EX-99.2 3 exhibit_99-2.htm EXHIBIT 99.2 exhibit_99-2.htm


Exhibit 99.2
 
 
 
3Q 15 Financial Results
Conference Call
 
 

 
Forward Looking Statement
2
This presentation contains express or implied forward-looking statements within the
Private Securities Litigation Reform Act of 1995 and other U.S. Federal securities laws. 
This forward looking statement regarding our future growth,  increased volumes and
demand in the markets in which we operate, the roll out of our new All-In-One wireless
platforms, our ability to penetrate the local fleet vertical market, our ability to diversify and
expand our customer base, continuing demand in our defense and aerospace business,
our ability to develop new customer relationships, our ability to meet the needs of our
existing customers, market interest and acceptance of  our products, the introduction of
new products and our ability to provide our solutions to  different applications, the timing
of pending U.S. federal rulemaking and the impact of the proposed rules on our business
and our future.Such forward-looking statements and their implications involve known and
unknown risks, uncertainties and other factors that may cause actual results or
performance to differ materially from those projected. The forward-looking statements
contained in this press release are subject to other risks and uncertainties, including
those discussed in the "Risk Factors" section and elsewhere in the Company's annual
report on Form 10-K for the year ended December 31, 2014 and in subsequent filings
with the Securities and Exchange Commission. Except as otherwise required by law, the
Company is under no obligation to (and expressly disclaims any such obligation to)
update or alter its forward-looking statements whether as a result of new information,
future events or otherwise.
 
 

 
Presenters
3
Eyal Leibovitz
Chief Financial Officer
David Lucatz
Chairman of the Board and CEO
Shai Lustgarten
CEO of Micronet Ltd.
Tali Dinar
CFO of Micronet Ltd.
 
 

 
4
3rd Quarter Overview
   Quarterly revenue consistent with introduction of new full
    connectivity product line
           ■   Revenues decreased slightly sequentially compared to Q2
           Expect >60% sequential revenue growth and positive EBITDA in 4Q15
   U.S.-based sales team generating substantial interest in A317
 product line
   Strong MRM backlog growth
        ■   Significant order pipeline for All-In-One solution
        ■   Focus on large and growing local fleet market
  Continued diversification of customer base
 
 
 

 
5
Recent Developments
MRM
■   Partnership with MiX Telematics to provide TREQ 317 rugged Android tablet for
     use with the MiX Rovi in-cab display, developed as solution for compliance with
      Electronic Logging Device (ELD) Mandate
■   One of only five companies selected by New York City’s Taxi & Limousine
     Commission to participate in “Vision Zero” Vehicle Safety Technology pilot
     program
Aerospace/Defense
■   $1.85 Million order from Israeli Multinational Aerospace Contractor for
     development and production of Mobile Command & Control Centers;
     breakthrough product expected to drive growth in A&D division

 
 Several Key Announcements Following Close of 3Q15
 
 

 
Positive Outlook
6
MRM
    Local fleet market expected to grow 37% between 2014 and 20161
    Expect orders for wireless All-In-One products to build
Aerospace/Defense
    Continued reliance on missile defense systems supports potential demand for
      our missile defense offerings
■    Expect significant international demand for new Mobile Command & Control
      Centers
■    Anticipate > 60% sequential revenue growth with positive EBITDA in 4Q2015
■    Continuing strong potential for our systems and products across both
      divisions
1 Licht and Associates study (November 20, 2013)
 Macro Trends
 4Q2015 and Beyond
 
 

 
3Q14 vs 3Q15 Revenues
Sales Breakdown
Consolidated revenue for the quarter
 
 

 
8
Next Generation A-317 Tablet
    A-317 “All-In-One” tablet is a significant technology
      advancement
            Rugged, integrated tablet solution
            Offers 3.5G/4G LTE, Bluetooth and Wi-Fi applications
            Potential benefit from upcoming ELD mandate (effective Year End 2015)
 First Totally Connected Product; Transforms Product Offering
 
 

