Civil & Environmental Consultants, Inc.

Transcription

1 Civil & Environmental Consultants, Inc. 1

2 Agenda Introduction Safety 2012 Audited Financial Results CEC Stock 2013 Period 3 Financial Summary Business Update Questions Appendix 2

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4 Same number of incidents in 2012 as in 2011 OSHA Incident Rate Lower 1.46 vs 2.08 EMR Lower 0.92 vs 0.98 Vehicle Accidents Up 300% 4

5 Accident and incident free - All employees arrive, work and return home safely OSHA Incident Rate <1.0 Audit all office locations field and office activities Complete basic safety training for all employees 5

6 Full time support for safety activities at corporate level Improve and increase the consistency of safety communication Health and Safety Committee includes a representative from each office 6

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8 Safe Harbor Statement Note with respect to Forward-Looking Statements: This presentation, Financial Review and Operations Review contains forward-looking statements concerning our future operations and performance. Forward-looking statements are subject to market, operating and economic risks and uncertainties that may cause our actual results in future periods to be materially different from any future performance suggested herein. Factors that may cause such differences include, many risk factors such as increased competition; increased costs; changes in general market conditions; changes in industry trends; changes in the regulatory environment; changes in our commercial customer relationships and/or contract cancelations; changes in anticipated levels of government spending on infrastructure and environmental matters; changes in banking relationships; changes in management; and divestitures and acquisitions. Such forward-looking statements are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of

9 Achieved highest amount of Net Revenue $61.5M and Pre-Distribution Margin $7.9M, in the Company s twentythree year history Bonuses, 401-k match & discretionary 401-k funding of $4.8M is a 45% increase from 2011 Net Revenue increase > 25% Bank Debt decreased by $1.2M during the year Bank debt was $0 for over 60 days Stock notes - Paid additional $0.6M that were scheduled for 2013 and

10 $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 $63.7 $18.7 $45.0 $48.9 Revenue ($ Millions) $51.1 $10.7 $11.4 $38.2 $39.7 CAGR = 7.6% $63.1 $15.1 $48.0 $79.8 $19.4 $60.4 $89.3 $16.2 $ Budget Professional Fees Purchased Services

11 2012 Top 10 Clients $ Millions Change Republic Services $ % Chesapeake $ % MarkWest $ % EQT $ % CONSOL/CNX $ % FirstEnergy $ % TDOT $2.3-5% ArcelorMittal $ % Ameren $ Waste Mgmt $ %

12 2012 Gross Revenue Components: $79.8M 401K, Disc & Bonus $4.8 6% Profit Before Taxes $3.9 5% Indirect Expenses $ % Payroll & Benefits $ % Purchased Services $ % ($Millions)

13 Millions $12 Pre Distribution Margin $ $10 $11.2 $8 $7.9 $6 $6.0 $4 $2 $- $1.5 $0.9 $ Budget

14 3.50 Net Effective Multiplier (NEM) Budget

15 98 Days Sales Outstanding (DSO): 2012 One Day = $219, Actual Budget

16 Thousands Interest Expense $1,000 $995 $800 $600 $459 $400 $200 $360 $272 $132 $190 $0 PNC Bank Debt Shareholder Notes Other

17 Millions Equity Shares Outstanding 12/31/12: 946,861 $12 $10 $8 $6 $4 $2 $ Budget Actual Budget

18 Civil & Environmental Consultants, Inc Audited Financial Statements available on CyberC at Company Corporate Home Page Document & Presentation Archive 2012 Audited Financial Results and April 2013 Annual Report 18

19 19

20 $45 $40 $35 $30 $25 $20 $15 $10 $5 $

21 Recent History: 2009 Price: $20.45 per share (10% decrease) 2010 Price: $18.82 per share (8% decrease) 2011 Price: $22.13 per share (18% increase) 2012 Price: $29.28 per share (32% increase) 2013 Price: $38.41 per share (31% increase) Stock Transfer Restriction Agreement (STRA) Stipulated Value Three Factors Net Revenue Past Three Years Pre Distribution Margin (PDM) Past Three Years Book Value (Adjusted) Two Valuation Firms Consulted 21

22 # of Shares in thousands 1, Founders Non-Founders 22

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24 $16.0M $2.9 $0.2 $3.4 $0.2 $19.4M $12.9 $ Professional Fees Mark-up Direct Project Costs 24

25 $2,000 $1,940 (12.1%) $1,900 $1,800 $1,801 (13.8%) $1,700 $1,600 $1,

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28 Final Thoughts on 2012 Financial Accomplishments You all contributed to what can be considered CEC s best year ever. Greater than 25% Net Revenue and Gross Revenue Growth over PDM $ of $7.9 million, which was 32% better than Benefits to employees of $4.8 million. Significant stock price increase. 28

29 Final Thoughts on 2012 Financial Accomplishments We were on trajectory in 2012 to exceed 15% PDM (v. 12.9% actual). Leadership concluded mid-year to make investments to strengthen CEC for 2012 and beyond. Hires made to help with corporate and ICG leadership and to expand offices. Those hires reduced our profitability over the last 5 periods of

30 Final Thoughts on 2012 Non-Financial Accomplishments Opened new offices in Boston, MA and Bridgeport, WV. Added 105 net new full-time personnel. Implemented business plans for 3 ICGs and developed plans for 3 other ICGs. Added significant capabilities in many ICGs/Practices. Hired new leads for Public Sector and Mining ICGs. 30

31 2013 Start and Focus Employee count increased. 572 at end of Period 4. Regular full-time employees now 541. Three month estimates indicate a continuation of growth; however, at a slower pace than last year which is a good thing as the 20% plus grow during the past two years needs managed to improve quality controls and generally integrate new staff and obtain better utilization. No material litigation. We have healthy clients who are busy doing things. 31

32 Prepare and perform all work safely care for yourself and your co-workers. Recruit new employees we need new, good people. Welcome and assist new employees. Take responsibility for your professional development. Let your supervisor know what professional development you believe will help you do your current and future work better. Focus on our clients needs we are in business to be of service to them. 32

33 Civil & Environmental Consultants, Inc. Questions?? CEC 33

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35 (audited) 2012 Gross Revenue $79,771 Professional Fee Revenue $60,366 Net Revenue $61,547 Direct Payroll $19,703 Indirect Payroll $15,076 Indirect Expenses $22,994 Net Effective Multiplier 3.06 Pre Distribution Dollars $7,916 Write Off $ $1,544 Write Off % 1.9% CEC 35

36 (unaudited) 12/31/12 Current Assets Cash $764 Accounts Receivable, net 13,591 Work in Progress 6,762 Other Current Assets 1,330 Total Current Assets 22,447 Fixed Assets 6,117 Other Assets 975 Total Assets $29,539 CEC 36

37 (audited) 12/31/12 Current Liabilities Accounts Payable $4,764 Deferred Revenue 1,374 Other Current Liabilities 2,443 Deferred Income Taxes 6,906 Current Portion of Long-Term Debt 782 Total Current Liabilities 16,269 Line of Credit Borrowing 2,134 Long-Term Debt 2,610 Shareholders Equity 8,526 Total Liabilities & Shareholders Equity $29,539 CEC 37