Vertex Resource Group Ltd. · TSXV:VTX
Vertex Resource — Investor Presentation (August 2019)
22 slides from Vertex Resource's investor presentation, August 2019
Slide 1: Vertex Resource Group Ltd. Investor Presentation
Vertex Resource Group Ltd. Investor Presentation August 2019 www.vertex.ca | TSXV:VTX
Slide 2: Disclaimer Notice to Reader
Click to edit&Master Disclaimer Notice title to Reader style This presentation is for discussion purposes only. The contents are not to be reproduced, summarized or distributed. These materials have been prepared for information purposes only in relation to Vertex and are not, under any circumstance
Slide 3: A Leading Environmental Service Company
Click A Leading to edit Environmental Master title style Service Company BEST-IN-CLASS Initial Site Selection INTEGRATED (Planning & Estimating) ENVIRONMENTAL SOLUTIONS Consultation & Decommissioning Vertex Offers Solutions Regulatory & Reclamation at all stages of Approval Since 1962, Vertex has be
Slide 4: Corporate Profile
Click to editProfile Corporate Master title style Market Summary Locations Current Stock Price $0.40 (July 2019) Common Shares Outstanding 93.4 Million Market Capitalization: $37.4 Million Enterprise Value: $147 Million 2019 Backlog $121 Million EBITDA: 2018 (1) $20.6 Million H1 2019 $12.6 Million C
Slide 5: Integrated Solutions from Planning to Reclamation
Click to editSolutions Integrated Master title fromstyle Planning to Reclamation Environmental Consulting & Engineering Rental Equipment ➢ Abandonment, Drilling & Completion ➢ Specialized tanks, spill prevention, site accommodations, Engineering enviro bins and rental equipment to support developmen
Slide 6: Solutions at All Stages of a Project Life Cycle
Click to edit Solutions At Master All Stages title ofstyle a Project Life Cycle Vertex Provides an Integrated Environmental Service Offering That Supports Project Development Throughout the Life Cycle of our Clients’ Projects Across All Industries “Cradle to Grave Service Offering” 6 Visit vertex.ca
Slide 7: Revenue Earned at Each Stage of a Project's Life Cycle
Click to edit Revenue Earned Master at Each title style Stage of a Project’s Life Cycle Revenue By Division From 45% to 83%, Environmental Services now comprises the majority of Vertex’s revenue stream and drives revenue at each stage of a Project’s Life Cycle % of Vertex’s Revenue Earned by Project
Slide 8: Diversified Environmental Service Offering
Click to editEnvironmental Diversified Master title style Service Offering Vertex continues to focus on growing across multiple industries. This strategy has resulted in several project awards enabling us to continue to expand our geographic footprint outside of Western Canada while increasing the u
Slide 9: Growth Led by Infrastructure Projects
Click Growth GDP to edit Master Led by title Infrastructure style Projects Provincial GDP Growth 1 2017 2018E 2019F 2020F AB PEI NL BC BC QUE BC AB PEI BC PEI ONT MAN ONT QUE PEI ONT AB MAN QUE QUE SASK ONT SASK SASK MAN SASK MAN NB NS NS NS NS NB AB NB NL NL NB NL 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% -3.0
Slide 10: Infrastructure Project Development
Click to edit Master Infrastructure Project title Development style Budget 2017 Investments – Canada’s Infrastructure Plan Industry Details 1 LNG Canada Site / Kitimat LNG Site Trans Mountain • Telecomm 5G Network Upgrade– the deployment of 5G will require numerous small-cell hubs as the network uti
Slide 11: Growing Regulatory & Environmental Requirements
Click to edit Growing Regulatory Master title & Environmental style Requirements Estimated Inactive Wells in Western Canada 1 Market Details 2,3,4,5,6 • Alberta and British Columbia are developing regulations to impose cleanup timelines while other jurisdictions are set to impose higher security dep
Slide 12: E&P Operation & Maintenance Spending
Click Operation E&P to edit Master & Maintenance title style Spending E&P CAPEX and Maintenance Spending Trends in Canada 1 Industry Details 1,2 • Operating expenditures by upstream and $45,000 $250,000 midstream companies are a continued requirement Oil and Gas Industry Capital Total Expenditures t
Slide 13: Financials
Click to edit Master title style Financials Financial Summary Secured Backlog Months Ending June 30 Years Ending December 31 Consensus (C$ 000’s) Q2 2018 Q2 2019 2018 2019 2 2019 Revenue 27,692 41,123 150,385 176,150 Cost of Sales 18,965 31,036 109,982 130,335 Gross Profit 8,727 10,087 40,493 45,815
Slide 14: Financials: Share Capital and Analyst Coverage
Click to edit Master title style Financials Share Capital Analyst Coverage (000’s) 12-month Target Ticker TSXV:VTX Name Contact Price Basic Common Shares Outstanding 93,413 Trevor Reynolds 403.410.6842 $0.90 Options @ $1.00 / share 4,850 Acumen Capital Partners Warrants @ $1.20 / share 2,197 Fully D
Slide 15: Outlook 2019
Click to edit Outlook 2019Master title style • Vertex continues to execute on its strong backlog ($121 million) and remains focused on cost control, streamlining processes through technology improvements and cross-selling services within the Company. The Company’s current financial position is the d
Slide 16: Outlook 2019
Click to edit Outlook 2019Master title style • Vertex intends to continue to focus on factors within its control including growing organically, integrating past acquisitions in order to reduce costs, and drive increases in utilization (people & equipment) through cross-selling initiatives and improv
Slide 17: Why Own Vertex?
Click Own Why to edit Vertex? Master title style Strategic Objectives • Diverse integrated environmental service offering throughout all stages of a project lifecycle that is applicable across numerous industries • Disciplined capital allocation & cost reduction practices • Proven history of purchas
Slide 18: Contact Information
Contact Information 161, 2055 Premier Way Sherwood Park, AB T8H 0G2 (780) 464-3295 www.vertex.ca | TSXV:VTX
Slide 19: Our Journey
ClickJourney Our to edit Master title style Phase I Phase II Phase III & IV Foundation Building Organic Growth Strategy Execution Vertex Founded; acquired TWT Vegetation Management Ltd. and Acquired Three Endrill Resource Acquired Pioneer Acquired Environmental Acquired Fluid Storage & Environmental
Slide 20: Team Leadership: Management
Click to editTeam Leadership Master title style Management Senior management ownership – 18.1% Terry Stephenson – President, Chief Executive Officer and Director • Terry founded Vertex in 2005 and, as President and CEO, he is responsible for the Company’s day-to-day operations. • Joined Flint Energy
Slide 21: Team Leadership: Board of Directors
Click to editTeam Leadership Master title style Board of Directors Board ownership – 28.3% Brian Butlin, Chairman of the Board of Directors • Chairman of the Board of Directors since February 6, 2007. Formerly, Mr. Butlin was Chairman and Chief Executive Officer of Flint Energy Services Ltd. • In ad
Slide 22: Management Experience
Click to edit Master Management Experience title style Prior to founding the Company, Vertex’s leadership team was responsible for growing Flint Energy Services, a private oilfield services company with $60 million in revenue, to a public corporation with over 7,500 employees, 49 North American loca
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