Mccoy Global Inc. · TSX:MCB
Mccoy Global — Investor Presentation (April 2013)
29 slides from Mccoy Global's investor presentation, April 2013
Slide 1: Innovative Paths to Global Growth
INNOVATIVE PATHS TO GLOBAL GROWTH Investor Presentation April 2013
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: Global Innovator & Manufacturer of Drilling & Comp. Products
Global Innovator & Manufacturer of Drilling & Comp. Products ⁄ Experts in making up threaded connections ⁄ Tubular handling, assembly & measurement ⁄ Developing innovative products based on client needs ⁄ Strong and growing technology driven market ⁄ Every new product is developed with at least one
Slide 4: Market Drivers: Deeper/Longer Wells, More Rigs
Market Drivers: Deeper/Longer Wells, More Rigs Average Well Length (m), North America Active Rig Counts (1991‐2012) U.S. Canada Intl. Canada U.S. 4000 4500 4000 3500 3000 3000 2500 2000 2000 1500 1000 1000 500 0 0 ⁄ More horizontal drilling, premium connections, longer laterals ⁄ Deeper, p , Higher
Slide 5: Global Clients
Global Clients Target customers: Service companies p ((Baker,, Weatherford)) Contract drillers (Transocean, H&P) Rig manufacturers (NOV, Cameron) 5
Slide 6: Growing Sales Footprint
Growing Sales Footprint McCoy delivered products/sales to 51 countries in 2012 ⁄ Manufacturing ⁄ New Product Development ⁄ Service Support ⁄ Mobile Solutions ⁄ MCB Drilling & Completions Headquarters ⁄ New Product Development ⁄ Service Support ⁄ Manufacturing ⁄ New Product Development Current Locati
Slide 7: Sustained Growth
Sustained Growth Historical Segmented Revenue* ($millions) $200 $150 $63M $52M $69M $68M $100 $82M $32M $116M $12M $94M $85M $50 $63M $68M $64M $29M $‐ 2006 2007 2008 2009 2010 2011 2012 EP&S Mobile Solutions 7 *From continuing operations
Slide 8: Energy Products & Services
ENERGY PRODUCTS & SERVICES ⁄ Coatings g and Hydraulics y ⁄ Drilling and Completions 8 McCoy Corporation
Slide 9: Coatings & Hydraulic Cylinder Repair
Coatings & Hydraulic Cylinder Repair ⁄ Focused management team ⁄ Divisions: ⁄ Operational p efficiencies ⁄ Hydraulics ⁄ Quality improvements ⁄ PTA ⁄ Plating ⁄ 2012 trend to continue ⁄ Thermal Spray ⁄ Market growth opportunities Largest chrome‐plating facility in Western Canada 9
Slide 10: Broad Drilling & Completions Product and Portfolio Pipeline
Broad Drilling & Completions Product and Portfolio Pipeline Tubular Handling Tubular Equipment & Running Tools Handling Accessories • Links Potential • Manual Tongs • Downhole h l • Automated • Slips Accessories • Controls & Data Pipe Handling • Bushings • Regional Service Systems • Elevators Shops
Slide 11: Leading & Innovative Drilling & Completions Products
Leading & Innovative Drilling & Completions Products Hydraulic Power Tongs Bucking Units Apply torque to loosen/ Used by tubular manufacturers tighten tubulars vertically to test connections; apply • ~40% global market share torque to loosen/ tighten t b l horizontally; tubulars h i t ll • ~30% glob
Slide 12: Mobile Solutions
MOBILE SOLUTIONS 12 McCoy Corporation
Slide 13: Efficiently Meeting Demand in a Fluctuating Market
Efficiently Meeting Demand in a Fluctuating Market ⁄ Mobile Solutions’ brands include Peerless and Scona ⁄ 3 U.S. sub‐contracting sub contracting plants: 2 in Texas; 1 in Arkansas ⁄ Efficient way to increase/decrease capacity during market peaks/troughs ⁄ M Manufacturing f t i plantl t in i British
Slide 14: McCoy Growth Strategy
McCOY GROWTH STRATEGY 14
Slide 15: Innovative Products, Strategic Acquisitions, International Focus
Innovative Products, Strategic Acquisitions, International Focus McCoy Today Outlook Strategic acquisitions Complementary products & services Increased investment in NPD Improving customer efficiency Customer entrenchment Oil and gas market focused On‐time product delivery Highest quality products E
Slide 16: Organic Growth via Development of Innovative Products
Organic Growth via Development of Innovative Products ⁄ Products are developed in joint partnerships with our customers ⁄ Significant IP portfolio: barrier to entry ⁄ 61 registered i t d patents, t t 10 pending di ⁄ Four patent applications filed in Q2 2012 PROJECT Torque Iron Electric Hydraulic Pip
