Cardiac Science — UBS Global Life Sciences Conference 2006
23 slides from Cardiac Science's conference presentation, Sep 28, 2006
Slide 1: UBS Global Life Sciences Conference
UBS Global Life Sciences Conference September 28, 2006 Nasdaq: CSCX Cardiac Science Corporation
Slide 2: Forward Looking Statements
Forward Looking Statements This press release contains forward-looking statements, including, but not limited to, those relating to Cardiac Science Corporation’s future revenue growth and profitability that involve a number of risks and uncertainties. These are forward- looking statements for purpos
Slide 3: Cardiac Science is a global leader in cardiology devices
Cardiac Science is a global leader in developing and marketing a broad range of non- invasive diagnostic and therapeutic cardiology devices. 3 Cardiac Science Corporation
Slide 4: Investment Considerations
Investment Considerations Growing $2 billion plus market Strong product portfolio; leading brands Broad global distribution Substantial research & development expertise and IP portfolio Leveraged business model Excellent growth potential Stock currently trading at one times revenue 4 C
Slide 5: Managing Heart Disease
Managing Heart Disease Diagnosis Monitoring Management Defibrillation Rehabilitation 5 Cardiac Science Corporation
Slide 6: Estimated Worldwide Market
Estimated Worldwide Market 2005 (1) 2009 (1) Annual demand Annual demand approaching $2 billion approaching $3 billion Automated External Automated External Defibrillation Defibrillation $0.3 B $1.0 B Cardiac Monitoring Cardiac Monitoring $1.0 B $1.25 B Other External Other External Defibrillation D
Slide 7: Products – Diagnosis and Monitoring
Products – Diagnosis and Monitoring Electrocardiographs Cardiac Stress Testing Holter Monitors ECG Analysis ECG Analysis ECG Analysis / Monitoring Heart at Rest Elevated Heart Rate Various Heart Rates Distinguishing characteristics: Service, Innovation and Brand 7 Cardiac Science Corporation
Slide 8: Products – Rehabilitation & Management
Products – Rehabilitation & Management Cardiac Rehabilitation Cardiology Telemetry Data Management ECG Analysis / Monitoring ECG Analysis during Rehabilitation Exercise during Data Collection Distinguishing characteristics: Workflow, Implementation and Flexibility 8 Cardiac Science Corporation
Slide 9: Products – Defibrillation
Products – Defibrillation Automated Patient External Defibrillators Hospital Defibrillators Monitor Defibrillators ECG Analysis ECG Monitoring ECG Analysis / Monitoring with Automated Defibrillation with Manual Defibrillation with Automated Defibrillation Distinguishing characteristics: Reliability,
Slide 10: Distribution and Brands
Distribution and Brands Channel Products Brand U.S. Cardiac Monitoring Primary Care Defibrillation U.S. Cardiac Monitoring Acute Care U.S. Defibrillation Public Access (AEDs) International All Products All Brands 10 Cardiac Science Corporation
Slide 11: Research & Development
Research & Development Excellent domain knowledge in ECG algorithms for analyzing the cardiac function Experience in developing hardware components to digitize ECG signals Specific additional expertise in artifact filtering, software development, high voltage applications and data management 1
Slide 12: Intellectual Property
Intellectual Property Multiple Patents - US owned 91 - Foreign issued 15 - Pending 27 Successful defense of patents, including licenses to others Recent efforts include better screening tools for risk of cardiovascular death 12 Cardiac Science Corporation
Slide 13: Growth History
Growth History Revenue ($ in millions) $180 $160 $140 36+% $120 CAGR $100 $80 $60 $40 $20 $0 2002 2003 2004 2005 2006E 13 Cardiac Science Corporation
Slide 14: Growth Strategy
Growth Strategy Exploit under-penetrated and emerging segments Create new opportunities through innovation Broaden distribution for current products Leverage our service capabilities Complement organic growth with acquisitions 14 Cardiac Science Corporation
Slide 15: 2006 Growth: Major Initiatives
2006 Growth Major Initiatives AED Market Growth Enhance US direct sales force Add select distributors Cardiac Monitoring Growth Connectivity Localization for international markets Grow AED share in Japan Increase GE defibrillation sales 15 Cardiac Science Corporation
Slide 16: 2006 Growth: New Releases
2006 Growth New Releases Defibrillation: AED software (AHA guidelines, enhanced functionality) “Crash Cart” defibrillator-monitor Consumer AED Cardiac Monitoring: Heartstride low-cost stress test Atria 6100 mid-range electrocardiograph Additional electrocardiograph languages Updated ca
Slide 17: Q2 Results
Q2 Results Q2 ’06 Q2 ’05 (1) Revenue $39.2M $ 37.4M Net Income (Loss) $ 0.1M $ (1.4M) EPS $ 0.01 $ (0.06) Adjusted EBITDA (2) $ 2.3M $ (1.5M) Operating Cash Flow $ 3.2M $ (0.4M) (1) Q2 ’05 represents pro forma combined CSI and Quinton results, excluding financing costs of $2.0M. (2) Adjusted EBITDA
Slide 18: YTD Results
YTD Results 2006 2005(1) Revenue $78.3M $ 73.2M Net Income (Loss) $ 0.4M $ (1.6M) EPS $ 0.02 $ (0.07) Adjusted EBITDA (2) $ 5.2M $ (2.2M) Operating Cash Flow $ 6.7M $ (2.7M) (1) YTD 2005 represents pro forma combined CSI and Quinton results, excluding non-cash goodwill impairment and financing charg
Slide 19: Balance Sheet Highlights
Balance Sheet Highlights 6/30/06 Cash $ 8.7M A/R DSO 57.7 Inventory Turns/Year 4.4 Net Working Capital $ 35.3M Deferred Tax Assets $ 42.4M Long-Term Debt $ -0- Shareholders’ Equity $214.7M 19 Cardiac Science Corporation
Slide 20: 2006 Guidance
2006 Guidance Revenue $160M - $170M Net Income $ 2.5M - $ 4.0M EPS $ 0.11 - $ 0.18 Stock-based compensation of ~ $2.0M (~ $0.09 per share) Depreciation & amortization of ~ $6.0M (~ $0.26 per share) Adjusted EBITDA ~ 8.0% to 9.0% of revenue (excl. stock comp) Minimal cash income taxes, due to NOL ben
Slide 21: Financial Model (next 2-3 years)
Financial Model (next 2-3 years) Income Statement: Double-digit revenue growth Operating expense growth about half of revenue growth rate Improving gross margins (subject to mix) Operating margin approaching 15% target Cash Flow: Free cash flow higher than implied by earnings $3 - 5M in
Slide 22: Summary
Summary Growing $2 billion plus market Strong product portfolio; leading brands Broad global distribution Substantial research & development expertise and IP portfolio Leveraged business model Excellent growth potential Stock currently trading at one times revenue 22 Cardiac Science Co
Slide 23: Cardiac Science Corporation
Cardiac Science Corporation Nasdaq: CSCX Cardiac Science Corporation
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