Accuray Incorporated · NASDAQ:ARAY
Accuray — Investor Presentation (January 2018)
22 slides from Accuray's investor presentation, Jan 8, 2018
Slide 1: Safe Harbor Statement
Safe Harbor Statement Statements in this presentation (including the oral commentary that accompanies it) that are not statements of historical fact are forward-looking statements and are subject to the "safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking
Slide 2: Introduction
Introduction 3 Installed Systems > 850 Worldwide LTM Gross Orders: $304 million LTM Revenue: $388 million LTM Product Revenue: $183 million LTM Service Revenue: $205 million LTM Adjusted EBITDA(b): $22 million Backlog(c): $465 million; 14% increase YoY Recent Financial Performance(a) Headquarters: S
Slide 3: Our Market: Radiation Therapy Growth Opportunity
Our Market Radiation Therapy Growth Opportunity* 4 * Source: “Expanding global access to radiotherapy,” published in The Lancet Oncology in September 2015 Radiation Therapy Comparative cost effectiveness 3x 5x 3x $2T Global Economic Burden in 2010 10% of patients have access to Radiation Therapy in
Slide 4: Radiation Therapy Capacity Gap Drives Global Demand
Radiation Therapy Capacity Gap Drives Global Demand 5 *Source: The Lancet Oncology Commission – “Expanding Global Access to Radiotherapy, Volume 16 September 2015 Edition. Linear Accelerators Needed by 2035 * Linear Accelerators 2015 13,100 Gap 8,700 2035: Needed 21,800 Existing Gap
Slide 5: Fiscal 2018 Key Priorities
Fiscal 2018 Key Priorities 6 Capitalize on improved product performance / reliability from our latest generation products Drive order / revenue growth that exceeds overall market growth rates Execute hardware upgrade and software roadmap Accelerate backlog conversion to revenue in distributor market
Slide 6: Strong Portfolio Alignment with Market Needs
Strong Portfolio Alignment with Market Needs 7 IMRT 5-year market growth estimate 2015-2020: +40%* SBRT 5-year market growth estimate 2015-2020: +31%* *Source: U.S. data. The Advisory Board Company – Service Line Forecast Compendium, 2016 Edition. Robotic SBRT Sub-millimeter precision Spares healthy
Slide 7: CyberKnife System: Robotic Precision
CyberKnife® System: Robotic Precision 8 Reduction in treatment delivery time by 30% – 40%; often fitting into a more standard 20-30 minute treatment time slot, depending on case complexity Hypofractionated treatment delivery drives benefits for patients and payers Expanded clinical utility: intracra
Slide 8: CyberKnife SBRT Clinical Studies: Long-term Prostate Treatment Results
CyberKnife® SBRT Clinical Studies 9 Long-term Prostate Treatment Results * * Source: Meier et al. Five-Year Outcomes From a Multicenter Trial of Stereotactic Body Radiation Therapy for Low- and Intermediate-Risk Prostate Cancer. Int J Radiat Oncol Biol Phys. 2016 Oct 1;96(2S):S33-S34; abstract 74; F
Slide 9: Radixact System: A Do-it-All Workhorse System
High Treatment Precision for Broader Case Mix Treatment of simple and complex cases Adaptive treatment and retreatment planning Radixact™ System: A Do-it-All Workhorse System Newest Generation TomoTherapy® System 10 Faster, More Efficient, Reliable Delivery Faster linear accelerator and improved ima
Slide 10: CyberKnife & Radixact Platform Roadmaps
CyberKnife® & RadixactTM Platform Roadmaps * Clinical Quality, Speed, Ease of Use 11 Currently Under Development: Imaging Innovation Motion Compensation * Under Development - Not available for commercial sale CyberKnife Radixact Currently Under Development: Integrated High Definition Imaging Adaptiv
Slide 11: Recent Software Innovation Improving Workflow Efficiency, Connectivity, Speed and Throughput
Accuray Precision™ Treatment Planning System and iDMS™ Data Management System as software foundation for CyberKnife® and TomoTherapy® Systems providing efficiencies in workflow New iDMS Data Management System upgrade for TomoTherapy System providing connectivity with other systems, treatment plannin
