Investor Update - Feb 2014
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Investor Update - Feb 2014

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  • Redline Communications (www.rdlcom.com) is the creator of powerful wide-area wireless networks for the world’s most challenging applications and locations. Used by oil and gas companies, militaries, municipalities and telecom service providers, Redline’s powerful and versatile networks securely and reliably deliver voice, data, M2M and video communications for mission-critical applications.
  • Details on Cost Cutting:$5M salaries/bonus, $1M contractors, $1M severance/recruitment/stockcomp, $600K travel, $500K Admin/AcctingNeed: number of O&G sales people at beginning of year and at end of year or better yet by quarter
  • Details on Cost Cutting:$5M salaries/bonus, $1M contractors, $1M severance/recruitment/stockcomp, $600K travel, $500K Admin/AcctingNeed: number of O&G sales people at beginning of year and at end of year or better yet by quarter
  • Details on Cost Cutting:$5M salaries/bonus, $1M contractors, $1M severance/recruitment/stockcomp, $600K travel, $500K Admin/AcctingNeed: number of O&G sales people at beginning of year and at end of year or better yet by quarter

Investor Update - Feb 2014 Investor Update - Feb 2014 Presentation Transcript

  • © Redline Communications Inc. 2014. All rights reserved. 1 | 1 |rdlcom.com March 2014 Redline Communications Rob Williams, CEO
  • © Redline Communications Inc. 2014. All rights reserved. 2 | 2 |rdlcom.com Forward-Looking Statements  From time to time Redline makes written and oral statements that constitute forward-looking information within the meaning of applicable securities laws (“forward- looking statements”). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Business, or developments in Redline’s industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include all disclosure regarding possible events, conditions or results of operations that are based on assumptions about future economic conditions and courses of action. Forward- looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. Redline cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made.  These statements may include, but are not limited to, comments about: our objectives and priorities for the future, our strategies, expectations for our financial condition, the outlook for our operations, and external factors that may impact results, including global economies and industry trends. Forward-looking statements are based on management’s current plans, estimates, projections, beliefs and opinions, and Redline does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. We caution that this list is not exhaustive of all possible factors. Other factors could adversely affect our results. For more information, please see the discussion on the principal risks that could affect our results, which is included in our most recent MD&A and in our latest annual information form, available on SEDAR at www. sedar.com. The assumptions behind our outlook are also discussed in our public filings.
  • © Redline Communications Inc. 2014. All rights reserved. 3 | 3 |rdlcom.com  Powerful wide-area wireless networks for mission-critical applications + Enables Machine-to-Machine (M2M), voice, data, and video communications over wide areas, in remote locations + Oilfields, Military Operations, Critical Infrastructure Monitoring + Redline engineers, plans, manufactures, delivers and supports Redline
  • © Redline Communications Inc. 2014. All rights reserved. 4 | 4 |rdlcom.com  Publicly traded on Toronto Stock Exchange - RDL  115 employees in 15 countries, offices in Canada, USA, Europe and Middle East  Large and diversified customer base with 90% of revenue from outside Canada to customers in 70 countries  $32M in revenues in 2013, approximately 40% from Energy sector Redline
  • © Redline Communications Inc. 2014. All rights reserved. 5 | 5 |rdlcom.com Oil and Gas requires reliable, secure, high speed networks in some of the toughest places on the planet Redline has a unique differentiated solution for this market Key Market – Oil and Gas
  • © Redline Communications Inc. 2014. All rights reserved. 6 | 6 |rdlcom.com Oilfield Challenges  Large geography lightly populated with people and machines, harsh environment  Very expensive operations  Complex communications needs: M2M, access to internet and corporate systems, video for collaboration and surveillance for safety  Typically no wireless carriers except satellite, fiber is very expensive, other terrestrial wireless systems fail to deliver
