Mccoy Global Inc. · TSX:MCB
Mccoy Global — Investor Presentation (October 2013)
28 slides from Mccoy Global's investor presentation, October 2013
Slide 1: We Are McCoy: Innovative Products, Going Global
WE ARE McCOY M COYINNOVATIVE PRODUCTS, PRODUCTS GOING GLOBAL October 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: Product Innovator, Going Global
PRODUCT INNOVATOR, GOING GLOBAL ⁄ Experts in making up threaded connections ⁄ Tubular handling, assembly & measurement ⁄ D Developing l i innovative i ti products d t based on client needs ⁄ Strongg and ggrowingg technology gy driven market ⁄ Every new product is developed with at least one customer
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: Strong Outlook for Offshore Drilling Market
STRONG OUTLOOK FOR OFFSHORE DRILLING MARKET ⁄ E&P company offshore CAPEX forecasted to increase 10-15% through 20151 ⁄ Record number of >4000 ft deep offshore discoveries in 20122 ⁄ Forecasted 40-45% ultra-deepwater demand ggrowth through g 20151 ⁄ U.S. GOM drilling activity rebounding ⁄ Forecasted
Slide 6: Global Clients
GLOBAL CLIENTS Target customers: ⁄ Service companies (Baker, Weatherford) ⁄ Rig manufacturers (NOV, Cameron) ⁄ Contract drillers (Transocean, H&P) 6
Slide 7: 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 ⁄ Sales & Service Center Headquarters ⁄ New Product Development ⁄ S
Slide 8: Energy Products and Services
ENERGY PRODUCTS AND SERVICES Drilling and Completions
Slide 9: 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 10: Mobile Solutions
MOBILE SOLUTIONS
Slide 11: Engineered Transportation Solutions
ENGINEERED TRANSPORTATION SOLUTIONS ⁄ North American Oil and Gas industry focused ⁄ Mobile M bil SSolutions’ l ti ’ brands b d iincludel d PPeerless l andd S Scona ⁄ 3 U.S. sub-contracting plants: 2 in Texas; 1 in Arkansas ⁄ Manufacturingg pplant in British Columbia,, Canada Standard Oilfield Traile
Slide 12: Growth Strategy
GROWTH STRATEGY
Slide 13: Innovative Products, International Focus, Strategic Acquisitions
INNOVATIVE PRODUCTS INTERNATIONAL FOCUS STRATEGIC ACQUISITIONS 13
Slide 14: 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 15: 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 16: 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 17: Financial Overview and Performance
FINANCIAL OVERVIEW AND PERFORMANCE
Slide 18: Revenue Growth
REVENUE GROWTH Revenue by Segment (millions) $63 $69 $32 $116 $85 $69 2010 2011 2012 EP&S Mobile Solutions 18
Slide 19: Earnings Growth
EARNINGS GROWTH $22.9 Consolidated Adjusted $21.6 Consolidated Adjusted EBITDA* (millions) & EBITDA* per share Adjusted EBITDA EBITDA* Margin $13.6 2012 $0.86 13.4% 14.0% 12.7% 2011 $0.81 $8.4 $1.9 Adjusted EBITDA* by Segment (millions) $3 3 $3.3 2010 $$0.51 Mobile *Adjusted EBITDA is as an addition
Slide 20: Dividend Growth
DIVIDEND GROWTH Dividend per common share (last 2 years) $0.05 $0.05 $0.05 $0.05 $0.05 $0.05 $0.03 $0.03 2.9% yyield (as at September 30, 2013) 20
Slide 21: Strong Balance Sheet
STRONG BALANCE SHEET As at June 30, 2013 Debt $50 million committed senior secured revolving credit facility $9.0 million $3 million committed senior L/C facility - Cash $18.9 million Net Debt ($10.3 million) M k t Summary Market S ( att September (TSX) (as S t b 30, 30 2013) Share price $6.85 52-we
Slide 22: Investing in McCoy
INVESTING IN MCCOY ⁄ Innovative technologies with barriers to entry ⁄ Strong long term offshore and international market fundamentals ⁄ Growing global market presence ⁄ Significant growth and earnings potential ⁄ Attractive dividend yield ⁄ Strong balance sheet 22
Slide 23: We Are McCoy
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, OTCQX:MCCRF
Slide 24: Additional Information
ADDITIONAL INFORMATION Executive Team Board of Directors Analyst Coverage Capital Structure
Slide 25: Executive Team
EXECUTIVE TEAM Corporate Jim Rakievich, ICD.D President and Chief Executive 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 Jim Nowotny, BSME Senior Vice President,
Slide 26: 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 27: Analyst Coverage
ANALYST COVERAGE Paradigm Capital Jason Tucker Calgary, Alberta Raymond James Theoni Pilarinos, CFA Vancouver British Columbia Vancouver, Cormark Securities Sarah Hughes, CFA Toronto, Ontario GMP Securities L.P. Justin Wu, CFA Toronto, Ontario MGI Securities Elias Foscolos Calgary, Alberta 27
Slide 28: 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