the contents of this presentation may contain forward-looking comments based on current expectations...
TRANSCRIPT
September 16, 2014
2014Annual Stockholders’ Meeting
The contents of this presentation may contain forward-looking comments based on current expectations that involve a number of risks and uncertainties. Actual results could differ materially from those projected or suggested in the forward-looking comments. The difference could be caused by a number of factors, including, but not limited to the factors and conditions that are described in Elecsys Corporation's SEC filings, including the Form 10-K for the year ended April 30, 2014. The participant is cautioned that Elecsys Corporation does not have a policy of updating or revising forward-looking statements and thus he or she should not assume that silence by management of Elecsys Corporation over time means that actual events are bearing out as estimated in such forward-looking statements.
Safe-Harbor Statement
1) Welcome and Introductions
2) Business Meeting
3) Review of Operations
4) Questions and Answers
5) Preliminary Report of Inspector of Elections
6) Adjourn
7) Optional Facility Tour
Agenda
MACHINE-TO-MACHINE (M2M) SOLUTIONS CONNECTING
INDUSTRY WITH THE WORLD
Premium M2M System SolutionsComplete integrated systemsOngoing customer servicesFocused on specialized applications
Custom OEM Technology SolutionsM2M technology – Private label devices, modemsHigh reliability electronic assembliesCustom displays – Rugged specialty LCD’s
Target Resilient Market SectorsEnergy, food, water, and infrastructureDrivers – technology, demographics, regulation
Business Model
Elecsys Targets• Industrial Markets• Remote Fixed Locations• Critical Applications
M2M Market
Benefits of Industrial M2M
Increase Operational Efficiency• Real-time data enables optimized performance• Remote interface reduces field travel costs / improves safety• Automated reporting to reduce compliance costs
New Revenue Streams• Enable service based offerings• Recurring services and customer interaction
Improve Customer Satisfaction• Reduce service response times• Reduce downtime through proactive maintenance• Provide remote technical support
Major Markets
Energy• Pipelines• Exploration & Production• Regional/Local Distribution• Electric Power Grid• Renewables
Major Markets
Agriculture• Irrigation Systems• Vehicles/Implements• Livestock Operations
Water/Wastewater• Pump Station Monitoring• Water Distribution• Well Monitoring
Transportation• Railroad Wayside Equipment• Commercial Trucking• Aerospace & Military
Major Markets
Revenue by Market – FY2014
Complete M2M System Solutions Secure Data Communications Cellular Data Modems Data Acquisition & Analysis Web-Based Software Systems Enterprise Application Interfaces Rugged Embedded Computers Liquid Crystal Displays (LCD’s)
Patented Technologies
M2M Technology Leadership
Design Engineering Capabilities
Electronic Hardware Embedded Software Application Software Systems Secure Data Communications Database Management Custom Displays & Touchscreens Rugged Mechanical Assemblies
Production Capabilities
Electronic Manufacturing Display Fabrication Communication Modules Electro-Mechanical Assembly
ITAR
Customer Support Services
Application Engineering Equipment Service & Repair Maintenance Programs Field Installation & Training Technical Support
• US, UAE, South Africa, Colombia
The Connected Enterprise
Predictive benefits made possible from Big Data AnalyticsUtilize data for proactive control to optimize operationsControl
Data from large populations of remote field equipmentIndustrial protocols to Open Standard protocol (MQTT)Capture
Enterprise or Cloud based data storage and managementIntegrate multiple data streams from distributed assetsManage
Secure delivery of data to enterprise systems Scalable connectivity through the industrial IoTConnect
Integrate Field Data with the Internet of Things (IoT)
Complete M2M Solutions
Connect
Manage
Capture
Control
Capture – Wireless Remote Monitoring
Reliable and Adaptable Hardware
• Periodic, Exception-based Reporting• Adaptable Modular Platforms• Flexible Communications• Analog/Digital/Pulse Inputs• Data Logging• Control Outputs• Serial/Ethernet Interface• Battery, Solar or Site Power Options
Capture – Industrial Data Communications
Configurable Field Equipment
• Real-time Communications Gateways• Multi-Protocol Conversion• RBE Bandwidth Management• Multipath Communication Management• Field Data Security• Data Logging and Field-Site Storage• Analog/Digital I/O• High Speed Counters• Expansion Data Ports
Capture – Mobile Data Acquisition
Ultra-Rugged Handheld Computers• Waterproof/Submersible – IP67• Shock/Vibration MIL-STD 810• Windows CE• Custom Configurable
• GPS• Cellular Communications• Color Camera• Barcode Reader• Integrated Printer• RFID Reader• Custom Keypads
Capture – Embedded Data Modems
M2M Wireless Technology for OEMs
• Pre-Certified Modules• GSM & CDMA Technologies• 2.5G, 3.5G, 4G
• Cost Effective Product Development• Proven & Reliable Products• Integration Support
• Full Service M2M Solutions• Extended Temperature Range
M2M Solutions Partners
Capture – Custom OEM M2M Solutions
Elecsys M2M Technology for OEMs
• Customized for Specific Applications• Integration with OEM Equipment• Cost Effective Product Development
• Proven & Reliable Solutions• Lower Risk of Design Failures• Quicker Time to Market
