EX-99.1 3 a2058195zex-99_1.txt EXHIBIT 99.1 PRESENTATION TO INVESTORS [STEWART & STEVENSON LOGO] AUGUST 2001 [STEWART & STEVENSON LOGO] CORPORATE PROFILE STEWART & STEVENSON IS A GLOBAL SYSTEM INTEGRATOR AND AFTERMARKET SUPPORT ORGANIZATION FOR ENERGY CONVERSION AND UTILIZATION SYSTEMS IN NICHE AND ENVIRONMENTALLY CHALLENGING APPLICATIONS. COMPETITIVE ADVANTAGE IS ACHIEVED THROUGH SPEED, APPLICATION SKILLS, CUSTOMER RELATIONSHIPS AND SUPERIOR SERVICE UTILIZING ENABLING TECHNOLOGY PROVIDED BY PARTNERS WHO HAVE SCALE. - MANUFACTURER, DISTRIBUTOR & PROVIDER OF SERVICE FOR ENGINE-DRIVEN EQUIPMENT - HEADQUARTERS IN HOUSTON, TEXAS - $1.15 BILLION U.S. DOLLARS SALES FY2000 - 4000+ EMPLOYEES...1000+ SERVICE TECHS & 200+ ENGINEERING POSITIONS - PUBLICLY TRADED ON NASDAQ (SSSS) [PICTURE] CORPORATE OFFICE HOUSTON, TEXAS 2 [STEWART & STEVENSON LOGO] SALES MIX FOR FISCAL YEAR 2000 ($MM) [PIE CHART] $1.15 BILLION TOTAL SALES 3 [STEWART & STEVENSON LOGO] POWER PRODUCTS $613MM SALES FY 2000 - EQUIPMENT, PARTS, RENTAL, SERVICE SOLUTIONS [PIE CHART] - 6 GEOGRAPHICAL REGIONS - GULF COAST, SOUTH TEXAS, NORTH INDUSTRIAL TEXAS, ROCKY MOUNTAINS, WESTERN, LATIN AMERICA - 44 SERVICE LOCATIONS - 1000+ SERVICE TECHS - POWER GEN, GAS COMPRESSION & AGRICULTURE OEM BUSINESS UNITS - MARINE SYSTEMS INTEGRATION - ENGINE GEN SETS, PUMPING, AIR COMPRESSION, MATERIAL HANDLING REFRIGERATION, PROPULSION SYSTEMS CREATING CUSTOMER VALUE THROUGH SUPERIOR SERVICE 4 [STEWART & STEVENSON LOGO] POWER PRODUCTS MARINE - PROPULSION - SHIPS POWER - SERVICE - PARTS [LOGOS] AGRICULTURE - IRRIGATION SYSTEMS - ENGINE-PUMPS - ENGINE-GENERATORS - PARTS - SERVICE - RENTALS [LOGO] INDUSTRIAL, UTILITIES, COMMERCIAL - POWER GEN - FORKLIFTS - OFF HWY VEHICLE - AIR COMPRESSION - ENGINES - GAS COMPRESSION - PUMPS - RAILKING - SERVICE - PARTS - RENTALS [LOGOS] ON HIGHWAY TRUCK & BUS - PARTS - SERVICE - REFRIGERATION - ENGINES - TRANSMISSIONS [LOGOS] AIRPORTS, RAILWAY, HIGHWAY - RAILKING - SNOWBLOWER - WHEELCHAIR LIFTS - SERVICE 5 [STEWART & STEVENSON LOGO] POWER PRODUCTS LOCATIONS [MAP] 6 [STEWART & STEVENSON LOGO] TACTICAL VEHICLE SYSTEMS $304MM SALES FY2000 [PICTURE] - SOLE SOURCE PROVIDER OF 2 1/2-TON & 5-TON FAMILY OF MEDIUM TACTICAL VEHICLES (FMTV) TO US ARMY SINCE 1991 - FOURTEEN VEHICLE VARIANTS WITH 85% COMPONENT COMMONALITY - OVER 14,000 VEHICLES IN THE FIELD; ANOTHER 70,000 TARGETED FOR REPLACEMENT - FACILITY IN SEALY, TEXAS, PRODUCING 2000+ TRUCKS & TRAILERS ANNUALLY - GROWING AFTERMARKET SUPPORT INFRASTRUCTURE WITH FACILITIES IN MILITARY LOCATIONS - TECHNOLOGY FOCUS ON HYBRID ELECTRIC, SUSPENSION AND BRAKING, ON-VEHICLE