Nwpx Infrastructure, Inc. · NASDAQ:NWPX
Nwpx Infrastructure — Northwest Pipe — Merger or Acquisition (February 2020)
15 slides from Nwpx Infrastructure's merger presentation, Feb 7, 2020
Slide 1: Northwest Pipe Acquires Geneva Pipe and Precast
.2) Northwest Pipe Company Northwest Pipe Acquires Geneva Pipe and Precast February 7, 2020
Slide 2: Today's Presenters
Today’s Presenters y Scott Montross Director, President and Chief Executive Officer Robin Gantt Chief Financial Officer Aaron Wilkins VP, Finance and Corporate Controller
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certain statements in this presentation, other than purely historical information, are “forward-looking statements’ within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21€ of the Securities Exchange Act of 1934, as amended that are based
Slide 4: Strategy
Strategy Northwest Pipe’s strategy is to expand into a broader water market in which we can capitalize on the unique attributes of our market position, capabilities, reputation, and our nationwide sales and distribution footprint Our goal is to create transformational growth and profitability in ord
Slide 5: Adjacent Market Acquisition Selection Process
Adjacent Market Acquisition Selection Process Key Acquisition Criteria Strong Financial Asset Attractive Strategic Performance Efficiency Growth Prospects Fit Over 100 Potential Targets throughout the Water and Waste Water Industries Availabilities in Our Target Size Range Precast Market Achieves th
Slide 6: Acquisition of Geneva Pipe and Precast
Acquisition of Geneva Pipe and Precast soni pian a -Teanaction closed January 31,2020 +$49.4 million in cash consideration (~7.5x EBITDA) +2019 Revenue: ~$43 million +2019 Adjusted EBITDA Margin (%): mid-teens Financials Synergies + Operational efficiencies across platform + Financed with cash on ha
Slide 7: Company Overview
Geneva Pipe and Precast Company Overview COMPANY OVERVIEW MAP & FACILITIES OVERVIEW * Geneva Pipe and Precast is a concrete pipe and precast concrete products manufacturer based in Utah Largest location, totaling over 28 acres Former corporate * Products used for waste and headquarters stormwater ap
Slide 8: Product Overview
Geneva Pipe and Precast Product Overview Concrete Pipe Box Culvert Source: Company data, News releases. Comprises a variety of concrete pipes used primarily for storm drains and sanitary sewers Square shaped concrete tunnels used for specialized applications Around monolithic base, cylinder riser se
Slide 9: Key Advantages of Geneva Pipe and Precast
Key Advantages of Geneva Pipe and Precast STRONG SEGMENT CHARACTERISTICS Y Strong brand reputation and relationships in the industry SEOSEERELEEIN * Attractive profit margins and growth ; Performance opportunities Y Scalable business with faster cash conversion cycle * $3.5-$4.0 Billion in the U. S.
Slide 10: Strong Fit Within Northwest Pipe's Existing Business
a Strong Fit Within Northwest Pipe’s Existing Business «= Fits with our existing strategic framework, allowing us to remain dedicated to and focused on our core competency in water infrastructure markets = Complements reinforced concrete pipe capabilities at our Tracy, CA facility (acquired in 2018
Slide 11: Acquisition Financing
Acquisition Financing Existing credit facility with Wells Fargo amended to stretch capacity from $60 million to $90 million, and extended one year through October 2024. + Line of credit extended to $74 million + Delayed draw term loan of $16 million available through March 2020 * Pro forma leverage
Slide 12: Financial results overview
Financial results overview The Northwest Pipe results presented are preliminary, unaudited and subject to change FOURTH QUARTER FULL YEAR + Continued strength in quarterly revenues, which approximate $72 million * Gross profit margin in excess of 23% on a GAAP basis * Excluding the impacts of the Sa
Slide 13: Points of Focus
Points of Focus 1. The successful integration of Geneva Pipe and Precast ¥ 100 day integration plan established v Successfully integrated Ameron Water Transmission Group 2. Improving performance by focusing on margin over volume ¥ Change started in 2016 and has shown expected results 3. Driving cost
Slide 14: Q&A
Slide 15: Thank you
Northwest Pipe — Merger or Acquisition (February 2020) on 6ix