Concrete Pumping Holdings, Inc. · NASDAQ:BBCP
Concrete Pumping — Q3 2019 Earnings Presentation
36 slides from Concrete Pumping's earnings presentation, Sep 16, 2019
Slide 1: Concrete Pumping Holdings (NASDAQ: BBCP)
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Slide 2: Disclaimer
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Slide 3: Who We Are
ConcnirE Who We Are r + We are the largest U.S. & U.K. concrete pumping service provider with a high-growth concrete waste management service * We area specialty service provider + Experienced professionals operate a fleet of highly technical equipment + Our clients are construction companies; we in
Slide 4: Business Overview
ee . . PUMPING Business Overview ies Concrete Pumping Our Equipment ‘rack Mounted Boom Pumps soa cone aes with 1396 market share (Brundage-Bone + Capital) & UK. with 3436 market share (Camfaud) + Optimizes utilization through broad geographic footprint & a comprehensive suite of equipment BEMEMIEE —
Slide 5: Why Invest in CPH?
Why Invest in CPH? Largest player in a growing industry (13% U.S. share, 34% in the U.K.) + Scale provides competitive advantagesin serving customers, purchasing & fleet utilization + Pumpingcontinues to gain share from traditional methods Strong financial profile & unit economics + Attractive EBITD
Slide 6: Industry-Leading Team Highly Aligned with Shareholders
Industry-Leading Team Highly Aligned with Shareholders * Company employees own 12%! y, - BRUCE YOUNG - Chief Executive Officer * CEO since 2008, CEO of Eco-Pan since 1999 * Senior VP of Operations, Brundage-Bone: 2001-2008 * 39 years ofindustry experience * CEO with 39-year industry tenure owns 3% *
Slide 7: Well-Positioned to Continue Momentum into Fiscal 2020
Well-Positioned to Continue Momentum into Fiscal 2020 (Benson) aa (eemsen) = eeoanorie os) Te 4 . “4 fa fa = NASDAQ: BBCP| 7
Slide 8: Q3 2019 Financial Performance
Q3 2019 Financial Performance A Transformative Quarter in the Evolution of the Company 199 6008» $056 3.18 = 29% revenue growthin U.S. driven by: = Inclusion of Capital for ~2.5 months * Broad end-market strength, organic growthin most markets, * U.K. impacted by adverse foreign currency ‘movement —
Slide 9: Updated FY2019 Financial Outlook, Preliminary FY2020 Outlook
Updated FY2019 Financial Outlook, Preliminary FY2020 Outlook Updated FY2019 Preliminary FY2020 Outlook Outlook (Sin milion) Reported Proforma Fy2020 Low/Mid Single- Digit 12 « F Revenue’ $284 $311 % Organic Growth - YOY Growth 17% 28% A Low/Mid Single- Digit 1a « cs Adj. EBITDA? ‘$95, $108 % Organic
Slide 10: Why Clients Choose CPH
Why Clients Choose CPH OLDINGS Concrete Placement is Highly Critical & Time Sensitive Technical = 30+ years of successful operating history Expertise = Experienced and knowledgeable operators Need for Faster, Safer & her Quality Service Advantages of concrete pumping REE = More pumps and skilled ope
Slide 11: Unrivaled Geographic Footprint in Two Countries
Unrivaled Geographic Footprint in Two Countries #1 Player in Each Region Served for All Business Segments US. Concrete UX. Concrete Corporate Pumping Pumping Headquarters e e e * Legend of Locations: “30 “30 v of Equipment Units: “730 360 e capamecncainnakFunicoFanetenin Bak cprainG3F1208 Lee ety 20
Slide 12: Industry Leader in a Growing Sector
Industry Leader in a Growing Sector oupnits ~7x Larger Than Nearest Competitor in U.S., ~10x in U.K. U.K. Concrete Pumping Industry Market Share* U.S. Concrete Pumping Industry Market Share! (06 of Concrete Pumping Spend) Next Top 2.20 a I i ~$1.75B Industry size All Others ‘anagenet estates (6 of C
Slide 13: Diversified Revenue Exposure Creates Resilience
