Law Enforcement Associates Corp
Law Enforcement Associates — Investor Presentation (June 2007)
25 slides from Law Enforcement Associates's investor presentation, Jun 22, 2007
Slide 1: Law Enforcement Associates Corporate Overview
Global Leader in Electronic Surveillance Law Enforcement Associates Corporate Overview 2007
Slide 2: Safe Harbor Statement
Global Leader in Electronic Surveillance Safe Harbor Statement The statements in this Presentation contain forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve certain risks, assumptions and uncertainties, inc
Slide 3: Company Overview
Company Overview • LEA manufactures and distributes undercover surveillance products - A complete line of audio surveillance equipment - An array of video surveillance products ranging from disguised miniature cameras to video transmission and recording systems. • LEA has well established direct cus
Slide 4: Key Facts
Key Facts AMEX Symbol “AID” Corporate Headquarters Youngsville, NC, Stock Price (06/22/07) || 52-Week Range $0.71 || $0.50 – 1.60 Shares Outstanding (3/31/07) 25,252,433 Market Capitalization $17,929,227 Volume (daily 90-day average) 20,607 Debt (3/31/07) $10,000 Cash (3/31/07) $620,130 Fiscal 2006
Slide 5: Experienced Leadership
Experienced Leadership Paul Feldman, President • Joined LEA in 1989, President since 1993 • Member: Corporate Advisory Board, National Drug Enforcement Officers Association DEA; Police Advisory Committee, Carolina Beach North Carolina; American Society Industrial Security; Narcotic Officers Associat
Slide 6: Board of Directors
Board of Directors Paul Feldman, President Director since May 2003 Martin Perry, Director of Sales Director since May 2003 Independent Directors: Anthony Rand, North Carolina Senator Senator Rand has served as a director of the company since May 2003. He has been the Senate majority leader for the N
Slide 7: Audio & Video Surveillance Equipment
Audio & Video Surveillance Equipment • State-of-the-art, top quality audio & video products • LEA only U.S. manufacturer of Audio Intelligence devices. This is Key when obtaining contracts from the U.S. Government • Sold exclusively to Law Enforcement Agencies worldwide 6
Slide 8: Under Vehicle Inspection System (UVIS)
Under Vehicle Inspection System (UVIS) • Clear, high contrast, real-time video inspection of car, van & truck undercarriages. Used at entry & exit points of secured areas & facilities • Over 1900 units deployed worldwide at military bases, nuclear facilities, embassies, government installations, oil
Slide 9: RD-B-UVIS Check-Point Trailer System
RD-B-UVIS Check-Point Trailer System • Trailer-mounted, fortified guard station works in conjunction with UVIS • Two-way audio/video system allows user to monitor UVIS outside potential blast zone • 30-caliber or 50-caliber ballistic protection • Heat and air-conditioning system • Heavy-duty, highwa
Slide 10: Quick Install GPS Tracking Systems
Quick Install GPS Tracking Systems • Used by law enforcement personnel to monitor vehicles of suspected criminals, throughout the United States, Canada and Mexico • Enables real-time position tracking, speed & direction of suspect’s vehicle • Keeps detailed, visually enhanced record of suspect’s act
Slide 11: LEA Branding Partnership
LEA Branding Partnership • Worldwide product licensing agreement signed in third quarter 2006 with this global provider of products for safety, security, protection and sport • Partnership provides exposure in key new markets: private security, public transit, facilities management • LEA leveraging
Slide 12: Smith & Wesson SWIFT Under Vehicle Inspection System
Smith & Wesson SWIFT Under Vehicle Inspection System • Compact, portable, low-profile version of traditional UVIS • Smaller size and lower price point open access to new market segments: 9 Industrial facilities 9 Research institutions 9 Airports 9 Parking facilities 9 Correctional institutions 11
Slide 13: Smith & Wesson EDK 123: Explosive Detection Kit
Smith & Wesson EDK 123: Explosive Detection Kit • A fast, reliable field test for detection of trace nitrates found in over 85% of all explosives • Kit provides a first line of defense in identifying trace nitrate-based explosive residues (TNT, dynamite, Sentex, RDX, ammonium nitrates) • Currently i
Slide 14: Key New Product Offering: Crime Alert Security Cam
Key New Product Offering Crime Alert Security Cam • Product features: 9 Auto dial-out/email system with video/image stream 9 Low-light video capability 9 Multiple covert, weather-proof enclosure options 9 Attractive price point: $3,000 13
Slide 15: Crime Alert Security Cam: Addressing Nationwide Epidemic
Crime Alert Security Cam: Addressing Nationwide Epidemic • U.S. municipalities have endured an estimated $15 billion to $18 billion in graffiti-related property damage. - Nograf Network Inc. • Los Angeles County spends roughly $55 million per year on graffiti removal. - 2002 survey by Public Technol
Slide 16: Customers
Customers • 18,000 police departments • Military organizations • Government and non-governmental agencies - NATO - United Nations • Major Events - Democratic/Republican Conventions - Olympics and U.S. Open • Security and corrections organizations • Worldwide customer base 15
Slide 17: Sales & Distribution
Sales & Distribution • Direct sales force in place - 10 in-house salesmen - Full U.S. coverage • International distribution channels - Agents and integrators in local markets - U.S. government agencies- U.S. Justice Dept., U.S. State Dept., FBI • Sales cycle typically 45 days for initial customer sa
Slide 18: Manufacturing / R&D
Manufacturing / R&D • RESEARCH AND DEVELOPMENT - Market need / trend driven - Application Driven – Focused on the application of technology to Law Enforcement community - System Integration / Turnkey Solutions - Four employees committed to R&D efforts - Time to Market – Typically 3-4 months • MANUFA
Slide 19: Competitive Advantages
Competitive Advantages • Diverse product line - Surveillance leader - Limited core product competition • Direct sales force • Established customer relationships - Diversified distribution channels • New product launch underway • Manufacturing capabilities • Branding relationship with Smith & Wesson
Slide 20: Balance Sheet as of 3/31/07
Balance Sheet as of 3/31/07 19
Slide 21: Financial Performance Review
Financial Performance Review 2004 2005 2006 Sales $ 6,236,000 $ 8,157,000 $ 7,547,000 Gross profit $ 2,835,000 $ 2,989,857 $ 2,609,000 % margin 46% 37% 35% Net income (loss) $ (849,000) $ (282,000) $ (3,047) EPS ($) $ (0.04) $ (0.01) $ (0.00) 20
Slide 22: 2007 Revenue Growth Opportunities
2007 Revenue Growth Opportunities • Smith & Wesson branded-product sales - Responding to multiple RFPs for UVIS Swift - New budget cycle bringing increased interest • Deeper penetration of law enforcement customers - Introducing new core-line products - Stronger, motivated sales team • Third-party p
Slide 23: Acquisition Strategy
Acquisition Strategy • Acquire complementary companies - Enhance products/distribution/customers - Reduce SG&A expenses • Acquire/license new products • Initiate product/marketing joint ventures 22
Slide 24: Summary
Summary • Worldwide security and surveillance market exceeds $4 Billion and is growing • LEA’s product line is extremely diverse • Company owns one of leading brands in law enforcement surveillance equipment • Smith & Wesson relationship opens doors to new market opportunities • Major new product of
Slide 25: For More Information, Contact
Global Leader in Electronic Surveillance For More Information, Contact: Paul Feldman, President leacorp@lea.com / 800-354-9669 Geoff High Pfeiffer High Investor Relations, Inc. geoff@pfeifferhigh.com 303-396-7044
Law Enforcement Associates — Investor Presentation (June 2007) on 6ix