Interactive Buyside Equity Research

December 26th, 2013

GEODRILL LIMITED Thesis Overview

The mining and mining service industries have been caught in a severe cyclical downturn that could be setting the stage for a phenomenal buying opportunity amongst savvy bargain hunters. Inability to access capital, heavy selling and little buying, distress among investors, fear, doubt, and uncertainty are the characteristics that mark the current minerals environment, and these characteristics are precisely the ones that allow for superior returns over the long term. Low hanging fruit is emerging and investors with a keen eye for value, patience, and a willingness to handle volatility have increasing opportunity to pick among stellar management teams and good operations. When and if the sector turns remains in question, but preparing a buy list early is essential to successful gains. This article will focus on the mining services industry, and specifically on Geodrill (GEO) as one such company that could provide patient investors with nice risk adjusted returns if the resource environment begins to turn. The article is separated into two parts. Part 1 begins with a broad overview of Geodrill as a company, discusses the economics of the drilling industry and offers suggestions of how to avoid problem companies within the industry. Part 2 focuses on GEO as an investment, breaking down financial metrics, analyzing management, detailing why this opportunity exists, and concluding with risk considerations.

Stock Rating Catalyst Category Price Target Price (12/26/13): $0.64 Upside: 50% Ticker: GEO.TO Exchange: Toronto Industry: Mining Trading Stats ($USD millions) Market Cap: $29 Enterprise Value: $32 Price / Book: 0.5x Dividend Yield: 0% EV / 2013E EBITDA: 2.8x EV / 2014E EBITDA: 3.5x
Source: Company filings, Wall Street Consensus

BUY Secular $0.96

Price Performance 52 Week range: $0.60 - $1.35 Analyst Details IB Username: APACapM Employer: Private Hedge Fund Job Title: Analyst Analyst Disclosure GEO Position Held: Yes

Interactive Buyside Equity Research

December 26th, 2013

Company Overview
Geodrill provides contract exploration and development drilling services to mining companies through a fleet of multipurpose, core, and air-core rigs throughout West Africa, primarily Ghana and Burkina Faso. The history of Geodrill began in Ghana and dates back to 1998 when CEO David Harper commenced operations with two rigs. Since that time GEO has successfully built its presence throughout West Africa, developed solid client relationships, and expanded its offerings to a mix of majors, intermediates, and juniors, and now supports a fleet of roughly 38 rigs GEOs forte is conventional style drilling, as opposed to frontier or specialized, and operations revolve around providing equipment and drilling services for exploration and development companies within the mining industry. Requiring equipment and expertise of drilling operators these companies present, on a contracted basis, projects to GEO and competitors in a bid process. Drillers compete for contracts based on various terms, such as cost, number of meters to drill, price per meter, availability and equipment type, time horizon, service expertise, and relationship. Revenues are primarily a function of three items: price per meter, number of meters drilled, and number of rigs contracted. Profit is a function of the above three items, less costs. Revenues, costs, and profits fluctuate as a result of supply and demand dynamics, and these dynamics are highly cyclical. Geodrill debuted its IPO in Dec 2010 on the Toronto Exchange during the peak of the most recent mining and exploration bull phase and has since suffered material stock declines as an industry wide slow down ensued.

Industry Overview
The drilling industry is characterized by its cyclical nature. As noted above, revenue is a function of price per meter and numbers of meters drilled, both of which are a function of demand for, and supply of, exploration and development equipment and services.

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December 26th, 2013

During the most recent cycle peak, drillers commonly spoke of increasing prices per meter, no available rigs, and urgency among mining and exploration companies. This phase of the cycle can be highly profitable, and especially so in the remote jungle regions of Africa where lack of infrastructure (which lengthens contract time relative to a similar jobs in the Western world) and low wages are common. During this phase Geodrill did not have capacity to meet demand. The company could not get rigs out fast enough and exploration groups were competing for equipment by paying climbing rates per meter, putting margins for GEO into the 50% range; other drillers were quoting similar metrics. As the cycle shifts from bullish to bearish, demand for rigs dries up while much of supply remains. This scenario is marked by competition switching from exploration and development firms willing to pay high rates on contracted equipment, to service firms underbidding each other just to get a contract locked in. Prices are driven down; number of available rigs begins to exceed demand, resulting in declines in utilization as rigs sit idle waiting for work; costs increase due to the industrys high fix ed cost component, and profits decline. This environment can be drastically different from the bullish phase, and operations can swing from wildly profitable to suffering losses. A prolonged downturn can cause a very ugly bust environment throughout the mining and mining services industry. Depressed metal prices and future uncertainty inhibits the ability for exploration and development companies to access the needed capital for projects. Without capital, projects stall, and for drillers the result is extended losses as absence of equipment and service demand prevails. Given the nature of the industry, operators and investors will be forced to participate in this boom bust cycle. As such, it is imperative to pick the businesses that will come out on top and avoid the ones that will likely lead to nonremunerated portfolio losses.