ELECTRONICS AND DIAGNOSTICS - US GOVERNMENT R&D PROGRAM FUNDING ADDS TO TECHNOLOGY BASE - LEAN MANUFACTURING AND INNOVATIVE SUPPLIER PARTNERING POSITIONING TO WIN NEXT MULTI-YEAR AWARD EXPECTED FY2003 7 [STEWART & STEVENSON LOGO] S&S TUG (AIRLINE) $110MM SALES FY2000 [PICTURE] - MANUFACTURER AND SERVICE PROVIDER OF FULL RANGE OF AIRCRAFT GROUND SUPPORT SYSTEMS: - BAGGAGE & PUSH BACK TRACTORS - GROUND POWER - BELT LOADERS - AIR STARTS - AIR CONDITIONERS - MANUFACTURER, RE-MANUFACTURER, AND SERVICE PROVIDER FOR SPECIALTY MATERIAL HANDLING APPLICATIONS: - RAIL CAR SPOTTERS - INDUSTRIAL MATERIAL HANDLING - SNOWBLOWERS - FACILITIES IN ATLANTA, GA AND HOUSTON, TX - SERVICE FACILITIES ON AIRPORT PROPERTIES - TECHNOLOGY FOCUS...EMISSIONS, ELECTRIC PROPULSION, DRIVE TRAIN SYSTEMS - MARKET GROWTH THROUGH ELECTRIC PRODUCTS, REGIONAL AIRLINES, AND SPECIALTY MATERIAL HANDLING GLOBAL MARKET PARTICIPANT WITH STRONG CUSTOMER RELATIONSHIPS 8 [STEWART & STEVENSON LOGO] PETROLEUM EQUIPMENT $100MM SALES FY2000 [PICTURE] - EQUIPMENT AND SERVICE SOLUTIONS FOR LAND AND OFF-SHORE OIL & GAS APPLICATIONS - COIL TUBING SYSTEMS - FRACTURING SYSTEMS - ACIDIZING SYSTEMS - REMANUFACTURING - MARINE RISER SYSTEMS - BLOW-OUT PREVENTERS & CONTROL SYSTEMS - ELASTOMER TECHNOLOGY AND PRODUCTS - HIGH PRESSURE VALVES - GLOBAL BUSINESS WITH LOCATIONS IN HOUSTON, ABERDEEN, ABU DHABI, HONG KONG, BEIJING, MOSCOW - TECHNOLOGY FOCUS ON PRESSURE SYSTEMS, TUBING SYSTEMS, ELECTRONIC CONTROLS, ENGINE APPLICATION - NEW PROPRIETARY PRODUCT INTRODUCTION AND SERVICE GROWTH FOCUS UNIQUE ENGINEERING SOLUTIONS IN GLOBAL MARKETS 9 THE NEW MANAGEMENT AT [STEWART & STEVENSON LOGO] [STEWART & STEVENSON LOGO] EPS MODEL - RECEIVABLES - INVENTORY - TVS CHANGE ORDERS - NEW PRODUCTS - STRATEGIC OPS - ACQUISITIONS [CHART] - SUPPLY CHAIN - ERP/JDEDWARDS 11 [STEWART & STEVENSON LOGO] FIVE INITIATIVES LEADERSHIP WORKING CAPITAL GROWTH INFORMATION MANAGEMENT SUPPLY CHAIN 12 [STEWART & STEVENSON LOGO] LEADERSHIP [CHART] 8 OF 10 BOARD MEMBERS ADDED IN LAST 3 YEARS 13 [STEWART & STEVENSON LOGO] WORKING CAPITAL ($MM) [GRAPHIC] $200MM+ IMPROVEMENT... IMPROVED EARNINGS PERFORMANCE... GAS COMPRESSION ASSET SALE... INVENTORY REDUCTIONS 14 [STEWART & STEVENSON LOGO] A NEW AGE [GRAPHIC] SUPPLY CHAIN DEVELOPING ESTABLISHED ENGAGED CONDUCTING PROCUREMENT SUPPLY CHAIN PROCUREMENT SYMPOSIUMS WITH PROGRAMS... MANAGEMENT EXPERTS SUPPLIERS, 4000 373 CONTRACTS TEAM ATTEND MEETINGS AWARDED TARGETING $20 MILLION IN ANNUAL SAVINGS BEGINNING FY2001 15 [STEWART & STEVENSON LOGO] EPS INFORMATION MANAGEMENT WEB BASED COMPUTING EXPAND AUTOMATION E-BUSINESS E-PROCUREMENT