EX-99.1 2 med011204-ex99_1.txt 2001 ANNUAL MEETING PRESENTATION [LOGO] MEDAMICUS, INC. ANNUAL MEETING 2001 MEDAMICUS, INC. A TIME OF SIGNIFICANT OPPORTUNITIES GYNECOLOGY SALE o Sale Price- $4,700,000 o Payable $4,000,000 now, $230,000 in 90 days, $470,000 in one year o Sale included all the tangible assets plus the fiber optic technology for gynecology and urology o MedAmicus will continue to build catheters and monitors until 12/31/01 GYNECOLOGY SALE o Will result in a gain of approximately $3,000,000 or $.67 per diluted share o Net operating loss carry-forward will shelter gain from income taxes o A portion of the cash was used to retire our line of credit which stood at $1,400,000 2000 RESULTS (in 000's) 2000 1999 % chg ---- ---- ----- Sales $10,979 $ 9,013 + 22% Gross Profit 5,539 4,169 + 34% Operating expenses: R & D 1,053 914 + 15% Selling, general & admin 4,026 3,358 + 20% Restructuring charge 233 0 Net income $ 162 $ (175) ------- -------- 2000 PRO FORMA RESULTS (in 000's) PRO FORMA 2000 % chg --------- ---- ----- Sales $ 7,399 $10,979 - 33% Gross Profit 3,767 5,539 - 32% Operating expenses: R & D 605 1,053 - 42% Selling, general & admin 1,467 4,026 - 64% Restructuring charge 0 233 Net income $ 1,674 $ 162 ---------- ------- Net income per diluted share $ .38 $ .04 ---------- ------- Q1 2001 RESULTS (in 000's) 2001 2000 % chg ---- ---- ----- Sales $ 3,240 $ 2,611 + 24% Gross Profit 1,656 1,241 + 33% Operating expenses: R & D 334 240 + 39% Selling, general & admin 833 1,049 - 21% Net income (loss) $ 449 $ ( 75) --------- -------- Net income (loss) per diluted share $ .10 $ ( .02) ---------- -------- Q1 2001 PRO FORMA RESULTS (in 000's) PRO FORMA 2001 % chg --------- ---- ----- Sales $ 2,405 $ 3,240 - 26% Gross Profit 1,240 1,656 - 25% Operating expenses: R & D 253 334 - 24% Selling, general & admin 469 833 - 44% Net income $ 509 $ 449 ---------- ------ Net income per diluted share $ .11 $ .10 ---------- ------ PRO FORMA BALANCE SHEET (in 000's) PRO FORMA 3/31/01 % chg --------- ------- ----- Cash $ 3,187 $ 941 + 239% Receivable from Cooper 700 - Receivables, inventory & ppds 2,607 3,690 - 29% Property, plant and equipment 1,208 1,471 Other assets 69 69 ---------- ------- Total assets $ 7,771 $ 6,171 + 26% ---------- -------- Payable to bank $ - $ 1,748 Other current liabilities 1,446 1,134 Long-term liabilities 201 201 Stockholder's equity 6,124 3,088 + 98% ---------- -------- Total liabilities and shareholder's equity $ 7,771 $ 6,171 + 26% ---------- -------- LEADING THE WAY TO SAFER, SIMPLER MEDICAL PROCEDURES [LOGO] 2001 Stockholder Meeting Vision To be a premier innovator and world leader in the supply of percutaneous delivery solutions [PIE CHART] Market Opportunities o Large OEM Opportunities - MEDTRONIC - BOSTON SCIENTIFIC - HDC - GUIDANT - MEDCOMP - SIMS DELTEC - ST. JUDE - ANGIODYNAMICS - BIOLINK - BARD ACCESS SYSTEMS - HORIZON MEDICAL - VASCA o Market is dominated by a few significant companies o 50% OF THESE COMPANIES ARE NOW MEDAMICUS CUSTOMERS Strategic Partnerships o New customers open doors to further opportunities - Provide feedback on next design concept - Expand our physician access - Offer their thought on the future of access devices o With each new customer, Medamicus is taking market share from the competition PDS REVENUE PDS PROFIT 1998 5,323 2,393 1999 5,882 2,425 2000 7,398 2,964 REVENUE GROWTH OVER THE PROFIT GROWTH OVER THE LAST LAST 3 YEARS = 40% 3 YEARS = 24% Operational Growth o Facilities expansion completed in 2000 - Added 10,000 sq.ft. - part for