Divestco — Shareholder Meeting (May 2007)
25 slides from Divestco's shareholder meeting presentation, May 2007
Slide 1: Divestco Inc. 2007 Annual & Special Meeting
Divestco Inc. 2007 Annual & Special Meeting May 2007 The Evolution of Exploration An Integrated Solution
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements, including statements regarding the business and anticipated financial performance of Divestco Inc. “(the Company”). These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause t
Slide 3: Company Snapshot
Company Snapshot Stock Symbol : DVT (TSX) Shares Outstanding: 40,400,000 Insider Ownership: ~30% Employees: 550 52 Week High/Low: $6.92/2.27 Current Share Price: $3.75 Current Market Cap: $151,550,000 Enterprise Value(1): $166,500,000 (1) Market Capitalization + Funded Debt - Cash 3 TSX: DVT
Slide 4: Board of Directors
Board of Directors John Brussa - Chairman(2) Wade Brillon - Director Brent Gough - Director (1,2,3) M. Scott Ratushny - Director (1,3) Edward L. Molnar - Director (1,2) Stephen Popadynetz - CEO & Director Todd A. Chuckry - Proposed (1) Member of Audit Committee (2) Member of Compensation Committee (
Slide 5: Officers
Officers Stephen Popadynetz - CEO & Director Roderick Chisholm - Chief Financial Officer Terry Barnhart - President Todd Chuckry - President, Divestco Seismic LP Steve Sinclair-Smith - SVP Services Mathew Hepton - VP Software Development Lonn Hornsby - SVP Operations, Divestco Seismic LP Oliver Kuhn
Slide 6: Integrated Business Model
Integrated Business Model Software Services • Over 20 geological, geophysical and land • Data quality assurance and management applications services for geophysical and geological • Used by customers worldwide and related information installed on over 35,000 desktops • Provides Seismic Survey Audit,
Slide 7: Long-Term Vision
Long-Term Vision Services Data Software Consulting 10% 8% 16% 25% 7% 25% 69% 40% Revenue Mix 2006 Target Revenue Mix 2011 7 TSX: DVT
Slide 8: 2006 Operational Highlights
2006 Operational Highlights • Completed 2 corporate acquisitions (Geo-X Processing and Cavalier Land) for total consideration of approx. $20 million • Successfully raised $12.3 million in gross proceeds from an equity financing • Increased revenue approximately 175% from 2005 • Acquired an additiona
Slide 9: 2007 Initiatives & Outlook
2007 Initiatives & Outlook • Complete 3-4 additional share/asset accretive acquisitions CAN/US • Strengthen balance sheet and secure new Long- Term Debt structure • Focus on securing appropriate long-term office space to centralize operations, allow for growth and realize internal synergies • Target
Slide 10: Growth Through Acquisition: 2007
Growth Through Acquisition: 2007 Divestco Closes Acquisition of BlueGrouse Seismic Solutions Ltd. May 3, 2007 TERMS: • Ratio: 3.2 BGH Shares for 1DVT Share (4.6M Shares) • Up to 6.6M(1) DVT Shares issued on a FD basis • BGH Value: Approximately $37.5M(2) comprised of $18.5M in equity and 19M in debt
Slide 11: Growth Through Acquisition: Why BlueGrouse?
