Attached files
| file | filename |
|---|---|
| 8-K - 8-K - MICT, Inc. | zk1415748.htm |
| EX-99.1 - EXHIBIT 99.1 - MICT, Inc. | exhibit_99-1.htm |
Exhibit 99.2
3Q 14 Financial Results
Conference Call
Forward Looking Statement
This presentation contains express or implied forward-looking statements within the Private Securities Litigation
Reform Act of 1995 and other U.S. Federal securities laws. These forward-looking statements include, but are not
limited to, those statements regarding our continued growth, our strategy to become the major supplier of
rugged tablets to the multibillion MRM growing market, the growth of our aerospace and defense business, our
revenues expectation for 2015, and our expectations regarding future higher margins and profits. Such forward-
looking statements and their implications involve known and unknown risks, uncertainties and other factors that
may cause actual results or performance to differ materially from those projected. The forward-looking
statements contained in this presentation are subject to other risks and uncertainties, including those discussed
in the "Risk Factors" section and elsewhere in the company's annual report on Form 10-K for the year ended
December 31, 2013 and in subsequent filings with the Securities and Exchange Commission. Except as otherwise
required by law, the company is under no obligation to (and expressly disclaims any such obligation to) update or
alter its forward-looking statements whether as a result of new information, future events or otherwise.
Reform Act of 1995 and other U.S. Federal securities laws. These forward-looking statements include, but are not
limited to, those statements regarding our continued growth, our strategy to become the major supplier of
rugged tablets to the multibillion MRM growing market, the growth of our aerospace and defense business, our
revenues expectation for 2015, and our expectations regarding future higher margins and profits. Such forward-
looking statements and their implications involve known and unknown risks, uncertainties and other factors that
may cause actual results or performance to differ materially from those projected. The forward-looking
statements contained in this presentation are subject to other risks and uncertainties, including those discussed
in the "Risk Factors" section and elsewhere in the company's annual report on Form 10-K for the year ended
December 31, 2013 and in subsequent filings with the Securities and Exchange Commission. Except as otherwise
required by law, the company is under no obligation to (and expressly disclaims any such obligation to) update or
alter its forward-looking statements whether as a result of new information, future events or otherwise.
2
Presenters
3
Tali Dinar - Chief Financial Officer
David Lucatz - Chairman of the Board
and CEO
and CEO
Shai Lustgarten - CEO of Micronet Ltd.
4
Quarter Overview
■ Strong revenue growth for quarter
■ 43% increase over previous year
■ 73% sequential growth
■ Local fleet vertical becoming larger portion of sales
■ Significantly diversifying our customer base
■ EBITDA positive with clear path to enhanced
profitability
profitability
Recent Transformative Acquisition
Progressing Well
Progressing Well
5
■ In June, we consummated our acquisition of the U.S. Vehicle
operation
operation
■ Complementary product line with strong presence in local fleet
vertical
vertical
■ U.S.-based MRM Division of Micronet Inc.
