Mccoy Global Inc. · TSX:MCB
Mccoy Global — Shareholder Meeting (May 2013)
26 slides from Mccoy Global's shareholder meeting presentation, May 16, 2013
Slide 1: We Are McCoy: Innovative Products, Going Global
WE ARE McCOY INNOVATIVE PRODUCTS, GOING GLOBAL Annual General Meeting May 16, 2013
Slide 2: Forward Looking Information
FORWARD LOOKING INFORMATION This presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect“, "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should",
Slide 3: 2012 & Recent Highlights
2012 & RECENT HIGHLIGHTS 3
Slide 4: Developed Innovative Products
DEVELOPED INNOVATIVE PRODUCTS Torque Sub ⁄ Launched the weCATT Torque Sub “weCATT” ⁄ Announced next project in the pipeline: weHOLD Casing Handling Tool Patent pending Casing Handling ⁄ Progressed development of other Tool “weHOLD” products in the “we” product line ⁄ First iron roughneck (weTORQ85)
Slide 5: weVERIFY Remote Calibration Tool
weVERIFY REMOTE CALIBRATION TOOL ⁄ Calibrates equipment used to make tubular connections ⁄ Remote calibration for customers worldwide ⁄ Compatible with WINCATT® system ⁄ Can be used horizontally or vertically ⁄ Real-time data 5
Slide 6: Increased Sales Footprint
INCREASED SALES FOOTPRINT ⁄ Delivered products and/or services to 51 countries in 2012 ⁄ 85% of EP&S revenue from U.S. and international sales ⁄ Established 1st international sales and service center in Aberdeen ⁄ In the process of setting up a 2nd center in Southeast Asia *Revenue is attributed to
Slide 7: Strengthened Our Team
STRENGTHENED OUR TEAM ⁄ Executive team ⁄ Jim Nowotny, Senior Vice President, Drilling & Completions ⁄ Peter Watson, Vice President, Legal & Corporate Secretary ⁄ Board ⁄ John Irwin ⁄ Filled key management positions ⁄ Service ⁄ New product development ⁄ Supply chain management ⁄ Finance ⁄ Quality con
Slide 8: Prepared for Growth
PREPARED FOR GROWTH ⁄ Energy Products and Services ⁄ Retrofitted weCATT and WinCatt plant 8
Slide 9: Prepared for Growth
PREPARED FOR GROWTH ⁄ Energy Products and Services ⁄ Added 14,000 sq. ft. bucking unit manufacturing plant 9
Slide 10: Prepared for Growth
PREPARED FOR GROWTH ⁄ Energy Products and Services ⁄ Increased dies and inserts manufacturing capacity 10
Slide 11: Prepared for Growth
PREPARED FOR GROWTH ⁄ Energy Products and Services ⁄ Relocated Rig Parts manufacturing to a dedicated facility ⁄ Opened technical service center in Houston ⁄ Mobile Solutions ⁄ Strengthened sub-contractor relationships ⁄ Expanded dealer network in the U.S. 11
Slide 12: 2012 Financial Highlights
2012 FINANCIAL HIGHLIGHTS ⁄ Record annual revenue of $179.4 million ⁄ 37% increase in EP&S segment revenue over 2011 ⁄ Record adjusted EBITDA of $22.9 million ⁄ Secured $53 million in new credit facilities 12
Slide 13: Growth Strategy
GROWTH STRATEGY 13
Slide 14: Market Drivers: Deeper/Longer Wells, More Rigs
MARKET DRIVERS: DEEPER/LONGER WELLS, MORE RIGS Average Well Length (m), North America Active Rig Counts (1991-2012) ⁄ More horizontal drilling, premium connections, longer laterals ⁄ Deeper, Higher Pressure/Temperature (HPHT) wells ⁄ Exposure to both land and offshore drilling 14
Slide 15: Innovative Products, International Focus, Strategic Acquisitions
INNOVATIVE PRODUCTS INTERNATIONAL FOCUS STRATEGIC ACQUISITIONS 15
