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8-K - FORM 8-K - Fenix Parts, Inc.d88115d8k.htm
Investor Presentation
November 2015
Exhibit 99.1


1
Safe Harbor Statement
FORWARD-LOOKING STATEMENTS
Certain statements contained in this presentation are “forward-looking statements.” We have based these forward-looking statements
on our current expectations and projections about future events. However, these forward-looking statements are subject to risks,
uncertainties, assumptions and other factors that may cause our actual results, performance or achievements to be materially
different. Some of these risks, include, among other things: our lack of combined operating history and our ability to successfully
integrate the Founding Companies into one entity;  our ability to successfully locate and acquire additional businesses that provide
recycled OEM automotive products and our ability to successfully integrate any acquired companies with our business; our success
in managing our internal growth; competition from vehicle replacement parts companies, including but not limited to those that
provide recycled parts; our ability to maintain our relationships with auto body shops, insurers and other customers and with auction
companies from which we purchase our salvage vehicles; our compliance and our Founding Companies’ past compliance with
environmental laws and regulations and federal, state and local operating and permit requirements; the known environmental
liabilities at Standard’s Toronto, Ontario facility associated with groundwater and surface water contamination as a result of historical
releases and a petroleum hydrocarbon spill in November 2010; potential for significant impairment of goodwill and intangibles;
fluctuations in the prices of scrap metal and other metals; changes in the national, provincial or state laws and regulations affecting
our business; disruptions in the information technology systems on which our business relies; and material weaknesses in our
internal control over financial reporting. For a more detailed discussion of these and risks, see the documents and reports that we
have filed with the Securities and Exchange Commission (the “SEC”).
Given these risks and uncertainties, you are cautioned not to place undue reliance on our forward-looking statements. Projections
and other forward-looking statements included in this presentation have been prepared based on assumptions, which we believe to
be reasonable, but not in accordance with GAAP or any guidelines of the SEC. Actual results may vary, perhaps materially. You are
strongly cautioned not to place undue reliance on such projections and other forward-looking statements. All written and oral forward-
looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by these cautionary
statements. Except as required by federal securities laws, we disclaim any intention or obligation to update or revise any forward-
looking statements, whether as a result of new information, future events or otherwise. Any such forward-looking statements, whether
made in this presentation or elsewhere, should be considered in the context of the various disclosures made by us about our
businesses including, without limitation, the risk factors discussed above.


A Look Into Fenix Parts
2


3
Presenters
Former Vice President of Stericycle Inc. (NASDAQ:SRCL), a national reverse
logistics and regulated waste management company
Operational and P/L responsibilities for 150,000 customers generating
$500
million in revenue
Executed
the
consolidation
and
integration
strategy
of
Stericycle
managing
or
facilitating over 70 different acquisitions ranging in size from $1 million to $200
million
Co-founded American Medical Disposal in 1990, which was acquired by Stericycle in
2001
Professional Executive
Management Team With Deep
Bench Strength
Industry expertise
Operations emphasis
Distribution and logistics
Business development and
expansion
Integration and systems
Public company experience
Kent Robertson, Chief Executive Officer
Former Chief Financial Officer of Insurance Auto Auctions, Inc. (IAAI), a leading
provider of salvage vehicle auction services for insurance companies
CFO during IAAI’s rapid growth, expanding from 48 to 150 auction locations
while increasing EBITDA from $20 million to what is now over $200 million
Converted diverse systems, business processes into an integrated platform for
growth
Previously CFO of Globe and Vistar Auto Glass; merged #2 and #3 in the industry
prior to sale to Safelite
Scott Pettit, Chief Financial Officer


Why Invest in Fenix Parts?
Recycled original equipment is the product of choice in the
attractive/desirable automotive replacement parts marketplace
(represents a $60B+ opportunity plus the do-it-yourself market)
Right Product
Offering in
Huge
Market
Clear economic benefits to the consolidation and integration of
recyclers of original equipment parts into a highly profitable,
scaleable national platform
Right Business
Model in a
Highly
Fragmented
Segment
Consolidation of the industry with a strong second player makes
sense for Fenix, the recycling industry and our shareholders.
Fenix has a unique opportunity for growth and ability to
profitably drive inventory more efficiently through its network to
its customers
Right Opportunity to
Create
Shareholder
Value
Fenix has a proven executive leadership team, management
and board committed
to
creating value for shareholders as it
executes on its business plan and creates a premier auto parts
recycler
Right Management
Team to Deliver
4


