Lttc 01222014-reduced

4,187 views

Published on

LTTC Presentation

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
4,187
On SlideShare
0
From Embeds
0
Number of Embeds
3,960
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Lttc 01222014-reduced

  1. 1. Lattice Inc. RedChip Conference January 22, 2014 Ticker Symbol: LTTC © 2011, Lattice Incorporated. All Rights Reserved.
  2. 2. 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.
  3. 3. 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.
  4. 4. Financials 2009 Revenue 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 * Excludes Government services Division and associated corporate expenses
  5. 5. 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
  6. 6. 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  Small Regional Service Providers "  Solid regional relationships with smaller under 50 bed facilities "  Outdated Technology generating lower revenues per inmate !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
  7. 7. 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)
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. Integrated  Correc-ons  Opera-ons  Networks  (ICON)   ICON  will  provide  centralized  database   management  and  payment  capability.   U-lizing  the  a  central  core  engine  will   allow  mul-ple  soMware  applica-ons   to  reuse  soMware  processes  saving   development  -me  and  producing  far   more  efficient  business  prac-ces.   ICON  Core ICON  will  consist  of  five  major   components:   •  Products  and  Services  management   •  Customer  Informa-on  Database   •  Payment  Processing   •  Accoun-ng/Billing   •  Customer  Care   Secure  Communica-on  Layer   All  communica-on  between  payments  and   services  will  u-lize  ICON’s  Secure   Communica-on  Layer.    Outside  development   firms  will  have  standard  interfaces  to  u-lize   Secure ICON Application Management Jail Management System Communication
  14. 14. Products  and  Services  managed  and   accounted  for  by  ICON Secure ICON Application Management Jail Management System Communication PIN Debit and PPC Phone Accounts
  15. 15. ICON  Jail  Management  System The  ICON  Jail  Management  System   (JMS)  is  a  key  component  to  the  ICON   core.    The  JMS  stores  and  manages   correc-onal  facility  processes,  inmate   booking,  inmate  informa-on,  and   trust  accoun-ng   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
  16. 16. 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.
  17. 17. 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

×