Loss Avoidance
Conventional investment wisdom argues that companies operating in cyclical industries should carry less debt, and the current mining environment is a very good example of why this is true. Throughout the sector we are witnessing covenant misses, potential equity dilutions, and possible bankruptcies. More debt will lead to more problems, and debt loaded businesses will be the first to destroy equity. Those investors most likely to avoid ugly losses will be cognizant of corporate debt levels and management teams that have shown capital structure prudence. For the risk-averse investor, this concept is imperative. As the saying goes, there are old investors and there are bold investors, but there are no old bold investors. Management teams are no different and throughout the industry we are starting seeing the effects of those bold teams who took on too much debt for growth, expecting a cycle duration that ended up half as long as anticipated.

Investment Thesis
Geodrill operates in one of the most lucrative areas of the drilling industry and is led by a results-driven, shrewd CEO who has over 20 years of direct industry experience. Management has proven their ability by continuing to conservatively grow Geodrill, maintaining a solid, although concentrated, presence, focusing on capital structure, and positioning Geodrill to come out of this downturn stronger, and with potentially a better market share position, than its competitors. As we will see later, GEO is more profitable, better structured, and trades for less than more risk laden competitors on a comparable basis. The company and management should be recognized amongst its peers for a solid, conservative stance and ability to navigate this downturn. Instead, Geodrill is being thrown aside for 50% of book value and a paltry 2.5X TTM EBITDA. Long term, the bull thesis for mining and exploration remains intact. Countries continue to urbanize at an alarming rate and supply for many resources remains in question as reserve depletion increases and ore grades decrease. Central governments continue to use excessive monetary stimulus while high level thinkers and investors repeatedly warn of associated problems, recommending metals as a hedge.

Interactive Buyside Equity Research

December 26th, 2013

Given that the minerals sector, and the cycle for development and exploration, turns positive drilling services will be required, and picking among the best operations will increase the probability of participating in handsome risk adjusted returns. As we will show, Geodrill provides a wide margin of safety coupled with an ability to potentially garner returns in the range of 500% over 5 years; savvy bargain hunters are recommended to put the company on the buy list.

Financial Breakdown
The mining and related industries currently seem to be one of the most publicly despised areas of capital allocation. Therefore Geodrill has been sold off aggressively and now sells for a compelling price based on various historical and opportunistic bases. Below are calculations of Enterprise Value, Book Value, and TTM EBITDA.

We will tie EV into Book Value and EBITDA metrics on both a current and historical basis to show readers how undervalued GEO is and the margin of safety offered.

EV / Book Value
First note that currently an investor can theoretically purchase the entire company for about 50% of book value. To put this into perspective, over the past 3 years Geodrills operating fleet produced a combined EBITDA of roughly $53 million or about $18 million per year on average. This suggests we could currently buy for $33 million the opportunity to achieve $18M EBITDA, roughly 1.8X. This is an exceptionally low value and, as we will see later, even more exceptional on a comparable basis.

EV/Book Value
1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 2010 EV/Book 1.54 2011 1.69 2012 0.91 Current 0.50 Annual Avg 1.16
Source: Analyst calculations

Quarterly Avg 1.50

Normalized 1.38

Interactive Buyside Equity Research

December 26th, 2013

The graph above has EV/Book broken down annually from 2010 to current; Annual Avg is the mean of 2010 through current; Normalized removes the current (.5) figure and looks at just the mean from 2010 to 2012; Quarterly Avg provides the quarterly mean since Q1 2011. Note that 2010 is based on pro-forma figures provided in GEOs IPO details. Based on these averages, GEO is currently undervalued between 131% and 198%.

