Concrete Pumping Holdings, Inc. · NASDAQ:BBCP
Concrete Pumping — Q1 2020 Earnings Presentation
36 slides from Concrete Pumping's earnings presentation, Mar 11, 2020
Slide 1: Investor Presentation | March 2020
NASDAQ: BBCP INVESTOR PRESENTATION | March 2020
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This investor presentation ("Investor Presentation") includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The actual results of Concrete Pumping Holdings Inc. (the "Comp
Slide 3: Who We Are
Who We Are • We are the largest U.S. & U.K. concrete pumping service provider with a high-growth concrete waste management service (Eco-Pan) • We are a specialty service provider • Experienced professionals operate a fleet of highly technical equipment • Our clients are construction companies; we in
Slide 4: Business Overview
Business Overview Concrete Pumping Our Equipment Truck-Mounted Boom Pumps Stationary Concrete Pumps • Largest concrete pumping service provider in the U.S. with 13% market share (Brundage-Bone + Capital) & U.K. with 34% market share (Camfaud) • Optimize utilization through broad geographic footprint
Slide 5: Why Invest in CPH?
Why Invest in CPH? ✓ Largest player in a growing industry (13% U.S. ✓ Eco-Pan is a “category killer” with strong secular share, 34% U.K. share) tailwinds • Scale provides competitive advantages in serving • Every concrete placement & concrete pumping job requires a customers, purchasing & fleet util
Slide 6: Industry-Leading Team Highly Aligned with Shareholders
Industry-Leading Team Highly Aligned with Shareholders • Company employees own 12%¹ • CEO with ~40-year industry tenure owns 3% BRUCE YOUNG - Chief Executive Officer ▪ CEO since 2008, CEO of Eco-Pan since 1999 • CPH backed by private equity firm ▪ Senior VP of Operations, Brundage-Bone: 2001 – 2008
Slide 7: Well-Positioned to Continue Momentum into Fiscal 2020
Well-Positioned to Continue Momentum into Fiscal 2020 Revenue Adjusted EBITDA4 ($ in millions) $315-$330 ($ in millions) ~$310 $283 EBITDA Margin (%) $243 $211 $172 ~$109 $110-$115 $95 $79 $60 $68 35% 32% 33% 34% 35% 35% FY2016 FY2017 FY2018 FY2019 FY2019PF¹ FY2020E² FY2016 FY2017 FY2018 FY2019 FY20
Slide 8: Q1 2020 Financial Performance
Q1 2020 Financial Performance Adjusted EBITDA Outpaces Revenue Growth Consolidated Revenue Consolidated Adjusted EBITDA1 ($ in millions) ($ in millions) $73.9 EBITDA Margin (%) $58.4 $23.8 $17.1 32.2% 29.4% Q1-19 Q1-20 Q1-19 Q1-20 Concrete Pumping Commentary U.S. Concrete Waste Management Commentary
Slide 9: Unchanged FY2020 Outlook
Unchanged FY2020 Outlook FY2020 Outlook FY 2020 Commentary ($ in millions) • Broad end market strength in U.S. concrete pumping expected to continue Revenue $315 - $330 • Eco-Pan very well positioned for growth given recent investment & current momentum - YOY Growth 11% - 17% • U.K. concrete pumping
Slide 10: Why Clients Choose CPH
Why Clients Choose CPH CPH Competitive Advantages Concrete Placement is Highly Critical & Time Sensitive Technical ◼ 30+ years of successful operating history Expertise ◼ Experienced and knowledgeable operators Need for Faster, Safer & Higher Quality Service Advantages of concrete pumping ◼ More pum
Slide 11: Unrivaled Geographic Footprint in Two Countries
Unrivaled Geographic Footprint in Two Countries #1 Player in Each Region Served for All Business Segments U.S. Concrete U.K. Concrete Corporate Eco-Pan Pumping Pumping Headquarters Legend: # of Locations: ~90 ~30 17 # of Equipment Units: ~760 ~365 78¹ U.S. Footprint U.K. Footprint Note: Thornton, CO
Slide 12: Industry Leader in a Growing Sector
Industry Leader in a Growing Sector ~7x Larger Than Nearest Competitor in U.S., ~10x in U.K. U.S. Concrete Pumping Industry Market Share1 U.K. Concrete Pumping Industry Market Share1 (% of Concrete (% of Concrete Pumping Spend) Pumping Spend) Next Top 2-20 19% 13% 34% ~$1.75B ~$140M Industry size In
Slide 13: Diversified Revenue Exposure Creates Resilience
