Constellis Overview Second Quarter Constellis Proprietary Information

Transcription

1 Constellis Overview Second Quarter 2017 Constellis Proprietary Information

2 Disclaimer The following discussion and analysis of the Company s financial condition and results of operations contains forward-looking statements that reflect our future plans, estimates and expected performance and do not constitute guarantees of future performance. These forward-looking statements involve known and unknown risks, uncertainties, changes in circumstances, assumptions and other factors, many of which are beyond our control. We caution you that our assumptions, expectations, projections, intentions or beliefs about future events may, and often do, vary from actual results and the differences can be material. No representations are or will be made by us as to the accuracy, reliability, reasonableness or completeness of such forward-looking statements. All forward looking statements are based on information available to us on this date, and we assume no obligation, and expressly disclaim any obligation, to update or revise any information contained herein. All statements other than statements of historical fact, including statements regarding our future results of operations and financial position, business strategy and plans, use of the net proceeds of the credit facilities, and our objectives for future operations and acquisitions, should be considered forward-looking statements. In addition, the following discussion includes references to non-gaap financial measures as defined under the rules of the US Securities and Exchange Commission, including EBITDA and Adjusted EBITDA. EBITDA, Adjusted EBITDA and other non-gaap measures, while providing useful information, should not be considered in isolation or as a substitute for the GAAP equivalent. Constellis Proprietary Information 2

3 Presenters Constellis Proprietary Information 3

4 Constellis at a Glance Leading provider of risk management, humanitarian, social intelligence, training and operational support services to government and commercial clients throughout the world 20,000 employees (15,500 cleared) Operating in over 45+ countries $1.7B of revenue Note: Statistics are pro forma for all recent acquisitions, including Omniplex. Constellis Proprietary Information 4

5 Unparalleled Capabilities Risk Management & Crisis Response Investigative Services Crisis Management Risk & Security Consulting Security Systems & Planning Safety Management Due Diligence Contingency Operations Security Fixed Site & Mobile Protection Critical Infrastructure Aviation & Maritime Security Security Assessments & Planning Technical Systems Information Security UAS System Operations K-9 Detection Humanitarian Mine Action & Ordnance Clearance Contingency Operations Capacity Building & Mentoring Disaster Relief & Planning Rule of Law and Cultural Sensitivity Programs Training Curriculum Development Tactical Training K-9 Training Unmanned Aircraft Systems Exercise Planning & Support Simulation & Scenario-based Client-based, Customized Training Technology Tracking & Monitoring C4I System Integration Social Intelligence Solutions Biometrics Collection & Analytics Unmanned Aircraft Systems Information Security Technical Systems Logistics & Support Services Life & Logistics Support Operations & Maintenance Engineering, Procurement & Construction Mine Action & Ordnance Clearance Capacity Building & Mentoring Fire Protection & Medical Services Constellis Proprietary Information 5

6 Diverse Blue-Chip Customer Base Enduring Relationships Complemented by a Diverse and Growing Customer Base U.S. Government Agencies Foreign Governments and International NGOs Afghanistan Egypt Iraq Japan United Nations Commercial Customers Constellis delivers its services to a broad set of customers across 400+ contracts Note: Representative customers. Constellis Proprietary Information 6

7 Foundation of Successful Acquisitions Track Record of Value-Enhancing Acquisitions and Successful Integrations Acquisition Date Highlights 2010 Formed foundation of Constellis with an emphasis on compliance Management initiated process of professionalizing industry and instituting world-class compliance programs 2012 Expanded Department of State presence Combination of two premier government security providers Realized substantial synergies Edinburgh International was a subsidiary of Triple Canopy at the time of acquisition Continued expansion into commercial markets through purchase of the largest and most respected provider in the sector Significant synergies realized, with further optimization identified 2017 Further diversification of revenue profile by increasing domestic customer revenue Added Department of Energy as a key customer (1) Acquisition resulted in the largest K-9 provider in the industry Secured difficult-to-source specialized capabilities for key strategic pursuits Increased scale and strengthened service offering for domestic security contracts Expanded service capabilities into the background investigation market Added strong relationships with the intelligence community and federal civil customers Constellis has efficiently integrated acquisitions to maximize revenue and cost synergies, and has realized meaningful cross-selling opportunities (1) Expected to close mid-august Constellis Proprietary Information 7

