Decisive Dividend Corp. · TSXV:DE
Decisive Dividend — Investor Presentation (May 2024)
34 slides from Decisive Dividend's investor presentation, May 2024
Slide 1: Investor Presentation May 2024
T SX.V:DE INVESTOR PRESENTATION MAY 2024
Slide 2: Cautionary Statements
TSX.V:DE CAUTIONARY STATEMENTS In this presentation, “Decisive” or the “Corporation” means Decisive Dividend Corporation and, where the context requires, its operating subsidiaries. FORWARD LOOKING INFORMATION Certain statements in this report constitute forward-looking information and forward-looki
Slide 3: The Catalyst
TSX.V:DE THE CATALYST According to the Canadian Federation of Independent Essential factors for owners when selling their business (% response) Business, 76% of business owners plan to exit their business Protecting our current employees 56 34 4 3 within the next 10 years - meaning that over $2 tr
Slide 4: What We Do
TSX.V:DE WHAT WE DO BUY Acquire profitable, well-established, high quality manufacturing companies with enterprise values up to $25M BUILD Support the long-term success of the businesses acquired, with resources to help them achieve their potential HOLD Continue the business legacies of the vendors
Slide 5: Why Decisive?
TSX.V:DE WHY DECISIVE? VENDORS Exit Opportunity Continuation of business legacy Opportunity to cash out Participate in future Decisive growth (min. 10% of purchase price paid in Decisive shares) EMPLOYEES Business as usual Opportunity for equity ownership (Employee Share Purchase Plan)
Slide 6: A Story of Growth & Yield
TSX.V:DE A STORY OF GROWTH & YIELD GROWTH Completed 13 acquisitions in the first 9 years of operations First acquisition completed in February 2015 8 acquisitions completed in the 24-month span Healthy, and growing, pipeline of potential acquisitions Revenue 29% CAGR from 2015 to 2023 $7
Slide 7: Driving Outsized Returns
TSX.V:DE DRIVING OUTSIZED RETURNS Since the beginning of 2021: ~485% total return1(~60% annualized) Increased the monthly dividend each year, including two times in 2023 and again in Q1 2024 (currently $0.54 per share annualized) Completed 8 acquisitions Recognized as one of the top perfor
Slide 8: Acquisition Philosophy
TSX.V:DE ACQUISITION PHILOSOPHY O B J E C T I V E : AC Q U I R E PR O F I T A BL E , W E L L - E S TA B L I SH E D C O M PA N I E S W I T H ST R O N G C A SH F L O W O B J E C T I V E : M AI NT A I N A CQ UI SI T I O N M U L TI P L E D I SC I PL I N E ; H I S TO R I C A L R A N GE 3 . 5 X – 5 . 5 X
Slide 9: Acquisitions
TSX.V:DE ACQUISITIONS FINISHED PRODUCT SEGMENT BUSINESSES 2015 2018 2022 2022 2023 2023 ACQUIRED FOR $7.0M ACQUIRED FOR $10.0M ACQUIRED FOR $8.3M ACQUIRED FOR $11.5M ACQUIRED FOR $6.9M 10% EQUITY / 90% DEBT ACQUIRED FOR $15.5M 16% EQUITY / 84% DEBT 100% EQUITY 60% EQUITY / 40% DEBT 39% EQUITY / 61%
Slide 10: Acquisitions
TSX.V:DE ACQUISITIONS COMPONENT MANUFACTURING SEGMENT BUSINESSES 2016 2018 2019 2023 2023 2024 ACQUIRED FOR $9.4M ACQUIRED FOR $11.8M ACQUIRED FOR $11.6M ACQUIRED FOR $3.3M ACQUIRED FOR $4.9M ACQUIRED FOR $6.3M 72% EQUITY / 28% DEBT 100% EQUITY 10% EQUITY / 90% DEBT 64% EQUITY / 36% DEBT 65% EQUITY
Slide 11: Organic Growth & Synergies
TSX.V:DE ORGANIC GROWTH & SYNERGIES Organic and Acquired Revenue Growth Current Synergies Blaze King | Northside Northside using excess capacity to support the manufacturing of wood stoves for Blaze King Blaze King | ACR Symbiotic partnership supporting new product development in North Ameri
Slide 12: Corporate Snapshot
TSX.V:DE CORPORATE SNAPSHOT SHARE DATA CUMULATIVE ACQ. 2 MAY 8, 2024 FUNDING MIX 5 2 WE E K RA NG E 3 MAY 8, 2024 $5.91 - $11.50 1 DEBT 53% T T M A V E RA G E D A I L Y EQUITY 47% VOLUME 1 7 . 9 K - T S XV C O M M O N S H A RE S , B A S I C / D IL U T E D LIQUIDITY 19.4M / 20.7M CASH ON HAND + AVAIL