 
9
A-317 Tablet Roll Out
Product R&D
Carrier Certification;
Testing & Approval
Adaptation & Orders
   Completed
   Ongoing refinement
 with customers
   Continue to invest
      significantly in
      product
 improvement and
 customization
Carrier Certification
●   Verizon complete
   AT&T in progress
   In discussions with
     additional carriers
Customer Testing/Approval
   Multiple customers
     currently testing new
     product
   Total of ~16,000 units to
 be sold by the end of
 the year.
   $1.4M public
 transportation
 purchase order in July
   $950K fleet management
 initial purchase order
 in June
●   $4M+ school bus
 purchase agreement in
 May 2015
 
 

 
10
Income Statement Highlights
(in 000s except share and per share data)
 
 Three Months Ended September 30,
Nine Months Ended September 30,
 
2015
2014
2015
2014
 
 
 
 
 
Revenues
$ 5,556
$ 11,415
$ 16,982
$ 23,568
Cost of revenues
  4,434
  8,546
  12,275
 16,790
Gross profit

 1,122
2,869

 4,707
 6,778
 Gross profit margin
20%
25%
28%
29%
Operating expenses:
 
 
 
 
 Research and development
 485
 546
  1,951
  2,164
 % of sales
8%
5%
11%
9%
 Selling and marketing
 395
 449
1,214
 1,209
 % of sales
7%
4%
7%
5%
 General and administrative
  1,169
  1,738
  3,407
  4,219
 % of sales
21%
15%
20%
18%
Amortization of intangible assets
 282
306
 889
557
 Total operating expenses
  2,331
  3,039
  7,461
 8,149
  % of sales
42%
27%
44%
35%
 
 
 
 
 
Net income (loss) attributable to MICT
(1,263)
(506)
(2,557)
(2,111)
Basic and diluted income (loss) per share
(0.22)
(0.09)
(0.44)
(0.36)
Weighted average common shares outstanding:
5,865,221
 5,831,246
5,838,873
5,831,246
 
 

 
Non-GAAP
(in 000s except share and per share data)
11
 
 
 Three Months Ended
 September 30,
 
 Nine Months Ended
 September 30,
 
 
2015
 
2014
 
2015
 
2014
GAAP net loss attributed to MICT
 
(1,263)
 
(506)
 
(2,557)
 
(2,111)
Total amortization of acquired intangible assets
 
177
 
212
 
558
 
348
Change in fair value of call options and warrants
 
0
 
0
 
0
 
307
Amortization of UTA's note discount and related
expenses
 
0
 
6
 
0
 
61
Stock-based compensation
 
82
 
6
 
254
 
19
Expenses related to the purchase of business
 
0
 
79
 
-
 
369
Income tax-effect of above non-GAAP adjustments
 
(7)
 
(11)
 
(24)
 
(26)
Total non-GAAP net income (loss) attributed to
MICT
 
(1,011)
 
(214)
 
(1,769)
 
(1,033)
Non-GAAP net income (loss) per diluted share
 
(0.17)
 
(0.04)
 
(0.30)
 
(0.18)
Shares used in per share calculations
 
5,865,221
 
5,831,246
 
5,838,873
 
5,831,246
GAAP net income (loss) per diluted share
attributable to Micronet Enertec Technologies, Inc.
 
(0.22)
 
(0.09)
 
(0.44)
 
(0.36)
Shares used in per share calculations
 
5,865,221
 
5,831,246
 
5,838,873
 
5,831,246
 
 

 
Strong Balance Sheet
12
 
 

 
.
ELD Mandate Opportunity
13
  New regulation starting in 2017 mandates all truck drivers to keep records of
 hours of service (HOS).
       Cannot drive over 11 hours per day.
     ●   Required rest periods.
  Electronic Logging Devices (ELDs)* connect to engine and replace paper
 logbooks.
  Law being put in place requiring ELDs.
* Federal Motor Carrier Safety Administration:
Electronic Logging Devices and Hours of Service Supporting Documents”- March 2014
July ‘12
Passed by
congress
2017
Law enforced
2015
Law enacted
June ‘14
Comment period
closed
2015 500,000 ELD equipped trucks
2017 2.6 Million trucks will require ELD
Our tablets are fully compliant with the regulation
requirements
 
 

 
Thank You
14
Q & A