Slide 12: Improving Gross Order Consistency
Improving Gross Order Consistency 13 $ millions Improved gross orders consistency beginning in Q2’FY17 relative to meeting or exceeding consensus expectations now a four quarter trend Exceeds Meets Exceeds Exceeds
Slide 13: Regional Geographic Highlights
Regional Geographic Highlights Commercial Execution 14 Europe: Multi-system orders driving growth; strong CyberKnife® product mix; strong replacement market opportunity Japan: Return to historic revenue levels in FY 2017; largest market share region; Radixact™ System launch positively impacting orde
Slide 14: Driving Improved Revenue Conversion
Driving Improved Revenue Conversion FY 2018 Initiatives – Optimize Revenue Conversion 15 Created VP of Revenue Management role in May 2017; reporting to CFO; increased accountability Investment in region-level project management resources to support distributor and revenue conversion Reported Q1 FY1
Slide 15: Service is a Recurring Revenue Source
Fiscal 2017 Service revenue of $204 million >50% of FY17 revenue is service related >90% installed base is under a service contract Gross margin of 37% Identifiable pathway to 40% gross margin Higher mix of newer systems with improved system reliability Reduced parts consumption Scale (installed bas
Slide 16: Balance Sheet / Capital Structure Improvement
Balance Sheet / Capital Structure Improvement 17 Lowered overall debt exposure from $215 million two years ago to $154 million, assuming we retire the February 2018 convertible notes using the term loan and cash on hand Significant progress in FY 2017 and early FY 2018 in restructuring and refinanci
Slide 17: Reaffirming Fiscal 2018 Guidance
Reaffirming Fiscal 2018 Guidance 18 Revenue $390 million to $400 million Represents ~ 2 to 4 percent overall YoY growth Product revenue growth ~ 5 to 10 percent YoY Adj. EBITDA $25 million to $30 million* Represents ~ 23 to 47 percent YoY growth Gross Orders Growth of approximately 5 percent * For G
Slide 18: Reaffirming Fiscal 2018 Guidance
Reaffirming Fiscal 2018 Guidance Revenue $390 million to $400 million - Represents ~ 2 to 4 percent overall YoY growth - Product revenue growth ~ 5 to 10 percent YoY Gross Orders Growth of approximately 5 percent Adj. EBITDA $25 million to $30 million* - Represents ~ 23 to 47 percent YoY growth * Fo
Slide 19: Confidence in the Outcomes That Matter Most to You
CONFIDENCE IN THE OUTCOMES THAT MATTER MOST TO YOU _ a SP accuray Precise, innovative tumor treatments © Accuray andlor its affliates. lights reserved, 19
Slide 20: Appendix A: Reconciliation of GAAP Net Loss to Adjusted EBITDA
Appendix A Reconciliation of GAAP Net Loss to Adjusted EBITDA 21 $ (9,369) $ (5,029) $ (5,255) $ (9,382) 1,989 1,988 1,681 36 2,636 2,580 2,512 2,478 2,914 3,598 3,644 2,432 3,172 3,138 7,358 6,820 426 842 396 759 1,768 7,117 10,336 3,143 12/31/16 Consists of depreciation, primarily on property and
Slide 21: Appendix B: Reconciliation of Projected GAAP Net Loss to Adjusted EBITDA (FY'18)
Appendix B Reconciliation of Projected GAAP Net Loss to Adjusted EBITDA (FY’18) 22 $ (20,600) $ (15,600) 10,400 10,400 13,000 13,000 19,000 19,000 3,200 3,200 25,000 30,000 TO FROM Consists of depreciation, primarily on property and equipment as well as amortization of intangibles – developed techno
Slide 22: Appendix B: Reconciliation of Projected GAAP Net Loss to Adjusted EBITDA (FY'18)
Appendix B Reconciliation of Projected GAAP Net Loss to Adjusted EBITDA (FY'18) ES A S 20600) $ (15.600 ‘Stock-based Comp (b) 13,000 13,000 Provision for Income Taxes 3,200 3,200 (2). Consists of depreciation, primarily on property and equipment as well as amortization of intangibles ~ developed tec