Transcript This presentation contains forward

Investor Presentation
Globecomm
A Leading Communication Solutions Provider
Forward Looking Statement
This presentation contains forward-looking statements made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. These
forward looking statements are based on management's current expectations and
observations. You should not place undue reliance on our forward-looking
statements because the matters they describe are subject to certain risks,
uncertainties and assumptions that are difficult to predict. Our forward-looking
statements are based on the information currently available to us. Over time, our
actual results, performance or achievements may differ from those expressed or
implied by our forward-looking statements, and such differences might be
significant and materially adverse to our security holders.
We have identified some of the important factors that could cause future events to
differ from our current expectations and they are described in our most recent
Annual Report on Form 10-K, including without limitation under the captions ''Risk
Factors'' and ''Management's Discussion and Analysis of Financial Condition and
Results of Operations,'' and in other documents that we may file with the SEC, all of
which you should review carefully. Please consider our forward-looking statements
in light of those risks as you read this presentation.
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Communication Solution Provider
 We Design, Integrate, Install, and Manage
Broadband Networks Anywhere.
 Our Team: ~500 Employees. >100
Engineers creating custom, state of the art
communication solutions.
 Global Network: comprised of satellite, fiber
and wireless nodes enabling secure broadband
anywhere.
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Corporate Growth
2007
Globalsat
2009
Mach6
2009
Telaurus
Fueled by
Acquisitions
Capture
2010
C2C/
EVOSAT
2011
ComSource
Store
Preserve
Private
Network/
Data
Management
Company
Evolution
1996
1994
System
Integrator
IP
Transport
Services
2004
End to
End
Network
Services
2009
Hosted
and
Managed
Services
2012
Private
Networks/
Data
Management
Deliver
Manage
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Financial Highlights
 Evolving business model with “sticky”, recurring, higher margin revenue
streams provides predictability, stability and visibility.
 34 consecutive profitable quarters.
 Strong operational cash flow - $78.3 million generated from fiscal 2010-2012.
 Completed 5 strategic acquisitions valued at $75 million since April 2007.
 $52 million in net cash at 9/30/12.
 $72.5 million credit facility with CitiBank provides additional acquisition
flexibility.
 Global operation with minimal foreign currency exposure.
 Remaining NOLs and credits cover most cash taxes (small amounts will be
paid for AMT and foreign taxes) throughout fiscal 2013.
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The Globecomm Cloud
.
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Market Vertical Development
Maritime
Enterprise
Wireless
Technology
Government
Globecomm
CloudSoftware
Media
Technology
Capabilities
Media
Wireless
Future
Technology Disruption Allow for New Market Entry
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Diversity Across Market Verticals Leads to Stability
Sales by Vertical (FY2013F)
Government
Maritime
8%
Key Clients/ Verticals
Wireless
Enterprise
11%
Government
Non DoD
45%
Media
Enterprise
Media
11%
Wireless
18%
Government
DoD
7%
Maritime
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Government Vertical Snapshot
Customer Profile – FY12 Bookings
Foreign
Government
17%
4%
9%
40%
30%
Revenue ($M)
Civilian
$200
Intel
$150
Foreign
Affairs
DoD
225.0
$250
$100
$50
$0
2011
What Do You See?
We see the importance of providing the
right tools to promote peace and
security.
199.0
156.0
2012
2013
Wireless Vertical Snapshot
Customer Profile
 Supporting > 12M min and > 1.5 TB
of data per month on our Hosted Platform
 Domestic and International Telcos
 Tier 2 and 3 Telcos
 Rural telecommunication providers
 Emerging cellular operators
 Indonesia, Indochina, Malaysia, Africa, Latin
America, and Middle East
Revenue ($M)
$60
54.8
51.6
$50
$40
24.0
$30
$20
13.1
16.6
6.8
$10
$0
2011
2012
Infastructure
2013
Services
What Do You See?
We see the opportunity to provide
communication to those out of reach
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Media & Entertainment Vertical Snapshot
Customer Profile
 Distributing over 100 channels and
half a million hours of video content
per year
Content Providers with Domestic
and International Growth
Service Providers providing
transport and media content
Online Media Providers
Revenue ($M)
27.4
$30
$25
$20
$15
12.5
11.1
12.7
$10
$5
$0
2011
2012
Infastructure
What Do You See?
We see the need to distribute more
video content to an increasing number
of users and devices
9.7
11.4
2013
Services
Enterprise Vertical Snapshot
TEMPO MEDIA PLATFORM
 Application Based Solutions:
 Enterprise media platform for training,
corporate, and digital display
 Addresses migration from satellite to hybrid
and terrestrial networks
 Globecomm can design and operate a
network that is both satellite and terrestrial
 Gain access into Streaming Media Market
Revenue ($M)
23.6
$25
20.4
18.1
$20
16.4
12.1
$15
$10
$5
3.0
$0
2011
2012
Infastructure
What Do You See?
