Concrete Pumping Holdings, Inc. · NASDAQ:BBCP
Concrete Pumping — Investor Presentation (January 2019)
33 slides from Concrete Pumping's investor presentation, Jan 29, 2019
Slide 1: The Leading Concrete Pumping Provider in the U.S. and U.K.
The Leading Concrete Pumping Provider in the U.S. and U.K. NASDAQ: BBCP January 2019 Investor Presentation Important Information This investor presentation (“Investor Presentation”) is for informational purposes only and does not constitute an offer to s ell , a solicitation of an offer to buy, or a
Slide 2: Important Information
Important Information This investor presentation (“Investor Presentation”) is for informational purposes only and does not constitute an offer to s ell , a solicitation of an offer to buy, or a recommendation to purchase any equity, debt or other financial instruments of Concrete Pumping Holdings, I
Slide 3: Concrete Pumping Holdings (CPH) Overview
Concrete Pumping Holdings (CPH) Overview The leading concrete pumping provider in the U.S. and U.K. under Brundage - Bone and Camfaud brands, respectively Eco - Pan is our highly profitable, disruptive waste management service in the U.S.; emerging presence in the U.K. Brundage - Bone has a ~1
Slide 4: Investment Highlights
x Attractive industry dynamics – commercial, environmental & legislative tailwinds x Secular trend towards concrete pumping – faster, safer & higher quality than alternatives x Scale advantages – utilization & costs x Track record of pricing optimization x Short investment paybacks & long - life ass
Slide 5: CPH Geographic Coverage
CPH Geographic Coverage 4 ___________________________________________________________________________________________________________________ Note: Denver is the HQ for CPH, London is the main corporate office in the U.K. First Eco - Pan location in the U.K. expected to o pen Q2 FY 2019. U.S. Footpr
Slide 6: Revenue diversity by region and project size
20% 17% 21% 18% 24% Central Mountain South Southeast West 6% 26% 14% 18% 17% 9% 9% Under $500 $500-1,000 $1,000-1,500 $1,500-2,500 $2,500-5,000 $5,000-10,000 $10,000+ No Project Concentration ____________________________________________________________________________________________________________
Slide 7: Significant Advantages of Concrete Pumping
Significant Advantages of Concrete Pumping Crane & Bucket Wheel - barrow Concrete Placement Methods Tailgating Speed and Efficiency Access / Precision of Placement Safety Consistent Placement Advantages of Concrete Pumping _____________________________________________________________________________
Slide 8: Concrete Pumping Gaining Share
Concrete Pumping Gaining Share (% of total U.S. concrete placement that is pumped) Large, Growing Market Supported by Compelling Tailwinds U.S. Concrete Production (Millions of cubic yards) 396 406 390 404 431 458 457 415 352 259 257 266 290 300 325 336 351 351 '00 '01 '02 '03 '04 '05 '06 '07 '08 '0
Slide 9: Market Leader in U.S. and U.K.
Market Leader in U.S. and U.K. U.S. Market Position (Percent of Concrete Pumping Spend) U.K. Market Position (Percent of Concrete Pumping Spend) 34% 66% ~$140m Others Key Highlights Most competitors serve only local areas and lack breadth of equipment (typical fleet of ~5 - 10 pumps) Few regiona
Slide 10: CPH Competitive Advantages
CPH Competitive Advantages Compelling Customer Value Proposition Increasing Importance to Customers Reliability Track record of quality and on - time completion Wide Range of Equipment Fleet of boom pumps ranges from 17 to 65 meters Also maintains fleet of stationary pumps, placing booms, tele
Slide 11: Key Advantages of Business Model
Key Advantages of Business Model Services provided on a hourly and yardage poured basis, and include invoicing a travel charge Surcharge for any additional costs (such as fuel) High percentage of repeat customers plus strong referral network Simple Bidding Process Pure service business that
Slide 12: Scale advantages: purchasing, services, fleet
Meaningful discount on OEM capex purchases and parts relative to smaller competitors Meaningful discount on fuel purchases by buying wholesale Able to negotiate discount on insurance with a more robust Health, Safety and Environmental program Purchasing Can bid on larger, more complex jobs t
Slide 13: Eco-Pan – A Unique, Disruptive Environmental Solution
Eco - Pan – A Unique, Disruptive Environmental Solution ______________________________________________________________________________ Note: Eco - Pan financial profile reflects historical results and may not be indicative of future returns. 1) EBITDA Margin based on 12 months ending October 31, 201
Slide 14: Proven Management With Significant Ownership Stake
Bruce Young Chief Executive Officer ▪ CEO of CPH: 2008 – Present ▪ CEO of Eco - Pan: 1999 – Present ▪ Manager of Brundage - Bone concrete pumping operations: 2001 – 2008 ▪ 38 years of industry experience ▪ CFO of CPH: 2016 – Present ▪ CFO of Wood Group PSN Americas (LSE:WG): 2013 – 2016 ▪ 20 years o
Slide 15: Framing the CPH Growth Opportunity
4 3 2 Framing the CPH Growth Opportunity 1 Scalable platform that is positioned for continued strong organic and strategic growth Expand Eco - Pan Pursue Acquisitions Capture Greater Market Share Optimize Pricing 14
Slide 16: Eco-Pan – Significant White Space Market Opportunity
15 Eco - Pan – Significant White Space Market Opportunity 1 Eco - Pan U.S. Market Opportunity Total US Market Opportunity $850m+ $24m FY17 Eco - Pan Revenue (Current Penetration of ~3%) $826m+ Large Market for Continued Penetration Washout Method Alternatives Washout Pits Roll - Off No Solution Wash
Slide 17: Proven M&A Platform
Acquirer of Choice: Completed 45+ acquisitions since 1983 (avg. pre - synergy Adjusted EBITDA multiples <4.5x) Benefits of Scale: Track record of increasing Adjusted EBITDA margins of target (~20%) to CPH levels (~35%) within first few years through utilization increases, price optimization and
Slide 18: Capture Greater Market Share – Drivers of Growth
0% 50% 100% 1 2 3 4 5 6 7 8 9 10 Pumping Customers Capture Greater Market Share – Drivers of Growth 3 Drivers of Growth x Favorable market tailwinds – customers posting record backlogs x CPH customers capturing greater share x Increasing project complexity x Ability to charge premium pricing for sup
Slide 19: Capture Greater Market Share – Large Opportunities in U.S. & U.K.
