS excludes goodwill impairments, tax valuation allowances and tax expense related to remeasurement of net deferred tax assets. See Appendix III for a GAAP reconc
Slide 11: Balance Sheet Strength
Balance Sheet Strength $25.2M cash at March 31, 2018 Positive free cash flow for 19 consecutive years Debt capacity $66.0M debt at 3/31/18 $400M revolving credit facility 2023 maturity Debt/TTM EBITDA = 0.5 $40.8M net debt at March 31, 2018 11
Slide 12: Profile for Growth
Profile for Growth 12 Time Earnings Grow Service Innovate Acquire Service Commercial HVAC Grow Construction
Slide 13: Average Discretionary Spending
13 Average Discretionary Spending ($ in thousands) $30,322 64% $8,717 19% $7,973 17% Average 2006 - 2017 Acquisitions Share Repurchases Dividends $47,012 $46,147 $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 Free Cash Flow Disc Spending
Slide 14: Our Strengths
Our Strengths 14 Industry leading skilled labor Ability to share knowledge Diverse portfolio Strong balance sheet Acquisition record Positioned for growth
Slide 15: Appendix I – GAAP Reconciliation to Adjusted EBITDA
Appendix I – GAAP Reconciliation to Adjusted EBITDA 15 Three Months Ended March 31, ($ in thousands) 2018 2017 Net Income $16,659 $7,477 Provision for Income Taxes 2,074 3,892 Other (Income) Expense, net (38) (18) Changes in the Fair Value of Contingent Earn-out Obligations (153) 26 Interest (Income
Slide 16: Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical)
Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical) 16 Note: The Company defines adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) as net income (loss) including non-controlling interests, excluding discontinued operations, provision for income
Slide 17: Appendix III – Supplemental Non-GAAP Information (Historical)
Appendix III – Supplemental Non-GAAP Information (Historical) 17 Note 1: Operating results from continuing operations attributable to Comfort Systems USA, Inc., excluding goodwill impairment, tax valuation allowances, tax expense related to remeasurement of net deferred tax assets and out of period
Slide 18: Thank You
Thank You 18 $1.8 Billion $1.8 billion in yearly revenue 118 Locations 36 operating companies across America at 118 locations in 105 cities 8,800+ of the most qualified HVAC and Mechanical systems personnel in the USA 8,800+ Employees Contact: Bill George Executive Vice President & CFO 1-800-723-843
Slide 19: Thank You
Thank You 8,800+ Employees ‘8800+ of the mest qualified HVAC and Mechanical systems personnelinthe USA 118 Locations 36 operating companies across America at 118 locationsin 105 cities $1.8 Billion $1.8 bilion in yearly revenue Contact: Bill George Executive Vice President & CFO 1-800-723-8431 www.c
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