Concrete Pumping Holdings, Inc. · NASDAQ:BBCP
Concrete Pumping — SPAC Merger (November 2018)
42 slides from Concrete Pumping's SPAC merger presentation, Nov 13, 2018
Slide 1: Investor Presentation November 2018
Investor Presentation November 2018
Slide 2: Important Information
Important Information This investor presentation (“Investor Presentation”) is for informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any equity, debt or other financial instruments of Industrea Acquisition Corp . (
Slide 3: Leadership Team
_____________________________________________________________________________________________________________________________ ___ ________________________________________________________ Note: One or more of the Argand investment team members were substantially involved in the acquisition, managemen
Slide 4: Company Overview
Company Overview CPH Overview Leading concrete pumping provider in both the U.S. (Brundage - Bone) and U.K. (Camfaud) Leading concrete waste management service provider in the U.S., with emerging presence in the U.K. (Eco - Pan) ~120 operating branches 600+ highly trained operators 940+ eq
Slide 5: Investment Highlights
10.9x 16.8x 16.8x 0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x 14.0x 16.0x 18.0x CPH Specialty Rental Specialty Waste Services Strong Fundamentals Highly Attractive Valuation x Attractive industry dynamics – commercial, environmental and legislative tailwinds x Secular trend towards concrete pumping – faste
Slide 6: Diversified revenue by region and project size
20% 17% 21% 18% 24% Central Mountain South Southeast West 6% 26% 14% 18% 17% 9% 9% Under $500 $500-1,000 $1,000-1,500 $1,500-2,500 $2,500-5,000 $5,000-10,000 $10,000+ No Project Concentration ____________________________________________________________________________________________________________
Slide 7: Significant Advantages of Concrete Pumping
Significant Advantages of Concrete Pumping Crane & Bucket Wheel - barrow Concrete Placement Methods Tailgating Speed and Efficiency Access / Precision of Placement Safety Consistent Placement Advantages of Concrete Pumping _____________________________________________________________________________
Slide 8: Concrete Pumping Gaining Share
Concrete Pumping Gaining Share (% of total U.S. concrete placement that is pumped) Large, Growing Market Supported by Compelling Tailwinds U.S. Concrete Production (Millions of cubic yards) 396 406 390 404 431 458 457 415 352 259 257 266 290 300 325 336 351 351 '00 '01 '02 '03 '04 '05 '06 '07 '08 '0
Slide 9: Market Leader in U.S. and U.K.
Market Leader in U.S. and U.K. U.S. Market Position (Percent of Concrete Pumping Spend) U.K. Market Position (Percent of Concrete Pumping Spend) 34% 66% ~$140m Others Key Highlights Most competitors serve only local areas and lack the breadth of equipment (typical fleet of ~5 - 10 pumps) Few reg
Slide 10: CPH Competitive Advantages
CPH Competitive Advantages Compelling Customer Value Proposition Increasing Importance to Customers Reliability Track record of quality and on - time completion Wide Range of Equipment Fleet of boom pumps ranges from 17 to 63 meters Also maintains fleet of stationary pumps, placing booms, tele
Slide 11: Key Advantages of Business Model
Key Advantages of Business Model Services provided on a hourly and yardage poured basis, and include invoicing a travel charge Surcharge for any additional costs (such as fuel) High percentage of repeat customers plus strong referral network Simple Bidding Process Pure service business that
Slide 12: Scale advantages
Receives a ~10% discount on OEM capex purchases relative to smaller competitors Achieves a ~70% discount on parts relative to smaller competitors Receives a meaningful discount on fuel purchases by buying wholesale Able to negotiate discount on insurance as a scale purchaser with a more robu
Slide 13: Eco-Pan – A Unique, Disruptive Environmental Solution
Eco - Pan – A Unique, Disruptive Environmental Solution ______________________________________________________________________________ Note: Eco - Pan financial profile reflects historical results and may not be indicative of future returns. 12 Stringent regulation on washout of concrete pump truc
Slide 14: Framing the CPH Growth Opportunity
4 3 2 Framing the CPH Growth Opportunity 1 Scalable platform that is positioned for continued strong organic and strategic growth Capture Greater Market Share Optimize Pricing Expand Eco - Pan Pursue Acquisitions 13
Slide 15: Capture Greater Market / Wallet Share
0% 50% 100% 1 2 3 4 5 6 7 8 9 10 Pumping Customers Capture Greater Market / Wallet Share 1 Drivers of Growth x Favorable market tailwinds – customers posting record backlogs x CPH customers capturing greater share x Increasing project complexity x Ability to charge premium pricing for superior quali
Slide 16: Massive Infrastructure Opportunity in the U.S. and U.K.
