North American Construction Group Ltd. · TSX:NOA
North American Construction — Q3 2014 Earnings Presentation
19 slides from North American Construction's earnings presentation, November 2014
Slide 1: Investor Presentation – Third Quarter ended September 30, 2014
Investor Presentation Third Quarter ended September 30, 2014
Slide 2: Company Overview
Company Overview Mining Mining Founded in 1953 TSX and NYSE listings: “NOA” Current share price: $6.02 (CAD) 52 week high/low: $9.22/$5.60 Market capitalization: $211.7 million Shares outstanding: 35.4 million Average daily share volume: 40,160 Annual dividend of $0.08 per share (CAD
Slide 3: Net Debt Reduction
Net Debt Reduction $450 $424 $400 $355 $350 $300 Term A Facility Net Debt ($ Millions) Term B Facility $250 Credit Facility Series 1 Debentures less Cash $200 Capital leases (including interest) Operating lease commitments $145 $150 $127 $100 $50 $0 December 31, 2011 December 31, 2012 December 31, 2
Slide 4: Stronger, Better Focused
Stronger, Better Focused NAEP is now a pure‐play heavy construction and mining (HC&M) contractor Simplified business can better target productivity and cost efficiencies Pipeline divestiture in 2012 ($16.3M of proceeds) Piling divestiture in 2013 ($227.5M of proceeds, up to $92.5M of contingen
Slide 5: HC&M – Five Year Financial History
HC&M – Five Year Financial History Revenue and EBITDA Margin $800 $700 $717 $600 $636 $621 $595 $500 $ Millions $470 $400 $362 $359 $300 19% 16% $200 11% 9% 9% 9% $100 5% 13% $135 8% $116 $0 2009 2010 2011 2012 2013 9 months ended 9 months ended Quarter ended Quarter ended Sept 30, 2013 Sept 30, 201
Slide 6: Activities That Benefit Our Shareholders
Activities That Benefit Our Shareholders 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, the
Slide 7: Activities That Benefit Our Shareholders
Activities That Benefit Our Shareholders 5th Amended Credit Facility Negotiated an interest rate reduction of 1.5%, leading to a significant reduction in the cost of borrowing. A combination of working capital and equipment will secure $85 million in potential borrowing. Reduced financial cove
Slide 8: 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 9: 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 10: 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 11: Outlook for Revenue Growth
Outlook for Revenue Growth Continued activity on existing mine sites as owners grow production Recent awards of over $100 million of secured work on two existing mine sites Good visibility into the coming quarters, which is unusual for this time of the year Continued work at Kearl under the
Slide 12: BC Hydro - Site C Opportunity
BC Hydro - Site C Opportunity Site C is a proposed third dam and generating station on the Peace River in northeast B.C. Project received environmental approval from the federal and provincial governments in October 2014. Expected seven‐year construction period, with one additional year for fi
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 Site prep work to end in Q4 2014 SUNCOR CANADIAN FORT HILLS 4‐year master services agreement covering NATURAL EXXON HORIZON KEARL mining services & construction TOTAL JOSLYN SHELL/ALBIAN 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 FORT Syncrude current: 350,000 bbl/d HILLS CANADIAN NATURAL HORIZON EXXON KEARL Syncrude expansion total potential: 600,000 bbl/d TOTAL SHELL/ALBIAN JOSLYN JACKPINE AND MUSKEG RIVER SYNCRUDE BASE
Slide 15: Thank You
THANK YOU 15
Slide 16: Appendix
APPENDIX
Slide 17: HC&M – Heavy Equipment Fleet
HC&M – Heavy Equipment Fleet Owned Equipment Leased Equipment Support Heavy Trucks, Support Heavy Trucks, Equipment, 103 Equipment, 62 62 125 Loading Equipment, 60 Loading Equipment, 26 Heavy Trucks Loading Equipment Support Equipment Heavy Trucks Loading Equipment Support Equipment 17
Slide 18: Large, Well Maintained Equipment Fleet
Large, Well Maintained Equipment Fleet Category Own Lease Rental Total SHOVELS 2 2 0 4 EXCAVATORS (≥100T) 11 3 0 14 EXCAVATORS (<100T) 47 21 13 81 RIGID FRAME TRUCKS (>200T) 36 22 0 20% 58 RIGID FRAME TRUCKS (100T to 200T) 56 18 0 74 RIGID FRAME TRUCKS (<100T) 6 2 0 8 ARTICULATED TRUCKS 5 20 24 40%
Slide 19: 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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