Annual Meeting of Shareholders€¦ · Broad Base of Markets Electronics & ... Led by fuel cell...
Transcript of Annual Meeting of Shareholders€¦ · Broad Base of Markets Electronics & ... Led by fuel cell...
OTCQX: SOTK
Annual Meeting of ShareholdersAugust 22, 2019Dr. Chris L. CoccioChairman and CEO
2OTCQX: SOTK www.sono-tek.com
Welcome Shareholders
BOARD MEMBERS ROLE DIRECTOR SINCE
Dr. Chris Coccio Chairman 1998
Steve Harshbarger Director 2013
Eric Haskell Independent Director 2009
Dr. Donald Mowbray Independent Director* 2003
Dr. Joseph Riemer Independent Director 2007
Samuel Schwartz Chairman Emeritus and Independent Director 1987
Philip Strasburg Independent Director** 2004
Carol O’Donnell Independent Director 2018
*Chair of Compensation Committee **Chair of Audit Committee
3OTCQX: SOTK www.sono-tek.com
Welcome Shareholders
Dr. Chris CoccioChairman and
Chief Executive Officer
Steve Harshbarger President
Stephen Bagley Chief Financial Officer
Bennett BruntilVice President,
Sales & Marketing
Robb Engle Vice President, Engineering
EXECUTIVE & SENIOR MANAGEMENT
Chris CichettiVice President,
Applications Engineering
OTCQX: SOTK
Annual Meeting of Shareholders
August 22, 2019
Dr. Chris Coccio, CEO
5OTCQX: SOTK www.sono-tek.com
This presentation contains forward‐looking statements within the meaning of safe‐harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties, and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including delivery of profitable, dynamic growth, growth opportunities for ultrasonic spray technology, retaining and expanding industry leadership and customer base, continuing product diversity, maintaining technological advantage of the Company’s nozzles over those of competitors, including faster return on investment compared to conventional spray systems, enhancing global distribution network, establishing market niches for recently developed products, market reception of new spray innovations, maintaining strong net cash position, achieving EBITDA projections, and other factors. Accordingly, although the Company believes that the expectations reflected in such forward‐looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company has no obligation to update the forward‐looking information contained in this presentation.
Safe Harbor Statement
6OTCQX: SOTK www.sono-tek.com
Strategy
Leverage our innovative technologies, proprietary know‐how, unique talent and experience,
and global reach to:
Increase our addressable markets through new and unique applications of our ultrasonic coating technology.
Further penetrate existing markets.
Create customer delight through product superiority.
Drive a business model that will fund our investments in growth and shareholder value.
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FY 2019 Dashboard
Revenue Growth
$11.6M5.5%
Gross Margin
45%
RecordBacklog
$3M145%
Invested in the future:R&D, Capex,
Market Expansion
Net Income
EPS
Growth in Leading Markets
$0.01
$0.2M
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Highly Diversified
ProductGeography
FY 2019 Sales $11.6 million
Markets
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Total Debt and Equity
Up! Down!
