More Related Content Similar to Investor Update - Feb 2014 (20) Investor Update - Feb 20141. © Redline Communications Inc. 2014. All rights reserved.
1
| 1 |rdlcom.com
March 2014
Redline Communications
Rob Williams, CEO
2. © 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.
3. © 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
4. © 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
5. © 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
6. © 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
8. © 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
9. © 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
10. © 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
11. © Redline Communications Inc. 2014. All rights reserved.
11
| 11 |rdlcom.com
MILITARY:
PUBLIC SAFETY AND WELL-BEING:
TELECOM SERVICE PROVIDERS:
ENERGY :
Customers
12. © 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
13. © 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
14. © 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
15. © 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
16. © 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
17. © 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)
18. © 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
Editor's Notes 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