Mccoy Global Inc. · TSX:MCB
Mccoy Global — Investor Presentation (November 2012)
31 slides from Mccoy Global's investor presentation, November 2012
Slide 1: Innovative Paths to Global Growth
INNOVATIVE PATHS TO GLOBAL GROWTH Investor Presentation November 2012
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: Company Overview
Company Overview ⁄ Experts in making up threaded connections ⁄ Strong and growing market ⁄ Developing innovative products based on client needs ⁄ Every new product is developed with at least one customer ⁄ Growing G i sales l ffootprint t i t ⁄ Delivered products and/or services to 44 countries in 2
Slide 4: Market Drivers and Opportunity
Market Drivers and Opportunity DEEPER/LONGER WELLS MORE RIGS 4000 4000 3500 International Canada US US Canada 3000 3000 2500 2000 2000 1500 1000 1000 500 0 0 1/91 1/93 1/95 1/97 1/99 1/01 1/03 1/05 1/07 1/09 1/11 Average Well Length (m), (m) North America Active Rig Counts ⁄ More horizontal drilling
Slide 5: Global Clients
Global Clients Target customers: Service companies p ((Baker,, Weatherford)) Contract drillers (Transocean, H&P) Rig manufacturers (NOV, Cameron) 5
Slide 6: Growing Sales Footprint
Growing Sales Footprint McCoy delivered products/sales to 44 countries in 2011 ⁄ Manufacturing ⁄ New Product Development ⁄ Service Support ⁄ Mobile Solutions ⁄ MCB D&C Headquarters ⁄ New Product Development ⁄ Service Support ⁄ Manufacturing ⁄ New Product Development ⁄ Service Support Growth Opportun
Slide 7: Corporate Overview
Corporate Overview Energy Products & Services Mobile Solutions Drilling and Completions Trailers Coating and Hydraulics 7
Slide 8: Sustained Growth
Sustained Growth Historical Segmented Revenue* ($millions) $200 $65M $150 $52M $69M $68M $100 $82M $32M $125M $12M $94M $85M $50 $63M $68M $64M $29M $‐ 2006 2007 2008 2009 2010 2011 2012E EP&S Mobile Solutions 8 *From continuing operations
Slide 9: Energy Products & Services
ENERGY PRODUCTS & SERVICES ⁄ Drillingg and Completions p ⁄ Coating and Hydraulics McCoy Corporation
Slide 10: Broad Product and Portfolio Pipeline
Broad Product and Portfolio Pipeline Available In Development Potential Tubular • Torque Turn Monitoring • Iron Roughneck • Controls & Data Running Software (WinCatt) • Electric Bucking Unit Equipment • Hydraulic Power Tongs • Casing Running Tool • Make/ Break Tools • Casing Handling Tool • Bucking
Slide 11: Select Drilling & Completions Products
Select Drilling & Completions Products Hydraulic Power Tongs Bucking Units Apply torque to loosen/ Apply torque to loosen/ tighten tubulars vertically tighten tubulars horizontally • 40% global market share weCATT CATT Torque T SSub b I Iron Roughneck R h k Records tubular torques, turns and Applies
Slide 12: Coatings & Hydraulic Cylinder Repair
Coatings & Hydraulic Cylinder Repair ⁄ Focused management team ⁄ Divisions: ⁄ Operational p efficiencies ⁄ Hydraulics ⁄ Quality improvements ⁄ PTA ⁄ Plating ⁄ 2012 trend to continue ⁄ Thermal Spray ⁄ Market growth opportunities Largest chrome‐plating facility in Western Canada 12
Slide 13: Mobile Solutions
MOBILE SOLUTIONS McCoy Corporation
Slide 14: Meeting Demand
Meeting Demand ⁄ Brands include Peerless and Scona ⁄ Manufacturingg pplant in British Columbia, Canada ⁄ 3 U.S. sub‐contracting plants: 2 in Texas; 1 in Arkansas ⁄ Efficient way to add capacity during market peaks 14
Slide 15: McCoy Growth Strategy
McCOY GROWTH STRATEGY
Slide 16: McCoy Growth Strategy - Overview
McCoy Growth Strategy ‐ Overview Innovative Products | Strategic Acquisitions | International Focus McCoy Today Outlook Strategic acquisitions Complementary products & services Increased investment in NPD Improving customer efficiency Customer entrenchment Oil and gas market focused On‐time product
Slide 17: Organic Growth via Development of Innovative Products
Organic Growth via Development of Innovative Products ⁄ Products are developed in joint partnerships with our customers ⁄ Significant IP portfolio: barrier to entry ⁄ 61 registered i t d patents, t t 10 pending di ⁄ Four patent applications filed in Q2 2012 PROJECT Torque Iron Hydraulic Pipe Electri
Slide 18: International Market Stability
