Cardiac Science — C.E. Unterberg, Towbin Emerging Growth Conference 2007
25 slides from Cardiac Science's conference presentation, Jul 10, 2007
Slide 1: C.E. Unterberg, Towbin Emerging Growth Conference
C.E. Unterberg, Towbin Emerging Growth Conference July 10, 2007
Slide 2: Forward Looking Information
Forward Looking Information This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements about expected growth in the markets in which Cardiac Science Corporation competes and Cardiac Sc
Slide 3: Cardiac Science
Cardiac Science “We’re at the Heart of Saving Lives.” Our mission is to be the worldwide provider of choice for cardiology - related products and services through leading technology and superior customer service. 3
Slide 4: Company Highlights
Company Highlights • Growing $2 billion market • Strong product portfolio with a heritage of saving lives • Leading brands and a large installed base • Substantial cardiology expertise and IP portfolio • Broad global distribution • Leveraged business model 4
Slide 5: Core Competencies
Core Competencies Cardiology • Company focused solely on cardiology Focus • Expertise across continuum of care Commitment • Significant investment in R&D and IP portfolio To Innovation • New products released every year • Developer of novel and leading technology Industry • Quinton, Burdick & Powerh
Slide 6: From Discovery to Recovery
From Discovery to Recovery Supplies & Services 6
Slide 7: Estimated Worldwide Market
Estimated Worldwide Market 2006 (1) 2010 (1) Annual demand exceeds $2 billion Annual demand exceeds $3 billion Growth will be driven primarily by AEDs (1) Public Filings, Frost & Sullivan and Company Estimates 7
Slide 8: Defibrillation
Defibrillation What is defibrillation? • Sudden Cardiac Arrest (SCA) is the leading cause of death in the United States • Ventricular Fibrillation is the chaotic heart rhythm most often seen in SCA victims • Automated External Defibrillators (AEDs) detect and identify Ventricular Fibrillation and ot
Slide 9: Defibrillation
Defibrillation Cardiac Arrest can happen to anyone at any age, anywhere or anytime • Prompt defibrillation is critical in the AHA Chain of Survival • Public Access Defibrillation (PAD) programs promote AED deployment • Strategically placed AEDs can save lives; adoption of AED programs is increasing:
Slide 10: Powerheart Defibrillators Save Lives
Powerheart Defibrillators Save Lives Reliable: Self-tests confirm the battery, electronics and pads are Rescue Ready™ Ease of Use: AEDs are available with fully-automatic or semi- automatic operation User Centered Design: RescueCoach™ voice prompts guide AED users through the rescue Advanced Technol
Slide 11: Comprehensive AED Program Features
Comprehensive AED Program Features • Program deployment with ongoing management and medical oversight • On-site training options • MasterTrak™ software for program management • State-of-the-art Cardiac Science Powerheart AEDs 11
Slide 12: Cardiac Monitoring
Cardiac Monitoring What is cardiac monitoring? • ECG waveform-core of cardiac monitoring • Process of recording, storing, analyzing, retrieving and distributing cardiology data • Essential for diagnosis and treatment • Used by hospitals, cardiologists and clinics 12
Slide 13: Cardiac Monitoring Products
Cardiac Monitoring Products ECG Analysis • Heart at rest • Elevated heart rate • Various heart rates • During rehabilitation exercises • Data collection/management Services • Field service repair/training • 24 hour call center Supplies • Electrodes/leads/cables/clips • Chart paper Related products •
Slide 14: Cardiac Monitoring Products
Cardiac Monitoring Products Competitive Advantages • Easy to use • Clinical accuracy and interpretive diagnostic algorithms • Effective data capture • Network compatibility • Open technology for integration and EMR compatibility • Improved clinician workflows and patient management 14
Slide 15: Successful Partnerships
Successful Partnerships AMTRAK 2 (°SS State of Ohio Schools WELLSPAN HEALTH B& NIHON KOHDEN ga ® WRIGLEY
Slide 16: Growth Strategy
Growth Strategy • Capitalize on emerging AED market and near term competitive opportunity • Broaden distribution in international markets • Expand through innovative marketing efforts • Continue new product introductions • Leverage our service capabilities • Complement organic growth with acquisitio
Slide 17: Growth History
Growth History Revenue in Millions $206 $150 1 ope LA $106 $50 if
Slide 18: 2006 Annual Results
2006 Annual Results 2006(4) 2005(1) Revenue $155.4M $141.9M Net Income (Loss) $ 49K $ (7.1M) EPS $ 0.00 $ (0.48) Adjusted EBITDA (2,5) $ 8.2M $ (9.0M) Adjusted EBITDA % 5.2% (6.3%) Operating Cash Flow (3) $ 8.6M $ (0.9M) (1) 2005 represents pro forma combined CSI and Quinton results, excluding non-c
Slide 19: 2007 Focus
2007 Focus • Continue worldwide AED growth and capitalize on current competitive opportunities • Revitalize cardiac monitoring sales • Enhance domestic and international distribution and service capabilities • Add to product and technology portfolio—especially in clinical and connectivity areas • Su
Slide 20: Recent Progress
Recent Progress • Defibrillation business grew 43% year-over-year in Q1 • US defibrillation sales were up 59% in Q1 • Added US AED distributors, PAD Programs • Restructured US cardiac monitoring channels • New product introductions • Settled two significant lawsuits • Philips • IAML 20
Slide 21: Financial Results
Financial Results Q1’07 (1) Q1’06 (1) Revenue $ 41.7M $39.1M Net Income (Loss) $ (0.2M) $ 0.3M EPS $ (0.01) $ 0.01 Adjusted EBITDA (2)(3) $ 2.0M $ 2.9M Adjusted EBITDA % 4.7% 7.4% Operating Cash Flow $ 2.3M $ 3.6M (1) Includes litigation related expense of $1.7M and $0.7M for Q1’07 and Q1’06, respec
Slide 22: Balance Sheet Highlights
Balance Sheet Highlights 3/31/07 Cash and Short-Term Investments $ 12.2M A/R DSO 60 Inventory Turns/Year 4.7 Net Working Capital $ 31.4M Deferred Tax Assets $ 40.6M Long-Term Debt $ 0.0 Shareholder’s Equity $ 216.2M 22
Slide 23: Financial Model (next 2-3 years)
Financial Model (next 2-3 years) Income Statement • Revenue growth in a range around 10% • Improving gross margins (subject to mix) • Operating expense growth ≈ half of revenue growth • Operating margin to 10 - 15% target Cash Flow • Free cash flow higher than implied by earnings • Minimal cash taxe
Slide 24: Summary
Summary • Growing $2 billion market • Strong product portfolio with a heritage of saving lives • Leading brands and a substantial installed base • Substantial cardiology expertise and IP portfolio • Broad global distribution • Leveraged business model 24
Slide 25: Cardiac Science Corporation
Cardiac Science Corporation Nasdaq: CSCX
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