Transcript Document

2014
Annual Stockholders’ Meeting
September 16, 2014
Safe-Harbor Statement
The contents of this presentation may contain forward-looking
comments based on current expectations that involve a number of
risks and uncertainties. Actual results could differ materially from
those projected or suggested in the forward-looking comments. The
difference could be caused by a number of factors, including, but not
limited to the factors and conditions that are described in Elecsys
Corporation's SEC filings, including the Form 10-K for the year
ended April 30, 2014. The participant is cautioned that Elecsys
Corporation does not have a policy of updating or revising forwardlooking statements and thus he or she should not assume that
silence by management of Elecsys Corporation over time means
that actual events are bearing out as estimated in such forwardlooking statements.
Agenda
1)
Welcome and Introductions
2)
Business Meeting
3)
Review of Operations
4)
Questions and Answers
5)
Preliminary Report of Inspector of Elections
6)
Adjourn
7)
Optional Facility Tour
MACHINE-TO-MACHINE (M2M) SOLUTIONS
CONNECTING INDUSTRY WITH THE WORLD
Business Model
 Premium M2M System Solutions
Complete integrated systems
Ongoing customer services
Focused on specialized applications
 Custom OEM Technology Solutions
M2M technology – Private label devices, modems
High reliability electronic assemblies
Custom displays – Rugged specialty LCD’s
 Target Resilient Market Sectors
Energy, food, water, and infrastructure
Drivers – technology, demographics, regulation
M2M Market
Elecsys Targets
• Industrial Markets
• Remote Fixed Locations
• Critical Applications
Benefits of Industrial M2M
Increase Operational Efficiency
• Real-time data enables optimized performance
• Remote interface reduces field travel costs / improves safety
• Automated reporting to reduce compliance costs
New Revenue Streams
• Enable service based offerings
• Recurring services and customer interaction
Improve Customer Satisfaction
• Reduce service response times
• Reduce downtime through proactive maintenance
• Provide remote technical support
Major Markets
Energy
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Pipelines
Exploration & Production
Regional/Local Distribution
Electric Power Grid
Renewables
Major Markets
Agriculture
• Irrigation Systems
• Vehicles/Implements
• Livestock Operations
Water/Wastewater
• Pump Station Monitoring
• Water Distribution
• Well Monitoring
Major Markets
Transportation
• Railroad Wayside Equipment
• Commercial Trucking
• Aerospace & Military
Revenue by Market – FY2014
M2M Technology Leadership
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Complete M2M System Solutions
Secure Data Communications
Cellular Data Modems
Data Acquisition & Analysis
Web-Based Software Systems
Enterprise Application Interfaces
Rugged Embedded Computers
Liquid Crystal Displays (LCD’s)
 Patented Technologies
Design Engineering Capabilities
 Electronic Hardware
 Embedded Software
 Application Software Systems
 Secure Data Communications
 Database Management
 Custom Displays & Touchscreens
 Rugged Mechanical Assemblies
Production Capabilities
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Electronic Manufacturing
Display Fabrication
Communication Modules
Electro-Mechanical Assembly
ITAR
Customer Support Services
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Application Engineering
Equipment Service & Repair
Maintenance Programs
Field Installation & Training
Technical Support
• US, UAE, South Africa, Colombia
The Connected Enterprise
Integrate Field Data with the Internet of Things (IoT)
Capture
Data from large populations of remote field equipment
Industrial protocols to Open Standard protocol (MQTT)
Connect
Secure delivery of data to enterprise systems
Scalable connectivity through the industrial IoT
Manage
Enterprise or Cloud based data storage and management
