SCHEDULE 14A
(RULE 14A-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(A)
OF THE SECURITIES EXCHANGE ACT OF 1934 (AMENDMENT NO. )
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Rule 14a-6(e)2))
/ / Definitive Proxy Statement
/X/ Definitive Additional Materials
/ / Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14(a)-12
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(Name of Registrant as Specified in Charter)
THE COMMITTEE TO REVITALIZE DOMINION BRIDGE CORPORATION
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(Name of Person(s) filing Proxy Statement, if other than Registrant)
Payment of filing fee (check the appropriate box):
/X/ No fee required.
/ / Fee computed on table below per Exchange Act Rules 14a-6(i)(1)
and 0-11.
(1) Title of each class of securities to which transaction
applies:
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(2) Aggregate number of securities to which transaction applies:
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(3) Per unit price or other underlying value of transaction
computed pursuant to Exchange Act Rule 0-11 (Set forth the
amount on which the filing fee is calculated and state how it
was determined):
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(4) Proposed maximum aggregate value of transaction:
(5) Total fee paid:
/ / Fee paid previously with preliminary materials.
/ / Check box if any part of the fee is offset as provided by
Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting
fee was
<PAGE>
paid previously. Identify the previous filing by registration statement number,
or the form or schedule and the date of its filing.
(1) Amount Previously Paid:
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(2) Form, Schedule or Registration Statement no.:
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(3) Filing Party:
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(4) Date Filed:
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<PAGE>
DOMINION BRIDGE CORPORATION
SECOND SHAREHOLDERS'
INFORMATION MEETING
The Harvard Club
July 16, 1997
3 PM
The Committee to Revitalize Dominion Bridge
<PAGE>
MARENGERE'S & MATOSSIAN REWARDS
AGAINST
SHAREHOLDERS LOSSES
M&M VS. STOCKHOLDERS
STOCK PRICE
[CHART OMITTED]
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<PAGE>
FORWARD-LOOKING STATEMENTS AND ASSOCIATED RISKS
The following presentation contains certain forward-looking statements.
Such forward-looking statements involve both known and unknown risks,
uncertainties, and other factors that may cause the actual results,
performance and achievements of the Company to be materially different
from any future results, performance or achievements of
the Company expressed or implied in such
forward-looking statements.
The Committee to Revitalize Dominion Bridge
SHAREHOLDERS' INFORMATION
MEETING AGENDA
I. Business Plan:
- 1. Stop Losses in North America.
- 2. Add New Senior Management, Full
Service Capabilities and New
Business.
- 3. Acquire Balance of MDC IF AND
WHEN APPROPRIATE.
- 4. Finance needs Sequentially At Lowest Cost.
The Committee To Revitalize Dominion Bridge
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<PAGE>
SHAREHOLDERS' INFORMATION
MEETING AGENDA (CONTINUED)
II. Where Do We Go From Here?
1. ITS THE PROXY, STUPID! VOTE!
Other Issues Are Secondary.
2. Contingent Value Rights ("CVRs").
3. Legal Issues: New By-Laws Are Legal
The Committee To Revitalize Dominion Bridge
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<PAGE>
THE PROBLEM: STOP THE BLEEDING IN
NORTH AMERICA
o Cash Hemorrhaging From Marengere and The
Board Running This Company!
- 1996 North American Loss: ($15.3) mm
- 1997 North American Loss Est.: ($16.7) mm
o OVER $1 MILLION COSTS OF MARENGERE AND THE
BOARD SPENT TO FIGHT SHAREHOLDERS AND THE
COMMITTEE.
o EST. $7.5 MILLION WRITE-DOWN OF ASSETS
CARRIED AT CORPORATE OFFICE TO THEIR
REALIZABLE VALUE.