Diversified Revenue Exposure Creates Resilience Geographic Diversity! US. Regional Exposure? 2US «UK — =West = Central = Southeast ‘= Mountain Global End Market Exposure? Service Offering’ = Commercial = Residential «Infrastructure Concrete Pumping = Eco-Pan Commentary * BBCP tied to highly attracti
Slide 14: Business Conditions Favorable in Nearly All Markets
a CONCRETE Business Conditions Favorable in Nearly All Markets OLD U.S. Concrete Production* Strong U.S. Construction Spending Across End-Markets? nitrogen aren Pubicconstruction private Construction _—Resiential Construction ae (Non Residential) (Won Residential) Pes cnr | 5 ssn sa base S53 8 396 $
Slide 15: Concrete Pumping Growing and Gaining Share
Concrete Pumping Growing and Gaining Share Concrete Pumping Gaining Share (rofttol us conrete plocement tht pomped) 30% 20% 2000 2018 Pumping Market Expected to See ‘Strong Pricing & Volume Growth a THs $238 ~$1.758 2017 2021 Why is it Taking Share? Speed & Efficiency Access/Precision of Placement S
Slide 16: Advantages of Our Scale
Advantages of Our Scale Purchasing benefits for fuel, OEM capex purchases & parts Breadth of services to service large, more complex jobs Trained operators with a leadingtrack record of safety Fleet availability to match customer demand & requirements Higher utilization leads to higher revenue per e
Slide 17: Strong Unit Economics
TE PUMPING Strong Unit Economics We generate excellent returns on our capital expenditures Concrete Pumping Unit Economics Eco-Pan Unit Economics NASDAQ: BBCP] 17
Slide 18: Disciplined Approach to Fleet Management
Disciplined Approach to Fleet Management = We own our entire fleet (no leasing) = Employ qualified mechanics to ensure fleet is well maintained « Leverage scale and fleet mobility to achieve target utilization level of 85% * Scale allows us to purchase equipment and parts directly from suppliers to
Slide 19: Disruptive Eco-Pan Waste Management Solution
Disruptive Eco-Pan Waste Management Solution OLDINGE Differentiated Service Offering Expanding Towards a National Footprint Eco-Pan U.S. Market Opportunity Washout Method Alternatives 860m Tol US Maret Oppeinty Key Factors for Increased Penetration of Eco-Pan How We Execute ¥ Leverage our concrete p
Slide 20: Eco-Pan is Regaining Momentum
Eco-Pan is Regaining Momentum = Eco-Pan temporarily “plateaued” in the first half of 2019 + Washington, Colorado & Southern California are the 3 largest markets, all of which got hit with bad weather = Fiscal Q3 saw a return to growth due to: + Normalized weather in the top 3 markets by summer * Str
Slide 21: Proven M&A Platform
Proven M&A Platform The Recent Capital Transaction Has Been Transformative * Acquirer of Choice: Completed 45+ acquisitions since 1983 (avg. pre-synergy Adjusted EBITDA multiples <4.5x) * Benefits of Scale: Track record of increasing Adjusted EBITDA margins of target within first few years through u
Slide 22: Near-Term Priorities
Near-Term Priorities = Drive organic EBITDA growth & free cash flow generation * Continue Capital integration & capture remaining synergies * Expand Eco-Pan further across the concrete pumping footprint + Remain highly disciplined in cost management intain stable investment in equipment in fiscal 20
Slide 23: Key Valuation Information
Key Valuation Information Trading Date © (9/13/13) Stock Price $4.16 $3.20/$15.25 52 WEEKLOW/HIGH 150,036 AVG. DAILY VOL. (3 MO.) 56.9M FULLY DILUTED IN-THE-MONEY ‘SHARES AND EQUIVALENTS 32M+ FREELY TRADEABLE PUBLIC SHARES CCopitl Structure Enterprise Value? $672M $237M EQUITY VALUE? $435M NET DEBT
Slide 24: Attractive Financial Profile & Valuation Versus Peers
