Concrete Pumping Holdings, Inc. · NASDAQ:BBCP
Concrete Pumping — SPAC Merger (September 2018)
38 slides from Concrete Pumping's SPAC merger presentation, Sep 7, 2018
Slide 1: Investor Presentation September 2018
Investor Presentation September 2018
Slide 2: Important Information
Important Information This investor presentation (“Investor Presentation”) is for informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any equity, debt or other financial instruments of Industrea Acquisition Corp . (
Slide 3: Leadership Team
_____________________________________________________________________________________________________________________________ ___ ________________________________________________________ Note: One or more of the Argand investment team members were substantially involved in the acquisition, managemen
Slide 4: CPH Overview
Company Overview CPH Overview Leading concrete pumping provider in both the U.S. (Brundage - Bone) and U.K. (Camfaud) Leading concrete waste management service provider in the U.S. (Eco - Pan) ~120 operating branches 600+ highly trained operators 935+ equipment units (all owned) No bondi
Slide 5: Investment Highlights
7.2x 9.7x 11.8x 0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x 14.0x CPH Specialty Rental Specialty Waste Services Strong Fundamentals Highly Attractive Valuation x Attractive industry dynamics – commercial, environmental and legislative tailwinds x Secular trend towards concrete pumping – faster, safer and h
Slide 6: Revenue Breakdown by Region and Project Size
20% 17% 21% 18% 24% Central Mountain South Southeast West 6% 26% 14% 18% 17% 9% 9% Under $500 $500-1,000 $1,000-1,500 $1,500-2,500 $2,500-5,000 $5,000-10,000 $10,000+ No Project Concentration ____________________________________________________________________________________________________________
Slide 7: Significant Advantages of Concrete Pumping
Significant Advantages of Concrete Pumping Crane & Bucket Wheel - barrow Concrete Placement Methods Tailgating Speed and Efficiency Access / Precision of Placement Safety Consistent Placement Advantages of Concrete Pumping _____________________________________________________________________________
Slide 8: Large, Growing Market Supported by Compelling Tailwinds
Concrete Pumping Gaining Share (% of total U.S. concrete placement that is pumped) Large, Growing Market Supported by Compelling Tailwinds U.S. Concrete Production (Millions of cubic yards) 396 406 390 404 431 458 457 415 352 259 257 266 290 300 325 336 351 351 '00 '01 '02 '03 '04 '05 '06 '07 '08 '0
Slide 9: Market Leader in U.S. and U.K.
Market Leader in U.S. and U.K. U.S. Market Position (Percent of Concrete Pumping Spend) U.K. Market Position (Percent of Concrete Pumping Spend) 34% 66% ~$140m Others Key Highlights Most competitors serve only local areas and lack the breadth of equipment (typical fleet of ~5 - 10 pumps) Few reg
Slide 10: CPH Competitive Advantages
CPH Competitive Advantages Compelling Customer Value Proposition Increasing Importance to Customers Reliability Track record of quality and on - time completion Wide Range of Equipment Fleet of boom pumps ranges from 17 to 63 meters Also maintains fleet of stationary pumps, placing booms, tele
Slide 11: Eco-Pan – A Unique, Disruptive Environmental Solution
Eco - Pan – A Unique, Disruptive Environmental Solution ______________________________________________________________________________ Note: Eco - Pan financial profile reflects historical results and may not be indicative of future returns. 10 Stringent regulation on washout of concrete pump truc
Slide 12: Framing the CPH Growth Opportunity
4 3 2 Framing the CPH Growth Opportunity 1 Scalable platform that is positioned for continued strong organic and strategic growth Capture Greater Market Share Optimize Pricing Expand Eco - Pan Pursue Acquisitions 11
Slide 13: Capture Greater Market / Wallet Share
0% 50% 100% 1 2 3 4 5 6 7 8 9 10 Pumping Customers Capture Greater Market / Wallet Share 1 Drivers of Growth x Favorable market tailwinds – customers posting record backlogs x CPH customers capturing greater share x Increasing project complexity x Ability to charge premium pricing for superior quali
Slide 14: Massive Infrastructure Opportunity in the U.S. and U.K.
