Divestco — Shareholder Meeting (June 2005)
32 slides from Divestco's shareholder meeting presentation, Jun 2, 2005
Slide 1: Divestco Inc. Annual & Special Meeting
Divestco Inc. Annual & Special Meeting June 2, 2005 www.divestco.com TSX-V:DVT
Slide 2: Officers
OFFICERS Stephen Popadynetz – CEO Terry Barnhart – President Roderick Chisholm – Chief Financial Officer Steve Sinclair-Smith – VP Technical Services Mathew Hepton – VP Software Development Shannon Niemi – VP Sales & Marketing Peter Ciavarella – VP Geological Software Chuck Smith – VP Geomatics Cary
Slide 3: Board of Directors
BOARD OF DIRECTORS John Brussa – Chairman (1)(2) Stephen Popadynetz Wade Brillon M. Scott Ratushny (1)(3) Edward L. Molnar (2) Brent Gough (1)(2)(3) Faralee Chanin – Corporate Secretary (1) Member of Audit Committee (2) Member of Compensation Committee (3) Member of Corporate Governance Committee ww
Slide 4: Financial Review – 2004
FINANCIAL REVIEW – 2004 •Stock Symbol : DVT (TSX-V) •Shares Outstanding: 24,529,022 ( < 4% from 2003) •Insider Ownership: 42% ( > 5% from 2003) www.divestco.com TSX-V:DVT
Slide 5: Financial Highlights - 2004
FINANCIAL HIGHLIGHTS - 2004 For the year ended Dec 31 % ($000’s, except per share) 2004 2003 Change Revenue $25,912 $15,043 72% EBITA 6,745 1,697 297% Operating Income 3,520 153 2201% Income from continuing operations 3,948 471 738% Per share (basic) 0.156 0.027 478% Per share (diluted) 0.155 0.027
Slide 6: Financial Highlights - 2004
FINANCIAL HIGHLIGHTS - 2004 For the year ended Dec 31 % ($000’s, except per share) 2004 2003 Change Funds from continuing operations 6,245 1,650 278% Per share (basic) 0.247 0.096 157% Per share (diluted) 0.247 0.094 163% Funds from operations 6,245 1,629 283% Per share (basic) 0.247 0.095 160% Per
Slide 7: Financial Highlights - 2004
FINANCIAL HIGHLIGHTS - 2004 • Revenues grew to a record $25.9 million in 2004 from $15.0 million in 2003 and $5.0 million in 2002 • EBITA grew by more than $5 million from 2003 and over $6 million from 2002 • Net income increased by more than 400% and 1400% from 2003 and 2002, respectively www.dives
Slide 8: Financial Highlights by Year
FINANCIAL HIGHLIGHTS BY YEAR 30 Revenue 25 EBITDA 20 $ Millions Net Income 15 Funds from 10 Operations Working 5 Captial 0 (5) 2002 2003 2004 www.divestco.com TSX-V:DVT
Slide 9: Results of Operations - 2004
RESULTS OF OPERATIONS - 2004 Key factors: • Purchase of PetroCanada’s Seismic Database and a successful bundling of seismic, software, and archiving with sales exceeding $3 million • Completion of the Kelly Lakes and Gunnell 3D seismic surveys • Record year in Services, Data and Software www.divestc
Slide 10: Sources of Revenue
SOURCES OF REVENUE 2003 2004 14% 22% 31% 28% 19% 34% 13% 39% Services Data Software Brokerage www.divestco.com TSX-V:DVT
Slide 11: Data – 2004
DATA – 2004 • Purchase of PetroCan Dataset and Introduction of Unique Bundled Package • Shot Gunnell & Kelly Lakes and commenced the shooting of Halfmoon Creek, Windsor Creek, Graham Lake and Red Willow (2400 Sq. Km’s of new high quality 3d seismic data) • Purchase of SVC’s Interest in 20,000 km’s o
Slide 12: Divestco Seismic Database
DIVESTCO SEISMIC DATABASE www.divestco.com TSX-V:DVT
Slide 13: Software – 2004
SOFTWARE – 2004 •Launch of GeoCarta Tools •Integration of WinPics, GeoVista & Geological Tools •Several new releases for many of our products •Formalization of our Technical Writing and QA Group •SR&ED claims for over $1 million www.divestco.com TSX-V:DVT
Slide 14: Integrated Software
INTEGRATED SOFTWARE www.divestco.com TSX-V:DVT
Slide 15: Brokerage – 2004
BROKERAGE – 2004 • Record year in brokerage Sales • Introduction of eBroker & SDManager • Sold over 3 million in PetroCan Bundles • Petro Can Line by Line Sales increased by approximately 50% in spite of bundle sales www.divestco.com TSX-V:DVT
Slide 16: Services - 2004
SERVICES - 2004 • DataStore Development Begins • Data Loading Plays Big role In PetroCan Dataset Bundle • Record years in Archiving and Audit and 2nd Best Year in Mapping/Database • Introduction of eBroker & SDManager www.divestco.com TSX-V:DVT
Slide 17: Operational Highlights - 2004
OPERATIONAL HIGHLIGHTS - 2004 NE Data Centre • Completed $1 Million Renovation • Consolidated offices and relocated DigiRat Manufacturing and Archiving into the NE • Sublet 12,000 Sq. Ft. of space to the Government of Canada (reducing our effective costs by approximately 1/3 in the NE) • Divested ou
Slide 18: Review 2004 Targets
REVIEW 2004 TARGETS “DVT completed 89% of all targets laid out at 2004 AGM” Financial Targets Projected Actual Gross Revenue $26MM $26MM Earning/Share $0.14 $0.16 Funds/Share $0.25 $0.25 Major Corporate Objectives Acquire 1 -2 US Companies - Completed Acquisition of PDS in April/05 Acquire 2 - 3 Can
Slide 19: Which targets did we not fulfill in 2004?