Integrate multiple data streams from distributed assets
Control
Predictive benefits made possible from Big Data Analytics
Utilize data for proactive control to optimize operations
Complete M2M Solutions
Connect
Manage
Capture
Control
Capture – Wireless Remote Monitoring
Reliable and Adaptable Hardware
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Periodic, Exception-based Reporting
Adaptable Modular Platforms
Flexible Communications
Analog/Digital/Pulse Inputs
Data Logging
Control Outputs
Serial/Ethernet Interface
Battery, Solar or Site Power Options
Capture – Industrial Data Communications
Configurable Field Equipment
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Real-time Communications Gateways
Multi-Protocol Conversion
RBE Bandwidth Management
Multipath Communication Management
Field Data Security
Data Logging and Field-Site Storage
Analog/Digital I/O
High Speed Counters
Expansion Data Ports
Capture – Mobile Data Acquisition
Ultra-Rugged Handheld Computers
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Waterproof/Submersible – IP67
Shock/Vibration MIL-STD 810
Windows CE
Custom Configurable
• GPS
• Cellular Communications
• Color Camera
• Barcode Reader
• Integrated Printer
• RFID Reader
• Custom Keypads
Capture – Embedded Data Modems
M2M Wireless Technology for OEMs
• Pre-Certified Modules
• GSM & CDMA Technologies
• 2.5G, 3.5G, 4G
• Cost Effective Product Development
• Proven & Reliable Products
• Integration Support
• Full Service M2M Solutions
• Extended Temperature Range
M2M Solutions Partners
Capture – Custom OEM M2M Solutions
Elecsys M2M Technology for OEMs
• Customized for Specific Applications
• Integration with OEM Equipment
• Cost Effective Product Development
• Proven & Reliable Solutions
• Lower Risk of Design Failures
• Quicker Time to Market
Modular M2M Components
• Industrial Single Board Computers
• Extended Temperature Range
• Flexible Configuration & I/O Options
• Embedded Communications
• Custom Interface Designs
Connect
Communication Technologies
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Cellular – CDMA, GSM
Satellite – Inmarsat/VSAT
Serial – RS-232/485
Ethernet – TCP/IP
Terrestrial Radio/Fiber
Communication Management
• Report by Exception
• Multi-Channel Management
• Cyber Security
Manage
Integrated Solutions
• Enterprise Data Integration
• Host Communications Processor (HCP2)
• MQTT, Modbus, DNP3, OPC, …
Hosted Cloud Solutions
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SaaS and DaaS
Secure Data Storage
Web-based Access
ANSI/TIA-942 Tier 4 Data Center
Control
Access Management
• M2M Web Data Portal
• Any Internet Connected Device
• Secure Client Access
Data Interface Systems
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Enterprise System Integration
Human-Machine Interfaces (HMI)
Big Data Analytics Integration
Reporting Tools
Custom OEM Electronics
Custom Electronic Assemblies
• Rugged & reliable electronics
• Proprietary Elecsys technologies
Diverse Customer Base of Select OEMs
• Stable, industrial companies
• Value domestic manufacturing
Leading Industries
• Agriculture
• Safety & Security systems
• Transportation
Custom OEM Display Solutions
Integrated Display Assemblies
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Custom Integrated Electronics
Proprietary LCD Technology
Sunlight Readable, High-brightness
Touchscreens & Keypads
Rugged Military Grade Displays
Targeted Applications
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Outdoor Locations
Demanding Industrial Environments
Harsh or Extreme Environments
Critical Applications
Selected Customers
Annual Results – Selected Data
(in thousands, except per share and % data)
Sales
Year Ended
Apr 30, 2014 Apr 30, 2013 Change
$
25,365
20%
11,858
38.9%
9,374
37.0%
$ 2,484
Operating expenses
7,831
25.7%
6,613
26.1%
$ 1,218
Operating income
4,027
2,761
$ 1,266
