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| 8-K - FORM 8-K - Computer Software Innovations, Inc. | d8k.htm |
 Computer Software Innovations, Inc.
OTC BB: CSWI
Investor Presentation
April 2010
1
Exhibit 99.1 |
 Safe
Harbor 2
This presentation contains “forward-looking statements” – that is, statements
related to future, not past, events. In this context, forward looking statements often address
our expected future business and financial performance, and often contain words such as
“may,” “could,” “should,” “expect,”
“believe,” “seek,” “estimate,” “predict,” or
“project.” Forward-looking statements by their nature address matters that are,
to different degrees, uncertain. For us, particular uncertainties arise from economic health of
the software and technology industry, demand for CSI’s products and engineering services,
competitive pricing pressures and the availability of necessary financing. In addition, other
risks are more fully described in CSI’s Form 10-K and other filings with the Securities and
Exchange Commission. These uncertainties may cause our actual results to be materially
different from those expressed in our forward-looking statements. We do not undertake to
update our forward-looking statements.
|
 CSI,
Inc. Overview OTCBB:CSWI
Headquarters:
Easley, SC
215 Employees
4 offices
Provider of software and technology solutions to education
and local government markets
Customer base: 800+ K-12 school districts,
colleges/universities, city/county governments, non-profit
organizations
Software Applications Segment
•
Financial Management Software
•
Version3 Identity Life Cycle Management
•
CSI@K12 Communications and Collaboration Solutions
Technology Solutions Segment
•
21
st
Century
Connected
Classroom
•
Convergence Applications –
IP telephony, surveillance, video
•
Network Infrastructure & end-devices
•
Infrastructure Management –
monitoring, performance,
maintenance
3 |
 Increase Customer Base In Existing Markets
Leverage Current Solution Portfolio:
–
Sell CSI Solutions To Customers Gained In Acquisitions
–
Cross-Sell Existing Customers
Continue Expanding Geographic Footprint Organically and by
Acquisitions
Expand Intellectual Property Portfolio through
–
Organic Product Development, including cloud-based solutions
–
Acquisitions
Potential to more than double EBITDA in next 5 years
Growth Drivers
4 |
 600
customers in 8 southeastern states Strong Gross Margins
>50% Recurring Revenue
Solutions
Include:
Financial
Management,
Billing
and
Revenue
Management,
Payroll/Human Resources, School Activity Accounting, eGov, Document Services
Type of
Customers
Growth by Acquisitions Financial Management
Software 5 |
 Customers throughout US as well as Canada and UK
Customers
include
some
of
the
US’s
largest
school
districts
Solutions Include:
Version3 Identify Life Cycle
Management
6 |
 Version3 Identify Life Cycle
Management
Provisioning
Active Directory
(or other directories)
Exchange
(Other email systems)
CSI@K12
Home Folders
E-Portfolio / Archive
Applications –
Local /
Hosted
Orchard, PlatoWeb, Destiny,
etc
(API Support) (Supports SIF)
Scheduled
Event
Authoritative
Source
SIS or
HR
Systems
Cloud
Computing |
 Developed in partnership with Microsoft and based on Live@edu, a
hosted email solution for education market
Provides a cloud-based instructional communications management
solution
–
Manages regulatory compliance and security standards for K-12 email
–
Integrates a portal experience for educators, students and parents
–
Provides access to email, homework and class tasks, network files
Funded through federal E-rate program
Expect significant revenue growth from this solution in late 2011-
2012
CSI@K12 Communication and
Collaboration Solution
8 |
 School rooms with
Internet
access
1
1994: 3%
2005: 93%
Public schools providing
handheld computers
to
students
or
teachers
1
2003: 10%
2005: 19%
K12
enrollment
in
South
region projected to
grow 17% through
2016–
highest growth in the
country
1
U.S. has highest
growth rate
for interactive
white
boards
2
55% in 2007
9
1
Source: Dept. of Education-
Nat’l Center for Education Statistics
2
Source: Decision Tree Consulting 2008 Study
21
st
Century
Connected
Classroom |
 Cross-Sell Existing
Customers
10
Technology Solutions
Network
Infrastructure &
End-Devices
Connected
Classroom
Infrastructure
Management
Convergence
Applications |
 Grow via continued expansion into new geographies
Total
U.S.
