Making the world a safer place to travel QUIXOTE CORPORATION

Transcription

1 Making the world a safer place to travel QUIXOTE CORPORATION

2 MISSION ENHANCE THE SAFETY, EFFICIENCY & SECURITY OF TRANSPORTATION SYSTEMS WORLD WIDE. BUSINESS SEGMENTS PROTECT & DIRECT: Provide products that mitigate a crash by reducing damage to life and property and provide products that give visual delineation to direct traffic. (Approx. 60% of sales) INFORM: Provide traffic information to drivers and highway authorities to improve traffic flow and safety. (Approx. 15% of sales) INTERSECTION CONTROL: Provide products and systems that control vehicles and pedestrians to improve traffic flow. (Approx. 25% of sales)

3 HISTORY Founded in 1969 From water filled bumpers to creating the market for crash cushions to protect motorists Acquired additional product lines to include products which Direct & Inform and control traffic DIRECT SAFE-HIT Corporation 1993 PROTECT Roadway Safety Services, Inc INFORM Highway Information Systems, Inc INFORM National Signal, Inc INFORM Surface Systems, Inc INT. CONTROL U.S. Traffic Corporation 2003 INT. CONTROL Peek Traffic Corporation 2003

4 OUR PRODUCTS

5 PROTECT & DIRECT PRODUCT SEGMENT Complete line of crash cushion products meeting the newest government safety standards Stopgate crash worthy security and Rail Road Crossing gates Freeze Free Anti-icing Systems Flexible Post Delineators

6 PROTECT & DIRECT PRODUCT SEGMENT Protecting QuadGuard HS Freeze-Free React 350 crash cushion SST Safe Stop TMA Quest

7 PROTECT & DIRECT PRODUCT SEGMENT Directing Products that effectively channel the flow of traffic to improve safety.

8 INFORM PRODUCT SEGMENT Leading innovator and manufacturer of electronic wireless measuring and sensing devices. Count/Time of day Speed Classify by size of vehicle Hi Star Groundhog

9 INFORM PRODUCT SEGMENT Leading manufacturer of Highway Advisory Radio (HAR) Systems Mobile Work Zone Systems Permanent Installations Emergency communications (Fire, Hurricane,Etc.)

10 INFORM PRODUCT SEGMENT Leading provider of software and equipment to detect pavement temperature and weather information Provider of forecasting service contracts to airports and DOT s

11 INTERSECTION CONTROL SEGMENT Provider of traffic signals and intelligent intersection control systems Extends Quixote s presence into intersection control and municipal markets Power Back UPS

12 INTERSECTION CONTROL SEGMENT Provider of camera monitor/control system Provider of toll verification subsystems Uni-Track Video SmartToll

13 RESTRUCTURING INITIATIVE The companies restructuring efforts are essentially completed and will have the following effect on our company.. PROTECT & DIRECT No change in business structure INFORM SEGMENT Sold meteorological forecasting business to concentrate on equipment and systems. Equivalent sales effect less than $3 million annualized; profit about $300K Doubling investment in international sales effort.

14 RESTRUCTURING INITIATIVE INTERSECTION CONTROL Product lines sold or discontinued, tunnel lighting, backlit street signs, electronic variable message signs, red light enforcement business, eliminated about $16 million of annualized sales. Overhead reduction annualized at $6 million a year. Closed two plants. One fully disposed of and the other is partially subleased. Remaining products to be provided using Peek model of Tag & Bag with all metal enclosures and electronics outsourced. Second half of this FY 2007 is expected to show profit for restructured business.