The Committee To Revitalize Dominion Bridge
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<PAGE>
THE PROBLEM:
MARENGERE'S AND THE BOARDS' RESULTS
($000,000)
<TABLE>
<CAPTION>
Under Current Management
-------------------------------------------------------------------------
1995 1996 1997 Est
-------- ------------------------------ ------------------------------
3 Years
Total N. Am MDC Total N. Am MDC Total N. Am
----------------------------------------------------------------------------------------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Revenues $155.8 $227.1 $135.5 $362.6 $308.0 $305.0 $613.0 $690.9
Gross Profit 19.6 19.2 19.7 39.0 27.3 41.2 68.5 66.1
------------------------------------------------------------------------------------------------------------
EBITDA 4.2 (10.4) 10.6 0.3 (11.6) 19.2 7.6 (17.8)
EBIT 4.3 (8.3) 7.6 (0.7) (13.3) 12.9 (0.4) (17.3)
------------------------------------------------------------------------------------------------------------
Net Inc. 2.2 (10.1) 6.8 (3.4) (15.8) 8.9 (6.9) (23.7)
Min Int/Pfd 0.2 5.2 1.4 6.6 2.8 2.8 5.4
Net Inc-CS 2.0 (15.3) 5.4 (9.9) (15.8) 6.1 (9.7) (29.1)
============================================================================================================
</TABLE>
The Committee To Revitalize Dominion Bridge
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<PAGE>
STEP #1 SOLUTION
o Reduce Corporate Overhead to $6 million From $14 million
Current Rate.
o Stop Operating Losses at Lachine (Montreal) Facility.
o Eliminate and Recover All Corporate Funds Improperly Spent -
ILL-GOTTEN GAINS.
The Committee To Revitalize Dominion Bridge
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<PAGE>
STEP #2 SOLUTION:
ACTIONS FOR NORTH AMERICA
o Add New Senior Management;
o Create Full Service Capabilities;
o Secure Higher Margin New Business; and
o Increased Revenues of Existing Subsidiaries From Vertical
Integration.
The Committee To Revitalize Dominion Bridge
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<PAGE>
STEP #2 ACCOMPLISHED BY ACQUISITION
OF FIRSTKEY PROJECT TECHNOLOGIES, INC.
o Specializes In Design-Build Systems;
o Design-Build (Turnkey) Management Team Since '79 From
Roche Group, Bracknell Corp. and Bennett & Wright;
o Markets - Canada, Offshore and International;
o Aligned With EDC of Canada for International Financing;
o By 2001, Neat 50% of Non-Residential Construction in No. Am.
Delivered by Design-Build Methods;
o Brings Projected Work of Approximately US $600 million by
End of Year (Now $150 million backlog); and
o Additional Direct Business to DBI, Davie and SB.
The Committee To Revitalize Dominion Bridge
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<PAGE>
BRACKNELL FINANCIAL HIGHLIGHTS
FOR THE YEARS ENDED OCTOBER 31 (millions of dollars, except per share)
<TABLE>
<CAPTION>
1987 1988 1989 1990 1991 1992 1993
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Revenue $90.0 $157.0 $153.6 $174.1 $202.2 $223.7 $190.9
Operating Income (20.0) 15.0 5.8 7.3 11.3 17.1 9.4
Net income (20.0) 15.0 5.0 7.9 10.5 10.1 7.1
Backlog 40.0 96.0 120.0 133.0 147.9 205.2 202.5
Total assets 2.0 2.1 56.0 73.7 77.1 107.9 126.0
Shareholders' equity 1.5 1.5 8.1 16.0 17.9 45.5 73.1
Net income per share $-- $0.84 $0.18 $0.29 $0.42 $0.48 $0.29
Average common shares 12.6 12.6 15.0 15.2 17.0 21.3 24.9
---------------------------------------------------------------------------------------------------
Share price in 1987 = $0.58; in 1993 = $9.50
</TABLE>
1993 Highlights Bracknell Corporation
o Year end backlog $202.5 million. First year of backlog exceeds prior
year's comparable by 8%.
o Year end cash and short-term investments of $38.3 million and no funded
debt
o Raised $20.4 million of capital and increase shareholders' equity to
$73.1 million ($2.78 per share)
o Increased revenue in a steady stream from $90 million to $223 million
o Managed the fall in commercial construction sector starting in 1993
o Expanded The State Group's multi-trade capability every year
o Capitalized Bracknell operating units as separate legal entities,
resulting in liability containment, bonding maximization, marketing and
operational differentiation
o Capitalized on privatization awards
o Our five year plan paid off.