Growth Through Acquisition: 2007 Why BlueGrouse? • BlueGrouse has ownership in over 30,000 kms of 2D data and over 3,000 square kms of 3D Data • Large inventory of projects for 2007/2008 • Natural fit for our Seismic Data, Archiving, Survey Audit, and Processing business units • Significant cost sav
Slide 12: Complimentary Databases
Complimentary Databases >90,000 Km’s of 2D Data >10,000 Square Km’s of 3D Data 12 TSX: DVT
Slide 13: Synergies: The DVT Advantage
Synergies The DVT Advantage • Processing: ~$1.0M – 2.0M/year • Archiving: ~$0.5M/year • Auditing: ~$0.5M – 0.8M/year • Exchange: ~$0.1M/year • Legal/Audit: ~$0.3M/year • G&A: ~$0.8M/year TOTAL ANNUAL COST SAVINGS: $3.2M – 4.5M/year 13 TSX: DVT
Slide 14: Seismic Data Growth: 07/08
Seismic Data Growth: 07/08 CUTBANK RIDGE CONTINUES TO BE THE “GROWTH ENGINE” FOR DVT’S 3D SEISMIC BLUEGROUSE DATA ADDITIONS EXISTING DVT DATA 07/08 > $100M in New Shoots 14 TSX: DVT
Slide 15: Seismic Data Growth: 07/08
Seismic Data Growth: 07/08 NEW SEISMIC FRANCHISES BGH’S SNAKE CREEK DVT’S DEBOLT PROGAMS $22M in New Shoots $25M in New Shoots 15 TSX: DVT
Slide 16: Seismic Data Growth
Seismic Data Growth Upon completion of our 2007 seismic acquisition programs, and Merger with BGH Divestco expects to1: • Own/control > 90,000 km’s of 2D Data • Own/control ~ 13,500 square km’s of 3D Data • Be involved in approximately $450M of shot and purchased seismic since 2003 • Be the largest
Slide 17: New Debt Facility: WFFCC
New Debt Facility: WFFCC Wells Fargo Financial Corp. Canada Closed April 20, 2007 • $60 Million - 5 year committed facilities • 3-$20M tranches: $20M Revolving, $20M Term A, $20M Term B • Replaces existing Canadian Term and Senior debt providers • All in interest rates similar to what was previously
Slide 18: Financial Review
Financial Review 2005 Results 2006 Results % Change Revenue $38.8M $106.5M 175% EBITDA $16.5M $63.7M 286% Net Income $5.2M $19.6M 279% Funds from $0.60/share $1.94/share 223% Operations(1) EPS(1) $0.20/share $0.60/share 200% (1) Basic 18 TSX: DVT
Slide 19: Financial Highlights by Quarter
Financial Highlights by Quarter 40 35 Revenue 30 25 $ Millions EBITDA 20 15 Net Income 10 5 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2003 2004 2005 2006 13 Consecutive Quarters of Profitability and Growth 19 TSX: DVT
Slide 20: Financial Highlights by Year
Financial Highlights by Year 120 100 Revenue 80 $ Millions EBITDA 60 Net Income 40 20 0 2002 2003 2004 2005 2006 20 TSX: DVT
Slide 21: Share Price Performance
Share Price Performance $8.00 1,600,000 $7.00 1,400,000 $6.00 1,200,000 $5.00 1,000,000 Trading Volume Share Price $4.00 800,000 $3.00 600,000 $2.00 400,000 $1.00 200,000 $- - 3-Jan-06 4-May-06 2-Sep-06 1-Jan-07 2-May-07 Provided by Blackmont Capital Inc. 21 TSX: DVT
Slide 22: Relative Performance: Total Returns
Relative Performance Total Returns Jan. 3, 2006 - May 4, 2007 140% 120% 100% 80% Total Return 60% 20.3% 40% 19.0% 20% 6.4% 0% -20% -40% 3-Jan-06 4-May-06 2-Sep-06 1-Jan-07 2-May-07 DVT S&P/TSX Composite Index S&P/TSX Energy Index Provided by Blackmont Capital Inc. 22 TSX: DVT
Slide 23: Historical Performance
Historical Performance 23 TSX: DVT
Slide 24: Questions?
Questions? Thank you for your interest For further information, please contact: Stephen Popadynetz, CEO 403.218.6466, stephen@divestco.com Roderick Chisholm, CFO 403.218.6450, rod.chisholm@divestco.com investor.relations@divestco.com 24 TSX: DVT
Slide 25: The Evolution of Exploration
The Evolution of Exploration An Integrated Solution