Ascent Industries Co. · NASDAQ:ACNT
Ascent Industries — Synalloy — IPO Roadshow (September 2013)
31 slides from Ascent Industries's IPO roadshow presentation, Sep 16, 2013
Slide 1: Roadshow Presentation: Follow-on Equity Offering
Roadshow Presentation Follow-on Equity Offering September 2013 Free Writing Prospectus Registration Statement No. 333-185064
Slide 2: Forward-Looking Statements
Forward – Looking Statements Statements in this presentation that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements i
Slide 3: Offering Summary
Over-allotment Option: ..……….. Offering Summary Issuer: …………………………… Synalloy Corporation Ticker/Exchange: ……………….. SYNL / NASDAQ Issue: …………………………….. Offering Size: ….………………… Use of Proceeds: ……….……… approximately $3.5 million in new equipment for the CRI Facility, approximately $2.0 million in new
Slide 4: Today's Presenters
Craig C. Bram – President & CEO Richard D. Sieradzki – CFO & Vice President of Finance Today’s Presenters President and CEO since January and Director of the Company since Previously Managing Director of Avitas Capital, LLC – Investment Banking and Private Equity Previously Founder, President and CE
Slide 5: Investment Highlights
Investment Highlights Fabrication business in the early stages of a major turnaround with backlog up 225% since the beginning of 2013 Poised for improved pipe manufacturing pricing and profitability following a favorable anti-dumping ruling Recently acquired production capacity in the Specialty Chem
Slide 6: Company Overview and Business Segments
Company Overview Business Segments Synalloy Overview Synalloy Metals Comprised of BRISMET, Synalloy Fabrication and Palmer Targets customers requiring materials which are: 3 Facilities totaling 520k sq. ft Comprised of Manufacturers Chemicals and CRI Tolling Produces specialty chemicals for a divers
Slide 7: Our Products and Services
Our Products and Services Stainless Steel Pipes Titanium Pipes Super Duplex Pipes Nickel Alloy Pipes Bending X-Ray Heat Treating Freight/ Logistics Fiberglass Tanks Steel Tanks Field Erected Tanks Tank Accessories Sulfated Derivatives Additives Lubricants Defoamers Dry Blending High Viscosity Liquid
Slide 8: Select End Markets Served
Metals Segment Specialty Chemicals Segment Oil and Gas Select End Markets Served Power Chemicals Water/Waste Water Agricultural Metal Working Paper Petroleum & Mining
Slide 9: Experienced Management Team
Title Years of Experience Experienced Management Team Craig Bram President and CEO 30+ Richard Sieradzki CFO and Vice President of Finance 35+ Kyle Pennington President – Synalloy Metals 25+ John Tidlow Executive Vice President – Synalloy Fabrication 25+ Kevin Hrebenar Executive Vice President of Op
Slide 10: Synalloy Metals
Synalloy Metals
Slide 11: BRISMET – Overview
North American leader in welded stainless steel and special alloy pipe production Capabilities BRISMET – Overview Operates a 190,000 square- foot facility in Bristol, TN Produces welded pipe sizes from ½” to 120” Forming X-Ray / Testing End Preparation Surface Finishing Heat Treatment Welding Cold W
Slide 12: BRISMET – Key Relationships
Customer Breakdown End Markets 40% 25% 20% 5% 5% 71% 63% 55% BRISMET – Key Relationships 5% Oil & Gas Power/Energy Chemical Pulp & Paper Mining Water/Waste Water 29% 37% 45% 0% 25% 50% 75% 100% Top 10 Other
Slide 13: Synalloy Fabrication – Overview
Industry leader in high nickel alloy, stainless steel, carbon and chrome pipe fabrication for over 40 years Capabilities Synalloy Fabrication – Overview Comprised of BristolFab and, its sister company, Ram-Fab LLC Provides complete turn-key pipe fabrication solutions across a wide variety of market
Slide 14: Synalloy Fabrication – Key Relationships
End Markets Customer Breakdown 50% 15% 15% 10% 87% 92% 91% Synalloy Fabrication – Key Relationships 10% Chemicals Water & Waste Water Oil & Gas Mining Power & Energy Pulp & Paper 13% 8% 9% 0% 25% 50% 75% 100% Top 10 Other
Slide 15: Palmer of Texas – Overview
Strategically located in the heart of the Permian Basin in West Texas with direct access to emerging shale oil plays, Palmer is able to provide customers with the majority of their tank battery Palmer of Texas – Overview Fiberglass Tanks Steel Tanks Field Erected Tanks Tank Accessories Capabilities
Slide 16: Palmer of Texas – Permian Focused
