International Commercial Television Inc. Investor Presentation June 2014. OTC MARKETS: ICTL I www.ictvonline.com. Safe Harbor Statement.
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Investor PresentationJune 2014
OTC MARKETS: ICTL I www.ictvonline.com
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.
Average Daily Volume:
Operating Income 2013:
EPS 2013:Market Overview
Direct Response Marketing of Consumer Products
Health, Wellness & Beauty
Distribution in 35+ Countries
OTC Markets: ICTL
$0.22 - $1.08
$41.0mm (+79% growth)
Rebranding to “ICTV Brands”
Driving Growth Through Unique Brands
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.
Chairman & CEO
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.
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.
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.
Expertise in Corporate Management and Finance, Retailing and DRTV
Stephen J. Jarvis
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. .
Branding through Direct Response Television
Established in 35 Countries Internationally
Highly Scalable to Support Growth
People, Process, Technology
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.comOur 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
Pre-face cleansers, moisturizers, hydrators
New proprietary formulations in development – Dr. Angel Guerrero
Consumable product packaged as a kit with DermaWand tool
Recurring revenue from monthly auto-ship program
Varying pricing and product options
www.dermavital.comComplimentary 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
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.comExpanding 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
ICTV has licensing agreement with Technologies LLCErmis 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.comExpanding the Business: Coral Actives
Coral Actives is an acne treatment and skin cleansing solution product line
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 modelExpanding 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
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.comExpanding the Business: NatureBee®
NATUREBEE™ is a potentiated bee pollen supplement that boosts energy, provides nutritional support, and improves digestion
DermaWand customer base 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 expertiseExpanding the Business: Licensing or M&A
Always seeking additional licensing or acquisition opportunities to expand product offerings in the health, wellness & beauty category
2013 - 1st Half 2014 2nd Half – 1st Half 2015 2nd Half
From Turnaround Situation to Growth Opportunity
A family of products in the health, wellness & beauty area
$100mm in total revenue
9% operating margins
Recurring revenue business model
Device – razor/razor blade
Trading at 65% Discount to Peers
Global sales and distribution channels set up in 35 countries internationally
In-house talent and expert management team to build brands
Portfolio of unique products that have the potential for rapid growth
Healthy, under-leveraged balance sheet
Excellent capital structure, heavy inside ownership (37%)