Through its regional sales and service centers, McCoy Global supports customers around the world by providing technical and calibration services; replacement parts; consumables and rentals.
McCoy Global operates in an evolving energy market where the number and complexity of tubular connections is increasing, driving demand for premium tubular connections. The Company’s expertise in producing high specification tubular make-up products positions McCoy Global to meet the technological challenges faced by customers in unconventional markets.
The two key elements of McCoy Global’s growth strategy are: 1) the development of advanced equipment and software technologies, and 2) global expansion to optimize regional customer support. During 2014, McCoy Global executed on several initiatives that support this strategy.
McCoy Global continued to execute on its global expansion initiative in 2014 by opening its third regional sales and service center in the Jebel Ali Free Zone located in Dubai, United Arab Emirates and developing its regional locations in Aberdeen and Singapore. Collectively, these three centers will support customers across the Eastern Hemisphere. To reflect its growing international presence, in 2014 the Company officially changed its name to McCoy Global Inc.
Growing our international presence and developing or acquiring a more robust portfolio of advanced products for an evolving market remain key drivers of McCoy’s long-term growth.”
Through the divestiture of the last of its non-core businesses, the Company achieved its goal of becoming a pure play tubular make-up and handling equipment solutions provider. The divestitures strengthened McCoy Global’s financial position, reduced its exposure to the more volatile North American market and enabled the Company to focus on its core business.
McCoy Global progressed its new product development initiative by commercializing the market’s first electric bucking unit, the weBUCKTM and advanced the development of its first technology under its weHOLDTM platform of handling tools.
McCoy Global strives to be a technology leader in tubular make-up, handling and data acquisition, and building a strong product portfolio remains a key driver of McCoy Global’s long-term growth. The Company commercialized the first technology under its weHOLDTM platform of handling tools in 2015. The proprietary flush mount spider will be the first tubular handling tool of its kind on the market and is complementary to McCoy Global’s line of hydraulic power tong products.
The Company has been investing approximately three percent of annual revenue in research and development and remains dedicated to strengthening its product portfolio with technologically advanced equipment and software that provide innovative solutions for its customers.
As McCoy Global strives to be a technology leader in tubular make-up, handling and data acquisition, continued investment in new product development remains a key part of our growth strategy.”
McCoy Global’s Eastern Hemisphere regional sales and service centers continue to grow and generate incremental revenue. The Company is dedicated to further developing these locations with a focus on growing regional sales centers with strong aftermarket support. In addition to investing in capital equipment and working capital, McCoy Global has committed to building a rental fleet which will be deployed to its regional centers.
As McCoy Global pursues its vision of becoming the global leader in tubular make-up and handling equipment solutions, it is working to establish the McCoy Global brand internationally. The Company is beginning to see evidence of its brand’s association with expertise in making-up tubular connections, and aims to build the McCoy Global brand by continuing to provide its customers with advanced, high-quality products and outstanding technical service and support.
Our regional sales and service centers provide a platform to target increased aftermarket sales and deploy a rental fleet where equipment repair, maintenance and rental become more important to our customers.”
“McCoy Global’s balance sheet strength enables continued investment in new product development and international expansion, the key drivers of our long-term growth.”
1EBITDA is an additional GAAP measure presented under IFRS defined as “net earnings from continuing operations, before finance charges (net), income tax expense, depreciation, and amortization.” Adjusted EBITDA is a non-GAAP measure defined as “net earnings from continuing operations before finance charges (net), income tax expense, depreciation, amortization, impairment losses, net changes in fair value related to derivative financial instruments and share-based compensation”. Adjusted EBITDA is not considered an alternative to net earnings in measuring McCoy Global’s performance. Adjusted EBITDA does not have a standardized meaning and is therefore not likely to be comparable to similar measures used by other issuers. However, McCoy Global calculates adjusted EBITDA consistently from period to period. Adjusted EBITDA should not be used as an exclusive measure of cash flow since it does not account for the impact of working capital changes, capital expenditures, debt changes and other sources and uses of cash, which are disclosed in the consolidated statement of cash flows.
Jim Rakievich, President and CEO, and George Andrews (NAIT) at the McCoy Global gift announcement.
In 2014 we continued to deliver on our strategic plan, creating an organization that is financially stronger, better positioned to take advantage of less cyclical international markets and for the first time in the Company’s history, operating under one global brand supported by a common Enterprise Resource Planning (ERP) platform.
We achieved our goal of becoming a pure play in 2014 by divesting of our non-core businesses. In addition to significantly strengthening our balance sheet, the divestiture of the Mobile Solutions segment as well as the Coatings & Hydraulics division reduced our exposure to the more cyclical North American energy market and enabled the Company to focus our efforts on developing advanced equipment and software technologies in an evolving oil and gas industry.
We continued to execute on our international expansion strategy in 2014 as we progressed the development of our regional locations in Aberdeen and Singapore and opened our third regional sales and service center in the Jebel Ali Free Zone located in Dubai, United Arab Emirates. Collectively, these three regional locations will support our customers across the Eastern Hemisphere.
We will continue to develop and support these locations as they continue to grow their presence. These efforts will assist global sales and marketing initiatives, increase regional and global customer support and enable the Company to gain market intelligence that will help forecast demand for new and existing products.
Our regional sales and service centers provide a platform to target increased aftermarket sales and deploy a rental fleet where equipment repair, maintenance and rental become more important to our customers in the current market environment.
We completed our re-branding initiative in 2014 and officially changed our name to McCoy Global Inc. to reflect our growing presence in the global energy market. We have been working to establish the McCoy Global brand internationally and are beginning to see evidence of its association with expertise in making-up tubular connections. Building the McCoy Global brand remains a key Company initiative as we pursue our vision of becoming the global leader in tubular make-up and handling equipment solutions.
McCoy Global commercialized the weBUCKTM, the first electrically-powered bucking unit on the market, offering several advantages over conventional hydraulic-powered bucking units. We also made progress towards completing the development of the first piece of equipment under our weHOLDTM platform of handling tools, which are complementary to our line of power tong products.
Our overall investment in new product development remained consistent with prior years at approximately three percent of revenue. As McCoy Global strives to be a technology leader in tubular make-up and handling, continued investment in new product development remains a key part of our growth strategy.
2015 will be a challenging year in the global energy market. In response to expected near-term activity levels, we will be focused on reviewing our cost structure and supply chain. Although we anticipate the market will affect our financial performance, McCoy Global’s strong balance sheet and significant international presence well-positions the Company in this environment.
The long-term industry outlook has not significantly changed and neither has our strategy. We remain committed to new product development initiatives, continued growth of our regional sales and service locations, including building a rental fleet to deploy to each region. Growing our international presence and developing or acquiring a more robust portfolio of advanced products for an evolving market remain key drivers of McCoy’s
Kerry Brown, CA
Frank Burdzy, MBA
T.D. (Terry) Freeman, FCA, ICD.D
John Howard, CA
Jim Rakievich, ICD.D
Chris Seaver, MBA, J.D. – Chair
Jim Rakievich, ICD.D – President and Chief Executive Officer
Jacob Coonan, MPAcc, CA – Chief Financial Officer
Kenny Watt – Senior Vice President
Peter Watson, Esq. – Vice President, Corporate Development & General Counsel
Valiant Trust Company
The Toronto Stock Exchange: MCB
The Equicom Group
The 2015 annual meeting of shareholders will be held on May 14, 2015, at 4:00 p.m. MDT, at The Sutton Place Hotel, Winter Lake Room, 10235 101 Street, Edmonton, Alberta.