EV / EBITDA

EV/EBITDA
5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 2010 EV/EBITDA 4.52 2011 3.74 2012 4.62 Current 2.49 Annual Avg 3.84 Source: Analyst calculations

Quarterly Avg 3.78

Normalized 4.29

The graph above has EV/EBITDA broken down annually from 2010 to current TTM; Annual Avg is the mean of 2010 through current TTM; Normalized removes current TTM (2.49) figure and looks at just the mean from 2010 to 2012; Quarterly Avg provides the quarterly mean since Q1 2011. Note that 2010 is based on pro-forma figures provided in GEOs IPO details. Here again, as with EV/Book, we see that GEO is undervalued and should be trading significantly higher, between 50% and 70%, based on historical multiples.

EBITDA & Utilization Rates

Applying our normalized EBTIDA multiple from above we analyze equity value based on utilization rates. As noted, revenues are a function of meters drilled, price per meter, and number of drills available. EBITDA and profits are a function revenue drivers and costs. The graph below looks at utilization per rig and calculates EBITDA based on the potential of GEO achieving a specified UT rate. In the top left corner GEO cited 100% utilization of operational rigs in its March 31 2012 quarter, and based on the EBITDA in that quarter, we estimate EBITDA per rig.

Interactive Buyside Equity Research

December 26th, 2013

This model allows us to calculate an estimated range of potential equity values and relate these values to current stock price. Using our normalized multiple of 4.3X we see that GEO should be trading between $1.70 and $3.15, between roughly 180% and 400% higher than current prices. Below is a variety of equity value options based on utilization rates and EBITDA multiples.

Notice the lowest, at 2.5X EBITDA and 50% UT, is still 50% higher than current stock price. GEO currently has 50% of its drills spinning, which can be confirmed on the most recent conference call. Again, the company seems incredibly undervalued.

Comparable Overview
Geodrill is grossly underrepresented in relation to competitors. Analyzing GEO in relation to the average of comparable companies we see the following. LTM gross margins and LTM EBITDA margins are 83% and 114% higher, respectively; this reinforces that the region in which GEO operates is very lucrative. The decline rate of EBITDA in these tumultuous times is 24% less than the average, indicating the company maintains its ability to compete even as a small operator and even as larger firms bid aggressively. LTM debt to EBITDA is 85% lower than the average, a testament to managements prudence and the companys ability to safely manage a downturn.

Interactive Buyside Equity Research

December 26th, 2013

EV to EBITDA and price to tangible book is 72% and 43% below the average, respectively.

Based on numerical comps above, GEO exhibits less risk at a lower price.

Catalyst Overview
Unfortunately GEO does not have identifiable catalysts on the near horizon, which is primarily why the stock is considered a watch and not a buy. Below is a starting point of catalysts for an investor to consider. Higher gold prices (currently most of GEOs work is from gold) Improved mining sector Investor awareness Shift in demand for risk capital allocation

One of the fundamental difficulties in understanding Geodrill, and the mining service industry, as an investment is being aware of its tie to a cyclical environment. Predicting the peaks and troughs of this particular environment is difficult, if not impossible. For example, the most recent downturn of late 2012 occurred within an environment that does not parallel to the downturn in 2008, where markets bounced back within a year, some equities quintupling over the same period; both situations exhibit similar aftermath but dissimilar causes and duration. Clearly second level thinking is needed to understand and invest appropriately; keep in mind that timing the bottom and top exactly is not entirely necessary to reap profits, but understanding where one is within a cycle is. There is a time to buy and a time to sell. These times dont have to be at bottom or top but for long term gains an investor needs to be aware of where he or she is. If done appropriately the investor will have adequate time to benefit.

Interactive Buyside Equity Research

December 26th, 2013

Management Overview
An overview of management can be found here. Below we will highlight just a few points. CEO David Harper David Harper is a seasoned player in the drilling industry and his story of success epitomizes early day pioneers. A motor mechanic by trade, Harper began working on rigs in his early years and moved up the ranks from mechanic, to driller, to manager. Much of Harpers previous experience comes from Stanley Mining Services. Entering Ghana around 1990, Harper served as operations, exploration, and general manager responsible for expanding drill rig fleet and developing new markets. The company went public in 1997 and was acquired by Layne Chistensen. Layne cut Harper and replaced him with an MBA. As a result, within less than a year of being removed from Laynes profile, Harper started his own shop was back in business. Harper owns roughly a 40% stake of GEO, held within various controlled trusts. CFO Greg Borsk Borsk took over as interim CFO around August 2012 during the resignation of previous CFO Ian Lacey and has since taken the position full time. Prior to his CFO role, Borsk served as a consultant to GEO for various accounting functions, and prior to his affiliation, Borsk was hired on at Byron Capital Markets in 2011 to lead the companys mergers & acquisition team. Borsk began his trade as an accountant and has served in various positions throughout various corporations. COO Terry Burling Burling has been in various roles throughout the drilling industry since 1987. He and Harper share ties to Stanley Mining, and Terry has worked with Geodrill for over 15 years. Burling has key experience in West Africa and has helped GEO become what it is today.