11
Nationwide Prospects
CSI
Core Markets
3,100 County Governments
36,000 City Governments
14,000 School Districts
Total
U.S.
1
Source: Dept of Census
2
Source: National League of Cities
3
Source: Dept. of Education
-
National Center for Education Statistics
3
2
1 |
 Summary of Capitalization as of 4.15.10
Common Shares Outstanding
7.0 M
F/D Shares Outstanding
13.7 M
Full Potential Diluted
14.2 M
52 Wk Trading Range
$ 0.40 -
$1.15
Current Share Price
$ 0.68
Current Market Cap
$ 4.8 M
Management/Board/Insider
Ownership
4.0 Million Shares
= 57% of Common
outstanding
; 28% outstanding shares
(common & preferred)
Select Financials
12
Key Statistics -
Dec 31, 2009
Fiscal Year Ends
Dec 31
EPS (Fully Diluted) 2009
$ 0.02
Revenue FY 2009
$ 51.8 M
EPS (Fully Diluted) 2008
$ 0.11
Revenue TTM
$ 51.8 M
Total Assets
$ 18.8 M
EBITDA
FY 2009
$ 3.5 M
Total Debt With Sub-Debt
$ 2.4 M
EBITDA
FY 2008
$ 5.1 M
Without Sub-Debt
$ 0.6 M
3
EBITDA is a non-GAAP financial measure. See reconciliation to GAAP measure
provided in our Earnings Release for our
year
ended
12/31/2009
at
www.csioutfitters.com.
2
TTM: Trailing Twelve Months is a sum of the past 12 month timeframe.
1
Common shares outstanding includes 0.5 M shares held in trust related to Version3
acquisition. 2
3
3
1
1 |
 Select Financials
($ in millions)
13
Revenues and Gross Profit
5-Year Trend |
 14
Select Financials
Operating Income , Net Income , EBITDA & Cash Provided by (Used
for)
Operations 5-Year Trend
($ in Millions)
1
EBITDA is a non-GAAP financial measure. See reconciliation to GAAP measure in
our earnings release for our year ended
12/31/2009 at www.csioutfitters.com.
Operating Income and Net Income have declined more than EBITDA due to
increased Amortization from Intangible Acquisitions. New product developing
and acquired from Acquisitions provides the potential to double EBITDA over
the next 5 years, over 2008 levels. 1
1
1 |
 Select Financials
15
Balance Sheet 3-Year Trend
1
Includes deferred revenue, such as revenue from recurring support agreements.
($ in Millions) |
 Nancy
K. Hedrick •
CEO & President
•
30 yrs in IT
•
President of CSI since 1989
Thomas P. Clinton
•
Sr. VP of Strategic Partnerships
•
25 yrs in IT
•
VP at CSI since 1999
David Dechant, CPA
•
Chief Financial Officer
•
25 yrs in Finance
(including Conso Int’l Corp & Warner-Lambert)
•
CFO at CSI since 2005
Beverly N. Hawkins
•
Sr. VP of Product Development
•
24 yrs in IT
•
VP of CSI since 1989
William J. Buchanan
•
Sr. VP of Delivery & Support
•
25 yrs in IT
•
VP at CSI since 1999
Senior Management Team
16 |
 Advantages of business model
–
Strong gross margins
–
Recurring revenue stream
–
Proprietary software solutions and diversity of our offerings
–
Focused on public sector markets with continuous budgets
Positioned for continued growth
–
Strategic investments in new products and enhanced offerings
–
Customer base growth in existing markets
–
Leverage solution portfolio with newly acquired and existing customers
–
Continue expanding into new geographies
Investment Summary
17 |
 Company Contact
David Dechant, CFO
ddechant@csioutfitters.com
Telephone: 864.855.3900
Company
Website:
www.csioutfitters.com
Investor Contact
DC Consulting, LLC
Daniel Conway
daniel@dcconsultingllc.com
Telephone: 407.792.3332
18
Contact Us
OTC BB: CSWI |