North American Construction Group Ltd. · TSX:NOA
North American Construction — Q2 2023 Earnings Presentation
17 slides from North American Construction's earnings presentation, Jul 27, 2023
Slide 1: Q2 2023 Earnings Presentation
Q2 2023 EARNINGS PRESENTATION July 27, 2023
Slide 2: Forward-looking statements & non-GAAP financial measures
Forward-looking statements & NOA TSX - NYSE non-GAAP financial measures This presentation contains forward-looking information which reflects the current plans and This presentation presents certain non-GAAP financial measures because management believes expectations of North American Construction G
Slide 3: Everyone Gets Home Safe
Everyone Gets NOA TSX - NYSE Home Safe Trailing twelve-month recordable injury rate below target consistent with positive trends in late 2022 & first half 2023 Maintaining focus on health & safety through initiatives • Utilization of drone technology to improve hazard identification in remote locati
Slide 4: Equipment Utilization
NOA Equipment Utilization1 TSX - NYSE 100% 80% Target range of 75% to 85% 61% 59% 60% 60% 52% Q2 2023 46% 40% 27% 27% 24% 20% 8% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q2 impacted by weathe
Slide 5: 2023 Q2 Financial Overview
2023 Q2 FINANCIAL OVERVIEW 5
Slide 6: 2023 Q2 Performance
NOA 2023 Q2 Performance TSX - NYSE $277M $52M 61% 15.3% Combined Adjusted Equipment Return on revenue1 EBITDA1 utilization2 invested capital 1 • Combined revenue 1 of $277M represents $100 Adjusted EBITDA1 a $49M or 21% increase from Q2 2022 $90 Q2 2023 • Adjusted EBITDA of $52 million set a new Q2
Slide 7: Combined Results
NOA TSX - NYSE Combined Results (figures in millions of Canadian dollars, ex cept per share amounts) 2023 Q2 2022 Q2 Variance Wholly-owned entities $194 $168 $26 Share of amounts from investments $83 $60 $23 TOTAL COMBINED REVENUE1 $277 $228 $49 Combined gross profit1 $36 13.1% $22 9.6% $14 Q2 2023
Slide 8: Adjusted EBITDA and EPS
NOA TSX - NYSE Adjusted EBITDA1 and EPS 1 (figures in millio ns o f Canadian do llars, except per share amo unts) 2023 Q2 2022 Q2 Variance 1,3 Adjusted EBITDA $52 18.7% $42 18.3% $10 1,3 Adjusted EBIT $23 8.3% $13 5.6% $10 Adjusted EPS1 $0.47 $0.17 $0.30 2 General & administrative expenses $7 3.7% $
Slide 9: Cash Provided by Operating Activities
NOA TSX - NYSE Cash Provided by Operating Activities (figures in millions of Canadian dollars unless otherwise stated) 2023 Q2 2022 Q2 Variance Cash provided by operations prior to change in working capital1 $27 $33 ($6) Net changes in non-cash working capital $13 2 11 Cash provided by operating act
Slide 10: Balance Sheet
NOA TSX - NYSE Balance Sheet (figures in millio ns o f Canadian do llars unless o therwise stated) June 30, 2023 December 31, 2022 December 31, 2021 Cash $22 $69 $17 Total capital liquidity 1 159 212 233 Property, plant & equipment 684 646 641 Total assets 971 980 869 Senior debt 1,2 $257 1.3x $266
Slide 11: Bid Pipeline
NOA TSX - NYSE Bid Pipeline ESTIMATED PROJECT COMMENCEMENT TIMING Q3 2023 H2 2023 2024 2025+ Preferred opportunities & extensions Q2 2023 Projects in the active tender phase Projects in the pre- tender phase Diversified resources & geography • Bid pipeline1 contains ~$5.0 billion of specific scopes
Slide 12: Supplemental Information
NOA SUPPLEMENTAL INFORMATION TSX - NYSE 2023 Q2 EARNINGS PRESENTATION Q2 2023 12 12
Slide 13: Company Overview
NOA TSX - NYSE Company Overview Premier provider of mining and heavy construction services • Established reputation with over 70 years in business • Long-term contracts awarded based on safe, cost-effective operations Mobile fleet of ~900 heavy equipment assets • Fully backed by support equipment &
Slide 14: Long Term Contracts
NOA TSX - NYSE Long Term Contracts Owner Contract1,2 Base Mine – Millennium Suncor Energy MUA 2023 2040 & North Steepbank Services Inc. with term MUC 2023 2059 Fort Hills Mine Fort Hills Energy LP with term Mildred Lake & MSA 2023 2046 Syncrude Canada Aurora mines with term Q2 2023 MSA 2027 2060 Kea
Slide 15: Heavy Equipment Fleet
NOA TSX - NYSE Heavy Equipment Fleet • As at June 30, 2023, ~900 mobile heavy equipment assets provide operational flexibility • Managed on an individual asset basis and deployed with sole objective of maximum operating utilization • ~300 assets operated within the Nuna Group of Companies • New repl
Slide 16: Maintenance Headcount
NOA TSX - NYSE Maintenance Headcount Key driver for sustained 450 equipment utilization Target NACG headcount level 400 • Apprenticeship program addressing persistent shortages 350 • Direct service providers & third- party vendors provide required supplementary capacity Q2 2023 300 • Maintenance hea
Slide 17: Summarized Free Cash Flow
NOA TSX - NYSE Summarized Free Cash Flow1 Q2 Q2 Joint 2023 Wholly- Joint 2022 figures in C$ millions Wholly-owned ventures YTD owned ventures YTD Adjusted EBITDA 1 $108) $28) $136) $80) $19) $99) Sustaining capital 1,2 (86) (15) (101) (57) (21) (78) Interest & taxes 3 Q2 2023 (17) (1) (18) (10) (3)
North American Construction Group — Q2 2023 Earnings Presentation on 6ix