Cantaloupe, Inc. · NASDAQ:CTLP
Cantaloupe — USA Technologies — Shareholder Meeting (June 2012)
42 slides from Cantaloupe's shareholder meeting presentation, Jun 28, 2012
Slide 1: Shareholders Meeting June 28, 2012
SHAREHOLDERS MEETING June 28, 2012
Slide 2: Company Presentation - Stephen P. Herbert, Chairman and CEO
COMPANY PRESENTATION Stephen P. Herbert, Chairman and CEO
Slide 3: Safe Harbor Statement
SAFE HARBOR STATEMENT All statements other than statements of historical fact included in this presentation are forward -looking statements. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including but not limited to,
Slide 4: Company Overview; Delivering on Shareholder Commitments; Results/Financials
COMPANY OVERVIEW DELIVERING ON SHAREHOLDER COMMITMENTS STRATEGIC GROWTH PLAN RESULTS/FINANCIALS
Slide 5: Company Overview
COMPANY OVERVIEW
Slide 6: Company Overview
COMPANY OVERVIEW Provide leading edge wireless cashless payment services for small ticket unattended retail. Connect remote, self-service retail locations so owners and operators can better manage their business. USA Technologies is a service company. Its ePort Connect service represents 80% of all
Slide 7: Company Overview: cashless payment and telemetry services suite
COMPANY OVERVIEW A PCI compliant, end-to-end, suite of cashless payment and telemetry services tailored to fit the needs of self-service retail industries. Card Processing Services Wireless Connectivity Online Sales Reporting Over the Air Updates & Remote Data Management Data Security Health Alerts
Slide 8: The ePort Connect service is open and flexible
COMPANY OVERVIEW USAT PRODUCTS THIRD PARTY HARDWARE THIRD PARTY SERVICES (VEND MANAGEMENT SYSTEMS) The ePort Connect service is open and flexible G8 EDGE Coinco MEI Crane
Slide 9: Market Opportunity is Vast
COMPANY OVERVIEW Sources: US Department of Transportation, 2008, IHL Kiosk Study, 2010 (2011 projections)First Research, March 2011, June 2010, Automatic Merchandisers State of the Coffee Industry 2009Vending Times Census 2010, Smart Card Alliance 2006 *Includes self-checkout systems, ticketing kios
Slide 10: Company Overview: key strengths
COMPANY OVERVIEW MARKET LEADERSHIP LARGE, UNTAPPED MARKET OPPORTUNITY RECURRING REVENUES FUELED BY SERVICE MODEL IMPROVING OPERATIONAL PERFORMANCE TECHNOLOGY BARRIERS STRENGTHENED LEADERSHIP AND DIRECTION • Leading provider of wireless, cashless payment and machine-to-machine solutions for small tic
Slide 11: Delivering on Shareholder Commitments
DELIVERING ON SHAREHOLDER COMMITMENTS
Slide 12: Turn Around Strategy: Four Defined Objectives
USAT’S COMMITMENT TO THESE FOUR AREAS WAS STATED IN THE CEO’S LETTER TO SHAREHOLDERS IN JANUARY. USAT HAS MADE PROGRESS ON EACH AND EVERY FRONT. Increased Shareholder Value DELIVERING ON SHAREHOLDER COMMITMENTS Turn Around Strategy: Four Defined Objectives 1. Path to sustainable profitability 2. Inc
Slide 13: STRATEGIC GROWTH PLAN
STRATEGIC GROWTH PLAN
Slide 14: The confluence of several compelling drivers
STRATEGIC GROWTH PLAN The confluence of several compelling drivers should further drive market adoption. MARKET (STAKEHOLDERS) • VISA supporting the drive for more acceptance points • Emerging mobile payments and wallet providers (Google, ISIS, PayPal) • Verizon driving M2M CUSTOMERS • Need for new
Slide 15: Debit card payments projected to increase while cash declines
STRATEGIC GROWTH PLAN BETWEEN 2005 AND 2015, DEBIT CARD PAYMENTS ARE PROJECTED TO INCREASE 95.3% WHILE CASH PAYMENTS CONTINUE THEIR DECLINE. CASH DEBIT CREDIT CONSUMER SPENDING BY PAYMENT TYPE Credit and debit cards have overtaken cash as a preferred method of payment and continues to increase as a
Slide 16: Generation Y represents a paradigm shift
STRATEGIC GROWTH PLAN Generation Y represents a paradigm shift in how we buy-now and in the future.
Slide 17: Mobile payment is poised to further fuel adoption
STRATEGIC GROWTH PLAN Mobile payment is poised to further fuel adoption and expand ePort Connect service opportunities. USAT already has over 75,000 NFC-enabled devices in the field.
Slide 18: 2012 Knowledge Base continues to validate benefits of cashless
STRATEGIC GROWTH PLAN 2012 Knowledge Base continues to validate benefits of cashless USAT Knowledge Base provides us with a significant competitive advantage that we continue to leverage to drive more connections to the ePort Connect service.
