Investor Update May 2017
FORWARD-LOOKING INFORMATION & STATEMENTS This presentation contains statements and information that constitute forward-looking statements. These statements relate to future events or to the Company’s future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, levels of activity, performance or achievements to be materially different from future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. The use of the words “expect”, “plan”, “continue”, “estimate”, “anticipate”, “targeting”, “intend”, “could”, “might”, “should”, “believe”, “may”, or “will” and similar expressions are intended to identify forward-looking information or statements. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this presentation. The forward-looking information and statements included in this presentation are not guarantees of future performance and should not be unduly relied upon. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated and described in the forward-looking statements. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward- looking information or statements. These factors include, but are not limited to, such things as the impact of general industry conditions, fluctuation of commodity process, industry competition, availability of qualified personnel and management, stock market volatility and timely and cost effective access to sufficient capital from internal and external sources. The risks outlined above should not be construed as exhaustive. Although management of the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Accordingly, readers should not place undue reliance upon any of the forward-looking information in this presentation. All of the forward looking statements of the Company contained in this presentation are expressly qualified, in their entirety, by this cautionary statement. Except as required by law, the Company disclaims any intention or obligation to update or revise any forward-looking information or statements, whether the results of new information, future events or otherwise. 2
ABOUT STRAD CUSTOMER PRODUCT COUNTRIES (2) GROUPS (1) VERTICALS (2) Upstream Oil & Gas Canada Surface Rentals (Drilling & Completions ) 81% 70% 68% Energy Infrastructure Matting Solutions USA (Pipeline, Power & Other) 30% 19% 32% (1) Percentages based on gross value of rental assets at March 31, 2017 (2) Percentages based on year-to-date revenue at March 31, 2017 3
Q1 2017 RESULTS Q1 2017 RESULTS ($MM) 1Q17 4Q16 3Q16 2Q16 1Q16 Revenue Canadian Operations Total Revenue 27.7 27.3 20.3 9.6 15.3 Drilling activity up 89% EBITDA Acquisitions added assets CAN Ops 4.8 3.4 2.5 (0.5) 1.7 and revenue US Ops 0.2 0.1 (0.3) (1.2) (0.4) Matting utilization strong late Product Sales 0.5 2.6 0.3 0.6 0.1 Q1 2017 Corporate (1.0) (1.3) (1.3) (0.9) (0.9) Total EBITDA 4.5 4.8 1.2 (2.0) 0.4 Pricing pressure EBITDA Margin % U.S. Operations CAN Ops 23% 20% 18% -10% 20% Drilling activity up 56% and US Ops 4% 3% -11% -49% -9% 40%, respectively in Rockies Product Sales 31% 47% 9% 27% 3% and Marcellus Total EBITDA Drilling activity lower in Margin % 18% 6% -21% 3% 16% Bakken Pricing pressure 4
Q1 2017 HIGHLIGHTS Bought Deal Financing Raised $15.0 MM (gross) through issuance of 8.9 MM common shares Funds used to pay down debt and support 2017 capital program Q1 2017 Acquisitions Acquired 3 companies for consideration of $7.3 MM; $2.8 MM cash and the issuance of 2.7 MM common shares Surface rentals and matting Got Mats? acquisition extended reach into Central Canada and furthered expansion into energy infrastructure sector 5
Q1 2017 OUTLOOK Canada Drilling activity and surface equipment utilization will be significantly higher year-over-year Expect modest price increases for surface equipment Matting supply and demand creating improved utilization and stronger price increases USA Drilling activity and utilization to show continued improvement year-over- year Expect modest price increases 6
REVENUE & EBITDA 70.0 250.0 60.0 200.0 Revenue $MM EBITDA $MM 50.0 150.0 40.0 30.0 100.0 20.0 50.0 10.0 0.0 0.0 2012A 2013A 2014A 2015A 2016A 2017 2018 Fcst* Fcst* EBITDA Revenue 2017 2018 2012A 2013A 2014A 2015A 2016A EBITDA Fcst* Fcst* Margin 23% 21% 27% 16% 6% 17% 22% *Average Analyst Estimates 2017 & 2018 7
TOTAL DEBT TOTAL DEBT Sep. 30, 2016 Dec. 31, 2016 Mar. 31, 2017 Total debt $30.2 MM $29.0 MM $19.3 MM BALANCE SHEET AT MARCH 31, 2017 Total Bank $48.5 MM Total Assets $194 MM Facility Debt to 1.8 Total Debt $19.3 MM EBITDA 8
ASSET MIX March 31, 2017 30% 48% Surface equipment Canada Matting US 52% 70% Gross Capital Asset Value: $287 MM 9
THE PLAN AHEAD COST STRUCTURE and BALANCE SHEET $12 MM in permanent SG&A and indirect annual cost reduction Strong balance sheet ENERGY INFRASTRUCTURE Energy Infrastructure accounts for 32% of company revenue through Q1 2017 Small wins on U.S. projects Continue to maintain and grow this customer base SIZE & SCALE Look to deploy capital for acquisitions and growth capex programs Double EBITDA capacity 10
THANK YOU 11
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