Palmer of Texas – Permian Focused Key Relationships Increasing End Market Demand The Permian Basin accounts for two-thirds of oil production in Texas and approximately 15% of the entire United States 2012 Permian Basin production was 1.25 million bbl/d and is expected to grow to 1.85 million bbl/d b
Slide 17: Synalloy Metals – Drivers of Growth
Synalloy Metals – Drivers of Growth Automated steel tank line will be fully operational by the end of 2013, increasing production by approximately 30% Palmer’s Steel Production Capacity Ramping Up Oil & Gas Demand in Palmer’s Immediate Area Receipt of Pressure Vessel Certification Will open up numer
Slide 18: Synalloy Chemicals
Synalloy Chemicals
Slide 19: Synalloy Chemicals – Overview
One of the largest custom chemical formulators in the U.S. with attractive, stable margins and longstanding customer relationships Synalloy Chemicals – Overview Select Products & Services Combines state of the art equipment and the most advanced technology to provide a wide variety of specialty chem
Slide 20: Chemicals – Key Relationships
Contract vs. Non-Contract Sales (1) 60% 20% Manufacturers Chemicals Customer Breakout 55% 53% 56% Key Relationships (1) Data as of December 31, 2012. 20% Contract Manufacturing Intermediate Sales Direct Sales 45% 47% 44% 0% 25% 50% 75% 100% Top 10 Other
Slide 21: Drivers of Growth
Drivers of Growth Represents a small percentage of total sales for the Specialty Chemicals group, with opportunities to penetrate the market with existing product lines Agriculture Mining Heavy users of defoamers and dust inhibitors with excellent potential to grow sales of existing products Existin
Slide 22: Financial Overview
Financial Overview
Slide 23: Consolidated Historical Financial Performance
Revenue Gross Profit (1) Net Income Adjusted EBITDA (1) 5.2% 7.7% 8.1% 8.2% 9.8% 13.3% 13.4% 13.6% Consolidated Historical Financial Performance $151.1 $170.6 $197.7 $217.5 $0 $50 $100 $150 $200 $250 LTM 6/29/2013 $4.0 $5.8 $4.2 $5.2 $0 $2 $4 $6 $8 LTM 6/29/2013 Note: Dollars in millions. (1) Adjust
Slide 24: Summary Balance Sheet
($ in 000s) 6/29/2013 12/31/2012 Summary Balance Sheet Cash $143 $1,085 Current Assets 102,719 89,837 Long-term Assets 58,272 57,585 Total Assets $161,134 $148,507 Current Liabilities $29,620 $24,553 Other Liabilities 55,996 52,180 Total Liabilities 85,616 76,733 Shareholders' Equity 75,519 71,774 T
Slide 25: Pro Forma Capitalization
June 29, 2013 Adjustments for As Adjusted for As Adjusted for CRI ($ in 000s) Actual CRI Acquisition CRI Acquisition Acquisition and Offering (1) Pro Forma Capitalization (1) Assumes the issuance of 1,500,000 shares of common stock at recent price of $16.02 per share, the receipt of $22.4MM of net p
Slide 26: Investment Highlights
Investment Highlights Fabrication business in the early stages of a major turnaround with backlog up 225% since the beginning of 2013 Poised for improved pipe manufacturing pricing and profitability following a favorable anti-dumping ruling Recently acquired production capacity in the Specialty Chem
Slide 27: Appendix
Appendix
Slide 28: Adjusted EBITDA Reconciliation – Consolidated
LTM 2010 2011 2012 6/29/2013 Adjusted EBITDA Reconciliation Consolidated Net Income $4.0 $5.8 $4.2 $5.2 Adjustments: Interest Expense 0.1 0.1 0.6 1.2 Change in Fair Value of Interest Rate Swap - - 0.1 (0.5) Tax Provision 2.1 3.0 2.1 2.6 Depreciation 2.6 2.6 2.9 3.2 Amortization - - 0.6 1.3 Inventory
Slide 29: Adjusted EBITDA Reconciliation – Metals Segment
LTM 2010 2011 2012 6/29/2013 Adjusted EBITDA Reconciliation Metals Segment Net Income $3.7 $9.3 $6.1 $7.0 Adjustments: Interest Expense - - - - Change in Fair Value of Interest Rate Swap - - - - Tax Provision - - - - Depreciation 2.1 2.1 2.2 2.5 Amortization - - 0.6 1.3 Inventory Loss (Gain) (1.0) 1
Slide 30: Adjusted EBITDA Reconciliation – Chemicals Segment
LTM 2010 2011 2012 6/29/2013 Adjusted EBITDA Reconciliation Chemicals Segment Net Income $4.0 $2.2 $4.8 $5.5 Adjustments: Interest Expense - - - - Change in Fair Value of Interest Rate Swap - - - - Tax Provision - - - - Depreciation 0.4 0.4 0.5 0.5 Amortization - - - - Inventory Loss (Gain) - - - -
Slide 31: Adjusted EBITDA Reconciliation – Unallocated Corporate
LTM 2010 2011 2012 6/29/2013 Adjusted EBITDA Reconciliation Unallocated Corporate Net Income ($3.7) ($5.7) ($6.7) ($7.3) Adjustments: Interest Expense 0.1 0.1 0.6 1.2 Change in Fair Value of Interest Rate Swap - - 0.1 (0.5) Tax Provision 2.1 3.0 2.1 2.6 Depreciation 0.1 0.1 0.2 0.2 Amortization - -