Vertex Resource Group Ltd. · TSXV:VTX
Vertex Resource — Investor Presentation (September 2023)
15 slides from Vertex Resource's investor presentation, September 2023
Slide 1: Investor Presentation: 2023
VERSATILITY. EXPERTISE. R E S O U R C E G R O U P L T D . INVESTOR PRESENTATION: 2023 vertex.ca TSX: VTX
Slide 2: Disclaimer & Notice to Reader
DISCLAIMER & NOTICE TO READER This presentation is for discussion purposes only. The contents are not to be reproduced, summarized, or distributed. These materials have been prepared for information purposes only concerning Vertex and are not, under any circumstances, to be construed as an offering
Slide 3: Corporate Profile
CORPORATE PROFILE DK MARKET SUMMARY CURRENT STOCK PRICE (TSX:VTX) $0.44 (Sept 18, 2023) BACKLOG $272.9 Million COMMON SHARES OUTSTANDING 115.6 Million MARKET CAPITALIZATION $51.8 Million STOCK OPTIONS ($0.55) 2.2 Million DEBT $91.7 Million FULLY DILUTED SHARES 117.8 Million CONVERTIBLE DEBENTURES $1
Slide 4: Financials
FINANCIALS FINANCIAL SUMMARY Year ending D ecem b e r 31( C $ 0 0 0 ’ s) 2021 2022 2023 (6 MONTHS) REVENUE 159,438 218,378 119,111 COST OF SALES 117,150 166,127 87,104 GROSS PROFIT 42,288 52,251 32,007 GROSS MARGIN 27% 24% 27% SG&A 16,052 20,266 12,436 OTHER1 (640) - - ADJUSTED EBITDA 26,236 32,185
Slide 5: Strategy
STRATEGY Substantial Growth Opportunity Accelerated Growth potential Platform Structure Provides ESG & Sustainability Unique Service Combination for Environmental Services/ESG growing ESG needs of Cost Reduction & Project leadership (Equipment & Personnel) Solution platform on existing core critical
Slide 6: Planned Debt Reduction
PLANNED DEBT REDUCTION OVERVIEW NET DEBT OVERVIEW 1 • Planned debt reduction from 2022 of $23.2M (29.3%) by 2024 from cashflow. • Extended the maturity of our credit facilities to May 2025. • Vertex is targeting 2.0x debt to bank EBITDA. • Vertex is returning capital to shareholders through a $102.4
Slide 7: 2023 Q2 Results
2023 Q2 RESULTS HIGHLIGHTS Three Months ended June 30, Six Months ended June 30, 2022 2023 %CHANGE 2022 2023 %CHANGE NET REVENUE 53,969 62,303 15% 99,398 119,111 20% PROFIT MARGIN 13,223 17,401 32% 23,680 32,007 35% ADJUSTED EBITDA (1) 8,557 10,956 28% 14,217 19,571 38% FREE CASH FLOW (1) 4,576 4,36
Slide 8: Customer Breakdown
CUSTOMER BREAKDOWN MINING & AGRICULTURE & ENERGY UTILITIES INDUSTRIAL GOVERNMENT FORESTRY 58.7% 26.5% 11.2% 1.8% 1.8% • Oil and Natural Gas • Electrical Transmission & • Chemical Processing • Federal Agencies • Forestry and Agricultural Exploration & Production Distribution • Manufacturing • State a
Slide 9: Expanding Business
EXPANDING BUSINESS • Strategic acquisitions alongside Vertex’s versatility and expertise have contributed to Vertex increasing its customer base and gaining a larger market share. • Organic growth foreseen in Canada due to geographic and service expansion. • Continued investments in clean energy tra
Slide 10: Vertex's ESG Business Model
VERTEX’S ESG BUSINESS MODEL Vertex’s business model, solutions, Our Suite of Services are Built to and strategy has always been built Support: on: Enhanced Environmental Stewardship Sustainable Development Local Community Involvement - Including First Nations Clean Energy Solutions Health & Safety o
Slide 11: Dual-Phase ESG Approach
DUAL-PHASE ESG APPROACH Vertex offers ESG solutions to clients, grounded in our strong belief in their value. We see ourselves as ESG problem-solving leaders and view sustainable supply chain growth as key to a brighter future. Our dual-phase ESG approach involves self- improvement and fostering sus
Slide 12: Our Progress: 2022 ESG Results
OUR PROGRESS: 2022 ESG RESULTS SUPPLY CHAIN INTERNAL GOALS GOALS Our goal was to quantify supply chain ESG benefits for each Our focus was on reducing Scope 1 emissions from our vehicle customer using our robust data management system (DMS). We fleet. We aimed to understand our emission portfolio an
Slide 13: Looking Forward: 2024 ESG Goals & Commitments
LOOKING FORWARD: 2024 ESG GOALS & COMMITMENTS ENVIRONMENTAL SOCIAL HEALTH & SAFETY GOVERNANCE EXPANDING SUPPLY CHAIN SOLUTIONS EXPAND ESG SOLUTIONS POSITIVE INDIGENOUS SAFE DRIVING STAKEHOLDER ENGAGEMENT 10% Achieve 10% annual supply chain service 25% AGR revenue growth, offering enhanced ESG Increa
Slide 14: Why Invest
WHY INVEST • The company is returning value to its shareholders via the NCIB program by purchasing 5% of outstanding shares annually. • The company is continuing strict debt reduction as part of its financial strategy. • Vertex is uniquely positioned to benefit from the global shift towards green en
Slide 15: Contact Information
HEADQUARTERS #161, 2055 Premier Way Sherwood Park, AB T8H 0G2 (780) 464-3295 CONTACT www.vertex.ca INFORMATION Terry A. Stephenson President and Chief Executive Officer tstephenson@vertex.ca Sherry Bielopotocky Chief Financial Officer sbielopotocky@vertex.ca VERSATILITY. EXPERTISE.
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