Transcript Excavation Alert Systems, LLC

“Buried Infrastructure’s Last Line of Defense”
Excavation Alert Systems, LLC.
Damage Prevention Systems for Buried Infrastructure
Ryan Dunn
660 Hunters Place, STE 102
Charlottesville, VA 22911
[email protected]
518.312.2443
“Buried Infrastructure’s Last Line of Defense”
3,000 Pipeline Companies:
500,000 mi. Transmission & 2,100,000 mi. Distribution
• Growth (Shale):
• $187B in new pipelines.
• 24,400 mi/year transmission.
• 50,000 mi/year distribution.
• High Consequence Areas (HCAs):
• 35,000 miles transmission (7%).
• 2,100,000 miles distribution (100%).
“Buried Infrastructure’s Last Line of Defense”
PROBLEM: Excavation Damage
• Leading cause of
significant pipeline
incidents.
• 2007-2011: 318 incidents
– 27 fatalities.
– 114 serious injuries.
– Cost: $1.9B.
• 57% of excavation
incidents caused by:
–Failure to call a locating
service (32%).
–Failure to correctly
mark utility (25%).
“Buried Infrastructure’s Last Line of Defense”
Protocols & Proactive Devices:
Passive Visual Indicators:
Monitoring and Sensor Systems:
“Buried Infrastructure’s Last Line of Defense”
ExcAlertTM SOLUTION:
• Directly warns excavation
crew, PREVENTING
accidents.
– Visual (colored smoke).
– Sound.
• No proactivity required.
• New and retrofit
installations.
• Inexpensive: ~1% of
pipeline cost.
• Safe for use near natural
gas pipelines.
• Long life, no maintenance,
weatherproof.
“Buried Infrastructure’s Last Line of Defense”
Product Details:
• PVC Pipe with designed
breakpoints.
Sound Producing
Diaphragm
• High longitudinal
strength for installation.
Smoke Generator
• Easily broken with
excavator shear force.
Retrofit
Installation
Vehicle
• Clear path to surface for
signal when broken.
• Small hole diameter
required for retrofit.
• High effective area when
installed at angle.
GPR Image
• Easily produced in
varying lengths for
pipelines at different
depths.
• Multiple configurations
in pending patents:
PCT/US2012/071096
“Buried Infrastructure’s Last Line of Defense”
Innovative Business Model:
System Cost
Pass
Through
Reduced
Insurance
Premiums
Improved
Triple
Bottom Line
5 - 10
Year ROI
• How to create a pull in a regulation driven industry?
– Create a 5-10 year ROI for pipeline companies.
• Strategic relationships with leading pipeline insurance companies to offer
reduced premiums on ExcAlertTM protected pipelines.
• Utility companies can pass system cost through to rate payers.
• Improves “Triple Bottom Line” initiatives: Safety, Health & Environment.
“Buried Infrastructure’s Last Line of Defense”
RYAN DUNN
FOUNDER & CEO
BRYAN WRIGHT J.D.
IP & INDUSTRY EXPERT
ROBERT TOBEY C.P.A.
OPERATIONS & CFO
MAJOR PIPELINE EMPLOYEE
BUSINESS DEVELOPMENT
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CEO, ElectraWatch, Inc.
Successful product commercialization.
Electrical Engineering & Engineering
Management, Dartmouth College.
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VA Bar & TX Bar Oil and Gas section.
“Super Lawyer” for IP law, VA Super
Lawyers magazine. AV Rated.
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30 years experience in operation and
management of IP based companies.
Resident Advisor & Entrepreneurial
Mentor, Darden / Batten Institute.
Financial Expert.
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Strategic first hire.
Significant experience at major pipeline
company.
Leverage experience and connections
for business development.
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INVESTORS & ADVISORS:
LEN WOLOWIEC
GEORGE PHILLIPS
President, Universal Steel America
Pipeline Connections in Houston, TX.
Senior Vice President, Rutherfoord
Pipeline Insurance Industry Expert
“Buried Infrastructure’s Last Line of Defense”
Company Information:
• Virginia LLC. headquartered in Charlottesville, VA.
• $65k in seed funding from founders.
• Functional Prototype Stage.
– Strong IP (PCT/US2012/071096 - pending).
– Initial strategic relationships.
Series A - $1.6MM of $3MM Raised:
$1.6MM
$3MM
• Awarded $1.5MM in VA tobacco commission funding on 9/16/13.
– Equity capital at significantly below market rates.
– Requires $1.5MM in matching funding and manufacturing in VA tobacco region.
• $100k Charlottesville based Angel.
• Funding Use:
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Strategic hires from pipeline industry: Business Development & Sales.
Design improvements: improved performance, mass manufacturing.
Statistical Testing: soil types, freeze thaw cycles, longevity, large test bed.
Working Capital.
“Buried Infrastructure’s Last Line of Defense”
BACKUP SLIDES
“Buried Infrastructure’s Last Line of Defense”
Commercialization Timeline:
VOLUME
MANUFACTURING
$3MM
INVESTMENT
BUILD
TEAM
2013
FINAL DESIGN
COMPLETE
2014
FORM
COMPANY
FILE PATENT
2015
PHMSA
DEMO
INSURANCE
ACCEPTANCE
SALE OF
COMPANY:
RETROFIT
INSTALLATION
VEHICLE
2016
2017
PIPELINE
INSTALLATIONS
MONITORING
SYSTEM
COMPANIES
OIL &
NATURAL GAS
COMPANIES
PIPELINE
INSTALLATION
COMPANIES
PIPE
PRODUCERS
“Buried Infrastructure’s Last Line of Defense”
Proforma:
Projections:
Revenue & COGS:
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Revenue:
– Devices: $30k/mi
– Installation: $20k/mi with vehicle
– $50k/mi = ~1% of $4MM/mi pipeline cost
• COGS:
– Devices: $7,450/mi
– Installation: $6,786/mi with vehicle
– Gross Margins = 72%
Sales Example:
•
40 mile ExcAlert Installation:
– Revenue: $50k/mi * 40mi = $2MM
– COGS: $14k/mi * 40mi = $560k
– Gross Margin: $1.44MM (72%)
“Buried Infrastructure’s Last Line of Defense”
• United States Pipeline Market:
– 3,000 Pipeline companies.
• 2010: $9.7B profit on $31B in revenues.
• $930MM annually on preventative
technologies.
– 500,000 miles of transmission pipelines.
– 2,100,000 miles of distribution pipelines.
• Target Market: Pipelines in High
Consequence Areas (HCAs):
– 35,000 miles transmission pipeline (7%).
– 2,100,000 miles distribution pipeline (100%).
• Target Market Growth (Shale):
– $187B investment next 25 years ($7.5B/year).
– 24,400 mi/year trans. (1,709 HCA mi/year).
– 50,000 mi/year dist. (50,000 HCA mi/year).
• Secondary Markets:
– 35MM mi of buried infrastructure in U.S.
– Power transmission & fiber optic backbone
lines.
* Use of potential customers trademarks does not indicate a
relationship with or sponsorship by the potential customer.