American Defense Systems Inc · OTC:ADFS
American Defense Systems — Q1 2008 Earnings Presentation
30 slides from American Defense Systems's earnings presentation, May 28, 2008
Slide 1: 1Q 2008 Investor Presentation
[LOGO] AMERICAN DEFENSE SYSTEMS, INC. 1Q 2008 INVESTOR PRESENTATION May 2008
Slide 2: Safe Harbor Statement
www.adsiarmor.com 2 Safe Harbor Statement Some of the statements made by American Defense Systems, Inc. (“ADSI”) in this presentation, including, without limitation, statements regarding ADSI’s anticipated future growth, are forward-looking in nature. ADSI intends that any forward-looking statements
Slide 3: Corporate Profile
www.adsiarmor.com 3 Corporate Profile · Incorporated: 2002 · Headquarters: Hicksville, New York · Full Year 2007 Revenue: $ 36.5 Million · Full Year 2007 Net Income: $ 3.1 Million · Fiscal Ye ar End: December 31 · Gross Margin: 42.0 % (March 31, 2008) · Business Backlog: $ 48.0 Million (March 31, 20
Slide 4: Business Lines
www.adsiarmor.com 4 Business Lines Armor Solutions Architectural Hardening Tactical Training Law Enforcement Protection Proprietary Innovation & Design
Slide 5: Mission, Goal and Strategy
www.adsiarmor.com 5 To be a world leader in the design, fabrication, and installation of transparent and opaque armor, security door, windows, curtain wall systems and tactical training systems. Design innovative, functional and aesthetically pleasing security applications for the physical security
Slide 6: Award Winning Performance
www.adsiarmor.com 6 Award Winning Performance “Best Development in the Field of Armored Vehicle Survivability” prize by the Defense IQ organization at the Light and Medium Armored Vehicle conference in London The U.S. Small Business Administration awarded ADSI the prestigious Region II Prime Contrac
Slide 7: Business Drivers
www.adsiarmor.com 7 Business Drivers We believe: · Growth in Military Programs & Upgrades of Current Equipment · Need for Armored Equipment in “Post Conflict” Rebuilding Efforts · Increased Focus & Spending to Upgrade Military Armor · Increased Spending to Secure Vulnerable Infrastructure · Increase
Slide 8: Target Markets
www.adsiarmor.com 8 Target Markets · Department of Defense · Army · Marines · Navy · Secret Service · Foreign Militaries · State Department · U.S. Energy Department · Department of Homeland Security · and more... · Local Enforcement Agencies · Police, SWAT, Etc. · Correctional Facilities · Judicial
Slide 9: Select Customers
www.adsiarmor.com 9 Select Customers
Slide 10: Armor Solutions: Crew Protection Kits
www.adsiarmor.com 10 Crew Protection Kits (CPK) for U.S. Military Engineering Vehicles CPK features · VistaSteel Transparent & Opaque Armor · Egress Window System · Combat Locks · Crew Comfort System Armor Solutions
Slide 11: Original Equipment Manufacturers
www.adsiarmor.com 11 Original Equipment Manufacturers ADSI has designed and fielded armor solutions for customers based on equipment from OEM’s such as:
Slide 12: Battle Proven
www.adsiarmor.com 12 Battle Proven
Slide 13: Field Operations
www.adsiarmor.com 13 Field Service Representatives (FSRs) are on the ground in: IRAQ • Mosul • Camp Victory • Tikrit • Camo Anaconda Balad • USMC Base TQ Taqaddum AFGHANISTAN • Bagram Air force Base KUWAIT • Camp Mureel • Ali Al Saelem Air Force Base • Camp Doha Our FSR’s manage the installation of
Slide 14: Infrastructure Protection
www.adsiarmor.com 14 Completed projects include the NYSE, government buildings and correctional facilities Infrastructure Protection
Slide 15: Corporate Protection
www.adsiarmor.com 15 Fox News Studio “D” · Curtain Wall System · Blast resistant · Sound attenuating · Custom caster tracks · Completed in 3 months Corporate Protection
Slide 16: Homeland Defense
