Lttc 102013
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Lattice Incorporated Investor Presentation

Lattice Incorporated Investor Presentation

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Lttc 102013 Lttc 102013 Presentation Transcript

  • Lattice Inc. RedChip Conference October 23, 2013 Ticker Symbol: LTTC © 2011, Lattice Incorporated. All Rights Reserved.
  • Safe Harbor Statement Management’s prepared remarks contain forward-looking statements which are subject to risks and uncertainties and management may make additional forward-looking statements in response to your questions. Therefore, the company claims the protection of the Safe Harbor for forward-looking statements that is contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from those discussed today, and therefore we refer you to a more detailed discussion of the risks and uncertainties in the company’s filings with the Securities and Exchange Commission.
  • The Company  Communications technology leader in the correctional facilities market.  400% growth from 2009 to 2012, CAGR 90%  Provides a suite of cloud based services enabling smaller facilities access to technology traditionally only available to large facilities.  Providing secure communications and information technology since 1973.
  • Financials 2009 2010 2011 2012 1,096 3,554 4,572 7,530 COGS 464 2,343 3,243 5,094 GP 632 1,211 1,329 2,436 SGA 1,104 1,299 2,116 1,982 EBITDA* (472) 104 (483) 830 Revenue * Excludes Government services Division and associated corporate expenses
  • Correctional Technology Market Overview  $5.0B+ Market total in Federal, State, and County  Additional revenue from other noncommunications services  2.3 Million Inmates  Strong recurring revenue base  Prison population steadily growing at 3% annually  Communications revenues are split with prison, enhancing their profits
  • Competitive Landscape  Small Regional Service Providers  Solid regional relationships with smaller under 50 bed facilities  Outdated Technology generating lower revenues per inmate  Large National Service Providers  Focusing on 500+ bed facilities  Technology and service is inconsistent  Losing smaller facilities as customers
  • Business Model – US Market  Exclusive Rights to Facility  Revenue sharing with Facility  Provides extra revenue for strapped state budgets  Range from 20-60%  Up-sell Leading Features & Products Provides customer stickiness  Ability for family members to credit inmate’s call account  Video Visitation  Kiosk for cash management and value added services  Integrated jail management software solution (difficult to replace)
  • Sales and Marketing  Direct Sales to Facilities  Local sales presence  Expand upon established local concentration  Referrals important for winning county customers  Indirect Wholesale & Technology License Sales  Utilized by channel partners for larger facilities and State bids  For out of direct sales region  Builds Lattice footprint and brand recognition
  • Foreign Market Overview  Competitive Landscape  Incumbent Telcos primary competition  Legacy payphone model (collect calling)  New technology yet to be introduced  Lattice has Unique Technology Advantage  Lattice technology provides cost reductions  Lattice Model provides enhanced revenue streams  Lattice technology provides enhanced security and investigative tools
  • Foreign Market Overview  Business Model  Technology sales/license revenue  Transaction revenue  Services revenue  Current Foreign Sales Pipeline Asia Israel U.K. Belgium Canada Mexico India Caribbean
  • Foreign Market Overview  Canadian Market  Awarded four installations  All 4 being implemented in 2013  Partnered with Telus Canada for larger provinces  Smaller facilities partnering with Wymactel  U.K. Market  First site operational in Gibraltar (2011)  Successful trial completed with Sodexo Justice Services  90,000+ inmate potential in UK
  • SECURE COMMUNICATIONS CLOUD INTEGRATION SERVICES INVESTIGATION LEGAL COUNSEL EDUCATION HOME PC EMAIL MUSIC DOWNLOAD SOCIAL MEDIA SCHEDULING SERVICES DEDICATED INMATE STATION COMMISSARY ORDERING INMATE E DEVICE VIDEO VISITATION VOICE MAIL TEXT MESSAGING SECURE FIREWALL Device Agnostic
  • Integrated Corrections Operations Networks (ICON) ICON will provide centralized database management and payment capability. Utilizing the a central core engine will allow multiple software applications to reuse software processes saving development time and producing far more efficient business practices. ICON Core • ICON will consist of five major components: Products and Services management • Customer Information Database • Payment Processing • Accounting/Billing • Customer Care Secure Communication Layer All communication between payments and services will utilize ICON’s Secure Communication Layer. Outside development firms will have standard interfaces to utilize Secure ICON Application Management Jail Management System Communication
  • Products and Services managed and accounted for by ICON Secure ICON Application Management Jail Management System Communication PIN Debit and PPC Phone Accounts
  • ICON Jail Management System The ICON Jail Management System (JMS) is a key component to the ICON core. The JMS stores and manages correctional facility processes, inmate booking, inmate information, and trust accounting The ICON JMS includes the following features: •Reporting •Scheduling •Multi-Facility/Multi Agency Integration •Special Diet/Meal Count •Workflow •Biometrics •Booking •Trust Accounting/General Ledger •Medical Records •Incident Reporting •NCIC Background screening Secure ICON Application Management Jail Management System Communication
  • Investment Highlights  Rapid expansion of the Company’s service and technology sales to drive overall growth and margin improvement.  Lattice offers industry leading proprietary technology to traditionally underserved area of the market—small and midsized correctional facilities.  International expansion with key partnerships growing sales and margin growth while increasing the Company’s footprint.  CAGR of 90% over the last 4 years. Early stages of growth potential.
  • Q&A Contact: Jon Cunningham RedChip Companies, Inc. 1.800.REDCHIP x107 | 407.644.4256 x107 Jon@Redchip.com Paul Burgess CEO pburgess@latticeinc.com 856-910-1166 ext 2111