Covia — Q4 2019 Earnings Presentation
18 slides from Covia's earnings presentation, Mar 10, 2020
Slide 1: Fourth Quarter 2019 Earnings Presentation
Fourth Quarter 2019 Earnings Presentation March 10, 2020 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 by the Numbers
Covia by the Numbers 2,000+ Customers Nearly 40 Plants¹ > 100 Years of Experience >40M Tons Active annual production capacity $1.6 Billon Revenue² 1 – Includes coating plants 2 – In 2019 >$250 million Net debt reduction in 2019 $ $
Slide 5: 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 6: Energy Segment Size and Scale
Size and Scale Local In-Basin Northern White Curable & Tempered Well Cementing Additives & Gravel Packing Sand Energy Segment Matched to Market Raw Sand Resin Coated Sand Drilling Products Well-located plants serving Permian and MidCon basins High-quality raw sand used in all basins Addresses flowba
Slide 7: Net debt reduced by over $250 million in 2019
Net debt reduced by over $250 million in 2019 Significant Progress Toward Balance Sheet Improvement Strengthen Balance Sheet 1 – On a pro forma basis 2 – Exclusive of fees Repurchased $63M face value of term loan for $48M² Expected to close on new credit facility in March 2020 Generated over $100M i
Slide 8: Key Industrial Projects: Nepheline Syenite Expansion and Modernization
Nepheline Syenite Expansion and Modernization Project Overview Modernization and expansion of the only facility of its kind in North America Facility built in 1935 Expands capabilities to serve coating & polymers end markets and creates highly efficiency modern facility Status Approximately $45M spe
Slide 9: Nepheline Syenite Expansion and Modernization Expected Financial Benefits
Nepheline Syenite Expansion and Modernization Expected Financial Benefits Reduces annual operating costs by $9M starting in 2022 Lowers maintenance capital requirements by $30M over next 10 years Increases capacity to serve growth markets Primary End Markets Outlook and Product Benefits Key Industri
Slide 10: Financials and Outlook
Financial Transition Slide FINANCIALS and OUTLOOK
Slide 11: Fourth Quarter and Full-Year Highlights
Quarter Highlights Fourth Quarter and Full-Year 19 Highlights Generated cash flow from operating activities of $35 million in Q4 and $104 million in 2019 Reduced net debt by $256 million in 2019 Completed Canoitas, Mexico expansion in Q4 Terminated $195 million railcar purchase commitment Received c
Slide 12: Fourth Quarter 2019 Results
Fourth Quarter 2019 Results In millions Industrial Energy Total Company Volumes (tons) 3.2 3.3 6.6 Revenue $161.4 $151.9 $313.3 Gross Profit $46.4 $(12.5)¹ $33.9¹ Contribution Margin $46.4 $1.7¹ $48.1¹ SG&A -- -- $37.4² Adjusted EBITDA -- -- $0.1 1 - Includes negative impact of $1.9 mm lease expense
Slide 13: Full Year 2019 Results
Full Year 2019 Results In millions Industrial Energy Total Company Volumes (tons) 14.0 16.5 30.5 Revenue $732.6 $862.9 $1,595.4 Gross Profit $222.2 $54.1¹ $276.3¹ Contribution Margin $222.2 $89.2¹ $311.4¹ SG&A -- -- $153.6 Adjusted EBITDA -- -- $143.0 1 - Includes negative impact of $7.9 mm lease ex
Slide 14: Outlook
Outlook Industrial 1Q 2020 Volumes 3.3 to 3.4 million tons Energy 1Q 2020 Volumes Up 10-15% sequentially Total Company FY20 SG&A $135M to $145M Includes ~$10M in non-cash stock comp Capex $60 million to $70 million Includes $20M to $25M for nepheline syenite modernization & expansion Total Company 1
Slide 15: Appendix
COVIA C Appendix
Slide 16: Appendix: Non-GAAP Reconciliation Contribution Margin
Appendix: Non-GAAP Reconciliation Contribution Margin Covia Segment Information (unaudited) (in thousands) Three Months Ended December 31, 2019 Covia, As Reported Volumes (tons) Energy 3,307 Industrial 3,244 Total volumes 6,551 Revenues Energy $ 151,938 Industrial 161,369 Total revenues 313,307 Segm
Slide 17: Appendix: Non-GAAP Reconciliation EBITDA & Adjusted EBITDA
Appendix: Non-GAAP Reconciliation EBITDA & Adjusted EBITDA Covia 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 (loss) fro
Slide 18: 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 W&W, as well as freight revenues. Calera and W&W were sold in August and September 2019, respectively. Amou