OTCQX: SOTK
Annual Meeting of Shareholders
August 22, 2019
Steve Harshbarger, President
11OTCQX: SOTK www.sono-tek.com
APPLICATIONS
Broad Base of Markets Revenue by Market: FY2019 Sales $11.6 million
Electronics & MicroelectronicsElectronics & Microelectronics
Medical
Alternative Energy
Emerging R&D And Other
Industrial
Printed circuit boards Semiconductors Sensors Glass electronic devices
Printed circuit boards Semiconductors Sensors Glass electronic devices
Implanted medical devices Blood collection tubes Diagnostic devices Bandages Diabetes monitoring Balloon catheters
Fuel Cell Solar Cell Batteries
Mix of next gen applications Potential categories to rise and create new
market categories
Flat (“float”) glass Textiles Food Automotive Aerospace/aircraft
12OTCQX: SOTK www.sono-tek.com
APPLICATIONS
Broad Base of Markets
Electronics & MicroelectronicsElectronics & Microelectronics
Medical
Alternative Energy
Emerging R&D And Other
Industrial
Printed circuit boards Semiconductors Sensors Glass electronic devices
Printed circuit boards Semiconductors Sensors Glass electronic devices
Implanted medical devices Blood collection tubes Diagnostic devices Bandages Diabetes monitoring Balloon catheters
Fuel Cell Solar Cell Batteries
Mix of next gen applications Potential categories to rise and create new
market categories
Flat (“float”) glass Textiles Food Automotive Aerospace/aircraft
Electronics & MicroelectronicsElectronics & Microelectronics
Printed circuit boards Semiconductors Sensors Glass electronic devices
13OTCQX: SOTK www.sono-tek.com
Electronics & MicroelectronicsElectronics & Microelectronics
Medical
Alternative Energy
Emerging R&D And Other
Industrial
Printed circuit boards Semiconductors Sensors Glass electronic devices
Printed circuit boards Semiconductors Sensors Glass electronic devices
Implanted medical devices Blood collection tubes Diagnostic devices Bandages Diabetes monitoring Balloon catheters
Fuel Cell Solar Cell Batteries
Mix of next gen applications Potential categories to rise and create new
market categories
Flat (“float”) glass Textiles Food Automotive Aerospace/aircraft
APPLICATIONS
Broad Base of Markets Revenue by Market: FY2019 Sales $11.6 million
Medical Implanted medical devices Blood collection tubes Diagnostic devices Bandages Diabetes monitoring Balloon catheters
14OTCQX: SOTK www.sono-tek.com
Electronics & MicroelectronicsElectronics & Microelectronics
Medical
Alternative Energy
Emerging R&D And Other
Industrial
Printed circuit boards Semiconductors Sensors Glass electronic devices
Printed circuit boards Semiconductors Sensors Glass electronic devices
Implanted medical devices Blood collection tubes Diagnostic devices Bandages Diabetes monitoring Balloon catheters
Fuel Cell Solar Cell Batteries
Mix of next gen applications Potential categories to rise and create new
market categories
Flat (“float”) glass Textiles Food Automotive Aerospace/aircraft
APPLICATIONS
Broad Base of Markets Revenue by Market: FY2019 Sales $11.6 million
Alternative Energy Fuel Cell Solar Cell Batteries
15OTCQX: SOTK www.sono-tek.com
Electronics & MicroelectronicsElectronics & Microelectronics
Medical
Alternative Energy
Emerging R&D And Other
Industrial
Printed circuit boards Semiconductors Sensors Glass electronic devices
Printed circuit boards Semiconductors Sensors Glass electronic devices
Implanted medical devices Blood collection tubes Diagnostic devices Bandages Diabetes monitoring Balloon catheters
Fuel Cell Solar Cell Batteries
Mix of next gen applications Potential categories to rise and create new
market categories
Flat (“float”) glass Textiles Food Automotive Aerospace/aircraft
APPLICATIONS
Broad Base of Markets Revenue by Market: FY2019 Sales $11.6 million
Industrial Flat (“float”) glass Textiles Food Automotive Aerospace/aircraft
16OTCQX: SOTK www.sono-tek.com
Electronics & MicroelectronicsElectronics & Microelectronics
Medical
Alternative Energy
Emerging R&D And Other
Industrial
Printed circuit boards Semiconductors Sensors Glass electronic devices
Printed circuit boards Semiconductors Sensors Glass electronic devices
Implanted medical devices Blood collection tubes Diagnostic devices Bandages Diabetes monitoring Balloon catheters
Fuel Cell Solar Cell Batteries
Mix of next gen applications Potential categories to rise and create new
market categories
Flat (“float”) glass Textiles Food Automotive Aerospace/aircraft
APPLICATIONS
Broad Base of Markets Revenue by Market: FY2019 Sales $11.6 million
Emerging R&D And Other
Mix of next gen applications Potential categories to rise and create new
market categories
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Sales Grew 5.5% in FY2019
Solid Growth Trend Throughout the Year
MedicalSpecialized application expertise for active drug coatings and functional films onto medical devices.
Alternative EnergyLed by fuel cell development programs in Asia.
Higher volume in multi‐axis systems and integrated coating systems.
($ in millions)
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Gross Margin
Industry leading gross margins.
Slight dip in FY2019 margins to capture key China‐based Fuel Cell accounts.
Successful entry strategy!
($ in millions)
Gross Margin
45.3%
47.2%
46.8%
48.1%
45.0%
FY2015 FY2016 FY2017 FY2018 FY2019
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Investing In Growth
Managed Operating Expenses G&A relatively flat.
