Corporate Presentation June 2016 TSXV: CFL 1 Forward Looking - - PowerPoint PPT Presentation

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Corporate Presentation June 2016 TSXV: CFL 1 Forward Looking - - PowerPoint PPT Presentation

Corporate Presentation June 2016 TSXV: CFL 1 Forward Looking Statements or expectations upon which they are based will Certain information with respect to Canadian The Company cannot can guarantee future results, Equipment Rentals Corp (the


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Corporate Presentation June 2016

TSXV: CFL

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P.O Box 1326 Vernon, BC, V1T 6N6

  • r expectations upon which they are based will
  • ccur. By its nature, forward-looking information

involves numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward looking statements will not occur. Forward-looking statements and information in this presentation herein include, but are not limited to, statements with respect to:

  • results of various projects of the Company;
  • growth expectations within the Company;
  • the performance and characteristics of the

Company’s rental fleet;

  • capital expenditure programs;
  • realization of the anticipated benefits of

acquisitions and dispositions; and

  • pro forma estimates for 2015 based on analyst

consensus. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct.

Forward Looking Statements

Certain information with respect to Canadian Equipment Rentals Corp (the “Company”) in this presentation herein contain certain forward-looking statements and forward looking information which are based upon the Company’s current internal expectations, estimates, projections, assumptions and beliefs. In some cases, words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and

  • ther similar words, or statements that certain

events or conditions “may” or “will” occur, are intended to identify forward-looking statements and forward-looking information. These statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in the forward-looking statements or information. In addition, this presentation may contain forward- looking statements and information attributed to third party industry sources. Undue reliance should not be placed on these forward-looking statements, as there can be no assurance that the plans, intentions The Company cannot can guarantee future results, levels of activity, performance or achievements. Consequently, there is no representation by the Company that actual results achieved will be the same in whole or in part as those set out in the forward- looking statements and information. Some of the risks and other factors, some of which are beyond the Company’s control, which could cause results to differ materially from those expressed in the forward-looking statements and information contained in this presentation herein include, but are not limited to:

  • general economic conditions in Canada, the United

States and globally;

  • failure to realize anticipated benefits of acquisitions;
  • stock market volatility and market valuations;
  • competition for, among other things, capital and

skilled personnel;

  • the availability of capital on acceptable terms; and
  • the need to obtain required approvals from

regulatory authorities; Readers are cautioned that the foregoing list of factors is not exhaustive.

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(1) Division profit shown here does not include $4.6 mm in unallocated corporate fees

TTM Mar 31, 2016

(1)(2)

TTM Mar 31, 2016

(1)

TTM Mar 31, 2016

(1)

Energy Services General Rentals Waste Management

(2) Profit is net of depreciation

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Corporate Strategy

ORGANIC GROWTH

  • Leverage existing equipment portfolio into

Industrial market segment

  • Continue to update equipment fleet with the

next generation of technology – solar offerings

COMPLEMENTARY ACQUISITIONS

  • Two accretive acquisitions in 2016
  • Balanced cash and shares
  • Target - high margin / low head count

GENERAL RENTALS INDUSTRIAL

RENTALS LANDSCAPE

  • Heaters
  • Generators
  • Compaction
  • Other Equipment
  • Accommodations
  • Surface Rentals
  • Power Generation
  • Down Hole Equipment

LEVERAGE EXISTING PRODUCT OFFERING TO NEW MARKET

  • Generators
  • Light Towers
  • Bins
  • Other Equipment

STRATEGIC GROWTH OPPORTUNITY OIL AND GAS DRILLING

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Financial Snapshot

As at June 15 , 2016

Trading Symbol TSX-V

CFL Financial Highlights

Shares outstanding (Basic)

41.1 mm

P/TBV 0.4x

Share price

$0.47

TBV/Shr $1.28

52 week high / low

$2.15 / $0.34

Volume (30 day avg.)

48,916

Insider Ownership

Market Capitalization

$19.3 mm

Artie Kos

20%

Net Debt (Mar 31/16)(1)

$50.4 mm

Enterprise value (EV)

$69.7 mm

(1) Net debt is calculated as bank debt + interest bearing obligations – unrestricted cash

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Energy Services

Division

OILFIELD RENTALS

  • Accommodations
  • Down Hole Equipment
  • Surface Rentals
  • Power Generation

Zedcor Energy Services is a leading supplier of oilfield rental equipment and modular accommodation to the Alberta, British Columbia, and Saskatchewan oil and gas, forestry and mining industries.

