Creative Realities, Inc. · NASDAQ:CREX
Creative Realities — FY2020 Earnings Presentation
19 slides from Creative Realities's earnings presentation, Mar 11, 2021
Slide 1: 2020 Year End Results
CreativeRealities? ~~. ."cHHE 2020 YEAREND RESULTS =. tata March 10, 2021 | aA a one o58
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains certain statements that are deemed “forward-looking statements" under Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and includes, among other things, discussions of our business strategies, futur
Slide 3: Use of Non-GAAP Measures
USE OF NON-GAAP MEASURES Creative Realities, Inc. prepares its consolidated financial statements in accordance with United States generally accepted accounting principles ("GAAP"). In addition to disclosing financial results prepared in accordance with GAAP, this presentation discloses non-GAAP info
Slide 4: Quick Industry Facts
Quick Industry Facts * The pandemic was a setback for the industry's consistent annual growth and momentum. * Time outside of the home has decreased globally as a result of social distancing, quarantining and other COVID-related measures. 2020 Actual Reported Revenue Decline for Largest Public OOH O
Slide 5: 2020 Highlights
2020 HIGHLIGHTS > January 2020: > Added Mike McKim as VP of Operations > Changed auditors to a “Big 4” provider: Deloitte & Touche, LLP > March 2020: > Enacted cost control activities, resulting in reductions to our core operating expenses from $3.6 million in 1Q20 to $2.61 million in 4Q20, a 26% re
Slide 6: 2020 Highlights
2020 HIGHLIGHTS 7 > September 2020: | | a | | | | > Completed installation @ SoFi stadium, where our unique CMS and interface | centrally control over 550 menu boards a > Exited a lease in Atlanta; rented temporary short-term space and continue an 28 + to evaluate a return to work (reduction of 25K
Slide 7: Additional Events
Additional Events > Q12021 > Forgiveness of PPP Loan > — Registered Direct Offering — $2 million to fund growth throughout 2021 > Refinanced our debt — > Converted $0.2 million into common stock > — Extended maturity on all debt to March 2023 > — Increased availability under line of credit by $1.0 m
Slide 8: The Current Opportunity
THE CURRENT OPPORTUNITY > Market Transformation > — Enhanced focus by customers on transitioning to digital signage > C-Store, Retail, Drugstore, Grocery > Cost Efficient Business Offerings > More choices in CMS solutions > Clarity, Brightsign, and Magic Info (Samsung product) > — Digital Signage as
Slide 9: Financial Overview
Financial — » 882: Overview HEE:
Slide 10: Statement of Operations Trend
STATEMENT OF OPERATIONS TREND Quarters ended Category FY 2020 4Q20 3Q20 2Q20 1920 Net sales 17,457 4,990 5,107 3,656 3,704 Gross profit 8,121 2,253 2,444 1,817 1,607 Gross margin % 46.5% 45.2% 47.9% 49.7% 43.4% S&M, R&D, GRA 12,052 2,886 2,489 3,081 3,596 Depreciation & Amortization 1,474 351 377 38
Slide 11: Balance Sheet
Assets 12/31/2020 12/31/2019 BALANCE SHEET — sennsreotvtiont 7 2a 7 4740 Inventories, net 2,351 379 Other current assets 507 320 Current assets 7,027 7,982 2020 Highli hts: oy: Goodwill & intangible assets” 11,315” 22,578 ° Net working capital improved $ 1.9MM Other noncurrent assets 2,276 3,416 * R
Slide 12: Outlook
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Slide 13: A Year of Expected Significant Growth
A YEAR OF EXPECTED SIGNIFICANT GROWTH ~ > Anticipate revenue will rapidly increase as we enter the Q3 2021 > Ontrack to add 4,000 Media Players in Q1 > Expect to add an additional 4,000 in Q2 > Safe Space Solution continues to sell as customers embrace a new standard of care for their employees > Im
Slide 14: Global OOH Revenue Growth
Global OOH Revenue Growth A saan iacianial' 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2018A 2019A 2020E 1_2021E_| 2022E 2023E 2024E eoee-----------5 Source: PWC Global Entertainment and Media Outlook. PJ Solomon: March 2021
Slide 15: Expect 1Q Quarters Steady and Stable
| = > Expect 15¢ 2 QTR's — steady & stable a > 3&4 QTR likely to grow significantly. onl > — Recently announced C-Store customer will be fully converted by end of Q2 > Assumes execution of pending contract in Q2. Ly | u > — Once launched, expected to add $6MM+ revenue quarterly for 4 to 6 non quarte
Slide 16: Thanks!
THANKS! Email us at: ir@cri.com
Slide 17: Appendix
A P P E N D | x: " siSHEHE
Slide 18: Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
RECONCILATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA $in Thousands iaseseecmaa Year December September Ended 31, 30, June 30 March 31, Quarters ended 2020 2020 2020 2020 2020 This table presets 9 CS recancilebonek GAAP net loss $ (16,844) $ (617) $ (585) $ (2,459) $ (13,183) EBITDA and I
Slide 19: Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
19 RECONCILATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA $in Thousands This table presents a reconciliation of EBITDA and Adjusted EBITDA from net loss, CRI's most directly comparable financial measure calculated and presented in accordance with GAAP GAAP net income/(loss) Interest expens