Creating Value … … Delivering Solutions Michael Baker Corporation Third Quarter 2012 Earnings Call November 9, 2012 Exhibit 99.2 |
2 Revenue From Continuing Operations (in millions) $382.2 $452.2 $499.4 $538.4 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 2010 2011 2012 First 9 Mos. |
3 Operating Income - Continuing Operations (in millions) $18.7 $6.0 $22.3 $24.2 $0 $5 $10 $15 $20 $25 $30 2010 2011 2012 First 9 Mos. |
4 Diluted EPS From Continuing Operations $1.38 $0.45 $1.60 $1.80 $0.00 $0.50 $1.00 $1.50 $2.00 2010 2011 2012 First 9 Mos. |
We need to… Improve Performance Dramatically and Immediately Deliver Value to Shareholders 5 |
Focus on Improving Business Results We completed a realignment of our operations to increase work sharing, enhance cross-selling and improve our utilization rate. Management believes that the Company has addressed its strategic expansion needs with its acquisition of LPA in the Southeast and RBF in the West and Southwest. The Company is focusing squarely on improving its operating results and management will not pursue additional major acquisitions at this time. This will enable the Company’s management to solely concentrate all of its efforts on improving internal operations for the next 12 to 18 months. Management will consult with the Board in the event that a potentially attractive acquisition opportunity is presented prior to expending significant resources on it. 6 |
Alternative Delivery Construction Management Oil & Gas Private Sector Work Organic Growth Strategy 7 |
Performance Improvement Plan (“PIP”) Approximately $18-$20 Million in Cost Savings Reductions in Force / Retirements Overhead Reductions Reduce Occupancy Costs Reduce Travel Expenses Reduce Other Miscellaneous SG&A Expenses One-time cash costs in Q4 estimated at $1.0M To be monitored by Board Committee 8 |
Dividend $0.14 Quarterly Dividend A $0.14 quarterly cash dividend would represent an approximately 2.5% dividend yield. 9 9.7M Total Shares Outstanding x $0.14 Quarterly Cash Dividend $1.36M Quarterly Dividend to be paid in Cash x 4 $5.44M Annual Cash Dividend |
Share Repurchase Authorization Board has authorized the repurchase of up to $10.0M of the Company’s shares from time to time in the open market or otherwise. Parameters for repurchases to be set in consultation with the Performance Improvement Committee, but initially expect to repurchase shares on an opportunistic basis if circumstances warrant so doing. 10 |
Stock Ownership Guidelines The Board adopts the following stock ownership guidelines: CEO – 5x Base Salary CFO, CLO, COO, CPO, Transportation Market Leader & Former RBF Co-CEOs – 3x Base Salary Board of Directors – 4x Cash Retainer Guidelines are to be met within five years 11 |
Summary Redoubling our focus on improving business results Not pursuing more major acquisitions at this time Focusing squarely on organic growth opportunities Cutting between $18-$20 million in costs in 2013 Initiating a quarterly dividend of $0.14/share Authorizing a potential share repurchase of up to $10M of our shares Implementing stock ownership guidelines for Board and top management 12 |
All in Order To …. Improve Performance Dramatically … and Immediately Deliver Value to Shareholders 13 |
Michael Baker Corporation Third Quarter 2012 Earnings Call November 9, 2012 Creating Value … … Delivering Solutions |