Presentation Transcript

1. International Commercial Television Inc. Investor PresentationJune 2014 OTC MARKETS: ICTL I www.ictvonline.com
2. Safe Harbor Statement This presentation contains "forward-looking statements" made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 that are based on current expectations, estimates, forecasts and assumptions and are subject to risks and uncertainties. Words such as "anticipate," "assume," "believe," "estimate," "expect," "goal," "intend," "plan," "project," "seek," "target," and variations of such words and similar expressions are intended to identify forward-looking statements.   Such forward-looking statements are subject to certain risks, uncertainties and assumptions that may cause actual results to differ materially from those expressed by the forward-looking statements, including, but not limited to, the following: general economic, industry and market sector conditions; the Company's future growth and the ability to obtain additional financing to implement the Company's growth strategy; the ability to anticipate and respond to industry trends and preferences; intense competition. In evaluating these statements, you should carefully consider these risks and uncertainties and those described under the headings "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" in the Company's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other Securities and Exchange Commission filings. All forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement was made, except to the extent required by applicable securities laws.
3. Symbol: Stock Price: 52-Week Range: Average Daily Volume: Shares Outstanding: Inside Ownership: Market Cap: Revenue 2013: Operating Income 2013: EPS 2013: Market Overview Direct Response Marketing of Consumer Products Health, Wellness & Beauty Distribution in 35+ Countries OTC Markets: ICTL $0.63 $0.22 - $1.08 50,000 shares 23.2mm 37% $15mm $41.0mm (+79% growth) $1.7mm $0.07 Rebranding to “ICTV Brands”
4. Investment Highlights Driving Growth Through Unique Brands ICTV Strategy Create a portfolio of uniquely branded, high profile products focused on the health and beauty markets Utilize three main promotional platforms - maximize television and internet exposure first and then moving successful products into the retail arena Source and develop products that have potential for rapid growth and smooth transition from direct response sales to national retail chains Create enduring shelf brands resulting in a solid business while continually testing, refining and marketing new and unique products Monitor financial leverage (net Indebtedness/EBITDA) closely to support internal and external growth strategy ICTV Advantage Top tier management with a successful track record of generating shareholder value in their specialized fields of marketing, including brand creation and infomercial production, finance and corporate governance Infrastructure already created to successfully launch DRTV-to-retail sales Established global sales and distribution channels set up in 35 countries internationally to reap the benefits from ICTV infomercials and products Low overhead, flexible cost structure, excellent product sourcing network and compact organizational structure Strong balance sheet due to continued growth in revenue, operating income before amortization (EBITDA) and free cash flow
5. Management Expertise in Corporate Management and Finance, Retailing and DRTV A founder of ICTV; established int’l reputation with over 20 years as a dynamic and creative marketer. Began in the US Direct Response (DR) sector as an independent contractor to National Media Corp;sourced and executive-produced major infomercial projects, incl.: Euro Painter™, HP9000™,Auri®, Color Cote 2000 polymer sealant™,Dustmaster 2000™, LeSnack™,Sterling Spring™,Iron Quick™, Fatfree Express™. Created the successful children's toy BetterBlocks® ; advertised and sold nationally and internationally for 15 years. Principally oversaw the production of ICTV's Derma Wand® infomercial and responsible for sourcing all related skin care products in ICTV's DermaVitál®brand. Total sales generated by infomercials he has initiated or overseen now exceed $500 million. Kelvin Claney Chairman & CEO Richard Ransom President Joined ICTV in July 2008 as the Company's Controller, appointed Chief Financial Officer in December 2008 and appointed as President in September 2011. Over 8 years of experience in financial management roles at Traffic.Com, Hildebrandt International, and Grant Thornton. He is a graduate of Pennsylvania State University with a degree in Accounting, and received his MBA from Delaware Valley College in December, 2009. Joined ICTV in June of 2013 as the Company’s Director of Financial Reporting. Prior to joining the Company, Mr. LeBon