Diversified Revenue Exposure Creates Resilience Geographic Diversity1 U.S. Regional Exposure2 Commentary US 16% 17% • Tied to highly attractive UK South geographies 36% West 11% Central • Non-residential Southeast construction is strong in all 16% Mountain our markets 84% 20% • South region (Texas)
Slide 14: Business Conditions Favorable in Nearly All Markets
Business Conditions Favorable in Nearly All Markets U.S. Concrete Production1 Strong U.S. Construction Spending Across End-Markets² (Millions of cubic yards) (Millions) Public Construction Private Construction Residential Construction 458 457 (Non-Residential) (Non-Residential) 432 415 $789 396 406
Slide 15: Concrete Pumping Growing and Gaining Share
Concrete Pumping Growing and Gaining Share Concrete Pumping Gaining Share Why is it Taking Share? Placement Method Share (% of total U.S. concrete % of U.S. Market placement that is pumped) 34% Speed & Efficiency 20% Tailgating 45% Access/Precision of Placement 2000 2018 Pumping Market Expected to S
Slide 16: Advantages of Our Scale
Advantages of Our Scale Purchasing benefits for fuel, OEM capex purchases & parts Breadth of services In our industry, we compete to service large, more complex jobs based upon level of customer service, fleet availability and Trained operators equipment breadth… with a leading track record of safet
Slide 17: Strong Unit Economics
Strong Unit Economics We generate excellent returns on our capital expenditures Concrete Pumping Unit Economics Eco-Pan Unit Economics ~25% ~54% Unlevered ROI Unlevered ROI ~4-5 Years ~20 Years ~1.9 Years ~20 Years vs. Useful Life of vs. Useful Life of Payback Period Payback Period Assets Assets NAS
Slide 18: Disciplined Approach to Fleet Management
Disciplined Approach to Fleet Management CPH Fleet Overview (Pump lengths in meters; avg. age and useful life in years) ▪ We own our entire fleet (no leasing) Expected Equipment Type Fleet Count Average Age Useful Life ▪ Employ qualified mechanics to ensure Up to 33m 251 9.1 20 fleet is well maintai
Slide 19: Disruptive Concrete Waste Management Solution
Disruptive Concrete Waste Management Solution Eco-Pan U.S. Market Opportunity Washout Method Alternatives $850m+ Large Market for Continued Penetration $30M FY19 Eco-Pan Revenue (Current Penetration of ~3%) Key Factors for Increased Penetration of Eco-Pan How We Execute ✓Leverage our concrete pumpin
Slide 20: U.S. Concrete Waste Management Regaining Momentum
U.S. Concrete Waste Management Regaining Momentum ▪ Fiscal Q1 saw continued growth due to: • Improvements in majority of markets • Higher utilization • New leadership • Price-per-pickup growing year-over-year • Pans in the field (leading indicator for future pickups) are at very robust levels • Up 2
Slide 21: Proven M&A Platform
Proven M&A Platform The Recent Capital Transaction Has Been Transformative Acquisitions Since 2015 ▪ Acquirer of Choice: Completed 45+ acquisitions since Purchase Est. Acquisition 1983 (avg. pre-synergy Adjusted EBITDA multiples <4.5x) Company Name Locations Price Adjusted EBITDA (millions) Multiple
Slide 22: Near-Term Priorities
Near-Term Priorities ▪ Drive organic EBITDA growth & free cash ▪ Pursue acquisitions opportunistically flow generation • We expect any near-term M&A would be • Capture remaining Capital synergies “tuck-ins” rather than “transformational” like Capital • Expand Eco-Pan further across the concrete pump
Slide 23: Key Valuation Information
Key Valuation Information Trading Data @ (3/10/20) Capital Structure Financial Overview Valuation Measures Stock Enterprise FY19 Pro Forma EV/FY19 Pro Forma Price Value2 Adj. EBITDA3 Adj. EBITDA $4.51 $690M $109M 6.4x $3.16/$12.73 $257M ~$310M 25% 52 WEEK LOW/HIGH EQUITY VALUE2 FY2019 PRO FORMA REVE
Slide 24: Attractive Financial Profile & Valuation Versus Peers