Customers COMPETITORS

  • Black Diamond
  • Enterprise
  • Western One
  • Strad
  • Essential
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7 Generators 400 bbl. Tanks Floc Tanks Full complement of equipment .

Surface Rentals

Heavy weight drill pipe Drill pipe Drill collars Related handling equipment

Downhole Equipment

Modern, diverse rental fleet Specialty pipe

$110M

Replacement Value

Integrated Wellsite System (IWS) Dedicated Geo labs (DGL) Command Centre Engineer / Engineer

Accommodations

Modular accommodations

Accommodations $64M / 58% Surface Rentals $39M / 34% Downhole Equipment $7M / 8%

Energy Services Overview

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Putting it Together

Generators Wellsite Accommodations Drill Pipe Pipe Racks Flock Tanks Shale Tanks 400 bbl Tanks Heavy Weight Drill Pipe

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Equipment

  • Heaters
  • Generators
  • Compaction
  • Other Equipment

OUR CLIENTS

Competitors

  • Hertz
  • United Rentals
  • Sun Belt

Growth Opportunities

  • Organically grown since 1998
  • Realize synergies with energy

service and industrial clients

  • Plant & Pipeline construction

continues to be strong despite low commodity prices

General Rentals

Division

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35K sq. ft. facility on 6 Acres

General Rentals

Equipment to Facilitate Commercial Construction Projects

* Alberta Finance and Enterprise

Compressors 9% Generators 16% Compaction 10% Heaters 20% Other 45%

400 PLUS ACTIVE CUSTOMERS Major construction contractors Home builders Government and infrastructure 85% REPEAT CUSTOMERS Top 10 customers 1/3 revenue Average relationship 14 yrs. ECONOMIC GROWTH IN ALBERTA Alberta TTM building permits up 18%*

  • Est. 2% population growth through 2038

10

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7 REGIONAL FACILITIES

  • 5 Government
  • 2 Government transfer stations
  • Long term contracts

COMMERCIAL WASTE COLLECTION

  • Roll-off bin and collections services

GROWTH OPPORTUNITIES

  • Provide additional services for existing facilities
  • Expand sales team to drive contaminated soils to landfills
  • Expand collection services into industrial and oilfield markets

Landfills Cities

Drayton Valley

AB

Calgary Edmonton Camrose Leduc Rose Ridge Aspen Hinton

Waste Management

Division

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($MM)

Financial Performance

$15 $27 $34 $47 $58 $46

$5 $8 $8 $13 $19 $10

$0 $10 $20 $30 $40 $50 $60 2010 2011 2012 2013 2014 2015 REVENUE EBITDA

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9 12 24 15 29 30.5

0.5 1 1.5 2 2.5 3 3.5 $0 $5 $10 $15 $20 $25 $30 $35 2010 2011 2012 2013 2014 2015

Net Debt Net Debt/ EBITDA

Balance Sheet

Liabilities Net Debt(1) / EBITDA(2) Dec 31, 2015 Dec 31, 2014

Working capital

$8,514 $10,060

Long-term debt (MM)

$30.5 $29.5

(1) bank debt + financial leases (2) Adjusted EBITDA plus stock based comp, acquisition expenses + non recurring expenses

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Management and Board of Directors

Management

Joined

Artie T. Kos Chairman and CEO

2015 Chairman and Chief Executive Officer

Austin Fraser

President 2014 Former President of Winalta Inc.

Ken Olson

CFO 2016 23 years of experience with both private and publicly- traded companies

Todd Ziniuk Acting COO

2016 15 years of direct experience in the oilfield rentals and logistics industry

Directors

Joined

Artie T. Kos

Chairman and CEO 2015 Chairman and Chief Executive Officer.

  • J. Blair Goertzen

Director 2014 President and CEO of Enerflex Ltd.

Bill Guinan

Director 2005 Partner of BLG LLP

David Maplethorpe

Director 2011 Former CEO of MCL

Brad R. Munro

Director 2014 President and CEO of Bittercreek Capital Corp.

Ken Stephens

Director 2005 Former CFO of CERF Incorporated (Retired)

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Why Canadian Equipment Rentals Corp.

Compelling organic growth opportunity in Alberta’s diversified energy services, general rentals, and waste management sectors Disciplined acquisition strategy Diversification through full equipment rental spectrum. History of returning excess cash flow to shareholders through reasonable dividend

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Contact Us

TSX-V: CFL

Ken Olson Chief Financial Officer (780) 410-2998 kolson@cerfcorp.com Austin Fraser, President (780) 410-2998 afraser@cerfcorp.com