Superior Plus Corp · TSX:SPB
Superior Plus — Scotia Capital High-Yield Conference 2011
26 slides from Superior Plus's conference presentation, Nov 29, 2011
Slide 1: Scotia Capital High-Yield Conference
TSX:SPB Scotia Capital High-Yield Conference November 29, 2011 www.superiorplus.com
Slide 2: Forward-Looking Statements and Non-IFRS Financial Measures
Forward-Looking Statements and Non-IFRS Financial Measures Certain information included in this presentation is forward-looking, within the meaning of applicable Canadian securities laws. Forward- looking information includes, without limitation, statements regarding the future financial position, b
Slide 3: Business Overview
Business Overview Superior Plus – „Three Businesses – ONE Investment‟ Energy Services Specialty Chemicals Construction Products Distribution High-yielding corporation – Converted December 31, 2008 Focused on improving efficiency and organic growth generation Attractive acquisition and
Slide 4: Corporation Structure
Corporation Structure Convertible Shareholders Debentureholders Superior 99.9% 100% 2003 US Notes, Credit Facility, Senior Debentures Superior General Partner Inc. (GP) 0.1% 0.1% 99.9% Superior Energy Superior Plus LP Management Gas LP(1) 100% 99.9% 1% 0.1% 99% Superior Energy Superior International
Slide 5: EBITDA From Operations
EBITDA From Operations 2010 2011 (1) $238.5 million $267.5 million $20.0 million $26.4 million 8% 11% $101.5 million $135.0 million 43% 50% $112.5 million $110.6 million 42% 46% Energy Services Construction Products Distribution Specialty Chemicals (1) Based on midpoint of 2011 Financial Outlook 5
Slide 6: Energy Services - Overview
Energy Services - Overview Canadian propane distribution Canada‟s largest retail supplier of propane Full service offering U.S. Northeast refined fuels Significant heating oil, propane and distillates platform in the Northeastern U.S. Full service offering Supply and portfolio manageme
Slide 7: Energy Services Diversification
Energy Services Diversification ‘The Energy Services business is well diversified across various geographic and end-use markets’ 10% 7% 4% Canadian Propane Distribution U.S. Refined Fuels Wholesale Supply Management 30% Fixed-Price Energy Services Other Services 49% Based on gross profit by business
Slide 8: Energy Services Opportunities
Energy Services Opportunities Canadian Propane Customer Growth Initiatives Continued focus on sales and marketing to attract and retain customers Build and execute on a plan to leverage our safety expertise Target existing customers and further penetrate with service offerings Productivity
Slide 9: Energy Services Opportunities U.S. Refined Fuels
Energy Services Opportunities U.S. Refined Fuels Pursue propane and propane service expansion opportunities across all markets in the Northeastern U.S. Cross-selling opportunities in conjunction with the Fixed- Price Energy Services business (electricity and natural gas) offerings to be introduc
Slide 10: Energy Services Fundamentals
Energy Services Fundamentals Customer conservation continues due to economic uncertainty, high commodity prices and improved energy efficiency Industrial/oilfield propane demand continues to be strong in Canada U.S. Northeast heating oil demand continues to decline but propane and commercial v
Slide 11: Specialty Chemicals - Overview
Specialty Chemicals - Overview Manufacturer and supplier of specialty chemicals and provider of technology related services Second-largest producer of sodium chlorate in North America and Worldwide with an estimated production capacity of 26% and 15%, respectively Third largest producer of Pot
Slide 12: Specialty Chemicals Opportunities
Specialty Chemicals Opportunities Continue to optimize existing chemical facilities Chlorate industry consolidation Exploring international expansion opportunities Leverage chlorine dioxide technology Leverage strategic partnerships e.g. South America Port Edwards KOH expansion opportuni
Slide 13: Specialty Chemicals – Market Fundamentals
