Divestco — Shareholder Meeting (May 2009)
21 slides from Divestco's shareholder meeting presentation, May 14, 2009
Slide 1: 2009 Divestco Annual General & Special Meeting
2009 DIVESTCO ANNUAL GENERAL & SPECIAL MEETING >> EXPLORE FORWARD Presented by Stephen Popadynetz and Roderick Chisholm May 14, 2009
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: 41,960,000 Insider Ownership: ~28% Employees: 350 52 Week High/Low: $2.84/0.16 Current Share Price: $0.60 Current Market Cap: $25,159,000 Enterprise Value(1): $66,364,000 (1) Market Capitalization + Funded Debt - Cash Integrated Solutions
Slide 4: Board of Directors
Board of Directors John Brussa - Chairman(2) Wade Brillon - Director Brent Gough - Director (1,2,3) M. Scott Ratushny - Director (1,3) Edward L. Molnar - Director (1,2) Stephen Popadynetz - Director & CEO (1) Member of Audit Committee (2) Member of Compensation Committee (3) Member of Corporate Gove
Slide 5: Officers
Officers Stephen Popadynetz - Chief Executive Officer Roderick Chisholm - Chief Financial Officer Steve Sinclair-Smith - Chief Operating Officer Lonn Hornsby - SVP Operations, Divestco LP Danny Chiarastella - VP Finance Mathew Hepton - VP Software Oliver Kuhn - VP Processing Peter Zyla - VP Strategy
Slide 6: 2008 Revenue Breakdown
2008 Revenue Breakdown 61% 56% 70 60 50 Millions ($) 40 2007 30 21% 24% 2008 20 11% 12% 7% 8% 10 0 Softw are Consulting Services Data Integrated Solutions for the Oil & Gas Industry 6/2/2009 6
Slide 7: 2008 and Q1 2009 Operational Highlights
2008 and Q1 2009 Operational Highlights Divested of non-core business lines DVT USA, Archiving and Technical Records Strengthened the balance sheet and reduced working capital deficit by reducing funded debt from $58.8MM (Q2 08) to $41.7MM (Q1 09) a $17.1MM reduction Continued to “right-size” overal
Slide 8: 2009 Initiatives & Outlook
2009 Initiatives & Outlook Continue to strengthen balance sheet with aggressive debt reduction strategy, achieve optimal capital structure and pursue less expansive seismic field acquisition strategy Focus on only essential capital spending Pursue improved efficiencies and continue focus on austerit
Slide 9: Divestco Seismic Data Set
Divestco Seismic Data Set >104,000 km of 2D Data >17,000 Square km of 3D Data Integrated Solutions for the Oil & Gas Industry 6/2/2009 9
Slide 10: Data Areas of Interest Update
Data Areas of Interest UPDATE Montney Basin Horn River Basin >27,800 km of 2D Data Integrated Solutions for the Oil & Gas Industry >4,680 km of 2D Data6/2/2009 10 >15,300 Square km of 3D Data >1,650 Square km of 3D Data
Slide 11: 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 6/2/2009 11
Slide 12: Cutbank Ridge Land Expiries in 2009
Cutbank Ridge Land Expiries in 2009 Integrated Solutions for the Oil & Gas Industry 6/2/2009 12
Slide 13: Opportunities 2009 - 2010
Opportunities 2009 - 2010 Low cost software provider (our clients are taking a second look) Trade data sales should increase at the beginning of a recovery Slowdown has given Divestco the time to understand where its products are and address possible unauthorized uses Growth takes a backseat to effi
Slide 14: Financial Review
Financial Review 2007 Results 2008 Results % Change Revenue $116.1M $103.0M (11)% EBITDA $61.7M $51.4M (17)% Net Income $17.5M $(9.3)M N/A Funds from $0.91/share $1.13/share 24% Operations(1) EPS(1) $0.45/share $(0.22)/share N/A (1) Basic weighted average shares outstanding 2008 Adjusted Net Income
Slide 15: Financial Highlights by Year
Financial Highlights by Year 120 100 Revenue 80 EBITDA 60 $ Millions D Column 3-3 40 Net Income 20 2008 Adjusted Net Income $7.1MM 0 (20) 2002 2003 2004 2005 2006 2007 2008 Integrated Solutions for the Oil & Gas Industry 6/2/2009 15
Slide 16: Financial Highlights by Quarter
Financial Highlights by Quarter 35 30 25 Revenue 20 15 EBITDA $ Millions 10 5 Net Income 0 (5) 2008 Q4 Adjusted (10) Net Income $6.1MM (15) Q1 Q2 Q3 Q4 Q1 Integrated Solutions for the Oil & Gas Industry 6/2/2009 16
Slide 17: Balance Sheet Review
Balance Sheet Review 2007 2008 Q1 2009 Working Capital(1) $(28.1)M $(9.8)MM $(18.1)M Funded Debt $51.8M $48.1M $41.7M Long Term Debt $38.4M $33.5M $26.3M Obligations Funded Debt/Equity 0.44X 0.43X 0.37X Debt/Equity 0.98X 0.88X 0.87X (1) Net of Deferred Revenue Integrated Solutions for the Oil & Gas
Slide 18: Relative Performance
Relative Performance Total Returns May. 8, 2008 - May 7, 2009 20% 0% -20% Return -40% -32% -39% -60% -80% -80% -100% 9-May-08 7-Aug-08 5-Nov-08 3-Feb-09 4-May-09 DVT S&P/TSX Composite Index S&P/TSX Energy Index Provided by National Bank Financial Integrated Solutions for the Oil & Gas Industry 6/2/2
Slide 19: Historical Performance
Historical Performance Integrated Solutions for the Oil & Gas Industry 6/2/2009 19
Slide 20: 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 6/2/2009 20
Slide 21: Integrated Solutions for the Oil & Gas Industry
Integrated Solutions for the Oil & Gas Industry 6/2/2009 21