Divestco — Shareholder Meeting (June 2004)
26 slides from Divestco's shareholder meeting presentation, Jun 3, 2004
Slide 1: Divestco Inc. Annual General Meeting
DIVESTCO INC. Annual General Meeting June 3, 2004 DVT – TSX Venture Exchange
Slide 2: A Year in Review: 2003 Financial Review
“A Year in Review” 2003 Financial Review • Stock Symbol : DVT • Shares Outstanding: 25,423,091 • Management/Directors Ownership: 37%
Slide 3: Directors
Directors John Brussa Senior Partner, Burnet, Duckworth & Palmer LLP Chairman, Audit Committee Stephen Popadynetz Chief Executive Officer, Divestco Wade Brillon Independent seismic broker Audit Committee M.Scott Ratushny President, Southpoint Resources Ltd. and Eagle Equities Ltd. Audit Committee Ed
Slide 4: Officers
Officers Stephen Popadynetz Chief Executive Officer & acting Chief Financial Officer Terry Barnhart President Steve Sinclair-Smith VP Technical Services Mathew Hepton VP Software Development Shannon Niemi VP Sales & Marketing Clare Bowie VP Databases Peter Ciavarella VP Geological Software Chuck Smi
Slide 5: Corporate History
Corporate History • Divestco initially formed to develop an internet based auction land system for mineral rights in Western Canada. System brought on-line early in 2001 • CDPubco purchased late in 2000. Reduces Divestco's reliance on data from 3rd parties and adds GeoVista browser to the Company’s
Slide 6: Corporate History
Corporate History • 2003 – 2 major share acquisitions– The Excalibur-Gemini Group Ltd. and International Datashare Corporation (“IDC”) • Excalibur-Gemini brings with it mapping, geophysical survey audit, imaging and archiving divisions, creating a whole new business segment for Divestco • IDC – Dive
Slide 7: Business Segments
Business Segments • Services • Data • Software • Brokerage “this has given Divestco a unique position in the market place, as it is the only company to offer these services together under one roof” – 2003 Annual Report
Slide 8: Financial Highlights 2003
Financial Highlights 2003 For the year ended 2003 2002 % Change Revenue 15,042,564 4,969,189 203 EBITDA 1,696,557 698,587 143 Net Income from 471,626 250,064 89 Continuing Operations Per Share 0.027 0.021 29 Net Income 719,132 250,064 188 Per Share 0.042 0.021 100 Cash Flow from 1,650,230 703,073 13
Slide 9: Financial Highlights 2003 ($ Millions)
Financial Highlights 2003 16.0 14.0 12.0 10.0 $ Millions Revenue 8.0 EBITDA 6.0 Net Income 4.0 Cash Flow 2.0 Working Captial 0.0 (2.0) 2001 2002 2003
Slide 10: Financial Highlights 2003 (Quarterly)
Financial Highlights 2003 7 6 5 $ Millions 4 Revenue 3 EBITDA 2 Net Income 1 Cash Flow 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 02 02 02 02 03 03 03 03
Slide 11: Results of Operations 2003
Results of Operations 2003 • Revenues grew to $15.0 million in 2003 from $5.0 million in 2002 and $1.7 million in 2001. • EBITDA grew by almost $1 million from 2002 and over $2 million from 2001 • Net income increased by 188% and 200% from 2002 and 2001, respectively • Key was strategic acquisitions
Slide 12: Financial Highlights Q1 2004
Financial Highlights Q1 2004 For the 3 months 2004 2003 % Change ended Revenue 6,197,528 2,484,358 149 EBITDA 1,475,698 97,453 1,414 Net Income 802,810 (102,249) 885 Per Share 0.032 (0.007) 557 Cash Flow 1,461,772 153,779 841 Per Share 0.057 0.010 470 Working Capital 1 (4,233,347) 2,219,813 (291) To
Slide 13: Corporate Highlights Q1 2004
Corporate Highlights Q1 2004 • Divestco continued its strong financial performance from Q4 2003 • 2004 Q1 income exceeded income for all of 2003 • 3 significant transactions took place, some of which are taking the Company into a new direction: 1) Purchase of seismic data library from a major oil an
Slide 14: Working Capital
Working Capital Working capital deficiency as at March 31, 2004 was due to: – Issuance of $4.25 million in short-term debentures in Q1 04, used to partially finance seismic data purchase. – Accrual recorded for participation survey capital expenditures of $0.8 million Divestco is doing the following
Slide 15: Operational Targets for 2004
Operational Targets for 2004 • Structure new leasing arrangement with NE Office landlord to renovate space (make it functional for all existing business units) – Deal struck in April • Consolidate Office space in Calgary to no more then 2 offices (Downtown and NE) • Sublease excess space in existing
Slide 16: Software Objectives 2004
Software Objectives 2004 • Release Major New versions of flagship products • WinPics, MapQ, Geovista, and Geocarta • Release 3 New Software Products • GeoCarta Tools, DataStore and Envision3d • Integrate existing product lines to provide increased functionality for clients • Ready Product Lines for
Slide 17: Envision3d Sneak Peak
Envision3d°Sneak Peak
Slide 18: WinPics Sneak Peak
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Slide 19: Data Objectives 2004
Data Objectives 2004 • Augment existing seismic database with new multi-client programs and potential acquisitions – Divestco entered into first multi-client shoot in Kelly Lakes, BC • Complete raster log library and return IDC’s database to best of breed caliber • Complete freehold land database •
Slide 20: Services Objectives for 2004
Services Objectives for 2004 • Gain new corporate customers by offering service, software and data bundles – commenced with Petro Canada data offering • Provide software interface (DataStore) to customers for seamless access to Geophysical Services • Consolidate Archive, Imaging and Log divisions in
Slide 21: Brokerage Objectives for 2004
Brokerage Objectives for 2004 • Continue to expand proprietary seismic data inventory for resale to customers through brokerage division • Expand our marketing exposure through adding available seismic layer to existing software installations • Refinement of Brokerage Data Mgmt software (SDManager &
Slide 22: Corporate Objectives for 2004
Corporate Objectives for 2004 • Acquire 1-2 US corporations with synergistic product/data lines to create a marketing beachhead • More cost effective then opening offices and staffing up • Develop marketing strategies for Far East, Europe and Middle East – China marketing arrangement now complete •
Slide 23: Financial Targets for 2004
Financial Targets for 2004 • Gross Revenue in excess of $26.0 Million • Earnings of $0.14/share in 2004 • Cash flow of $0.25/share in 2004 • 20% internally generated revenue growth • 20% additional revenue generated through corporate acquisitions
Slide 24: Stock Price Chart
Stock Priee Chart C - DVT - DIVESTCO INC. - 1 year |3 year |5 year Simple Moving Avg (30) Simple Moving Avg (90) __ Historic Chart for Cdn: OVT by Stockwatch.com 604.687.1500 - (c) 2004 Tue Jun 12004 no trading this date Year hi=1.60 lo=0.76 Cdn. DVT 1.70 1.65 1.60 1.55 1.50 1.45 1.40 1.35 1.30 1.25
Slide 25: What is Divestco doing for Shareholders?
What is Divestco doing for Shareholders? • Build investor confidence by continuing to produce solid profits and growth • Institute normal course issuer bid to repurchase a maximum of 5% of shares • Institute small shareholder repurchase - > 500 • Asset reunification program – locate lost shareholder
Slide 26: Conclusion
Conclusion Thank you for attending Divestco’s first annual general meeting For more information please contact us at: investorrelations@divestco.com or Stephen Popadynetz at: stephen@divestco.com or (403) 218-6466