World Leading Attractions Company: Expanding...
Transcript of World Leading Attractions Company: Expanding...
World Leading Attractions Company: Expanding Opportunities Annual Shareholder Meeting September 12, 2016
This presenta,on contains forward-looking statements, within the meaning of applicable securi,es legisla,on, concerning Empire's business and affairs. In certain cases, forward-looking statements can be iden,fied by the use of words such as "plans", "expects" or "does not expect", "budget", "scheduled", "es,mates", "forecasts", "intends", "an,cipates" or varia,ons of such words and phrases or state that certain ac,ons, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". These forward looking statements are based on current expecta,ons, and are naturally subject to uncertainty and changes in circumstances that may cause actual results to differ materially. Readers are cau,oned not to place undue reliance on such forward-looking statements. Forward-looking informa,on is provided as of the date of this presenta,on, and Empire assumes no obliga,on to update or revise them to reflect new events or circumstances, except as may be required under applicable securi,es laws. Neither the TSX Venture Exchange nor its Regula,on Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this presenta,on.
ReaderAdvisory
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Ø Con$nuedtransforma$onintoaMedia-BasedA4rac$onscompany
Ø Empire’stwobusinesssegmentshavelong,successfultrackrecordsinengineeringandindustrialservices:² Media-BasedA4rac$ons(since2000)² SteelFabrica$on(since1926)
Ø Award-winningcompaniesrecognizedasthe‘world’sbest’intwonichemarketssuchasmedia-baseda4rac$ons(DynamicA4rac$ons)andtelescopes(DynamicStructures)
Ø Excep$onal,longtermgrowthexpectedinthemedia-baseda4rac$ons
market
Ø Publicsince2006onTSXV.
WhoWeAre
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Ø Focusedasaleaderintherapidlygrowing,globala4rac$onsindustry,byexpandingrevenues,margins,andprofitabilityinitsMedia-BasedA4rac$onssegment
Ø Recentlyspun-outitsHydrovacbusiness,sharpeningtheCompany’sfocusonMedia-BasedA4rac$onsanditsabilitytodesignandbuild,specialized,complexequipment
Ø Significantpoten$alforstockpriceapprecia$onthroughmul$pleexpansionandthroughunlockinghiddenvaluethroughstrategicini$a$ves
Ø Con$nuetohavesignificantstrategicinvestmentsinDynamicStructuresanddevelopmentprogramsinthisgloballeader
MarketGrowth&FinancialPerformance
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Ø StockPrice:52weekhigh/low…………………………….…$0.49/$0.24Ø NumberofShares…………………………………………….……65millionØ AverageDailyTradingVolume(lastthreemonths)..52,208(adjustedforconsolida$on)Ø MarketCap(September9,2016)…………………………..$26million($0.40/share) Ø AnnualRevenues(TTMJune30,2016)………………….$130millionØ AnnualEBITDA(TTMJune30,2016)……………………..$7.5millionØ LongTermFundedDebt(June30,2016)……………….$5.0million
CapitalMarketsInformaPon
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FinancialHighlights
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Q12016Unrealizedgainonderiva$vefinancialinstrumentsof$5,279Q22016GainonsaleofTornadoof$2,868
SegmentedFinancialInformaPon
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LearningCurveEffectMedia-BasedAVracPons“Normalized”removes1stFlyingTheatre&1stSFXCoasterprojectsandothernon-recurringitems
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12 months ended December 31 Actual Normalized Variance($000) 2014 2014 2014
Segment Revenues 67,754 58,434 (9,320) Adjusted EBITDA 6,350 7,403 1,053 Adjusted EBITDA % 9.4% 12.7% 3.3%
12 months ended December 31 Actual Normalized Variance($000) 2015 2015 2015
Segement Revenues 102,961 93,739 (9,222) Adjusted EBITDA 11,365 12,462 1,097 Adjusted EBITDA % 11.0% 13.3% 2.3%
TransformaPonofBusinessMix5YearComparisonofSegmentsbyRevenue
9TotalRevenue=$131.2millionTotalRevenue=$50.0million
2010
2015
Media-BasedAVracPons
Media-BasedAVracPonsAll
OtherCon$nuingOpera$ons
AllOtherCon$nuingOpera$ons
Media-BasedAVracPons
DynamicAVracPons
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Ø Turn-key,precisionmanufacturerandintegratorofpremium,media-baseda4rac$ons.
Ø ProprietaryproductsincludeiconicDarkRides(i.e.Robo$ctrackedvehiclesandtracklessvehiclea4rac$onsandSpecialEffectsIndoorRollerCoasters)andarangeofTheatreproductsandselfpropelled,trackedracevehicles.
Ø FreshlylaunchedUnlimitedServicesTMheadquarteredinourOrlandooffice,
broadensourofferingbeyondtheridesystemandintotheming,story,mediaproduc$on,andotherservicesrequiredforacompletea4rac$on.Thisincreasesourshareofthecustomer’soverallbudgetforeacha4rac$on.