Opportunity
Interest in the mining and mining services sector among public investors is extremely out of favor, which provides the backbone for this opportunity. Low metal prices, lack of capital flowing into exploration, and enhanced uncertainty has created an atmosphere in which investors are not interested in placing money. GEO being an opportunity rests on market sentiment change, and thus the crux of this argument is whether sentiment will change. Numerous factors play into market and investor sentiment, some logical, some illogical. History points to cycles in which drillers experience highs and lows, and if history repeats itself, as it often does, this would suggest that sentiment will eventually change. We think it is logical to remain bullish on the long term outlook for metals and gold in particular. Below are a few examples why. 1) Ore grades are in decline, making further exploration more difficult and less plentiful. Below is a graph of ore grades of gold mines; over 50% of exploration spend is, on average, for gold.

Interactive Buyside Equity Research

December 26th, 2013

Bloomberg looked at a few of the largest market-cap mining companies and concluded that since 2003 ore grades have fallen by 24% to 78%.

2) Populations such as China and India continue to drastically urbanize and commodity demand is correlated with this trend.

Interactive Buyside Equity Research

December 26th, 2013

Above one can see correlation of income thresholds and commodity demand. Clearly China has been driving demand recently, but other developing regions will be significant drivers in the future. Africa is estimated to have 1 billion people, South America 390 million, and Latin America 580 million. As income thresholds increase, so will commodity demand and price. Additionally, central banks of numerous emerging markets are increasingly accumulating gold bullion for storage. 3) Costs continue to increase. Bloomberg suggests in the chart under ore grades that costs are rising as a result of declining grades. Lower grades require more work, which is expensive, but there is more to the problem. All over the world individuals are demanding higher wages. Governments are also demanding more of a cut and requiring mining firms to lower the level of waste and environmental destruction caused as a byproduct of operations; as such, doing business in remote regions will become more expensive. Given these dynamics, as well as many others, the expectation is that demand will increase while supply will become more difficult to obtain. Cost pressures should exacerbate the issue, and if this occurs, prices will subsequently rise. Higher prices will drive the search for resources, and drillers will be required in the process.

Risks
The support for Geodrill as an investment comes with an array of risks, some of which are outlined below. GEO has a 50% margin of safety priced in, which acts as a buffer against losses if some of these risks either continue longer than expected or become more severe.

Global Demand & Supply for Metals

Gold mining continues to be a large contributor to GEOs revenue stream. The macroeconomic environment has put recent pressures on prices for metals, in particular gold, and additional pressure is expected. Decreased prices lead to decreased mining, which leads to decreased demand for mining services. We advocate the bull case for metals long term, however acknowledge that the current outlook remains weak and further weakness could cause damage to GEOs business and fundamentals.

Interactive Buyside Equity Research

December 26th, 2013

Country
Ghana is often viewed as a paragon of political and economic reform in Africa. The country is supported by world-class mineral belts, a pro-mining, stable government, and a burgeoning middle class. The country continues to be well supported on the world corruption index and among African countries. Ghana is expected to remain stable. It has been noted that social pressures are increasing due to a decline of the countrys agricultural sector and difficulty of providing jobs to a growing workforce. Surrounding countries including Burkina Faso and Cote dIvoire are known for instability. These areas suffer from political unrest and low incomes, and rank low on the scale of ability for corporations to conduct business. Geodrill previously removed and then returned operations Cote dIvoire due to instabilities; obviously requirements to leave a country will have repercussions on revenue, but GEO seems capable of maneuvering through the stress and diversifies its risk by having much of revenue coming from Ghana.

Key Man
CEO David Harper is the single most influential figure behind Geodrill; material changes in health, motivation, and similar factors would have a negative outcome on GEOs future. This is a difficult risk to quantify. We look at it based on the fact that Harper owns 40% of GEO, and has suffered losses with other equity holders. His incentive to build GEO is high, and his actions seem congruent with this thought.

