Cervus Equipment — Q2 2019 Earnings Presentation
10 slides from Cervus Equipment's earnings presentation, Aug 9, 2019
Slide 1: Cervus Q2 2019 Results
CERVUS Q2 2019 RESULTS August 9, 2019
Slide 2: Forward Looking Information
FORWARD LOOKING INFORMATION This presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities laws, and are subject to risks and uncertainties that could cause actual results to differ. The use of any of the words "expect", "anticipate"
Slide 3: Q2 Overview
Q2 2019 RESULTS Q2 OVERVIEW • Ag equipment revenue down 30% • Transportation equipment revenue down 13% • Product support revenue up 4% • Decrease in SG&A related primarily to selling costs • Increase in net finance costs primarily related to IFRS 16 (1) This is a non-IFRS financial measure. 3
Slide 4: Balance Sheet Overview
BALANCE SHEET OVERVIEW • Increase in syndicated debt to fund Balance Sheet Q2 Q2 inventory as financing choice ($ millions) 2019 2018 • Net long-term debt to total capital Total Inventory $389.8 $357.2 ratio well within long term Net LTD to Total 25% 14% objective of less than 35% Capital Available
Slide 5: Q2 2019 Quarter Overview
Q2 2019 QUARTER OVERVIEW Adjusted Income (Loss) Before Tax(1) 3 Months Ended June 30 ($ millions) Q2 2019 Q2 2018 Agriculture ($0.7) $11.0 Transportation $2.1 $2.5 Industrial $0.8 $0.1 Total $2.2 $13.6 (1) This is a non-IFRS financial measure. 5
Slide 6: Agricultural Used Inventory - Q2
AGRICULTURAL USED INVENTORY - Q2 Agriculture Used Inventory- Q2 $200 2.5 2.38 $180.8 Sustainable $180 Target 2.11 $161.9 $160 2.0 $140 1.78 Used Agriculture Inventory 1.67 1.62 Inventory Turnover $120 $114.9 1.5 $109.6 $ Millions $101.7 Ratio $100 $80 1.0 $60 $40 0.5 $20 $- - Q2 2015 Q2 2016 Q2 2017
Slide 7: Product Support Stable, Profitable & Growing
PRODUCT SUPPORT STABLE, PROFITABLE & GROWING Equipment Gross Profit Product Support Gross Profit by Geography and Industry Three Months Ended June 30 Three Months Ended June 30 $30 $27.9 $14 $12.5 $12.7 $12 $25 $10.9 $10.2 $10 $20 Gross Profit Gross Profit $ Millions $ Millions $15.7 $8 $15 $6 $10 $
Slide 8: Industry and Geographic Diversification
INDUSTRY AND GEOGRAPHIC DIVERSIFICATION Total Gross Profit by Geography and Industry Three Months Ended June 30 $35 $30.3 $30 $25 Total Gross Profit $ Millions $20 $18.3 $16.7 $16.7 $15 $10 $6.7 $7.0 $4.9 $5 $4.1 $- Ag Canada Ag ANZ Transportation Industrial Q2 2018 Q2 2019 8
Slide 9: Cervus Q2 2019 Q&A
CERVUS Q2 2019 Q&A August 9, 2019
Slide 10: Thank You
THANK YOU facebook.com/cervusequipment | twitter.com/cervusequipment ‘in| linkedin.com/company/cervus-equipment jf instagram.com/cervusequipment CERVUS EQUIPMENT