15 COMPANY STRATEGY Focus on strengths and leadership position within the expanding domestic and international transportation safety markets Grow sales and earnings an average of 15% annually over the long term Acquire businesses within the transportation safety market to improve safety or improve congestion

16 GROWTH STRATEGIES

17 GROWTH PROTECT AND DIRECT (10%-15% GROWTH) With high market share and a captive parts business increased growth will come from: New highway bill up 31% (Federal matching funds) International sales (up 14% YTD) Captive parts business generates $15 million annually New products like: Freeze Free systems Stop Gates QUEST Crash Cushion (International Entry Model) Electronic Retractable post/controls (RETRACTOR ) Tougher future test specs from FHWA Performance upgrades

18 GROWTH INFORM (15% to 20% GROWTH) New highway bill focuses on safety and congestion mitigation Prior bills mostly new construction HAR s for evacuation plans Traffic monitoring combined with weather towers Custom system solutions for customer safety problems XM Radio real time parking initiative Emerging needs internationally to improve traffic flow

19 GROWTH INTERSECTION CONTROL (10% to 15% GROWTH) Open road tolling sensors/counters Trend to LED Traffic signals and battery back up (Powerback ) Trend to solid state traffic controllers with camera input/monitoring Software to automate or aid in command center traffic decision

20 TEA-21 HIGHWAY REAUTHORIZATION / GROWTH DRIVER Billions of dollars $45.0 $40.0 $35.0 $30.0 $25.0 $ TEA SAFETEA-LU $15.0 $ '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 Source: U.S. DOT

21 SAFETEA LEGISLATION New 6-year highway bill, SAFETEA-LU, is an increase and safety will be the number one priority Funding levels provided at $286.4 billion or an increase of 31% Increased focus on congestion mitigation Evacuation plans / and procedures will be required

22 GENERAL FINANCIAL INFORMATION June 30 fiscal year end Seasonal business June quarter we generally see 30% of total revenues and 50% of total profits for the year Despite seasonality Quixote has historically been profitable each quarter

23 NET SALES YEARS ENDED JUNE 30 (IN MILLIONS) $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 $45.0 $56.0 $45.0 $0.0 $56.0 $0.0 $72.0 $65.8 $6.1 $83.8 $73.8 $10.0 Combined Net Sales $150.3 $146.4 $161.1 $93.6 $3.7 $78.5 $11.4 $89.7 $5.0 $67.2 $17.5 $114.3 $13.0 $77.2 $24.1 $55.8 $73.3 $21.2 $51.6 $73.6 $21.2 $56.2 $80.8 $ INFORM PROTECT & DIRECT INTERSECTION CONTROL Compound Annual Growth Rate of 15%

24 EARNINGS PER SHARE From Continuing Operations YEARS ENDED JUNE 30 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 $1.35 $1.17 $1.10 $0.92 $0.76 $0.73 $0.49 $0.36 $0.21 -$(0.07) * * * Excludes non-cash asset impairment charges and restructuring costs

25 INCOME STATEMENT YEAR ENDED JUNE 30 (IN THOUSANDS, EXCEPT PER SHARE DATA ) 06/30/06 06/30/05 Revenues $161,134 $146,353 Gross Profit 48,039 46, % 31.8% Operating Profit 8,221* 2,167 Net Income (Loss) 1,963 * (650) Earnings (Loss) Per Share $ 0.21* $ (0.07) Weighted Average Shares Outstanding 8,850 8,800 * Excludes non-cash asset impairment charges and restructuring costs

26 SEGMENT INFORMATION YEAR ENDED JUNE 30 (IN THOUSANDS) 06/30/06 06/30/05 % PROTECT & DIRECT Sales $80,806 $73,575 10% Operating Profit 15,539 14,859 INFORM Sales $24,134 $21,163 14% Operating Profit 3,403 1,151 INTERSECTION CONTROL Sales $56,194 $51,615 9% Operating Loss (3,211)* (5,723) * Excludes non-cash asset impairment charges and restructuring costs

27 INCOME STATEMENT QUARTERS ENDED SEPTEMBER 30 (IN THOUSANDS, EXCEPT PER SHARE DATA ) 09/30/06 09/30/05 Revenues $34,161 $39,391 Gross Profit 11,649* 10, %* 27.8% Operating Profit 790* 1,627 Net Income (Loss) (182)* 276 Earnings (Loss) Per Share $ (0.02)* $ 0.03 Weighted Average Shares Outstanding 8,902 8,910 * Excludes non-cash inventory write-down and restructuring costs

