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8-K - 8-K - Boomerang Systems, Inc.v404299_8k.htm

 

Exhibit 99.1

 

Boomerang Update (8 - K) March 2015 1 Copyright Boomerang Systems 2015

 
 

Confidentiality & Disclaimer • Certain statements made during this presentation are forward - looking and are subject to risks and uncertainties . These forward - looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives . The forward - looking statements made are based on our beliefs, assumptions and expectations of future performance, taking into account all information currently available to us . Such forward - looking statements involve a number of known and unknown risks, uncertainties and other factors, including those risk factors identified in our annual report on Form 10 - K for the fiscal year ended September 30 , 2014 , in our quarterly report on Form 10 - Q for the fiscal quarter ended December 31 , 2014 , and other filings the Company makes with the Securities and Exchange Commission . You are cautioned not to place undue reliance on these forward - looking statements, which speak only as of the date the statements are made . We disclaim any intention and have no obligation or responsibility, except as required by law, to update or revise any of the forward - looking statements . • We do not intend to update or revise any forward - looking statements that we make in this presentation, or other documents, reports, filings or press releases, whether as a result of new information, future events or otherwise . • Actual results could differ materially from the forward - looking statements made during this presentation . When we use the words “believe,” “expect,” “may,” “potential,” “assume”, “anticipate,” “estimate,” “plan,” “will,” “could,” “intend,” “should,” “would,” “likely,” “demonstrate,” “continue” or other similar expressions, we are identifying forward - looking statements . • The forward - looking statements made during this presentation are subject to the safe harbor of the Private Securities Litigation Reform Act of 1995 . • Although Boomerang believes that the assumptions contained in this presentation are reasonable, unanticipated events or developments may occur which cause actual results to differ from the assumptions . There can be no assurance that the assumptions will prove to be an accurate reflection of future events . Copyright Boomerang Systems 2015 2

 
 

Operations Highlights • Successful RoboticValet proof - of - concept: BrickellHouse certificate of occupancy in 2014 • Two added projects underway in Champaign IL and Hollywood FL • Growing pipeline of potential customers: after more than 5 years’ sales and marketing effort, proof - of - concept project builds momentum • New Senior Management in 2014 - 15, strong legacy team supplemented with deep expertise in user experience, engineering, architecture & project management • Strengthened balance sheet: completed Exchange Offer in October 2014, resulting in exchange of $20.5 million of convertible debt to common stock (98% participation) • Business model shifting to bundle user/consumer focus & fully - automated system Copyright Boomerang Systems 2015 3

 
 

Boomerang History, 2007 - 15 2007 2008 2015 2009 2010 2011 2012 2013 2014 Pittsburgh PA San Juan del Rio, MEX Collins Ave Miami FL Crystal Springs, NJ Elliott Museum, Stuart FL BrickellHouse Miami FL HERE Champaign IL COSTA Hollywood FL Consumer Product Amusement Park Rides 1 st Prototype AGV - Based Cost reduction, outsourcing ROBOTIC VALET (AGV - BASED) Field - engineered Engineered Systems “Rack - and - Rail” Automated Parking Field - engineered Automated Storage Field - engineered Complex Integrated Systems Lean Model Copyright Boomerang Systems 2015 4 RoboticValet (AGV) Automated Parking (Rack & Rail) BrickellHouse CO

 
 

BRICKELLHOUSE: proof of concept Copyright Boomerang Systems 2015 5 • Largest robotic parking garage in USA - 480 Spaces, 13 Levels on Brickell Avenue in Miami • $6.8 million of 2013 - 14FY revenue • Certificate of Occupancy (CO) received on - schedule (Oct. 2014) • Fully - automated operation: ~ 200 daily parking transactions for condo - owners, tenants and guests • 10,000 transactions through February 2015, scaling up to full capacity during 2015

 
 

6 LIFT PORT BOT RoboticValet ® Beginning 2009 incorporated 2 nd & 3 rd generation components, embedded controls and software, resulting from years of product development and prototyping BOT : Fully - autonomous, omni - directional, battery - powered robot (AGV) that lifts and carries cars parked on self - supporting steel trays; travels in any direction (including sideways) and spins 360 ° on solid concrete floors LIFT : Proprietary heavy - capacity, high - speed vertical conveyor PORT : Robotic customer interface that is a complex asset incorporating customer kiosks, mechanical tray server, hidden robotic entry/egress pathway, weight load cells, high - resolution cameras, laser size scanners, and many consumer safety features Copyright Boomerang Systems 2015

 
 

RoboticValet ® Copyright Boomerang Systems 2015 7 • Fully modular • Repeatable system, standard components • Works with any layout • Robots lift trays, so nothing touches vehicles • Transports vehicles in any direction • Rotates vehicles without a turntable • Lifts payloads up to 7000 lbs • Made in the USA • Densification (requires less space to park the same number of cars than conventional human - parked cars) • Automation (lower operating costs) • Safety (no human occupants of garage, secure and well - lit user area, many safety features) • Asset Protection (minimizes human error and resultant insurance claims) • History Collection (garage usage, demographics, etc.) Value Proposition Features