Massive Infrastructure Opportunity in the U.S. and U.K. 13 $77 billion HS2 project to begin autumn 2018 Highly concrete intensive, with a very large percentage requiring pumping CPH’s U.K. segment (Camfaud) is well positioned to receive a large share given its national footprint and fleet capa
Slide 15: Track Record of Pricing Optimization
Track Record of Pricing Optimization Drivers of Pricing Optimization Faster, Safer & Higher Quality Advantages of concrete pumping ~90 mins Time before ready - mix concrete perishes ~3 mins Approximate time for concrete pumping to empty ready - mix truck ~10% Ready - mix concrete costs (as % of over
Slide 16: Eco-Pan – Market Opportunity
15 Eco - Pan – Market Opportunity 3 Eco - Pan U.S. Market Opportunity Total US Market Opportunity $850m+ $24m FY17 Eco - Pan Revenue (Current Penetration of ~3%) $826m+ Large Market for Continued Penetration Washout Method Alternatives Washout Pits Roll - Off No Solution Washout Pans / Management Se
Slide 17: Eco-Pan – Compelling Economics & Strong Barriers to Entry
Eco - Pan – Compelling Economics & Strong Barriers to Entry 3 16 Protected by Strong Barriers to Entry x Cross - sell to CPH’s large, complementary concrete pumping customer base x Investment in high - quality pans and service (designed by industry operators) x Substantial brand equity and awareness
Slide 18: Proven M&A Platform
Proven M&A Platform 4 _____________________________________________________________________________________________________________________________ ___ __________ Note: Figures above are indicative of historical acquisition results. There can be no assurances that future acquisitions wil l o ccur or
Slide 19: Financial Overview
Concrete Pumping Holdings, Inc. Financial Overview
Slide 20: Pro Forma Financial Summary
$12 $19 $13 $19 $18 $17 $11 $10 $6 $8 FY2015 FY2016 FY2017 FY2018E FY2019E Net Maintenance Growth _____________________________________________________________________________________________________________________________ ___ ______________________________________ Note: CPH has an October fiscal y
Slide 21: Highly Variable Cost Structure
FY 2017 Approximate Variable Component Cost of Sales: Personnel $63.4 85% Fuel 10.4 95% Parts, repairs & maintenance 21.9 95% Insurance 7.1 70% Other 6.0 80% Total Cost of Sales $108.9 87% % of Revenue 48.9% SG&A Expenses: Personnel $24.5 20% Facilities 3.6 10% Auto 2.1 20% Travel & entertainment 2.
Slide 22: Strong Unit Economics Across Both Concrete Pumping and Eco-Pan
Strong Unit Economics Across Both Concrete Pumping and Eco - Pan 21 _____________________________________________________________________________________________________________________________ ___ ________________________________________________________ Note: Unit economics and return profile refle
Slide 23: Robust, Specialized Fleet of Mobile Pumping Equipment
Robust, Specialized Fleet of Mobile Pumping Equipment 22 ________________________________________________________________________ Note: Fleet profile as of April 30, 2018. Includes impact of April 2018 O’Brien acquisition. CPH’s Approach to Fleet Management Acquire new equipment to replace equipme
Slide 24: Transaction Overview
Concrete Pumping Holdings, Inc. Transaction Overview
Slide 25: Transaction Overview
Transaction Overview Industrea Acquisition Corp. will acquire Concrete Pumping Holdings, a leading provider of concrete pumping services and concrete waste management services from Peninsula Pacific, CPH Management, and Former CPH Employee Shareholders (collectively the “Sellers”) Implied Enterp
Slide 26: Pro Forma Capitalization at Close