28 SEGMENT INFORMATION QUARTERS ENDED SEPTEMBER 30 (IN THOUSANDS) 09/30/06 09/30/05 % PROTECT & DIRECT Sales $18,676 $17,820 Operating Profit 3,291 2,894 14% INFORM Sales $6,096 $6,432 Operating Profit % INTERSECTION CONTROL Sales $9,389 $15,139 Operating Loss (1,498)* (183) * Excludes non-cash inventory write-down and restructuring costs

29 INTERNATIONAL SALES YEARS ENDED JUNE 30 (IN MILLIONS) $13.5 $19.1 $14.2 $ % INCREASE $9.8 $9.5 $8.6 $6.3 $ Compound Annual Growth Rate of 15%

30 BALANCE SHEET (IN THOUSANDS) 06/30/06 09/30/06 Assets Cash $869 $920 Accounts Receivable 36,481 29,121 Inventories 25,465 23,628 Other Current Assets 5,014 9,427 Total Current Assets 67,829 63,096 Property, Plant and Equipment 19,535 18,138 Other Assets 37,839 37,384 Total Assets $125,203 $118,618 Liabilities/Shareholders Equity Current Liabilities $ 24,048 $ 20,860 Long-Term Debt 51,122 53,359 Other Liabilities 1,087 1,081 Shareholders Equity 48,946 43,318 Total Liabilities/Shareholders Equity $ 125,203 $118,618

31 OTHER FINANCIAL INFORMATION YEARS ENDED JUNE 30 (DOLLARS IN MILLIONS) Estimated Capital expenditures $ 3.0 $ 3.0 Depreciation and amortization Interest expense Effective income tax rate 35% 38%

32 CASH DIVIDENDS PER COMMON SHARE $0.40 $0.37 $0.35 $0.33 $0.30 $0.28 $0.30 $0.25 $0.20 $0.20 $0.22 $0.25 $

33 FISCAL 2007 OUTLOOK New Highway Bill was signed in August funding provided at $286.4 billion - focus on safety and congestion mitigation links well with Quixote s focus State and municipal highway spending is increasing with improving economy. Management is finalizing restructuring initiatives to improve performance in the intersection control segment.

34 PRO-FORMA RECONCILIATION YEARS ENDED JUNE 30 (IN THOUSANDS, EXCEPT PER SHARE DATA ) 6/30/06 6/30/05 6/30/04 Operating profit (loss) as reported (10,928) 2,167 (25,602) Restructuring costs 5,775 1 Asset impairment charge 13, ,600 2 Operating profit as adjusted 8,221 2,167 6,998 Net earnings (loss) as reported (10,102) (650) (17,027) Restructuring costs 3,342 Asset impairment charge 8,723 21,266 Net earnings (loss) as adjusted 1,963 (650) 4,239 Diluted loss per share as reported $ (1.14) $ (0.07) $ (1.99) Restructuring costs 0.37 Asset impairment charge Diluted earnings (loss) per share as adjusted $ 0.21 $ (0.07) $ Recorded in the Intersection Control segment Includes $22,735 recorded in the Intersection Control segment and $9,865 recorded in the 2 Inform segment

35 PRO-FORMA RECONCILIATION QUARTERS ENDED SEPTEMBER 30 (IN THOUSANDS, EXCEPT PER SHARE DATA ) 9/30/06 9/30/05 Operating profit (loss) as reported (8,425) 1,627 Restructuring costs 5,595 1 Inventory write-down charge 3,620 1 Operating profit as adjusted 790 1,627 Net earnings (loss) as reported (5,895) 276 Restructuring costs 3,469 Inventory write-down charge 2,244 Net earnings (loss) as adjusted (182) 276 Diluted loss per share as reported $ (0.66) $ 0.03 Restructuring costs 0.39 Inventory write-down charge 0.25 Diluted earnings (loss) per share as adjusted $ (0.02) $ Recorded in the Intersection Control segment

36 Making the world a safer place to travel QUIXOTE CORPORATION