Bri-chem Corp. · TSX:BRY
Bri-chem — Investor Presentation (June 2010)
23 slides from Bri-chem's investor presentation, June 2010
Slide 1: Drilling Fluid & Steel Pipe Distribution Company
TSXV: BRY www.brichem.com Drilling Fluid & Steel Pipe Distribution Company Corporate Update June 2010 Don Caron, Chief Executive Officer Jason Theiss, Chief Financial Officer
Slide 2: Safe Harbor
Bri-Chem Corp. Safe Harbor Safe Harbor Certain statements set forth in this presentation are forward looking statements. Although Bri-Chem Corp. management believe their expectations are based on reasonable assumptions, they give no assurance that expected results will be achieved. There are numerou
Slide 3: Highlights Company History
Bri-Chem Corp. Highlights Company History Bri-Chem Goes Public on TSX Venture Exchange – TSXV:BRY Acquire Calgary and Saskatchewan based Millennium Technologies Inc. Completes Acquisition of Alberta and USA based Bri-Chem Steel Corp. Record Sales $111M , EBITDAC $9.7M, Earnings $4.4M & EPS $0.33 Red
Slide 4: Trading and Financial Information
Bri-Chem Corp. Trading and Financial Information Corporate Information Total Shares Outstanding (1) 13,748,286 Shareholder Breakdown Options granted 1,270,000 Warrants granted 350,000 Retail Share Price (2) $1.10 14% Management, 52 Week High/Low $1.15/$0.60 Directors and Insiders 51% Market Capitali
Slide 5: Oil and Gas Fluids Division and Steel Products Division
Bri-Chem Corp. Wholesale Distribution Markets Oil and Gas Fluids Division Steel Products Division Fluid Engineering Master Distributors Companies Oil and Gas Oil and Gas Industrial Construction 5
Slide 6: Operations: Drilling Fluids
Bri-Chem Corp. Operations Drilling Fluids ► Bri-Chem Supply Ltd. ► Distributes and blends over 150 essential fluids and chemicals to the North American drilling sector ► Our customers represent servicing in excess of 50% of the active rig count in the WCSB ► 104% Increase in Q1 Sales ► Drilling Flui
Slide 7: Operations: Steel Products
Bri-Chem Corp. Operations Steel Products Bri-Chem Steel Corporation Wholesale Distributor of steel pipe, tubing and casing, fittings and flanges Sales, head office and main distribution centers located in Leduc, AB Additional distribution centers New Orleans, LA Houston, TX Chicago, IL Also servicin
Slide 8: Strategic Network of Stock Points
Bri-Chem Corp. Strategic Network of Stock Points Distribution Stock Points 1 - High Level, AB Fluids Division has strategic network of 17 warehouses throughout AB, BC, and 2 - Grande Prairie, AB 3 - Slave Lake, AB SK, provide the best industry coverage. 4 - Whitecourt, AB 15 third party owned and op
Slide 9: Solid Customer Base
Bri-Chem Corp. Solid Customer Base Major Customers Fluids Division Steel Products Division Canadian Energy Weatherford Services International ProDrill Fluid Comco Pipe & Supply (Russel Metals) Marquis Alliance Energy Group Apex Distribution Inc. XL Fluid Systems MRC Midfield Trican Well Service Texa
Slide 10: What Drives Sales
Bri-Chem Corp. What Drives Sales Fluid and Steel Divisions Number of active rigs in CAD and USA; 2010 CAODC forecast – 61% increase in Canada (1) Baker Hughes 2010 forecast – 22% increase in USA Number of wells drilled; 2010 PSAC forecast – 36% increase in Canada (2) Baker Hughes 2010 forecast - 25%
Slide 11: Canadian Rig Count to Quarterly Revenue
Bri-Chem Corp. Canadian Rig Count to Quarterly Revenue Drivers for Revenue $50,000 500 Steel Acquisition Q1 Rig Increase YOY– 35% $45,000 Q1 Fluid Sales 450 Increase YOY– 104% $40,000 400 $35,000 350 Average rig count $30,000 300 (000's C$) $25,000 250 $20,000 200 $15,000 150 $10,000 100 $5,000 50 $
Slide 12: Average Fluids Revenue per Active Rig & Wells Drilled
