North American Construction Group Ltd. · TSX:NOA
North American Construction — Q2 2014 Earnings Presentation
21 slides from North American Construction's earnings presentation, August 2014
Slide 1: Investor Presentation Second Quarter ended June 30, 2014
Investor Presentation Second Quarter ended June 30, 2014
Slide 2: Company Overview
Company Overview Mining Mining Founded in 1953 TSX and NYSE listings: “NOA” Current share price: $6.65 (USD) 52 week high/low: $8.50/$4.88 Market capitalization: $235.4 million Shares outstanding: 35.4 million Average daily share volume: 75,178 Annual dividend of $0.08 per share (CAD
Slide 3: Restructuring Initiatives
Restructuring Initiatives Pipeline Divestiture (2012) $16.3 million of proceeds $15.4 million applied to term B facility ~$30 million working capital recovery Fleet Rationalization (2012/2013) $46.8 million in capital leases refinanced $23.6 million expected annual EBITDA benefit $6.0 mi
Slide 4: Shareholder Friendly Highlights
Shareholder Friendly Highlights Share Purchase Program In October 2013, announced the intention to purchase 1,800,000 common shares for cancellation, this represented 5% of the issued and outstanding shares. In December 2013, completed the share purchase program. After the purchase, there were a
Slide 5: Shareholder Friendly Highlights
Shareholder Friendly Highlights Secondary Offering On May 8, 2014, it was announced that Harbinger had decided to liquidate their holdings in North American. The liquidation was conducted via a secondary offering. A syndicate of investment dealers purchased 7,032,322 common shares at a price of $8
Slide 6: Net Debt Reduction
Net Debt Reduction $450 $424 $400 $355 $350 $300 Net Debt ($ Millions) Term B Facility $250 Term A Facility Series 1 Debentures less Cash $200 Capital Leases (including interest) Equipment Operating Leases $150 $139 $127 $100 $50 $0 December 31, 2011 December 31, 2012 December 31, 2013 June 30, 2014
Slide 7: HC&M – Five Year Financial History
HC&M – Five Year Financial History Revenue and EBITDA Margin $800 $700 $717 $600 $636 $621 $595 $500 19% $470 $ Millions $400 $300 11% 11% 9% 9% $245 $200 $224 5% 7% $100 $0 2009 2010 2011 2012 2013 6 months ended 6 months ended June 30, 2013 June 30, 2014 7
Slide 8: Stronger, Better Focused
Stronger, Better Focused NAEP is now a pure-play heavy construction and mining (HC&M) focused contractor Simplified business can better target productivity and cost efficiencies Efficient, productive equipment fleet Improved financial strength and capacity represent competitive advantage Pos
Slide 9: First On, Last Off
First On, Last Off Project Development Phase (3-4 years) Ongoing Operations Phase (30-40 years) Initial mine site development, project site Overburden removal, mine infrastructure development, development, airstrips, piping reclamation, tailing ponds remediation, equipment and labour supply Buil
Slide 10: Significant Heavy Construction & Mining Contractor in the Oil Sands
Significant Heavy Construction & Mining Contractor in the Oil Sands Expertise 30+ years in Northern Alberta’s harsh operating environment Knowledge to come up with best solutions for customers Broad Service Offering Unique suite of services across project lifecycle Operational Flexibilit
Slide 11: Strategic Focus
Strategic Focus Pursue operational excellence in safety, productivity, customer satisfaction Continued strengthening of balance sheet Debt reduction, fleet rationalization and cash-flow improvement Grow revenue from activity on existing mine sites, incremental work on new sites, and alternat
Slide 12: Outlook for Revenue Growth
Outlook for Revenue Growth Increase in activity on existing mine sites as owners grow production Ramp up at Kearl under new five-year agreement Continued support of production efforts at Horizon, Base Mine, Millennium and Steepbank Increase in work on new mine sites Fort Hills mine Pursu
Slide 13: Active with Every Oil Sands Client
Active with Every Oil Sands Client Key Customer Contracts Project put on hold until at least 2017 SUNCOR Site prep work to end in Q3 2014 FORT HILLS CANADIAN NATURAL HORIZON EXXON KEARL 4-year master services agreement covering mining services & construction TOTAL SHELL/ALBIAN JOSLYN JACKPINE
Slide 14: Potential Production Expansion on Oil Sands Mine Sites
Potential Production Expansion on Oil Sands Mine Sites Key Customer Production and Expansion SUNCOR Joslyn mine expected: 100,000 bbl/d FORT CANADIAN NATURAL HILLS EXXON Project on hold until at least 2017 HORIZON KEARL TOTAL JOSLYN SHELL/ALBIAN JACKPINE AND MUSKEG Syncrude current: 350,000 bb
Slide 15: Thank You
THANK YOU 15
Slide 16: Appendix
APPENDIX 16
Slide 17: Piling Asset Sale Payment Terms
Piling Asset Sale Payment Terms 1. $227.5 million cash paid at closing (less approximately $5.8 million in outstanding capital lease obligations, plus or minus customary working capital adjustments). In addition, we may receive up to $92.5 million in additional proceeds, contingent on the Purchaser
Slide 18: HC&M – Heavy Equipment Fleet
HC&M – Heavy Equipment Fleet Owned Equipment Leased Equipment Heavy Trucks, Support Heavy Trucks, Support 106 Equipment, 67 66 Equipment, 152 Loading Equipment, 61 Loading Equipment, 29 Heavy Trucks Loading Equipment Support Equipment Heavy Trucks Loading Equipment Support Equipment 18
Slide 19: Large, Well Maintained Equipment Fleet
Large, Well Maintained Equipment Fleet Category Own Lease Rental Total SHOVELS 4 2 0 6 EXCAVATORS (≥100T) 11 3 0 14 EXCAVATORS (<100T) 46 24 8 78 RIGID FRAME TRUCKS (>200T) 39 26 0 20% 65 RIGID FRAME TRUCKS (100T to 200T) 56 18 0 74 RIGID FRAME TRUCKS (<100T) 6 2 0 8 ARTICULATED TRUCKS 5 20 22 40% 4
Slide 20: Extra Pictures – MSE Wall progress
Extra Pictures – MSE Wall progress
Slide 21: 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 Energy Partners with respect to future events and financial performance. Actual results could differ materially from those con
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