  • © Redline Communications Inc. 2014. All rights reserved. 7 | 7 |rdlcom.com
  • © Redline Communications Inc. 2014. All rights reserved. 8 | 8 |rdlcom.com Rugged, Reliable and Secure Wireless Lowest meantime between failure, widest temperature range Highly secure, FIPS 140-2 certified, approved for Military use
  • © Redline Communications Inc. 2014. All rights reserved. 9 | 9 |rdlcom.com Mobile Drilling Rig Battery Tank RTU - Remote Terminal Unit PLC - Programmable Logic Controller Emergency Response Work Vehicle CWE - Collaborative Work Environment Process Domain Video Monitoring To HQ Central Control Room SCADA Systems SMART OILFIELD Well Pad Field Office Well Head Automation Mobile Field Connectivity Operational Video Surveillance Micro Seismic Applications Asset Tracking via RF-ID Energy Management Collaborative Working Env. Smart Drilling SCADA Wi-Fi The Digital Oil Field is enabled by Redline Wireless
  • © Redline Communications Inc. 2014. All rights reserved. 10 | 10 |rdlcom.com  Governments, military, service provider sales done through VAR channel, Energy sales are largely direct with installs done with local partners  Strategic partners such as Cisco, Honeywell, ABB and Systems Integrators help drive business  Revenue comes from: + product sales + functionality upgrades via software + professional services + recurring support revenue Redline Business Model
  • © Redline Communications Inc. 2014. All rights reserved. 11 | 11 |rdlcom.com MILITARY: PUBLIC SAFETY AND WELL-BEING: TELECOM SERVICE PROVIDERS: ENERGY : Customers
  • © Redline Communications Inc. 2014. All rights reserved. 12 | 12 |rdlcom.com 2013 Highlights – Financial Warrant Exercise contributes $13.4M $10M Bought Deal Financing Restructuring cuts $10M in annual costs Jan Dec
  • © Redline Communications Inc. 2014. All rights reserved. 13 | 13 |rdlcom.com 2013 Highlights – Financial & Operational Warrant Exercise contributes $13.4M $10M Bought Deal Financing Restructuring cuts $10M in annual costs Jan Redline wins BSI Quality Award CEO takes medical leave, Rob Williams Acting CEO Redline CEO Resigns Redline achieves perfect ISO audit Rob Williams appointed permanent CEO Dec
  • © Redline Communications Inc. 2014. All rights reserved. 14 | 14 |rdlcom.com 2013 Highlights – Financial, Operational & Sales Warrant Exercise contributes $13.4M $10M Bought Deal Financing Restructuring cuts $10M in annual costs Jan Redline wins BSI Quality Award CEO takes medical leave, Rob Williams Acting CEO Redline CEO Resigns Redline achieves perfect ISO audit Rob Williams appointed permanent CEO First Oil and Gas Customer in South America New SCADA product for Oil & Gas Market “Super Major” Customer Win 4 new Oil and Gas Sales people hired for a total of 10 Dec
  • © Redline Communications Inc. 2014. All rights reserved. 15 | 15 |rdlcom.com Revenues and Gross Margin 52% 54% 56% 58% 60% 62% 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 2011 2012 2013 $M BWI Revenue WiMAX Revenue Gross Margin % Core product revenues maintained as older technology is ended Gross Margins strong and growing
  • © Redline Communications Inc. 2014. All rights reserved. 16 | 16 |rdlcom.com Energy Sector Momentum Redline has networks in 27 oil fields with 16 Oil & Gas customers in various stages of deployment Pilot Projects allow new customers to try Redline in their field(s) Most fields have the potential to deliver $2-$4M in revenue over several years 0 2 4 6 8 10 0 5 10 15 20 25 30 2010 2011 2012 2013 #PilotInstallations $M Energy Bookings $M Energy Backlog $M # Pilots at year End
  • © Redline Communications Inc. 2014. All rights reserved. 17 | 17 |rdlcom.com 2013 Financial Highlights  Top Line + $32 million revenue + $37 million new order bookings + $17M order backlog  Margin and Bottom Line + 61% gross margin + $5.5 million Adjusted EBITDA loss  Cash + C$10.6 million financing completed + $13.5 million cash (net of debt)
  • © Redline Communications Inc. 2014. All rights reserved. 18 | 18 |rdlcom.com  2014 - the year of sales execution + Capitalize on unique solution with Oil and Gas “Land Grab”  Strengthen partnerships  Maximize new pilots and convert existing pilots + Work towards Positive EBITDA  Protect revenue stream from non Oil and Gas markets  Maintain margins  Realize the benefits of Q4-2013 restructuring + Develop new products and services for Oil and Gas + Maintain and enhance high quality Brand Looking Forward