Investor Update May 2017 FORWARD-LOOKING INFORMATION & - - PowerPoint PPT Presentation
Investor Update May 2017 FORWARD-LOOKING INFORMATION & - - PowerPoint PPT Presentation
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 Companys future
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
- f 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.
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FORWARD-LOOKING INFORMATION & STATEMENTS
ABOUT STRAD
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PRODUCT GROUPS(1) CUSTOMER VERTICALS(2) COUNTRIES(2) Surface Rentals
70% Energy Infrastructure (Pipeline, Power & Other) 32% Upstream Oil & Gas (Drilling & Completions) 68%
Canada
81%
USA
19%
Matting Solutions
30% (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
($MM) 1Q17 4Q16 3Q16 2Q16 1Q16 Revenue 27.7 27.3 20.3 9.6 15.3 EBITDA CAN Ops 4.8 3.4 2.5 (0.5) 1.7 US Ops 0.2 0.1 (0.3) (1.2) (0.4) Product Sales 0.5 2.6 0.3 0.6 0.1 Corporate (1.0) (1.3) (1.3) (0.9) (0.9) 4.5 4.8 1.2 (2.0) 0.4 EBITDA Margin % CAN Ops 23% 20% 18%
- 10%
20% US Ops 4% 3%
- 11%
- 49%
- 9%
Product Sales 31% 47% 9% 27% 3% Total EBITDA Margin % 16% 18% 6%
- 21%
3% Total Revenue Total EBITDA
Q1 2017 RESULTS
- Canadian Operations
- Drilling activity up 89%
- Acquisitions added assets
and revenue
- Matting utilization strong late
Q1 2017
- Pricing pressure
- U.S. Operations
- Drilling activity up 56% and
40%, respectively in Rockies and Marcellus
- Drilling activity lower in
Bakken
- Pricing pressure
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Q1 2017 RESULTS
Q1 2017 HIGHLIGHTS
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- 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
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
Q1 2017 OUTLOOK
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- Drilling activity and utilization to show continued improvement year-over-
year
- Expect modest price increases
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
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REVENUE & EBITDA
*Average Analyst Estimates 2017 & 2018
EBITDA Margin 2012A 2013A 2014A 2015A 2016A 2017 Fcst* 2018 Fcst* 23% 21% 27% 16% 6% 17% 22% 0.0 50.0 100.0 150.0 200.0 250.0 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 2012A 2013A 2014A 2015A 2016A 2017 Fcst* 2018 Fcst* Revenue $MM EBITDA $MM
EBITDA Revenue
TOTAL DEBT
Total Bank Facility $48.5 MM Total Debt $19.3 MM Total Assets $194 MM Debt to EBITDA 1.8
TOTAL DEBT BALANCE SHEET AT MARCH 31, 2017
- Sep. 30, 2016
- Dec. 31, 2016
- Mar. 31, 2017
Total debt $30.2 MM $29.0 MM $19.3 MM
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ASSET MIX
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March 31, 2017
Gross Capital Asset Value: $287 MM
52% 48%
Canada US
70% 30%
Surface equipment Matting
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THE PLAN AHEAD
COST STRUCTURE and BALANCE SHEET ENERGY INFRASTRUCTURE SIZE & SCALE
$12 MM in permanent SG&A and indirect annual cost reduction Strong balance sheet 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 Look to deploy capital for acquisitions and growth capex programs Double EBITDA capacity
THANK YOU
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