Attached files
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| 8-K - SYNERGETICS USA INC 8-K 3-21-2012 - SYNERGETICS USA INC | form8k.htm |
Exhibit 99.1
1
March 2012
NEUROSURGERY
QUALITY. PERFORMANCE.
INNOVATION.
INNOVATION.
OPHTHALMOLOGY
Investor Presentation
2
Certain statements made in this presentation are forward-looking within
the meaning of the Private Securities Litigation Reform Act of 1995. Among
other, statements concerning management’s expectations of future financial
results, potential business, acquisitions, government agency approvals,
additional indications and therapeutic applications for medical devices, as
well as their outcomes, clinical efficacy and potential markets are forward
looking. Forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from predicted results. For a
discussion of such risks and uncertainties, please refer to the information
set forth under “Risk Factors” included in Synergetics USA, Inc.’s Annual
Report on Form 10-K for the year ended July 31, 2011 and information
contained in subsequent filings with the Securities and Exchange
Commission. These forward looking statements are made based upon our
current expectations and we undertake no duty to update information
provided in this presentation.
the meaning of the Private Securities Litigation Reform Act of 1995. Among
other, statements concerning management’s expectations of future financial
results, potential business, acquisitions, government agency approvals,
additional indications and therapeutic applications for medical devices, as
well as their outcomes, clinical efficacy and potential markets are forward
looking. Forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from predicted results. For a
discussion of such risks and uncertainties, please refer to the information
set forth under “Risk Factors” included in Synergetics USA, Inc.’s Annual
Report on Form 10-K for the year ended July 31, 2011 and information
contained in subsequent filings with the Securities and Exchange
Commission. These forward looking statements are made based upon our
current expectations and we undertake no duty to update information
provided in this presentation.
Safe Harbor Statement
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Overview
• Synergetics is a medical device company focused
in the ophthalmology and neurosurgery market
in the ophthalmology and neurosurgery market
• Synergetics USA, Inc. was formed through a
reverse merger of Synergetics, Inc. and Valley
Forge Scientific in 2005
reverse merger of Synergetics, Inc. and Valley
Forge Scientific in 2005
• Synergetics was founded in 1991 and Valley
Forge was founded in 1980 and became a
publicly-held company in November 1989
Forge was founded in 1980 and became a
publicly-held company in November 1989
• Synergetics USA, Inc. (NASDAQ: SURG)
• Corporate Headquarters: O’Fallon, MO
• Manufacturing Facilities: O’Fallon, MO and King
of Prussia, PA
of Prussia, PA
• Shares Outstanding: 25.18mm
• 52 Week Range: $4.61- $7.55
• Market Cap.: $161.13mm
• June 2011 added to Russell 2000 & 3000 Indexes
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Financial Comparison
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Financial Comparison
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Overview
• Major Events:
• Alcon Settlement
• Neurosurgery Transition
• Project Restore
• Lean Manufacturing Implementation
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Overall Strategy
• Drive Accelerating Growth in our Ophthalmology Business
• Manage our Neurosurgery and OEM Business for Stable
Growth and Strong Cash Flows
Growth and Strong Cash Flows
• Deliver Improved Profitability through our Lean Initiatives
• Demonstrate Solid Financial Performance
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Markets
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2011 Anterior (Cataract) and
Posterior (Retinal) Markets Compared
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10
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Potential Game Changers
• Anti-VEGF Therapies (i.e. Lucentis)
• Long Term Drug Delivery Implants
• Artificial Vision
• Microplasmin Vitreous Disinsertion (Ocriplasmin)
• Site of Service Migration, e.g. ASC, Office
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Product Review
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Ophthalmology Products
Quantel Laser
Endoilluminator - Awh
Chandelier
Chandelier
Photon II
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VersaPACK™
VersaVIT™
UVE
(Ultimate Vit Enhancer)
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Neurosurgery Products
(Marketing Partners/OEM )
(Marketing Partners/OEM )
The Disposable Spetzler-Malis
“Yellow” bipolar forceps offer
surgeons brand-new, high-polished
tips for guaranteed non-stick
performance.
“Yellow” bipolar forceps offer
surgeons brand-new, high-polished
tips for guaranteed non-stick
performance.
Disposable
Bipolar Forceps
Our next generation Malis®
Bipolar Generator. Dual-
waveform technology provides
delicate and efficient cutting and
coagulation control at even
lower power settings, further
reducing thermal spread and
collateral tissue damage.