manufacturing o Purchased capital equipment - To keep up with customer demand - Improve efficiencies and reduce cost o Added technical resources - Design and manufacturing personnel necessary to meet current and future opportunities Paradigm Shift For Growth o Less dependence on customers for product ideas o More physician validation o Attune to market trends o Introducer product improvements - Patent pending features o Safety needle o Advanced catheter based delivery systems VENOUS INTRODUCER USAGE 2000 2001 2002 2003 Usage (000) 2,400 2,550 2,750 2,925 o Signed large volume supply o 40% market share - the agreements in 2000 largest supplier in the world o Annual introducer volume o Market share increase likely increasing to 1 million from future designs Path To The Left Heart o Slitter patent key to new growth opportunity o Guide catheter needed to reach left ventricle - tortuous path o Slitter makes removal of guide catheter possible o Partnering with Medtronic on 3rd and 4th generations Advanced Delivery Market Potential o Left ventricle pacing part of Medtronic's Bi-Ventricular pacing therapy - Bi-Ventricular pacing delivery kits garner higher prices Standard Left Ventricle Introducer Delivery System Kit Price Kit Price Increase ~$17 vs. ~$175 = ~10 Times o 750K to 1.25M potential procedures today - Medtronic estimate o BI-VENTRICULAR PACING DELIVERY KIT MARKET POTENTIAL - $130 TO $260 MILLION Safety Needles o Law requiring safer sharps devices in effect - Needlestick Safety and Prevention Act o Signed license agreement Med-Design - Med-Design is a leader in area of safety technology o Centerline retraction safety needle technology - Technology applied to a guidewire introducer needle - Easy to use - no user technique change required Guidewire Introducer Safety Needle o Submitted application to FDA for 510(k) marketing clearance - Will replace non-safe needles used in our venous introduction kits - On track to launch in 3rd quarter '01 o Licensed distribution rights - Exclusive in venous market - Non-exclusive in arterial market o Distribution strategy - OEM, Distributors, GPO's Next Generation Safety Product o All-In-One safety introducer - Filed for a patent on device in Nov. '00 - Separate license agreement with Med-Design - Utilizes centerline retraction technology o For both venous and arterial markets - Designed to replace all the components in an introducer kit - Design effort to begin in later half of 2001 Safety Products Market Potential Guidewire Introducer All-In-One Saftey Needle Saftey Introducer Price $ 4 $16 Annual Venous Procedures 2 - 3 Mil. 2 - 3 Mil. Annual Arterial Procedures 15 - 30 Mil. 15 - 30 Mil. Total Procedures 17 - 33 Mil. 17 - 33 Mil. Market Potential $68 - $132 Mil. $272 - $528 Mil. o First time presence in arterial market o Arterial market ~10 times larger than venous market 2000 - A Banner Year o 3 growth areas - Traditional introducer products o Largest supplier in the world - Advanced delivery catheter products o Potential treatment for congestive heart failure - Needlestick Safety products o Path to future offers significant opportunities o Dedicated employees MEDAMICUS, INC. 2001 INFLUENCERS o Improving sales- - New customers - LVLDS - Safety needles o Investment in research and development o Investment in manufacturing infrastructure o Cash investor versus cash borrower TOP SIX REASONS o Solid profits o Comparatively undervalued o Sufficient cash o Bi-ventricular pacing for congestive heart failure o Safety needles The Sixth Good Reason WE ARE FOCUSED