Attractive Financial Profile & Valuation Versus Peers EV/ FY 2019 Adjusted EBITDA EV/ (FY 2019 Adjusted EBITDA - Total Discount vs. Speciaty Rental Peers (%) Discount vs. Specaty RenSRN 3) (36%) (30%) a Discount vs. Specialty Waste Pers (%): Discount vs. Specaty Waste Peers (%): a 68%) ~(07%) 13% 13
Slide 25: Appendix
CONCRETE PUMPING HOLDINGS Appendix
Slide 26: Company Evolution
Company Evolution OLDINGS Over the past 35 years, CPH has established a market-leading position and developed strong platform for continued robust growth 129903 Gpansion 200044 Focuson To1traecanes pbs 1903.04: Founded 0s: Frstcneete ws | 2otéan oars in Denver, pumping company to ‘eur ‘management an
Slide 27: Select Projects
Coneci ry PUMPING Select Projects Colorado Rockies Experience (Denver, CO) TE WijgeeerreT a 1 Sq 1 Crossrail Liverpool Py Street Station | (London, UK) .) Amazon Block 20 (Seattle, WA) NASDAQ: BBCP] 27
Slide 28: Quarterly Financial Performance
Quarterly Financial Performance Significant Increase in Cash Flow with Capital Pumping Acquisition [Revenue Adjusted EBITDA’ alll all 1 = _ = ai 2 | : | iP i | ul: a | ; BE 2: cies BEG L L a 3 a a sal 92017 2018 92019 wm2017 2018 2019 NASDAQ: BBCP] 28
Slide 29: Business Seasonality
Business Seasonality OLDINGS * ~55% of revenue is in the second half of the fiscal year, Percent of Revenue by May through October (Quarter, + Less concrete is placed in the colder and wetter winter months, leadingto greater business activity in the second half of the fiscal year + While CPH isa hig
Slide 30: Revenue Growth by Segment
ee Revenue Growth by Segment woLDnNGs Strong Historical Revenue Growth nna U.S. Pumping U.K. Pumping mE co-Pan. ~$284 $1103 sos aud $1535 $1512 gos Fr2012 Fr2013, Fr2018 F015 F016 Fr2017 Fr2018 Fr2019¢ NASDAQ: BBCP] 30,
Slide 31: Reconciliation of CPH Net Income to Adj. EBITDA
Reconciliation of CPH Net Income to Adj. EBITDA OLD Years Ended October 31, (S in thousands) 2016 2017 2018 Statement of operations information: Netincome 6.234 913 23382 Interest expense, net 19516 2188 21405 Incometax (benef) expense 4.454 3757 (a7e4 Depreciation and amortization 22310 21154 25,62
Slide 32: Quarterly Net Income to Adjusted EBITDA Reconciliation
S&P ($n thousands) Predecessor ‘Successor Combined Successor November 41,2018 Docombers, through me December through 5. uly 38, (ola in hovsnae) 12017 022017 032017, _a47017_ a1 2018 22018 32018 a42018 _2018 2019" _at2019_ 2.2019 _a3 2019 Consolidated Niet income (oss) (625) 25563523730 7SSB G1 25—1
Slide 33: Shares & Other Equivalents Outstanding
Shares & Other Equivalents Outstanding Shares Underying ccomvertble Securitas Outstanding Stores or Subject to Vesting Fully Dated Faty Omtes Sharesty Type Puoueshares w2115514 w2115514 sem55i4 Non Execute Decors 190037 90037 190037 Neen! 2450980 2480900 2450900 Freely Tradeabe Public Shares 3230555
Slide 34: Credit Facilities Summary
Credit Facilities Summary OLDINGS ‘$407 million Term Loan Facility! $60 milion ABL Revolver Interest Term Loan Facility: Libor + 600bp= Rate [ABL Revolver: Libor + 175-22Sbps based on leverage levels. Term Loan Facility: 7 Years (December 6th, 2025) [ABL Revolver: S Years (December 6th, 2023) Term L
Slide 35: Zero-Dividend Convertible Perpetual Preferred Stock Summary
Zero-Dividend Convertible Perpetual Preferred Stock Summary Perpetual Zero Offering 2,480,980 shares at $10.20 per share ‘The holder of the Preferred Stock may elect to convert its Preferred Stock into shares of Common Stock ata 1:1 ratio at any time CEPRCMCEL TMM six months after the Closing Date.
Slide 36: Investor Relations
CONCRETE PUMPING HOLDINGS Investor Relations
Concrete Pumping Holdings — Q3 2019 Earnings Presentation on 6ix