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LCC International, Inc. NASDAQ: LCCI Friedman Billings Ramsey & Co. 2007 Growth Conference Dean Douglas President and Chief Executive Officer

LCC International, Inc. NASDAQ: LCCIlibrary.corporate-ir.net/library/10/104/104575/items/248242/FBR...LCC International, Inc. NASDAQ: LCCI Friedman Billings Ramsey & Co. 2007 Growth

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LCC International, Inc.

NASDAQ: LCCI

Friedman Billings Ramsey & Co. 2007 Growth Conference

Dean DouglasPresident and Chief Executive Officer

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Safe Harbor GuidelinesSafe Harbor Guidelines

Statements included in this presentation that are not historical in nature are "forward-looking statements" within the meaning of Section 21E of the U.S. Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. There are many risks, uncertainties and other factors that can prevent the Company from achieving its goals or cause the Company's results to differ materially from those expressed or implied by these forward-looking statements. These statements are based on management’s current expectations and assumptions, which may be affected by developments and business conditions, and necessarily involve risks and uncertainties including, without limitation those risk factors outlined in the Company’s Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, and related SEC filings.

In providing projections and other forward-looking statements, the Company does not make, and specifically disclaims, any undertaking or obligation to update them at any time in the future or at all to reflect new information, future events or otherwise.

Revised LCC Company SnapshotRevised LCC Company Snapshot

Founded

IPO

Business Focus

Target Market

Headquarters

Employees

Presence

Market Cap

1983

1996 (Nasdaq: LCCI)

Design, manage, optimize & maintain fixed and mobile wireless networks and operations

Wireless Carriers, Content Providers, and Wireless Equipment Vendors

McLean, Virginia

Approximately 1250 employees

Operations in 22 countries

$115 million

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Experienced Management TeamExperienced Management Team

Dean Douglas, President and Chief Executive Officer25 years of experience in systems and Telco industries

Previously with IBM Global Services, Invisix, Motorola

Lou Salamone, Exec. Vice President and Chief Financial Officer38 years of finance and accounting experience

CFO at GXS Corporation, US Internetworking, Applied Graphics Technologies & Nextel Communications, Deloitte & Touche

Peter Deliso, Sr. Vice President New Ventures and General Counsel20 years of experience within Telecommunications industry including 12 years in senior management with LCC

Formerly with Mobile Telecommunication Technologies Corp., which included SkyTel.

Kenny Young, Sr. Vice President and General Manager, Americas20 years of Telco marketing and sales experience

Formerly with Liberty Media/TruePosition, Cingular Wireless, AT&T (Southwestern Bell and SBC Wireless)

Carlo Baravalle, Exec. Vice President Europe, Middle East, Africa and Asia/Pacific20 years of experience in management in business operations, marketing, finance

Formerly with Exchange PLC, Lucent Technologies, Warburg Dillion Reed and British Telecom

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LCCLCC’’s Customer Base Is Diverse and Expansive s Customer Base Is Diverse and Expansive

REPRESENTATIVE SAMPLE OF LCC CUSTOMER BASE

Equipment Manufacturers

Key Strategic AnnouncementKey Strategic Announcement

LCC announces a key strategic acquisition and major milestone in the wireless industry

Acquisition consistent with LCC Previously Announced Strategy

LCC will acquire WFI’s U.S. wireless engineering operations and associated assets

Consists of approximately 350 employees – Wireless engineers, technical consultants and limited support staff

Includes various assets and tools

Does not include WFI’s deployment operations, enterprise services or Government division

LCC and WFI have signed an Definitive Agreement with closing expected shortly

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Key Strategic AnnouncementKey Strategic Announcement

Transaction Details:

LCC will purchase the U.S. Engineering Business for $39 million in total cash consideration

The acquisition is accretive

This acquisition complements LCC’s previous announcements around WFI’s EMEA Operations and Detron Belgium

This transaction directly supports LCC strategic direction of revenue growth through key acquisitions

This will create the largest wireless engineering services organizations in the world.

Very limited customer overlap

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Key Acquisition BenefitsKey Acquisition Benefits

LCC augments its intellectual capital with WFI’s UMTS, HSDPA, WiMAX, Spectrum Management, Fixed Network Engineering, E-911, and Land Mobile Radio services

LCC will leverage two sets of experienced engineering resourcesto maximize service delivery and tremendously enhance the value our combined resources brings to our customers

LCC is in a unique position to offer a vast array of advanced wireless network services as we continue to execute against our strategic initiatives particularly around revenue growth through key acquisitions

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Transaction DetailsTransaction DetailsLCC will purchase the U.S. Engineering Business for $39 million in total cash consideration

Includes entire business and various support staff

Certain Unbilled Accounts Receivables

Financing for Transaction through:

Bank of America Asset Based Loan $30 million ($6 million to repay bridge)

Borrowings at time of closing will be $20 million ($14 million net)

The amount available will be based on Accounts Receivables

WFI to provide $22 million in seller financing

LCC to provide $3 million

Key WFI financial metrics (Amounts are estimates based on unaudited information provided to LCC by WFI)

Revenues for WFI’s U.S. Engineering Business are roughly $4 million per month

Gross Margins for same are in low 20% range

Transaction will realize $5 to $7 million of SG&A synergies

LCC will provide further guidance during next earnings call

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LCCLCC’’s Expanded Services Offeringss Expanded Services Offerings

LCCLCC’’s Strategys Strategy

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Augmented Executive Management Team

Shed Underperforming Assets

Reached Gross Margins Greater than 26%

Reduced Loss from Continuing Operations to $2.9 million from $11.6 million

Increased Market Cap by Over 30%

Converted Class B to Class A Shares

Invested in Expansion in Europe & Emerging Markets

Invested in Marketing and New Services

2006 Highlights 2006 Highlights –– A Year of TransformationA Year of Transformation

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LCCLCC’’s Performance Against its Strategic Initiativess Performance Against its Strategic Initiatives

2006 Accomplishments

Augmented LCC’s executive management team

Renewed key long-term contracts that leverage existing assets

Acquired Detron Belgium to increase European presence

Further expansion into emerging markets

Reorganized EMEA in regional structureNew U.S. sales organization - Different skills than deploymentFocused Network, TotalView™ and Consulting SolutionsPromoted LCC’s 3G & 4G advanced services

Strengthen bench skills during seasonality towards WiMAX, HSDPA and other advanced engineering services

Developed new services offeringsSpectrum Management

Fixed Network Engineering / Backhaul

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LCCLCC’’s Performance Against its Strategic Initiativess Performance Against its Strategic Initiatives

2006 AccomplishmentsImplemented culture focused on bottom lineTransformed Italy and Spain operations towards engineering services modelLeveraged LCC intellectual capital

Drove higher margins from existing client baseCapitalized on thought leadership through R&IDeveloped new generation of broadband servicesLeveraged insight with new entrants at spectrum auction

Exceeded gross margin target of 20% in USDeveloped higher margin consulting servicesSecured first significant agreement in Spectrum ClearingRe-structured services delivery model that impacted bottom line

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LCCLCC’’s Performance Against its Strategic Initiativess Performance Against its Strategic Initiatives

2006 Accomplishments

TotalView™ - LCC’s portfolio of software tool based services

Network and End-User based solutions

Launched WiView™ - WiMAX tool based servicesSecured 5 consulting engagementsWiMAX and other broadband technologiesDimensioning, performance and optimization tools

ContentView™ - End-User Quality of ExperienceAlliance with leader in mobile customer experiencePerformed Trials in Middle East

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Current Challenge in the Wireless Space: Data OptimizationCurrent Challenge in the Wireless Space: Data Optimization

20% of mobile multimedia transactions never complete

Only 12% of customers profess to be satisfied with the mobile online experience

64% confessed that they would give up trying after one or two attempts

28% Revenue Leakage from Premium SMS/MMS transactions.

Mobile Content providers are reporting churn levels reaching 60% levels

Direct Correlation of data/content adoption and usage increase to end-user experience

Carriers are now taking steps to maximize voice AND data services but this necessitates new services to fully understand how to measure KPI for Voice and Content service delivery

Carriers are now taking steps to maximize voice AND data services but this necessitates new services to fully understand how to measure KPI for Voice and Content service delivery

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Quality of Experience Versus Quality of ServiceQuality of Experience Versus Quality of Service

TotalViewTotalView™™ Service Delivery PlatformService Delivery Platform

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2007 Overview2007 Overview

Turn around completed - focus is on transformation

2007 – we are laying the foundation for growth

Profitable growth is fundamental to generating real leverage with our business model

Significant growth through expansion in U.S. & EMEA

Broadening reach both geographic and with customers

Rising tide of opportunity in U.S. provides opportunity for organic growth

Continued focus on developing tools based services engagements

ContentView™ pilots

WiView™ for 700MHG auction

Continued diligence and focus around cost structure

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SummarySummary

Completed Significant Turnaround in 2006

Laying the Foundation for Profitable Growth in 2007 and Beyond

Continued Focus on Higher Margin Opportunities

Continued to Augment and Execute Against Strategy

Strategy and Direction is Driven by Market Gaps and Needs

Continue to Enhance and Leverage LCC’s Brand, Resources and

Industry Leadership

We continue to grow the business by profitably executing on our We continue to grow the business by profitably executing on our strategystrategy

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