SRM/PRM E-LEARNING CRM APS ANALYTICS CURRENT STATUS APPLICATION CENTRALIZATION: BEGIN AUTOMATION JDE: ACCOUNTING MANUFACTURING PAYROLL DISTRIBUTION LABOR/INVENTORY BAR CODE P-CARDS SFA LAPTOPS INFRASTRUCTURE CENTRALIZATION EMAIL INTERNET ACCESS WEBSITE TCP/IP INTEGRATED DATA/VOICE PRO-ENGINEERING LEGACY SYSTEMS DE-CENTRALIZED GREEN SCREEN HP3000 E-3 PARTS PLANNING CULLINET GL/PAYROLL NOVELL $30MM PROJECT... JDE 60% COMPLETE 16 [STEWART & STEVENSON LOGO] EPS GROWTH - SERVICE BUSINESS... FY2000 200+ SERVICE TECHS ADDED, SERVICE & PARTS SALES UP 11% - POWER GEN BUSINESS... LARGE BACKLOG IN PLACE... SUCCESS IN WESTERN REGION OF USA [PICTURE] NEW DALLAS BRANCH - SINCE 1999 ADDED CALIFORNIA THERMO KING, PHARR, PUEBLO, GILLETTE, WACO, REDDING, VALENCIA, COLOMBIA FREE TRADE ZONE, AND A NEW $10MM FACILITY IN DALLAS IN PROCESS - MERCRUISER, AURAGEN ADDED... DEUTZ FRANCHISE IN VENEZUELA - OPTIONS ON U.S. ARMY CONTRACTS AND GROWING CONTRACTOR LOGISTIC SUPPORT BUSINESS - STRATEGIC ACQUISITIONS... $100MM IN CASH, $150MM UNUSED CREDIT FACILITIES AND STOCK AVAILABLE DOUBLE DIGIT SALES AND EPS GROWTH EXPECTED 17 FINANCIAL [STEWART & STEVENSON LOGO] RESULTS 18 [STEWART & STEVENSON LOGO] QUARTERLY PERFORMANCE TRENDS-SALES ($MM) [BAR CHART] GROWTH DRIVEN BY NEW TVS CONTRACT, PETROLEUM REBOUND, AND POWER GENERATION RESTART 19 [STEWART & STEVENSON LOGO] QUARTERLY PERFORMANCE TRENDS ($MM) NET EARNINGS - CONTINUING OPERATIONS [BAR CHART] TEN CONSECUTIVE QUARTERS OF EARNINGS GROWTH * EXCLUDING EXTRAORDINARY ITEMS 20 [STEWART & STEVENSON LOGO] CORPORATE TOTAL DEBT ($MM) [BAR CHART] ... TOTAL DEBT DECREASED TO $68 MILLION 21 [STEWART & STEVENSON LOGO] CORPORATE CASH & EQUIVALENTS ($MM) [BAR CHART] ... AND CASH AND EQUIVALENTS EXCEED $100 MILLION 22 [STEWART & STEVENSON LOGO] OUTLOOK FOR 2001 [GRAPHIC] 23 [STEWART & STEVENSON LOGO] ORDER BACKLOG
January 31, April 29, July 29, October 28, January 31, April 28, July 28, (Millions) 2000 2000 2000 2000 2001 2001 2001 ------------------------------------------------------------------------------------------ Tactical Vehicle Systems $ 914.5 $839.5 $795.7 $742.8 $658.2 $596.3 $ 493.1 Power Products Normal 77.6 89.9 116.7 119.2 107.3 138.2 146.1 California Projects - - - - 30.5 39.0 - ------------------------------------------------------------------------------------------ 77.6 89.9 116.7 119.2 137.8 177.2 146.1 Petroleum Equipment 17.2 26.5 55.6 65.6 55.3 47.4 63.0 Airline Products 23.5 18.6 17.2 19.5 16.2 17.2 17.1 Other Business Activities 24.0 14.7 10.1 16.5 11.3 7.1 10.6 ------------------------------------------------------------------------------------------ $1,056.8 $989.2 $995.3 $963.6 $878.8 $845.2 $ 729.9
