Vertex Resource Group Ltd. · TSXV:VTX
Vertex Resource — Investor Presentation (December 2017)
24 slides from Vertex Resource's investor presentation, December 2017
Slide 1: Vertex Resource Group Ltd. Investor Presentation
VERTEX RESOURCE GROUP LTD. INVESTOR PRESENTATION December 2017 www.vertex.ca TSXV : VTX
Slide 2: Disclaimer and Notice to Reader
Disclaimer and Notice to Reader 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 circumstances, to be construed as an offe
Slide 3: Company Overview
Company Overview Vertex Resource Group - Environmental • Publicly listed on the TSX Venture exchange under the symbol Operating Locations VTX. • Operating entities were established in 1976. We are a leading North American provider of environmental and environmentally focused industrial services. • H
Slide 4: The Foundation: Themes that Lead to Vertex's Creation
Company Overview The Foundation: The Themes that Lead to Vertex’s Creation • Vertex’s management believed that there were key over-arching themes present that would increase the focus on certain assets and services long-term. • These themes include: • Increased environmental sensitivity; Holistic So
Slide 5: Wholistic and Innovative Client Solutions
Company Overview Wholistic and Innovative Client Solutions Our Vision: To be the leading provider of integrated environmental services and solutions to a diverse group of clients operating in Canada and the United States. Our Strategy: To assemble, integrate and grow a group of businesses that provi
Slide 6: Leadership Team
Company Overview Leadership Team Management Senior management ownership - 35.7% 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 Services Ltd. a
Slide 7: Board of Directors
Company Overview Board of Directors Board of Directors Board ownership – 31.8% Brian Butlin, Chairman of the Board of Directors • Chairman of the Board of Directors since February 6, 2007, Mr. Butlin was Chairman and Chief Executive Officer of Flint Energy Services Ltd. • In addition to his experien
Slide 8: Integrated Solutions from Planning to Reclamation
Integrated Solutions from Planning to Reclamation Environmental Services Division Environmental Land Environmental Fluid Hauling & Support Consulting Consulting Services Management Equipment • Highly skilled engineers, • Offers land consulting services • Offers clients integrated • Offers clients to
Slide 9: Industrial Services Division
Company Overview Industrial Services Division Industrial Insulation & Insulation Metal Building Manufacturing Blankets and Repair • Insulation reduces heat loss and heating • Our custom fabricated industrial noise requirements allowing Vertex’s customers to suppression solutions are used to absorb r
Slide 10: Full Cycle Services
Company Overview Full Cycle Services Vertex provides services to clients in many industries and generates revenue at each stage of a project’s life cycle. Oil and Gas Project Timeline Drill & Service Line Site Prep Facilities Operations Maintenance Abandonment Complete Land Consulting Environmental
Slide 11: Key Differentiators – Why Vertex?
Company Overview Key Differentiators – Why Vertex? Vertex’s model is to provide integrated solutions for complex environmental and industrial projects. Customers choose Vertex for their best in class solutions and cradle-to-grave project expertise, integration and execution. • Large and diverse tech
Slide 12: Customers
Company Overview Customers Vertex has built strong relationships with a wide array of blue chip customers and over the past 5 years has successfully grown its portfolio of clientele with over 76 MSAs. Clients include: Other (Industrial, Commercial, Agriculture, Forestry, Oil & Gas - Upstream Oil & G
Slide 13: Operating Summary
Company Overview Operating Summary Financial Summary Year ending December 31 (C$ 000's) (1) (2) 2014 2015 2016 2017 YTD Revenue 116,465 108,327 86,153 82,647 Cost of sales 79,381 75,685 61,869 59,107 Gross Profit 37,084 32,642 24,284 23,540 Gross profit margin 32% 30% 28% 28% SG&A and other 17,985 2
Slide 14: Financial Summary
Financial Summary Financial Snapshot Summary Balance Sheet Share Capital (C$000's) As at September 30, 2017 (000's) Assets Ticker TSXV: VTX Basic Common Shares Outstanding 86,538 Current Assets 46,899 Shares to Repay Promissory Note @$0.92 / share (3) 1,924 Property, Plant & Equipment including Good
Slide 15: Growth Drivers - Environmental Services Market (Abandonments)
Company Overview Growth Drivers - Environmental Services Market (Abandonments) Vertex provides environmental services to the growing abandonment and reclamation segment of the oil and gas industry. Increasing Focus On Abandonments and Reclamation Estimated Inactive Wells In Western Canada (1) • Rece
Slide 16: Growth Drivers - Environmental Services Market
Company Overview Growth Drivers - Environmental Services Market Vertex’s expertise in planning and executing reclamation projects becomes increasingly important as costs and complexity increases – USA Case Study. Increasing Regulatory Requirements and Complexity Case Study: Underestimating Reclamati
Slide 17: Growth Drivers - Energy Market
Company Overview Growth Drivers - Energy Market The consensus view supports an increase in spending on oilfield services in Western Canada. Energy Market Growth Drivers E&P CAPEX and Maintenance Spending Trends in Canada (1) • Operating expenditures by upstream and midstream $45,000 $250,000 Oil and
Slide 18: Diversified Strategy
Diversified Strategy Industry Diversification • Vertex continues to capitalize on opportunities to diversify its customer base and lowering our risk profile. • Non-energy related projects continue to comprise a material portion of the Company’s operations and growth opportunities. • Coal Project Aba
Slide 19: Growth Strategy
Company Overview Growth Strategy Growth Strategy ▪ The Company’s platform enables material, organic growth opportunities through geographical and industry expansion while the Company’s integrated model encourages organic growth of individual divisions through participation in larger projects. ▪ The
Slide 20: Why Own Vertex?
Why Own Vertex? Key Reasons Increased Outsourcing by Stable, Recurring Firms to Provide Client Base Specialty Services Strong Client Focused & Regulatory Tailored Development Solutions and Momentum Proven Financial Emphasis on Results Environmental Stewardship Integration and Demonstrated Acquisitio
Slide 21: Contact Information
Contact Information: 121, 2055 Premier Way Sherwood Park, AB T8H 0G2 (780) 464-3295 TSXV : VTX www.vertex.ca 21
Slide 22: Appendix
APPENDIX www.vertex.ca 22
Slide 23: Management Experience: Case Study
Management Experience: Case Study Flint Energy Services 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 loc
Slide 24: Operating History of the Divisions of Vertex
Company Overview Operating History of the Divisions of Vertex The Company’s Management team has a successful track record for identifying accretive and strategic acquisition opportunities and sees further opportunity to be an industry consolidator in the fragmented marketplace. Company Timeline Acqu
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