Covia — Q3 2019 Earnings Presentation
15 slides from Covia's earnings presentation, Nov 6, 2019
Slide 1: Third Quarter 2019 Earnings Presentation
Third Quarter 2019 Earnings Presentation November 6, 2019 NYSE: CVIA Exhibit 99.2
Slide 2: Forward Looking Statements
Forward Looking Statements Forward-Looking Statements This presentation contains forward-looking statements intended to qualify for the protection of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “estimate,” “expect,” “objective,” “goal,” “
Slide 3: Covia: A Leading Diversified Mineral and Material Solutions Company
Covia: A Leading Diversified Mineral and Material Solutions Company Covia is a leading provider of advanced mineral-based material solutions across Industrial and Energy markets Energy Over 21 million tons of active nameplate capacity Ability to serve all major oil & gas basins with low cost plants
Slide 4: Covia's Strategy
Covia’s Strategy Grow Industrial Segment Reposition Energy Segment Strengthen Balance Sheet
Slide 5: Executing on Strategy
Executing on Strategy Strengthen Balance Sheet 1 – On a pro forma basis Successfully divested non-core assets for $240M Over $120M of operating cash flow over last 6 months 3Q 19 capex down more than 50% vs. 1Q 19 3Q 19 SG&A down 31% vs. 2Q 18¹ Continued consolidation of production into lower cost f
Slide 6: Diverse Industrial Business
Diverse Industrial Business Containers Touch screens Automotive Architectural Solar Tiles Sanitary ware Bathtubs & sinks Demonstrated leadership and customer knowledge across diversified end markets Grouts and mortars Commercial flooring Roofing shingles Quartz surfaces Fiberglass Transport - auto,
Slide 7: Low-Cost Energy Asset Portfolio
Low-Cost Energy Asset Portfolio In-Basin Plants Primary Basin(s) Served Logistics Energy Capacity (mtpa) Kermit, TX Crane,TX Seiling, OK Permian, Mid-Con 8.0 N/A Unit Train Capable Wedron, IL Oregon, IL Bakken, Mid-Con Rockies, Permian, Eagle Ford Yes Utica, IL Northeast Yes Tunnel City, WI Bakken,
Slide 8: Financials and Outlook
Financial Transition Slide FINANCIALS and OUTLOOK
Slide 9: Third Quarter Highlights
Quarter Highlights Third Quarter 19 Highlights Sold $240 million of non-core assets Solid 4% year-over-year Industrial profitability growth, despite asset sales and negative impact from GM strike Excluding asset sales, Industrial gross profit up 11% year-over-year Reduced 3Q 19 SG&A 8% sequentially
Slide 10: Third Quarter 2019 Results
Third Quarter 2019 Results In millions Industrial Energy Total Company Volumes (tons) 3.6 4.2 7.8 Revenue $185.6 $223.3 $409.0 Gross Profit $59.1 $17.7¹ $76.7¹ Contribution Margin $59.1 $24.6¹ $83.6¹ SG&A -- -- $35.6² Adjusted EBITDA -- -- $43.2 1 - Includes negative impact of $1.9 mm lease expense
Slide 11: Outlook
Outlook Industrial 4Q 2019 Volumes 3.3 to 3.5 million tons Includes negative impact from Calera sale Energy 4Q 2019 Volumes Down at least 15% sequentially Total Company FY19 SG&A $145 to $155 million Includes ~$10mm in non-cash stock comp Capex $85 million to $95 million
Slide 12: Appendix
COVIA C Appendix
Slide 13: Appendix: Non-GAAP Reconciliation Contribution Margin
Appendix: Non-GAAP Reconciliation Contribution Margin Covia Pro Forma Segment Contribution Margin & Reconciliation of Non-GAAP Measures (unaudited) The following table reconciles segment contribution margin and segment contribution margin per ton, non-GAAP financial measures, to the most directly co
Slide 14: Appendix: Non-GAAP Reconciliation EBITDA & Adjusted EBITDA
Appendix: Non-GAAP Reconciliation EBITDA & Adjusted EBITDA Covia Pro Forma Net Income (Loss) Information & Reconciliation of Non-GAAP Measures (unaudited) The following table reconciles EBITDA and Adjusted EBITDA, non-GAAP financial measures, to the most directly comparable GAAP measure, net income
Slide 15: Appendix: Adjusted Segment Information
Appendix: Adjusted Segment Information Covia Adjusted Industrial Segment Information The following table provides unaudited adjusted Industrial segment data, excluding the impact of Calera and the Winchester & Western Railroad W&W, as well as freight revenues. Calera and W&W were sold in August and