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Corporate Presentation June 2016
TSXV: CFL
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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TSXV: CFL
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P.O Box 1326 Vernon, BC, V1T 6N6
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:
Company’s rental fleet;
acquisitions and dispositions; and
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.
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
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:
States and globally;
skilled personnel;
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)
(2) Profit is net of depreciation
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ORGANIC GROWTH
Industrial market segment
next generation of technology – solar offerings
COMPLEMENTARY ACQUISITIONS
GENERAL RENTALS INDUSTRIAL
RENTALS LANDSCAPE
LEVERAGE EXISTING PRODUCT OFFERING TO NEW MARKET
STRATEGIC GROWTH OPPORTUNITY OIL AND GAS DRILLING
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As at June 15 , 2016
Shares outstanding (Basic)
P/TBV 0.4x
Share price
TBV/Shr $1.28
52 week high / low
Volume (30 day avg.)
Insider Ownership
Market Capitalization
Artie Kos
Net Debt (Mar 31/16)(1)
Enterprise value (EV)
(1) Net debt is calculated as bank debt + interest bearing obligations – unrestricted cash
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OILFIELD RENTALS
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
7 Generators 400 bbl. Tanks Floc Tanks Full complement of equipment .
Heavy weight drill pipe Drill pipe Drill collars Related handling equipment
Modern, diverse rental fleet Specialty pipe
Replacement Value
Integrated Wellsite System (IWS) Dedicated Geo labs (DGL) Command Centre Engineer / Engineer
Modular accommodations
Accommodations $64M / 58% Surface Rentals $39M / 34% Downhole Equipment $7M / 8%
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Generators Wellsite Accommodations Drill Pipe Pipe Racks Flock Tanks Shale Tanks 400 bbl Tanks Heavy Weight Drill Pipe
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Equipment
OUR CLIENTS
Competitors
Growth Opportunities
service and industrial clients
continues to be strong despite low commodity prices
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35K sq. ft. facility on 6 Acres
* Alberta Finance and Enterprise
Compressors 9% Generators 16% Compaction 10% Heaters 20% Other 45%
400 PLUS ACTIVE CUSTOMERS Major construction contractors Home builders Government and infrastructure 85% REPEAT CUSTOMERS Top 10 customers 1/3 revenue Average relationship 14 yrs. ECONOMIC GROWTH IN ALBERTA Alberta TTM building permits up 18%*
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7 REGIONAL FACILITIES
COMMERCIAL WASTE COLLECTION
GROWTH OPPORTUNITIES
Landfills Cities
Drayton Valley
AB
Calgary Edmonton Camrose Leduc Rose Ridge Aspen Hinton
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($MM)
$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
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
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.
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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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
Ken Olson Chief Financial Officer (780) 410-2998 kolson@cerfcorp.com Austin Fraser, President (780) 410-2998 afraser@cerfcorp.com