Modular M2M Components• Industrial Single Board Computers
• Extended Temperature Range• Flexible Configuration & I/O Options
• Embedded Communications• Custom Interface Designs
Connect
Communication Technologies• Cellular – CDMA, GSM• Satellite – Inmarsat/VSAT• Serial – RS-232/485• Ethernet – TCP/IP• Terrestrial Radio/Fiber
Communication Management• Report by Exception• Multi-Channel Management• Cyber Security
Manage
Hosted Cloud Solutions• SaaS and DaaS• Secure Data Storage• Web-based Access• ANSI/TIA-942 Tier 4 Data Center
Integrated Solutions• Enterprise Data Integration• Host Communications Processor (HCP2)• MQTT, Modbus, DNP3, OPC, …
Control
Access Management• M2M Web Data Portal• Any Internet Connected Device• Secure Client Access
Data Interface Systems• Enterprise System Integration• Human-Machine Interfaces (HMI)• Big Data Analytics Integration• Reporting Tools
Leading Industries• Agriculture• Safety & Security systems• Transportation
Custom Electronic Assemblies• Rugged & reliable electronics• Proprietary Elecsys technologies
Diverse Customer Base of Select OEMs• Stable, industrial companies• Value domestic manufacturing
Custom OEM Electronics
Integrated Display Assemblies
•Custom Integrated Electronics•Proprietary LCD Technology •Sunlight Readable, High-brightness•Touchscreens & Keypads•Rugged Military Grade Displays
Targeted Applications
• Outdoor Locations• Demanding Industrial Environments• Harsh or Extreme Environments• Critical Applications
Custom OEM Display Solutions
Selected Customers
(in thousands, except per share and % data) Apr 30, 2014 Apr 30, 2013 Change
Sales 30,484$ 25,365$ 20%
Gross Margin 11,858 9,374 2,484$ 38.9% 37.0%
Operating expenses 7,831 6,613 1,218$ 25.7% 26.1%
Operating income 4,027 2,761 1,266$
Income tax expense 1,500 1,010
Net income 2,467$ 1,683$ 784$
Per share - diluted 0.62$ 0.43$ 0.19$
Year Ended
Annual Results – Selected Data
April 30, 2014 April 30, 2013(in thousands)
ASSETS:Cash 1,398$ 1,464$ Accounts receivable, net 3,782 2,538 Inventory, net 7,544 6,238 Deferred taxes 644 689 Prepaid expenses and other assets 221 167 Total current assets 13,589 11,096
Property, plant & equipment, net 5,447 5,399
Other assets, net 43 47 Goodwill 1,942 1,942 Intangible assets, net 1,483 1,685
Total Assets 22,504$ 20,169$
Consolidated Balance Sheet
April 30, 2014 April 30, 2013
(in thousands)
LIABILITIES & STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses 3,158$ 2,799$
Income taxes payable 11 -
Current portion of long-term debt 189 185
Total current liabilities 3,358 2,984
Deferred taxes 755 637
Long-term debt less current portion 2,430 2,619
Stockholders' equity 15,961 13,929
Total Liabilities & Stockholders' Equity 22,504$ 20,169$
Consolidated Balance Sheet
Fiscal Year-End: April 30th
Revenues
FY2011 FY2012 FY2013 FY2014 $-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
Fiscal Year-End: April 30th
Operating Income
FY2011 FY2012 FY2013 FY2014 $-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
Fiscal Year-End: April 30th
Earnings per Share
FY2011 FY2012 FY2013 FY2014 $-
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
(in thousands, except per share and % data) July 31, 2014 July 31, 2013 Change
Sales 6,670$ 6,774$ -2%
Gross Margin 2,448$ 2,208$ 240$ % of sales 36.7% 32.6%
Operating expenses 1,987$ 1,755$ 232$
Operating income 461$ 453$ 8$
Net income 273$ 264$ 9$
Per share - diluted 0.07$ 0.07$
3-Month Period Ended
Quarterly Results – Selected Data
Develop New Markets Target New Industries
Prospects for stable, long-term growthDrivers – automation, efficiency, safety
Target Specific Geographic MarketsGrowth economies – resource-rich regionsStable with favorable business climate
Develop New Products
New applications for existing product platforms
New systems to expand opportunities
Growth Strategy
Oil & Gas• Production Wells• Storage Sites• Local/Regional Gas Utilities
Electric Utilities & Regional ISOs• Demand/Response Energy Management• Alternative Energy Grid Integration
Railroads• Wayside Equipment• Communication Infrastructure
Agriculture• Water & Irrigation Management• Environmental Monitoring & Control
Targeted Industries
Geographic Markets
Embedded Cellular Data Modem GSM HSPA+ (4G)
• Global coverage Pre-Certified Modules Industrial Temperature Range
• -30°C to +85°C For OEM M2M Applications
New Product Development
Industrial Data Gateway Edge of Network IoT Gateway Multi-Protocol Translator Communications Management
• Integrated Cellular/GPS• Multi-Channel Control• Cyber Security Suite
Configurable I/O• Analog/Digital Input• Control Output
New Product Development
New Product Development
Remote Digital Link Edge of Network IoT Gateway Protocol Translation Real-time Data Acquisition Communications Management
• Integrated Cellular Modem• Data Security
Sensor/Transducer Link Remote Monitoring System Flexible Measurements
• Two Sensors/Transducers• Two Analog Voltages
Applications• Well Sites• Storage Tanks• Regulator Stations• Valve Sites
New Product Development
Facility Expansion
Capacity for Future Requirements• Total Facility - 85,000 ft2
• Expansion for Engineering & Production
Financing• Municipal Industrial Revenue Bonds• 10-Year 50% Property Tax Abatement• Sales Tax Exemption on Construction
1) Welcome and Introductions
2) Business Meeting
3) Review of Operations
4) Questions and Answers
5) Preliminary Report of Inspector of Elections
6) Adjourn
7) Optional Facility Tour
Agenda