- UNFILLED ORDERS OF THE TACTICAL VEHICLE SYSTEMS SEGMENT CONSIST PRINCIPALLY OF THE FOLLOW-ON CONTRACT AWARDED IN OCTOBER 1998 BY THE UNITED STATES ARMY TANK - AUTOMOTIVE AND ARMAMENT COMMAND (TACOM) FOR TRUCK AND TRAILER DELIVERIES THROUGH SEPTEMBER 2002 - POWER PRODUCT ORDERS INCLUDED TWO TURNKEY POWER GENERATION PROJECTS (APPROXIMATELY $31 MILLION EACH) THAT ARE PART OF THE CALIFORNIA INDEPENDENT SYSTEM OPERATION SUMMER RELIABILITY PROGRAM. A MAJORITY OF THE REVENUE RELATED TO THESE PROJECTS WAS RECORDED DURING THE FIRST SIX MONTHS OF FISCAL 2001. [STEWART & STEVENSON LOGO] TACTICAL VEHICLE SYSTEMS Selected Other Information
Fiscal Fiscal 2001 2002 --------------------------------------- First First Third Fourth Total Eight Half Quarter* Quarter* Year* Months* ---------------------------------------------------- Unit Shipments -------------- MTV 945 376 389 1710 357 LMTV 145 175 180 500 1195 Trailers 373 198 119 690 360 ---------------------------------------------------- 1463 749 688 2900 1912 Estimated Sales ($millions) $ 217 $100 $105 $ 422 $ 288
- BASED ON CURRENT US ARMY FORECAST AND OTHER DATA SEE "CAUTIONARY STATEMENTS" FOR IMPORTANT INFORMATION REGARDING FORWARD-LOOKING STATEMENTS. - THE $493 MILLION ORDER BACKLOG IS EXPECTED TO BE FULFILLED DURING 3Q01 ($100 MILLION), 4Q01 ($105 MILLION), AND THE FIRST 8 MONTHS OF FISCAL 2002 ($288 MILLION). [STEWART & STEVENSON LOGO] SUMMARY - IMPLEMENT 5 INITIATIVES - WIN U.S. ARMY REBUY-2 AT TVS - GROW SERVICE PRODUCTS IN ALL BUSINESS UNITS - RE-ESTABLISH PROMINENT MARKET POSITION IN POWER GENERATION - INCREASE MARGIN RATES IN POWER PRODUCTS - COMPLETE STEWART & STEVENSON TUG INTEGRATION - LAUNCH SUCCESSFUL NEW PRODUCTS AT PED - UTILIZE INFORMATION MANAGEMENT FOR IMPROVED CUSTOMER SERVICE, LOWER COSTS, AND E-COMMERCE IDENTIFY & COMPLETE SYNERGISTIC ACQUISITION TO GROW SHAREHOLDER VALUE 24 [STEWART & STEVENSON LOGO] FORWARD LOOKING STATEMENTS STATEMENTS CONTAINED IN THIS PRESENTATION WHICH ARE NOT HISTORICAL FACTS COULD BE CONSIDERED FORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTS ARE MADE PURSUANT TO THE SAFE HARBOR PROVISION OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM ANTICIPATED RESULTS. FORWARD-LOOKING STATEMENTS INVOLVE RISKS AND UNCERTAINTIES INCLUDING THE EFFECTS OF GOVERNMENT BUDGETS AND REQUIREMENTS, ECONOMIC CONDITIONS, COMPETITIVE ENVIRONMENT AND TIMING OF AWARDS AND CONTRACTS, IN ADDITION TO OTHER FACTORS DESCRIBED IN THE COMPANY'S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. 25 [STEWART & STEVENSON LOGO] THANK YOU! 26