Investor Update January 2017 FORWARD-LOOKING INFORMATION & - - PowerPoint PPT Presentation
Investor Update January 2017 FORWARD-LOOKING INFORMATION & - - PowerPoint PPT Presentation
Investor Update January 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.
2
FORWARD-LOOKING INFORMATION & STATEMENTS
ABOUT STRAD
3
PRODUCT GROUPS CUSTOMER VERTICALS COUNTRIES Surface Rentals
Energy Infrastructure (Pipeline, Power & Other) Upstream Oil & Gas (Drilling & Completions)
Canada USA Matting Solutions
($MM) 3Q16 2Q16 1Q16 4Q15 3Q15 Revenue 20.3 9.6 15.3 22.0 25.3 EBITDA CAN Ops 2.5 (0.5) 1.7 2.7 3.0 US Ops (0.3) (1.2) (0.4) 1.1 1.3 Product Sales 0.3 0.6 0.1 (0.6) 0.3 Corporate (1.3) (0.9) (0.9) (0.7) (0.6) 1.2 (2.0) 0.4 2.5 4.0 EBITDA Margin % CAN Ops 18%
- 10%
20% 22% 22% US Ops
- 11%
- 49%
- 9%
15% 15% Product Sales 9% 27% 3%
- 29%
8% Total EBITDA Margin % 6%
- 21%
3% 11% 16% Total Revenue Total EBITDA
THIRD QUARTER RESULTS
- Canadian Operations
- Matting activity in energy
infrastructure
- Reduced cost structure
- Continued pricing pressure
- U.S. Operations
- Slight increase in drilling
activity
- Price pressure in all markets
- Headcount increase from Q2 2016
- One time costs of $1.2MM
4
Q3 2016 RESULTS
5
REVENUE & EBITDA
*Average Analyst Estimates 2016, 2017 & 2018
EBITDA Margin 2012A 2013A 2014A 2015A 2016 Fcst* 2017 Fcst* 2018 Fcst* 23% 21% 27% 16% 4% 19% 24% 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 2016 Fcst* 2017 Fcst* 2018 Fcst* Revenue $MM EBITDA $MM
EBITDA Revenue
TOTAL DEBT
Total Bank Facility $48.5 MM Total Debt $30.2 MM Total Assets $189 MM Debt to EBITDA 3.2
TOTAL DEBT BALANCE SHEET AT SEPTEMBER 30, 2016
- Mar. 31, 2016
- Jun. 30, 2016
- Sep. 30, 2016
Total debt $14.8 MM $10.2 MM $30.2 MM
6
STRONG BALANCE SHEET
STAYING POWER
- Aggressive cost reduction
– 55% or $24 MM annual reduction in SG&A and indirect costs
- Minimal capital spending
- Reduction in working capital
- Monetizing asset fleet
CUSTOMER BASE
- Diversified regions and resource plays
- Diversified customer verticals
– Energy infrastructure 48% of YTD revenue
7
OIL & GAS
CUSTOMER VERTICALS
- Conventional drilling and completions
- Upstream focused
ENERGY INFRASTRUCTURE
- Pipeline construction and maintenance
- Power transmission construction
- Mining
- Facilities construction and turnarounds
8
ASSET MIX
9
September 30, 2016
Gross Capital Asset Value: $284 MM
47% 30% 10% 12% 2% Surface equipment Matting Drill Pipe Solids Control Ecopond
50% 50% Canada US
REDNECK ACQUISITION
10
Transaction Details
- August 31, 2016 close
- $31.6 MM - $14MM debt assumption and shares
- Redneck Oilfield Services (Fort St. John) and Raptor Oilfield Services
(Grande Prairie) Strategic Rationale
- Montney & Duvernay focus
- Surface Rentals
- Best in class operator
- Share merger
- Accretive to SDY shareholders
11
WELL POSITIONED FOR RECOVERY
NEW COST STRUCTURE ENERGY INFRASTRUCTURE SIZE & SCALE
$24 MM reduction of SG&A and indirect annual cost $12 MM is permanent cost reduction Energy Infrastructure accounts for 48% of company revenue through Q3 Starting to bid on U.S. projects Continue to maintain and grow this customer base Look at acquisitions through downturn Double EBITDA capacity
THANK YOU
12