Pro Forma Capitalization at Close Market Capitalization 4 $452.1 Net Debt (2.5x FY 2019E Adjusted EBITDA) $243.5 Implied Enterprise Value $695.6 FY 2019E Adjusted EBITDA Multiple ($97m) 7.2x _____________________________________________________________________________________________________________
Slide 27: Attractive Financial Profile and Valuation Versus Peers
7.2x 12.6x 10.4x 10.2x 8.8x 8.6x 8.5x 8.4x 15.5x 13.7x 11.2x 10.4x 10.3x 9.9x 0.0x 10.0x 20.0x 9.7x 27.9x 17.7x 13.8x 13.5x 11.1x NA NA 20.7x 19.8x 17.9x 16.7x 15.6x 12.6x 0.0x 10.0x 20.0x 30.0x _________________________________________________________________________________________________________
Slide 28: Attractive Financial Profile and Valuation Versus Peers (continued)
9% 7% 0% (0%) (1%) (2%) (5%) NA 8% 0% (1%) (5%) (8%) (11%) (20%) 0% 20% 35% 39% 37% 32% 28% 26% 21% 10% 28% 25% 24% 23% 22% 15% 0% 20% 40% 60% CPH’s valuation is at a significant discount to its peers; while its operating metrics compare favorably Attractive Financial Profile and Valuation Versus Pe
Slide 29: Appendices
Concrete Pumping Holdings, Inc. Appendices
Slide 30: CPH Independent Directors
Former MD & CEO of Bradken (ASX:BKN); Led management buyout of Bradken in 2001 25+ years of management and leadership experience in raw material production and processing, supply and logistics and steel manufacturing Brian Hodges 2 CPH Independent Directors 29 Former CEO and President of Lafar
Slide 31: CPH Independent Directors (continued)
CPH Independent Directors (continued) CEO of Industrea Partner & Senior Managing Director of Argand Partners Former President of Castle Harlan Director of Oase Former Director of Shelf Drilling (OSLO: SHLF), Pretium Packaging, IDQ Holdings, Securus Technologies, Baker & Taylor, Polypipe (L
Slide 32: Credit Facilities Summary
Credit Facilities $350m Term Loan Facility and $60m ABL Revolver Interest Rate - Term Loan Facility: Libor + 450bps - ABL Revolver: Libor + 175 - 225bps based on leverage levels Tenor - Term Loan Facility: 7 Years - ABL Revolver: 5 Years Term Loan Amortization 0.25% per quarter, bullet at maturity.
Slide 33: Convertible Perpetual Preferred Stock PIPE Terms
Principal $25m Tenor Perpetual Dividend Zero Offering 2,450,980 shares at $10.20 per share Holder Conversion Right The holder of the Preferred Stock may elect to convert its Preferred Stock into shares of Common Stock at a 1:1 ratio at any time six months after the Closing Date. The total number of
Slide 34: Publicly Traded Comparable Company Metrics
Publicly Traded Comparable Company Metrics 33 _____________________________________________________________________________________________________________________________ ___ ____________________________________________________________________________ Source: Information for companies other than CP
Slide 35: Reconciliation of Non-GAAP Measures
Reconciliation of Non - GAAP Measures 34 _____________________________________________________________________________________________________________________________ ___ __________________________________________________________________ Note: CPH’s U.K. segment (Camfaud) was acquired in November 20
Slide 36: Select CPH Marquee Projects
Select CPH Marquee Projects 35 Broadway Bridge Other Select Concrete Pumping Projects Crossrail Liverpool Street Station Little Rock, AR Massman Construction contract for Broadway Bridge replacement project 2,786 foot - long concrete and steel arch bridge Brundage - Bone laid 1,000 yards of
Slide 37: CPH in Action
CPH in Action 36 Brundage - Bone, Pacific Northwest Highway Project Brundage - Bone, Salt Lake City Airport Terminal Brundage - Bone, Seattle Construction Mat Pour Brundage - Bone, University of Tennessee Brundage - Bone, Westin Denver Airport Brundage - Bone, Concrete Boom Pump Song C
Slide 38: Holdings
HOLDINGS
Concrete Pumping Holdings — SPAC Merger (September 2018) on 6ix