Covia — Q2 2019 Earnings Presentation
16 slides from Covia's earnings presentation, Aug 8, 2019
Slide 1: 2Q 2019 Earnings Presentation
2Q 2019 Earnings Presentation August 8, 2019 Exhibit 99.2
Slide 2: Forward Looking Statements
Forward Looking Statements Forward-Looking Statements This presentation contains forward-looking statements intended to qualify for the protection of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “estimate,” “expect,” “objective,” “goal,” “
Slide 3: Covia: A Leading Diversified Mineral and Material Solutions Company
Covia: A Leading Diversified Mineral and Material Solutions Company Covia is a leading provider of advanced mineral-based material solutions across Industrial and Energy markets Energy 26 million tons of nameplate capacity Ability to serve all major oil & gas basins with low cost plants Extensive pr
Slide 4: Diverse Industrial Business
Diverse Industrial Business Containers Touch screens Automotive Architectural Solar Tiles Sanitary ware Bathtubs & sinks Demonstrated leadership and customer knowledge across diversified end markets Grouts and mortars Commercial flooring Roofing shingles Quartz surfaces Fiberglass Transport - auto,
Slide 5: Low-Cost Energy Asset Portfolio
Low-Cost Energy Asset Portfolio In-Basin Plants Primary Basin(s) Served Logistics Energy Capacity (mtpa) Kermit, TX Crane,TX Seiling, OK Permian, Mid-Con 8.0 N/A Unit Train Capable Wedron, IL Oregon, IL Bakken, Mid-Con Rockies, Permian, Eagle Ford Yes Utica, IL Northeast Yes Tunnel City, WI Bakken,
Slide 6: Covia's Edge: Value Proposition
Covia’s Edge Robust Industrial Segment Attractive Cash Flow Low-Cost Proppant Provider COVIA’S VALUE
Slide 7: Significant Progress Toward Balance Sheet Improvement
Significant Progress Toward Balance Sheet Improvement Optimize Assets Maximize Cash Flow STRENGTHEN Balance Sheet Consolidation of production into lowest cost facilities Reduced operating costs across footprint Commissioned 8 million tons of in-basin capacity Divested 470 railcars Industrial generat
Slide 8: Financials and Outlook
Financial Transition Slide FINANCIALS and OUTLOOK
Slide 9: Quarter Highlights
Quarter Highlights 2Q 19 Highlights Generated strong sequential profitability growth Adjusted EBITDA of $65.3 million, up $30.9 million sequentially 2Q 19 cash flow from operations of $107 million 2Q 19 SG&A reduced 25% from 2Q 18 on a pro forma basis Announced divestiture of non-core assets for gro
Slide 10: Progress in Increasing Profitability
Progress in Increasing Profitability Millions 25% decrease Millions
Slide 11: 2Q 2019 Results
2Q 2019 Results In millions Industrial Energy Total Company Volumes (tons) 3.6 4.6 8.2 Revenue $193.4 $251.5 $444.9 Contribution Margin $65.1¹ $40.9 ² $106.0³ SG&A -- -- $38.64 Adjusted EBITDA -- -- $65.3¹ 1 - Includes $0.2mm in purchase accounting charges 2 - Includes negative impact of $2.1 mm lea
Slide 12: Outlook
Outlook Industrial 3Q 2019 Volumes Similar to 2Q 2019 Energy 3Q 2019 Volumes Similar to 2Q 2019 Total Company FY19 SG&A $145 million to $155 million Includes ~$10mm in non-cash stock comp Capex $80 million to $100 million
Slide 13: Appendix
COVIA C Appendix
Slide 14: Appendix: Non-GAAP Reconciliation Contribution Margin
Appendix: Non-GAAP Reconciliation Contribution Margin(1) 2018 Pre-Merger financial results are for Fairmount Santrol Holdings Inc. ("Fairmount Santrol"), for the two and five months ended May 31, 2018, the day before the merger between Fairmount Santrol and Unimin Corporation ("Unimin") occurred on
Slide 15: Appendix: Non-GAAP Reconciliation EBITDA & Adjusted EBITDA
Appendix: Non-GAAP Reconciliation EBITDA & Adjusted EBITDA Footnotes on following page Three Months Ended March 31, 2019 As Reported Revenues $ 428,246 Cost of goods sold (excluding depreciation, depletion, and amortization shown separately)(4) 361,560 Operating expenses Selling, general and adminis
Slide 16: Appendix: Non-GAAP Reconciliation EBITDA & Adjusted EBITDA continued
Appendix: Non-GAAP Reconciliation EBITDA & Adjusted EBITDA continued (1) The unaudited pro forma condensed financial information presents the Company’s combined results as if the Merger had occurred on January 1, 2017. The pro forma financial information was prepared to give effect to events that ar