Income tax expense
1,500
1,010
Gross Margin
30,484
$
Net income
$
2,467
$
1,683
Per share - diluted
$
0.62
$
0.43
$
784
$ 0.19
Consolidated Balance Sheet
April 30, 2014
April 30, 2013
(in thousands)
ASSETS:
Cash
Accounts receivable, net
Inventory, net
Deferred taxes
Prepaid expenses and other assets
Total current assets
$
Property, plant & equipment, net
Other assets, net
Goodwill
Intangible assets, net
Total Assets
$
1,398
3,782
7,544
644
221
13,589
$
1,464
2,538
6,238
689
167
11,096
5,447
5,399
43
1,942
1,483
22,504
47
1,942
1,685
20,169
$
Consolidated Balance Sheet
April 30, 2014
April 30, 2013
(in thousands)
LIABILITIES & STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses
$
Income taxes payable
$
11
Current portion of long-term debt
Total current liabilities
Deferred taxes
Long-term debt less current portion
Stockholders' equity
Total Liabilities & Stockholders' Equity
3,158
$
2,799
-
189
185
3,358
2,984
755
637
2,430
2,619
15,961
22,504
13,929
20,169
$
Revenues
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$FY2011
FY2012
FY2013
Fiscal Year-End: April 30th
FY2014
Operating Income
$4,500,000
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$FY2011
FY2012
FY2013
Fiscal Year-End: April 30th
FY2014
Earnings per Share
$0.70
$0.60
$0.50
$0.40
$0.30
$0.20
$0.10
$FY2011
FY2012
FY2013
Fiscal Year-End: April 30th
FY2014
Quarterly Results – Selected Data
3-Month Period Ended
(in thousands, except per share and % data)
July 31, 2014
July 31, 2013
Change
Sales
$
6,670
$
6,774
-2%
Gross Margin
% of sales
$
2,448
36.7%
$
2,208
32.6%
$ 240
Operating expenses
$
1,987
$
1,755
$ 232
Operating income
$
461
$
453
$
8
Net income
$
273
$
264
$
9
Per share - diluted
$
0.07
$
0.07
Growth Strategy
 Develop New Markets
 Target New Industries
Prospects for stable, long-term growth
Drivers – automation, efficiency, safety
 Target Specific Geographic Markets
Growth economies – resource-rich regions
Stable with favorable business climate
 Develop New Products
 New applications for existing product platforms
 New systems to expand opportunities
Targeted Industries
 Oil & Gas
• Production Wells
• Storage Sites
• Local/Regional Gas Utilities
 Electric Utilities & Regional ISOs
• Demand/Response Energy Management
• Alternative Energy Grid Integration
 Railroads
• Wayside Equipment
• Communication Infrastructure
 Agriculture
• Water & Irrigation Management
• Environmental Monitoring & Control
Geographic Markets
New Product Development
 Embedded Cellular Data Modem
 GSM HSPA+ (4G)
• Global coverage
 Pre-Certified Modules
 Industrial Temperature Range
• -30°C to +85°C
 For OEM M2M Applications
New Product Development
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Industrial Data Gateway
Edge of Network IoT Gateway
Multi-Protocol Translator
Communications Management
• Integrated Cellular/GPS
• Multi-Channel Control
• Cyber Security Suite
 Configurable I/O
• Analog/Digital Input
• Control Output
New Product Development
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Remote Digital Link
Edge of Network IoT Gateway
Protocol Translation
Real-time Data Acquisition
Communications Management
• Integrated Cellular Modem
• Data Security
New Product Development
 Sensor/Transducer Link
 Remote Monitoring System
 Flexible Measurements
• Two Sensors/Transducers
• Two Analog Voltages
 Applications
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Well Sites
Storage Tanks
Regulator Stations
Valve Sites
Facility Expansion
Capacity for Future Requirements
• Total Facility - 85,000 ft2
• Expansion for Engineering & Production
Financing
• Municipal Industrial Revenue Bonds
• 10-Year 50% Property Tax Abatement
• Sales Tax Exemption on Construction
Agenda
1)
Welcome and Introductions
2)
Business Meeting
3)
Review of Operations
4)
Questions and Answers
5)
Preliminary Report of Inspector of Elections
6)
Adjourn
7)
Optional Facility Tour