Bri-chem Corp. · TSX:BRY
Bri-chem — Investor Presentation (June 2023)
17 slides from Bri-chem's investor presentation, June 2023
Slide 1: North American Oilfield Chemical Distribution, Blending and Repackaging
North American Oilfield Chemical Distribution, Blending and Repackaging Company 2023 Investor Overview Presentation TSX:BRY June 2023
Slide 2: Disclaimer
Disclaimer Certain statements contained in this presentation constitute forward-looking information or forward-looking statements (collectively, “forward-looking statements”). These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “be
Slide 3: History
History • Founded in 1985 • Originally Alberta, Canada based only • Listed on the Toronto Stock Exchange in January 2007 • Grew significantly through organic geographic growth and through six strategic acquisitions making Bri-Chem the largest independent wholesale distributor of oilfield chemicals i
Slide 4: Business Summary
Business Summary The Bri-Chem strategic Essential to drilling and well North American advantage completion supply chains customer base 25 Warehouses Drilling Fluid Service Co’s Operating 24/7 365 days per 5 Blending/Packaging Facilities year Well Service Companies We provide national infrastructure
Slide 5: Geographical Segment Summary
Geographical Segment Summary CDN Fluids Distribution United States CDN Blending and Packaging - 30 employees generating $80.0M TTM in Revenue - 14 warehouse locations USA Fluids Distribution - 1 bulk transloading rail facility - 1 oilfield cement blending facility USA Blending and Packaging - 1 inve
Slide 6: Where We Operate In North America
Where We Operate In North America Footprint covers all major North American resource plays 25 distribution and blending facilities Low operating costs through syndications (12 third party owned and operated warehouses) Customers pay for all transportation costs to and from rig sites Strategic relati
Slide 7: Company Snapshot
Company Snapshot Capitalization as of June 16, 2023 Exchange Toronto Stock Exchange Shares Outstanding 26.4M Retail Share Price $0.40 Ma nagement, Directors and Insiders 52 Week High/Low $0.89/$0.38 Institutional Market Capitalization $10.6M Enterprise Value (1) $32.0M 13% Balance Sheet Summary as a
Slide 8: 2022 Annual Financial Results
2022 Annual Financial Results Twelve months ended December 31 Change (in '000s except per share amounts) 2022 2021 $ % Financial performance Sales $ 104,513 $ 60,405 $ 44,109 73% Adjusted EBITDA (1) 7,372 3,942 3,431 87% As a % of revenue 7% 7% Adjusted operating earnings (1) 7,824 2,862 4,962 173%
Slide 9: 2023 Q1 Financial Results
2023 Q1 Financial Results Three months ended March 31 Change (in '000s except per share amounts) 2023 2022 $ % Financial performance Sales $ 27,201 $ 23,536 $ 3,665 16% Adjusted EBITDA (1) 1,615 2,442 (826) (34%) As a % of revenue 6% 10% Operating earnings 1,296 3,045 (1,749) (57%) Adjusted net earn
Slide 10: Growth Initiatives
Growth Initiatives United States Further warehouse expansion into the West Permian Additional tank farm facilities for the storage of bulk product Additional dry blending capacities to support well service companies Additional invert facility to anchor sales in new territories Canada Rail location a
Slide 11: Stabilizing Rig Activity
Stabilizing Rig Activity Average Rig Count Canada 250 200 150 100 CAOEC forecasts 6409 wells drilled 50 in Western Canada for 2023 0 (+14% YoY) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Rig counts 2023 2022 have stabilized but O&G Average Rig Count USA prices remain 800 Spears and volatile 700
Slide 12: Company Transformation Not Reflected in Valuation
Company Transformation Not Reflected in Valuation Higher-Margin Markets Key to Long-Term Value Creation 2019 2022 Change Revenue Growth $92M $105M +14% Increasing EBITDA $2.9M Adjusted (1) $7.5M Adjusted (1) +159% EBITDA EBITDA Restructured Long-term Debt 11.5% 5.8% -5.7% Interest rate % Minimal Dil
Slide 13: Why Invest in Bri-Chem Corp.
Why Invest in Bri-Chem Corp. • Meaningful growth tied to the current and future energy transformation • Significant presence in all North American energy markets • Extraordinary Revenue per employee $105M/66 = $1.6M • Demonstrated ability to adapt in all market conditions • Increased its Asset Based
Slide 14: Thank you
TSX:BRY June 2023 Contact information Bri-Chem Corp. 27075 Acheson Road Acheson, AB Canada T7X 6B1 D: 780.571.8587 P: 780.962.9490 Thank you Website: www.brichem.com
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures Bri-Chem uses certain measures in this presentation which do not have any standardized meaning as prescribed by International Financial Reporting Standards (“IFRS”). These measures, which are derived from information reported in the Company’s financial statements, may not
Slide 16: Adjusted Net Earnings and Adjusted EBITDA
Adjusted Net Earnings and Adjusted EBITDA The following tables provides a reconciliation of net earnings under IFRS, as disclosed in the annual consolidated financial statements and Q1 consolidated financial statements, to Adjusted Net Earnings and Adjusted EBITDA: Three months ended Twelve months e
Slide 17: Products
Products Top 10 Products Sold by Quantity 250,000 ~ a” Z 224,605 156,878 107,735 63,643 61,884 61,824 61,164 2S SF SS se gs SS s & * rs rs s ~ a es ee a? SS & & e s st = € os s & & & ef o> s s