Massive Infrastructure Opportunity in the U.S. and U.K. 15 $77 billion HS2 project Highly concrete intensive, with a very large percentage requiring pumping CPH’s U.K. segment (Camfaud) is well positioned to receive a large share given its national footprint and fleet capabilities Expected C
Slide 17: Track Record of Pricing Optimization
Track Record of Pricing Optimization Drivers of Pricing Optimization Faster, Safer & Higher Quality Advantages of concrete pumping ~90 mins Time before ready - mix concrete perishes ~3 mins Approximate time for concrete pumping to empty ready - mix truck ~10% Ready - mix concrete costs (as % of over
Slide 18: Eco-Pan – Market Opportunity
17 Eco - Pan – Market Opportunity 3 Eco - Pan U.S. Market Opportunity Total US Market Opportunity $850m+ $24m FY17 Eco - Pan Revenue (Current Penetration of ~3%) $826m+ Large Market for Continued Penetration Washout Method Alternatives Washout Pits Roll - Off No Solution Washout Pans / Management Se
Slide 19: Eco-Pan – Compelling Economics & Strong Barriers to Entry
Eco - Pan – Compelling Economics & Strong Barriers to Entry 3 18 Protected by Strong Barriers to Entry x Cross - sell to CPH’s large, complementary concrete pumping customer base x Investment in high - quality pans and service (designed by industry operators) x Substantial brand equity and awareness
Slide 20: Proven M&A Platform
Proven M&A Platform 4 _____________________________________________________________________________________________________________________________ ___ __________ Note: Figures above are indicative of historical acquisition results. There can be no assurances that future acquisitions wil l o ccur or
Slide 21: Financial Overview
Concrete Pumping Holdings, Inc. Financial Overview
Slide 22: Financial summary and forecasts
$12 $19 $13 $19 $18 $17 $11 $10 $6 $13 FY2015 FY2016 FY2017 FY2018E FY2019E Net Maintenance Growth _____________________________________________________________________________________________________________________________ ___ _______________________________________________________ Note: CPH has a
Slide 23: CPH Trading Update
CPH Trading Update 22 Concrete Pumping Commentary ▪ Pricing and volume growth across both U.S. and U.K. Concrete Pumping ▪ U.S. Concrete Pumping has benefited from positive construction momentum across all end markets ▪ U.K. Concrete Pumping has continued to grow and take market share in the United
Slide 24: Highly Variable Cost Structure
FY 2017 Approximate Variable Component Cost of Sales: Personnel $63.4 85% Fuel 10.4 95% Parts, repairs & maintenance 21.9 95% Insurance 7.1 70% Other 6.0 80% Total Cost of Sales $108.9 87% % of Revenue 48.9% SG&A Expenses: Personnel $24.5 20% Facilities 3.6 10% Auto 2.1 20% Travel & entertainment 2.
