Mccoy Global Inc. · TSX:MCB
Mccoy Global — Investor Presentation (August 2015)
26 slides from Mccoy Global's investor presentation, August 2015
Slide 1: Investor Presentation August 2015
Investor Presentation August 2015
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: Investment Highlights
Investment Highlights Global leader of casing Supporting advancements in casing connection integrity connection Evolving to maintain leading global market share technologies Growing international Geographic diversification to more stable regions presence Improved regional market share opportunities
Slide 4: Competitive Advantages
Competitive Advantages Broadest platform of Global service and Installed product tubular make-up support base equipment in the market Investing in R&D to Engineered solutions for develop market leading complex applications technologies 4
Slide 5: McCoy's technologies
Connection Integrity McCoy’s technologies control and monitor connection make-up, and collect data to verify connection integrity 5
Slide 6: Connection Make-Up and Data Collection Technologies
Connection Make-Up and Data Collection Technologies Making-up reliable connections to support well integrity weCATTTM Wireless data Hydraulic Power Tongs monitoring of torque, Apply torque to make-up / turns and hook load break-out tubular on the rig weTORQTM Roughneck Applies both torque and spin t
Slide 7: Deeper, Longer Wells; More Premium Connections
Deeper, Longer Wells; More Premium Connections A connection occurs an average of every 40 feet of well length Casing Joints Run Worldwide1 (millions) ~75% U.S. land rigs drilling non- vertical wells; international demand is growing Higher pressure/temperature of offshore and deeper onshore wells req
Slide 8: Global Clients
Global Clients Tubular & Service Threading Companies Manufacturers Contract Rig Drillers Manufacturers 8
Slide 9: Growth Strategy
Growth Strategy Develop advanced connection make-up technologies Continue global expansion Target full aftermarket participation Pursue strategic acquisition opportunities 9
Slide 10: Organic Growth: Research and Development
Organic Growth: Research and Development CONTINUED INVESTMENT IN R&D R&D Spend weHOLDTM weBUCKTM ($millions) 3.9 casing handling tool electric bucking unit Dual function control to operate First electrically powered bucking 3.1 either elevator or spider, high unit that decreases cycle time of back-u
Slide 11: Organic Growth: Continued Global Expansion
Organic Growth: Continued Global Expansion Corporate Head Office Production Facilities R&D Center Western Hemisphere Regional Centers Eastern Hemisphere Optimizing global and regional Regional Centers customer support throughout the equipment lifecycle 11
Slide 12: Organic Growth: Global Expansion
Organic Growth: Global Expansion 2014 Geographic Revenue (based on invoiced customer’s location) 61 51 53 Countries Invoiced 2012 2013 2014 Management’s Estimates (based on likely product destination) Increased exposure to the more stable international market 12
Slide 13: Organic Growth: Full Aftermarket Participation
Organic Growth: Full Aftermarket Participation GROWING AFTERMARKET SALES BUILDING CAPITAL EQUIPMENT RENTAL FLEET 13
Slide 14: Capital Allocation
Capital Allocation Organic Growth $23M • Rental fleet • Research and development NET CASH1 • Continue international expansion $15M Strategic Acquisitions • Complementary tubular running FREE CASH FLOW2 technologies and services $50M Return to Shareholders • Dividend CREDIT FACILITY • NCIB 1as at Jun
Slide 15: Financial Overview and Performance
Financial Overview and Performance
Slide 16: Financial Highlights
Financial Highlights as at July 31, 2015 Share price $4.25 52-week range $3.22 - $6.30 Shares outstanding ~27.7 million Options outstanding ~1.7 million Market capitalization ~$118 million Dividend (4.7% yield) $0.05 / share / quarter as at June 30, 2015 Cash $23.0 million Debt nil Committed credit
Slide 17: Year Over Year Revenue Growth
Year Over Year Revenue Growth Revenue ($millions) Gross Profit ($millions) 120.6 46.2 110.2 40.8 101.8 37.7 2012 2013 2014 2012 2013 2014 37% 37% 38% of revenue 17
Slide 18: Key Profitability Measures
Key Profitability Measures ($millions) Net Earnings from Adjusted EBITDA* Continuing Operations Net Earnings** 21.0 9.9 18.0 9.4 18.5 17.0 7.8 11.8 9.8 2012 2013 2014 2012 2013 2014 2012 2013 2014 18% 15% 17% 0.37 0.29 0.34 0.44 0.37 0.65 of revenue per basic share per basic share *Adjusted EBITDA i
Slide 19: Quarterly Results
Quarterly Results ($millions) Revenue Gross Profit 38.3 13.7 11.9 27.9 27.2 10.4 25.8 9.2 23.0 6.7 43% 36% 34% 40% 29% of revenue Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Earnings from Continuing Operations Adjusted EBITDA 8.0 4.2 5.8 5.0 2.3 2.2 1.8 3.9 14% 21% 18% 23% 6% of reve
Slide 20: Investment Highlights
Investment Highlights Global leader of casing Supporting advancements in casing connection integrity connection Evolving to maintain leading global market share technologies Growing international Geographic diversification to more stable regions presence Improved regional market share opportunities
Slide 21: Head Office: Edmonton, AB Canada
Head Office: Edmonton, AB Canada (780) 453-8451 info@mccoyglobal.com www.mccoyglobal.com TSX:MCB, OTCQB:MCCRF
Slide 22: Additional Information
Additional Information
Slide 23: Executive Team and Board of Directors
Executive Team and Board of Directors EXECUTIVE TEAM Jim Rakievich, ICD.D President, Chief Executive Officer and Director Jacob Coonan, MPAcc, CA Chief Financial Officer Kenny Watt Senior Vice President Peter Watson, Esq. Vice President, Corporate Development & General Counsel Suzanne Langier Vice P
Slide 24: Analyst Coverage
Analyst Coverage Canaccord Genuity John Bereznicki Calgary, Alberta Industrial Alliance Securities Elias Foscolos Calgary, Alberta Cormark Securities Sarah Hughes, CFA Toronto, Ontario Raymond James Theoni Pilarinos, CFA Vancouver, British Columbia Paradigm Capital Jason Tucker Calgary, Alberta GMP
Slide 25: Capital Structure
Capital Structure ⁄ 1997: IPO of ~9.4 million shares at $2/share ⁄ 2002: ~7.3 million shares issued to Foundation Equity to convert promissory note ⁄ 2007: $46.4 million equity raise ~8.85 million shares @ $5.25; Foundation Equity sold $10 million in shares ⁄ 2013: Foundation Equity sale of 5.2 mill
Slide 26: The Anatomy of a Well
The Anatomy of a Well Well Casing Diagram Cement (not to scale) Less Conductor casing Technical Surface casing ~950-3,500 ft Intermediate casing ~10,500 ft Production casing ~13,000 More Technical Production tubing ~14,000-15,000 ft 26