Slide 1: Investor Presentation
INVESTOR PRESENTATION NASDAQ: TACT
Slide 2: Safe Harbor
SAFE HARBOR Certain statements included in this press release may be forward-looking statements within the meaning of the U.S. federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements are any statements other than statements of historical fa
Slide 3: Cautionary Statement Regarding Preliminary Estimated Financial Information
CAUTIONARY STATEMENT REGARDING PRELIMINARY ESTIMATED FINANCIAL INFORMATION The Company has prepared the preliminary financial information set forth below on a materially consistent basis with its historical financial information and in good faith based upon its internal reporting as of and for the t
Slide 4: Trademarks, Service Marks, Trade Names and Copyrights
TRADEMARKS, SERVICE MARKS, TRADE NAMES AND COPYRIGHTS Trademarks, service marks and trade names appearing in this presentation are the property of their respective owners. The trademarks we own include TransAct®, BOHA! ®, AccuDate™, Epic, EPICENTRAL®, Mobile Host™ and Ithaca®. Solely for convenience
Slide 5: About TransAct
ABOUT TRANSACT® TransAct Technologies Incorporated designs and delivers fully integrated, purpose-built, transaction solutions. Our mission is to automate transactions of all sorts, on the edge, in the moment! We have a history of innovation, originally delivering the first stand-alone POS printers
Slide 6: Evolution of TransAct
EVOLUTION OF TRANSACT Gaming Solutions (Epic) Food Service Technology (BOHA!) • Transaction printers for the • Complete back-of-house solution worldwide gaming and casino market for restaurants and convenience stores with large recurring revenue component • Historically, prior to the Covid-19 pandem
Slide 7: Investment Considerations
INVESTMENT CONSIDERATIONS 1 Early Innings of a Corporate Transformation Characterized by Shift to a Recurring Revenue Model • Cash flows from gaming and casino printers and software products + POS printers fueling investment and growth in software-based food service technology • Company shifting to
Slide 8: BOHA! Is in the Early Stages of Successfully Adding New Food Service Customers
BOHA! IS IN THE EARLY STAGES OF SUCCESSFULLY ADDING NEW FOOD SERVICE CUSTOMERS! BOHA! is a software-driven technology and printing solution for the food service market. We have helped thousands of food service operators improve their back-of-house operations, improve food safety, reduce operating co
Slide 9: Back-of-House Automation Starts Here
BACK-OF-HOUSE AUTOMATION STARTS HERE 9
Slide 10: Market Opportunity
MARKET OPPORTUNITY Potential Contact Points 2022 Total Restaurants and Bars 690,098 BOHA! represents a tremendous opportunity to generate Limited-Service Restaurants Fast Casual 334,328 51,149 Fast Food/Quick Service 283,179 recurring revenue through the sale of software, consumables Full-Service Re
Slide 11: Why Back-of-House Automation
WHY BACK-OF-HOUSE AUTOMATION • Front-of-house automation systems (food ordering, reservations) is a well established category >$15 Billion Hardware, Software and Services revenue in 2019* • The back-of-house has been largely ignored, but as focus shifts to improving operations around food safety, cu
Slide 12: Tailwinds for Back-of-House Technology
TAILWINDS FOR BACK-OF-HOUSE TECHNOLOGY ✓ FDA Food Safety Modernization Act mandates nutritional labeling for grab ‘n go items ✓ FDA Smarter Food Safety Program wanting technology to create a safer more digital, traceable food system ✓ Convenience stores and Grocery stores expanding fresh food offeri
Slide 13: BOHA! Unit Economics
BOHA! UNIT ECONOMICS • Initial sale approximately $500-$1000 per unit for the BOHA! food safety terminals • Recurring revenues of approximately $500-$1000 per year per terminal in high-margin software, services and label sales • Generally 3-year contracts 13
Slide 14: What Some BOHA! Customers Are Achieving by Deploying Our Solution
WHAT SOME BOHA! CUSTOMERS ARE ACHIEVING BY DEPLOYING OUR SOLUTION 14
Slide 15: Product Roadmap
PRODUCT ROADMAP 20 20 20 20 20 2012 2012 2014 2016 2019 2020 2021 2022 2023 14 16 19 20 21 • AccuDate 9700 for • AccuDate PRO • AccuDate XL • BOHA! Terminal and • iOS Native Apps • Completed iOS • Build-Your-Own (BYO) • Launched BOHA! T2 McDonald’s, to BOHA! ecosystem of Support Functionality automa
Slide 16: BOHA! Leading the Digital Revolution for Back-of-House Operations
BOHA! – LEADING THE DIGITAL REVOLUTION FOR BACK-OF-HOUSE OPERATIONS BOHA! RESTAURANT OPERATIONS PLATFORM Employee and Grab ‘N Go Merchandising & Brand Standards & Food Safety Customer Health & FDA-Compliance Food Quality Safety Labeling Media Checklist Temp Timer BOHA! Control Center Functions Nativ
Slide 17: Hear About BOHA! From a Customer
HEAR ABOUT BOHA! FROM A CUSTOMER 17
Slide 18: BOHA! Terminal Growth
BOHA! TERMINAL GROWTH # REVENUE GENERATING TERMINALS YEAR QUARTER CUMULATIVE TOTAL 2021 1st Quarter 7,009 2021 2nd Quarter 7,942 2021 3rd Quarter 8,749 2021 4th Quarter 9,818 2022 1st Quarter 10,127 2022 2nd Quarter 10,941 2022 3rd Quarter 11,929 2022 4th Quarter 12,180 2023 1st Quarter 12,733 2023
