2. This presentation contains certain statements that may be deemed "forward-looking statements". All
statements in this document, other than statements of historical fact, that address events or
developments that Lonestar West Inc. (“the Company”) expects to occur, are forward looking
statements. Forward looking statements are statements that are not historical facts and are generally, but
not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates",
"projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could"
or "should" occur.
Although the Company believes the expectations expressed in such forward-looking statements are
based on reasonable assumptions, such statements are not guarantees of future performance and actual
results may differ materially from those in the forward- looking statements. Factors that could cause the
actual results to differ materially from those in forward looking statements include, failure to
successfully negotiate or subsequently close such transactions, inability to obtain required shareholder
or regulatory approvals, uncertainty with respect to findings under exploration programs and general
economic, market or business conditions. Investors are cautioned that any such statements are not
guarantees of future performance and actual results or developments may differ materially from those
projected in the forward-looking statements. Forward looking statements are based on the beliefs,
estimates and opinions of the Company's management on the date the statements are made. The
Company undertakes no obligation to update these forward-looking statements in the event that
management's beliefs, estimates or opinions, or other factors, should change.
3. CANADA
HEAD OFFICE:
Sylvan Lake, Alberta
UNITED STATES
BASES:
Fort McMurray, Alberta
Bonnyville, Alberta
Edmonton, Alberta
Carlyle, Saskatchewan
Melita, Manitoba
U.S.A.:
Elk City, Oklahoma
Sacramento, California
Odessa, Texas
San Antonio, Texas
4. The process of excavating rock
and soil to expose underground
utilities and pipelines.
Uses pressurized water to agitate
the earth, and a powerful vacuum
to remove the soil and debris.
Non-destructive method of
excavating which replaces a
conventional backhoe
and manual digging.
5. Safer and faster than traditional
excavation methods when operating
around sensitive infrastructure.
Can excavate frozen ground
because of onboard water heaters.
Reduces environmental liability
and potential restoration costs.
6. A new HVAC truck
costs $475,000.
Lonestar currently
operates 54 HVAC trucks.
8. • 80 HVAC trucks (estimated)
• North America’s largest
provider of non-destructive
daylighting services
• 340 HVAC trucks
in Canada
• 408 HVAC trucks
in the U.S.
• 80 HVAC trucks (estimated)
• Over 60 smaller HVAC trucks
9. A new VAC truck
costs ~$400,000.
Lonestar
currently operates
10 VAC trucks.
Broad based
competition.
10. • Remove drilling fluids
• Disposing of fluids in either
spread fields or authorized
disposal facilities
• Non-destructive testing
• Fuel tank cleaning
• Spill cleanup
• Car wash
• Flood damage
• Septic tanks
• Sewers
11. • Strong Health, Safety & Environmental
Program (HSE).
• AASP approved Certificate of Recognition
(COR).
• Prequalified by ISNetworld, Complyworks,
Canqual & PIC’s Auditing as a low-risk
supplier.
• Continuously evolving HSE program to stay
ahead of changes in the industry.
• GPS monitoring enhances safety.
• Low lost-time incident frequency.
12. Increased efficiency,
saving time and money.
Trained to be safe
and efficient.
Qualified for major
corporate accounts.
Over 100 years combined
management experience.
Under founding
management.
13. Issued:
Fully Diluted:
• Insiders:
• CEO owns
• Public float
9.4 m
7.1m
5.4 m
Total Issued:
21.9 m
• Options:
1,299,000
23.2 m
Financings:
•
•
•
•
Dec/08 $1.2m IPO @ $0.50
Aug/11 $1.2m @ $0.60
Nov/12 $3.04m @$1.40
July/13 $10.1m @ $2.60
15. California (8) –
Oklahoma (7) – Texas
(2) (Oct/13 start).
California
(infrastructure) OK &
TX (oil & gas).
U.S. growth – 2 trucks
(Jan/13) to 17 (Oct/13).
Add one more by
yearend 2013.
U.S. expansion
negatively impacted
cash flow until late
Q1/F14 due to startup costs.
U.S. operations now
profitable, growing
and focused to
underpin revenue
and cash flow growth.
California has fewer
Hydrovac trucks than
are located in
Edmonton!
16. ( $ millions )
$50.00
$5
$45.00
$40.00
$35.00
$27.89
$30.00
$25.00
$18.62
$45
$20.00
$15.00
$10.00
$11.15
$5.54
$6.33
F 09
F 10
$8.30
$5.00
$-
F 11
F 12
F 13
Q1 14
F 14 (f)
17. ( $ millions )
$9.00
$9.00
$8.00
$7.00
$6.00
$6.75
$5.00
$4.20
$4.00
$3.02
$3.00
$1.72
$2.00
$1.00
$0.91
$0.47
$0.11
$F 09
F 10
F 11
F 12
F 13
Q1 14
F 14 (f)
18. Officers
James Horvath – President & Chief Executive Officer
Kristin York – Vice President
Kristina Scade – Chief Financial Officer
Directors
James Horvath – President & Chief Executive Officer
Tracy Graf – CEO, Carfinco Financial Group Inc.
Joe MacLean – President and CEO, AOI Capital, LLC
Maurice Kagan – CEO, Danika Associates Limited
David Prussky – Director, Patica Securities Limited
Senior Managers
5 senior HVAC and Vacuum managers
19. Quickly becoming a noted
competitor in the
Canadian HVAC industry.
Large and growing
client base.
Diversified: energy,
infrastructure & mining.
U.S. Expansion.
Oklahoma, Texas (energy)
California (utilities & infrastructure)
22. Lonestar West Inc.
TSX Venture Exchange: LSI
December 2013
For further information, please contact:
lonestarwest.com
Lonestar West Inc.
Box 1026, RR #1
Sylvan Lake, Alberta
T4S 1X6
Phone: 403-887-2074
Fax: 403-887-2178