Essex Rental — Oppenheimer Presentation (May 2014)
20 slides from Essex Rental's conference presentation, May 14, 2014
Slide 1: Essex Rental Corp. Oppenheimer Presentation May 14, 2014
Essex Rental Corp. Oppenheimer Presentation May 14, 2014 1
Slide 2: Forward-looking statements disclaimer
This document does not constitute an offer to sell or a solicitation of an offer to buy any securities. It is an outline of matters for discussion only. Some of the statements in this presentation and other written and oral statements made from time to time by the Company and its representatives are
Slide 3: Company Overview
agsax 847.215.6500 ESSEXRENTAL.COM Company Overview
Slide 4: Introduction
Introduction 4 Nicholas Matthews, President and Chief Executive Officer – President & CEO of Essex Rental since March 2014 – Previously served as Chief Operating Officer for Essex Rental since June 2013 – Served as Vice President and Group Executive for Railcar Operations at GATX, a global leader
Slide 5: Essex Rental Corp.
5 Essex Rental Corp. Acquired Essex Crane Rental Corp. in October 2008 and conducted substantially all operations through this subsidiary until acquisition of Coast Crane Company Acquisition of Coast Crane Company in November 2010 increased the Company’s geographic footprint, product offerings a
Slide 6: Integrated Business Model
Integrated Business Model — Rental — New and Used Sales — Parts and Service — Multi–faceted offering of diverse lifting needs — Multiple lines of business driving growth — Cyclical “earnings smoothing” Geographic & End Market Diversity — 22 locations in 12 states and Canada — Serve a broad array of
Slide 7: Three pronged strategy for creating shareholder value
Essex’s three pronged strategy for creating shareholder value: Rental Equipment Keen focus on return on capital equipment with medium to long duration rentals Leverage customer relationships by offering bundled equipment solutions to drive increased utilization Organic growth through increas
Slide 8: National Footprint
Continue to leverage the Essex and Coast brands in the territories in which they are strongest, yet achieve the benefits of geographic and product diversity Headquarters Service Center Equipment Storage Yard Satellite Service Center National Footprint 8
Slide 9: Essex End Markets
Essex End Markets Essex 2008 YTD Rental Revenues by End Market Business is Dependent on Energy & Infrastructure Industrial / Marine (20%) Industrial Facilities Factories Petrochemicals (14%) Chemical Plants Petrochemical Plants General Building (22%) Hospitals Stadiums Power (13%) Power Plants Wind
Slide 10: New & Used Equipment Sales
New & Used Equipment Sales 10 New and used equipment sales segment provides a countercyclical balance to rental business segment New Equipment Sales Distribution agreements signed with Tadano, Manitex, Potain, Mantis, Broderson and Sany: Distribution agreements in Western United States, Britis
Slide 11: Market Indicators
Market Indicators 5 3 z ry 2 g 2 2 $ 4 agsax 847.215.6500 ESSEXRENTAL.COM Crane December 2003- March 2014 ° Dec-02 Dec03 Dec-04 Dec0S Dec-06 Dec07 Dec-08 Dec09 Dec10 Decl Dec-12 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0% ? i i 5 8 Crawler Crane "Days"
Slide 12: Current Business Initiatives
Current Business Initiatives 12 Reshaping our asset portfolio and repositioning the fleet Auctions, trades and outright sales Reduce dependency on traditional crawlers Improving utilization and return on invested capital Strategic partnerships Integrate sales offering on rental packages
Slide 13: Summary Financial Information and Valuation
Summary Financial Information and Valuation 13
Slide 14: Essex Rental Fleet
14 Essex Rental Fleet Crane Type Crawler Rough Terrain (RTs) Boom Truck Tower Sales Channel Rental & Distribution Rental & Distribution Rental & Distribution Rental & Distribution Max. Lift Cap. (tons) 3,000+ 150 50+ 80 Max. Reach Cap. (ft.) 700+ 250 200 350 Price New ($ ‘000) $800 - $5,000 (1) $250
Slide 15: Essex Rental Fleet Employs Long Lived Assets
Essex Rental Fleet Employs Long Lived Assets Asset Depreciation (1) Benchmark: Annual Depreciation %(2) -1% -2% -3% -3% -3% -5% -6% -7% -7% -10% -11% -11% -11% -11% -12% -14% -14% -22% -25%-20%-15%-10%-5%0% Essex Crane Crawler Crane Mobile Mini storage units (steel) Tower Crane Scotsman rental equip
Slide 16: Summary Financial Information
Summary Financial Information 16 Note (1): 2008 Adjusted EBITDA excludes the impact of approximately $5.2 million of expenses incurred by Essex Holdings, LLC in conjunction with its acquisition by Hyde Park Acquisition Corp. $38.6 $55.7 $64.5 $77.4 $45.6 $37.3 $83.1 $81.0 $83.1 $80.6 $7.8 $6.0 $13.2
Slide 17: Unlevered Free Cash Flow and Capital Investment
Unlevered Free Cash Flow and Capital Investment 17 Note (1): Unlevered free cash flow is defined as Adjusted EBITDA, excluding the impact of approximately $5.2 million of acquisition related expenses incurred in conjunction with Hyde Park Acquisition Corp.’s acquisition of Essex Holdings, LLC in 200
Slide 18: Utilization Statistics
18 Utilization Statistics March 31, 2014 December 31, 2013 March 31, 2013 Utilization Statistics - "Days" Utilization Crawler Cranes - Hydraulic 57.5% 56.7% 60.5% Crawler Cranes - Traditional 27.5% 32.2% 31.2% Rough Terrain Cranes 58.2% 54.1% 58.4% Boomtrucks 46.1% 51.7% 43.4% Self-Erecting Tower Cr
Slide 19: Average Rental Rate
19 Average Rental Rate March 31, 2014 December 31, 2013 March 31, 2013 Average Rental Rate Per Month Crawler Cranes - Hydraulic 21,311$ 20,950$ 20,325$ Crawler Cranes - Traditional 11,405$ 11,758$ 12,156$ Rough Terrain Cranes 11,938$ 11,823$ 12,022$ Boomtrucks 8,431$ 8,963$ 8,156$ Self-Erecting Towe
Slide 20: Investment Summary
Investment Summary 20 Market leader with significant operating leverage Utilization in certain asset classes is increasing and rental rates are also increasing Return on capital business model with high conversion rate of EBITDA to free cash flow Poised to participate in growing infrastructu