Slide 19: 2012 Knowledge Base continues to validate benefits of cashless
STRATEGIC GROWTH PLAN 2012 Knowledge Base continues to validate benefits of cashless Cashless sales 84% higher in Mature Installations compared to New Installation group
Slide 20: 2012 Knowledge Base continues to validate benefits of cashless
STRATEGIC GROWTH PLAN 2012 Knowledge Base continues to validate benefits of cashless Avg Annualized Cashless Sales per Machine by Channel Powerful intelligence to guide our customers on how to best leverage our solution
Slide 21: USAT Strategic Pillars: Customer Focused Market Leadership
STRATEGIC GROWTH PLAN CUSTOMER FOCUSED MARKET LEADERSHIP CONTINUOUS INNOVATION LEVERAGE INTELLECTUAL PROPERTY FINANCIAL STABILITY/ PERFORMANCE STRATEGIC GROWTH PLAN • Leverage dominant market share and customer base to: - Grow connections - Grow revenue per each connection USAT Strategic Pillars
Slide 22: Three key drivers of connections/market penetration
STRATEGIC GROWTH PLAN EXISTING BASE Customer Focused Market Leadership Three key drivers of connections/market penetration customers (1) EXPANDED REACH VERTICAL MARKETS (1) USAT estimate for quarter ending 6/30/2012
Slide 23: Total connected devices
STRATEGIC GROWTH PLAN 100,000 added over 10 quarters 25,000 added over 7 quarters Customer Focused Market Leadership (1) Our strategy has accelerated adoption, increased revenues and created competitive advantage TOTAL CONNECTED DEVICES (1) USAT estimate for quarter ending 6/30/2012
Slide 24: ePort Connect customers increased 316% since 1/1/10
STRATEGIC GROWTH PLAN 385 added over 7 quarters Customer Focused Market Leadership Our ePort Connect customer base has increased 316% since 1/1/10 (1) EPORT CONNECT CUSTOMERS (1) USAT estimate for quarter ending 6/30/2012
Slide 25: Verizon Susie Ad
Verizon Susie Ad http://www.youtube.com/watch?v=KQnDK9tvb-Y
Slide 26: USAT Strategic Pillars: Continuous Innovation
CUSTOMER FOCUSED MARKET LEADERSHIP CONTINUOUS INNOVATION LEVERAGE INTELLECTUAL PROPERTY FINANCIAL STABILITY/ PERFORMANCE STRATEGIC GROWTH PLAN • Technology roadmap developed with customer input • High ROI product development through internal development and by leveraging suppliers/partners • Leverag
Slide 27: Continuous Innovation: traditional offerings and new services
STRATEGIC GROWTH PLAN Media Services (2) NEW SERVICES Mobile Merchant (3) Continuous Innovation TRADITIONAL OFFERINGS Services Connectivity Reporting Data Security Machine Health Alerts Services Settlement PLUS Two-tier Pricing (1) (1) In market (2) Commercial launch anticipated quarter ending 12/31
Slide 28: USAT Strategic Pillars
STRATEGIC GROWTH PLAN CUSTOMER FOCUSED MARKET LEADERSHIP CONTINUOUS INNOVATION LEVERAGE INTELLECTUAL PROPERTY FINANCIAL STABILITY/ PERFORMANCE • Leverage dominant market share and customer base to: - Grow connections - Grow revenue per each connection • Technology roadmap developed with customer inp
Slide 29: Financials/Results
FINANCIALS/RESULTS
Slide 30: Connections are driving total revenue
FINANCIALS/RESULTS (1) Connections are driving total revenue (1) USAT estimate for quarter ending 6/30/2012
Slide 31: Quarterly Revenue Mix
COMPANY RESULTS 55% Quarterly Revenue Mix 80% Recurring service fees now 80% of our total revenue (1) (1) USAT estimate for quarter ending 6/30/2012
Slide 32: Growth in recurring service fees is delivering increased gross margins
FINANCIALS/RESULTS (1) Scale and growth in recurring service fees is delivering increased gross margins (1) USAT estimate for quarter ending 6/30/2012
Slide 33: Growing Total Revenues While Controlling Operating Expenses
FINANCIALS/RESULTS “Of particular note… The company has been able to achieve a reduction in costs while growing the business. In particular, we note that while total revenue nearly doubled, from $15.8 million in fiscal 2010 to $28.0 million in fiscal 2012, the company reduced SG&A by $3 million (20
Slide 34: Path to Profitability Fueled by Growing Recurring Revenue Base
FINANCIALS/RESULTS ADJUSTED EBITDA (1) 3/31/12 Positive Adjusted EBITDA; GAAP net loss narrows to $.9 million (1) See definition of Net Loss to Adjusted EBITDA included herein. (2) USAT estimate for quarter ending 6/30/2012 (3) Based on expectations communicated June 8, 2012 including related Financ
Slide 35: Non-GAAP Reconciliation
Non-GAAP Reconciliation ADJUSTED EBITDA 1. Adjusted EBITDA represents net income (loss) before interest income, interest expense, income taxes, depreciation, amortization, and change in fair value of warrant liabilities and stock -based compensation expense. We have excluded the non- operating item,
Slide 36: Financial Assumptions
FINANCIALS/RESULTS 1. Fair value of warrant liability: Assumes no increase in the fair value of USAT ’ s warrant liabilities at December 31, 2012 compared to the fair value of the warrant liabilities at September 31, 2012. Changes in fair value of USAT ’ s warrant liabilities create a non-cash expen
Slide 37: Financial Improvements Scorecard
FINANCIALS/RESULTS REVENUES GROSS MARGINS OPERATING MARGINS LIQUIDITY Financial Improvements Scorecard • Considerably improved. • Reduced costs by leveraging growing connected base, strategic partnerships, innovation • Considerably Improved. • Leveraging growing connected base, strategic partnership
Slide 38: Summary
SUMMARY • Positioned to capture benefits of market shift to cashless • Growing recurring revenue customer & connection base • Growth strategies building scale and closing in on profitability • New verticals and expanded service opportunities
Slide 39: In the News
IN THE NEWS Visa London 2012 Olympic Games Trip For Life Sweepstakes to be promoted on USA Technologies Network Announced June 26, 2012
Slide 40: Visa Olympic Ad
Visa Olympic Ad http://www.youtube.com/watch?v=JodSbCX_tKw
Slide 41: Q & A
Q & A
Slide 42: Shareholders Meeting June 28, 2012
SHAREHOLDERS MEETING June 28, 2012