Exhibit 99.1
Annual General Meeting Tempe, Arizona | May 14, 2007 |
Safe Harbor There are statements in this presentation that are not historical facts. These "forward-looking statements" can be identified by the use of terminology such as "believe," "hope," "may," "anticipate," "should," "intend," "plan," "will," "expect," "estimate," "project," "positioned," "strategy" and similar expressions. You should be aware that these forward-looking statements are subject to risks and uncertainties that are beyond our control. These risks and uncertainties include unanticipated trends in the various markets we serve, changes in health care, telemedicine or insurance regulations and economic and competitive conditions, governmental regulation and legal costs and our ability to stay abreast of increasing technology demands. The forward-looking statements included in this presentation do not guarantee our future performance, and actual results could differ from those contemplated by these forward-looking statements. In the light of these risks and uncertainties, there can be no assurance that the results and events contemplated by the forward-looking statements contained in this presentation will in fact transpire. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. We do not undertake any obligation to update or revise any forward-looking statements. Investors should consult the Company's reports filed with the ASX and SEC for additional information about these and other risks and uncertainties. |
Today's discussion Evolution of MedAire in past year Current initiatives to increase shareholder value Delivering long-term benefits to stakeholders |
One year ago... Company goals revised Profitable growth Product and distribution development Customer satisfaction Personnel development |
Profitable Growth Focused on core strengths Sold Global Doctor clinics Finalized outsourcing of security business De-emphasized Business Traveler market Reviewed profitability of contracts Gained departmental efficiencies |
Education and Quality Enhanced courses to meet client needs Transitioned instructors from contractors to employees Created international training support Enhanced quality assurance (ISO) Received excellent feedback from students Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Customer Satisfaction 0.98 0.98 0.96 0.95 0.97 0.96 0.96 0.95 0.99 0.98 0.98 0.98 "I would recommend MedAire's Training Programs to other companies" |
Expertise: Quality is key Enhanced quality assurance & training Quarterly department and individual scorecards Provided cross training to enhance efficiencies Improve infrastructure Consolidating case management systems Replaced phone system Enhanced client reports Consistently exceeded department goals Over 42,000 cases managed in 2006 |
Equipment Implemented new products in Q1 07 Medical Inventory Control System Pediatric Supplemental Rx Kit Global Travel Watch (online health and safety data) Gained efficiencies throughout assembly process Provided newly-compliant automated external defibrillators and training |
Current initiatives to increase shareholder value |
2007 Initiatives Profitable Growth & Cost Control Product Development & Distribution Customer Satisfaction Personnel Development |
Product Development & Distribution Global Travel Watch New Business Aviation Solutions Pediatric Kit Medical Inventory Control Supporting our clients' global operations |
US and UK Sales Organization Face-to-face meetings with clients Territory review New product sales Sales compensation Strategic approach to prospecting Customer service after the sale |
Partnering with International SOS Sales Agency Agreement Ability to reach new markets quickly Minimum initial investment Dedicated International SOS resources Opportunities to develop joint products |
Customer Satisfaction Client Advisory Council Service satisfaction surveys Operational managers interacting with clients Product development and enhancements ISO Certification |
Personnel Development / Retention Performance appraisal process Employee satisfaction survey Cross-functional team building Training and career development Growth provides opportunity |
Delivering long-term benefits to stakeholders |
