Dexterra Group, Inc. · TSX:DXT
Dexterra — Q2 2022 Earnings Presentation
20 slides from Dexterra's earnings presentation, Aug 10, 2022
Slide 1: Q2 2022 Results Analyst & Investor Call
Q2 2022 Results Analyst & Investor Call August 10, 2022
Slide 2: Cautionary Statement
Cautionary Statement In this presentation, all amounts are in Canadian dollars, unless otherwise indicated. Any graphs, tables or other information in this presentation demonstrating the historical performance of Dexterra Group Inc. (“Dexterra Group”) or of any of its business units contained in thi
Slide 3: Bill McFarland, Board of Directors Chair
Bill McFarland Board of Directors Chair 3
Slide 4: John MacCuish, Chief Executive Officer
John MacCuish Chief Executive Officer 4
Slide 5: Q2 2022 Dexterra Group Progress
Q2 2022 Dexterra Group Progress ◦ Q2 revenue $234 million and Adjusted EBITDA $13.6 million ◦ Revenue boost through IFM acquisitions and WAFES ◦ Modular recovery plan progressing and return to profitability in Q3 2022 ◦ Managing supply chain, inflation and labour shortages across portfolio ◦ EBITDA
Slide 6: Integrated Facilities Management
Integrated Facilities Management A growing Support Services business with an expanding footprint and diversified client base. Revenue by End-Market - 2022 YTD ◦ New president hired – Sanjay Gomes ◦ Dana Hospitality and TRICOM acquisitions: Others 3% ◦ Margin growth will improve with autumn Hotel, Le
Slide 7: Workforce Accommodations, Forestry, Energy Services
Workforce Accommodations, Forestry, Energy Services A foundational Support Services business driven by natural resources fundamentals ◦ New President - Jeff Litchfield ◦ Q2 revenue growth of $32 million vs Q2 2021 and Revenue by service type - 2022 YTD $4 million vs Q1 2022 ◦ Strong camp occupancy a
Slide 8: Modular Solutions
Modular Solutions An developing manufacturing & services business positioned for growth & long-term profitability ◦ Q2 Profitability hurt by cost inflation of over 10% on Revenue by End-Market - 2022 YTD fixed priced contracts ◦ Return to profitability starting in Q3 2022 Education 12% ◦ EBITDA for
Slide 9: Drew Knight, Chief Financial Officer
Drew Knight Chief Financial Officer 9
Slide 10: Q2 2022 Overall Results
Q2 2022 Overall Results Revenue Adjusted EBITDA (ex CEWS) $234 million $224 million $18 million $14 million $17 million 65.2 3.3 64.2 $174 million 4.0 4.0 14.8 Adjusted EBITDA ($M) 119.1 38.8 16.3 16.0 115.1 Revenue ($M) 87.5 49.6 48.2 0.4 4.4 43.3 (3.0) (3.4) 1.4 (0.9) (4.3) (3.6) Q2 2022 Q1 2022 Q
Slide 11: Q2 2022 Results by Segment
Q2 2022 Results Q2 IFM Q2 WAFES Q2 MODULAR SOLUTIONS 9.2% 65.2 64.2 119.1 48.2 Revenue and Adjusted EBITDA ($M) Revenue and Adjusted EBITDA ($M) Revenue and Adjusted EBITDA ($M) 115.1 49.6 17.0% 43.3 87.5 8.6% 1.0% 38.8 13.7% 13.9% 6.1% 6.2% (6.1)% 0.4 4.4 (3.0) 16.3 16.0 14.8 4.0 4.0 3.3 Q2 2022 Q1
Slide 12: Financial Leverage & Liquidity
Financial Leverage & Liquidity • Financial Position and liquidity are strong with $61.2 unused capacity on bank lines • Working capital investment lowered with reduction in negotiated Holdbacks • Conversion of EBITDA to Free Cash Flow expected to exceed 50% for 2022 • Leverage expected to be approx.
Slide 13: John MacCuish, Chief Executive Officer
John MacCuish Chief Executive Officer 13
Slide 14: Path Forward
Path Forward: Back half of 2022: IFM o Sales to approximate $1 billion revenue on an annualized basis 50%-60% o EBITDA strong growth with a return to Modular profitability and continued strong growth in IFM and WAFES o Strong dividend and conversion of EBITDA to free cash flow WAFES 25%-30% Integrat
Slide 15: Question & Answer Period
Question & Answer Period Questions (?) Lo
Slide 16: APPENDIX I - Supporting Charts
APPENDIX I - Supporting Charts 16
Slide 17: Revenue Reconciliation vs Q2 2021
Appendix I Revenue Reconciliation vs Q2 2021 Consolidated Revenue (in millions) 250.0 31.6 1.4 0.9 233.9 26.4 200.0 173.6 150.0 100.0 50.0 — Q2 2021 IFM WAFES Modular Solutions Corporate Q2 2022 17
Slide 18: Adjusted EBITDA (excluding CEWS) vs Q2 2021
Appendix I Adjusted EBITDA (excluding CEWS) vs Q2 2021 Consolidated EBITDA (in millions) 25.0 1.4 20.0 0.7 18.3 15.0 0.7 13.6 (7.5) 10.0 5.0 — Q1 2021 IFM WAFES Modular Solutions Corporate and Inter- Q1 2022 segment eliminations 18
Slide 19: Revenue Reconciliation vs Q1 2022
Appendix I Revenue Reconciliation vs Q1 2022 Consolidated Revenue (in millions) 250.0 6.4 233.9 0.9 4.0 224.0 (1.4) 200.0 150.0 100.0 50.0 — Q1 2022 IFM WAFES Modular Solutions Corporate Q2 2022 19
Slide 20: Adjusted EBITDA vs Q1 2022
Appendix I Adjusted EBITDA vs Q1 2022 Consolidated EBITDA (in millions) 20.0 17.0 — 0.3 15.0 13.6 (3.5) (0.2) 10.0 5.0 — Q1 2022 IFM WAFES Modular Solutions Corporate and Inter- Q2 2022 segment eliminations 20