Transcript TASR / TASRW

TASR / TASRW
Safe Harbor Statement
TASR / TASRW
Certain statements contained in this presentation may be deemed to be forwardlooking statements as defined by the Private Securities Litigation Reform Act of
1995, and TASER International intends that such forward-looking statements be
subject to the safe-harbor created thereby. Such forward-looking statements relate
to: 1) expected revenue and earnings growth; 2) the Company’s estimations
regarding the size of its target markets; 3) the ability of TASER to successfully
penetrate the law enforcement market; 4) the growth expectations for existing
accounts; 5) the ability of TASER to expand its product sales to the private security,
military and consumer self-defense markets; and 6) the Company’s target business
model. TASER cautions that these statements are qualified by important factors
that could cause actual results to differ materially from those reflected by the
forward-looking statements herein. Such factors include, but are not limited to: 1)
market acceptance of the Company’s products; 2) TASER’s ability to establish and
expands its direct and indirect distribution channels; 3) TASER’s ability to attract and
retain the endorsement of key opinion-leaders in the law enforcement community; 4)
the level of product technology and price competition for the Company’s Advanced
TASER product; 5) the degree and rate of growth of the markets in which TASER
competes and the accompanying demand for its products; and 6) other factors
detailed in the Company’s filings with the Securities and Exchange Commission.
ADVANCED TASER M26
TASR / TASRW
TASR / TASRW
Effective Range
Ohio State Highway Patrol
TASR / TASRW
All Patrols Carry M26
(Click on image above to start video. Click once to pause.)
TASER vs. OC Spray
TASR / TASRW
RCMP Testing
TASER Results
TASR / TASRW
Orange County Sheriffs, Florida
Reduction of Deputy Injuries
TASR / TASRW
Orange County Sheriffs, Florida
Cost Benefit Model
TASR / TASRW
Annual Savings
• Officer Injury reduction: $368 / Officer
Phoenix PD Field Results
TASR / TASRW
All Patrols Carry M26
• Suspect Injuries Dropped
72
%
• First Top-10 City to Deploy to All Patrol Officers
Los Angeles Sheriffs
TASR / TASRW
Analysis of Potential Savings
Estimated liability savings:
$2,500,000
M26 averted 3 potential shootings in first
year alone.
Cost Benefit Model
TASR / TASRW
•
•
•
•
Annual Savings
Officer Injury Reduction:
Liability Reduction:
Suspect Injury reduction
Initial Cost:
$368 / Officer
$294 / Officer
???
$741 / Officer
• Net Year 1 Cost:
$ 76 / Officer
• Months to Break Even:
13.7
Municipal Leases
TASR / TASRW
Municipal Lease advantages:
– Municipalities require cancellation for non-appropriation of funds
• Not classified as long term debt
– Avoid time consuming/costly debt issuance requirements
• Leasing co assumes risk of cancellation for non-appropriation
– Very simple, inexpensive and easy to do
• No legal, administrative or underwriting costs
• Greater flexibility for allocation of resources
– No impact on credit rating or availability of credit
– Typical lease term 3 to 5 years
– Agency would own TASERS at end of lease.
5 Year Lease Option
TASR / TASRW
El Paso (1091 Officers) Example
• Taser Initial Cost:
• Annual Cartridge Purch (4x):
$ 808,059
$ 99,117
• Total 5 year cost:
$1,204,527
•
•
•
•
$ 22,789
$ 273,468
$ 724,882
$ 451,414
Monthly Lease Cost:
Annual Lease Cost:
Annual Est. Savings:
Net Annual Savings:
US Potential Market (TAM)
TASR / TASRW
Market
U.S. Police &
Corrections
U.S. Private
Security
U.S. Consumer
Unit Size
1,100,000
Dollar Potential
$440 Million
1,800,000
$720 Million
35,000,000*
70,000,000**
$14 Billion
$28 Billion
TOTAL: $43.2 Billion
(Plus Recurring)
*Based on U.S. Handgun ownership: 30-35 million households.
**non-gun owning households
TASR / TASRW
Police Market Penetration
Group
Police TASER M-26
U.S. Police
Global Police
% of Total
40,000
100%
1,100,000
3.6%
12,000,000
0.3%
Truly Incapacitating
TASR / TASRW
Specially Modified MX Animal TASER
(Click in area above to start video)
TASR / TASRW
Pricing & Margins
ITEM
Distributor End User
Price
Price
Margin
CARTRIDGES:
$12-15
$15-18
50-60%
ADVANCED
TASERS:
$300
$400
72-78%
Financial Performance
TASR / TASRW
(in thousands)
1999
2000
2001
2002
Revenue:
$2,366
3,499
6,800
9,843
Earnings
Per Share:
$(0.52)
(0.19)
0.22
0.07
2.8 Million Shares Outstanding
* Company Projections
Financial Performance
(in thousands)
TASR / TASRW
2001
Revenue:
$
Gross Margins:
6,853
2002
$
57%
9,843
56%
Net Income:
$
515
$
209
Basic Earnings
Per Share:
$
0.22
$
0.07
2.8 Million Shares Outstanding Post Offering
up 44%
TASR / TASRW
2002 Marketing Investments
Expense
2002 Increase
Tradeshows
$387,000
Cost per
Basic Share
$0.14
Advertising
$273,000
$0.10
Commissions
$200,000
$0.07
Lobbying
$90,000
$0.03
Total
Investment
$950,000
$0.34
Target Business Model
TASR / TASRW
Revenue
Gross Margin
R&D
SG&A
Op. Profit
Inv. Turns
DSO (days)
Effective Tax Rate
* One time tax benefit
Goal
2001
2002
100%
100%
100%
64%
57%
56%
5%
0.1%
1.4%
39%
46%
51%
20%
11.3%
3.6%
8
14.4
8.3
29
37.6
39.4
40%
17%
45%
TASR / TASRW
Stock Data
IPO Date:
Price on 3/03/03:
Trading Range:
May 8, 2001
$4.00
$3.30-$21.01
(since unit split)
Market Capitalization:
Shares Outstanding:
Float:
EPS (mrq):
EPS (2002):
$11.2 million
2.8 million
1.8 million
$0.02 basic
$0.07 basic
TASR / TASRW
TASR / TASRW
Nasdaq: TASR,TASRW
[email protected] (Chairman)
Kathy Hanrahan (CFO)