Vertex Resource Group Ltd. · TSXV:VTX
Vertex Resource — Investor Presentation (August 2018)
23 slides from Vertex Resource's investor presentation, August 2018
Slide 1: Vertex Resource Group Ltd. Investor Presentation
VERTEX RESOURCE GROUP LTD. INVESTOR PRESENTATION August 2018 www.vertex.ca TSXV : VTX
Slide 2: Disclaimer and Notice to Reader
Disclaimer and Notice to Reader This presentation is for discussion purposes only. The contents are not to be reproduced, summarized or distributed. These materials have been prepared for information purposes only in relation to Vertex and are not, under any circumstances, to be construed as an offe
Slide 3: Company Overview
Company Overview Vertex Resource Group - Environmental • Publicly listed on the TSX Venture exchange under the symbol Operating Locations VTX since October 18, 2017, with a market capitalization of $59 million as of August 9, 2018. • Operating entities were established in 1976. We are a leading Nort
Slide 4: The Foundation: Themes that Lead to Vertex's Creation
Company Overview The Foundation: The Themes that Lead to Vertex’s Creation • Vertex’s management believes there are key over-arching themes present that can increase the focus on certain assets and services long-term: • Increased environmental sensitivity; Holistic Solutions • Increased focus on cor
Slide 5: Wholistic and Innovative Client Solutions
Company Overview Wholistic and Innovative Client Solutions Our Vision: To be the leading provider of integrated environmental services and solutions to a diverse group of clients operating in Canada and the United States. Our Strategy: To assemble, integrate and develop a group of businesses through
Slide 6: Leadership Team - Management
Company Overview Leadership Team Management Senior management ownership - 34.0% Terry Stephenson – President, Chief Executive Officer and Director • Terry founded Vertex in 2005 and as President and CEO, he is responsible for the Company’s day-to-day operations. • Joined Flint Energy Services Ltd. a
Slide 7: Leadership Team - Board of Directors
Company Overview Leadership Team Board of Directors Board ownership – 28.5% Brian Butlin, Chairman of the Board of Directors • Chairman of the Board of Directors since February 6, 2007, Mr. Butlin was Chairman and Chief Executive Officer of Flint Energy Services Ltd. • In addition to his experience
Slide 8: Environmental Services Division
Integrated Solutions from Planning to Reclamation Environmental Services Division (71% of revenue YTD’18) Environmental Land Environmental Fluid Hauling & Support Consulting Consulting Services Management Equipment • Highly skilled engineers, • Help to ensure accurate, • Offers clients integrated •
Slide 9: Industrial Services Division
Company Overview Industrial Services Division (29% of revenue YTD’18) Industrial Insulation & Insulation Metal Building Manufacturing Blankets and Maintenance • Insulation reduces heat loss and heating • Our custom fabricated industrial noise requirements allowing our customers to suppression soluti
Slide 10: Full Cycle Services
Company Overview Full Cycle Services Vertex provides services to clients in many industries and generates revenue at each stage of a project’s life cycle. Oil and Gas Project Timeline Drill & Service Line Site Prep Facilities Operations Maintenance Abandonment Complete Land Consulting Environmental
Slide 11: Customers
Company Overview Customers Vertex has built strong relationships with a wide array of blue chip customers and over the past 5 years has successfully grown its portfolio of clientele with over 86 MSAs. Clients include: Other (Industrial, Commercial, Agriculture, Forestry, Oil & Gas - Upstream Oil & G
Slide 12: Operating Summary - Financial Summary
Company Overview Operating Summary Financial Summary Year ending December 31 (C$ 000's) 2014 (1) 2015 2016 2017 (3) YTD 2018 (3) (4) Revenue 116,465 108,327 86,153 118,419 62,378 Cost of sales 79,381 75,685 61,869 86,116 44,850 Gross Profit 37,084 32,642 24,284 32,303 17,528 Gross profit margin 32%
Slide 13: Financial Snapshot
Financial Summary Financial Snapshot Summary Balance Sheet Share Capital (000's) (C$000's) As at June 30, 2018 Ticker TSXV: VTX Assets Current Assets 37,832 Basic Common Shares Outstanding 93,413 Options @ $1.00 / share 4,203 Equipment including Goodwill 111,722 Total Assets 149,554 Warrants @ $1.20
Slide 14: Growth Drivers - Environmental Services Market (Abandonments)
Company Overview Growth Drivers - Environmental Services Market (Abandonments) Vertex provides environmental services to the growing abandonment and reclamation segment of the oil and gas industry. Increasing Focus On Abandonments and Reclamation Estimated Inactive Wells In Western Canada (1) • Rece
Slide 15: Growth Drivers - Environmental Services Market
Company Overview Growth Drivers - Environmental Services Market Vertex’s expertise in planning and executing reclamation projects becomes increasingly important as costs and complexity increases – USA Case Study. Increasing Regulatory Requirements and Complexity Case Study: Underestimating Reclamati
Slide 16: Growth Drivers - Energy Market
Company Overview Growth Drivers - Energy Market The consensus view supports an increase in spending on oilfield services in Western Canada. Energy Market Growth Drivers E&P CAPEX and Maintenance Spending Trends in Canada (1) • Operating expenditures by upstream and midstream $45,000 $250,000 Oil and
Slide 17: Diversified Strategy
Diversified Strategy Industry Diversification • We continue to capitalize on opportunities to diversify our customer base and lower our risk profile. • Non-energy related projects continue to comprise a material portion of the Company’s operations and growth opportunities. • Operating and maintenanc
Slide 18: Growth Strategy
Company Overview Growth Strategy Growth Strategy ▪ The Company’s has a two-prong strategy (i) organic growth strategy that is focused on material geographical and industry expansion, and (ii) the participation of individual divisions in larger projects. ▪ The Company expects to invest approximately
Slide 19: Why Own Vertex?
Why Own Vertex? Key Reasons Increased Outsourcing by Stable, Recurring Firms to Provide Client Base Specialty Services Strong Client Focused & Regulatory Tailored Development Solutions and Momentum Proven Financial Emphasis on Results Environmental Stewardship Integration and Demonstrated Acquisitio
Slide 20: Contact Information
Contact Information: 161, 2055 Premier Way Sherwood Park, AB T8H 0G2 (780) 464-3295 TSXV : VTX www.vertex.ca 20
Slide 21: Appendix
APPENDIX www.vertex.ca 21
Slide 22: Management Experience: Case Study - Flint Energy Services
Management Experience: Case Study Flint Energy Services Prior to founding the Company, Vertex’s leadership team was responsible for growing Flint Energy Services, a private oilfield services company with $60 million in revenue, to a public corporation with over 7,500 employees, 49 North American loc
Slide 23: Operating History of the Divisions of Vertex
Company Overview Operating History of the Divisions of Vertex The Company’s Management team has a successful track record for identifying accretive and strategic acquisition opportunities and sees further opportunity to be an industry consolidator in the fragmented marketplace. Company Timeline Acqu
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