Services Jeffrey S. Thiede President & CEO MDU Construction Services Group, Inc. Building a Strong America 51
Construction Services Building a Strong America Outside Inside Industrial Equipment & Power lines Electrical Refinery turnaround supply Substations Mechanical Electrical Rental & sales Fire suppression Excavation & underground…
Outside Project Success Building a Strong America Capital Electric Line Builders Building on past success Secured Transource project Expanding customer base Lone Mountain Pursuing additional market opportunities Contract…
Inside Project Success Building a Strong America Mission critical Current: Northwest, Las Vegas & Midwest Solar & renewables Government facilities U.S. Department of Defense top contractor Mission Critical Healthcare…
Industrial Project Success Building a Strong America Petrochemical Turnarounds Capital projects Maintenance Power generation & distribution Automotive Instrumentation & controls Services 55
Equipment Success Building a Strong America Wagner-Smith Equipment Completed new Burleson facility Additional manufacturing capacity Services 56
Safety First 3.36 2.74 2.16 2.17 1.85 1.23 1.27 1.33 0.92 0.55 0.52 0.33 TRIR LTIR DART Industry 2013 2014 6/30/2015 Building a Strong America Services 58
Financial Success Building a Strong America Operating company Recent wins Capital Electric Construction Governmental facility Oregon Electric Group Various mission critical projects Bombard Electric Commercial & residential solar…
Employee Satisfaction Building a Strong America Strengthening our bench Continuing training efforts Employee survey 91 percent overall employee satisfaction rating 95 percent are proud to work here Employee Pride Services…
Customer Satisfaction Building a Strong America Local brands, national strength Added national market development position Leveraging strong performance and relationships Customer feedback Best in class Safety Services 62
Outlook Strong safety performance Growing national presence Seattle Organic growth & acquisitions Increase capacity equipment rental & sales Rebuilding successful backlog Building a Strong America Services 63
Services Building a Strong America 64
Materials & Contracting David C. Barney President & CEO Knife River Corporation Building a Strong America 65
Construction Materials Industry Leader Top 10 U.S. aggregate producer Increasingly valuable aggregate reserves totaling 1.1B tons 1.8B - 2.0B in annual revenue projected for 2015 Safety leader: Recordable Incident Rate 40% lower…
Vertically Integrated Building a Strong America Materials & Contracting Our 1.1 billion tons of aggregates are the foundation of our business. 67
Our Advantages Building a Strong America Knife River Strengths Safety, Quality, Environmental leader Vertical integration Share resources between regions Materials & Contracting Geographic diversity Good reputation 68
2015 Highlights Best first half since 2007 91% earnings improvement in Q2 Record backlog of 833 million* Located in growth markets *As of 6/30/15 Building a Strong America Materials & Contracting 69
Strong Markets Operations in 10 of the Top 16 Markets Rank State Rank State Ranked by Business 1 ND 9 NY Insider in 7 categories: 2 CO 10 OR GDP per capita 3 DC 11 CA Unemployment rate 4 TX 12 FL Avg. weekly wages 5 WA 13 WY 6 MA…
Earnings Growth 90.0 Solid Returns 80.0 Three consecutive 70.0 years of strong In Millions 60.0 growth 50.0 Improving operations 40.0 79.9 in each region 30.0 59.9 Optimistic for good 50.9 20.0 finish to 2015 32.4 10.0…
Volume Improvements Year to Date 6/30/14 6/30/15 % Change Aggregate (tons) 9.8M 10.5M 7.2% Asphalt (tons) 1.7M 2.0M 18.2% Ready-mix (CY) 1.4M 1.6M 11.4% Construction 273.4M 320.9M 17.4% Revenue Building a Strong…
Record Backlog 833 Million Backlog* is Largest in Company History 9.0% increase year-over-year 91% public work, 9% private Optimistic for strong 2016 *As of 6/30/15 Building a Strong America Materials & Contracting 73
