Divestco — Investor Presentation (December 2005)
30 slides from Divestco's investor presentation, December 2005
Slide 1: Investor Relations Presentation December 2005
Divestco Inc. Investor Relations Presentation December 2005 www.divestco.com TSX-V: DVT
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements, including statements regarding the business and anticipated financial performance of Divestco Inc. “(the Company”). These forward- looking statements involve known and unknown risks, uncertainties and other factors which may cause
Slide 3: Investment Highlights
Investment Highlights • Attractive valuation compared to peers • Demonstrated growth profile • Numerous growth initiatives • Strong customer base • Solid recurring revenue base • Significant insider ownership www.divestco.com TSX-V: DVT
Slide 4: Officers & Directors
Officers & Directors Stephen Popadynetz - CEO & Director Terry Barnhart - President Roderick Chisholm - Chief Financial Officer John Brussa - Chairman (1)(2) Wade Brillon - Director M. Scott Ratushny - Director(1)(3) Edward L. Molnar - Director(2) Brent Gough - Director(1)(2)(3) 1) Member of Audit C
Slide 5: Company Snapshot
Company Snapshot •Stock Symbol : DVT (TSX-V) •Shares Outstanding: 29,900,000 •Insider Ownership: 35% •Employees: 320 •52 Week High/Low: $3.21/0.85 •Current Share Price: $2.80 •Current Market Cap: $85,000,000 •Enterprise Value1: $95,000,000 1) Market Capitalization + Preferred Stock + Funded Debt - C
Slide 6: Geographic Locations
Geographic Locations • Calgary • Houston • Denver • Edmonton • Vancouver www.divestco.com TSX-V: DVT
Slide 7: Competitive Advantage
Competitive Advantage •Geological & Geophysical Software •Data •Technical Services •Seismic Brokerage •Consulting Services (New) Divestco offers superior software, services and data to the oil and gas industry. By implementing a strategy of integration between our offerings, we are creating a unpara
Slide 8: Integrated Software
Integrated Software www.divestco.com TSX-V: DVT
Slide 9: Sample Customer Profile
Sample Customer Profile www.divestco.com TSX-V: DVT
Slide 10: Financial Highlights By Year
Financial Highlights By Year 30 Revenue 25 EBITDA 20 $ Millions Net Income 15 Funds from 10 Operations 5 0 2002 2003 2004 www.divestco.com TSX-V: DVT
Slide 11: Financial Highlights - 2004
Financial Highlights - 2004 For the year ended Dec 31 (000’s, except per share amounts) 2004 2003 % Change Revenue $25,912 $15,043 72% EBITDA 6,745 1,697 297% Operating Income 3,520 153 2201% Net Income 3,948 719 449% EPS (basic & diluted) 0.16 0.04 300% Funds from operations 6,245 1,629 283% Per sh
Slide 12: Financial Highlights – Q3 2005
Financial Highlights – Q3 2005 10 Revenue 8 EBITDA $ Millions 6 Net Income 4 Funds from Operations 2 0 Q3 2004 Q3 2005 www.divestco.com TSX-V: DVT
Slide 13: Financial Highlights – Q3 2005
Financial Highlights – Q3 2005 For the Quarter ended Sep 30 ($000’s, except per share amounts) 2005 2004 % Change Revenue $7,944 $5,407 47% EBITDA 2,901 1,211 140% Operating Income 1,985 548 262% Net Income 1,312 622 111% EPS (basic & diluted) 0.05 0.02 150% Funds from Operations 2,871 1,134 153% Pe
Slide 14: Financial Highlights – YTD Sep 2005
Financial Highlights – YTD Sep 2005 30 Revenue 25 EBITDA 20 $ Millions Net Income 15 Funds from 10 Operations 5 0 YTD Sep 04 YTD Sep 05 www.divestco.com TSX-V: DVT
Slide 15: Sources of Revenue
Sources of Revenue F’04 YTD Q3 F’05 $26MM $26MM 9% 14% 20% 28% 14% 19% 39% 57% Services Data Software Brokerage www.divestco.com TSX-V: DVT
Slide 16: Financial Highlights – YTD Sep 2005
Financial Highlights – YTD Sep 2005 For the Nine Months ended Sep 30 ($000’s except per share amounts) 2005 2004 % Change Revenue $25,880 $17,678 46% EBITDA 10,830 3,577 203% Operating Income 5,457 1,478 269% Net Income 3,512 1,812 94% Per share (basic & diluted) 0.14 0.07 100% Funds from Operations
Slide 17: Financial Highlights by Quarter