■ Enables MICT to establish strong U.S. sales and
operational base
■ Headquartered in Salt Lake City, UT
■ Immediately accretive; 2013 revenues of $11M
■ Significantly expands customer base
Q3 Was First Full Quarter Including The U.S. Vehicle Operation
3Q 13 vs 3Q 14 Revenues
MRM
Driven by high growth in both divisions
Consolidated revenue grew 43.5% for the quarter
2Q 14 vs 3Q 14 Revenues
MRM
Also driven by high growth in both divisions
Consolidated revenue grew 73% from 2Q 14 to 3Q 14
MRM Sales Mix by Vertical
8
Growing Local Fleet Revenues
FY 2013
Long Haul
77%
77%
Construction &
Heavy Equipment
Heavy Equipment
32%
Local
Fleet 50%
Fleet 50%
Long Haul
18%
18%
Construction &
Heavy Equipment
Heavy Equipment
5%
Broadening Customer Diversity
9
3Q 2014
FY 2013
One Customer Accounted for
83% of Sales
83% of Sales
Ten Customers Account for 83%
of Sales
of Sales
% of MRM Division
Customer A
83 %
83 %
Customer C
2 %
Customer B
3 %
Others
12%
10
Income Statement
|
|
Quarter Ended
September 30,
|
|
|
|
2014
|
2013
|
|
|
|
|
|
Revenues
|
$ 11,415
|
$ 7,956
|
|
Cost of revenues
|
8,546
|
4,366
|
|
Gross profit
|
2,869 |
3,590
|
|
Gross profit margin
|
25%
|
45%
|
|
Operating expenses:
|
|
|
|
Research and development
|
546
|
755
|
|
% of sales
|
4.7%
|
9.5%
|
|
Selling and marketing
|
449
|
276
|
|
% of sales
|
3.9%
|
3.5%
|
|
General and administrative
|
1,738
|
1,223
|
|
% of sales
|
15%
|
15.4%
|
|
Amortization of intangible assets
|
306
|
93
|
|
Total operating expenses
|
3,039
|
2,347
|
|
% of sales
|
27%
|
29%
|
|
|
|
|
|
Basic and diluted
|
(0.09)
|
0.01
|
|
Weighted average common shares outstanding:
|
5,831,246
|
5,831,246
|
Non-GAAP
11
|
Three Months Ended
September 30,
|
||||
|
2014
|
2013
|
|||
|
|
|
|
||
|
Net income
|
|
(506)
|
|
78
|
|
Amortization related to U.S. acquisition
|
|
213
|
|
-
|
|
Amortization related to Micronet acquisition
|
|
93
|
|
93
|
|
Total amortization of acquired intangible assets
|
|
306
|
|
93
|
|
Change in fair value of warrants
|
|
-
|
|
55
|
|
Amortization of UTA's note discount and related expenses
|
|
6
|
|
154
|
|
Stock-based compensation
|
|
6
|
|
7
|
|
Expenses relates to purchase of a business
|
|
79
|
|
-
|
|
Income tax-effect of above non-GAAP adjustments
|
|
(14)
|
|
(14)
|
|
Total non-GAAP net income
|
|
(123)
|
|
373
|
|
Non-GAAP net income per diluted share
|
|
(0.02)
|
|
0.06
|
|
Shares used in per share calculations
|
|
5,831,246
|
|
5,831,246
|
Strong Balance Sheet
12
MRM New Partnerships
13
Recent Contracts
XRS Corporation has certified Micronet
Enertec’s M-307 rugged computer tablet to
run the XRS solution.
Enertec’s M-307 rugged computer tablet to
run the XRS solution.
Partnership will enable Micronet to leverage
Verizon’s extensive ecosystem of MRM
partners, VARS, and systems integrators,
providing them with ready access to
Micronet’s full line of Android -based MDTs
and tablets.
Verizon’s extensive ecosystem of MRM
partners, VARS, and systems integrators,
providing them with ready access to
Micronet’s full line of Android -based MDTs
and tablets.
14
ELD Mandate Opportunity
§ Drivers are required to keep records of hours of service (HOS)
§ Cannot drive over 11 hours per day
§ Required rest periods
§ Electronic Logging Devices (ELDs) connect to engine and replace paper
logbooks
logbooks
§ Law being put in place requiring ELDs
Today 500,000 ELD equipped trucks
Jan ’15 ～2.6 Million trucks will require ELD
Passed by
congress
congress
Comment period
closed
closed
Law
enacted
enacted
Law
enforced
enforced
July ‘12
June ‘14
Jan. ‘15
Jan. ‘17
Background
Timeline
Market Opportunity
Looking Forward
MRM
§Local fleet market expected to grow 37% between 2014 and
20161
20161
Aerospace/Defense
§Increased missile strike threat support interest for our missile
systems
systems
§Strong performance continuing - 4Q expected to be of similar
magnitude as 3Q
magnitude as 3Q
§Profitability enhancement trend through growth and improved
product mix
product mix
1 Licht and Associates study (November 20, 2013)
*
Macro Trends
Near to Medium Term
16
Thank You
Q & A