www.adsiarmor.com 16 ADSI furnished and installed the protective ballistic screens for the 2005 Presidential inauguration Washington DC Metro Joint Operations Control Center Homeland Defense
Slide 17: Tactical Training
www.adsiarmor.com 17 · T2 formal launch May 22, 2008 · Interactive “Live-Fire” training system · Fire live ammunition at a video screen · &n bsp;Film scenario reacts to shooter accuracy · We believe this to be the future of tactical training · Sale or lease financing, potential mobile applications T
Slide 18: American Anti-Ram
www.adsiarmor.com 18 American Anti-Ram · Addressing the physical security market with a “tiered” defensive portfolio consisting of both active and passive barriers · Offering vehicle and perimeter barriers, guard stations and safe rooms · Portfolio of products meeting various DOS ratings standards t
Slide 19: Portable Protection
www.adsiarmor.com 19 Portable Protection Transparent Ballistic Shield · 6’ high · Hydraulic and manual adjustment · Level IV NIJ ballistic protection · Ideally suited for hostage negotiation and SWAT teams Trans-Barrier · Modular system for use with standard Jersey barrier · Aesthetically provides 6
Slide 20: Law Enforcement Protection
www.adsiarmor.com 20 Armored Rescue Vehicle Upgrades · Opaque and transparent solutions · Customized ballistic protection · Low cost option for transforming government surplus vehicles Law Enforcement Protection
Slide 21: Financial Overview
FINANCIAL OVERVIEW
Slide 22: Revenue
www.adsiarmor.com 22 Revenue CAGR + 160% Millions 0.8 6.2 4.8 25.3 36.5 9.4 $0 $5 $10 $15 $20 $25 $30 $35 $40 2003 2004 2005 2006 2007 3M YTD
Slide 23: Backlog
www.adsiarmor.com 23 Backlog (As of December 31) + 37% 35 Million 48 Million $0 $10 $20 $30 $40 $50 $60 1Q 2007 1Q 2008
Slide 24: Gross Margin
www.adsiarmor.com 24 Gross Margin 24.4% 25.7% 27.8% 29.3% 30.6% 38.5% 42.0% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 2002 2003 2004 2005 2006 2007 3M YTD
Slide 25: Net Income (Per Diluted Share) GAAP & Non-GAAP
www.adsiarmor.com 25 Net Income (Per diluted share) GAAP & Non-GAAP Non-GAAP 1Q 2008 financial results exclude the impact of $1.6 million in non-cash charges related to the loss on the adjustment of fair value associated with the series A convertible preferred stock and related warrants as well as s
Slide 26: Balance Sheet Summary
www.adsiarmor.com 26 Balance Sheet Summary 3/31/08 12/31/07 Cash & Cash Equivalents $ 9,751,481 $ 1,479,886 Total Assets $ 36,041,938 $ 23,554,754 Additional Capital Resources: $ 4.0 Million cash infustion received subsequent to March 31, 2008 $12.0 Million revolving credit facility
Slide 27: Guidance
www.adsiarmor.com 27 Guidance Full Year 2008 – Period ending December 31, 2008 · Revenue: $47 Million to $54 Million Reflecting y-o-y growth of 29% to 48% Guidance as of May 15, 2008 International sales channel development expected to present additional growth driver for 2009 and beyond
Slide 28: Investment Summary
www.adsiarmor.com 28 Investment Summary · Well positioned in government, homeland & corporate defense · Rising demand in key target markets · Scalable business model - Outsourced manufacturing · In-house design and engineering capabilities enable us to: · Develop customized solutions · Respond to ti
Slide 29: Appendix: Use of Non-GAAP Measures
www.adsiarmor.com 29 Appendix Use of Non-GAAP Measures The non-GAAP financial measures discussed in the text of this presentation and accompanying non-GAAP supplemental information represent financial measures used by American Defense Systems’ management to evaluate the operating performance of the
Slide 30: American Defense Systems, Inc.
[LOGO] AMERICAN DEFENSE SYSTEMS, INC. INVESTOR PRESENTATION May 2008
American Defense Systems — Q1 2008 Earnings Presentation on 6ix