5
Our $61 Billion Marketplace
Key Highlights
Do-It-For-Me
$165 billion
Do-It-
Yourself
$48 billion
Participate primarily in two repair
shop segments
Collision ($15 billion)
Doors, hoods, trunk lids,
etc.
Mechanical ($46 billion)
Engines, transmissions,
etc.
Do-It-Yourself
Key drivers of market size
Vehicles on the road
Miles driven
Age of vehicles
Collision rates
Mechanical
Parts
$46 billion
Collision
Parts
$15 billion
Market
Opportunity
Market
Opportunity
Do-It-
Yourself
$48 billion
Mechanical
Parts
$46 billion
Labor and
Mark Up
$104 billion
Collision
Parts
$15 billion
Source:
Auto
Care
Association
Digital
Auto
Care
Factbook,
24
th
Edition
2015;
2014
data
is
estimated,
excludes
tires


U.S. Miles Traveled (millions) / Avg. U.S. Retail Gas Prices
U.S. Light Vehicles In Use (millions)
Large and Stable Market
U.S. Light Vehicle Age
U.S. Light Vehicle Sales (millions)
Stable even at high gas prices
Expect growth with lower gas prices
Higher repair rate
Higher parts spend per repair
229
234
238
241
245
248
250
250
248
247
248
250
253
255
257
259
261
210
220
230
240
250
260
270
2002
2004
2006
2008
2010
2012
2014
2016P
2018P
9.6
9.7
9.8
9.8
9.9
10
10.1
10.3
10.6
10.9
11.2
11.4
11.4
8.0
9.0
10.0
11.0
12.0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$0.00
$1.00
$2.00
$3.00
$4.00
175,000
200,000
225,000
250,000
275,000
1996
1999
2002
2005
2008
2011
2014
U.S. Miles Traveled
Avg U.S. All Grades Retail Gas Prices
16.9
16.5
16.1
13.2
10.4
11.6
13.2
14.4
15.6
16.5
16.9
17.3
17.5
16.9
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
2005
2007
2009
2011
2013
2015P
2017P
6
Source: AASA, POLK 2014, U.S. Department of Transportation, U.S. Energy Information Administration, Ward’s, Gabelli & Company Estimates


Critical Link In The Supply Chain
RECYCLED OEM PARTS
VEHICLES
Mechanical
Engines
Transmissions
Transfer cases
Collision
Doors
Hoods
Trunk lids
Lights / lamps
Fenders
Bumpers
Wheels / tires
Assemblies
Auto Auctions
Consumers
Repair Shops
Consumers
Buy Cars
Dismantle
Distribute
Fenix Value-Add
Established Supply Chain
Professionalized Segment Participants
7


Recycled OE Parts Are The Parts of Choice
~70%
Savings
~50%
Savings
~45%
Savings
Source: Management estimates
Illustrative Cost Comparison Analysis: New vs. Recycled OE
$3,500  
$1,400  
$650  
$1,125  
$650  
$350  
--
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
Engine
Front Door
Rear Bumper
New OE
Recycled OE
8
Customers have choices
Original Equipment Manufacturer
(OEM)
Recycled Original Equipment (OE)
Aftermarket
Clear cost benefit advantage of
Recycled OE
versus OEM
Clear advantage to Aftermarket
Quality, fit, and performance
Sold as assemblies, reducing cost
Recycled Original Equipment feeds
refurbished / remanufactured
We sell Recycled OE to make
refurbished / remanufactured
products
We distribute refurbished /
remanufactured products


