Financial Summary Shares outstanding at August 11, 2015 37,100,681 Share price range (52 weeks) at August 11, 2015 20.32 - 36.07 Market Capitalization - at August 11, 2015 1.0B Net debt at June 30, 2015 96,269,000 Enterprise Value…
What is Daylighting Daylighting is simply exposing underground facilities, such as utilities and pipelines, to daylight. 4
Badger Daylighting Badger Daylighting is North Americas largest provider of non-destructive daylighting services. Badgers primary customers are contractors and facility owners in the utility and petroleum sectors. 5
Badger Process Purpose built, productive Badger unit with well trained, professional operators. 6
Badger Process Pressurized water stream excavation. Nozzle design, pressure and volume is critical to prevent damage. 7
Badger Process Powerful vacuum system removes soil and debris. 8
Advantages of Badger Process Safe Helps prevent damage to underground infrastructure Saves time Keeps projects on schedule Increases efficiency of hand digging or mechanical excavation equipment when digging around underground…
10
Opportunity: Aging Infrastructure 112,000 miles of distribution gas mains need to be replaced.1 5.6M distribution gas services need to be replaced.1 American Society of Civil Engineers estimates 3.6T investment needed in US…
Opportunity: Safety 12
Opportunity: Safety June 2015 Canmore, AB A third party contractor hit a 1 steel ATCO gas line and pulled it off the main. The resulting gas leak caused an explosion, spreading shrapnel around the neighborhood and severely damaging…
Opportunity: Aging Infrastructure San Bruno, CA Sept 2010 NG Pipeline Rupture 14
15
Opportunity: Aging Infrastructure BADGER Advantage: Water Main Break Expand road cut to 4 x 4 Install shoring & complete repair Water service restored 60% faster than traditional approach Repair completed for 10% of cost of…
Opportunity: Increase Productivity BADGER Advantage: More Efficient Service Contractor averaging 2-3 service trenches per day or 160-240 linear feet/day with hand digging Hires Badger to dig trench Badger averaged 7-10 trenches or…
Opportunity: Trenching BADGER Advantage: 11 cubic yards per day in congested conditions Clean, neat and precise 18
Opportunity: Alternative Solution BADGER Advantage: Strength and Power Solution provider for unique and difficult projects Excavated 70 to sink down culvert in a landfill No other option was available 19
Opportunity: Increase Productivity Nuclear Facility Badger productivity is double what the contractor accomplished Same application and soil conditions for both trucks 20
Opportunity: Debris Removal BADGER Advantage: Strength & Power Debris removal from inside caissons on a barge over 80 deep Drilling grout removal over 10 cubic yards in less than 10 minutes 21
Badger Daylighting Markets 49 51 Petroleum-related infrastructure Utilities & other 49% & oil field service 51% 22
Diversified Market UTILITIES OIL & GAS POWER GENERATION Gas Distribution Transmission Pipeline Nuclear Electric Distribution Refineries Coal Water & Sewer Production Wind Telecommunications Storage Solar TRANSPORTATION…
Broad Diversified Customer Base Strategy: Add one customer at a time Provide good value and turn it into repeat business Canada Approximately 6,000 customers USA Approximately 4,300 customers 24
Badger Daylighting Business Model Vertically integrated service company Designs and manufactures hydrovac units since 1992 Hydrovac units economic life is 10 years Provides fleet management, safety and business development support…
North America-wide Coverage 26
Competitive Advantages Safety application knowledge and daylighting expertise gained from years of experience in different applications in North America National service provider in US and Canada MSAs Fleet coverage and North…
Competitive Advantage: Fleet Size North Americas Largest Hydrovac Fleet: Badgers large fleet size lets us respond to large projects with multiple units to get work done within tight project timelines. 28
Competitive Advantage Technology/Truck Development In-house design, research/development and manufacturing Continuous improvement to enhance performance ensure operator friendly Other manufacturers sell - less motivation to enhance…
Red Deer Facility 69,200 square feet Canadian administration, regional support, service shop and manufacturing Design of trucks with professional engineering resource 30
2009 Economic Slowdown + Badger Results Market downturn due to economic, oil and natural gas activity slowdown Badger: a) cut build to 1.5 trucks per month b) re-allocated trucks to areas of opportunity c) continued regular…
Balance Sheet June 30, 2015 000s Working capital 57,290 Long-term debt 101,513 Cash and cash equivalents (5,244) Net debt 96,269 Equity 225,907 Net debt : Equity 0.43 : 1.00 Trailing 12-month Adjusted EBITDA 118,480 Net Debt:…
Cash Available for Dividends and Growth Capex YTD June 30, 2015 000s Cash flow from operating activities before non-cash working capital adjustments 46,810 Add: Proceeds on disposal of capital assets 232 Less: Required principal…
Deployment As of June 30, 2015 TOTAL UNITS 1,019 Canada 393 U.S. 626 39
Future Growth Opportunities Targets US - double size of fleet (from 2014 YE) within five years (1,176 trucks). Canada organic growth long term 10-15% per year. Actions Develop organization to grow US customer base. Enhance…
Questions and Answers 41
Sources 1 112,000 miles of distribution gas mains need to be replaced. 5.6M distribution gas services need to be replaced. As of 2011 The American Gas Foundations Gas Distribution Infrastructure: Pipeline Replacement and Upgrades, page…
Sources 4. Experts: U.S. water infrastructure in trouble By Alison Kosik, CNN January 21, 2011 43
Loading...
