Divestco — Investor Presentation (September 2006)
21 slides from Divestco's investor presentation, September 2006
Slide 1: Divestco Inc. Investor Relations Presentation
Divestco Inc. Investor Relations Presentation September 2006 Software · Data · Services · Consulting
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements, including statements regarding the business and anticipated financial performance of Divestco Inc. “(the Company”). These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause t
Slide 3: Company Snapshot
Company Snapshot Stock Symbol : DVT (TSX) Shares Outstanding1: 38,000,000 Insider Ownership: >30% Employees: 520 52 Week High/Low: $7.00/2.40 Current Share Price: $4.40 Current Market Cap1: $167,200,000 Enterprise Value1,2: $175,300,000 1) Diluted 2) Market Capitalization + Funded Debt - Cash Calgar
Slide 4: Officers & Directors
Officers & Directors Stephen Popadynetz - CEO & Director Roderick Chisholm - Chief Financial Officer Terry Barnhart - President John Brussa - Chairman (2) Wade Brillon - Director Brent Gough - Director(1)(2)(3) M. Scott Ratushny - Director(1)(3) Edward L. Molnar - Director (1)(2) 1) Member of Audit
Slide 5: Sample Customer Profile
Sample Customer Profile 5 TSX:DVT
Slide 6: Competitive Advantage
Competitive Advantage • Software • Services • Data • Consulting Divestco is an aggressive acquisition minded company that offers superior software, services and data to the oil and gas industry. By implementing a strategy of integration between our offerings, we are creating a unparalleled set of bu
Slide 7: 2005 Operational Highlights
2005 Operational Highlights • Completed 5 Corporate Acquisitions • Successfully raised $10 million in gross proceeds from a brokered private placement • Successfully secured $10 million in committed long-term debt financing • Acquired an additional 6,000 gross kilometers of 2D and close to 1,500 gro
Slide 8: Growth Through Acquisition 2006 - Geo-X Processing
Growth Through Acquisition 2006 Acquired Geo-X Processing for $12.7MM on May 1, 2006 • Provides full-range high resolution, onshore 2D & 3D seismic data processing services • Approx. 25% market share in Western Canada • Adds a suite of proprietary algorithms to interpret seismic data • Provides natu
Slide 9: Growth Through Acquisition 2006 - Cavalier Land
Growth Through Acquisition 2006 Acquired Cavalier Land for $7.5MM on July 18, 2006 • Provides acquisition of surface , freehold mineral and crown acquisition services • Approx. 15-20% market share in Western Canada • Proven track record of growth with CAGR of 23% since inception in 1993 • Provides n
Slide 10: Seismic Data Growth: 05/06
Seismic Data Growth: 05/06 Approx. $69.0MM In Seismic to be Acquired Tremblay 3D Upper Cutbank 3D 360 Square Km’s 312 Square Km’s Kamisak Lake 3D 120 Square Km’s Lockhorn 3D 410 Square Km’s Red Willow East 3D 215 Square Km’s Calahoo Lake 3D Red Willow North 3D 113 Square Km’s 102 Square Km’s 10 TSX:
Slide 11: Seismic Data Growth: 06/07
Seismic Data Growth: 06/07 >$100M in potential Seismic Programs in AB & BC SUNRISE 600 Square Km’s Coldstream Upper Cutbank North 175 Square Km’s 285 Square Km’s EXISTING DATA 06/07 DATA SHOOTS Hourglass West 420 Square Km’s TWIN LAKES 378 Square Km’s Hourglass East 332 Square Km’s Windsor/Wapiti Wa
Slide 12: Seismic Data Growth: 06/07 Zonal Ownership
Seismic Data Growth: 06/07 Different Zonal Ownership (Crown – Blue) Burlington Lands EnCana Lands (Yellow) (Yellow) 12 TSX:DVT
Slide 13: Seismic Data Growth
Seismic Data Growth Upon completion of our 06/07 seismic acquisition programs, Divestco expects to1: • Own/control > 60,000 Km’s of 2D Data • Own/control > 10,000 Square Km’s of 3D Data • Been involved in approximately $300MM of shot and purchased seismic since 2003 • Be the largest acquirer of seis
Slide 14: Financial Highlights by Quarter
Financial Highlights by Quarter 20 18 16 Revenue 14 12 $ Millions EBITDA 10 8 6 Net Income 4 2 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2003 2004 2005 2006 14 TSX:DVT
Slide 15: Financial Highlights by Year
Financial Highlights By Year 100 90 80 Revenue 70 $ Millions 60 EBITDA 50 Net Income 40 30 20 10 0 2002 2003 2004 2005 2006F 15 TSX:DVT
Slide 16: Sources of Revenue
Sources of Revenue Forecast 2006: $95 - 100M 10% 25% 10% 55% Services Data Software Consulting 16 TSX:DVT
Slide 17: 2006 Guidance
2006 GUIDANCE • Gross Revenue of $95-100 million • EBITDA of $45-50 million ($1.32-$1.47 Diluted Share1) • Net Income of $14-17 million ($0.41- $0.50 Diluted Share1) 1) based on estimated 34,000,000 weighted average diluted shares 17 TSX:DVT
Slide 18: Share Price Performance and Trading Volume
Share Price Performance $7.50 1,400,000 $6.50 1,200,000 $5.50 1,000,000 Trading Volume Share Price $4.50 800,000 $3.50 600,000 $2.50 400,000 $1.50 200,000 $0.50 0 29-Nov-04 10-May-05 19-Oct-05 30-Mar-06 8-Sep-06 Provided by Blackmont Capital Inc. 18 TSX:DVT
Slide 19: Relative Performance Total Return
Relative Performance Total Return Comparison 350% (July 4, 2005 - September 11, 2006) 300% 250% 200% Total Return 183% 150% 100% 50% 17% 0% 15% -50% 4-Jul-05 20-Oct-05 5-Feb-06 24-May-06 9-Sep-06 DVT S&P/TSX Composite Index S&P/TSX Energy Index 19 TSX:DVT
Slide 20: Peer Comparison
Peer Comparison1 Enterprise P/E P / CF EV / EBITDA EV / Revenue Value(2) Ticker (C$MM) LTM 2006E(3) LTM 2006E(3) LTM 2006E(3) LTM 2006E (3) CGG-Veritas(4) GGY.N $ 5,870.4 18.5x N/A 9.6x N/A 16.3x N/A 2.7x N/A IHS Inc.(4) IHS.N $ 1,569.0 36.4x 25.4x 24.5x N/A 15.7x 15.6x 3.1x 2.9x Pason Systems Inc.
Slide 21: Questions?
Questions? Thank you for your interest For further information, please contact: Stephen Popadynetz, CEO 403.218.6466, stephen@divestco.com Roderick Chisholm, CFO 403.218.6450, rod.chisholm@divestco.com investor.relations@divestco.com 21 TSX:DVT