Decisive Dividend Corp. · TSXV:DE
Decisive Dividend — Investor Presentation (June 2018)
21 slides from Decisive Dividend's investor presentation, Jun 5, 2018
Slide 1: Investor Presentation
INVESTOR PRESENTATION June 5, 2018 A preliminary short form prospectus dated May 25, 2018 (the “preliminary prospectus”) containing important information relating to the securities described in this document has been filed with the securities regulatory authorities in each province of Canada, other
Slide 2: Forward Looking Information
Forward Looking Information The preliminary prospectus, the documents incorporated by reference therein and this presentation contain forward-looking information and forward-looking statements. All statements other than statements of historical fact contained in herein and therein are forward-lookin
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures In this presentation and in the preliminary prospectus, in discussing the financial performance of the Corporation and/or the target companies, reference is made to the measure “EBITDA”, “Adjusted EBITDA” and “EBITDA for growth or distribution”, as well as “TTM EBIDA” and
Slide 4: Non-GAAP Financial Measures
Non-GAAP Financial Measures • While EBITDA, Adjusted EBITDA and TTM Adjusted EBITDA are used by management of the Corporation to assess the historical financial performance of the performance of Slimline and Hawk, readers are cautioned that: – Non-GAAP financial measures, such as EBITDA, Adjusted EB
Slide 5: Non-GAAP Financial Measures
Non-GAAP Financial Measures • A reconciliation of the non-GAAP financial measures to the most directly comparable measure in the Slimline Manufacturing Ltd. financial statements is as follows: (A) (B) (A) + (B) For the eight months For the four months For the trailing ended ended twelve months (“TTM
Slide 6: Mission Statement
Mission Statement To deliver long-term, sustainable and growing income streams to our investors by acquiring specialty manufacturing companies and providing oversight to ensure sound business operations and expansion strategies are executed 6
Slide 7: Management Team
Management Team James Paterson Dave Redekop Terry Edwards Daniel Healey Chief Executive Officer Chief Financial Officer Chief Operating Officer Manager of Finance • Director, Chairman of • CPA, CA • Director and COO • CPA, CA the Board and CEO • Director and CFO since 2012 • Joined Decisive in since
Slide 8: Board of Directors
Board of Directors Board of Directors Principal Occupation Committees James Paterson (Chair) See Management Team bio David Redekop See Management Team bio Terry Edwards See Management Team bio Governance & Compensation Bruce Campbell President and Portfolio Manager of StoneCastle Investment Audit Ma
Slide 9: Why Decisive?
Why Decisive? Vendors Employees Shareholders • Exit opportunity • Business as usual • Growing diversified portfolio of companies • Business legacy continues • Opportunity for equity ownership • Monthly dividend policy (Employee Share Purchase Plan) • Opportunity to cash out • Growth opportunities (m
Slide 10: Acquisition Criteria and Structure
Acquisition Criteria and Structure • Minimum ten years of profitable operations • Specialty manufacturing (sustainable competitive advantage) Acquisition • Focus on non-discretionary products Criteria • Growth potential • Operations based in North America Acquisition • Acquire 100% ownership • Purch
Slide 11: Milestones
Milestones 2013 2015 2016 2018 September June June January • IPO - $1.5m @ $1.00 per share •Monthly Dividend Policy •Private Placement - $5.0m •New President of Unicast • Decisive shares commence implemented - $0.02 per @ $3.00 per share •New VP of Sales and trading on TSX Venture share •100% of Uni
Slide 12: Dividend and Share Price Growth
Dividend and Share Price Growth Dividends Paid Per Share Annual raise monthly dividend to $0.025 FY Cumulative Yield FY15 $0.18 $0.18 4.9% raise monthly dividend to $0.03 first monthly dividend at $0.02 FY16 $0.30 $0.48 9.4% FY17 $0.35 $0.83 8.3% FY18 $0.15 $0.98 9.0% Monthly Dividend $0.035 $0.030
Slide 13: Performance in Perspective
Performance in Perspective Total Shareholder Return since Qualifying Transaction 180% 160% 140% 146% 120% 100% 80% 60% 40% 20% 15% 0% -20% DDC S&P/TSX Composite Total Return Index Correlation of TSX Composite Total and Decisive Dividend $5.00 57,000.00 Correlation:(0.36), Beta: 0.16 55,000.00 $4.00
Slide 14: Acquisition 1: Blaze King
Acquisition 1: Blaze King Blaze King manufactures a variety of wood burning hearth products. As listed by the EPA, Blaze King has four of the top ten most efficient and cleanest wood stoves in North America Transaction Profile Acquired: February 2015 for $6,600,000; Priced at 5.1x Established in 197
Slide 15: Acquisition 2: Unicast Inc.
Acquisition 2: Unicast Inc. Unicast designs and distributes quality cast replacement wear parts for the cement, mining, aggregate, and coal industries worldwide. Transaction Profile Acquired: June 2016 for $11,000,000; Priced at 4.9x Established in 1994 EBITDA Facilities in Kelowna, BC 18 Employees
Slide 16: Proposed Acquisitions – Slimline and Hawk Machine
Proposed Acquisitions – Slimline and Hawk Machine ‘000s Slimline Hawk Machine Manufacturing Ltd. Works Ltd. Purchase price $ 7,000* $ 13,500 EBITDA multiple (based on TTM Adjusted EBITDA, if available) 3.9x 2.7x Expected close date May 30, 2018 June 29, 2018 Debt financing $ 6,000 - Vendor take-back
Slide 17: Acquisition 3: Slimline Manufacturing Ltd.
Acquisition 3: Slimline Manufacturing Ltd. Slimline designs, manufactures and markets agricultural sprayers and evaporation systems for sale and distribution in North America and worldwide Transaction Profile Proposed Acquisition Date: May 2018 for $7,000,000, Established in 1948 plus up to an addit
Slide 18: Acquisition 4 – Hawk Machine Works Ltd.
Acquisition 4 – Hawk Machine Works Ltd. Hawk Machine is a third-party producer of downhole tools for the oil and gas industry, and ground rod products for the power utility industry. Transaction Profile Proposed Acquisition Date: June 2018, for $13,500,000; Established in 1998 Priced at 2.7x Adjuste
Slide 19: Pro Forma Financial Information
Pro Forma Financial Information The table below sets forth the pro forma combined financial information of Decisive and the two acquisitions, Hawk Machine and Slimline: ‘000s DDC(2) Slimline(3) Sub-total Hawk(4) Total Adjusted EBITDA(1) $ 3,588 $ 1,795 $ 5,383 $ 5,115 $ 10,498 Debt payments (5) (1,2
Slide 20: Corporate Profile (June 5, 2018)
Corporate Profile (June 5, 2018) TSX.V Listing DE Share price $3.97 52-week range $3.80 - $4.68 Total shares outstanding 6.50m basic 0.01m warrants (17,603 @ $3.00) 0.48m options (18,500 @ $2.00; 463,500 @ $3.00) 6.99m fully diluted Market capitalization $25.8m Monthly dividend per share $0.03 Annua
Slide 21: #201-1674 Bertram Street
#201-1674 Bertram Street Kelowna, BC V1Y 9G4 Canada T: 250-870-9146 DE LISTED ON
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