Professional Documents
Culture Documents
OTC: MIGL
Safe Harbor Statement
2
The MISCOR Story
Vision Statement
To become a leading provider of integrated mechanical and electrical
industrial services and products by delivering unmatched experience,
quality and innovation, while creating long-term relationships and
tangible value for our employees, customers and shareholders.
Strategic Advantage
Leading provider of industrial services for blue-chip customers serving the
domestic and international markets
Track record of organic and acquisition growth
82% compounded annual sales growth (two-time Inc. 500 company)
Highly experienced management team
Leverage opportunity inherent in the fragmented services market
3
Unique Corporate Model
Blue-Chip
Customer Base
Leverage
Breadth of
Existing
Geographic
Crossover
Reach
Potential
National,
Multi-Industrial
Services
Provider
Best-in-Class
Skilled Workforce
Management
Strategic
Acquisition
Strategy
4
Management Team
John Martell, PE
President and Chief Executive Officer
6
Diversified Services with Crossover Potential
28%
72%
American Motive
Power
7
Midwest Work Ethic | Global Reach
8
Repair, Remanufacture and Manufacturing Services (RRM)
Provide maintenance and repair services on industrial electric motors, lifting magnets, engineering of
power assemblies, engine parts and other components related to large diesel engines.
Industrial Services
End Markets: Rail, Utility, Maritime, Offshore Drilling Sales
9
RRM – Growth Strategy
12
U.S. Wind Market Opportunity
13
U.S. Wind Market Opportunity
14
Magnetech Industrial Services
Business Model
Provide maintenance and repair services to
industry, including:
Industrial electric motors
Lifting magnets
Engineering services
Wind power services
Services
AC and DC motor repair
Manufacturing, remanufacturing and repair
of electrical lifting magnets
Turbine generator repair
Support services
– Field services
– Magnetrac Asset Management
– Reliability-centered maintenance
– Predictive and preventative
maintenance
– Education and training
15
3-D System (Acquired Nov. 2007)
Business Model
Specialize in the repair, remanufacture and
maintenance for a variety of commercial
and industrial equipment, including a unique
expertise in wind generation repair, to extend
service life, increase performance and
reliability, while minimizing downtime.
Services
Electric motors and generators
Steam, combustion and hydroelectric
turbines
Repair services for renewable wind
generation facilities
Class I light rail generators, motors, etc.
Navy and marine duty motors Renewable Wind Generation Repair Services
Nuclear reactor coolant pump motors
Drives, drive systems, printed circuit
boards
Power systems
Plant site services
New equipment
16
HK Engine Components
Business Model
Provides manufacturing, remanufacturing,
repair and engineering of power assemblies,
engine parts and other components related to
large diesel engines for multiple industries,
including:
Rail
Maritime
Offshore drilling
Services
Manufacture and remanufacture power
assemblies for 710, 645 and 547 EMD
diesel engines
Only non-OEM with Tier 0 Certification
from the Environmental Protection Agency
(EPA) for power assemblies
Component parts for engines
1/3 of the production exported to
customers outside North America Power Assembly
17
American Motive Power (Acquired Jan. 2008)
Business Model
Provider of a wide range of services to the
railroad industry, including the reconditioning,
remanufacturing and manufacturing of
locomotives. The 240,000-square-foot, East
Coast-based facility has the capacity to service
up to 20 locomotives simultaneously, as well as
offering wreak repair to quickly put assets back
into service.
Services
Locomotive reconditioning and rebuilding
Engine rebuilding, with an emphasis on
EMD 645 and 710 power assemblies
Wreak repair services
Technological enhancements
104-foot paint shop with air scaffolding
system
Truck repair (locomotive undercarriages)
18
Construction and Engineering Services
Provide a wide range of electrical contracting and HVAC services, mainly to industrial and
institutional customers, as well as commercial builders/contractors
Value Proposition
A market leader in locations served Electrical Contracting
Recent entry into industrial HVAC Sales
19
CES – Growth Strategy
20
Martell Electric
Business Model
Provide a wide range of electrical contracting
services, mainly to industrial and institutional
customers, as well as commercial builders and
contractors
Services
Design/Build and Plan/Specification
Methods
Commercial, industrial and institutional
construction
Telecommunications
Traffic
24/7 service department Hilton Regional Laundry Facility, Portage, Ind.
Three locations in Northern Indiana 34.5 KV High Voltage Switchgear Upgrade
21
Magnetech Power Services
Business Model
Maintenance and repair services to industry,
including:
Engineering
Power system studies
Transformer services
Circuit breakers
Locomotive controls
Services
Design/build mechanical solutions
Circuit breaker reconditioning
24/7 service
Total circuit breaker management
programs
Onsite repair capabilities
Predictive and preventative maintenance
programs
22
Ideal Consolidated (Acquired Oct. 2007)
Business Model
Provide a wide range of mechanical contracting
services, mainly to industrial and institutional
customers, as well as commercial builders and
contractors
Services
Design/Build, Design Assist and
Plan/Specification Methods
Commercial, industrial and institutional
construction University of Notre Dame Football Stadium
Service department
Predictive and preventative maintenance
23
MISCOR Growth Story – Organic & Acquisitions
Total Growth
Total Acquisition Total Organic
$100.0
$80.0
$20.0
$-
2000 2001 2002 2003 2004 2005 2006 2007
Acquisition Timeline
Organic
Ideal
Acquisition Consolidated
Huntington
HKEC: 3-D Service
Boardman Mobile Martell S.B . Weston Martell Valpo. Cincinnati AMP Canada
2
84 70,576 3 N/A ‘05(2)
American Motive
Power 1
68 250,000 1 N/A 2008
1
17 6,000 1 2004 N/A
2 1
86 41,004 3 ‘03, ’05 2004
1
41 15,360 1 N/A 2007
MIGL TOTAL 25
702 712,724 19 6 12
Growth Driver: End-Market Diversification
Rail
$144 billion
Marine
$4 billion
Transit
$65 billion
Construction
$24 billion
Utilities
$554 billion
Petrochemical
$101 billion
Steel
Energy/ $574 billion
Renewable Power 26
$204 billion
Leveraging Complementary Business Units
Divisional Cross-Selling
– Diversified business segments offer customers a wide range of industrial-based services
– “One-stop-shop” for Blue Chip customers
– Increased penetration reduces cost for customers, drives MISCOR profitability
– Case Study: Australia Rail Group
27
Sizing the Market Potential
28
Evolution of a National Leader
Long-Term Plan
2008 – Beyond: Our Future
29
Favorable Industry Tailwinds
Aging U.S. Industrial Base: As equipment and motors continue to age, companies
turn to preventative, predictive and remanufactured goods as a valuable cost-saving tool
30
Financial Overview
Gross Profit
Sales
$6,000
$35,000
$30,000 $5,000
$25,000 $4,000
$20,000 $3,000
$15,000
$2,000
$10,000
$1,000
$5,000
$0
$0 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08
3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08
$1,200 $2,000
$1,800
$1,000 $1,600
$1,400
$800
$1,200
$600 $1,000
$800
$400 $600
$400
$200
$200
$0 $0
3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08
31
Investment Catalysts