The Paradox of MedAire Valuable Product Loyal Clients Great People Net Operating Losses |
The Paradox of MedAire Valuable Product Loyal Clients Great People Solid return on investment Paradigm |
MedAire Information Stock symbol: MDE Exchange: Australian Stock Exchange (ASX) Market cap: USD $47.7M (as of May 11, 2007) Outstanding shares 57,527,960 Stock price USD $0.37 (as of April 1, 2006) Stock price USD $0.83 (as of May 11, 2007) Corporate office 80 E. Rio Salado Pkwy, Suite 610 Tempe, Arizona 85281 Website www.medaire.com Investor contact: James A. Williams Chief Executive Officer +1.480.333.3700 |
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
MEDAIRE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| | | | | | | | |
| | March 31, | | | | |
| | 2007 | | | December 31, | |
| | (unaudited) | | | 2006 | |
| | | | | | |
ASSETS | | | | | | | | |
Current assets: | | | | | | | | |
Cash and cash equivalents | | $ | 4,607,111 | | | $ | 3,860,110 | |
Accounts receivable, net of allowance for doubtful accounts and returns of $483,000 and $406,000 at March 31, 2007 and December 31, 2006, respectively | | | 4,900,956 | | | | 5,517,129 | |
Unbilled revenue | | | 839,365 | | | | 614,958 | |
Inventory | | | 490,122 | | | | 393,022 | |
Notes receivable — short term | | | 51,233 | | | | 50,472 | |
Prepaid and other current assets | | | 754,669 | | | | 770,197 | |
| | | | | | |
Total current assets | | | 11,643,456 | | | | 11,205,888 | |
Equipment and leasehold improvements, net | | | 1,498,419 | | | | 1,651,933 | |
Goodwill | | | 795,466 | | | | 795,466 | |
Identifiable intangibles, net | | | 144,483 | | | | 165,059 | |
Deposits | | | 131,756 | | | | 135,590 | |
Other long term assets | | | 24,233 | | | | 38,486 | |
| | | | | | |
| | $ | 14,237,813 | | | $ | 13,992,422 | |
| | | | | | |
| | | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
Current liabilities: | | | | | | | | |
Accounts payable | | $ | 859,777 | | | $ | 735,952 | |
Current maturities of capital lease obligations | | | 89,270 | | | | 87,836 | |
Short term notes payable | | | 213,196 | | | | 353,219 | |
Accrued expenses | | | 2,869,192 | | | | 2,834,674 | |
| | | | | | |
Current liabilities before deferred revenue | | | 4,031,435 | | | | 4,011,681 | |
Current portion of deferred revenue | | | 6,520,378 | | | | 6,853,153 | |
| | | | | | |
Total current liabilities | | | 10,551,813 | | | | 10,864,834 | |
Long-term capital lease obligations, less current portion | | | 359,277 | | | | 382,601 | |
Deferred revenue, less current portion | | | 823,816 | | | | 874,662 | |
| | | | | | |
Total liabilities | | | 11,734,906 | | | | 12,122,097 | |
| | | | | | |
| | | | | | | | |
Stockholders’ equity: | | | | | | | | |
Preferred stock; voting, $.001 per share; 10,000,000 shares authorized, none issued | | | — | | | | — | |
Common stock; voting, $0.001 par value; 100,000,000 shares authorized; 57,527,960 shares issued and outstanding at March 31, 2007 and December 31, 2006 | | | 57,528 | | | | 57,528 | |
Additional paid-in capital | | | 6,678,897 | | | | 6,678,897 | |
Accumulated deficit | | | (4,249,604 | ) | | | (4,878,610 | ) |
Accumulated other comprehensive income | | | 16,086 | | | | 12,510 | |
| | | | | | |
Total stockholders’ equity | | | 2,502,907 | | | | 1,870,325 | |
| | | | | | |
| | | | | | | | |
| | $ | 14,237,813 | | | $ | 13,992,422 | |
| | | | | | |
The accompanying notes and the notes incorporated by reference to the 2006 annual 10-K filing are an integral part of these consolidated financial statements.
MEDAIRE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
| | | | | | | | |
| | Three Months Ended | |
| | March 31, | | | March 31, | |
| | 2007 | | | 2006 | |
| | (unaudited) | | | (unaudited) | |
Revenues, net | | | | | | | | |
Services | | $ | 4,865,973 | | | $ | 4,953,181 | |
Equipment | | | 1,945,857 | | | | 1,666,015 | |
Education | | | 926,250 | | | | 800,436 | |
| | | | | | |
Total revenues, net | | | 7,738,080 | | | | 7,419,632 | |
| | | | | | |
Costs of revenues | | | | | | | | |
Services | | | 2,714,621 | | | | 3,464,070 | |
Equipment | | | 1,100,309 | | | | 995,468 | |
Education | | | 477,140 | | | | 535,918 | |
| | | | | | |
Total costs of revenues | | | 4,292,070 | | | | 4,995,456 | |
| | | | | | |
Gross profit | | | 3,446,010 | | | | 2,424,176 | |