We see the need to make sure the
businesses stay connected and that
the corporate message gets through,
wherever users are.
2013
Services
Maritime Vertical Snapshot
Revenue ($M)
Customer Profile
 Servicing over 3200 Vessels with
 the world's largest Ku-band maritime service
coverage, reaching 95% of the world's
shipping lanes
 email and Internet access
 real-time monitoring of cargo or shipboard
systems
 automatic roaming between Ku-band satellite
beams and automatic failover to Inmarsat
Fleet Broadband
$35
$30
$25
$20
$15
$10
$5
$0
31.0
28.0
23.0
2011
2012
2013
What Do You See?
We see the need for mariners to stay
connected to the shore to improve their
day-to-day activities
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Financial Highlights
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Guidance
Fiscal year 2013 (June 30th) financial guidance:
 Consolidated Revenues: $340M to $360M
 Service Segment Revenues: $200M to $210M
 GAAP diluted net income per common share: $0.66 to $0.76
 Adjusted EBITDA: $40M to $44M
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Revenue Profile
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Balance Sheet Remains Strong
June 2011
ASSETS
Cash
A/R
Inventory
Goodwill From Acquisitions
Other Assets
TOTAL ASSETS
LIABILITIES & EQUITY
Liabilities
Debt
Equity
TOTAL LIABILITIES & EQUITY
June 2012
Sep. 2012
$48.0
59.3
42.4
70.2
74.7
$72.2
59.2
30.7
68.5
79.5
$70.0
59.3
31.4
68.7
78.5
$294.6
$310.1
$307.9
$84.0
26.8
183.8
$70.0
20.7
219.4
$65.3
19.2
223.4
$294.6
$310.1
$307.9
 $52 million of net cash at 9/30/12.
 Tangible book value of ~ $6.40 per share at 9/30/12.
($ in millions)
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Strong Financial Metrics
 Globecomm’s significant investments in Cap-Ex, coupled with EarnOut Adjustments, make Adjusted EBITDA a key metric in measuring the
business progress.
 Strong operating cash flow to be enhanced by ~$10M in NATO
inventory turning into cash in FY13.
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EPS and Adjusted EPS
 Globecomm currently anticipates fully diluted earnings per share and
adjusted fully diluted earnings per share to be the same in fiscal 2013.
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Globecomm Continues to Invest in Facilities and Technology
 Nearly $47 Million In Capital Expenditure Spending Over Four
Years.
 We Continue to Make the Global Network More Robust and
Invest in Software Applications to Add Value Long-Term.
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Strategic Acquisitions Have Enhanced Capabilities
April 2007
March 2009
June 2009
$18.5 Million
$5.7 Million
$7.0 Million
March 2010
$24.0 Million
April 2011
$19.9 Million
 Globecomm has invested over $75 million in strategic acquisitions in
5 years.
 The Company has a disciplined methodology that combines a
cultural, strategic and financial view towards acquisitions and will
continue to review targets.
 With $52 million in net cash and a $72.5 million credit facility, we are
well positioned to seek out additional opportunities with cash as the
primary source of funding.
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Globecomm Systems Inc.
Supplemental Financial
Information
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Additional Financial Information
Globecomm Systems Inc.
Reconciliation of Net Income to adjusted EBITDA
(In thousands)
(Unaudited)
Three Months Ended
Net Income
Year Ended
June 30,
June 30,
June 30,
June 30,
2012
2011
2012
2011
$
7,084
$
2,158
$ 28,563
$ 8,988
Adjustments:
Interest (income)
(75)
(42)
(246)
(186)
Interest expense
111
192
574
410
(4,129)
2,275
(11,874)
4,824
Provision for income taxes
2,042
1,603
9,492
6,046
Depreciation and amortization
3,223
2,871
12,614
9,703
Stock compensation expense
849
1,166
3,476
3,679
-
6
-
468
9,105
$ 10,229
$ 42,599
$ 33,932
Earn-out fair value adjustments
Acquisition related costs
Adjusted EBITDA
$
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Additional Financial Information
Globecomm Systems Inc.
Reconciliation of adjusted diluted Net Income per common share
(Unaudited)
Three Months Ended
Diluted net income per common share
June 30,
June 30,
June 30,
June 30,
2012
2011
2012
2011
$
$
$
Acquisition related costs (A)
Earn-out fair value adjustments
Non-recurring tax adjustments (B)
Adjusted diluted net income per common share
Year Ended
$
0.31
$
0.10
1.26
0.41
-
-
-
0.02
(0.18)
0.10
(0.52)
0.22
-
-
-
(0.03)
0.13
$
0.20
$
0.74
$
0.62
(A) Amount represents acquisition costs of approximately $0.5 million related to the Company’s acquisition of ComSource in April
2011.
(B) Amount represents non-recurring tax adjustment related to research and development tax credits for fiscal years 2004, 2005 and
2010.
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