Slide 1: We Are McCoy: Innovative Products, Going Global
WE ARE McCOY M COY INNOVATIVE PRODUCTS, PRODUCTS GOING GLOBAL May 2013 Investor Presentation
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: Drilling & Completions Product Innovator, Going Global
DRILLING & COMP. PRODUCT INNOVATOR, GOING GLOBAL ⁄ Experts in making up threaded connections ⁄ Tubular T b l hhandling, dli assembly bl & measurementt ⁄ Developing innovative products based on client needs ⁄ Strong St andd growing i technology t h l driven di market k t ⁄ Every new product is develo
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. US 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, Higher P
Slide 5: Global Clients
GLOBAL CLIENTS Target customers: ⁄ Service companies (Baker, Weatherford) ⁄ Contract drillers (Transocean, H&P) ⁄ Rig manufacturers (NOV, Cameron) 5
Slide 6: Growing Sales Footprint
⁄ Sales S l & Service S i C Center t ⁄ Mobile Solutions ⁄ MCB Corporate Head Office ⁄ Manufacturing ⁄ Manufacturing ⁄ New Product ⁄ New Product Development Development ⁄ Service Support ⁄ Service Support ⁄ MCB Drilling & Completions Headquarters ⁄ New Product Development ⁄ Service Support GROWING SA
Slide 7: Energy Products and Services
ENERGY PRODUCTS AND SERVICES Drilling and Completions
Slide 8: Leading & Innovative Drilling & Completions Products
LEADING & INNOVATIVE weCATT Casing DRILLING & COMPLETIONS Torque Sub Running Tool PRODUCTS Casing Running Tool Drives and guides tubular downwards at high rotational speeds to reach total well depth weVERIFY weCATT Torque Sub Records tubular torques, turns and hook loads from topp drive; 1st orders
Slide 9: Mobile Solutions
MOBILE SOLUTIONS
Slide 10: Efficiently Meeting Demand in a Fluctuating Market
EFFICIENTLY MEETING DEMAND IN A FLUCTUATING MARKET ⁄ Mobile Solutions’ brands include Peerless and Scona ⁄ 3 U.S. U S sub-contracting b t ti plants: l t 2 iin TTexas; 1 iin A Arkansas k ⁄ Efficient way to increase/decrease capacity during market peaks/troughs ⁄ Manufacturingg pplant in British Colum
Slide 11: Growth Strategy
GROWTH STRATEGY
Slide 12: Innovative Products, International Focus, Strategic Acquisitions
INNOVATIVE PRODUCTS INTERNATIONAL FOCUS STRATEGIC ACQUISITIONS 12
Slide 13: 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 patents, 10 pending ⁄ Four patent applications filed in 2012 PROJECT Torque Remote Iron Electric Hydraulic Pipe CRT Cas
Slide 14: 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. International *Revenue is attributed to a geographical region based on the location of the customer invoiced, which may not necessar
Slide 15: Strategic Acquisitions
STRATEGIC ACQUISITIONS Tubular Handling Tubular Equipment & Running Tools Handling Accessories • Links Li k Potential • Manual Tongs • Slips • Automated • Downhole • Bushings Pipe Accessories • Elevators Handling • Regional • Controls & Data • Spiders Systems Service Shops In Development • Electric
Slide 16: Financial Overview and Performance
FINANCIAL OVERVIEW AND PERFORMANCE
Slide 17: Market Summary
TSX:MCB Market Summary Share price $4.70 $4 70 (as at May 15, 2013) 52-week range $3.23 - $4.80 Shares outstanding ~26.7 million (as at May 15, 2013) Options ~1.4 million (as at May 15 15, 2013) Market capitalization ~$126 million (as at May 15, 2013) Average daily trading volume 26,214 shares (TTM)
Slide 18: Shareholder Return – Paying Dividends Since 2004
SHAREHOLDER RETURN – PAYING DIVIDENDS SINCE 2004 Dividend Declared Date (last 2 years) Amount per common 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 19: Quarterly Financial Results
QUARTERLY FINANCIAL RESULTS $ million, except noted Q1 2013 Q1 2012 Total revenue 42 0 42.0 45 5 45.5 Net earnings 2.1 2.2 per basic share 0.08 0.08 Adjusted EBITDA 4.7 4.6 per basic share 0.18 0.17 Adjusted EBITDA percent of revenue 11% 10% Cash flow from continuing operating activities (6.0) (3.3)
Slide 20: 2012 Annual Financial Results
2012 ANNUAL FINANCIAL RESULTS $ million, except noted 2012 2011 Change Total revenue 179.4 153.8 +17% Net earnings 11.8 11.9 -1% per share h 0 44 0.44 04 0.45 -2% 2% Adjusted EBITDA 22.9 21.6 +6% per share 0 86 0.86 0 81 0.81 +6% Adjusted EBITDA percent of revenue 13% 14% -1% Cash flow from continui
Slide 21: Investing in McCoy
INVESTING IN MCCOY ⁄ Innovative technologies g with barriers to entryy ⁄ Strong long term offshore and international market fundamentals ⁄ Growing global market presence ⁄ Significant growth and earnings potential ⁄ Excellent E ll t managementt tteam with ith a proven ttrackk recordd ⁄ Attractive di
Slide 22: We Are McCoy
Jim Rakievich President & CEO Jacob Coonan CFO Jim Nowotny Senior VP Drilling & Completions WE ARE McCOY M COY INNOVATIVE PRODUCTS, PRODUCTS GOING GLOBAL Head Office: Edmonton, AB Canada (780) 453-8451 info@mccoyglobal.com www.mccoyglobal.com TSX:MCB
Slide 23: Additional Information
ADDITIONAL INFORMATION Executive Team Board of Directors Analyst Coverage Capital Structure
Slide 24: Executive Team
EXECUTIVE TEAM Corporate Ji R Jim Rakievich, ki i h ICD ICD.D D P id t andd Chi President Chieff E Executive ti Offi Officer Tom Watts Vice President, Human Resources Jacob Coonan, MPAcc, CA Chief Financial Officer Peter Watson Vice President, Legal and Corporate Secretary Energy Products & Services
Slide 25: 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, Ho
Slide 26: Analyst Coverage
ANALYST COVERAGE Paradigm Capital John Bereznicki, CFA C Calgary, Alberta Raymond Ra mond James Theoni Pilarinos, CFA Vancouver, British Columbia Cormark Securities Sarah Hughes, CFA Toronto, Ontario GMP Securities L.P. Justin Wu, CFA Toronto, Ontario 26
Slide 27: 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 M shares @ $5.25; Foundation Equity sold $10 million in shares ⁄ ~3% of O/S shares owned by Management and Dire