Competition
High margin, profitable operations most often attracts competition. GEO competes with both small shops and large global organizations. Smaller firms ebb and flow based on profitability, but GEO seems to have done well keeping clients and growing its fleet so we do not view small shops as overly problematic given their fickle nature. Obviously larger firms have additional resources and ability to scale via acquisitions and market share. Whether or not this will affect GEO in the future is unclear, but investors can certainly see that size is not always a benefit. Boart is in terrible condition and other large firms could easily follow suit. When thinking about competition it is important to consider that locations such as Ghana and Burkina Faso have been competitive for years. Harper successfully competed with two drills in 1998, continues to do so with his 30+ fleet, and should be able to continue this trend with additional drills. Additionally, continued presence strengthens relationships and Harper will very likely be able maintain his stance as other drillers with significantly worse balance sheets struggle and close down.

Small Company, Talent & Directors

Small company risk is a concern, and there are a few issues worthy of investor attention. First, small companies have a harder time attracting skilled talent, and often become more of an insider playing field. In our opinion GEO has faced difficulty finding and retaining talent for a few positions, including those of CFO and board of directors. CFO Greg Borsk does seem to have started his career within the accounting profession and he is a chartered account, but one can notice his weakness comprehending issues such as tax and free cash flows by listening to previous conference calls. Borsk is also getting paid a very nice employment package for such a small operation. Nonetheless he does seem to be better understanding operations since his initiation and his participation on more recent calls exemplifies this. Directors John Bingham and Victoria Prentice require investor skepticism. According to his bio, John Bingham has been in the financial services industry for quite some time. He also serves as director for a number of companies. In our opinion it seems that Johns skill-set is fitted to setting up off-shore trusts and accounts, not necessarily as Chairman of Geodrill, which begs the question of whether Bingham is just filling the seat so Harper can get capital and grow? Obviously Harper controls the show via ownership percentage and operational prowess so what value Bingham adds as Chairman remains in question. Victoria Prentice is, in our opinion, GEOs most mysterious director; her ties to Mr. Bingham are also quite mysterious. Its troublesome to have found very little on Ms. Prentice. Victoria has in the past served director positions, but certainly not for companies in which we would place capital. A quick Google search of Victoria Prentice + Isle of Man (also Victoria Kay Prentice) brings an array of little companies on which Ms. Prentice has served.

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December 26th, 2013

Obviously not all companies get the luxury of having characters such as Warren Buffett or David Einhorn on the board, and small companies especially have trouble picking among well-known talent. That said, it would be humbling to see GEO unveil the mysterious qualities of these directors and provide more explanation of how/why Harper picked these candidates. To be fair, GEO does have additional directors who seem to quite qualified, including Colin Jones of Dundee Resources, Ron Sellwood who previously was CFO of Boart, and Daniel Im who is CFO of Adriana Resources.

Customer Concentration
Customer concentration should not be taken lightly and GEO unfortunately suffers for high concentration, especially in the current environment. Fewer than 10 customers make up roughly all of current revenues. Further research on these clients is warranted, and is in process. These companies are subject to the same pressures as other gold miners, so having an understanding of balance sheets and management teams is important.

Market Cap, Float & Volume

This opportunity is for smaller investors only as market capitalization is less than $50 million, float is about 30% of all shares, and volume is very thin. Putting sizable money to work, from both an entry and exit perspective, will be difficult. Below are current equity holders:

Notice that this group collectively owns 70% of the entire organization, leaving roughly 30% for retail investors. This group has held through the peak and trough, suggesting that share price is not adequately represented; less than 30% of the stock is controlling 100% of current public price, which can quickly exacerbate price change and likely explains why the company has sold off much more than competitors.

Unknown and Concluding Thoughts on Risk

Taking a page from Howard Marks theory of thought, the likelihood of being right is quite small in relation to being wrong given the number of other (wrong) outcomes that could occur. As investors we should position ourselves to be rewarded if we are right, but not suffer painfully if we are wrong. The risk of capital loss due to unquantifiable factors not probabilistically weighted is often high and is what we want to avoid. Below are some thoughts for GEO investors. A very good way to avoid/ lessen the pain of what we dont know is to have a good approximation of intrinsic value and buy when there is a significant margin of safety. With GEO we have approximated intrinsic value and given ourselves a 50% cushion. Investors should also consider the following. Size Matters: Position size will be difficult to enter and exit. Thus, an investment in GEO should be positioned and controlled correctly. Diversity Matters: We think GEO should be part of the buy list, but not the only company on the list. Unfortunately there arent too many good drillers from which to pick, so GEO will need to be grouped in a portfolio accordingly. Margin of Safety: Book value does seem to approximate fair value for many of the companys rigs we have looked at, especially newer rigs. Market value is a better approximation of safety than book, and we think investors have