Slide 13: Debt & Working Capital
TSX.V:DE DEBT & WORKING CAPITAL COMMITTED AVAILABLE WORKING CAPITAL FACILITIES ACCORDION EXCL. NET DEBT Q1 2024 $23.6M Current Q4 2023 $19.6M Previous Q4 2022 $14.5M $100M $68M $75M Syndicated credit facility with top tier lending syndicate: National Bank, CWB, Royal Bank, Desjardins. Fully revo
Slide 14: Dividend
TSX.V:DE DIVIDEND O B J E C T I V E : P R O V I D E S US TA I N A BL E A N D G R O WI N G D I V I D E N D S T O S H AR E H O L D E R S CUMULATIVE PER SHARE DIVIDENDS PAID DIVIDEND HIGHLIGHTS 2024 $2.76 Monthly dividend payment Cumulative payout since completing first 2023 $2.59 acquisition in 20
Slide 15: Q1 2024 Results Dashboard
TSX.V:DE Q1 2024 RESULTS DASHBOARD REVENUE GROSS PROFIT% 2024 – 38% vs. 2023 – 36% vs. 2022 – 33% ADJUSTED EBITDA PER SHARE 2024 – $0.21 vs. 2023 – $0.33 vs. 2022 – $0.19 FREE CASH FLOW PER SHARE 2024 – $0.10 vs. 2023 – $0.20 vs. 2022 – $0.11 $12.9M $13.9M $18.7M $30.9M $29.4M PROFIT PER SHARE 2020
Slide 16: FYE 2023 Results Dashboard
TSX.V:DE FYE 2023 RESULTS DASHBOARD REVENUE GROSS PROFIT% WORKING CAPITAL, EXCL. NET DEBT 2023 – 39% vs. 2022 – 33% vs. 2021 – 34% 2022 ADJUSTED $15.3M EBITDA PER SHARE 2023 – $1.45 vs. 2022 – $1.05 vs. 2021 – $0.73 2021 CASH FLOW PER FREE SHARE $11.6M 2023 – $0.90 vs. 2022 – $0.64 vs. 2021 – $0.38
Slide 17: 2024 Revenue Diversification
TSX.V:DE 2024 REVENUE DIVERSIFICATION SALES BY PRODUCT TYPE WOOD/GAS STOVE 10% BLAZEKING BLAZE KING& &ACR ACR 21% MACHINED HAWK HAWKMACHINE WORKS WEAR PARTS Wood/Gas Stove, Agriculture, Industrial, 30% UNICAST, MICON & PROCORE UNICAST, MICON, PROCORE, Machined, Merchandising, & Wear Part products Wo
Slide 18: Summary
TSX.V:DE SUMMARY Executing on our strategy to acquire successful manufacturing businesses – 8 acquisitions in a 24-month span. Building a strong and growing acquisition prospect pipeline. Assembling a diversified portfolio of high quality, high gross margin product manufacturing businesses foc
Slide 19: Blaze King
TSX.V:DE BLAZE KING Blaze King is a recognized leader in the design and production of high quality, high efficiency wood stoves, inserts and gas heating products Their longer burn times and lower wood consumption are achieved by their unique ESTABLISHED combustion system where airflow is managed by
Slide 20: Unicast
TSX.V:DE UNICAST Unicast is known for producing and distributing cost effective, durable wear parts and valves for the cement, mining, and aggregate industries. Wear parts tend to wear out quickly when crushing rock which is done exclusively in ESTABLISHED these industries. The Unicast titanium carb
Slide 21: Slimline Manufacturing
TSX.V:DE SLIMLINE MANUFACTURING Slimline has been manufacturing and distributing Turbo-MistTM air blast sprayers since 1948, used primarily in the agriculture industry to apply treatments to apples, cherries, grapes, almonds, walnuts, oranges, and peaches ESTABLISHED Slimline designs, manufactures,
Slide 22: Hawk Machine Works
TSX.V:DE HAWK MACHINE WORKS Hawk is a precision machining and fabrication shop delivering comprehensive CNC machining solutions for a variety of industries including oil and gas, automotive, electrical and utilities, and agriculture ESTABLISHED Hawk is known for its exceptionally high-quality machin
Slide 23: Northside Industries
TSX.V:DE NORTHSIDE INDUSTRIES Northside is a steel and aluminum fabrication business that leverages in-house engineering or customer designs for cutting and forming through to welding and powder coating, and primarily services the commercial vehicle and forestry industries ESTABLISHED Northside is a
