Covia — Investor Presentation (January 2020)
17 slides from Covia's investor presentation, Jan 8, 2020
Slide 1: Investor Presentation January 8, 2020
Investor Presentation January 8, 2020 NYSE: CVIA Exhibit 99.1
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 Energy Over 21 million tons of active nameplate capacity Ability to serve all major oil & gas basins with low cost plants Extensive product portfolio to address all well conditions Industrial 19 million tons of active nameplate capa
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 $1.7 Billon Revenue² 1 – Includes coating plants 2 – Last 12 months as of 9/30/19 >$260 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 across diversified end markets Grouts and mortars Commercial flooring Roofing shingles Quartz surfaces Fiberglass Transport - auto, rail & aerospace Equipm
Slide 6: 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: Executing on Our Strategy
Executing on Our Strategy Strengthen Balance Sheet $240M divestiture of non-core assets Generated ~$70M of operating cash flow³ Reduced capex more than 60% vs. prior year³ Lowered SG&A 31% from peak level Consolidation of production into lowest cost assets Idled 15 million tons of capacity Closed /
Slide 8: Improving Financial Flexibility
Improving Financial Flexibility Recent Actions New $85 Million Revolver Commitment¹ 3-year facility without restrictive financial covenants Secured by accounts receivable LIBOR +175 bps, lower than previous facility All Railcar Purchase Obligations Terminated Canceled $195 million in obligations sch
Slide 9: Financials and Outlook
Financial Transition Slide FINANCIALS and OUTLOOK
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: Updated Outlook
Updated Outlook Industrial 4Q 2019 Volumes ~3.2 million tons Includes negative impact from Calera sale End markets performed broadly as expected Strength in building products offset by moderate softness in U.S. container glass and foundry Energy 4Q 2019 Volumes ~3.3 million tons Volume decrease in-l
Slide 12: Drivers for Future Value Creation
Drivers for Future Value Creation Industrial Predictable price increase across end markets Attractive end markets are growing New product development opportunities carry higher margins Energy Idling of market capacity will drive supply/demand stabilization ”Flight to quality” tier 1 suppliers will d
Slide 13: Appendix
COVIA C Appendix
Slide 14: 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 15: Appendix: Segment Gross Margin
Appendix: Segment Gross Margin Covia Pro Forma Segment Information (unaudited) (in thousands) Nine Months Ended September 30, 2019 2018 Covia, As Reported Covia, As Reported Fairmount Santrol Pre-Merger(1) Covia Pro Forma Combined(2) Revenues Industrial 571,199 542,794 55,805 598,599 Segment gross p
Slide 16: 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 17: 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
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