Divestco — Shareholder Meeting (May 2010)
19 slides from Divestco's shareholder meeting presentation, May 13, 2010
Slide 1: From the Ground Up
2010 DIVESTCO ANNUAL GENERAL & SPECIAL MEETING From the Ground Up Presented by Stephen Popadynetz and Roderick Chisholm May 13, 2010
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation may contain forward-looking statements, including statements regarding the business and anticipated financial performance of Divestco Inc. (“Divestco” or the “Company”). These forward-looking statements involve known and unknown risks, uncertainties and o
Slide 3: Company Snapshot
Company Snapshot Stock Symbol : DVT (TSX) Shares Outstanding: 41,958,000 Insider Ownership: ~28% Employees: 280 52 Week High/Low: $1.18/0.35 Current Share Price: $0.85 Current Market Cap: $35,664,000 Enterprise Value(1): $64,057,000 (1) Market Capitalization + Funded Debt - Cash Integrated Solutions
Slide 4: Board of Directors
Board of Directors Stephen Popadynetz - Director & CEO Wade Brillon - Director Brent Gough - Director (1,2,3) Edward L. Molnar - Director (1,2) Bill Tobman – Director (1,3) (1) Member of Audit Committee (2) Member of Compensation Committee (3) Member of Corporate Governance Committee Integrated Solu
Slide 5: Officers
Officers Stephen Popadynetz - Chief Executive Officer Roderick Chisholm - Chief Financial Officer Steve Sinclair-Smith - Chief Operating Officer Lonn Hornsby - SVP Operations, Divestco LP Danny Chiarastella - VP Finance Mathew Hepton - VP Software Oliver Kuhn - VP Processing Peter Zyla - VP Strategy
Slide 6: 2009 Revenue Breakdown
2009 Revenue Breakdown 70 56% 55% 60 50 Millions ($) 40 2008 30 24% 22% 2009 20 12% 11% 8% 12% 10 0 Softw are Consulting Services Data Integrated Solutions for the Oil & Gas Industry 5/18/2010 6
Slide 7: 2009 and Q1 2010 Operational Highlights
2009 and Q1 2010 Operational Highlights Aggressively “right-sized” overall staffing levels and expenses in reaction to the credit crisis, recession and overall industry slow down reducing Operating Expenses from $51.6MM (YE 08) to $37.1MM (YE 09) a $14.5MM reduction Strengthened the balance sheet an
Slide 8: 2010 Initiatives & Outlook
2010 Initiatives & Outlook Aggressively close top line opportunities that were stalled in 2009 due to recession and achieve growth in 2010 and beyond Continued focus on operating expenses across all business and support lines Further strengthen balance sheet and achieve optimal capital structure Foc
Slide 9: Divestco Seismic Data Set
Divestco Seismic Data Set ~104,000 km of 2D Data Integrated Solutions for the Oil & Gas Industry 5/18/2010 9 ~16,500 Square km of 3D Data
Slide 10: Seismic Data - Cutbank Ridge
Seismic Data - Cutbank Ridge DIVESTCO CONTROLS THE LARGEST BC 3D DATA SET IN THE INDUSTRY CUTBANK RIDGE CONTINUES TO BE THE “SALES ENGINE” FOR DVT’S 3D SEISMIC Integrated Solutions for the Oil & Gas Industry 5/18/2010 10
Slide 11: Opportunities 2010 - 2011
Opportunities 2010 - 2011 Trade data sales should increase at the beginning of a recovery (we have witnessed renewed sales and interest in Q1/10) Consolidation in O&G industry leading to increased transfer fees (several new deals just announced) New APEGGA guidelines has reinforced the data usage pr
Slide 12: Financial Review
Financial Review 2008 Results 2009 Results % Change Revenue $103.0M $62.0M (40)% EBITDA $51.4M $24.9M (52)% Net Income $(9.3)M $(6.2)M N/A Funds from $1.13/share $0.57/share (49)% Operations(1) EPS(1) $(0.22)/share $(0.15)/share N/A (1) Basic weighted average shares outstanding Integrated Solutions
Slide 13: Balance Sheet Review
Balance Sheet Review 2007 2008 Q1 2009 Q1 2010 Working $(28.1) $(9.8)M $(18.1)MM $(7.7)M Capital(1) Funded Debt $51.8M $48.1M $41.7M $29.9M Long Term Debt 38.4M $33.5M $26.3M $23.7M Obligations Funded 0.44X 0.43X 0.37X 0.29X Debt/Equity Debt/Equity 0.98X 0.98X 0.87X 0.62X (1) Net of Deferred Revenue
Slide 14: Financial Highlights by Year
Financial Highlights by Year 120 100 Revenue 80 EBITDA 60 $ Millions 40 Net Income 20 0 (20) 2002 2003 2004 2005 2006 2007 2008 2009 Integrated Solutions for the Oil & Gas Industry 5/18/2010 14
Slide 15: Financial Highlights by Quarter
Financial Highlights by Quarter Q1 09 – Q1 10 20 15 Revenue 10 EBITDA $ Millions 5 0 Net Income (5) (10) Q1 Q2 Q3 Q4 Q1 Integrated Solutions for the Oil & Gas Industry 5/18/2010 15
Slide 16: Relative Performance
Relative Performance Total Returns May 11, 2009 - May 10, 2010 60% at 85 cents 120% 100% 87% 87% 80% 60% Return 40% 20% 18% 18% 7% 7% 0% -20% -40% 11-May-09 11-Aug-09 11-Nov-09 11-Feb-10 Provided by GMP Financial DVT S&P TSX S&P TSX Energy Index Integrated Solutions for the Oil & Gas Industry 5/18/2
Slide 17: Historical Performance
Historical Performance Integrated Solutions for the Oil & Gas Industry 5/18/2010 17
Slide 18: 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 Integrated Solutions for the Oil & Gas Industry 5/18/2010 18
Slide 19: Integrated Solutions for the Oil & Gas Industry
Integrated Solutions for the Oil & Gas Industry 5/18/2010 19