imt slideshare3.2

14
International Metals Trading, LLC Transforming the NYC Skyline

Upload: peter-faggioni

Post on 13-Apr-2017

66 views

Category:

Economy & Finance


0 download

TRANSCRIPT

Page 1: Imt slideshare3.2

International Metals Trading, LLCTransforming the NYC Skyline

Page 2: Imt slideshare3.2

Acquisition, fabrication and resale of steel reinforcement bar of all grades & sizes

International Metals Trading, LLC, through its subsidiaries, supplies & services the superstructure & civil construction market in the New York Metropolitan Area

Installation of rebar, wire mesh, couplers, etc.

Purchase, sale & risk management of all materials

2

Page 3: Imt slideshare3.2

International Metals Trading, LLC

IMT Steel acquires, fabricates & distributes steel rebar for superstructure & civil construction companies in the New York Metropolitan Area

Reinforcing bars are cut to length & bent to specific configurations according to detailed drawings for each projects unique needs. Our teams expertise & dedication provides a "Best in Class" experience. We take this value adding process very seriously which is reflected in our backlog of contracts.

3

Page 4: Imt slideshare3.2

International Metals Trading, LLC

Installation of rebar for superstructure & civil construction companies in the New York Metropolitan area.

Rebar installation is essential to a project’s structural integrity. IMT formed Rebar Masters, LLC (“RBM”) to capitalize on our deep relationships in the New York metropolitan construction market. Skilled lathers assemble the steel rebar into a frame on site. Lathing is a labor-intensive process of hoisting, placing and tying rebar into position to accommodate the concrete pour and establish structure and shape.

4

Page 5: Imt slideshare3.2

International Metals Trading, LLC

Industry experts oversee & manage the various commodity risks associated with the purchase of all materials contracted

The trading between our suppliers and our end customers requires proficient risk mitigation. Our industry experts manage the various commodity risks using proper hedging strategies and construction contracts. All materials that are purchased for resale go through this process accompanied by forward selling agreements. This technique has given IMT the ability to protect our cash flow and control pricing for our customers.

5

Page 6: Imt slideshare3.2

INDUSTRY OVERVIEW

Steel rebar is most commonly used as a tensioning device to reinforce concrete.

Concrete is a material that is very strong in compression, but virtually without strength in tension.

To compensate for this imbalance, concrete is poured around a grid work of rebar that will reinforce the concrete as well to help hold the concrete in a compressed state and carry the tensile loads.

6

Page 7: Imt slideshare3.2

6

"New York City is entering what could be the biggest building boom in a generation"- Wall Street Journal, 2015

Industry experts forecast spending in excess of $220 billion on new construction over the next 5 years in New York City.

Our Market:

7

The NY Building Congress anticipates government construction spending will rise to $14.5 billion in 2016 and $16.3 billion in 2017.

Non-residential construction spending is expected to take another substantial leap forward — to $15.0 billion in 2016.

Forecast calls for 30,000 new units and $11.5 billion of residential construction spending in 2016.

Page 8: Imt slideshare3.2

International Metals Trading, LLC

TRENDS IN 2016

Investment in Metropolitan Infrastructure

The world's biggest metropolitan areas are in need of massive infrastructure investment for improvement and replacement of water, sewer, transportation and other public service systems servicing the ever changing needs of businesses and residents in these heavily populated areas offer unique opportunities.

Vertical Building Trend

The integration of single space office, residential, retail and entertainment facilities is a growing trend. This vertical trend is expected to expand suburban cities in years to come. The vertical, multi-use expansion of aging properties on prime land will promote significant reinvestment and tax base expansion.

Building Green

There are several reasons to build greener, more energy-efficient buildings. To begin with, long-term operating costs will be lower, which will likely more than offset higher construction costs. Next, many companies see great public relations benefit in the ability tostate that their new factory or headquarters building is environmentally friendly.

8

Page 9: Imt slideshare3.2

International Metals Trading, LLC

TRENDS IN 2016

Out With The Old, In With The New

Much of Manhattan’s office space was built before 1970. This older commercial stock will continue to drive new development in order for New York to remain competitive with other global cities such as Hong Kong and London.

The number of 1,000’+ buildings in New York City may triple by 2020, with new structures spanning different uses and various price-points. Recent changes in technology and the scarcity of land have brought about fundamental changes in cost feasibility and development. This allows builders to construct taller buildings in a more efficient manner.

Surge In Super-tall Construction Industry Consolidation

Development and construction companies are acquiring suppliers for the purpose of project productivity, cost controls, and supply chain management. These cross-industry consolidations are a mounting trend that experts say will redefine how the New York development and construction industries operate.

9

Page 10: Imt slideshare3.2

10

WHY INTERNATIONAL METALS TRADING?

Problem:

In a competitive market, the bidding process is key. It is important to accurately bid jobs, as underbidding can quickly damage profitability and cash flow. Superstructure projects can span 6 to 12 months, or even longer. Forecasting the escalation of material costs over that time, can deliberately force contractors to overprice a job. This common practice often results in losing the bid altogether.

Solution:

One of our competitive advantages here at IMT is our ability to hedge material against potentially rising cost. A material hedging sophistication that marries our financial expertise with our manufacturing expertise. This enables us to lock in your price from start to completion of your project, mitigating the risk of rising material costs and any need for escalation clauses in our contracts. This is where IMT's trading desk plays an integral role to maintain, reduce and control costs associated with any given project.

Our entire business revolves around servicing our customers. Our team boasts 60 years of experience servicing and supplying NYC construction. A successful track record of delivering the agreed upon material, at the agreed upon time is just as important as thequality of our product. Proven reliability, financial stability and familiarity with our customers has won us new and return business.

International Metals Trading, LLC

10

Page 11: Imt slideshare3.2

International Metals Trading, LLC

Moving to a new state of the art facility

Running two shifts and the implementation of these and other new efficiencies at this larger space, IMT will have the ability to process 12,000 tons of steel rebar each month – or 144,000

tons each year (288,000,000 lbs) and generate a gross margin of $360 per ton or 41%

Four 5 ton overhead cranes One 15 ton overhead crane

Six lifting magnets

Moving from 32k sq ft to 54k sq ft facility

11

Page 12: Imt slideshare3.2

International Metals Trading, LLC

Our Growth

2016 Forecast:275% YoY Revenue Growth

250%YoY EBITDA Growth90,000 ton backlog of signed rebar contracts

No Debt

2014 2015 2016 2017 2018

Revenue $6,843,933 $20,711,272 $78,197,658 $140,272,239 $190,821,553

EBITDA $288,778 $1,170,244 $4,147,850 $19,535,979 $20,969,340

12

Page 13: Imt slideshare3.2

International Metals Trading, LLC

"Opportunities come

infrequently. When it

rains gold, put out the

bucket, not the

thimble." Warren Buffet

13

Page 14: Imt slideshare3.2