Attached files
| file | filename |
|---|---|
| 8-K - 8-K - MICT, Inc. | zk1618512.htm |
| EX-99.1 - EXHIBIT 99.1 - MICT, Inc. | exhibit_99-1.htm |
Exhibit 99.2
1Q 16 Financial Results
Conference Call
Conference Call
Forward Looking Statement
2
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 future revenue growth, our pipeline and backlog, increased volumes and
demand in the markets in which we operate, our product offerings and future market
opportunities, the market potential of our Command and Control defense systems, the
roll-out of our new TREQ®317 All-In-One wireless platforms, the expected market
potential created by the ELD mandate in the U.S. and Canada, and expected new
opportunities for the Company and anticipated Company growth resulting from the ELD
mandate. 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, 2015 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.
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 future revenue growth, our pipeline and backlog, increased volumes and
demand in the markets in which we operate, our product offerings and future market
opportunities, the market potential of our Command and Control defense systems, the
roll-out of our new TREQ®317 All-In-One wireless platforms, the expected market
potential created by the ELD mandate in the U.S. and Canada, and expected new
opportunities for the Company and anticipated Company growth resulting from the ELD
mandate. 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, 2015 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.
Presenters
3
David Lucatz
Chairman of the Board and CEO
Shai Lustgarten
CEO of Micronet Ltd.
Tali Dinar
CFO of Enertec Electronic Ltd.
4
1st Quarter Overview
■ Revenue and margin improvements
■ YoY revenue increase of 14% to $6.5M
■ Gross margin improved to 32% compared to 31% in 1Q15
■ Reduction in operating expenses from $2.6M to $2.4M in 1Q15
■ Strong MRM backlog growth
■ % increase in 1Q backlog compared to 1Q last year to $3.0 million
■ Healthy pipeline driven by ELD mandate opportunities and A&D market
■ Continued diversification of customer base in the MRM market
ELD Mandate Opportunity
5
New regulation implemented in December 2015 mandates all truck drivers to keep
electronic records of hours of service (HOS) *
electronic 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.
Micronet’s comprehensive products provide state of the art solutions for the ELD
requirements
requirements
Starting to see increased demand as fleet managers and commercial truck and bus owners
comply with ELD mandate in advance of 2017 enforcement date
comply with ELD mandate in advance of 2017 enforcement date
* Federal Motor Carrier Safety Administration:
** “Electronic Logging Devices and Hours of Service Supporting Documents”- March 2014
2016 1M ELD equipped trucks
2017 ～2.6 Million trucks will require ELD **
Our tablets are fully compliant with the regulation
TREQ® 317
6
■ Positive feedback from market
■ ELD Mandate has had a significant impact on level of
interest in our solutions
interest in our solutions
■ Direct correlation with our expanding pipeline of prospects
Further Broadening Our Product Line
7
■ Concluding development of an additional solutions in order to
broaden our product lines and penetrate additional market
segments
broaden our product lines and penetrate additional market
segments
■ Leverages existing development efforts
■ Expands market opportunity particularly with smaller size fleets
8
Improved Backlog at Enertec: Awarded
three stage $5.8 Million project
three stage $5.8 Million project
■ A&D subsidiary Enertec awarded three stage $5.8 million project
for the production of computer-based Command and Control
Defense systems. 1st order of $3.4M has already received and we
expect to receive additional orders towards the end of 2016
for the production of computer-based Command and Control
Defense systems. 1st order of $3.4M has already received and we
expect to receive additional orders towards the end of 2016
■ The multibillion dollar Aerospace & Defense contractor expects to
place additional orders in 2016
place additional orders in 2016
■ Enertec was selected as the supplier to develop this sophisticated
mission critical system and this new order is a direct result of
Enertec strong positioning with the customer
mission critical system and this new order is a direct result of
Enertec strong positioning with the customer
A&D Deal Pipeline Strengthening as Enertec Builds Reputation
as Dependable and Innovative Defense Systems Provider
as Dependable and Innovative Defense Systems Provider
Positive Outlook
9
MRM
■ Local fleet market and the ELD expected to be the growth engines of the company
■ The All In One line of new developed tablets becoming the Company’s leading product
with wider market acceptance
with wider market acceptance
■ ELD mandate is driving increased pipeline for All In One products
■ Broadening product portfolio to target the additional segments in the MRM market
Aerospace/Defense
■ Continued reliance on missile defense systems supports demand for our missile defense
offerings
offerings
■ Three stages $5.8M project in the A&D segment; expect follow-on orders as result of
the project
the project
■ Expect significant demand for new Mobile Command & Control Centers
Trends
1Q15 vs. 1Q16 Revenues
Sales Breakdown
Consolidated revenue for the quarter
11
Income Statement Highlights
(in 000s except share and per share data)
(in 000s except share and per share data)
|
|
Three Months Ended March 31,
|
|
|
|
2016
|
2015
|
|
|
|
|
|
Revenues
|
$ 6,482
|
$ 5,679
|
|
Cost of revenues
|
4,403
|
3,928
|
|
Gross profit
|
2,079 |
1,751
|
|
Gross profit margin
|
32%
|
31%
|
|
Operating expenses:
|
|
|
|
Research and development
|
700
|
743
|
|
% of sales
|
11%
|
13%
|
|
Selling and marketing
|
358
|
469
|
|
% of sales
|
6%
|
8%
|
|
General and administrative
|
1,136
|
1,111
|
|
% of sales
|
18%
|
20%
|
|
Amortization of intangible assets
|
228
|
302
|
|
Total operating expenses
|
2,422
|
2,625
|
|
% of sales
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37%
|
46%
|
|
|
|
|
|
Net income (loss) attributable to MICT
|
(339)
|
(705)
|
|
Basic and diluted income (loss) per share
|
(0.06)
|
(0.12)
|
|
Weighted average common shares outstanding:
|
5,865,221
|
5,856,246
|
Non-GAAP
(in 000s except share and per share data)
(in 000s except share and per share data)
12
|
Three Months Ended
March 31,
|
|||||
|
2016
|
2015
|
||||
|
GAAP net income (loss) attributed to MICT
|
|
(339)
|
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(705)
|
|
|
Total amortization of acquired intangible assets
|
|
143
|
|
189
|
|
|
Stock-based compensation
|
|
82
|
|
69
|
|
|
Income tax-effect of above non-GAAP adjustments
|
|
(2)
|
|
(9)
|
|
|
Total non-GAAP net income (loss) attributed to
MICT |
|
(116)
|
|
(456)
|
|
|
Non-GAAP net income (loss) per diluted share
|
|
(0.02)
|
|
(0.08)
|
|
|
Shares used in per share calculations
|
|
5,865,221
|
|
5,856,246
|
|
|
GAAP net income (loss) per diluted share
attributable to Micronet Enertec Technologies, Inc. |
|
(0.06)
|
|
(0.12)
|
|
|
Shares used in per share calculations
|
|
5,865,221
|
|
5,856,246
|
|
Strong Balance Sheet
13
Thank You
14
Q & A