Attractive Financial Profile & Valuation Versus Peers EV / FY 2019 Adjusted EBITDA EV / (FY 2019 Adjusted EBITDA – Net Capex) Discount vs. Specialty Rental Peers (%): (25%) Discount vs. Specialty Rental Peers (%): (31%) Discount vs. Specialty Waste Peers (%): (51%) Discount vs. Specialty Waste Peers
Slide 25: Appendix
CONCRETE PUMPING HOLDINGS Appendix
Slide 26: Company Evolution
Company Evolution Over the past 35 years, CPH has established a market-leading position and developed a strong platform for continued robust growth 1999-03: Expansion 2009-14: Focus on 2018: Became a public co. 1983-84: Founded 2004: First concrete 2016: Iain through a SPAC into Kansas, Missouri, 20
Slide 27: Select Projects
Select Projects Commercial build project (Portland, OR) EcoPan (Phoenix, AZ) Amazon Block 20 Portland Oregon Commercial Project (Seattle) Thames Tideway Project (London, UK) Rainier Square Project (Seattle, WA) Bridge Project (Corpus Christi, TX) BBCP| 27 NASDAQ:
Slide 28: Quarterly Financial Performance
Quarterly Financial Performance Significant Increase in Cash Flow with Capital Pumping Acquisition Revenue Adjusted EBITDA1 ($ in millions) ($ in millions) $84 $79 $31 $74 $30 $66 $68 $62 $60 $58 $56 $55 $53 $51 $24 $46 $22 $22 $20 $18 $18 $18 $16 $17 $16 $14 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2018 2019 2
Slide 29: Business Seasonality
Business Seasonality • Typically ~55% of revenue is in the second half of the fiscal Percent of Revenue by Quarter year, May through October • Less concrete is placed in the colder and wetter winter 28% 28% 28% months, leading to greater business activity in the second half of the fiscal year 26% 27
Slide 30: Revenue Growth by Segment
Revenue Growth by Segment Strong Historical Revenue Growth ($ in millions) $283.0 U.S. Concrete Pumping $30.4 U.K. Operations $243.2 U.S. Concrete Waste Management Services $28.5 $49.2 $211.2 $23.6 $172.4 $50.4 $18.9 $36.4 $147.4 $135.1 $15.4 $110.3 $13.0 $91.8 $203.7 1 $153.5 $151.2 $164.3 $122.1 $
Slide 31: Reconciliation of CPH Net Income to Adj. EBITDA
Reconciliation of CPH Net Income to Adj. EBITDA Years Ended October 31, ($ in thousands) 2016 2017 2018 2019 Statement of operations information: Net income (loss) 6,234 913 28,382 (32,487) Interest expense, net 19,516 22,748 21,425 36,524 Income tax (benefit) expense 4,454 3,757 (9,784) (7,495) Dep
Slide 32: Reconciliation of CPH Net Income to Adj. EBITDA (cont'd)
Reconciliation of CPH Net Income to Adj. EBITDA (cont’d) S&P Combined S&P (non- Combined Predecessor Successor GAAP) Successor Predecessor (non-GAAP) Successor November 1, 2018 December through 6, 2018 December through 5, January 31, (dollars in thousands) Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2
Slide 33: Shares & Other Equivalents Outstanding
Shares & Other Equivalents Outstanding Outstanding Total Potential Stock for Common Other Shares and Outstanding Valuation Stock Equivalents Outstanding Stock3 Calculations Shares Underlying Outstanding Convertible Securities or Shares Subject to Vesting Fully Diluted Fully Diluted Shares By Type Pu
Slide 34: Credit Facilities Summary
Credit Facilities Summary Credit ◼ $397 million Term Loan Facility1 Facilities ◼ $60 million ABL Revolver2 Interest ◼ Term Loan Facility: Libor + 600bps Rate ◼ ABL Revolver: Libor + 175-225bps based on leverage levels ◼ Term Loan Facility: 7 Years (December 6th, 2025) Tenor ◼ ABL Revolver: 5 Years (
Slide 35: Zero-Dividend Convertible Perpetual Preferred Stock Summary
Zero-Dividend Convertible Perpetual Preferred Stock Summary Principal $25 million Tenor Perpetual Dividend Zero Offering 2,450,980 shares at $10.20 per share The holder of the Preferred Stock may elect to convert its Preferred Stock into shares of Common Stock at a 1:1 ratio at any time Holder Conve
Slide 36: Company Investor Relations
Company Investor Relations Concrete Pumping Holdings, Inc. Gateway Investor Relations 500 E. 84th Ave, Suite A-5 Cody Slach Denver, CO 80229 949-574-3860 www.concretepumpingholdings.com BBCP@gatewayir.com
Concrete Pumping Holdings — Q1 2020 Earnings Presentation on 6ix