Cyalume Technologies Holdings Inc
Cyalume Technologies — Vector Intersect Security Acquisition — SPAC Merger (April 2008)
42 slides from Cyalume Technologies's SPAC merger presentation, Apr 28, 2008
Slide 1: Vector Intersect Security Acquisition Corporation and Cyalume Technology Investor Presentation
Vector Intersect Security Acquisition Corporation and Cyalume Technology Investor Presentation April 2008 1
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Slide 3: Safe Harbor/Forward Looking Statements
Safe Harbor/Forward Looking Statements The attached presentation was filed with the Securities and Exchange Commission as part of the Form 8-K filed by Vector Intersect Acquisition Corporation (“Vector”) on __________, 2008. vector is holding presentations for its stockholders regarding its purchase
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Slide 5: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains disclosure of EBITDA for certain periods, which may be deemed to be a non-GAAP financial measure within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Management believes that EBITDA, or earnings before intere
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Slide 7: Business Combination
Business Combination Established in July 2005 as a special purpose acquisition corporation for the purpose of acquiring an operating business in the security and defense industries. IPO on May 3, 2007, (VTRQ.OB) Sold 7.4 million units at $8.00 consisting of: One common share of Vector One common sto
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Slide 9: Investment Thesis
Investment Thesis Strong Management Attractive Valuation Team Experienced management $120 million valuation team with 30+ years at the represents 33% discount to company public P/E comps (2008) Vector sponsors have 35+ Significant upside to trust years public company share price of $7.97 experience
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Slide 11: Cyalume Overview
Cyalume Overview 15% Annual Organic Growth From Existing Products 150% Annual Growth from New High Growth Ammunition Vertical Market * Estimates for 2006 - 2010 6
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Slide 13: Company Snapshot
Company Snapshot Strong core business Predictable recurring revenue stream due to disposable Cyalume Revenue nature of products Forecast Cyalume’s core military business is stable and secured with long term contracts with the US and NATO, not dependent on the economy 80.0 The company has successfull
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Slide 15: Attractive P/E
Attractive P/E Price to Earnings Model Accelerating Growth Expected in 2009-10 2007 2008 2009 EBITDA 11.3 14.5 18.5 Driven by New Margin % 28.9% 32.0% 30.8% Ammunition Vertical Growth % 21.6% 28.5% 27.8% Favorable Valuation Effective Tax % 23.3% 14.7% 20.1% Metrics at Estimated $7.97 Trust Value Ear
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Slide 17: Cyalume Strategy: Expand Chemiluminescence Expertise into New High Growth Verticals
Cyalume Strategy: Expand Chemiluminescence Expertise into New High Growth Verticals New Military Products Police / Homeland Security Medical Applications 9
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Slide 19: New Military Products: Ammunition
New Military Products: Ammunition 40mm DAY and NIGHT MK 281 MOD1 Night vision equipment Super Owl 3rd gen. Omni V 10
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Slide 21: New Military Products: Ammunition
New Military Products: Ammunition Chemiluminescent & Photo-luminescent Revenue Technologies 25.00 Day or night operations including IR 20.00 Substantially improved tracer and marking daytime or night 15.00 Lower cost per round than live ammunition 10.00 Target of $21M revenue and 20.8M 5.00 rounds i
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Slide 23: Police / Homeland Security
Police / Homeland Security Expansion of our technology across a wide array of police, fire and homeland security applications Incursion Baton Reflective and Photo Incursion baton provides luminescent products non pyrotechnic flash Applications for police, bang effect fire and first responders iDirt
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Slide 25: Medical Applications
Medical Applications Uses of targeted, inexpensive, battery free light sources have extensive medical applications First product currently in development through partnership with Brigham and Women’s Hospital, trials to begin summer of 2008 Laryngoscope Development Agreement with Brigham and Women’s
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Slide 27: Environmentally friendly advancements
Environmentally friendly advancements Phthalate Free Formulation Use of phthalates are banned in the EU and California for use in products exposed to children All currently commercially available chemical light products include dibutyl phthalate Cyalume has developed and is in the process of launchi
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Slide 29: International Opportunities
International Opportunities Sole provider to NATO Only chem-light provider with valid NATO Stock Number NAMSA contract provides vehicle for all NATO countries to purchase Cyalume products Environmentally friendly Pan-Europe expansion product Total European sales in NATO and country specific 2007 wer
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Slide 31: Attractive High Growth, High Margin Business
Attractive High Growth, High Margin Business Predictable recurring revenue stream Revenue 2006 - 2010 due to disposable nature of products 80.0 and long term contracts 70.0 25.1% CAGR 77.1 Major product lines include 60.0 50.0 59.4 Military Chem Lights 40.0 45.2 39.0 Infrared Products 30.0 31.5 20.0
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Slide 33: Transaction Summary
Transaction Summary Transaction Sources & Uses: Rationale: ($ in millions) Cyalume is an excellent fit to Sources Vector’s acquisition strategy SPAC Cash Held in Trust $56.2 Market leader with proprietary New Credit Facilities 23.4 New Stock Issued to Cyalume Shareholders 41.0 technology Total Sourc
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Slide 35: Attractive Valuation
Attractive Valuation Cyalume High Growth Peers 4/15/2008 P/E The Cyalume acquisition is at a Company 2008E 2009E significant discount to comparable company mean FLIR Systems Inc. 24.9x 20.9x publicly traded II-VI Inc. 22.4x 20.3x 2008 P/E multiples show TASER International Inc. 27.5x 18.6x considera
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Slide 37: Conclusion
Conclusion Cyalume is the Right Company for a SPAC of our Size Valuation is Compelling at Trust Growth Outlook Strong and Cyalume is an Exciting Story for Public Investors Cyalume products are embedded in daily operations of the worlds largest militaries at the individual soldier level Shown here li
Slide 38: Vector Intersect Acquisition Corp. formed as a special purpose acquisition corporation
Vector Intersect Acquisition Corp, was formed as a special purpose acquisition corporation in July 2005 for the purpose of acquiring an operating business in the security and defense industries. Vector Intersect completed its IPO on May 3, 2007, and began a search that would encompass more than thir
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Slide 40: Growth Strategy and Post Acquisition Management Team
Growth Strategy Post Acquisition Management Team Cyalume has realized healthy growth over the past Winston Churchill – Chairman three years in its base business and expects to Founder and managing partner of SCP Partners accelerate that growth through several key 25 Years of private equity investing
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Slide 42: Transaction Summary
Transaction Summary Transaction Sources & Uses: Rational: ($ in millions) Cyalume is an excellent fit Sources to Vector’s acquisition SPAC Cash Held in Trust $56.2 strategy New Credit Facilities 23.4 Market leader with New Stock Issued to Cyalume Shareholders 41.0 proprietary technology Total Source
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