Cardiac Science — Investor Presentation (May 2006)
21 slides from Cardiac Science's investor presentation, May 17, 2006
Slide 1: Cardiac Science Corporation
Cardiac Science Corporation Nasdaq: CSCX 1
Slide 2: Forward Looking Statements
Forward Looking Statements This press release contains forward-looking statements, including, but not limited to, those relating to Cardiac Science Corporation’s future revenue growth and profitability that involve a number of risks and uncertainties. These are forward- looking statements for purpos
Slide 3: Cardiac Science is a leading global provider of cardiology devices
Cardiac Science… is a leading global provider of non- invasive diagnostic and therapeutic cardiology devices with substantial opportunities for growth. 3 3 Cardiac Science Corporation
Slide 4: Investment Considerations
Investment Considerations Growing $2 billion plus market Strong product portfolio Highly regarded brands Broad distribution capabilities Substantial technology expertise and intellectual property Excellent near and long-term growth potential 4 4 Cardiac Science Corporation
Slide 5: Managing Heart Disease
Managing Heart Disease Monitoring Diagnosis Management Defibrillation Rehabilitation 5 5 Cardiac Science Corporation
Slide 6: Estimated Worldwide Market – 2005
Estimated Worldwide Market – 2005 (1) Annual demand approaching $2 billion Automated External Defibrillation $0.3 B Cardiac Monitoring $1.0 B Other External Defibrillation $0.6 B (1) Frost & Sullivan and Company Estimates 6 6 Cardiac Science Corporation
Slide 7: Estimated Worldwide Market – 2009
Estimated Worldwide Market – 2009 (1) Annual demand approaching $3 billion Automated External Defibrillation $1.0 B Cardiac Monitoring $1.25 B Other External Defibrillation $0.75 B (1) Frost & Sullivan and Company Estimates 7 7 Cardiac Science Corporation
Slide 8: Products – Diagnosis and Monitoring
Products – Diagnosis and Monitoring Electrocardiographs Cardiac Stress Testing Holter Monitors ECG Analysis ECG Analysis ECG Analysis / Monitoring Heart at Rest Elevated Heart Rate Various Heart Rates Our advantages are Service, Innovation and Brand 8 8 Cardiac Science Corporation
Slide 9: Products – Rehabilitation & Management
Products – Rehabilitation & Management Cardiac Rehabilitation Cardiology Telemetry Data Management ECG Analysis / Monitoring ECG Analysis during Rehabilitation Exercise during Data Collection Our advantages are Workflow, Implementation and Flexibility 9 9 Cardiac Science Corporation
Slide 10: Products – Defibrillation
Products – Defibrillation Automated Patient External Defibrillators Hospital Defibrillators Monitor Defibrillators ECG Analysis ECG Monitoring ECG Analysis / Monitoring with Automated Defibrillation with Manual Defibrillation with Automated Defibrillation Our advantages are Reliability, Features and
Slide 11: Brands and Distribution
Brands and Distribution Cardiac Monitoring / Defibrillation Domestic Primary Care International Cardiac Monitoring Domestic Acute Care International Defibrillation Domestic Public Access International 11 11 Cardiac Science Corporation
Slide 12: Development and Engineering
Development and Engineering Approximately 100-person staff with: Excellent domain knowledge in ECG algorithms for analyzing the cardiac function Experience in developing hardware components to digitize ECG signals Specific additional expertise in artifact filtering, software development, high
Slide 13: Intellectual Property
Intellectual Property Multiple Patents - US owned 75 - Foreign issued 29 - Pending 18 Have successfully defended intellectual property and licensed it to others Additional patents have recently been filed Current work includes better screening tools for risk of cardiovascular death 13 13 Car
Slide 14: Growth Strategy
Growth Strategy Exploit under-penetrated and emerging segments Create new opportunities through innovation Broaden distribution for current products Leverage our service capabilities Complement organic growth with acquisitions 14 14 Cardiac Science Corporation
Slide 15: 2006 Growth – Major Initiatives
2006 Growth Major Initiatives AED Market Growth Enhance US direct sales force Add select distributors Cardiac Monitoring Growth Connectivity Localization for international markets Grow AED share in Japan Increase GE defibrillation sales 15 15 Cardiac Science Corporation
Slide 16: 2006 Growth – New Releases
2006 Growth New Releases Defibrillation: AED software (AHA guidelines, enhanced functionality) “Crash Cart” defibrillator-monitor Consumer AED Cardiac Monitoring: Heartstride low-cost stress test Atria 6100 mid-range electrocardiograph Additional electrocardiograph languages Updated ca
Slide 17: Q1 Results
Q1 Results Q1 ’06 Q1 ’05 (1) Revenue $39.1M $ 35.7M Net Income (Loss) $ 0.3M $ (2.6M) EPS $ 0.01 $ (0.12) Adjusted EBITDA (2) $ 2.9M $ 0.2M Operating Cash Flow $ 3.6M $ (2.3M) Net Cash (Debt) $ 6.2M $ (21.7M) (1) Q1 ’05 represents pro forma combined CSI and Quinton results, excluding non-cash goodwi
Slide 18: 2006 Guidance
2006 Guidance Revenue $160M - $175M Net Income $ 5.0M - $ 6.0M EPS $ 0.21 - $ 0.27 Stock-based compensation of ~ $2.7M (~ $0.11 per share) Depreciation & amortization of ~ $7.0M (~ $0.19 per share) Adjusted EBITDA ~ 11% to 14% of revenue (excl. stock comp) Minimal cash income taxes, due to NOL benef
Slide 19: Financial Model (next 2-3 years)
Financial Model (next 2-3 years) Income Statement: Double-digit revenue growth Operating expense growth about half of revenue growth rate Improving gross margins (subject to mix) Operating margin approaching 15% target Cash Flow: Free cash flow higher than implied by earnings $3 - 5M in
Slide 20: Summary
Summary Growing $2 billion plus market Strong product portfolio Highly regarded brands Broad distribution capabilities Substantial technology expertise and intellectual property Excellent near and long-term growth potential 20 20 Cardiac Science Corporation
Slide 21: Cardiac Science Corporation
Cardiac Science Corporation Nasdaq: CSCX 21