9
Building On a Strong Foundation
Financially-sound and profitable Founding
Companies
Similar operations, with long-standing market
presence and historical trade relationships
connected through a distribution and logistics
network
Stable business platforms for inventory
management, purchasing, and supply chain
management
Founding Companies include three current and
former Presidents of the Automotive Recyclers
Association (ARA)
11 individual companies with 16 locations under
the Fenix umbrella
Location
Full-Service
Locations
Self-Service
Locations
Ontario
(Canada)
Ottawa, Ontario
Port Hope, Ontario
Ottawa, Ontario
Scarborough, Ontario
New York
Binghamton, NY
Queensbury, NY
Watertown, NY
Niagara Falls, NY
Binghamton, NY
Elmira, NY
Pennsylvania
Pennsburg, PA
New Jersey
Rahway, NJ
Bayville, NJ*
North Carolina
Greensboro, NC*
Forest City, NC*
Florida
Jacksonville, FL
* Post-IPO Acquired Locations


Our Market Advantage
Geographic market presence with established customer relationships and
premier assets dedicated to the procurement and recycling of original
equipment parts
Competitive
Market
Position
Coordinated regional approach that provides access to our extensive inventory
of recycled original equipment parts for distribution on the same or next day
basis
Extensive Inventory
and
Distribution
Platform
We operate a profitable, scalable business model in a stable, growing industry
in a manner that allows us to drive the "product of choice" more efficiently
through our network to our customers
Attractive Product
Offering, Business
Model and Industry
The management of our companies have extensive operating experience,
longstanding relationships with our diverse customer base and an intimacy with
the systems and processes routinely employed within the recycling industry
Deep Industry
Experience
The Fenix leadership team brings operating, distribution/logistics, business
development/expansion, integration, systems and public company experience
and a history of creating shareholder value
Experienced
Leadership Team
10


11
Experienced Leadership Team
Strong Senior Management Team
Kent
Robertson
CEO
Scott
Pettit
CFO
Art
Golden
COO
John
Blaseos
EVP-Supply
Chain
David
Gold
EVP
Independent, Highly-Qualified Board of Directors
Gary Beagell
Steven Dayton
J. Michael McFall
Thomas O’Brien
Clayton Trier
Experienced Field Operations
Former owners / managers took leadership roles within field operations
Dedicated Business Development Team
Identify and speak with high-quality companies that are owned and operated by strong management teams


Regional
Focus
Building
a
National
Presence
Increase inventory throughput to the hub to drive
revenue
More parts selection
Next day delivery
Increase same store sales
Optimize inventory levels
Leverage distribution network to increase margin
More parts per delivery
Lower cost platform because of higher asset
utilization
Drive operating efficiencies through regional
density
Opportunity for regional and national expansion
Legend
Full-Service Location
Distribution Hub
Self-Service Location
Market Demand for a Strong Alternative
12


13
Pure-Play North American Recycled OE
Organic
Growth
Acquisition
Growth
Overall market
Regional cross-dock / inventory
New customers
Highly fragmented
Benefits of scale
Robust pipeline


14
Organic Growth Drivers
Favorable industry trends (miles driven, insurance preference)
Increased fulfillment rates (procurement, inventory diversity)
Customer growth (in-house / outbound effectiveness)
Parts trader (market expansion)
Managing regional dynamics (pricing, inventory)
Entrance to new markets (extending the hub)
Leading to a 7-9% organic growth


15
Compelling M&A Growth Platform
Why is This a Good Consolidation Opportunity?
Highly fragmented market
Over 9,000 recycling facilities according to the
American Recycling Association, with only 1
company with over a 10% share
Majority of companies are sized between $1-10
million in annual revenue
Significant benefits of scale
Access to greater inventory for sale (better
buying, better inventory), higher parts fulfillment
Acquisitions are highly synergistic
Vehicle procurement and tow-in
Product distribution and building
route/customer density
Leveraging of fixed overhead costs
Why are We the Acquirer of Choice?
Opportunity for acquired businesses to be at the
front-end of a robust growth opportunity
Expand and scale acquired businesses in their
current marketplace creating long-term growth
opportunities for owners and employees
Founding Companies are the leaders in the
industry and attract like-minded acquisition targets
Owner-friendly expansion strategy


