Cervus Equipment — Q3 2020 Earnings Presentation
13 slides from Cervus Equipment's earnings presentation, Nov 5, 2020
Slide 1: Cervus Equipment Q3 2020 Results
CERVUS EQUIPMENT Q3 2020 RESULTS November 5, 2020
Slide 2: Forward Looking Information
Forward Looking Information This presentation contains forward-looking statements within the meaning of applicable securities laws (“forward-looking statements”). These statements include, but are not limited to, statements about the Company’s objectives, strategies and initiatives, financial perfor
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains certain financial measures that do not have any standardized meaning prescribed by IFRS. Therefore, these financial measures may not be comparable to similar measures presented by other issuers, and are defined and reconciled to their most direc
Slide 4: Cervus Q3 2020 Results
Cervus Q3 2020 Results Adjusted NIBT Increased $15 Million, Driven By 33% Increase In Gross Profit Q3 2020 Overview • Total revenue up 12%, comprised of a 17% increase in Agriculture and 6% increase in Transportation • Industrial revenue down 21% due to COVID-19 • Agriculture product support revenue
Slide 5: Balance Sheet Overview
Balance Sheet Overview Strong Balance Sheet with $158 million of Financing Available Total Inventory 400 375 • Overall inventory decreased $115 350 320 million from Q3 2019, comprised of 300 260 a $95 million decrease in 250 $ Millions 200 Agriculture and a $20 million 150 decrease in Transportation
Slide 6: Adjusted Free Cash Flow
Adjusted Free Cash Flow Adjusted Free Cash Flow of $56 Million for the Trailing Twelve Months Ended September 30, 2020 Adjusted Free Cash Flow - TTM 60 56 50 39 38 38 40 $ Millions 30 21 20 10 0 2016 2017 2018 2019 Q3 2020 TTM Adjusted Free Cash Flow is a non-GAAP financial measure, defined as cash
Slide 7: Q3 2020 Strategic Performance: Absorption Percentage
Q3 2020 Strategic Performance Agriculture Product Support Growth and Cost Efficiencies Drive Improved Absorption Q3 YTD Absorption Percentage 105% 102% 102% 101% 100% 100% Absorption Percentage 95% 94% 71.0 61.2 90% 87% 85% 27.2 80% 25.2 75% Agriculture Transportation Industrial Parts Revenue Servic
Slide 8: Used Agriculture Inventory Turns
Inventory Turns Support Improved ROIC Above Long-Term Objective Long-Term Inventory Turn $200 Agriculture Used Inventory Objective 2.78 3.0 $180 $181 2.5 $160 $162 $159 $161 $156 2.31 2.07 $148 1.89 $140 1.96 $145 Used Agriculture Inventory 2.0 1.78 Inventory Turnover $120 $126 1.65 $126 $123 $ Mill
Slide 9: Canada Regional Crop Conditions
Canada Regional Crop Conditions Early Harvest and Above Average Quality Crops Improve Farmer Sentiment Harvest Status in Canada1,2 100% 90% 89% Crop Crop 90% 79% Region Yield Quality 80% 71% % Harvest Complete 70% Southern Above Above 60% 47% Alberta(1) Average Average 50% 40% North/Central Above Ab
Slide 10: Industry Outlook: Agriculture
Industry Outlook Agriculture Producers Remain Cautious due to Trade and Economic Uncertainty Agriculture Canada • Farmer sentiment has improved on the completion of successful harvest, supported by improved crop prices. • Customers remain cautious in managing their costs and cash flow due to continu
Slide 11: Industry Outlook: Transportation and Industrial
Industry Outlook Transportation and Industrial Continue to be Impacted by COVID-19 Transportation • Economic recovery in Ontario’s key industries is expected to be delayed by disruptions in consumer activity, and constraints in supply chain and global demand related to COVID-19. • This decrease in e
Slide 12: Cervus Equipment Q3 2020 Q&A
CERVUS EQUIPMENT Q3 2020 Q&A November 5, 2020 12
Slide 13: Thank You
facebook.com/cervusequipment twitter.com/cervusequipment THANK YOU linkedin.com/company/cervus-equipment instagram.com/cervusequipment 13