| | | | | | |
Operating expenses | | | | | | | | |
Sales and marketing | | | 1,165,112 | | | | 1,245,899 | |
General and administrative | | | 1,489,412 | | | | 2,192,158 | |
Depreciation and amortization | | | 183,237 | | | | 175,170 | |
| | | | | | |
Total operating expenses | | | 2,837,761 | | | | 3,613,227 | |
| | | | | | |
Operating income (loss) | | | 608,249 | | | | (1,189,051 | ) |
| | | | | | |
Other income (expense) | | | | | | | | |
Interest income | | | 39,262 | | | | 9,909 | |
Interest expense | | | (18,505 | ) | | | (4,570 | ) |
| | | | | | |
Total other income (expense) | | | 20,757 | | | | 5,339 | |
| | | | | | |
Net income (loss) before income taxes | | | 629,006 | | | | (1,183,712 | ) |
Income tax expense (benefit) | | | — | | | | — | |
| | | | | | |
Net income (loss) | | $ | 629,006 | | | $ | (1,183,712 | ) |
| | | | | | |
| | | | | | | | |
Net income (loss) per common share, basic and diluted | | | | | | | | |
Basic | | $ | 0.01 | | | $ | (0.02 | ) |
| | | | | | |
Diluted | | $ | 0.01 | | | $ | (0.02 | ) |
| | | | | | |
| | | | | | | | |
Weighted average number of shares used in computation: | | | | | | | | |
Basic | | | 57,527,960 | | | | 57,453,583 | |
| | | | | | |
Diluted | | | 58,041,919 | | | | 57,453,583 | |
| | | | | | |
The accompanying notes and the notes incorporated by reference to the 2006 annual 10-K filing are an integral part of these consolidated financial statements.
MEDAIRE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
| | | | | | | | |
| | Three Months Ended | |
| | March 31, | | | March 31, | |
| | 2007 | | | 2006 | |
| | (unaudited) | | | (unaudited) | |
CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | |
Net income (loss) | | $ | 629,006 | | | $ | (1,183,712 | ) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | | | | | |
Depreciation and amortization | | | 183,238 | | | | 175,170 | |
Bad debt expense and provision for sales returns | | | 76,169 | | | | 27,034 | |
Stock based employee compensation | | | — | | | | 484,976 | |
Loss on disposal of assets | | | 3,251 | | | | 2,945 | |
Changes in operating assets and liabilities: | | | | | | | | |
Accounts receivable | | | 539,442 | | | | (537,319 | ) |
Unbilled revenue | | | (224,407 | ) | | | 73,691 | |
Inventory | | | (97,100 | ) | | | 21,583 | |
Prepaids and other current assets | | | 15,587 | | | | 295,976 | |
Deposits | | | 3,837 | | | | (44,242 | ) |
Accounts payable and accrued expenses | | | 158,004 | | | | 21,349 | |
Deferred revenue | | | (384,965 | ) | | | 843,056 | |
| | | | | | |
Net cash provided by operating activities | | $ | 902,062 | | | $ | 180,507 | |
| | | | | | |
CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | |
Purchase of equipment and leasehold improvements | | | (14,654 | ) | | | (65,433 | ) |
Proceeds from sale of equipment | | | 132 | | | | — | |
Repayments on notes receivable | | | 13,492 | | | | — | |
| | | | | | |
Net cash used in investing activities | | $ | (1,030 | ) | | $ | (65,433 | ) |
| | | | | | |
CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | |
Payments on short term notes payable | | | (140,023 | ) | | | — | |
Repayment of capital lease obligation | | | (21,890 | ) | | | (1,759 | ) |
| | | | | | |
Net cash used in financing activities | | $ | (161,913 | ) | | $ | (1,759 | ) |
| | | | | | |
Effect of foreign currency exchange rate changes on cash and cash equivalents | | | 7,882 | | | | 6,073 | |
| | | | | | |
Net increase in cash and cash equivalents | | | 747,001 | | | | 119,388 | |
Cash and cash equivalents at beginning of period (including Global Doctor balances) | | | 3,860,110 | | | | 2,090,938 | |
| | | | | | |
Cash and cash equivalents at end of the period (including Global Doctor balances) | | | 4,607,111 | | | | 2,210,326 | |
Cash and cash equivalents at end of the period associated with Global Doctor | | | — | | | | (138,984 | ) |
| | | | | | |
| | $ | 4,607,111 | | | $ | 2,071,342 | |
| | | | | | |
| | | | | | | | |
SUPPLEMENTAL CASH FLOW DISCLOSURES | | | | | | | | |
Cash paid during the three months for interest | | $ | 18,505 | | | $ | 5,000 | |
| | | | | | |
The accompanying notes and the notes incorporated by reference to the 2006 annual 10-K filing are an integral part of these consolidated financial statements.