Bri-Chem Corp. Average Fluids Revenue per Active Rig & Wells Drilled Fluids Matrix Three months ended March 31 Forecast 2010 Q2 1010 Q3 2010 Q4 2010 Total Fluids Revenue $ 33,122,072 Average Active Rigs for the quarter 435 Average Revenue per Active Average Rig $ 76,143 CAODC Active Rig Forecast (1)
Slide 13: Q1 2010 Financial Results: Balance Sheet Highlights
Bri-Chem Corp. Q1 2010 Financial Results Q1 2010 Balance Sheet Highlights as at March 31, 2010 Operating line cash available $12 Million Long Term Debt to Equity 42% Net Working Capital $23 Million Working Capital Ratio 1.40 Inventory turns 2.4 Return on Equity 13% 13
Slide 14: Q1 2010 Financial Results
Bri-Chem Corp. Q1 2010 Financial Results Q1 2010 Three months ended March 31 (Unaudited) * 2010 2009 % Change Sales $ 43,965 $ 30,377 45% EBITDAC 4,216 2,443 73% Net Earnings 2,539 860 195% Per Share, Diluted EBITDAC $ 0.30 $ 0.17 76% Net earnings $ 0.18 $ 0.06 200% * All amounts in 000's of CDN dol
Slide 15: Q1 Performance Summary
Bri-Chem Corp. Q1 Performance Summary Financial Performance $4,500 $50,000 $4,000 $45,000 Q1 2010 $3,500 $40,000 EBITDAC to $35,000 Sales – 9.6% $3,000 Revenue(000's) $30,000 $2,500 (000’s) $25,000 $2,000 Q1 2010 $20,000 EBITDAC $1,500 $15,000 Per share – $1,000 $10,000 $0.30 $500 $5,000 $0 $0 Q1 20
Slide 16: Revenue to Employee Count
Bri-Chem Corp. Revenue to Employee Count Highly Scalable Operations 120,000 70 Steel Acquisition Millennium 60 100,000 Acquisition 50 80,000 Employee Count Sales (000's C$) 40 60,000 30 40,000 20 20,000 10 Total - 0 2005 2006 2007 2008 2009 2010 March 31 TTM Revenue Per Fluids sales Steel sales empl
Slide 17: Q1 2010 Sales Breakdown
Bri-Chem Corp. Q1 2010 Sales Breakdown Financial Performance Q1 Consolidated Revenues $44 million Q1 EBITDAC $4.2 million 25% USA 36% $1.6 million 64% $4 million 75% Q1 revenue growth 45% Canada YOY $9.2 million Steel US (4%) 4% Steel CA (21%) 9% Fluids (66%) TTM March 10 Blending (9%) Sales: 91% $1
Slide 18: Growth Strategy
Bri-Chem Corp. Growth Strategy Corporate Fluids Division Increase market share Increase blending opportunities Expand invert fluid capacity and storage 18% of Q1 sales and growing Steel Division New JV for Manufacturing of seamless custom pipe Direct project bids (oilsands) Strategic Partnerships US
Slide 19: Outlook 2010
Bri-Chem Corp. Outlook 2010 Focus on continued Outlook 2010 market penetration Forecasted Increase in 2010 Drilling Activity Drives: Revenue Growth EBITDAC Growth Earnings Growth Evidenced by Record Performance in Q1 2010 19
Slide 20: Investor Awareness Program
Bri-Chem Corp. Investor Awareness Program Liquidity Focus on increasing Regular Canada/US Investor Presentations market cap Increase Retail Investor Holdings 14% to 30% Increase Analyst Coverage 1 to 3 Engage IR Assistance NCIB/ESPP INCREASE LIQUIDITY 20
Slide 21: Thank You
Bri-Chem Corp. TSXV: BRY Thank You www.brichem.com Q1 Presentation Drilling Fluid & Steel Pipe Distribution Company 21
Slide 22: Appendix i - Board of Directors & Management Bios
Bri-Chem Corp. Appendix i - Board of Directors & Management Bios Board of Directors & Management Don Caron President of Western America Capital Inc. – Edmonton Based Private Equity Firm. Chief Executive Founder of International Technologies Inc. which merged to create CCS Income Trust. (1992) (TSX:C
Slide 23: Appendix ii - Historical Review
Bri-Chem Corp. Appendix ii - Historical Review Financial Data Selected Financial Data Periods ended 2010 Q1 2009 Q1 2009 Q2 2009 Q3 2009 Q4 2009 2008 Q1 2008 Q2 2008 Q3 2008 Q4 2008 (000s, except per share data) ($) ($) ($) ($) (2) ($) (2) ($) (2) ($) ($) ($) ($) ($) Operating Results Revenue 43,965