Specialty Chemicals – Market Fundamentals Chlorate Pulp mills running at high utilization rates – chlorate market is tight Some recent softness in pulp markets Chlorate pricing will benefits from contract renewals Chloralkali 2011 operating rates in the mid-80‟s Demand remains strong
Slide 14: Construction Products Distribution - Overview
Construction Products Distribution - Overview Leading distributor of Specialty Walls and Ceilings Products (“GSD”) and Commercial and Industrial Insulation in Canada and the U.S. (“C&I”) End-Use Markets Commercial Residential Industrial Productivity partner with installing contractors pr
Slide 15: End-Use Market Diversification
End-Use Market Diversification ‘The Construction Products Distribution business is diversified across geographic and end-use markets’ 15% 28% Commercial – New Commercial – Renovation Residential Industrial 41% 16% % based on 2010 Revenue by Segment 15
Slide 16: Improvement Opportunities
Improvement Opportunities Product line expansion: Full walls and ceilings expansion in architectural ceiling locations C+I insulation in walls and ceilings locations Evaluating new products line i.e roofing supply Geographic growth and consolidation: Greenfield opportunities Selective
Slide 17: CPD Market Fundamentals
CPD Market Fundamentals North American commercial renovation market showing modest signs of improvement in 2011 Industrial business – modest growth in 2011 Housing starts in Canada remain stable – supported by demographic demand levels, better housing market U.S. new housing stabilized at +/
Slide 18: Financial Overview
TSX:SPB Financial Overview www.superiorplus.com
Slide 19: 2011 and 2012 Financial Outlook
2011 and 2012 Financial Outlook 2011 2012 Energy Services 125-145 - Specialty Chemicals 105-120 - Construction Products Distribution 15-25 - Adjusted Operating Cash Flow per share (1)(2) $1.55-$1.90 $1.55-$1.90 (1) Superior‟s 2010 and 2011Financial Outlook is as provided in Superior‟s 2010 third qua
Slide 20: Debt Management
Debt Management Dividend reduced to $0.05 per share per month effective November 2011 to accelerate debt repayment plan Objective to reduce total debt to EBITDA to 3.5X‟s to 4.0X‟s As at December 31, 2010, total debt at 6.0X‟s and senior at 2.6X‟s Reduced at September 30, 2011 to total debt
Slide 21: Debt Management Continued
Debt Management Continued (all amounts per share unless otherwise indicated) 2012 financial outlook AOCF per share – midpoint $1.72 Maintenance capital expenditures (0.20) Capital lease obligation repayments (0.15) Cash flow before growth capital $1.37 Port Edward‟s 2012 one-time environmental (0.10
Slide 22: Term Debt Repayment Profile
Term Debt Repayment Profile As at September 30, 2011 ($ million) (Note 1) Reflects the redemption of $75 million and $50 million 2012 Debentures on November 7, 2011 and December 15, 2011 (Note 2) Syndicated Credit Facility excludes $32.9 million in Letters of Credit 22
Slide 23: Corporate – Financial Position
Corporate – Financial Position Superior‟s maturity schedule is being actively managed 2012 Debenture maturity – remaining obligation of $50 million to be redeemed during 2012 in normal course. Superior redeemed $75 million in November and an additional $50 million in December 2011 Early redemp
Slide 24: Credit Rating Summary
Credit Rating Summary DBRS Corporate Reporting BB (high) Stable Senior Secured BB (high) Stable Senior Unsecured BB (low) Stable S&P Corporate Rating BB Stable Senior Secured BB (+) Senior Unsecured BB (-) Credit Ratios as at September 30, 2011 Consolidated Secured/EBITDA ratio (1) 2.1X Total Debt/E
Slide 25: Financial Summary
Financial Summary Focused debt reduction plan Businesses are performing to expectations Asset and cash flow diversification Well positioned for the U.S. economic recovery - CPD Excellent opportunities in all of the business segments 25
Slide 26: Questions & Answers
TSX:SPB Questions & Answers Suite 1400, 840 – 7 Avenue S.W. Calgary, Alberta T2P 3G2 Tel: 403-218-2970 Fax: 403-218-2973 Toll Free: 1-866-490-7587 www.superiorplus.com www.superiorplus.com 26
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