International Market Stability 2,000 nts (Average off the monthlyy consensus) 1,500 Global Rig Counts Canada US 1,000 International 500 Rig Coun 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 McCoy’s focus on the global market reduces volatility Source: Baker Hughes. The Baker Hughes Inter
Slide 19: International Sales & Support Growth
International Sales & Support Growth ⁄ McCoy expanded its U.S. and international sales from 48% of total sales in 2008 to 56% in 2011 2008 Sales 2011 Sales 2014 Goal 30% 20% US 37% Canada 52% 44% US 35% Canada Canada US 18% 19% 45% Intl. International Intl. ⁄ Planned global support locations targeti
Slide 20: Financial Overview and Performance
FINANCIAL OVERVIEW AND PERFORMANCE McCoy Corporation
Slide 21: Market Summary
TSX:MCB Market Summary Share price $3.60 (as at November 15 15, 2012) Shares outstanding ~26.6 million (as at September 30, 2012) Options ~1.7 million (as at September 30, 2012) Market capitalization ~$95.6 million ((as at November 15,, 2012)) Average daily trading volume 37,694 shares (January 1, t
Slide 22: 2010-2012 Annual Segmented Results
2010 ‐ 2012 Annual Segmented Results* Twelve months ended Twelve months ended Nine months ended December 31, 2010 December 31, 2011 September 30, 2012 Mobile Mobile External Sales Solutions Mobile Solutions 32% EP&S Solutions 36% EP&S EP&S 55% 45% 68% 64% Earnings from Mobile continuing Solutions Mo
Slide 23: 2012 Financial Results
2012 Financial Results Nine months ended $ million, except noted Q3 2012 9/30/2012 T t l revenue Total 48 4 48.4 135 1 135.1 Net earnings 4.2 8.5 Net earnings per share 0 16 0.16 0 32 0.32 EBITDAS 7.5 16.6 EBITDAS p per share 0.28 0.63 EBITDAS percent of revenue 15% 12% Cash flow from continuing ope
Slide 24: 2011 Annual Financial Results
2011 Annual Financial Results $ million, except noted 2011 2010 Change T t l revenue Total 153 8 153.8 100 8 100.8 +53% Net earnings 11.9 5.4 +120% Net earnings per share 0 45 0.45 0 20 0.20 +125% EBITDAS 21.6 13.6 +59% EBITDAS p per share 0.81 0.51 +59% EBITDAS percent of revenue 14% 13% +8% Cash f
Slide 25: Investing in McCoy
Investing in McCoy ⁄ Strong long term market fundamentals ⁄ Significant growth and earnings potential ⁄ Excellent management team with a proven track record ⁄ Strong balance sheet ($15.5 million in cash) ⁄ Innovative technologies with barriers to entry ⁄ Growing global market presence ⁄ Increased di
Slide 26: Contact Details
Jim Rakievich, President & Chief Executive Officer Milica Stolic, Chief Financial Officer & Corporate Secretary Jim Nowotny, Senior Vice President, Drilling & Completions Head Office: Edmonton, Alberta, Canada ( (780) ) 453‐8451 [email protected] www.mccoyglobal.com TSX:MCB 26
Slide 27: Additional Information
ADDITIONAL INFORMATION ⁄ Management Team ⁄ Board of Directors ⁄ Selected Financial Information ⁄ Analyst Coverage
Slide 28: Executive Team
Executive Team Corporate Ji R Jim Rakievich, ki i h ICD ICD.D D P id President and d Chief Chi f Executive E i Officer Offi Milica Stolic, CMA Chief Financial Officer & Corporate Secretary Tom Watts VP,, Human Resources Energy Products & Services Jim Nowotny, BSME Senior VP, Drilling & Completions J
Slide 29: Board of Directors
Board of Directors Kerry Brown, CA Chairperson, President and CEO of CMW Management Inc. Frank Burdzy, MBA President and CEO of Champion Petfoods Terry Chalupa President and CEO of Abalone Construction Terry Freeman, FCA, ICD.D Managing Director of Northern Plains Capital Ltd. John Howard, CA Managi
Slide 30: Three Year Dividend History
Three Year Dividend History Dividend Declared Date Amount per common share February 26, 2009 $0.01 May 29, 2009 $0.01 September 17, 2009 $0.01 March 10, 2011 $0.01 March 17, 2011 $0.041 May 19 19, 2011 $0 01 $0.01 September 30, 2011 $0.01 December 13, 2011 $0.03 March 22 22, 2012 $0 03 $0.03 May 17,
Slide 31: Analyst Coverage
Analyst Coverage Paradigm Capital John Bereznicki, CFA Calgary, l Alberta lb Ben Cherniavsky & y Raymond James Steve Hansen Vancouver, British Columbia Cormarkk SSecurities C iti Sarah Hughes, CFA Toronto, Ontario GMP Securities L.P. Justin Wu, CFA Toronto, Ontario 31