16
Compelling M&A Growth Platform
How have We Pre-Wired this M&A Growth?
Dedicated business development team, from
identification, to acquisition through integration
Identified hundreds of opportunities that meet our
acquisition criteria
Currently focused on geographic adjacencies to
existing markets
Expanding distribution, dismantling, and
warehouse / yard capacity
Near-
to mid-term acquisition pipeline with targets
ranging in size from $3
million to $18
million in
revenue
Why Does This Create Value?
Attractive valuation of tuck-in acquisitions creates
M&A arbitrage
Average revenue of $5-10 million
4-6 times Adjusted EBITDA valuation
Drive acquired company improvements at top and
bottom line
Access to regional hub
Maximize benefits of scale
Drive revenue to $10-15 million, double EBITDA
margin
(1)
Subject to normal and customary covenants
Fenix
has obtained a $55 million credit facility
inclusive
of
a
$20
million
accordion
feature
(1)


17
Near-
to Mid-Term Fenix Acquisition Pipeline
ACQUISITION TARGET
(1)
ANNUAL REVENUE
COMPLETED
Ocean County Auto Wreckers
$8M
August, 2015
Butler Auto Sales and Parts
$9M
October, 2015
Tri-City Auto Salvage
$8M
October, 2015
Company A
$8M
Company B
$8M
Company C
$18M
Company D
$9M
Company E
$7M
Company F
$9M
Company G
$5M
Company H
$14M
Company I
$6M
Company J
$4M
Company K
$13M
Company L
$3M
Company M
$6M
Company N
$8M
Company O
$10M
Company P
$6M
Company Q
$5M
Company R
$8M
Company S
$4M
Total Pipeline
$151M
(1) Excludes additional identified opportunities and expressions of interest


18
Foundation for Growth
Revenue
Recycled OEM parts sales and other
services (scrap)
Cost of Goods Sold
Primarily price paid for vehicles at auction
Also includes tow-in, vehicle procurement
and dismantling costs
Operating Expenses
Facilities, rent and distribution expense
Selling expenses for commissioned sales
force
General and administrative expenses
Depreciation and amortization
Growth Assumptions
Organic growth: Historical high-single digit
Recycled OE parts growth
Near-
to mid-term acquisition pipeline: $151
million
(1)
Assumes approximately 7-9% organic growth and 1-3 acquisitions per quarter
(2)
Excludes fluctuations in scrap prices and foreign exchange rate
0
50
100
150
200
250
300
350
2015
2016
2017
2018
Strong Growth Opportunity
(1)(2)(3)
Base Revenue
Cumulative
Acquisition
Revenue
(Completed
Deals)
Cumulative Acquisition Revenue (Future Deals)
(3) The growth projections shown above are solely to illustrate the effect of organic growth and growth through acquisitions that the company
believes to be achievable; however, there can be no assurance that these levels of revenue will be achieved


19
Emphasis on Recycled OE Parts Business
(1) Approximate mix after factoring in completed acquisitions
Increasing emphasis on recycled OE parts and reduced exposure to commodities
Recycled OE
Parts
76%
2014
Revenues
Recycled OE
Parts
84%
Revenue Mix
(1)
Commodities
24%
Commodities
16%


20
Capital Structure
Strong Liquidity
$19 million cash on hand (6/30/15)
$55 million BMO credit facility
$9.8 million term loan (current)
Founding Company acquisitions funded using IPO proceeds
Three acquisitions since 6/30/15 (Ocean County, Butler and Tri-City) for total consideration
of $19 million
Cash consideration 90% / equity consideration 10%
$8.7 million drawn against credit facility
Founding Companies, Management and Board of Directors Significant
Shareholders
More than 30% combined ownership


21
Clear Path for Significant Value Creation
Large Growing Parts Business in Fragmented Market
Significant progress on path to national coverage in top-125 MSAs
Well-Defined Process to Scale Operations
Regional hubs and distribution drive ability to share inventory, optimize dismantle, vehicle procurement,
tow cost and distribution
Robust Pipeline for Future Acquisitions
Strong Organic Growth Profile
Future Growth Opportunities
Platform enables us to launch new products and service offerings to our customers
Highly Skilled Management Team Incented to Create Shareholder Value