Bipolar Generator. Dual-
waveform technology provides
delicate and efficient cutting and
coagulation control at even
lower power settings, further
reducing thermal spread and
collateral tissue damage.
The Advantage™
Stryker
Codman
The OMNI
The OMNI is the most innovative
and user-friendly ultrasonic
aspirator available. In addition
to the soft tissue removal
capabilities common, it
effectively addresses dense,
fibrotic lesions, and pioneers the
fine dissection of bone
traditionally performed with
rotating drills.
and user-friendly ultrasonic
aspirator available. In addition
to the soft tissue removal
capabilities common, it
effectively addresses dense,
fibrotic lesions, and pioneers the
fine dissection of bone
traditionally performed with
rotating drills.
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Traditional OEM Products
Codman Synergy
Stryker Lesion
Generator
Generator
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Ophthalmology Product
Video
Video
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Neuro Product Video
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Financials
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Financial Highlights - FY
2011
2011
• Sales were up 21% for the fourth quarter ended July 31, 2011
with disposables sales up 23.0% and capital sales down 2.3%.
with disposables sales up 23.0% and capital sales down 2.3%.
• Sales were up 7.2% for the fiscal year ended July 31, 2011.
• Net income and earnings per share doubles.
• Total interest bearing debt decreased $3.0 million from FYE 2010
to approximately $1.1 million bringing our leverage down to
2.0%.
to approximately $1.1 million bringing our leverage down to
2.0%.
• Post Alcon transaction (including payment of taxes), Company
has $18.4 million of cash on its balance sheet and has
significantly reduced its debt.
has $18.4 million of cash on its balance sheet and has
significantly reduced its debt.
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Financial Highlights - 2Q
2012
2012
• Sales up 13.6% year-over-year to $15.1 million
• EBITDA up 42.4% year-over-year to $3.1 million
• Income from Continuing Operations up 41.9% year-over-
year to $1.9 million
year to $1.9 million
• Earnings per Share from Continuing Operations Up 40% to
$0.07
$0.07
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Investment Rationale
• Improved stability of the platform
• Reinvigorating sales growth
• Unique, technically proficient worldwide distribution
capability
capability
• Opportunity to create “Fast Follower” that will be
viewed as an attractive entry vehicle to
ophthalmology
viewed as an attractive entry vehicle to
ophthalmology
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Management Team
• David M. Hable - President, CEO
Over 30 years of progressive responsibility in sales, marketing, new business development and
general management in the medical device industry.
general management in the medical device industry.
• Pamela Boone - Executive Vice President, CFO
Previously served as CFO, VP and Corporate Controller for Maverick Tube Corporation. 25 years
of financial expertise.
of financial expertise.
• Kurt Gampp - Executive Vice President, COO
Co-founded Synergetics, Inc. Over 30 years of microsurgical instrument making experience.
• Jerry Malis, M.D. - Executive Vice President, CSO
Served as President, CEO and Chairman of Valley Forge. Over 40 years of industry experience.
Published over 50 articles in the biological science, electronics and engineering fields. Issued ten
U.S. patents.
Published over 50 articles in the biological science, electronics and engineering fields. Issued ten
U.S. patents.
• Michael Fanning - Vice President, Domestic Sales
Over 20 years in sales and management roles, working in service, medical device and
manufacturing sectors.
manufacturing sectors.
• Jason Stroisch - Vice President, International Sales & Marketing
Over 15 years in the medical device industry covering engineering, international sales and
marketing management roles.
marketing management roles.
• Phillip M. Williford - Vice President, Operations
Over 20 years of progressive responsibility in engineering and lean operations management
within snack food, automotive component part, pharmaceutical and medical device industries.
within snack food, automotive component part, pharmaceutical and medical device industries.
• Joan Kraus - Vice President, Regulatory Affairs / Quality Assurance
Over 20 years in quality systems and process improvement roles working in healthcare,
manufacturing, distribution and service sectors.
manufacturing, distribution and service sectors.
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March 2012
NEUROSURGERY
QUALITY. PERFORMANCE.
INNOVATION.
INNOVATION.
OPHTHALMOLOGY
Investor Presentation
3845 Corporate Centre Drive
O’Fallon, MO 63368
(636) 939-5100
www.synergeticsusa.com