o TSE top 100 company
The Committee To Revitalize Dominion Bridge
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<PAGE>
PROPOSED ORGANIZATION STRUCTURE
[CHART OMITTED]
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<PAGE>
FINANCIAL EFFECTS OF STEPS # 1 & 2
Dominion Bridge Corporation
<TABLE>
<CAPTION>
($000,000) North American Operations - Includes FirstKey
------------------------------------------------------------------------------------------
Current Management The Committee
--------------------------------------------- -------------------------------
1995 1996 1997E 1998E 1999
Sales $155.8 $227.1 $308.0 $574.0 $930.0
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Gross Profits 19.6 19.2 27.3 69.2 116.2
As % 12.6% 8.5% 8.9% 12.1% 12.5%
EBITDA 4.2 (10.4) (11.6) 20.5 49.0
As % 2.7% -4.6% -3.8% 3.6% 5.3%
EBT 3.9 (10.5) (17.7) 12.9 42.9
Net Income 2.2 (10.2) (16.7)
Net Income For CS 2.0 (15.3) (16.7) 9.7 29.2
=============================================================================================
As % 1.3% -6.7% -5.4% 1.7% 3.1%
</TABLE>
The Committee To Revitalize Dominion Bridge
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<PAGE>
STEP # 3 SOLUTION:
ACQUISITION OF MDC
o Rationalize Dominion Bridge's Corporate Finance;
o MDC is Currently Only A Portfolio Investment;
Transaction Must:
- Be Non-Dilutive to DBCO Shareholders;
- Within the Breakpoint Defined By:
o MDC Present and Future Earnings
Power to DBCO;
o Price (Cost) to Achieve 90%;
o Financing Cost and Structure; and
o Prevailing Exchange Rates.
The Committee To Revitalize Dominion Bridge
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<PAGE>
STEP # 4: FINANCE NEEDS SEQUENTIALLY AT
LOWEST COST
FINANCING PHASE 1
o Assess Situation Immediately;
o Determine Working Capital Needs: $20 - $25 million;
o Confident That Can Finance Majority On Asset-Backed Basis
With Canadian US Financial Institutions;
o Committee Approached By Interested Institutions Who "Want to
Bank the New Team."
o No Financing Expected Until Control Issue Resolved.
The Committee To Revitalize Dominion Bridge
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<PAGE>
FINANCING PHASE 2
o FirstKey Acquisition Predominately FINANCED BY EARNOUT;
o FirstKey is EPS Accretive - HIGHLY ANTI-DILUTIVE
o FirstKey Business Is HIGHLY CASH FLOW POSITIVE - Contributes
to Operational Cash
The Committee To Revitalize Dominion Bridge
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<PAGE>
FINANCING
PHASE 3: MDC SHARES
o MDC Acquisition IS NOT TIME SENSITIVE;
o Earnings and EBITDA in North America Restored by FirstKey
acquisition;
o No Need For Financing Until Time and Conditions Are Right
For DBCO!
o Closely Integrate MDC in Meantime.
The Committee To Revitalize Dominion Bridge
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<PAGE>
STEPS 1, 2, 3 & 4
ACCOMPLISH
o New Management To DBCO Team
- John Kuhns, Ken Mariash, John Dutton, Clarence
Boudreau, Richard Morency, and John Perry
(Trevor Morgan of MDC To Be Invited On
DBCO Board), to be compensated based on
performance.
o Delivery of Turn Key Capabilities and Revenue Growth Through
Vertical Integration;
o A Properly Accounted For and Financed Organization; and
o A True Bottom Line.
The Committee To Revitalize Dominion Bridge
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<PAGE>
II. WHERE DO WE GO FROM HERE?
o Status of Proxy;
o Contingent Value Rights (CVRs);
o Legal Questions;
The Committee To Revitalize Dominion Bridge
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<PAGE>
IN SUMMARY
o Where Is Dominion Bridge Today?
o Where Can Dominion Bridge Be Tomorrow?
o THE ANSWER IS YOURS!
O YOUR VOTE AND YOUR CONTRIBUTION DETERMINE THE
ANSWER.
The Committee To Revitalize Dominion Bridge
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