North American Construction Group Ltd. · TSX:NOA
North American Construction — Q4 2014 Earnings Presentation
20 slides from North American Construction's earnings presentation, February 2015
Slide 1: Investor Presentation
Investor Presentation Fourth Quarter ended December 31, 2014
Slide 2: Company Overview
Company Overview Mining Mining Founded in 1953 TSX and NYSE listings: “NOA” Current share price*: $3.75 (CAD) 52 week high/low: $9.22/$3.20 Market capitalization: $131.6 million Shares outstanding: 34.3 million** Average daily share volume: NYSE: 105,161 TSX: 87,127 Annual divide
Slide 3: Net Debt Reduction
Net Debt Reduction $500 $462 $450 $390 $400 $350 Term A Facility Net Debt ($ Millions) $300 Term B Facility Credit Facility $250 Series 1 Debentures less Cash Capital leases (including interest) $200 Operating lease commitments * $134 $150 $127 $98 $100 $50 $0 2011 2012 2013 2014 2014* Year Ended De
Slide 4: Enterprise Value, Net Book Value, and Price per Share
Enterprise Value, Net Book Value, and Price per Share Enterprise Value, Net Book Value, and Price per Share $30 $25 $20 $ per Share $15 $10 $5 $0 2010 2011 2012 2013 2014 2014* Year Ended December 31, EV/Share NBV/Share NOA Share Price (TSX) • Net Book Value exclude s intangible assets which, as a p
Slide 5: Stronger, Better Focused
Stronger, Better Focused NAEP is now a pure‐play heavy construction and mining (HC&M) contractor Simplified business can better target productivity and cost efficiencies Pipeline divestiture in 2012 ($16.3M of proceeds) Piling divestiture in 2013 ($227.5M of proceeds, up to $92.5M of contingen
Slide 6: HC&M – Five Year Financial History
HC&M – Five Year Financial History Revenue and EBITDA Margin $800 $700 $717 $600 $636 $595 $500 $ Millions $470 $472 $400 14% $300 11% 9% 9% $200 5% $100 $0 2010 2011 2012 2013 2014 Year Ended December 31, 6
Slide 7: Activities That Benefit Our Shareholders
Activities That Benefit Our Shareholders Share Purchase Program In December 2014, announced the intention to purchase 1,800,000 common shares for cancellation, this represented 5% of the issued and outstanding shares. In December 2013, completed the purchase of 1,800,000 common shares for cancel
Slide 8: Activities That Benefit Our Shareholders
Activities That Benefit Our Shareholders 5th Amended Credit Facility Negotiated an interest rate reduction of 1.5%, leading to a significant reduction in the cost of borrowing. A combination of working capital and equipment will secure $85 million in potential borrowing. Reduced financial cove
Slide 9: First On, Last Off
First On, Last Off Project Development Phase (3-4 years) Ongoing Operations Phase (30-40 years) Initial mine site development, project site Overburden removal, mine infrastructure development, development, airstrips, piping reclamation, tailing ponds remediation, equipment and labour supply Buil
Slide 10: Significant Heavy Construction & Mining Contractor in the Oil Sands
Significant Heavy Construction & Mining Contractor in the Oil Sands Expertise 30+ years in Northern Alberta’s harsh operating environment Knowledge to come up with best solutions for customers Broad Service Offering Unique suite of services across project lifecycle Operational Flexibilit
Slide 11: Strategic Focus
Strategic Focus Pursue operational excellence in safety, productivity, customer satisfaction Continued strengthening of balance sheet Debt reduction, fleet rationalization and cash‐flow improvement Grow revenue from activity on existing mine sites, incremental work on new sites, and alternat
Slide 12: Outlook for Revenue Growth
Outlook for Revenue Growth Continued activity on existing mine sites as owners grow production Recent awards of over $100 million of secured work on two existing mine sites Continued work at Kearl under the five‐year agreement Continued support of production efforts at Horizon, Base Mine, Mi
Slide 13: BC Hydro - Site C Opportunity
BC Hydro - Site C Opportunity Site C is a third dam and generating station on the Peace River in northeast B.C. The project received environmental approval from the federal and provincial governments in October, 2014. The project was approved by the Province of B.C. December, 2014. Expected
Slide 14: Active with Every Oil Sands Client
Active with Every Oil Sands Client Key Customer Contracts Project put on hold until at least 2017 Site prep work to end in Q4 2014 SUNCOR FORT CANADIAN HILLS Master services agreement was extended to June, 2015 NATURAL EXXON HORIZON KEARL Winter reclamation work continues while we attempt TO
Slide 15: Potential Production Expansion on Oil Sands Mine Sites
Potential Production Expansion on Oil Sands Mine Sites Key Customer Production and Expansion SUNCOR FORT Syncrude current: 350,000 bbl/d HILLS CANADIAN NATURAL HORIZON EXXON KEARL Syncrude expansion total potential: 500,000 bbl/d TOTAL SHELL/ALBIAN JOSLYN JACKPINE AND MUSKEG RIVER Fort Hills m
Slide 16: Thank You
THANK YOU 16
Slide 17: Appendix
APPENDIX
Slide 18: HC&M – Heavy Equipment Fleet
HC&M – Heavy Equipment Fleet Owned Equipment Leased Equipment Support Heavy Trucks, Support Heavy Trucks, Equipment, 90 Equipment, 59 56 118 Loading Equipment, Loading 48 Equipment, 24 Heavy Trucks Loading Equipment Support Equipment Heavy Trucks Loading Equipment Support Equipment 18
Slide 19: Large, Well Maintained Equipment Fleet
Large, Well Maintained Equipment Fleet Category Own Lease Rental Total SHOVELS 2 0 0 2 EXCAVATORS (≥100T) 9 3 0 12 EXCAVATORS (<100T) 37 21 6 64 RIGID FRAME TRUCKS (>200T) 23 16 0 20% 39 RIGID FRAME TRUCKS (100T to 200T) 56 18 0 74 RIGID FRAME TRUCKS (<100T) 6 2 0 8 ARTICULATED TRUCKS 5 20 16 40% 40
Slide 20: Forward-Looking Statements
Forward-Looking Statements The information provided in this presentation contains forward‐looking statements and information which reflect the current view of North American Energy Partners with respect to future events and financial performance. Actual results could differ materially from those con
North American Construction Group — Q4 2014 Earnings Presentation on 6ix