 
 

RoboticValet Value Proposition Copyright Boomerang Systems 2015 8

 
 

RoboticValet Value Propositions • Eliminating ramps & reducing internal circulation driveways and space between parked cars, uses up to 50% less space to park the same number of cars • Enables developers to increase the profitability of their projects by: – parking up to twice the number of cars, – reclaiming valuable GFA for higher value use – reducing the cost of construction when parking is below grade, in rock or water • Robotic parking is viewed as a luxury amenity by tenants, because all tenants receive VIP parking spaces in a well - lit conveniently located area • Developers realize parking in ramp garages will soon be seen as a negative by prospective tenants Copyright Boomerang Systems 2015 9

 
 

RoboticValet Value Propositions Copyright Boomerang Systems 2015 10 Up to 50% Less Space To Park Same # Cars Unlock Valuable Real Estate

 
 

RoboticValet Superior to Rack & Rail 1 st Design Decision: Solid Concrete Slab Construction & Safety – Fire fighter access is easy and safe - just like conventional garage – Acceptable and cost - effective fire separation between floors – Maintenance personnel do not require safety harness to service equipment – Concrete is stronger, safer, easier to engineer, can be competitively bid – Much easier approvals 2 nd Design Decision: Omni - Directional Battery - Powered Robots – BOTS navigate through large or irregularly - shaped garages – Move from floor - to - floor to accommodate demand spikes – Avoid creating bottlenecks in high traffic areas – Travel around obstacles , providing unparalleled redundancy – Easy to service . Disabled robot can be pushed into empty parking space 3 rd Design Decision: Self - Supporting Stacking Steel Trays – Robots move freely underneath parked cars – Multiple lanes of lateral movement means no single point of failure – Trays lifted and moved without touching car – No issue with slowly leaking tires, packed snow, mud flaps, and dangling mufflers – Stacking trays eliminates need to return empty trays each time a car exits Copyright Boomerang Systems 2015 11

 
 

Consumers & User Experience Copyright Boomerang Systems 2015 12 • BrickellHouse system now in its 6 th month of continuous operation – Daily, high - volume operation provides real - time user feedback – 10,000 transactions through March 2015 • Increased consumer focus: large number of users, interacting with system every day • Boomerang has accessed a deep network of experts and has recruited a strong bench of highly - experienced systems integration and user - experience professionals • Strong system architect leadership enables rapid incorporation of improved user experience into system

 
 

Sales & Market Analysis • Growing pipeline of potential customers: after more than 5 years’ sales and marketing effort, proof - of - concept site builds momentum • Opportunity for targeted marketing and branding efforts to further accelerate adoption, bookings growth • Increasing scale and productivity of sales organization; with BrickellHouse proof - of - concept, poised to accelerate and scale - up organization 13 Copyright Boomerang Systems 2015

 
 

Student Housing at University of Illinois • 240 Spaces • Champaign, IL • Garage Structure Complete • Installation Underway • Scheduled to Open Summer 2015 BrickellHouse Condo Tower, Miami • 480 Parking Spaces • CO Received in October • System in Operation • Increasing daily transactions, from ~200 in March 2015 Costa Condo Hotel Resort, Hollywood, Florida • 175 Spaces • Hollywood, FL • Structure Nearing Completion • Equipment Being Fabricated • Scheduled to Open Late 2015 Current Projects Copyright Boomerang Systems 2015 14

 
 

Project Backlog & Near - term Pipeline 15 # Parking Booked Projects Location Spaces Revenue ($M ) Luxury Condos Miami FL 480 7.6 M Student Housing Champaign IL 240 3.2 M Condo Hotel Hollywood FL 175 4.3 M Subtotal $15.1 M Near - term Prospects ( 2015 - 16FY) : * Expected # Est. Gross Parking Spaces Contract Price Luxury Condos Southwest 95 2 M – 3 M Luxury Condos S. Florida 235 3 M – 4 M Luxury Condos S. Florida 210 4 M – 5 M Luxury Condos Southwest 100 2 M – 3 M Residential Towers S. Florida 700 13 M – 15 M Commercial Tower S. Florida 350 6 M – 8 M Student Housing Mid - west 475 4 M – 5 M Subtotal $34 M – 43 M * Represents prospects for which Boomerang has made a proposal or received a request for proposal or with which Boomerang is currently negotiating and Boomerang’s estimate of the gross contract price based upon current discussions. There can be no assurance that a contract for a project will be executed with any of these prospects at the expected contract value or at all . Copyright Boomerang Systems 2015

 
 

Infrastructure (business tools in place) Boomerang business processes based upon sophisticated infrastructure suite: • RoboticValet Management System (RVMS): lean, integrated MRP system (2014) • Atlassian collaboration tool (2014) • Salesforce.com (2008) • QuickBooks: (2008) • AutoMod: simulation tool (2013) • SolidWorks: CAD/CAM (2008) • Google Enterprise: communication tools (2008) Copyright Boomerang Systems 2015 16

 
 

