Investor Presentaiton
...and Cactus is Well Prepared for a Recovery
Highlights
■ Positive operating leverage
generally benefits margins as
revenue increases
■Incremental EBITDA margins were
strong during the last market
recovery (2017)
■ Slower activity environment
provides opportunity to improve
internal processes and provide
solutions to issues faced by clients
■ Portion of cost savings achieved to
date expected to be maintained
through the cycle
2017 Incremental EBITDA Margins(1)(2)
45%
80%
28%
G
43%
■ Cactus has maintained key sales &
engineering talent through the
downturn
(3)
Product
Rental
Field Service &
Other
Total Adj. EBITDA
Total Company Incremental Adjusted EBITDA Margins Over 40% in 2017(2)(3)
The Appendix at the back of this presentation contains a reconciliation of EBITDA and Adjusted EBITDA to net income, the most comparable financial measure calculated in accordance with GAAP.
Product, Rental and Field Service & Other incremental EBITDA margins represent annual change in category gross profit (excluding depreciation & amortization) divided by change in category revenue in 2017 versus 2016. Incremental Total Adj. EBITDA margin represents
change in annual Adjusted EBITDA divided by change in annual revenue in 2017 versus 2016.
1.
2.
3.
Includes selling, general and administrative expenses.
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