8 Key Constellis Advantages Constellis has the leading market share in its core markets, with significant competitive advantages: Largest, most diversified provider in our core markets Vertical integration of training and security services with a one-of-a-kind 3,600 acre training facility Global footprint with operations in 45+ foreign nations Unparalleled track record of performance and safety Best-in-class compliance and training practices Leading financial profile Constellis Proprietary Information 8

9 Diversified Customer Base With Significant Revenue Diversification Strong Contract Profiles Commercial (2) 14% Specialty (1) 7% 22% USG Iraq / Afghanistan ~80% Prime Contracts Classified 12% 34% Government - Domestic 11% USG International Other ~75% Fixed Price Contracts Pro forma for all recent acquisition, including Omniplex. (1) Specialty includes training, Unmanned Aerial Systems and K-9 services. (2) Includes a small amount of Foreign / Other Government revenue. Constellis Proprietary Information 9

10 Low Contract Concentration % of Q Revenue by Contract (1) Top 10 Contracts by Revenue Contract % Customer Recompete Tenure 7.7% 7.7% 7.7% DoS Nov years 7.7% DoS Jan years Other 54.0% $1.7B Revenue 6.9% 6.1% 3.6% 6.9% DoD Dec years 6.1% DoE Sep years 3.6% Classified Jan years 3.6% DoS Apr years 3.6% 3.0% 3.0% Classified Feb years 3.0% DoE May years 1.9% 2.5% 3.0% 2.5% DoE Nov years 1.9% DoE Mar years 400+ contracts Top 10 contracts represent only ~46% of revenue Note: Revenue is pro forma for all recent acquisitions, including Omniplex. (1) All task orders under WPS considered to be unique programs, given varying scopes of work, geographies and period of performance for each separate contract. Constellis Proprietary Information 10

11 Vertically Integrated Training Platform Training Facility Features Secure facility Armory Classrooms Simulators Ranges K-9 facilities Arial imagery & UAS ops Driving track & fleet Airfield Lodging & food service Medical center Corporate facility Constellis global mission support facility location Complete spectrum of training services Largest private training facility in North America One-of-a-kind, elite 3,600-acre training facility over $100 million invested State-of-the-art Global Operations Command Center Vertically integrated training operations drives margin performance and scalability Constellis Proprietary Information 11

12 Global Reach, Local Expertise o Global reach, rapid response & local expertise o Operating in 45+ countries o 24/7 global operations center SYRIA LIBYA Constellis Proprietary Information 12

13 Track Record of Safety Workplace Injuries Per Hundred Employees Per Year (1) Safety is Our Mission Developed Leading Compliance Practices $60M Invested on development and implementation of leading compliance practices since 2010 Safety Culture Driven by Core Philosophies Zero tolerance culture Philosophy of risk avoidance Focus on training and compliance drives our impeccable safety record Compliance systems developed under the supervision of former Attorney General John Ashcroft, a Constellis Board member since 2010 (1) Source: Bureau of Labor Statistics (2015). Constellis Proprietary Information 13

14 Best-in-class Compliance & Training Practices Continual Compliance Focus Stringent Recruiting Standards Multiple Oversight Bodies Compliance Committee (subset of BoD) receives routine updates on relevant matters Corporate Risk Council reporting to the board Compliance hotline / employee self-reporting system Successful 2016 external audit of export compliance programs Recent Awards: Only ~5% of applicants are offered positions Applicants subject to: Background checks Psychological evaluations Drug screenings U.S. Gov t clearance process WPS applicants required to complete 304-hour DoS-approved training course Corporate Compliance Office of the Year Award (2013) Winner (ACADEMI LLC) Outstanding Law Department (2016) - Nominee Constellis Proprietary Information 14

15 Leading Financial Profile Q Key Stats: $1.7B LTM Revenue ~$250M LTM EBITDA ~80% Prime Contracts ~75% Fixed Price Contracts Leading EBITDA Margin Profile 9% 15% Strong Pipeline of New Business $3.9B Q2 Backlog $1.2B YTD Q2 Awards Strong Cash Conversion <$10M Annual Capital Expenditures Government Services (1) Constellis 1.5x Book-to-Bill Ratio Note: All financials are pro forma for all recent acquisitions, including Omniplex. EBITDA includes acquisition-related cost synergies. (1) Per Credit Suisse Government Services index as of August 3, Index includes: LDOS, CSRA, BAH, SAIC, CACI, EGL and MANT. Constellis Proprietary Information 15