Mccoy Global Inc. · TSX:MCB
Mccoy Global — Investor Presentation (October 2016)
26 slides from Mccoy Global's investor presentation, October 2016
Slide 1: Investor Presentation October 2016
Investor Presentation October 2016
Slide 2: Forward Looking Information
Forward Looking Information This presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect“, "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should",
Slide 3: Connection Make-Up and Data Collection Technologies
Connection Make-Up and Data Collection Technologies Making-up reliable connections to support well integrity Hydraulic Power Tongs Typically used by service weCATTTM companies to apply torque to Wireless data make-up / break-out tubular monitoring of torque, on the rig; also included in turns and ho
Slide 4: McCoy's technologies
Connection Integrity McCoy’s technologies control and monitor connection make-up, and collect data to verify connection integrity 4
Slide 5: Global Presence
Global Presence Corporate Head Office Production Facilities R&D Center Western Hemisphere Optimizing global and regional Regional Centers customer support throughout the Eastern Hemisphere Regional Centers equipment lifecycle 5
Slide 6: Global Clients
Global Clients Tubular & Service Threading Companies Manufacturers Contract Rig Drillers Manufacturers 6
Slide 7: Competitive Advantages
Competitive Advantages Broadest platform of Global service and Installed product tubular make-up support base equipment in the market Investing in R&D to Engineered solutions for develop market leading complex applications technologies 7
Slide 8: Operating Environment
Operating Environment World Rig Count WTI ($) 2200 55 2000 49 1800 43 1600 37 1400 31 1200 25 Rig count data from Baker Hughes 8
Slide 9: Operating Environment: Backlog
Operating Environment World Rig Count WTI ($) 2200 55 2000 49 Backlog ($ millions) 1800 43 1600 37 9.1 6.0 1400 5.0 5.3 31 1200 25 9
Slide 10: Quarterly Results ($millions)
Quarterly Results ($millions) Revenue Gross Profit 23.0 21.4 6.7 11.6 3.9 29% 18% -4% -20% -38% of revenue 7.2 6.6 Q4/15 Q1/16 Q2/16 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q2/15 Q3/15 -0.5 -1.4 -2.5 Net Earnings Adjusted EBITDA Q2/15 Q3/15* Q4/15* Q1/16* Q2/16* Q4/15 Q1/16 Q2/16 1.3 -0.5 0.9 Q2/15 Q3/15 -2.0
Slide 11: Operating in a Challenging Environment
Operating in a Challenging Environment Seasoned Fiscally disciplined management team leadership Board with experience navigating market downturns Strong financial $20.6 million cash* position No debt International Geographic diversification to more stable regions presence Ensuring rapid response to
Slide 12: Execution of a Global Expansion Strategy
Execution of a Global Expansion Strategy Established presence in the more stable international energy market 2,500 80,000 70,000 2,000 60,000 50,000 1,500 40,000 30,000 1,000 20,000 10,000 500 0 N.Am. Rigs Intl* Rigs N.Am. Wells Intl* Wells Spears & Associates Drilling and Production Outlook, June 2
Slide 13: Countries Invoiced Increased
Execution of a Global Expansion Strategy Geographic Revenue (based on invoiced customer’s location) 2013 2014 2015 Increased exposure to the Countries more stable Invoiced international market 13
Slide 14: Targeting Full Aftermarket Participation
Targeting Full Aftermarket Participation GROWING AFTERMARKET SALES BUILDING CAPITAL EQUIPMENT RENTAL FLEET 14
Slide 15: Long-term Industry Outlook
Long-term Industry Outlook Casing Joints Run Worldwide (millions) A connection occurs an average of every 40 feet of 16 well length 14 12 10 Higher pressure/temperature 8 of offshore and deeper 6 onshore wells require 4 premium connections 2 0 A long (8,000-12,000 ft.) lateral well requires ~200-300
Slide 16: Strategy
Strategy Position MCB to endure an extended downturn Forging • continue to evaluate operational capabilities Ahead • protect balance sheet strength Provide customers with the safest, highest-quality, best performing, most technologically advanced tubular Preparing for make up products Market • produ
Slide 17: Financial Highlights
Financial Highlights as at September 30, 2016 Share price $1.61 52-week range $1.45 - $3.24 Shares outstanding ~27.7 million Options outstanding ~2.3 million Market capitalization ~$45 million as at June 30, 2016 Cash $20.6 million Debt nil Working capital $60.0 million 17
Slide 18: Company Highlights
Company Highlights Global leader of casing Supporting advancements in casing connection integrity connection Long-term trend towards more complex well construction technologies International Geographic diversification to more stable regions presence Improved regional market share opportunities Stron
Slide 19: Head Office: Edmonton, AB Canada
Head Office: Edmonton, AB Canada (780) 453-8451 info@mccoyglobal.com www.mccoyglobal.com TSX:MCB, OTCQB:MCCRF
Slide 20: Additional Information
Additional Information
Slide 21: Executive Team and Board of Directors
Executive Team and Board of Directors EXECUTIVE TEAM Jim Rakievich, ICD.D President, Chief Executive Officer and Director Jacob Coonan, MPAcc, CA Chief Financial Officer Kenny Watt Senior Vice President Suzanne Langier, CHRP Vice President, Human Resources BOARD OF DIRECTORS Frank Burdzy, MBA Presid
Slide 22: Analyst Coverage
Analyst Coverage Canaccord Genuity John Bereznicki Calgary, Alberta Industrial Alliance Securities Elias Foscolos Calgary, Alberta Cormark Securities Jesse Pytlak Toronto, Ontario Paradigm Capital Jason Tucker Calgary, Alberta 22
Slide 23: Annual Financial Results
Annual Financial Results Revenue ($millions) Gross Profit ($millions) 37% 38% 25% of revenue 23
Slide 24: Annual Financial Results ($millions)
Annual Financial Results ($millions) Adjusted EBITDA* Net Earnings from Net Earnings** Continuing Operations 15% 17% 5% 0.29 0.34 (0.40) 0.37 0.65 (0.40) of revenue per basic share per basic share 2015 2015 2013 2014 2013 2014 *Adjusted EBITDA is a non-GAAP measure defined as “net earnings (loss) fr
Slide 25: Capital Structure
Capital Structure ⁄ 1997: IPO of ~9.4 million shares at $2/share ⁄ 2002: ~7.3 million shares issued to Foundation Equity to convert promissory note ⁄ 2007: $46.4 million equity raise ~8.85 million shares @ $5.25; Foundation Equity sold $10 million in shares ⁄ 2013: Foundation Equity sale of 5.2 mill
Slide 26: The Anatomy of a Well
The Anatomy of a Well Well Casing Diagram Cement (not to scale) Less Conductor casing Technical Surface casing ~950-3,500 ft Intermediate casing ~10,500 ft Production casing ~13,000 More Technical Production tubing ~14,000-15,000 ft 26