Slide 19: BOHA! Recurring Revenues ($000)
BOHA! RECURRING REVENUES ($000) 2020 Q1 Q2 Q3 Q4 TOTAL $616 $659 $1,578 $943 $3,796 - 96% YOY 2021 Q1 Q2 Q3 Q4 TOTAL $1,205 $2,066 $2,017 $2,111 $7,399 – 95% YOY 2022 Q1 Q2 Q3 Q4 TOTAL $1,567 $2,179 $2,561 $2,404 $8,711 – 18% YOY 2023 Q1 Q2 Q3 Q4 TOTAL $2,327 $2,488 $3,129 $3,194 $11,138 – 28% YOY 2
Slide 20: The Name in Casino Printing and Marketing Software Solutions
THE NAME IN CASINO PRINTING AND MARKETING SOFTWARE SOLUTIONS 20
Slide 21: Casino & Gaming
CASINO & GAMING Industry-leading Casino and Gaming printer business provides a strong financial foundation for TransAct’s ongoing investments in its Food Service Technology business CASINO • Award-winning Epicentral software system, now with Mobile Host • Epic Ticket-in/Ticket-out printers for slot
Slide 22: Epic Edge
EPIC EDGE™ Next-generation casino and gaming printer • First TITO printer to offer 300 DPI print resolution (a more than 2x improvement over current printers) • Improves bill validator performance and coupon artwork, reduces attendant calls • Fully equipped with serial and USB interfaces that are co
Slide 23: Epic TR80
EPIC TR80™ Next-generation roll fed printer for Betting, Video Lottery Terminals and more • Perfect print every time – Ticket Burst™ technology prints up to 8.5” long and cuts receipts before presenting • Modular design – configurable to any space with adjustable bracket and spindle • Accommodating
Slide 24: Epicentral 4.0
Delivers printed coupons and promotions in real-time • Communicates with Epic Edge and Epic 950 printers • Works with nearly all electronic gaming devices and slot management systems • Extends time-on-device, increases player spend and generates increased customer loyalty EPICENTRAL 4.0 • New featur
Slide 25: Epicentral Mobile Host
EPICENTRAL® MOBILE HOST ™ Giving casino hosts the ability to reward customers at play with on-demand awards & coupons • Casino floor staff can print promotional coupons directly to a player’s active slot machine from iPad tablet • Using a data connector, hosts can quickly access carded player inform
Slide 26: Casino Business Update
CASINO BUSINESS UPDATE • Pent up demand from casinos being shut down accelerating new game deliveries • Traffic at casinos has recovered to pre-pandemic levels • Customers working through inventory oversupply • Expect full recovery to normalized levels by end of 2024 26
Slide 27: Financial Overview
TRANSACT* FINANCIAL OVERVIEW TRANSACT’
Slide 28: Income Statement (Full Year)
INCOME STATEMENT US$ in thousands, except per share data and percentages Year Ended December 31, 2023 2022 2021 Net sales $72,631 $58,139 $39,386 Gross profit 38,400 24,412 15,382 Gross margin 52.9% 42.0% 39.1% Operating income (loss) 5,706 (7,677) (9,377) Income (loss) before income taxes 5,903 (7,
Slide 29: Income Statement (Q1)
INCOME STATEMENT US$ in thousands, except per share data and percentages Three Months Ended March 31, 2024 2023 Net sales $10,687 $22,270 Gross profit 5,624 12,255 Gross margin 52.6% 55.0% Operating income (loss) (1,301) 3,813 Income (loss) before income taxes (1,313) 3,768 Net income (loss) (1,036)
Slide 30: Balance Sheet
BALANCE SHEET US$ in thousands March 31, 2024 December 31, 2023 December 31, 2022 December 31, 2021 Cash and cash equivalents $10,631 $12,321 $7,946 $19,457 Accounts receivable, net 7,780 9,824 13,927 7,593 Inventories, net 19,171 17,759 12,028 7,711 Other assets 14,336 14,294 17,931 16,173 Total as
Slide 31: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES TransAct is providing certain non-GAAP financial measures because the Company believes that these measures are helpful to investors and others in assessing the ongoing nature of what the Company’s management views as TransAct’s core operations. EBITDA and adjusted EBITDA
Slide 32: Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
TRANSACT TECHNOLOGIES INCORPORATED RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA NON-GAAP FINANCIAL MEASURES US$ in thousands Year Ended December 31, 2023 2022 2021 Net (loss) income 4,748 (5,936) $(4,041) Interest expense, net 255 208 96 Income tax (benefit) expense 1,155 (1,965
Slide 33: Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA (Q1)
TRANSACT TECHNOLOGIES INCORPORATED RECONCILIATION OF NET (LOSS) INCOME TO EBITDA AND ADJUSTED EBITDA NON-GAAP FINANCIAL MEASURES US$ in thousands Three Months Ended March 31, 2024 2023 Net income (loss) $(1,036) $3,139 Interest expense, net (48) 66 Income tax (benefit) expense (277) 629 Depreciation
Slide 34: Recap
RECAP • The BOHA! market opportunity is an over $1 billion-dollar market • Transitioning to recurring revenue business • Restaurants need to add technology to their operations to lower costs, protect customers and their employees • Food Safety in the restaurant, convenience store and grocery store m