had over nine years of experience with Deloitte & Touche LLP, as an Audit Manager primarily serving SEC registrants, and as a Controller with General Electric. Mr. LeBon is a graduate of Villanova University with a degree in accounting and is a Certified Public Accountant in Pennsylvania. Ryan LeBon CFO Responsible for managing ICTV’s televised home shopping operations in the U.S., and managing the Company’s International sales and distribution channels with over 35 countries. He assists the Company’s CEO in managing new product development. He has over 25 years of experience in television and film production, and has been a very successful presenter on the Home Shopping Network (“HSN”) in the U.S. His career also includes television and film management with Stephen J. Cannel Productions Inc, Lions Gate Entertainment, Carroll Street Studios, and Culver City Studios. At Stephen J. Cannel Productions, he was head of production services, duties included overseeing all physical facilities, purchasing, inventory control, product placement and merchandising. Kelly Willett Director of Sales Joined ICTV in March 2014. 25 years in Consumer Package Goods sales, with experience in the beauty and personal care sector. Mr. King’s specific experience includes Beiersdorf, Alberto Culver, L’Oreal/Naybelline/Garnier, Proctor & Gamble’s Prestige Division and Del Labs’ Cosmetics. Richard King VP Retail
6. Board Expertise in Corporate Management and Finance, Retailing and DRTV Stephen J. Jarvis Director 30 yearsDR marketing industry experience; formed Direct Response Advertising, Inc., generating and qualifying DR leads for co.’s dealing in luxury consumer items. Several successful products taken to the Aus. DR market; notably BetterBlocks™sold via DRTV and all major Aus. retailers. Co-founder and Pres. of Positive Response Vision, Inc., Manila; grew to leading DR marketing org. in SE Asia; marked and distrib. a vast range of products. Responsible for product sourcing and acquisition, inventory, finance control, design issues, and sales back-end programs. Produced infomercials privately; licensed them to Positive Response Vision, Inc. and other int’l infomercial co.’s. Recently established an outbound call center, Vision TV Philippines Inc, and produced 8 new shows for int’l distrib. Chartered accountant in Canada with over 40 years of experience as a senior officer at a variety of companies, both public and private, in the accounting and financial disciplines. Currently Corporate Secretary for a private investment company, and provides corporate secretarial services to a variety of companies, working closely with stock exchanges and security commissions within Canada. His experience includes the areas of mortgage underwriting and finance, point of sale, steel fabrication, secretarial services, and investments. He spent 15 years as President of Corsec Canada, Inc., providing corporate secretarial services to small cap public companies. William N. Kinnear CPA, CA, Director Presently with Great Valley Capital Advisors, assisting companies with corporate development and strategy. Mr. McDonald’s 40-year career spans several organizations from financing to direct response advertising to technology and media. His responsibilities as a Founder and Executive over the past 30 years include strategy vision, management, operational and sales. In particular, Mr. McDonald led National Media Corporation, a direct response marketing company, to $320 million in annual sales and a NYSE listing as a public company. . Don McDonald Director
7. Industry Highlights Branding through Direct Response Television
8. Global Sales and Distribution Channel Established in 35 Countries Internationally Direct to consumer via infomercial Direct to consumer online Live TV home shopping networks International sales through local distribution partners Successful products to be sold through retail
9. Business Model Highly Scalable to Support Growth People, Process, Technology Product flow thru network of relationships & tradeshows Create & develop infomercials Media management Direct to consumer via DRTV and online Build recurring revenue device and/or consumables and continuity programs Expand internationally Retail Customer support Outsourced Relationships
10. 2M+ units sold to-date One of the Top 10 Longest Running Infomercials Expanding domestic and international sales; recent success in Mexico Launched directly in Canada in Q1 2014 Expect to launch UK and Japan by end of 2014 Next-generation device and infomercial expected in Q4 2014 Retail by end of 2014 www.dermawand.com Our Flagship Product: DermaWand® DermaWand is an at-home, handheld RF beauty tool that reduces the appearance of fine lines and wrinkles and improves overall skin appearance