Slide 17: International Sales & Support Growth
International Sales & Support Growth ⁄ McCoy is expanding its U.S. and international EP&S sales ⁄ 80% of total revenue* in 2009 to 85% in 2012 60 $ millions Canada 30 U.S. Internationall *Revenue is attributed to a geographical region based on the location of the customer invoiced, which may not nec
Slide 18: Financial Overview and Performance
FINANCIAL OVERVIEW AND PERFORMANCE 18 McCoy Corporation
Slide 19: Market Summary
TSX:MCB Market Summary Share price $4.30 (as at March 31 31, 2013) 52‐week range $3.23 ‐ $4.75 Shares outstandingg ~26 7 million ~26.7 illi (as at March 31, 2013) Options ~1.4 million (as at March 31, 2013) Market capitalization ~$115 million (as at March 31, 2013) Average daily trading volume 23,72
Slide 20: Shareholder Return – Paying Dividends Since 2004
Shareholder Return – Paying Dividends Since 2004 Dividend Declared Date Amount per common (last 2 years) share March 10, 2011 $0.01 March 17, 2011 May 19, 2011 $0.041 $0.01 16.4% ROIC* September 30, 2011 $0.01 (1/1/12‐12/31/12) December 13, 2011 $0.03 March 22 22, 2012 $0 03 $0.03 May 17, 2012 Augus
Slide 21: Quarterly Financial Results
Quarterly Financial Results $ million, except noted Q4 2012 Q4 2011 Total revenue 44.3 44.3 Net earnings 3.3 3.8 N t earnings Net i per share h 0 12 0.12 0 14 0.14 EBITDAS 6.3 5.6 EBITDAS per share 0.24 0.21 EBITDAS percent of revenue 14% 13% Cash flow from continuing operating activities 69 6.9 (1
Slide 22: 2012 Annual Financial Results
2012 Annual Financial Results $ million, except noted 2012 2011 Change Total revenue 179 4 179.4 153 8 153.8 +17% Net earnings 11.8 11.9 ‐1% Net earnings per share 0 44 0.44 0 45 0.45 ‐2% 2% EBITDAS 22.9 21.6 +6% EBITDAS per share 0.86 0.81 +6% EBITDAS percent of revenue 13% 14% ‐1% Cash flow from c
Slide 23: Investing in McCoy
Investing in McCoy ⁄ Innovative technologies with barriers to entry ⁄ Strong long term offshore and international market fundamentals ⁄ Growing global market presence ⁄ Significant growth and earnings potential ⁄ Excellent management team with a proven track record ⁄ Attractive dividend payment ⁄ St
Slide 24: Jim Rakievich, President & Chief Executive Officer Jacob Coonan, Interim Chief Financial Officer Jim
Jim Rakievich, President & Chief Executive Officer Jacob Coonan, Interim Chief Financial Officer Jim Nowotny, Senior Vice President, Drilling & Completions Head Office: Edmonton, Alberta, Canada ( (780) ) 453‐8451 info@mccoyglobal.com www.mccoyglobal.com TSX:MCB 24
Slide 25: Additional Information
ADDITIONAL INFORMATION ⁄ Management Team ⁄ Board of Directors ⁄ Shareholder Return ⁄ Analyst Coverage ⁄ Capital Structure 25
Slide 26: Executive Team
Executive Team Corporate Ji R Jim Rakievich, ki i h ICD ICD.D D P id President and d Chief Chi f Executive E i Officer Offi Tom Watts Vice President, Human Resources gy Products & Services Energy Jim Nowotny, BSME Senior Vice President, Drilling & Completions Jane Debbrecht, B.Sc., MBA Vice Presiden
Slide 27: Board of Directors
Board of Directors Kerry Brown, CA Chairperson, President and CEO of CMW Management Inc. Frank Burdzy, MBA President and CEO of Champion Petfoods Terry Chalupa President and CEO of Abalone Construction Terry Freeman, FCA, ICD.D Managing Director, Corrosion and Abrasion Solutions Ltd. John Howard, CA
Slide 28: Analyst Coverage
Analyst Coverage Paradigm Capital John Bereznicki, CFA Calgary, l Alberta lb Raymond y James Theoni Pilarinos Pilarinos, CFA Vancouver, British Columbia Cormarkk SSecurities C iti Sarah Hughes, CFA Toronto, Ontario GMP Securities L.P. Justin Wu, CFA Toronto, Ontario 28
Slide 29: Capital Structure
Capital Structure ⁄ 1997: IPO of ~9.4 million shares at $2/share $ / ⁄ 2002: ~7.3 million shares issued to Foundation Equity to convertt promissory i note t ⁄ 2007: $46.4 million equity raise ~8.85 M shares @ $5.25; Foundation Equity sold $10 million in shares ⁄ ~3% 3% of O/S shares owned by Managem