Slide 25: Strong Unit Economics Across Both Concrete Pumping and Eco-Pan
Strong Unit Economics Across Both Concrete Pumping and Eco - Pan 24 _____________________________________________________________________________________________________________________________ ___ ________________________________________________________ Note: Unit economics and return profile refle
Slide 26: Robust, Specialized Fleet of Mobile Pumping Equipment
Robust, Specialized Fleet of Mobile Pumping Equipment 25 ________________________________________________________________________ Note: Fleet profile as of July 31, 2018. Includes impact of April 2018 O’Brien acquisition. CPH’s Approach to Fleet Management Acquire new equipment to replace equipmen
Slide 27: Transaction Overview
Concrete Pumping Holdings, Inc. Transaction Overview
Slide 28: Transaction Overview
Transaction Overview Industrea Acquisition Corp. will acquire Concrete Pumping Holdings, a leading provider of concrete pumping services and concrete waste management services from Peninsula Pacific, CPH Management, and Former CPH Employee Shareholders (collectively the “Sellers”) Implied Enterp
Slide 29: Pro Forma Capitalization at Close
Pro Forma Capitalization at Close Market Capitalization 3 $452.1 Net Debt (2.6x FY 2019E Adjusted EBITDA) $243.5 Implied Enterprise Value $695.6 FY 2019E Adjusted EBITDA Multiple ($95m) 7.3x _____________________________________________________________________________________________________________
Slide 30: Attractive Financial Profile and Valuation Versus Peers
10.9x 26.2x 19.3x 16.9x 11.4x 10.4x NA NA 21.8x 20.0x 17.3x 16.0x 14.7x 11.0x 0.0x 10.0x 20.0x 30.0x 7.3x 12.2x 11.8x 9.6x 8.6x 8.3x 8.0x 7.9x 16.2x 12.8x 10.9x 9.9x 9.8x 8.8x 0.0x 10.0x 20.0x ___________________________________________________________________________________________________________
Slide 31: Attractive Financial Profile and Valuation Versus Peers (continued)
8% 7% 0% (0%) (1%) (2%) (5%) NA 8% 0% (1%) (5%) (8%) (11%) (20%) 0% 20% 35% 40% 38% 34% 28% 26% 20% 10% 28% 24% 23% 22% 21% 15% 0% 20% 40% CPH’s valuation is at a significant discount to its peers; while its operating metrics compare favorably Attractive Financial Profile and Valuation Versus Peers
Slide 32: Appendices
Concrete Pumping Holdings, Inc. Appendices
Slide 33: CPH Independent Directors
Former MD & CEO of Bradken (ASX:BKN); Led management buyout of Bradken in 2001 25+ years of management and leadership experience in raw material production and processing, supply and logistics and steel manufacturing Brian Hodges 2 CPH Independent Directors 32 Former CEO and President of Lafar
Slide 34: CPH Independent Directors (continued)
CPH Independent Directors (continued) CEO of Industrea Partner & Senior Managing Director of Argand Partners Former President of Castle Harlan Director of Oase Former Director of Shelf Drilling (OSLO: SHLF), Pretium Packaging, IDQ Holdings, Securus Technologies, Baker & Taylor, Polypipe (L
Slide 35: Credit Facilities Summary – Illustrative Terms
dit Facilities $350m Term Loan Facility and $60m ABL Revolver Interest Rate - Term Loan Facility: Libor + 600bps - ABL Revolver: Libor + 175 - 225bps based on leverage levels Tenor - Term Loan Facility: 7 Years - ABL Revolver: 5 Years Term Loan Amortization 1.25% per quarter, bullet at maturity. Amo
Slide 36: Preferred Stock Terms
Principal $25m Tenor Perpetual Dividend Zero Offering 2,450,980 shares at $10.20 per share Holder Conversion Right The holder of the Preferred Stock may elect to convert its Preferred Stock into shares of Common Stock at a 1:1 ratio at any time six months after the Closing Date. The total number of
Slide 37: Publicly Traded Comparable Company Metrics
Publicly Traded Comparable Company Metrics 36 _____________________________________________________________________________________________________________________________ ___ ____________________________________________________________________________ Source: Information for companies other than CP
Slide 38: Reconciliation of Non-GAAP Measures
Reconciliation of Non - GAAP Measures 37 _____________________________________________________________________________________________________________________________ ___ __________________________________________________________________ Note: CPH’s U.K. segment (Camfaud) was acquired in November 20
Slide 39: CPH Geographic Coverage
CPH Geographic Coverage 38 ___________________________________________________________________________________________________________________ Note: Denver is the HQ for CPH, London is the main corporate office in the U.K. First Eco - Pan location in the U.K. expected to o pen Q1 FY 2019. U.S. Footp
Slide 40: Select CPH Marquee Projects
Select CPH Marquee Projects 39 Broadway Bridge Other Select Concrete Pumping Projects Crossrail Liverpool Street Station Little Rock, AR Massman Construction contract for Broadway Bridge replacement project 2,786 foot - long concrete and steel arch bridge Brundage - Bone laid ~ 1,000 yards o
Slide 41: CPH in Action
CPH in Action 40 Brundage - Bone, Pacific Northwest Highway Project Brundage - Bone, Salt Lake City Airport Terminal Brundage - Bone, Seattle Construction Mat Pour Brundage - Bone, University of Tennessee Brundage - Bone, Westin Denver Airport Brundage - Bone, Concrete Boom Pump Song C
Slide 42: Concrete Pumping Holdings
CONCRETE PUMPING HOLDINGS
Concrete Pumping Holdings — SPAC Merger (November 2018) on 6ix