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Nasdaq aey company presentation


Company Presentation

Nasdaq aey company presentation

Safe Harbor Statement

This presentation may contain forward-looking statements. All statements other than statements of historical facts, which address activities, events or developments that the Company expects or anticipates will or may occur in the future, are forward-looking statements. These statements are subject to risks and uncertainties, which could cause actual results and developments to differ materially from these statements.

A complete discussion of these risks and uncertainties is contained in the Company’s reports and documents filed from time to time with the Securities and Exchange Commission.

Nasdaq aey company presentation

Introduction to ADDvantage

Nasdaq aey company presentation

Who We Are

  • One of the largest sellers and service providers of new and refurbished CATV electronics equipment in the U.S. market

  • Broad network of repair centers providing non-warranty repair services

  • Skilled team of employees with expertise in CATV networks

  • Strong subsidiary brands with long histories of successful operations

  • Trusted supplier to more than 1,300 customers

  • Alliances with leading OEMs including Cisco, Motorola and Fujitsu Frontech

  • Extensive inventory and a reputation as the CATV industry’s “On Hand, On Demand” equipment supplier

Nasdaq aey company presentation

Our History

Nov 2003

ADDvantage Technologies began trading on AMEX.

Ticker symbol AEY.

March 2001

ADDvantage Technologies acquired NCS Industries

November 1999

Lee CATV, a wholly owned subsidiary of ADDvantage Media, merged withDiamond W Investments


TULSATacquiredby David andKen Chymiak

June 2006

ADDvantage Technologies acquires the assets of Broadband Remarketing International

November 2007

ADDvantage redeems outstanding shares of preferred stock

Sept 2004

ADDvantageredeems outstanding shares of convertible preferred stock

September 2007

ADDvantage Technologies begins trading on the NASDAQ

August 2005

ADDvantage Technologies acquired Jones Broadband International

September 1999

Shareholders of TULSAT assumed control of ADDvantage Media through a reverse merger

December 1999

ADDvantageMedia changedname toADDvantage


October 2006

ADDvantage Technologies acquired assets of Broadband Digital Repairs

May 2001

ADDvantage Technologies acquired Fero-Midwest (dba ComTech Services)

May 2010

NCS named U.S. distributor for

Fujitsu Frontech

Nasdaq aey company presentation

A National Presence


Deshler, NE


Sedalia, MO

NCS Industries

Warminster, PA


Suwanee, GA

ADDvantage /Tulsat

Broken Arrow, OK


New Boston, TX

Broadband Remarketing


Broken Arrow, OK

Nasdaq aey company presentation

Corporate Organization


Dave Chymiak



Ken Chymiak



Scott Francis


NCS Industries

Fred Baker


Comtech Services

Nick Ferolito



David Bennett

Director of Ops

Tulsat Corp.

Dave Chymiak


Finance and Accounting

Information Technology

Human Resources


Russ McGarr (Service)

Bruce Prescott (Sales)


John Lopez (Service)


John Denner (Service)

John Noojin (Sales)

Nasdaq aey company presentation

Deep Industry Relationships

Service Providers


OEM Partners

Nasdaq aey company presentation

Current Market Trends

Video and RGU Trends (Millions)(1)

  • Cable service providers are the leading “triple play” service providers in the U.S.

  • While down from historical highs, cable industry capital expenditures in the U.S. still remain strong

  • Continued investment needed to support HD and 3D TV as well as other video and data providers

  • Recovering U.S. housing market should lead to an additional boost in capital spending

  • Underpenetrated Latin American markets represent a growth opportunity

Capital Expenditures (Billions)(1)

Housing Starts (Thousands)(2)

National Cable Telephone Association

U.S. Census bureau

Nasdaq aey company presentation

What Makes ADDvantage Different?

Nasdaq aey company presentation

Investment Highlights

  • Differentiated business model positions ADDvantage as a key component of the CATV value chain

  • Deep industry relationships with service providers, OEM partners and other distributors

  • Well positioned to capitalize on future growth opportunities

  • Consistently strong cash flow generation and high margins

  • Strong management team and highly skilled employee base

Nasdaq aey company presentation

Opportunities for Long-Term Growth

Pursuit of New Opportunities

Enhanced Operational Efficiencies

Long-Term Cash Flow Growth

Expansion of Existing Initiatives

  • Inventory efficiencies

  • Fully automated inventory management system

  • Review sales strategy

  • Improved CATV capex spending environment

  • Expansion in Latin America

  • Additional value-added services for current OEM partners

  • Relationships with new OEM partners

  • Enhanced broadcast product line

  • Additional services

  • Expansion into the Telco video market

  • Selected acquisitions

Nasdaq aey company presentation

Product and Service Overview

FY 2010 Revenue by Business Line

  • Nearly $32 million in new product sales represented approximately two thirds of total FY 2010 revenue

  • Refurbished product sales of $9.5 million accounted for an additional 20% of FY 2010 revenue

  • The vast majority of remaining revenue ($5.7 million) came from ADDvantage’s repair service operations

Nasdaq aey company presentation


  • Top MSOs – Time Warner, Cox, Comcast, Charter

  • Smaller, mid-market cable companies and telcos

  • Distributors/brokers

  • International market, primarily Latin America, either directly or indirectly through brokers

  • Private cable systems – hospitals, universities, hotels

Nasdaq aey company presentation

ADDvantage Investment Thesis

  • ADDvantage represents a strong value proposition relative to its recent trading range

  • The Company has developed a unique and valuable position in the industry with a broad set of customer and OEM partner relationships

  • Numerous opportunities exist to leverage this position and increase cash flow growth including:

    • Improved cablecapex spending environment

    • Expansion in Latin America

    • Addition of new OEM partners and customer verticals

    • Expansion into the broadcast industry

    • Value-added services for OEM partners

    • Additional repair services

    • Continued monetization of existing inventory

  • These opportunities represent meaningful potential growth