Cervus Equipment — FY2020 Earnings Presentation
11 slides from Cervus Equipment's earnings presentation, Mar 12, 2021
Slide 1: 2020 Annual Results
CERVUS EQUIPMENT 2020 ANNUAL RESULTS March 12, 2021
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of applicable securities laws (“forward-looking statements”). These statements include, but are not limited to, statements about the Company’s objectives, strategies and initiatives, financial perform
Slide 3: Adjusted NIBT Increased $40 Million, Driven By Improvements Across the Business
CERVUS 2020 ANNUAL RESULTS Adjusted NIBT Increased $40 Million, Driven By Improvements Across the Business 2020 Annual Overview • Total revenue up 8%, comprised of a 12% increase in Agriculture and 1% increase in Transportation • G&A expenses decreased $6.3 million, despite recognizing performance i
Slide 4: Balance Sheet Overview
BALANCE SHEET OVERVIEW Strong Balance Sheet with $151 Million of Financing Available • Overall inventory decreased $90 million from Q4 2019, comprised of a $58 million decrease in Agriculture and a $30 million Total Inventory Balance Sheet Strength and Liquidity decrease in Transportation 350 320 16
Slide 5: Adjusted Free Cash Flow
ADJUSTED FREE CASH FLOW Adjusted Free Cash Flow of $53 Million for Year Ended December 31, 2020 Adjusted Free Cash Flow 60 53 50 39 38 38 40 $ Millions 30 21 20 10 0 2016 2017 2018 2019 2020 Adjusted Free Cash Flow is a non-GAAP financial measure, defined as cash flow from operating activities befor
Slide 6: Product Support Equals Stability
PRODUCT SUPPORT EQUALS STABILITY Agriculture Product Support Growth and Cost Efficiencies Improve Absorption Stability in Product Support Revenue Across Cycles Improved Absorption Across All Divisions 400 105% 19.0 0.5 350 336.0 325.7 (1.7) 100% 101% (5.3) (0.7) (1.4) 100% 300 99% Absorption Percent
Slide 7: Inventory Turns & Return on Invested Capital
INVENTORY TURNS & RETURN ON INVESTED CAPITAL Disciplined Allocation of Capital Focus on Ag Inventory Management Drives Turn Ratio Disciplined Inventory Management Stabilizes ROIC 3.50 20.0% 18.2% 3.00 2.87 2.79 2.79 2.69 15.0% 13.7% 2.50 2.50 11.7% 10.8% Inventory Turns 10.0% 2.00 1.78 ROIC 7.2% 1.5
Slide 8: Industry Outlook: Agriculture
INDUSTRY OUTLOOK Agriculture Sentiment Improves on Strong Market Fundamentals Agriculture Canada Agri-Food Canada projects net farm income for 2020 to be up 21.8% over 2019, and a further 6.8% increase forecast for 2021.1 Canola prices are at the highest levels since 2008,2 and it is estimated f
Slide 9: Industry Outlook: Transportation and Industrial
INDUSTRY OUTLOOK Transportation and Industrial Showing Signs of Recovery Transportation PACCAR estimates 2021 Class 8 sales in North America in a range of 250,000 - 280,000 units,7 anticipated growth of 15% to 30% over 2020 truck sales. Delays in North American Class 8 truck production from semi
Slide 10: 2020 Annual Results Q&A
CERVUS EQUIPMENT 2020 ANNUAL RESULTS Q&A March 12, 2021
Slide 11: Thank You
facebook.com/cervusequipment THANK YOU twitter.com/cervusequipment linkedin.com/company/cervus-equipment instagram.com/cervusequipment