North American Construction Group Ltd. · TSX:NOA
North American Construction — Q2 2020 Earnings Presentation
19 slides from North American Construction's earnings presentation, Jul 31, 2020
Slide 1: Corporate Presentation: 2020 Q2 Results
CORPORATE PRESENTATION - 2020 Q2 RESULTS July 30, 2020
Slide 2: Everyone Gets Home Safe
EVERYONE GETS HOME SAFE Health, Safety and Environment are integral to our business COVID-19 pandemic reinforced culture and conviction of keeping employees safe Execution of safe work practices matters above all else Strict quarantine & isolation protocols remain in place for at-risk personne
Slide 3: Business Update
BUSINESS UPDATE Q2 was an opportunity to demonstrate resilience and customer alliance Customer-first mentality, safe and low-cost operations Efficient demobilization and subsequent mobilization June start of Texas mine contract despite pandemic challenges July suggests business returning t
Slide 4: Operational Plan for 2020
OPERATIONAL PLAN FOR 2020 In response to the impact that COVID-19 has had on our customers & operations, we will maintain six priorities for 2020 1. Urgent attention paid to hygiene and physical distancing; uphold zero harm safety culture 2. Deploy & maximize utilization of available heavy equipment
Slide 5: Adjusted EBITDA and EPS
ADJUSTED EBITDA1 AND EPS (figures in millio ns o f Canadian do llars, except per share amo unts) Q2 2020 Q2 2019 Q2 2020 YTD Q2 2019 YTD Revenue $71 $177 $270 $363 1 Gross profit 21 29.8% 23 13.3% 56 20.4% 53 14.6% 2 General & administrative expenses 3 4.9% 6 3.4% 12 4.5% 15 4.1% Net income and comp
Slide 6: Canada Emergency Wage Subsidy
CANADA EMERGENCY WAGE SUBSIDY Effective CEWS1 program has allowed for retention of employees through immediate impacts of the pandemic Program is supporting the re-hire of workers, minimizing job losses and better positioning us to resume normal operations Additional measures to maintain headcou
Slide 7: Cash Provided by Operating Activities
CASH PROVIDED BY OPERATING ACTIVITIES (figures in millio ns o f Canadian do llars unless o therwise stated) Q2 2020 Q2 2019 Q2 2020 YTD Q2 2019 YTD 1 Cash provided by operations prior to change in working capital $25) $30) $79) $75) Net changes in non-cash working capital 9) 3) 4) 6) Cash provided b
Slide 8: Balance Sheet
BALANCE SHEET (figures in millions o f Canadian do llars unless otherwise stated) June 30, 2020 March 31, 2020 December 31, 2019 Cash $41 $39 $6 1 Liquidity 135 108 115 Property, plant & equipment 629 617 588 Total assets 816 837 793 1,2,3 Senior debt $363 2.1x $362 2.0x $296 1.7x 1,2 Net debt 398 2
Slide 9: Returns on Capital & Equity
RETURNS ON CAPITAL & EQUITY Return on Invested Capital1 – upward trend is currently at 10.2% Consistent invested capital1 of $632 million based on steady net assets in Q2 Strong adjusted EBIT in Q2 results in slight increase from Q1 Return on Equity1 – 25.5% maintains strong returns for sharehol
Slide 10: 2020 Outlook
2020 OUTLOOK 2020 Q2 2020 2019 (figures in C$ millio ns, except per share amo unts) Year-to-date Outlook Full Year KEY MEASURES 1 Adjusted EBITDA $92 $140 – $170 $174 Range based on economic recovery scenarios 1 Adjusted EPS $1.14 $1.60 – $1.90 $1.72 Earnings per share based on EBITDA range 1 Sustai
Slide 11: Appendix
AMERICAN INSTRUCTION GROU! NORTH O APPENDIX
Slide 12: Company Overview
COMPANY OVERVIEW Premier provider of mining services and heavy construction in western Canada with over 65 years in business Mining Mining Services 49% interest in Nuna Group of Companies, the premier mining contractor in northern Canada for more than 25 years Mobile fleet of over 900 heavy eq
Slide 13: Nuna Group of Companies
NUNA GROUP OF COMPANIES Nuna Group of Companies is the premier mining contractor in northern Canada Formed in 1993, Nuna is the established incumbent contractor on the mine sites in Nunavut and the Northwest Territories Q3 2019 represented strongest quarter of activity on record with momentum
Slide 14: First Nation & Inuit Partnerships
FIRST NATION & INUIT PARTNERSHIPS 1. Kitikmeot Corporation We take great pride & responsibility in our First Nation & Inuit partnerships Majority partner in Nuna, Kitikmeot Corporation is a wholly-owned business of Kitikmeot Inuit Association Our partners enable us to work effectively in bringin
Slide 15: Long Term Oil Sands Contracts
LONG TERM OIL SANDS CONTRACTS Long-term contracts remain in place with run-of-mine projections averaging 30+ years of remaining life Oil sands production resiliency through the crisis is a testament to the operating model of mining operations Owner Contract1,2 2000 2010 2020 2030 2040 2050 2060
Slide 16: Heavy Equipment Fleet
HEAVY EQUIPMENT FLEET As at June 30, 2020, over 900 mobile heavy equipment assets provide operational flexibility Managed on an individual asset basis and deployed with sole objective of maximum utilization Fleet count includes ~285 assets operated within Nuna Group of Companies Commissionin
Slide 17: Acheson Facilities
ACHESON FACILITIES 1. 10-bay maintenance facility with integrated office • Purpose-built for North American Construction Group • Larger cranes and wash bay sized to handle all heavy equipment fleet • Fits ultra class mining trucks (>300t payload) and large shovels (>600t) • Low cost facility with hi
Slide 18: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS The information provided in this presentation contains forward-looking statements and information which reflect the current view of North American Construction Group Ltd. (the “Company”) with respect to future events and financial performance, including the Company’s expec
Slide 19: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES A non-GAAP financial measure is generally defined by the securities regulatory authorities as one that purports to measure historical or future financial performance, financial position or cash flows, but excludes or includes amounts that would not be adjusted in the most
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