Divestco — Investor Presentation (March 2006)
23 slides from Divestco's investor presentation, March 2006
Slide 1: Divestco Inc. Investor Relations Presentation: March 2006
Divestco Inc. Investor Relations Presentation: March 2006 Calgary, Denver, Houston, Vancouver, Edmonton www.divestco.com TSX-V: DVT
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements, including statements regarding the business and anticipated financial performance of Divestco Inc. “(the Company”). These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause t
Slide 3: Investment Highlights
Investment Highlights • Attractive valuation compared to peers • Demonstrated growth profile • Numerous growth initiatives • Strong customer base • Solid recurring revenue base • Significant insider ownership www.divestco.com TSX-V: DVT 3
Slide 4: Officers & Directors
Officers & Directors Stephen Popadynetz - CEO & Director Roderick Chisholm - Chief Financial Officer Terry Barnhart - President John Brussa - Chairman (1)(2) Wade Brillon - Director M. Scott Ratushny - Director(1)(3) Edward L. Molnar - Director(2) Brent Gough - Director(1)(2)(3) 1) Member of Audit C
Slide 5: Company Snapshot
Company Snapshot •Stock Symbol : DVT (TSX-V) •Shares Outstanding1: 31,000,000 •Insider Ownership: 35% •Employees: 320 •52 Week High/Low: $4.40/1.07 •Current Share Price: $4.30 •Current Market Cap1: $127,000,000 •Enterprise Value1,2: $136,000,000 1) Basic 2) Market Capitalization + Funded Debt - Cash
Slide 6: Competitive Advantage
Competitive Advantage •Geological & Geophysical Software •Data •Technical Services •Seismic Brokerage •Consulting Services (New) Divestco is an aggressive acquisition minded company that offers superior software, services and data to the oil and gas industry. By implementing a strategy of integratio
Slide 7: Integrated Software
Integrated Software www.divestco.com TSX-V: DVT 7
Slide 8: Sample Customer Profile
Sample Customer Profile www.divestco.com TSX-V: DVT 8
Slide 9: Financial Highlights By Year
Financial Highlights By Year 80 70 Revenue 60 EBITDA 50 $ Millions Funds from 40 Operations Net Income 30 20 10 0 2002 2003 2004 2005F 2006F www.divestco.com TSX-V: DVT 9
Slide 10: Sources of Revenue
Sources of Revenue F’04 YTD Q3 F’05 $26MM $26MM 9% 14% 20% 28% 14% 19% 39% 57% Services Data Software Brokerage www.divestco.com TSX-V: DVT 10
Slide 11: Financial Highlights by Quarter
Financial Highlights by Quarter 12 Revenue 10 8 EBITDA $ Millions 6 Funds from Operations 4 Net Income 2 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FQ4 2003 2004 2005 www.divestco.com TSX-V: DVT 11
Slide 12: Growth Through Acquisition: Petro Data Source
Growth Through Acquisition Acquired Petro Data Source, Inc. (PDS) on April 27, 2005 • Adds well header and production data for more than 4.3 million wells located in most of the producing states in the U.S., including federal waters of the Gulf of Mexico and offshore California and Alaska • Divestco
Slide 13: Growth Through Acquisition: Drilling Records
Growth Through Acquisition Acquired Drilling Records on September 2, 2005 • Adds a unique drilling data set compiled since 1958 in Canada and 1975 in the U.S. Numerous integration opportunities with Divestco’s suite of software products and PDS’ well and production database: Drilling Studies – Pro
Slide 14: Growth Through Acquisition: Focus Integrated Solutions
Growth Through Acquisition Acquired Focus Integrated Solutions on October 5, 2005 • Complements existing DVT consulting services and adds a separate revenue vertical. • Key services added to the Divestco fold: Business Consulting Enterprise Resource Planning (ERP) Customer Relationship Management
Slide 15: Growth Through Acquisition: Laser Software
Growth Through Acquisition Announced acquisition of Laser Software Limited on October 31, 2005 • Adds a well-known and well-respected land administration software product to Divestco’s suite of products called LandRiteTM • Adds an Accounting Services Bureau, ideal for start-up oil and gas companies.
Slide 16: Divestco Seismic Database
Divestco Seismic Database www.divestco.com TSX-V: DVT 16
Slide 17: Seismic Data Growth: 2004
Seismic Data Growth: 2004 $ 9.0M Total Seismic Acquired Kelly Lakes 3D 269 Square Km’s www.divestco.com TSX-V: DVT 17
Slide 18: Seismic Data Growth: 2005
Seismic Data Growth: 2005 $ 64.0M Total Seismic Acquired Halfmoon 3D 700 Square Km’s Graham Creek 3D 215 Square Km’s Wasp 3D 236 Square Km’s Windsor Creek 3D 360 Square Km’s Red Willow 3D 128 Square Km’s www.divestco.com TSX-V: DVT 18
Slide 19: Seismic Data Growth: 2006
Seismic Data Growth: 2006 $ 69.0M In Seismic to be Acquired Upper Cutbank 3D Tremblay 3D 312 Square Km’s 360 Square Km’s Kamisak Lake 3D 120 Square Km’s Lockhorn 3D 410 Square Km’s Red Willow East 3D 215 Square Km’s Calahoo Lake 3D Red Willow North 3D 113 Square Km’s 102 Square Km’s www.divestco.com
Slide 20: Seismic Data Growth
Seismic Data Growth Upon completion of our 2005/2006 seismic programs, we will have: • >52,000 Km’s of 2D Data • >5,700 Square Km’s of 3D Data • >$190MM in shot and purchased seismic since 2003 • 2nd only to EnCana in amount of seismic acquired www.divestco.com TSX-V: DVT 20
Slide 21: Share Price Performance
Share Price Performance $5.00 1,000,000 $4.00 800,000 Trading Volume $3.00 600,000 Share Price $2.00 400,000 $1.00 200,000 $0.00 0 29-Nov-04 27-Feb-05 28-May-05 26-Aug-05 24-Nov-05 22-Feb-06 www.divestco.com TSX-V: DVT 21 Provided by Blackmont Capital Inc.
Slide 22: Peer Comparison
Peer Comparison1 Enterprise P/E P / CF EV / EBITDA EV / Revenue Value (2) Ticker (C$MM) LTM 2006E (3) LTM 2006E (3) LTM 2006E (3) LTM 2006E (3) Computer Modelling Group Ltd. CMG.TO $ 49.10 17.6x N/A 15.5x N/A 8.2x N/A 3.0x N/A Kelman Technologies Inc. KTI.TO $ 22.30 NMF N/A 5.5x N/A 5.9x N/A 0.9x N/
Slide 23: Thank You for Your Interest
Thank You for Your Interest For further information, please contact: Stephen Popadynetz, CEO (403) 218-6466 stephen@divestco.com or Roderick Chisholm, CFO (403) 218-6450 rod.chisholm@divestco.com or investor.relations@divestco.com www.divestco.com TSX-V: DVT 23