Comfort Systems USA, Inc. · NYSE:FIX
Comfort Systems USA — Investor Presentation (May 2017)
23 slides from Comfort Systems USA's investor presentation, May 2, 2017
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. The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” or other sim
Slide 2: Comfort Systems USA
Comfort Systems USA 2 Leading mid-market HVAC and mechanical systems installation and service provider $1.6B yearly revenue 8,500 employees 36 operating companies Balanced construction & service portfolio
Slide 3: National Footprint
National Footprint 3 36 companies 102 locations in 95 cities 8,500 employees
Slide 4: Our Markets
Our Markets 4 Light Commercial Commercial Residential Light Industrial Industrial Heavy Industrial Heavy Commercial Every Building You See Needs What We Do
Slide 5: Targeted Portfolio Strategy
Targeted Portfolio Strategy 5 Light commercial to heavy commercial Continue to grow construction Leverage existing construction capabilities into retrofit market Access to new customers through service Industrial and manufacturing Revenue by Activity
Slide 6: Market Sectors
Market Sectors 6 March 2017 YTD Revenue Institutional Industrial
Slide 7: Diverse Project Mix
Diverse Project Mix 7 Average Project Size: $0.5M Average Project Length: 6–9 months (Information as of March 31, 2017) Aggregate Contract Value Jobs <$1M (Value: $451.7M) Jobs $1M–$5M (Value: $799.1M) Jobs >$5M (Value: $871.7M) 3,630 351 92 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 <$1M $1 –
Slide 8: Lifecycle Product Portfolio
Lifecycle Product Portfolio 8 5+ million nonresidential buildings Building solutions a necessity Diverse revenue streams throughout lifecycle 10 - 20 year replacement cycle Recurring service Increasing technical content Essential to energy efficiency
Slide 9: Book of Business
Book of Business 9 ($ in millions) $76 $75 $83 $89 $104 $111 $113 $0 $100 $200 $300 $400 $500 2011 2012 2013 2014 2015 2016 Q1 2017 Service Maintenance Base $630 $618 $604 $758 $712 $763 $863 $0 $200 $400 $600 $800 $1,000 2011 2012 2013 2014 2015 2016 Q1 2017 Construction Backlog
Slide 10: Recent Financial Performance
Recent Financial Performance 10 (1)Adjusted EBITDA is a non-GAAP financial measure. See Appendix I for a GAAP reconciliation to Adjusted EBITDA. Three Months Ended ($ in millions, except per share information) 3/31/17 3/31/16 Revenue $380.6 $385.9 Net Income $7.5 $9.8 Diluted EPS $0.20 $0.26 Adjuste
Slide 11: Adjusted EPS/Stock Price History
Adjusted EPS/Stock Price History 11 Adjusted EPS at 12/31* Stock Price at 12/31 *Adjusted EPS is a non-GAAP financial measure. Adjusted EPS excludes goodwill impairments, changes in the fair value of contingent earn-out obligations and tax valuation allowances. See Appendix III for a GAAP reconcilia
Slide 12: Historical Financial Summary
Historical Financial Summary ($ in millions, except per share information) 12 (1) Adjusted EPS is a non-GAAP financial measure. Adjusted EPS excludes goodwill impairments, changes in the fair value of contingent earn-out obligations and tax valuation allowances. See Appendix III for a GAAP reconcili
Slide 13: Balance Sheet Strength
Balance Sheet Strength $31.4M cash at March 31, 2017 Positive free cash flow for 18 consecutive years Debt capacity $2.0M debt at 3/31/2017 $325M revolving credit facility 2021 maturity 13
Slide 14: Profile for Growth
Profile for Growth 14 Time Earnings Grow Service Innovate Acquire Service Commercial HVAC Grow Construction
Slide 15: Average Discretionary Spending
15 Average Discretionary Spending ($ in thousands) $24,455 60% $8,691 21% $7,699 19% Average 2006 - 2016 Acquisitions Share Repurchases Dividends $40,845 $43,071 $- $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 16: Our Strengths
Our Strengths 16 Industry leading skilled labor Ability to share knowledge Diverse portfolio Strong balance sheet Acquisition record Positioned for growth
Slide 17: Thank You
Thank You 17 $1.6 Billion $1.6 billion in yearly revenue 102 Locations Operating 36 companies across America at 102 locations in 95 cities Approx. 8,500 of the most qualified HVAC and Mechanical systems personnel in the USA 8,500 Employees
Slide 18: Thank You
Thank You 6 Bill $1.6bilion in yearly revenue » Systems UDA.
Slide 19: Appendix I – GAAP Reconciliation to Adjusted EBITDA
Appendix I – GAAP Reconciliation to Adjusted EBITDA 19 Note: The Company defines adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) as net income (loss), excluding discontinued operations, income taxes, other (income) expense, net, changes in the fair value o
Slide 20: Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical)
Appendix II – GAAP Reconciliation to Adjusted EBITDA (Historical) 20 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, income taxes, other
Slide 21: Appendix III – Supplemental Non-GAAP Information (Historical)
Appendix III – Supplemental Non-GAAP Information (Historical) 21 Note 1: Operating results from continuing operations attributable to Comfort Systems USA, Inc., excluding goodwill impairment, changes in the fair value of contingent earn-out obligations, tax valuation allowances and out of period adj
Slide 22: Contact
Contact Bill George Executive Vice President and CFO 1-800-723-8431 [email protected] www.comfortsystemsusa.com 22
Slide 23: Contact
Contact Bill George Executive Vice President and CFO 1-800-723-8431 [email protected] www.comfortsystemsusa.com SOMFORT LJ 2 SYSTEMS /
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