Which targets did we not fulfill in 2004? • Move from TSX-V to TSX - Currently working towards a Fall/05 timeline however Board has requested detailed review of benefits vs. costs • Release Freehold Dataset - Database complete however New Privacy Rules may prevent Divestco from delivering to custome
Slide 20: Financial Highlights – Q1 2005
FINANCIAL HIGHLIGHTS – Q1 2005 10 Revenue 8 EBITDA 6 Net Income $ Millions 4 Funds from 2 Operations Working 0 Captial (2) (4) Q1 2004 Q1 2005 www.divestco.com TSX-V:DVT
Slide 21: Financial Highlights – Q1 2005
FINANCIAL HIGHLIGHTS – Q1 2005 • Revenue Increased by 41% however expenses decreased by 3% • Record Revenue, EBITA, and Funds From Operations • 6.4 cents per share in earnings (diluted) vs. 3.1 cent per share (diluted) in Q1 2004 - 106% increase • 6th consecutive quarter of positive results www.dive
Slide 22: 2005 Growth Initiatives and Outlook
2005 Growth Initiatives and Outlook www.divestco.com TSX-V:DVT
Slide 23: Growth Through Acquisition
Growth Through Acquisition •Plan is to complete 1-2 share/asset acquisitions during the remainder of 2005 in Canada •Acquire 1 additional U.S. Company preferably Texas based www.divestco.com TSX-V:DVT
Slide 24: Service Objectives for 2005
Service Objectives for 2005 • Continue bundling of services with software/data sales • Potential exists for the creation of a consulting division • Move low margin/loss leader digitizing services offshore (India) • Cross train staff in archiving and digitizing departments • New Archive System Develo
Slide 25: Data Objectives for 2005
Data Objectives for 2005 • Expand on seismic database through acquisition of additional multi-client seismic data • Acquire one seismic asset in Western Canada of similar size to the Petro Can dataset • Leverage the Seismic Asset for additional acquisition capital www.divestco.com TSX-V:DVT
Slide 26: Software Objectives for 2005
Software Objectives for 2005 • Roll out of new and enhanced products for: - DataStore V.1.0 - WinPICS V5.2 - EnvisionVSX V1.1 - SeisScapeVSX V1.0 - GeoVista 4.2.5 - GeoCarta Tools 1.8 - Synthetic 1D • Convert Software to NAD83 Compliance www.divestco.com TSX-V:DVT
Slide 27: Brokerage Objectives for 2005
Brokerage Objectives for 2005 • Create Data Management subdivision using Divestco’s leading management software • Recruit Additional Brokers • Investigate opportunities to acquire additional brokerage assets/companies for possible expansion of division www.divestco.com TSX-V:DVT
Slide 28: Share Price
Share Price • Continue to produce positive operating results • Conduct investor relation presentations for potential institutional and retail investors and we are planning a significant road show in late Q2 and late Q3 • Institute another Normal Course Issuer Bid – Divestco repurchased 1.1 MM of its
Slide 29: Guidance for 2005
Guidance for 2005 •Gross revenues of $30MM •Earnings of $0.18/share •Funds from operations of $0.28/share www.divestco.com TSX-V:DVT
Slide 30: Share Price Performance (1 year)
Share Price Performance (1 year) www.divestco.com TSX-V:DVT
Slide 31: Questions?
Questions? www.divestco.com TSX-V:DVT
Slide 32: Thank you for attending our 2005 Annual and Special Meeting
Thank you for attending our 2005 Annual and Special Meeting For further information, please contact: Stephen Popadynetz, CEO (403) 218-6466 or stephen@divestco.com or Rod Chisholm, CFO (403) 218-6450 or rod.chisholm@divestco.com or investor.relations@divestco.com www.divestco.com TSX-V:DVT