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December 26th, 2013

sufficient downside safety considering the small level of debt. Rigs often last between 5 and 7 years before a major rebuild is required; as such margin of safety is a dynamic metric. In profitable times fair value will be higher than in unprofitable times, but less profitable work will require the same CAPEX; usage lowers rig value, deteriorating margin of safety. Watch the Cycle: Be right, sit tight is an adage used by some very respected investors. We dont follow this rule. Instead we recommend thinking right, positioning accordingly, updating and repositioning. Consensus among investors, management, consultants, and a number of other groups on the most recent bull cycle was 5 years. They were wrong. Following conventional wisdom would have caused painful losses. Many of these same groups speak of bear cycles that last 2-3 years. Dont listen. Think right, update, and reposition. If the cycle looks to be turning, turn with it. Investors arent punished for doing nothing, but they can be severely hurt for swinging at the wrong time.

Conclusion
Geodrill is a company to keep an eye on. We have used numerous metrics to prove how undervalued the business is currently and the level of profit potential it offers to investors. Additionally, we have shown that the company exhibits less risk on a comparable basis. Arguably the stock currently has a sizable margin of safety built in, should be trading for at least 50% higher, and in the longer term has potential to be 5X gainer. The business is caught in a massive, industry wide down turn. Investors want little to do with the mining and mining services industries, which is the reason such opportunity exists, but further losses could occur before things turn. Unfortunately, this opportunity could present itself for quite some time if the exploration environment persists in its current state, and judging the cycle is incredibly complex. Investors interested in this space should focus on the conservative management teams who keep debt low and remain patient. Geodrills team fits this mold well and management has proven their focus on long term success over short term growt h. The bull argument for metals, gold especially, remains strong despite current price declines. Gold demand in China remains robust and the country is expected to become the number one importer of the metal within the next few years. India, even with its capital controls in place, struggles to keep gold imports at bay. Overall, physical demand remains healthy; a rising middle class and increased participation in bullion holdings throughout emerging countries (individual, institution, and central bank) should help fuel demand long term, and prices should follow. It has been estimated that this year private groups are raising record levels to invest in the resource sector. The so called smart money is moving in as others are moving out, a testament to the belief in longer term prospects among both the PE shops and the high net worth investors and institutions these investment vehicles musts raise money from. Africa remains one of the highest margin areas for drilling services. If the market cycle turns to bullish state, as many seem to be estimating, Geodrill will benefit immensely. Very handsome profits for investors are possible and thus, Geodrill is certainly a company to put on the buy list.

Interactive Buyside Equity Research

December 26th, 2013

Financial Overview
($ in millio ns, except per share data)

FY end Dec 31: Operational Stats Drilling Revenues Rigs Financial Stats Sum m ary Incom e Statem ent Drilling Revenues % Growth Total Revenue % Growth COGS % of Sales Gross Profit Gross Margin % Operating Income % of Sales EPS EPS Growth % Sum m ary Cash Flow EBITDA EBITDA M argin Cash Interest Cash Taxes Capital Expenditures Other Free Cash Flow as % Sales

2010

2011

2012

LTM

45.1 18

70.2 26

65.6 33

46.5 34

45.1

70.2 55.7% 70.2 55.7% 32.1 45.7% 38.1 54.3% 18.5 26.4% 0.28 75.0%

65.6 (6.6%) 65.6 (6.6%) 39.7 60.5% 25.9 39.5% 5.6 8.5%

$ 46.5 (36.7%) $ 46.5 (36.7%) $ 26.9 57.8% 19.6 42.2% 2.8 6.0%

45.1

22.7 50.3% 22.4 49.7% 10.2 22.6% 0.16

$ 0.08 (71.4%)

$ 0.04 (48.0%)

14 $ 25 $ 14 31.7% 35.8% 20.6% (0) (1) 1 3 3 4 18 13 23 -

12 26.7% 2 7 5 -

$ (6) $ 9 (12.4%) 13.4%

$ (14) $ (2) (20.7%) (3.3%)

Sum m ary Balance Sheet Cash & Equivalents Total Debt Net Debt / EBITDA

$ $

8.2 -0.3x

$ $

7.6 12.2 0.3x

$ $

4.4 7.5 0.3x