Financial • BrickellHouse proof - of - concept; Champaign and Hollywood projects currently underway • Growing pipeline of potential contracts; in discussion with prospective near - term customers • Maintaining lean overhead cost structure, targeting 25% gross margins, strategic investments in user experience & scalability • Long - term, supportive investor base • Successfully completed October 2013 Exchange Offer – $20.5 million in convertible debt exchanged for common equity; 98% participation • December 2014: upsized secured loan to $14.9 million; $6 million of cash and additional borrowings available as of March 1, 2015 • Enterprise scale - up ongoing, including marketing, product enhancement, East Coast US assembly and research facility Copyright Boomerang Systems 2015 17

 
 

• 40 years’ experience in IT, MIS, software, robotics, integration • Chief Product Officer, ID Analytics ( LifeLock ) • Chief Architect, Intuit (TurboTax) • IT Director, United Health Group • Sr Mgmt. positions at United Health, Xerox , SPLS, Kurt Salmon • Expertise in integration of large, complex systems Senior Executive Team • 25+ years’ experience in global real estate • Managing Director and Head of Real Estate Global Principal Investments of Merrill Lynch • Global Head of Real Estate Investment Banking, Citigroup Copyright Boomerang Systems 2015 18 MARK PATTERSON CHAIRMAN JAMES GELLY CEO GEORGE GELLY EVP & COO • 25+ years’ experience in global, large - cap industrials • CFO of Rockwell Automation , Ingersoll Rand , Misys (London), Constellium (Paris) • 10 years with Honeywell International • Industrial automation & technology, software & services

 
 

Mark Patterson, Chairman • Chairman of Boomerang Systems since 2012; Chief Executive Officer from 2010 until January 2015 • Previously, Managing Director and Head of Real Estate Global Principal Investments of Merrill Lynch, where he oversaw principal investing activities – Joined Merrill Lynch in April 2005, as Global Head of Real Estate Investment Banking; in 2006 became Co - Head of Global Commercial Real Estate which encompassed real estate investment banking, principal investing and mortgage debt • Prior to joining Merrill Lynch, Mr. Patterson spent 16 years at Citigroup as Global Head of Real Estate Investment Banking • Associate, Real Estate Investment Banking Group, Chemical Realty Trust in New York (1987 - 89) • Auditor of real estate companies in Real Estate Division of Arthur Anderson and Co. in Houston, Texas (1982 - 85) • Board member of General Growth Properties Inc (NYSE:GGP) and UDR, Inc. (NYSE:UDR) • Education: – B.A., College of William and Mary – M.B.A., Darden School of Business at University of Virginia Copyright Boomerang Systems 2015 19

 
 

James Gelly, CEO & Director • EVP & CFO, Constellium (NYSE:CSTM), Paris (2010 - 11) • EVP & CFO, Misys plc, (LON:MYS), London (2008 - 10) • SVP & CFO, Ingersoll - Rand (NYSE:IR), New Jersey & North Carolina USA (2007 - 08) • SVP & CFO, Rockwell Automation (NYSE:ROK), Milwaukee WI, (2004 - 07) • VP & Treasurer, Honeywell International (NYSE:HON, formerly AlliedSignal), New Jersey(1999 - 2003) • General Motors Corporation (NYSE:GM), New York City, Brussels & Sweden (1987 - 1994) • Education – MBA, University of Virginia (Darden School), Charlottesville VA – MA (Ord.), University of St. Andrews, St. Andrews, Scotland – BA, Davidson College, Davidson NC Copyright Boomerang Systems 2015 20

 
 

George Gelly, EVP & Chief Operating Officer • SVP & Chief Product Officer, ID Analytics, division of LifeLock, Inc. (NYSE:LOCK), California (2013 - 14) • INTUIT Inc. (NASDAQ:INDU), California (2009 - 13) – Director, Product Delivery – Consumer Group – Product Manager, Consumer Financial Ecosystem – Product Manager, Chief Architect, Director of Product Development, Intuit Health Group • Director – Information Technology, UnitedHealth Group (NYSE:UNH), Minnesota (2004 - 09) • Managing Partner, CEE Systems Services LLC, Georgia (2000 - 04) • CIO & Director, LUMENOS (Internet Health Insurer, Washington DC) (1999 - 2000) • Regional Managing Principal, XEROX (NYSE:XRX) Customized Technology Division, Georgia (1998 - 99) • CIO – Southeast Region, STAPLES (NASDAQ:SPLS) Direct Sales Division, Georgia (1994 - 98) • Manager, KPMG Peat Marwick LLP Management Consulting Practice, Virginia (1991 - 94) • Project Manager, NSI (NYSE:NSI) Information Services Group, Georgia (1991) • Vice President, Bottomley & Associates Software Services Division, Georgia (1990 - 91) • Managing Partner, JMR Software, Inc. (Software & IT Facilities Management, Georgia (1987 - 1990) • Senior Consultant, Kurt Salmon Associates Information Technology Practice, Georgia (1982 - 87) • Education & certifications – Bachelor of Electrical Engineering, Georgia Institute of Technology, Atlanta, GA – US PATENT: 8,423,380 B1 (Method & System for Interactive Health Regimen Accountability & Patient Monitoring Copyright Boomerang Systems 2015 21