Ø Increasingaker-salesserviceofferingglobally
Ø Empire’sbiggestandmostprofitabledivision,withacurrentcontractbacklogof$107million.
Ø Pipelineofcontractpossibili$esover$500million.
UnlimitedAVracPons’ServicesarebeingnoPced
SpacePark
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Ø DynamicA4rac$onsrecentlysignedastrategiccoopera$onagreementMOUwithAltair(Shanghai)SpaceTechnologyCompany.
Ø Iftheprojectmovesforward,Dynamicwilldesign,develop,co-ownandoperateaspacethemeparkinHangzhou,China.
Ø Dynamic’sthemeparkplanningandengineeringteamswillbeinvolvedinthemasterplanandprovisionofthesixiconica4rac$onsinSpacePark.
Ø TheTransac$onissubjecttoseveralkeyapprovalsandlandbiddingprocess.
Ø Empire’splantoexpandbeyondridesystemscon$nuestoresonateinthea4rac$onsmarketplace
Media-BasedAVracPons
CatalystsforGrowth
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Ø ExternalForces² “Gotosupplier”oficonica4rac$onstoUniversalStudios,Disneyandseveralofthe
topglobalthemeparkowners,whoareallundertakingsignificantthemeparkcapitalexpansionprogramsworldwide
² Themeparkconstruc$onisgrowingfast,par$cularlyinAsiaandMiddleEastandthereisagrowingdemandfordifferen$ated,proprietary,integrated,iconica4rac$ons
² StrongUSdollarposi$velyimpactsprofitmarginsbecausethesecontractsaresoldpredominantlyinUSdollars
Ø InternalForces² Wehaveunrivalledtechnicalandcrea$veknowledgetodelivericonicmediabased
a4rac$onsglobally² NewlylaunchedUnlimitedServicesTM,willgenerateanewrevenuestream² Increasingrecurringrevenuethroughaker-sales,partsandservice² “Learningcurve”ofhighercostsforfirstgenera$oniconicproductswillsee
decreasedcostsonsecondgenera$onsalesandproduc$on
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Ø Hasdesignedandsuccessfullybuiltoverhalfoftheworld’slargestobservatory
telescopes.Ø NamedbytheGovernmentofCanadaasthecompanytobuildtheenclosurefor
theThirtyMeterTelescope(TMT),aspartofCanada’scontribu$ontothisinterna$onalmegaproject.² TMTwillbetheworld’slargestop$caltelescope² Plannedtobedesigned,manufacturedandinstalledoverthenextfewyears² Consor$umofna$onalgovernmentsanduniversi$es² Awarded$10millionDetailedDesigncontractinAugust2016² Fabrica$oncontract,expectedin2017,toapproximate$60million² Installa$oncontractwillbedeterminedbaseduponfinalsiteselec$on
Ø Con$nuingtodevelopproprietary,mirror-polishingtechnologywithpoten$altoradicallyreshapetheobservatorytelescopeindustry.
DynamicStructures
Ø Steelfabrica$onwasthelaunchingpadwhereEmpiregotitsstart.Thissegmenthasstrategicvaluebecauseofthenaturalconnec$ontoEmpire’sa4rac$onbusinessasakeysupplierofsteelintensivecomponents.
Ø Con$nuetointegratethehighquality,highcapacityfabrica$on
capabili$esofitsChinesefabrica$onopera$ontoacceleratecosteffec$vegrowthofourproprietary,media-baseda4rac$onproducts.
Ø Weareinpursuitofunlockinghiddenvalueinoursteelfabrica$onbusinessbyintegra$ngourNorthAmericanexper$sewithourincreasedfabricatedsteelsupplycapabili$esinChinatherebycrea$ngagloballycompe$$ve,fabricatedsteelsupplychain.
SteelFabricaPonServices
EmpireIronWorks
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CanadianContractorComparablesinBlueAllEmpireIndustriesvaluaPonmulPplescompareveryfavorably
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WhyInvestinEmpire?
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Ø Empire’sbusinessisfocusedoncapitalizingontheglobalphenomenonofaccelera$nggrowthinleisureandentertainmentcapitalspending.
Ø Empireisthe‘go-to’supplierformanyoftheworld’sleadingentertainmentcompanieswhichseekatechnologically-advanced,differen$ateda4rac$onproductline.
Ø Movingbeyondasupplierofridesystemsintoasupplierofturnkeya4rac$ons.Seekingandfindingopportuni$esinhighvalueadded,recurringrevenueservicessuchasparkplanning,managementandownership.
Ø GroundFloorOpportunity:Currentlowsharepricevalua$onrela$vetocomparablepubliccompanyvalua$onsprovidesopportunityforgainsasthemarketrealizesEmpire’spoten$al.
Ø Empirehasagoodbalancesheetandthefinancialresourcestocapitalizeonitsexcep$onalpipelineofopportuni$es.
Thank you