Slide 16: New and Innovative Products
NEW AND INNOVATIVE PRODUCTS ⁄ Products are developed in joint partnerships with our customers ⁄ Significant IP portfolio: barrier to entry ⁄ 61 registered patents, 10 pending ⁄ Four patent applications filed in 2012 PROJECT Torque Remote Iron Electric Hydraulic Pipe CRT Casing Casing Sub Calibration
Slide 17: International Focus
INTERNATIONAL FOCUS ONSHORE AND OFFSHORE. OIL AND GAS. CONVENTIONAL AND UNCONVENTIONAL. 17
Slide 18: Global Service & Supply Model
⁄ Sales & Service Center ⁄ Mobile Solutions ⁄ MCB Corporate Head Office ⁄ Manufacturing ⁄ Manufacturing ⁄ New Product ⁄ New Product Development Development ⁄ Service Support ⁄ Service Support ⁄ MCB Drilling & Completions Headquarters ⁄ New Product Development ⁄ Service Support GLOBAL SERVICE & SUPPL
Slide 19: Strategic Acquisitions
STRATEGIC ACQUISITIONS Tubular Handling Tubular Equipment & Running Tools Handling Accessories • Links Potential • Manual Tongs • Slips • Automated • Downhole • Bushings Pipe Accessories • Elevators Handling • Regional • Controls & Data • Spiders Systems Service Shops In Development • Electric Bucki
Slide 20: We Are McCoy
WE ARE McCOY ⁄ Innovative technologies with barriers to entry ⁄ Strong long term offshore and international market fundamentals ⁄ Growing global market presence ⁄ Significant growth and earnings potential ⁄ Excellent management team with a proven track record ⁄ Attractive dividend yield ⁄ Strong bal
Slide 21: We Are McCoy
Jim Rakievich President & CEO Jacob Coonan Interim CFO Jim Nowotny Senior VP Drilling & Completions Peter Watson WE ARE McCOY VP, Legal and Corporate INNOVATIVE PRODUCTS, GOING GLOBAL Secretary Tom Watts VP, Human Resources Bruce Scott Senior VP, Mobile Solutions Jane Debbrecht VP, Coatings and Hydr
Slide 22: TSX:MCB Market Summary
TSX:MCB Market Summary Share price $4.70 (as at May 15, 2013) 52-week range $3.23 - $4.80 Shares outstanding ~26.7 million (as at May 15, 2013) Options ~1.4 million (as at May 15, 2013) Market capitalization ~$126 million (as at May 15, 2013) Average daily trading volume 26,214 shares (TTM) Dividend
Slide 23: Shareholder Return
SHAREHOLDER RETURN Returned $8.8 million to shareholders through dividends since January 2011 16.4% ROIC* (2012) Amount per 41% Dividends Paid common share Total amount 2011 $0.10* $2.6 million 2012 $0.18 $4.8 million Payout Ratio 2013 to date $0.05 $1.3 milion (2012) * Includes a special dividend d
Slide 24: 2012 Annual Financial Results
2012 ANNUAL FINANCIAL RESULTS $ million, except noted 2012 2011 Change Total revenue 179.4 153.8 +17% Net earnings 11.8 11.9 -1% Net earnings per share 0.44 0.45 -2% Adjusted EBITDA 22.9 21.6 +6% Adjusted EBITDA per share 0.86 0.81 +6% Adjusted EBITDA percent of revenue 13% 14% -1% Cash flow from co
Slide 25: Investing in the Future
INVESTING IN THE FUTURE Research and Development $2.6 million Working Capital Build $10.1 million Property, Plant and Equipment $9.2 million 25
Slide 26: Quarterly Financial Results
QUARTERLY FINANCIAL RESULTS $ million, except noted Q1 2013 Q1 2012 Total revenue 42.0 45.5 Net earnings 2.1 2.2 per basic share 0.08 0.08 Adjusted EBITDA 4.7 4.6 per basic share 0.18 0.17 Adjusted EBITDA percent of revenue 11% 10% Cash flow from continuing operating activities (6.0) (3.3) per basic