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NASDAQ: AEY Company Presentation

NASDAQ: AEY Company Presentation. Safe Harbor Statement.

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NASDAQ: AEY Company Presentation

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  1. NASDAQ: AEY Company Presentation

  2. 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.

  3. At a Glance

  4. Introduction to ADDvantage

  5. 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

  6. 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 1985 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 TechnologiesGroup 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

  7. A National Presence Tulsat-Nebraska Deshler, NE ComTechServices Sedalia, MO NCS Industries Warminster, PA Tulsat-Atlanta Suwanee, GA ADDvantage /Tulsat Broken Arrow, OK Tulsat-Texas New Boston, TX Broadband Remarketing International Broken Arrow, OK

  8. Corporate Organization ADDvantage Dave Chymiak Chairman ADDvantage Ken Chymiak CEO ADDvantage Scott Francis CFO NCS Industries Fred Baker VP/GM Comtech Services Nick Ferolito President/GM BRI David Bennett Director of Ops Tulsat Corp. Dave Chymiak President Finance and Accounting Information Technology Human Resources Tulsat-Atlanta Russ McGarr (Service) Bruce Prescott (Sales) Tulsat-Texas John Lopez (Service) Tulsat-Nebraska John Denner (Service) John Noojin (Sales)

  9. Deep Industry Relationships Service Providers Distributors OEM Partners

  10. 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

  11. What Makes ADDvantage Different?

  12. 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

  13. 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

  14. Products and Services

  15. 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

  16. Customers

  17. Customers • 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

  18. OEM Partners

  19. Key OEM Relationships

  20. Supporting OEM Partners

  21. Financials

  22. Income Statement Summary

  23. Balance Sheet Summary

  24. Summary

  25. 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

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