Cardiac Science — Needham Growth Conference (January 2006)
22 slides from Cardiac Science's conference presentation, Jan 11, 2006
Slide 1: Needham Growth Conference
Needham Growth Conference January 11, 2006 Nasdaq: CSCX Cardiac Science Corporation
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 global leader in cardiology devices
Cardiac Science is a global leader in developing and marketing a broad range of non- invasive diagnostic and therapeutic cardiology devices 3 Cardiac Science Corporation
Slide 4: Investment Characteristics
Investment Characteristics Growing $2 billion plus market, expected to increase around 50% by 2009 Strong product portfolio Leading brands Broad global distribution Substantial development expertise and IP portfolio Leveraged business model Stock currently trading around 1x revenue 4 C
Slide 5: From Discovery to Recovery
FROM DISCOVERY TO RECOVERY Cardiac Science Corporation Cardiac Science 5
Slide 6: Estimated Worldwide Market
Estimated Worldwide Market 2006 (1) 2010 (1) Annual demand Annual demand should exceeds $2 billion exceed $3 billion Defibrillation Defibrillation Cardiac Monitoring Cardiac Monitoring Growth will be driven primarily by AEDs (1) Public Filings, Frost & Sullivan and Company Estimates 6 Cardiac Scienc
Slide 7: 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 Distinguishing characteristics: Service, Innovation and Brand 7 Cardiac Science Corporation
Slide 8: Products – Rehabilitation & Management
Products – Rehabilitation & Management Cardiac Rehabilitation Cardiology Telemetry Data Management ECG Analysis / Monitoring ECG Analysis during Rehabilitation Exercise during Data Collection Distinguishing characteristics: Workflow, Implementation and Flexibility 8 Cardiac Science Corporation
Slide 9: 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 Distinguishing characteristics: Reliability,
Slide 10: Distribution and Brands
Distribution and Brands Channel Products Primary Brand U.S. Cardiac Monitoring Primary Care Defibrillation U.S. Cardiac Monitoring Acute Care U.S. Defibrillation Public Access (AEDs) International All Products All Brands 10 Cardiac Science Corporation
Slide 11: Research & Development
Research & Development 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 voltage applications and data management 1
Slide 12: Intellectual Property
Intellectual Property Multiple Patents - US owned 91 - Foreign issued 15 - Pending 27 Successful defense of patents, including licenses to others Recent patents include better screening tools for risk of cardiovascular death 12 Cardiac Science Corporation
Slide 13: Growth History
Growth History Revenue ($ in millions) $180 $160 $140 35% $120 CAGR $100 $80 $60 $40 $20 $0 2002 2003 2004 2005 2006E 13 Cardiac Science Corporation
Slide 14: Growth Strategy
Growth Strategy Capitalize on emerging AED market Broaden distribution in international markets Expand through innovative distribution and marketing (GE “crash cart”, AEDs in Schools) Continue new product introductions Leverage our service capabilities Complement organic growth with acqu
Slide 15: YTD Results
YTD Results 9/30/06 9/30/05(1) Revenue $116.5M $106.1M Net Income (Loss) $ 0.1M $ (8.8M) EPS $ 0.00 $ (0.39) Adjusted EBITDA (2) $ 6.7M $ (10.6M) Operating Cash Flow $ 8.7M $ (3.5M) (1) YTD 2005 represents pro forma combined CSI and Quinton results, excluding non-cash goodwill impairment and merger-
Slide 16: Balance Sheet Highlights
Balance Sheet Highlights 9/30/06 Cash $ 10.7M A/R DSO 53 Inventory Turns/Year 4.0 Net Working Capital $ 32.2M Deferred Tax Assets $ 41.3M Long-Term Debt $ 0.0 Shareholder’s Equity $ 215.1M 16 Cardiac Science Corporation
Slide 17: YTD Accomplishments
YTD Accomplishments • Consolidated predecessors Quinton and CSI without business interruption • Achieved $12 million in annual cost savings • Demonstrated revenue growth – Q3 pro forma revenue up 16% – YTD pro forma revenue up 10% – YTD pro forma defibrillation revenue up 29% • YTD Operating Cash Fl
Slide 18: Recent Accomplishments
Recent Accomplishments • New products in multiple channels and markets - Electrocardiographs (low, mid-range) - Connectivity solutions (HeartCentrix EMR) - AEDs (Rescue Coach, Japanese) - R2K (“crash cart” defib) pilot shipments • Extended R2K agreement with GE to 5 years • Several Significant Schoo
Slide 19: Milestones Ahead
Milestones Ahead • Continue momentum in worldwide defibrillation and international cardiac monitoring • Improve domestic cardiac monitoring performance • Accelerate adoption of new Japanese AED • Begin full shipments of the R2K “crash cart” • Manage near term litigation expenses Cardiac Science Corp
Slide 20: Financial Model (next 2-3 years)
Financial Model (next 2-3 years) Income Statement: Revenue growth in a range around 10% Operating expense growth about half of revenue growth rate Improving gross margins (subject to mix) Operating margin to 10 - 15% target Cash Flow: Free cash flow higher than implied by earnings $3 - 5
Slide 21: Summary
Summary Growing $2 billion plus market, expected to increase around 50% by 2009 Strong product portfolio Leading brands Broad global distribution Substantial development expertise and IP portfolio Leveraged business model Stock currently trading around 1x revenue 21 Cardiac Science Cor
Slide 22: Cardiac Science Corporation
Cardiac Science Corporation Nasdaq: CSCX Cardiac Science Corporation
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