Richards Group Inc. · TSX:RIC
Richards — Richards Packaging Income Fund — Investor Presentation (August 2020)
11 slides from Richards's investor presentation, August 2020
Slide 1: Investor Presentation – August 2020
Investor Presentation – August 2020 Gerry Glynn – CEO Enzio Di Gennaro - CFO 0
Slide 2: Disclaimers
Disclaimers Forward-looking statements This presentation contains certain forward-looking statements regarding future growth potential, results of operations, performance and business prospects of the Fund. These statements contain management’s current beliefs and are based on information currently
Slide 3: Highlights
Highlights ➢ #1 packaging distributor in Canada; #3 in North America ➢ Healthcare footprint in Canada only (25% of total enterprise) ➢ Highly diversified geographically and by end customer markets ➢ 63% in the US and 37% in Canada ➢ Higher than industry average organic growth ➢ Adjusted EBITDA as a
Slide 4: Richards Overview – since 1912
Richards Overview – since 1912 Vancouver Edmonton Food, Beverage Calgary & Other 36% Tacoma Kent Winnipeg Cosmetics 41% Portland Montreal Halifax Toronto Granby Reno Sacramento Streator New Jersey Norwalk Los Angeles Distribution Centre Agency Centre Memphis Manufacturing Plant Healthcare 23% Monter
Slide 5: Revenue growth amidst a challenging F/X environment
Revenue growth amidst a challenging F/X environment ($ millions) 2019 2020 Qtr.2 130 (% change) Qtr.3 Qtr.4 Qtr.1 Qtr.2 TTM 120 110 100 Revenue disaggregation 90 Cosmetics……………………….. 4.6% -2.6% 86.0% 82.5% 43.9% 80 Heathcare………………………... 8.0% -2.2% 15.4% 25.1% 11.5% 70 Clarion……….....................
Slide 6: Clarion acquisition and bank debt
Clarion acquisition and bank debt • Clarion • Purchase price of $60.3 mil. • Funded with $35.0 mil. debt, $14.8 mil. cash and $10.5 mil. holdback • Fees of $1.1 mil. • New debt • $100 mil. line split $35 mil. term debt for Clarion and $65 mil. available for future acquisitions • Borrowing rates at B
Slide 7: Adjusted EBITDA strengthening on organic growth and mix
Adjusted EBITDA1 strengthening on organic growth and mix ($ millions) 30 ($millions) Q3 2019 Q4 2019 Q1 2020 Q2 2020 22.0% 25 Revenue $87.3 $79.5 $108.9 $127.0 Margin 16.0 14.6 22.9 32.2 20 19.0% 18.3% 18.4% 21.1% 25.3% 15 Admin. Exp 3.3 3.5 3.7 4.8 16.0% Adjusted EBITDA $12.7 $11.2 $19.3 $27.3 10 1
Slide 8: Net Income
Net Income Basic Net Income Per Unit Q3 2019 Q4 2019 Q1 2020 Q2 2020 $1.40 40.0 ($/Unit-basic) Adjusted EBITDA $1.14 $1.00 $1.72 $2.43 $1.20 35.0 Amortization 0.22 0.22 0.23 0.26 30.0 Lease payments -0.14 -0.15 -0.17 -0.20 $1.00 25.0 Financial expenses 0.08 0.07 0.09 0.11 $0.80 Exceptional items 0.0
Slide 9: Distributable Cash Flow (DCF)
Distributable Cash Flow (DCF) DCF Per Unit ($/Unit-fully diluted) Q3 2019 Q4 2019 Q1 2020 Q2 2020 $1.70 Adjusted EBITDA $1.08 $0.96 $1.65 $2.34 $1.50 Interest 0.05 0.04 0.05 0.06 $1.30 Mtce. Capital 0.03 0.05 0.03 0.02 $1.10 $0.90 Taxes 0.27 0.23 0.52 0.67 $0.70 DCF $0.73 $0.64 $1.04 $1.58 $0.50 Dis
Slide 10: Board of Trustees/Directors
Board of Trustees/Directors Trustee/Director Active Background High level of Financial Risk Oversight expertise, Since Literacy, 4 4 Relevent Donald Wright 2004 President and CEO of Winnington Capital Group CEO/President experience, 3 Chair Inc. Mr. Wright was Deputy Chairman of TD Extensive knowled
Slide 11: Richards
Richards 10
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