Capture Greater Market Share – Large Opportunities in U.S. & U.K. 18 $77 billion HS2 project Highly concrete intensive, with a very large percentage requiring pumping CPH’s U.K. segment (Camfaud) is well positioned to receive a large share given its national footprint and fleet capabilities
Slide 20: Track Record of Pricing Optimization
Track Record of Pricing Optimization Drivers of Pricing Optimization Faster, Safer & Higher Quality Advantages of concrete pumping ~90 mins Time before ready - mix concrete perishes ~3 mins Approximate time for concrete pumping to empty ready - mix truck ~10% Ready - mix concrete costs (as % of over
Slide 21: Financial Overview
Concrete Pumping Holdings, Inc. Financial Overview
Slide 22: Strong Financial Performance in FY2018
Strong Financial Performance in FY2018 1 21 Concrete Pumping Commentary ▪ Pricing and volume growth across both U.S. and U.K. Concrete Pumping ▪ U.S. Concrete Pumping has benefited from positive construction momentum across all end markets ▪ U.K. Concrete Pumping has continued to grow and take marke
Slide 23: Historical Financial Profile
$12 $19 $13 $21 $17 $11 $10 $7 FY2015 FY2016 FY2017 FY2018 Net Maintenance Growth ______________________________________________________________________________________________________________ Note: CPH has an October fiscal year end. Figures may not sum due to rounding. See Reconciliation of Non -
Slide 24: Variable Cost Base Provides Flexibility Across Business Environments
FY 2017 Approximate Variable Component Cost of Sales: Personnel $63.4 85% Fuel 10.4 95% Parts, repairs & maintenance 21.9 95% Insurance 7.1 70% Other 6.0 80% Total Cost of Sales $108.9 87% % of Revenue 48.9% SG&A Expenses: Personnel $24.5 20% Facilities 3.6 10% Auto 2.1 20% Travel & entertainment 2.
Slide 25: Strong Unit Economics Across Both Concrete Pumping and Eco-Pan
Strong Unit Economics Across Both Concrete Pumping and Eco - Pan 24 _____________________________________________________________________________________________________________________________ ___ ________________________________________________________ Note: Unit economics and return profile refle
Slide 26: Appendices
Concrete Pumping Holdings, Inc. Appendices
Slide 27: Analysis of Shares Outstanding
Analysis of Shares Outstanding 26 _____________________________________________________________________________________________________________________________ ___ ____________________________________________________ 1) CPH Management & Employees (Current and Former) hold i) 2,459,406 "in the money"
Slide 28: Credit Facilities Summary
Credit Facilities - $357m Term Loan Facility - $60m ABL Revolver 1 Interest Rate - Term Loan Facility: Libor + 600bps - ABL Revolver: Libor + 175 - 225bps based on leverage levels Tenor - Term Loan Facility: 7 Years - ABL Revolver: 5 Years Term Loan Amortization - 1.25% per quarter, bullet at maturi
Slide 29: Select CPH Marquee Projects
Select CPH Marquee Projects 28 Broadway Bridge Other Select Concrete Pumping Projects Crossrail Liverpool Street Station Little Rock, AR Massman Construction contract for Broadway Bridge replacement project 2,786 foot - long concrete and steel arch bridge Brundage - Bone laid ~ 1,000 yards o
Slide 30: CPH in Action
CPH in Action 29 Brundage - Bone, Pacific Northwest Highway Project Brundage - Bone, Salt Lake City Airport Terminal Brundage - Bone, Seattle Construction Mat Pour Brundage - Bone, University of Tennessee Brundage - Bone, Westin Denver Airport Brundage - Bone, Concrete Boom Pump Song C
Slide 31: Robust, Specialized Fleet of Mobile Pumping Equipment
Robust, Specialized Fleet of Mobile Pumping Equipment 30 ________________________________________________________________________ Note: Fleet profile as of October 31, 2018. Includes impact of April 2018 O’Brien acquisition. CPH’s Approach to Fleet Management Acquire new equipment to replace equip
Slide 32: Reconciliation of Non-GAAP Measures
Reconciliation of Non - GAAP Measures 31 _____________________________________________________________________________________________________________________________ ___ ______________________________________________________________________________ Note: CPH’s U.K. segment (Camfaud) was acquired in
Slide 33: Corporate Headquarters / Investor Relations
Corporate Headquarters Investor Relations 6461 Downing St. Liolios Group Denver, CO 80229 Cody Slach concretepumpingholdings.com 949 - 574 - 3860 BBCP@Liolios.com
Concrete Pumping Holdings — Investor Presentation (January 2019) on 6ix