Divestco — Shareholder Meeting (June 2006)
24 slides from Divestco's shareholder meeting presentation, Jun 1, 2006
Slide 1: Divestco Inc. 2006 Annual & Special Meeting
Divestco Inc. 2006 Annual & Special Meeting June 1, 2006 Calgary · Edmonton · Vancouver · Denver · Houston
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-V) Shares Outstanding1: 36,000,000 Insider Ownership: 35% Employees: 440 52 Week High/Low: $7.00/1.45 Current Share Price: $5.75 Current Market Cap1: $207,000,000 1) Diluted
Slide 4: Board of Directors
Board of Directors 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) Stephen Popadynetz - CEO & Director 1) Member of Audit Committee 2) Member of Compensation Committee 3) Member of Corporate Gove
Slide 5: Officers
Officers Stephen Popadynetz - CEO & Director Roderick Chisholm - Chief Financial Officer Terry Barnhart - President Steve Sinclair-Smith - VP Operations Mathew Hepton - VP Software Development Shannon Niemi - VP Sales & Marketing Oliver Kuhn - VP Processing Kevin Ludbrook - VP Consulting Cary Sabraw
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 five 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
Slide 8: Growth Through Acquisition
Growth Through Acquisition Acquired Drilling Records on September 2, 2005 • Adds a unique drilling data set compiled since 1958 in Canada and 1975 in the U.S. Numerous integration opportunities with Divestco’s suite of software products and PDS’ well and production database • Drilling Studies – Prov
Slide 9: Growth Through Acquisition
Growth Through Acquisition Acquired Focus Integrated Solutions on October 5, 2005 • Complements existing DVT consulting services and adds a separate revenue vertical • Key services added to the Divestco fold: Business Consulting Enterprise Resource Planning (ERP) Customer Relationship Management
Slide 10: Growth Through Acquisition
Growth Through Acquisition Acquired Laser Software Limited on October 31, 2005 • Adds a well-known and well-respected land administration software product to Divestco’s suite of products called LandRite • Adds an Accounting Services Bureau, ideal for start-up oil and gas companies. Allows them to ac
Slide 11: Growth Through Acquisition 2006
Growth Through Acquisition 2006 Acquired Geo-X Processing 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 natural fit to o
Slide 12: Seismic Data Growth: 05/06
Seismic Data Growth: 05/06 $ 69.0M In Seismic to be Acquired Upper Cutbank 3D Tremblay 3D 312 Square Km’s 360 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
Slide 13: Seismic Data Growth
Seismic Data Growth Upon completion of our 2005/2006 seismic programs, Divestco will have: • 60,000 Km’s of 2D Data • 7,000 Square Km’s of 3D Data • Been involved in $190M of shot and purchased seismic since 2003 • 2nd only to Encana in amount of seismic acquired
Slide 14: 2005 Initiative Review
2005 Initiative Review At the 2005 AGM we outlined 23 financial and operational targets: We are pleased to report we met or exceeded all 23 of our targeted objectives
Slide 15: 2006 Initiatives and Outlook
2006 Initiatives and Outlook • Stay the course • Move from the TSX-V to TSX – Divestco has been approved for listing on the TSX subject to fulfilling certain conditions • Continue with ongoing IR presentations • Complete 2-4 additional share/asset accretive acquisitions in Canada and the U.S. • Cont
Slide 16: Guidance Review
GUIDANCE REVIEW Guidance at Actual 2005 % 2005 AGM Results Change Revenue $30MM $39MM 30% Funds from $0.28/share $0.58/share 107% Operations EPS (basic) $0.18/share $0.20/share 11%
Slide 17: Financial Review
FINANCIAL REVIEW Actual 2004 Actual 2005 % Change Results Results Revenue $26MM $39MM 50% Funds from $0.26/share $0.58/share 123% Operations EPS (basic) $0.16/share $0.20/share 25%
Slide 18: 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 2003 2004 2005 2006
Slide 19: Financial Highlights By Year
Financial Highlights By Year 80 70 Revenue 60 50 $ Millions EBITDA 40 Net Income 30 20 10 0 2002 2003 2004 2005 2006F 1 1) Excludes impact of recent acquisition Geo-X Systems Ltd.
Slide 20: Sources of Revenue
Sources of Revenue Forecast 2006: $75 - 80M1 10% 25% 10% 55% Services Data Software Consulting 1) Includes adjusted % impact of recent acquisition Geo-X Systems Ltd.
Slide 21: 2006 Guidance
2006 GUIDANCE • Gross Revenue of $75-80 million • EBITDA of $40-45 million • Net Income of $12-15 million
Slide 22: Share Price Performance Total Return Comparison
Share Price Performance Total Return Comparison (May 27, 2005 - May 26, 2006) 400% 350% 300% 250% 261% Total Return 200% 150% 100% 50% 43% 0% 22% -50% 27-May-05 26-Aug-05 25-Nov-05 24-Feb-06 26-May-06 DVT S&P/TSX Composite Index S&P/TSX Energy Index Provided by Blackmont Capital Inc.
Slide 23: Questions?
Questions?
Slide 24: Thank you for attending our 2006 Annual & Special Meeting
Thank you for attending our 2006 Annual & Special Meeting 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