Financial Highlights by Quarter 10 Revenue 8 EBITDA 6 $ Millions Net Income 4 Funds from Operations 2 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2003 2004 2005 www.divestco.com TSX-V: DVT
Slide 18: Growth Through Acquisition: Petro Data Source
Growth Through Acquisition Acquired Petro Data Source, Inc. (PDS) on April 27, 2005 • Adds well header and production data for more than 4.3 million wells located in most of the producing states in the U.S., including federal waters of the Gulf of Mexico and offshore California and Alaska • Divestco
Slide 19: Growth Through Acquisition: Drilling Records
Growth Through Acquisition Acquired Drilling Records on September 2, 2005 • Adds a unique drilling data set compiled since 1958 in Canada and 1975 in the U.S. Numerous integration opportunities with Divestco’s suite of software products and PDS’ well and production database: Drilling Studies – Pro
Slide 20: Growth Through Acquisition: Focus Integrated Solutions
Growth Through Acquisition Acquired Focus Integrated Solutions on October 5, 2005 •Complements existing DVT consulting services and adds a separate revenue vertical. • Key services added to the Divestco fold: ¾Business Consulting ¾Enterprise Resource Planning (ERP) ¾Customer Relationship Management
Slide 21: Growth Through Acquisition: Laser Software
Growth Through Acquisition Announced acquisition of Laser Software Limited on October 31, 2005 • Adds a well-known and well-respected land administration software product to Divestco’s suite of products called LandRiteTM • Adds an Accounting Services Bureau, ideal for start-up oil and gas companies.
Slide 22: Divestco Seismic Database
Divestco Seismic Database www.divestco.com TSX-V: DVT
Slide 23: Seismic Data Growth: 2004
Seismic Data Growth: 2004 $ 9.0M Total Seismic Acquired Kelly Lakes 3D 269 Square Km’s www.divestco.com TSX-V: DVT
Slide 24: Seismic Data Growth: 2005
Seismic Data Growth: 2005 $ 64.0M Total Seismic Acquired Halfmoon 3D 700 Square Km’s Graham Creek 3D 215 Square Km’s Wasp 3D 236 Square Km’s Windsor Creek 3D 360 Square Km’s Red Willow 3D 128 Square Km’s www.divestco.com TSX-V: DVT
Slide 25: Seismic Data Growth: 2006
Seismic Data Growth: 2006 $ 69.0M In Seismic to be Acquired Upper Cutbank 3D Tremblay 3D 312 Square Km’s 360 Square Km’s Kamisak Lake 3D 120 Square Km’s Lockhorn 3D 410 Square Km’s Red Willow East 3D 215 Square Km’s Red Willow North 3D 102 Square Km’s Calahoo Lake 3D 113 Square Km’s www.divestco.com
Slide 26: Seismic Data Growth: 2006
Seismic Data Growth: 2006 Upon completion of our 2005/2006 seismic programs, we will have: • >52,000 Km’s of 2D Data • >5,700 Square Km’s of 3D Data • >$190MM in shot and purchased seismic since 2003 • 2nd only to EnCana in amount of seismic acquired www.divestco.com TSX-V: DVT
Slide 27: 2005 Forecast
2005 Forecast 40 35 Revenue 30 EBITDA 25 $ Millions Funds from 20 Operations 15 Net Income 10 5 0 2002 2003 2004 2005 www.divestco.com TSX-V: DVT
Slide 28: Trading Volume and Share Price Performance
Share Price Performance (1 Year) $3.50 500,000 $3.00 400,000 $2.50 Trading Volume 300,000 Share Price $2.00 200,000 $1.50 100,000 $1.00 $0.50 0 5-Dec-04 6-Mar-05 5-Jun-05 4-Sep-05 4-Dec-05 www.divestco.com TSX-V: DVT Provided by Blackmont Capital Inc.
Slide 29: Peer Comparison
Peer Comparison1 Enterprise P/E P / CF EV / EBITDA EV / Revenue (2) Value Ticker (C$MM) LTM 2006E(3) LTM 2006E(3) LTM 2006E(3) LTM 2006E(3) (4 Computer Modelling Group Ltd. CMG.TO $ 41.99 14.4x N/A 12.6x N/A 7.2x N/A 2.6x N/A Kelman Technologies Inc. KTI.TO $ 19.72 NMF N/A 9.3x N/A 4.8x N/A 0.9x N/A
Slide 30: Thank You for Your Interest
Thank You for Your Interest For further information, please contact: Stephen Popadynetz, CEO (403) 218-6466 or stephen@divestco.com or Roderick Chisholm, CFO (403) 218-6450 or rod.chisholm@divestco.com or investor.relations@divestco.com www.divestco.com TSX-V: DVT