Comfort Systems Usa, Inc. · NYSE:FIX
Comfort Systems Usa — Investor Presentation (February 2018)
21 slides from Comfort Systems Usa's investor presentation, Feb 23, 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 8,700+ employees 36 operating companies Balanced construction & service portfolio
Slide 3: National Footprint
National Footprint 3 36 companies 117 locations in 104 cities 8,700+ employees
Slide 4: Targeted Portfolio Strategy
Targeted Portfolio Strategy 4 2016 2017 New Construction Existing Building Construction Service Projects Service & Maintenance Revenue = $1,787.9M Revenue = $1,634.3M 11% 18% 40% 31% 11% 19% 38% 32%
Slide 5: Market Sectors
Market Sectors 5 2017 Revenue Institutional Industrial Revenue = $1,787.9M
Slide 6: Diverse Project Mix
Diverse Project Mix 6 Average Project Size: $0.5M Average Project Length: 6–9 months (Information as of December 31, 2017) Aggregate Contract Value Jobs <$1M (Value: $529.8M) Jobs $1M–$5M (Value: $828.6M) Jobs >$5M (Value: $1,005.6M) 4,221 368 101 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,50
Slide 7: Book of Business
Book of Business 7 ($ in millions) $76 $75 $83 $89 $104 $111 $116 $0 $100 $200 $300 $400 $500 2011 2012 2013 2014 2015 2016 2017 Service Maintenance Base $630 $618 $604 $758 $712 $763 $948 $0 $200 $400 $600 $800 $1,000 2011 2012 2013 2014 2015 2016 2017 Construction Backlog
Slide 8: Recent Financial Performance
Recent Financial Performance 8 Three Months Ended Twelve Months Ended ($ in millions, except per share information) 12/31/17 12/31/16 12/31/17 12/31/16 Revenue $461.1 $392.1 $1,787.9 $1,634.3 Net Income $7.5 $16.9 $55.3 $64.9 Diluted EPS $0.20 $0.45 $1.47 $1.72 Adjusted EPS (1) $0.45 $0.45 $1.74 $1.
Slide 9: Adjusted EPS/Stock Price History
Adjusted EPS/Stock Price History 9 Adjusted EPS at 12/31* Stock Price at 12/31 *Adjusted EPS is a non-GAAP financial measure. Adjusted EPS excludes goodwill impairments, tax valuation allowances and tax expense related to remeasurement of net deferred tax assets. See Appendix IV for a GAAP reconcili
Slide 10: Historical Financial Summary
Historical Financial Summary ($ 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 IV for a GAAP reconci
Slide 11: Balance Sheet Strength
Balance Sheet Strength $36.5M cash at December 31, 2017 Positive free cash flow for 19 consecutive years Debt capacity $60.5M debt at 12/31/17 $325M revolving credit facility 2021 maturity Debt/TTM EBITDA = 0.4 $24.0M net debt at December 31, 2017 11
Slide 12: Profile for Growth
Profile for Growth 12 Time Earnings Grow Service Innovate Acquire Service Commercial HVAC Grow Construction
Slide 13: Average Discretionary Spending
13 Average Discretionary Spending ($ 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 $50,000 Free Cash Flow Disc Spending
Slide 14: Our Strengths
Our Strengths 14 Industry leading skilled labor Ability to share knowledge Diverse portfolio Strong balance sheet Acquisition record Positioned for growth
Slide 15: Our Strengths
Our Strengths . . Industry leading skilled labor Ability to share knowledge Diverse portfolio Strong balance sheet Acquisition record Positioned for growth SOMESRSUSA.
Slide 16: Appendix I – GAAP Reconciliation to Adjusted EBITDA
Appendix I – GAAP Reconciliation to Adjusted EBITDA 16 Three Months Ended December 31, Twelve Months Ended December 31, ($ in thousands) 2017 2016 2017 2016 Net Income $7,539 $16,867 $55,272 $64,896 Provision for Income Taxes 18,478 9,113 45,666 36,165 Other (Income) Expense, net (992) (642) (1,049)
Slide 17: Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical)
Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical) 17 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 18: Appendix III – Supplemental Non-GAAP Information
Appendix III – Supplemental Non-GAAP Information 18 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 adjustments a
Slide 19: Appendix IV – Supplemental Non-GAAP Information (Historical)
Appendix IV – Supplemental Non-GAAP Information (Historical) 19 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 a
Slide 20: Thank You
Thank You 20 $1.8 Billion $1.8 billion in yearly revenue 117 Locations Operating 36 companies across America at 117 locations in 104 cities 8,700+ of the most qualified HVAC and Mechanical systems personnel in the USA 8,700+ Employees Contact: Bill George Executive Vice President & CFO 1-800-723-843
Slide 21: Thank You
Thank You 8,700+ Employees '8,700¢ of the mest qualified HVAC and Mechanical systems personnelinthe USA 117 Locations ‘Operating 35 companies across America at 117 locationsin 104 ct, $1.8 Billion Contact: Bill George Executive Vice President & CFO 1-800-723-8431 www.comfortsystemsusa.com 0 Systems
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