11. 13 separate skincare items Pre-face cleansers, moisturizers, hydrators New proprietary formulations in development – Dr. Angel Guerrero Higher quality Cost savings Consumable product packaged as a kit with DermaWand tool Recurring revenue from monthly auto-ship program Varying pricing and product options www.dermavital.com Complimentary Cosmetics: DermaVitál® DermaVitál products are specifically formulated to help consumers get the most benefit out of DermaWand's advanced radio frequency technology. They were created using leading edge skin care formulations and are made of the highest grade ingredients for professional grade results
12. ICTV has licensing agreement with BioActive Skin Technologies LLC Launched in 1st half 2014 Re-edited media launched May 2014; improved response results 100% continuity model www.elastinrp.com Expanding the Business: Elanstin-rp™ Elastin-rp™ is delivered using a unique body heat-activated system which enables the BioLastin Complex™ to penetrate quickly to help stimulate your skin's natural ability to replenish elastin and collagen
13. ICTV has licensing agreement with Ermis Labs, LLC, for exclusive worldwide rights to manufacture and distribute Further development and build-out of a continuity program SeaWhip Extract and 6% Benzoyl Peroxide Expansion of distribution channels www.coralactives.com Expanding the Business: Coral Actives Coral Actives is an acne treatment and skin cleansing solution product line
14. ICTV has exclusive rights worldwide to patented anti-aging and resurfacing skin care system Developed by AmbyLonghofer and Dean Rhoades Previously of Youthful Essense by GuthyRenker 31 person clinical study completed April 2014; statistically significant positive results Testimonials and infomercial production are ongoing Infomercial and product launch expected Q3 2014 Device razor/razor blade model Expanding the Business: Derma Brilliance Derma Brilliance offers easy-to-use at-home microdermabrasion systems for all skin types and concerns, as well as other products and accessories for total body care
15. ICTV currently has non-exclusive rights to market to customer base First ingestible product marketed by ICTV Currently, NatureBee is an up sell on the Elastin RP campaign and is sold to our DermaWand customers through catalogs and at customer service Formulating a strategy for expanding our marketing of NatureBee both on television and through internet marketing Potential for ICTV to run a US DRTV campaign in early 2015 www.trynaturebee.com Expanding the Business: NatureBee® NATUREBEE™ is a potentiated bee pollen supplement that boosts energy, provides nutritional support, and improves digestion
16. DermaWand success has opened many new doors New product pipeline is strongest in company history M&A opportunities continually being reviewed Celebrity branding & licensing Creative & development expertise Expanding the Business: Licensing or M&A Always seeking additional licensing or acquisition opportunities to expand product offerings in the health, wellness & beauty category
17. Product Portfolio Plan 2013 - 1st Half 2014 2nd Half – 1st Half 2015 2nd Half
18. Financial Performance From Turnaround Situation to Growth Opportunity 2011 = $3.1mm revenue & ($0.5mm) operating loss 2012 = $22.9mm revenue & ($0.5mm) operating loss 2013 = $41.0mm revenue & $1.7mm operating income
19. Annual Revenue Growth
20. Revenue Lags Customer Acquisition DermaWand US Infomercial Offer Free Trial offer 3 payment of $39.95 Revenue cannot be recognized until free trial period ends Approximately 1.3mm of sales on consignment not recognized as of 12/31/13
21. Quarterly Revenue
22. Annual Operating P/L
23. Expanding Product Portfolio
24. Data Analytics: The Proof is in the #’s Forecasted targeted media spend across 20+ vendors spanning different mediums in multiple languages Conversion % Customer acquisition costs MER = media efficiency ratio Cross-Sell % Average order value
25. Goal & Target Model in 2016-2017 ICTV Brands A family of products in the health, wellness & beauty area $100mm in total revenue 9% operating margins 5-10 products Recurring revenue business model Device – razor/razor blade Consumables Continuity programs
26. Peer Company Analysis Trading at 65% Discount to Peers
27. Recap Highlights Well Positioned Global sales and distribution channels set up in 35 countries internationally Management In-house talent and expert management team to build brands Product Pipeline Portfolio of unique products that have the potential for rapid growth Financials Healthy, under-leveraged balance sheet Share Structure Excellent capital structure, heavy inside ownership (37%)
28. Contact Information International Commercial Television, Inc. Richard Ransom President T: 484-598-2300 E:ransom@ictvonline.com Hayden IR Investor Relations T: 917-658-7878 E:hart@haydenir.com