Continued aggressive investment into R&D. Robotics platform expanded to product
portfolio and laboratory Complex customized solutions with
new nozzle technology
Increased Marketing & Selling to penetrate new markets with new products. Trade shows
Website optimization
Asia‐based personnel
FY2015 FY2016 FY2017 FY2018 FY2019
General & Administrative Marketing & Selling R&D
OPERATING EXPENSES($ in millions)
$4.3 $4.8 $4.5 $4.9 $5.2
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Capex Investment for Growth in NY
~$650K planned for FY2020 Largest in SOTK history
Facilities modernization/renovation/expansion. Power for large platform robotic systems Increased parking for employees Building structure repairs
Machinery purchases. Precision laser welding CNC/Lathe
Several outsourced operations being brought in house. Planned workforce increase of ~6 employees. Participation by Central Hudson ($100K) and New York State
($150K over 10 years) for Sono‐Tek to receive grants.*Growing Sono‐Tek and increasing our workforce in NY
OTCQX: SOTK
Annual Meeting of Shareholders
August 22, 2019
Chris Cichetti, VP, Applications Engineering
22OTCQX: SOTK www.sono-tek.com
New Robot Platforms Introduced
Advanced 6‐axis ultrasonic coating platform.
Application Engineering specified solutions.
Lab system now available for customer testing.
Process simulation videos can be made for customers.
2‐year development program.
9 employees qualified through robot training program (4 Application engineers, 2 Service engineers, 2 Software engineers, and 1 Electrical engineer).
Highly customized product offering, selling price ranging from $150k ‐ $1.6M.
OmniBot Robot Platform
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Example process simulation.
New Robot Platforms Introduced
OTCQX: SOTK
Annual Meeting of Shareholders
August 22, 2019
Robb Engle, VP, Engineering Bennett Bruntil, VP, Sales & Marketing
25OTCQX: SOTK www.sono-tek.com
Recently Introduced Products
Many R&D systems in the field. Trend of moving to production is continuing. We are developing systems that meet
the growth and demand.
Customized Industrial Fuel Cell Coating Lines
Mid to High Volume High Volume
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Recently Introduced Products
Both applications proven to show benefits using ultrasonic coating technology.
Key industry partnerships established to explore markets.
Continued exploration for possible market acceptance.
Exploratory MarketsMOLD RELEASE
EMI SHIELDING
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Recently Introduced Products
Extremely thin sprayed lines for Clearweld applications.
More robust design means higher success for customers.
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Significant technical advancement in this long established Sono‐Tek market.
Recently Introduced Products
SelectaFlux X2
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Recently Introduced Products
Modernized & Expanded Industrial Coating Lines Next generation, to meet customers’ needs and expectations.
Increased automation and connectivity.
OTCQX: SOTK
Steve Harshbarger, President
31OTCQX: SOTK www.sono-tek.com
First Quarter 2020 Results
Q1 2019 Q1 2020
Revenue($ in millions)
$2.7 $2.8
+ 4.5%
Q1 2019 Q1 2020
Gross Profit ($ in millions)
$1.2 $1.3
+2.7%
Q1 2019 Q1 2020
Net Income($ in thousands)
$21 $25
+ 19%
Increased demand from Electronics/Microelectronics and Medical Industries.
Record high backlog of $4,024,000.
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FY 2020 Outlook*
Anticipate Rapid Growth in Revenue and Net Income for FY2020
New products and applications. Higher complexity, higher cost machinery. Alternative Energy sector (Fuel Cell) continuing to gain acceptance. 15‐20% growth projected. Highest sales in company history.
BACKLOGSHIPMENTSPROPOSALS LAB ACTIVITY*Outlook provided as of July 16, 2019
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Investment Highlights
Strong brand and reputation: known for high quality and consistency.
Continued strengthening of application expertise, process development laboratories, new products, and technological advancements.
Broadening of product line with higher value machinery.
Expanding addressable markets and applications to broaden customer base.
FY2020 set to be the best year in Company history!
Highest revenue Excellent profits
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Questions
www.sono-tek.com
OTCQX: SOTK
Annual Meeting of Shareholders
August 22, 2019
OTCQX: SOTK