Cervus Equipment — Q2 2021 Earnings Presentation
9 slides from Cervus Equipment's earnings presentation, Aug 16, 2021
Slide 1: Cervus Equipment Q2 2021 Results
CERVUS EQUIPMENT Q2 2021 RESULTS August 16, 2021
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of applicable securities laws (“forward-looking statements”). These statements include, but are not limited to, statements about the Company’s objectives, strategies and initiatives, financial perform
Slide 3: Cervus Q2 2021 Results
CERVUS Q2 2021 RESULTS Adjusted NIBT Increased $7 Million to $15 Million – A New Second Quarter Record Q2 2021 Overview Equipment gross profit increased $9.7 million, on increased demand and supply shortages. Product support gross profit increased $2.9 million, with parts, service and rental and
Slide 4: Balance Sheet Overview
BALANCE SHEET OVERVIEW Strong Balance Sheet with $170 Million of Financing Available Overall inventory increased $8 million from Q2 2020, comprised of a $6 million increase in Total Inventory Available Liquidity Agriculture and a $3 million 350 180 170 increase in Transportation 293 301 160 151
Slide 5: Product Support Provides Stability
PRODUCT SUPPORT PROVIDES STABILITY Product Support Growth and Cost Efficiencies Improve Absorption Stability in Product Support Revenue Across Cycles Improved Absorption Across All Divisions 100 110% 90 0.9 0.1 1.7 87.5 3.4 105% 81.1 0.6 (0.3) 105% 80 100% 102% 70 Absorption Percentage 95% 98% 60 $
Slide 6: Inventory Turns & Return on Invested Capital
INVENTORY TURNS & RETURN ON INVESTED CAPITAL Disciplined Allocation of Capital Focus on Inventory Management Drives Turn Ratio Disciplined Inventory Management Stabilizes ROIC 4.00 30.0% 3.73 3.44 3.42 23.8% 3.50 25.0% 3.00 20.0% Target 20% Inventory Turns 2.50 2.31 2.37 18.2% 2.23 15.0% 13.7% ROIC
Slide 7: Industry Outlook: Agriculture
INDUSTRY OUTLOOK Supply Chain Constraints and Arid Weather Weigh on Canadian Outlook, Australia and New Zealand Maintain Momentum Agriculture Canada Increases in U.S. and Canadian equipment orders, compounded by supply chain disruptions, have resulted in delayed deliveries and extended lead times
Slide 8: Industry Outlook: Transportation and Industrial
INDUSTRY OUTLOOK Strong Industry Demand and Supply Chain Disruptions Expected to Continue Transportation Strong customer demand is reflected in our order backlog with substantially all of our new truck inventory committed to customers (up from ~50% on June 30, 2020). PACCAR estimates 2021 North
Slide 9: Thank You
facebook.com/cervusequipment THANK YOU twitter.com/cervusequipment linkedin.com/company/cervus-equipment instagram.com/cervusequipment