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TRANSCRIPT
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Pointer Telocation
David Mahlab, CEOMay 2018
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This presentation contains forward-looking statements including data with respect to the growth in location based and other services. All such forward-looking statements are only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations. Actual performance and results of operations may differ materially from those projected or suggested in the forward-looking statements due to certain risks and uncertainties including, without limitation:
§ our future operations depend on our ability to obtain additional financing;
§ we rely on third-party operators to provide services for our location-based solution systems;
§ we rely on a few suppliers to manufacture the car-based devices for our location-based solution systems;
§ the technology and standards in the stolen vehicle retrieval industry in which we operate change rapidly and the introduction of products using new technology
and the emergence of new industry standards and practices could negatively impact our business;
§ our location-based solution products employ proprietary technology which is difficult to protect and which may infringe on the intellectual property rights of
third parties;
§ our ability to timely obtain components from our suppliers or to timely deliver through our subcontractors or vendors;
§ the impact of exchange rate and interest rate fluctuations on our fixed price contracts, financial condition and results of operations;
§ our ability to timely develop and introduce new technologies or enter new markets;
§ our ability to respond to the introduction of new technology or new industry standards and practices in the stolen vehicle retrieval and location based services
industries;
§ our ability to retain and attract key managerial, technical and research and development personnel; and
§ our ability to respond to political or military conditions in the countries in which we operate.
Further information on potential factors that could affect our business is described in our reports on file with the Securities and Exchange Commission. Presentation of non-GAAP Financial Information: This presentation contains both GAAP and non-GAAP financial information pertaining to actual results and estimates of future performance. Non-GAAP financial information includes EBITDA information.
FORWARD LOOKING STATEMENTS
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POINTER
Introducing
Click for video
https://www.youtube.com/watch?v=Ds8KMakEZmg
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WHO WE ARE
Provider of high-end Telematic SolutionsSupporting business decisions for fleet and mobile asset managers
Growth Markets focusUSA, India, Israel, Latin America
Cloud-based recurring service revenueSolid base of subscribed customers broadening consistently
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PNTR 265k 670
KEY FINANCIAL METRICS SHAREHOLDERS
Q1 2018 SUBSCRIBERS
EMPLOYEES$117m
MARKET CAP
as of May 15, 2018
POINTER AT A GLANCE
REVENUEUS$ MILLIONS
OPERATING INCOMENON-GAAP, US$ MILLIONS
+15% YOY growth
TEL AVIV
Q1 2017 Q1 2018
19.0 20.9
Q1 2017 Q1 2018
2.6 3.1
10%19%
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DBSI27%
Free Float73%
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LONG-TERM GOALS
Provider of high-end services to tomorrow’s mobility industry
Capitalize on a $55bn+ TAM opportunity
Double revenue in 3-5 years
MAAS/Fleet Management
AssetTracking
$34.6bn24% CAGRthrough 2022
$20.5bn32% CAGRthrough 2020
Source: Research and Markets; Markets and Markets;
EBITDA margins to reach 20%+
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SELECTED CUSTOMERS
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Service Providers AutomotiveDistribution & Logistics
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Mexico
Argentina
Brazil
265k active subscribers (SaaS and SVR - recurring revenue) in 6 countries 3m+ product units installed in 80 countries
Technology & Products MRM SAAS Services
Israel*Americas*
39%
6%
45%
ROW*
4%
Europe*
* % of FY 2017 revenues
GLOBAL PRESENCE (Technology / Services)
Africa*
6%
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SUBSCRIBER GROWTH
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118140,000
160,000
180,000
200,000
220,000
240,000
260,000
NUMBER OF SUBSCRIBERSAS OF PERIOD-END 265k
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PRODUCTS & SERVICES
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POINTERS MRM SOLUTIONS
Asset Management
Telematics Unit: Cellotrack Nano
Telematics Unit: Cellotrack CanIQ
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Eco-Driving Connected Car
Goods in Transit
BROAD TELEMATICS SERVICE OFFERING
MOBILE ASSET MANAGEMENT
Click for video
Click for video
FLEET MANAGEMENT
Advanced Decision Support Systems
Road Traffic Safety
Distribution Optimization
Asset Management
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../2015/Pointer_Driver Behavior.wmv../2015/Lubinski - English.mp4../2015/POINTER_Nano_SHORT_VERSION.wmvhttps://www.youtube.com/watch?v=Bd2KBipa_nQhttp://youtu.be/tM0V2fUxcRk
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GROWTH STRATEGY
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ACCELERATED GROWTH STRATEGY
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Complement organic growth with acquisitions
Goal: Scale up subscriber base
Looking for: fleet/mobile asset management in our focus markets
Leverage existing infrastructure: adding new subscribers at low incremental costs
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• by (@3.4x revenue)
• by (2.2x revenue)
• by (1.6x revenue)
• by (@6.8x revenue)
• by (@1.5x revenue)
Private deals:• by (@$3.1k/sub)
• & by
• , & by
• by
• by (@8x revenue)
HIGH LEVEL OF SECTOR M&A
Recent acquisitions of public co’s:• Fleetmatics by Verizon (@~32x EV/EBITDA & $3k/sub)
• Lojack by Calamp (@16x EV/EBITDA)
Economies of scale + fragmented market leading to -> M&A activity
Hundreds of small players; ongoing sector acquisitions at premium valuations;→ Cellular operators (e.g. & ) entering the arena
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• by (@2.5x revenue)
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FINANCIALS
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Products
REVENUESUS$ MILLIONS
Services
Q1 2018 FINANCIAL HIGHLIGHTS
OPERATING INCOME & MARGINNON-GAAP, US$ MILLIONS & % OF REVENUE
EBITDA & MARGINEXCL. ONE-TIME ACQ. RELATED COSTS US$ MILLIONS & % OF REVENUE
BREAKDOWN BTW SERVICES & PRODUCTS%
ProductsServices
Q1 2017 Q1 2018
3.1 3.5
16.3%
17.4%
66% 34%
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Q1 2017 Q1 2018
25
20
15
10
5
0
6.7 7.1
12.3 13.8
19.020.9
Q1 2017 Q1 2018
2.6 3.1
13.7%14.8%
10%
14%19%
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Q1 2018 RESULTS SUMMARY
Subscriber growth +15% YoY to 265k subs; Service revenue $13.8m +12% YoY ; overall revenue $20.9 +10% YoY Service gross margin at 58.7% vs 56.6% in Q1 last year;EBITDA (Ex. Acq. related costs) of $3.5m; Operating cash flow in Q1 of $2.3m;
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SUMMARY
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THE OPPORTUNITYWell Positioned for significant growth in the Internet of Vehicles, Mobile Asset Management and MAAS markets
Low-Risk Business Model: 2/3 revenue is recurring cloud-based with significant operating leverage
Strong free cash flow generationHigh Operating Leverage in Model
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Focused on Shareholder Value Creation
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Thank You!
2018-05-17T09:28:23+0000Not specified