Economic Indicators Year-over-year data June 2014 June 2015 Housing Starts 8.8% 29.9% Building Permits 8.6% 29.4% Total Construction Spending 5.5% 12.0% Pvt. Construction Spending 9.2% 13.7% Pub. Construction Spending (2.9%)…
Good News on Transportation Funding A long-term federal funding solution will have a major impact. Six-year deal is on the table. Seven Knife River states have raised revenue dedicated for transportation funding (ID, IA, NE, SD,…
South Region TXDOT letting budget for 2015 and 2016 is 7B Prop 1 in Texas provides additional 1.7B to State Highway Fund in 2015 Recently secured 27M highway project in Waco Large LNG projects in Beaumont area At a glance…
North Central Region ND MN SD ND approved 1.1B to fund infrastructure improvements, on top of 2.2B DOT road budget IA NE Working on two 24M highway jobs in the Bakken Iowa passed 10-cent gas tax increase (215M/year) SD and NE…
Pacific Region AK CA 5.3B light rail system under construction through 2018 in Hawaii Hawaiian ready-mix market looking up as residential HI construction grows Northern California markets are improving, with At a glance…
Intermountain Region Montana and Idaho are experiencing a strong housing recovery 28M project at Mountain Home AFB in Idaho Idaho passed 7-cent gas tax increase (94M/year) Wyoming passed 10-cent gas tax increase (70M/year) At a…
Northwest Region WA Washington passed 16-year, 16B tax and fee increase Oregon railroad work growing OR Subdivisions and tech industry in Central Oregon 5B LNG project in Coos Bay is moving forward At a glance Employees: 945…
Summary/Outlook Markets continue to strengthen revenue guidance of 1.8B to 2.0B Optimistic that well see continued housing recovery and growth Margin and volume increases on materials Federal highway funding will improve an already…
Materials & Contracting Building a Strong America 82
RESOURCES Group, Inc . Building a Strong America Doran N. Schwartz Vice President & Chief Financial Officer 83
Consolidated Results YTD June 30 Building a Strong America Adjusted Earnings Adjusted EPS RESOURCES (millions) 69.6 0.36 56.5 0.29 2014 2015 2014 2015 Reconciliation 2014 2015 GAAP earnings 110.4 (535.9) Exploration and…
Electric & Natural Gas Utilities Higher operation and maintenance expense June 30 YTD Earnings Largely higher contract services and payroll (millions) expenses including labor costs related to storm repairs and planned outage at Big…
Pipeline & Energy Services June 30 YTD Adjusted Earnings (millions) Higher operating loss related to 10.1 Dakota Prairie refinery Mainly due to adverse market 7.8 conditions Lower storage service earnings, largely due to lower…
Construction Materials & Services Highest first half of the year earnings June 30 YTD Adjusted Earnings (millions) since 2007 for materials group Increased volumes and margins across all 20.2 17.9 product lines at materials group…
Fidelity Exploration & Production Marketing process continues Assuming a sale transaction by year end 2015 Continuing focus on maximizing value of company and lowering cost structure General and administrative costs are 25% lower…
Record Capital Program Construction 3.8 B Pipeline Utility Increase Cap Ex 1.9 B 98% over next 5 years 2010-2014 2015-2019 Building a Strong America PIPELINE 89
Strong Financial Position Building a Strong America 2014 RESOURCES 61% Equity / 39% Debt 6,000 5,000 4,000 Debt/Equity (Millions) 3,000 2,000 1,000 0 12/31/2010 12/31/2011 12/31/2012 12/31/2013 12/31/2014…
Dividend Growth 77 consecutive years of 0.73 quarterly dividend payments Dividend increased November 2014, marking 24 consecutive 0.48 years of increases Committed to paying a competitive dividend 2004 2005 2006 2007 2008 2009…
RESOURCES Group, Inc . Building a Strong America Dave Goodin President & Chief Executive Officer 92
Outlook Building a Strong America Positioned for long-term growth Utility record approx. 1.7 billion 5-year capital program through 2019 driven by customer and load growth RESOURCES Expect to grow rate base by 1.0 billion, 11%…
RESOURCES Group, Inc . Building a Strong America 94
Loading...
