Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - MICT, Inc. | exhibit_99-1.htm |
| 8-K - 8-K - MICT, Inc. | zk1516517.htm |
Exhibit 99.2
4Q 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 growing presence in the local fleet vertical, anticipated orders from
certain customers, the timing of pending U.S. federal rulemaking and the impact of the proposed rules on our
business, our expectations regarding diversifying and strengthening our customer base and our future
profitability. 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, 2014 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 growing presence in the local fleet vertical, anticipated orders from
certain customers, the timing of pending U.S. federal rulemaking and the impact of the proposed rules on our
business, our expectations regarding diversifying and strengthening our customer base and our future
profitability. 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, 2014 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
Fourth Quarter Overview
(in 000’s)
■ Strong revenue growth for quarter
■ 12.6% increase over previous year
■ Local fleet vertical becoming larger portion of sales
■ Largest MRM vertical
■ Significantly diversifying our customer base
■ Achieved Non-GAAP net income for the three
months ended December 31, 2014 of $521 ; clear
path to enhanced profitability
months ended December 31, 2014 of $521 ; clear
path to enhanced profitability
Strong Quarter, Strong Back Half of 2014
Transformative Realignment Progressing Well
6
■ June 2014 acquisition established U.S.-based MRM Division of
Micronet Inc.
Micronet Inc.
■ Enables MICT to establish strong U.S. sales and
operational base
operational base
■ Headquartered in Salt Lake City, UT
■ Significantly expanded and diversified customer base
■ Local presence enhances ability to capture new customers
■ Shifted sales focus to Local Fleet vertical; the largest MRM
vertical
vertical
■ Contributed to record revenues in the back half of 2014
4Q 13 vs 4Q 14 Revenues
MRM
Solid contribution from both divisions
Consolidated revenue grew 12.6% for the quarter
MRM Sales Mix by Vertical
8
Growing Local Fleet Revenues
FY 2013
Long Haul
77%
77%
Construction &
Heavy Equipment
Heavy Equipment
5%
Construction &
Heavy Equipment
Heavy Equipment
27%
Long Haul
35%
35%
Local Fleet
18%
Local Fleet
38%
Broadening Customer Diversity
9
FY 2014
FY 2013
% of MRM Division
Customer C
2 %
Customer B
3 %
Others
12%
Others
22%
10
Income Statement Highlights
(in 000’s)
(in 000’s)
|
|
Three Months Ended December
31, |
Year Ended
December 31, |
||
|
|
2014
|
2013
|
2014
|
2013
|
|
|
|
|
|
|
|
Revenues
|
$ 10,670
|
$ 9,483
|
$ 34,238
|
$ 35,571
|
|
Cost of revenues
|
7,390
|
6,314
|
24,180
|
22,298
|
|
Gross profit
|
3,280 |
3,169
|
10,058 |
13,273
|
|
Gross profit margin
|
31%
|
33%
|
29%
|
37%
|
|
Operating expenses:
|
|
|
|
|
|
Research and development
|
643
|
531
|
2,807
|
2,675
|
|
% of sales
|
6%
|
6%
|
8%
|
8%
|
|
Selling and marketing
|
739
|
216
|
1,947
|
1,170
|
|
% of sales
|
7%
|
2%
|
6%
|
3%
|
|
General and administrative
|
2,070
|
1,306
|
6,290
|
4,179
|
|
% of sales
|
19%
|
14%
|
18%
|
12%
|
|
Amortization of intangible assets
|
293
|
93
|
850
|
657
|
|
Total operating expenses
|
3,745
|
2,146
|
11,894
|
8,681
|
|
% of sales
|
35%
|
23%
|
35%
|
24%
|
|
|
|
|
|
|
|
Net income (loss) attributable to MICT
|
(28)
|
116
|
(2,139)
|
(495)
|
|
Basic and diluted income (loss) per share
|
(0.00)
|
0.02
|
(0.37)
|
(0.01)
|
|
Weighted average common shares
outstanding: |
5,843,746
|
5,831,247
|
5,834,371
|
5,089,122
|
Non-GAAP
11
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
||||
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
GAAP net loss attributed to MICT
|
|
(28)
|
|
116
|
|
(2,139)
|
|
(495)
|
|
Total amortization of acquired intangible
assets |
|
178
|
|
52
|
|
492
|
|
332
|
|
Change in fair value of call options and
warrants |
|
(8)
|
|
(78)
|
|
299
|
|
170
|
|
Amortization of UTA's note discount and
related expenses |
|
6
|
|
299
|
|
67
|
|
1,641
|
|
Stock-based compensation
|
|
381
|
|
6
|
|
402
|
|
19
|
|
Expenses related to the purchase of business
|
|
-
|
|
-
|
|
369
|
|
-
|
|
Income tax-effect of above non-GAAP
adjustments |
|
(9)
|
|
(8)
|
|
(32)
|
|
(50)
|
|
Total non-GAAP net income (loss) attributed to
MICT |
|
521
|
|
387
|
|
(542)
|
|
1,617
|
|
Non-GAAP net income (loss) per diluted share
|
|
0.09
|
|
0.07
|
|
(0.09)
|
|
0.31
|
|
Shares used in per share calculations
|
|
5,843,746
|
|
5,934,610
|
|
5,834,371
|
|
5,192,485
|
|
GAAP net income (loss) per diluted share
attributable to Micronet Enertec Technologies, Inc. |
|
(0.0)
|
|
(0.02)
|
|
(0.37)
|
|
(0.10)
|
|
Shares used in per share calculations
|
|
5,843,746
|
|
5,831,247
|
|
5,834,371
|
|
5,089,122
|
Strong Balance Sheet
12
New Partnerships
13
Recent Contracts
Micronet received a purchase order in the
amount of $1.7 million from a leading U.S.
based bulk material supply chain solutions
company, for its TREQ-fully portable,
rugged mobile tablets.
amount of $1.7 million from a leading U.S.
based bulk material supply chain solutions
company, for its TREQ-fully portable,
rugged mobile tablets.
Enertec Systems awarded two purchase
orders from a global aerospace corporation,
for an aggregate amount of more than $1.1
million.
orders from a global aerospace corporation,
for an aggregate amount of more than $1.1
million.
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
2015 500,000 ELD equipped trucks
2017 ～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
2015
2017
Background
Timeline*
Market Opportunity*
* Federal Motor Carrier Safety Administration:
“Electronic Logging Devices and Hours of Service Supporting Documents”—March 2014
Looking Forward
MRM
§Local fleet market expected to grow 37% between 2014 and 20161
Aerospace/Defense
•Continuing trend to rely on missile defense systems support a
potential demand for our missile defense offerings
potential demand for our missile defense offerings
§Continuing strong potential to our systems and products of our two
divisions
divisions
1 Licht and Associates study (November 20, 2013)
15
Macro Trends
Medium to Long Term
16
Thank You
Q & A