Slide 24: Marketing Impact
TSX.V:DE MARKETING IMPACT Marketing Impact designs, manufactures, and distributes a comprehensive range of merchandising products, systems and solutions for retail customers including grocery stores, convenience stores, and pharmacies ESTABLISHED It also designs and manufactures displays for consume
Slide 25: ACR Heat Products
TSX.V:DE ACR HEAT PRODUCTS ACR manufactures Eco-design Ready woodburning, multifuel, and gas stoves, as well as electric stoves, electric fireplaces and outdoor pizza ovens. ACR has a well-established brand in the United Kingdom marketplace and is known ESTABLISHED for its high-quality and attractiv
Slide 26: Capital I Industries
TSX.V:DE CAPITAL I INDUSTRIES Capital I designs, manufactures and distributes high-quality road maintenance and construction equipment. Its innovative products include dozer blades, snow blades and wings, gravel ESTABLISHED reclaimers, gravel groomers, lifts, mulchers and mowers, that are used in th
Slide 27: Micon Industries
TSX.V:DE MICON INDUSTRIES Micon designs, manufactures and distributes high-quality radiator seals and grommets for heavy duty equipment. Its products are designed to help reduce downtime associated with cooling system ESTABLISHED failures of the equipment used in the demanding mining and road constr
Slide 28: Procore
TSX.V:DE PROCORE Procore designs, manufactures and distributes high-performance radiators for heavy duty equipment. Procore radiators are designed for the cooling systems found in the heavy duty ESTABLISHED equipment used in the mining, oil and gas and road construction industries. Procore 2006 manu
Slide 29: Innovative Heating Technologies
TSX.V:DE INNOVATIVE HEATING TECHNOLOGIES Innovative Heating Technologies is a well-established manufacturer and developer of high efficiency heating mats and lighting solutions for hog production. The key competitive advantages for its products are durability, anti-microbial ESTABLISHED characterist
Slide 30: Techbelt
TSX.V:DE TECHBELT Techbelt is a manufacturer of polytetrafluoroethylene (“PTFE”) conveyor belts, PTFE tapes, and PTFE materials which are used in a wide range of end markets. Techbelt prides itself on its ability to provide technical solutions for customers and its ESTABLISHED rapid turnaround for d
Slide 31: Leadership Team – Head Office
TSX.V:DE LEADERSHIP TEAM – HEAD OFFICE JEFF SCHELLENBERG JULIE WILSON CHIEF EXECUTIVE OFFICER VP PEOPLE & CULTURE Over fifteen years of senior leadership experience including Over twenty-five years in senior human resources capital markets, finance, acquisitions, and operations leadership roles acro
Slide 32: Leadership Team - Subsidiaries
TSX.V:DE LEADERSHIP TEAM - SUBSIDIARIES ALAN MURPHY JASON SEARLE BLAZE KING ACR HEAT PRODUCTS Over twenty-five years of senior management experience in the wood and gas Over twenty-five years of experience in the UK domestic heating industry delivering fireplace industry technical product design and
Slide 33: Board of Directors
TSX.V:DE BOARD OF DIRECTORS JAMES PATERSON TERRY EDWARDS WARREN MATHEOS LAWYER CHIEF OPERATING OFFICER, KEY ACCOUNT MANAGER WEST, BOARD CHAIR DECISIVE DIVIDEND JAMIESON LABORATORIES LTD. RISK COMMITTEE G&C COMMITTEE BRUCE CAMPBELL PETER JEFFREY TIM PIRIE PRESIDENT, PRESIDENT, PRESIDENT, STONECASTLE
Slide 34: Contact Information
TSX.V:DE CONTACT INFORMATION DECISIVE DIVIDEND CORPORATION #260-1855 KIRSCHNER ROAD KELOWNA, B.C. V1Y 4N7 250-870-9146 WWW.DECISIVEDIVIDEND.COM CONTACT: JEFF SCHELLENBERG, CHIEF EXECUTIVE OFFICER, AT JEFF@DECISIVEDIVIDEND.COM OR RICK TORRIERO, CHIEF FINANCIAL OFFICER, AT RICK@DECISIVEDIVIDEND.COM 34