2. Safe Harbor Statement
Management’s prepared remarks contain forward-looking
statements which are subject to risks and uncertainties and
management may make additional forward-looking statements in
response to your questions. Therefore, the company claims the
protection of the Safe Harbor for forward-looking statements that
is contained in the Private Securities Litigation Reform Act of 1995.
Actual results may differ from those discussed today, and therefore
we refer you to a more detailed discussion of the risks and
uncertainties in the company’s filings with the Securities and
Exchange Commission.
3. The Company
! Technology leader in the correctional facilities
market.
! 700% revenue growth from 2009 to 2013.
! Provides a suite of cloud based services
enabling smaller facilities access to technology
traditionally only available to large facilities.
! Providing secure communications and
information technology since 1973.
5. Correctional Technology Market Overview
! $5.0B+ Market total in Federal, State, and
County
! Additional revenue from other non-
communication based services
! 2.3 Million Inmates
! Strong recurring revenue base
! Prison population steadily growing at 3%
annually, capturing market share.
! Communications revenues are split with
prison, alleviating pressure on state and
county budgets.
6. Innovisit Acquisition
! Industry Leader in Video Visitation Technology
" Integrated with Lattice ICON Platform in 2013
" Implemented first installation in Q1 2013
! Acquired Company Q4 2014
" Adds 15 new states
" Currently serving 90 correctional facilities
" Will add $1.5 - $2.0M additional revenue in2014
7. Competitive Landscape
! Small Regional Service Providers
" Solid regional relationships with
smaller facilities
" Outdated Technology generating
lower revenues per inmate
! Large National Service Providers
" Focusing on larger facilities
" Multiple technology platforms through
acquisition making service
inconsistent to smaller facilities.
" Losing smaller facilities as customers
8. Business Model – US Market
! Exclusive Rights to Facility
" Revenue sharing with Facility
" Provides extra revenue for strapped
state budgets
" Range from 20-60%
! Up-sell Leading Features & Products
Provides customer stickiness
" Ability for family members to credit
inmate’s call account
" Video Visitation
" Kiosk for cash management and value
added services
" Integrated jail management software
solution (difficult to replace)
9. Sales and Marketing
! Direct Sales to Facilities
" Local sales presence
" Expand upon established local
concentration
" Referrals important for winning county
customers
! Indirect Wholesale & Technology License
Sales
" Utilized by channel partners for larger
facilities and State bids
" For out of direct sales region
" Builds Lattice footprint and brand
recognition
10. Foreign Market Overview
! Competitive Landscape
" Incumbent Telcos primary competition
" Legacy payphone model (collect
calling)
" New technology yet to be introduced
! Lattice has Unique Technology Advantage
" Lattice technology provides cost
reductions
" Lattice Model provides enhanced
revenue streams
" Lattice technology provides enhanced
security and investigative tools
11. Foreign Market Overview
! Business Model
" Technology sales/license revenue
" Transaction revenue
" Services revenue
! Current Foreign Sales Pipeline
Asia
Canada
Israel
Mexico
U.K.
India
Belgium
Caribbean
12. Foreign Market Overview
! Canadian Market
" Awarded four installations
" All 4 being implemented in 2013
" Partnered with Telus Canada for
larger provinces
" Smaller facilities partnering with
Wymactel
! U.K. Market
" First site operational in Gibraltar
(2011)
" Successful trial completed with
Sodexo Justice Services
" 90,000+ inmate potential in UK
13. Foreign Market Opportunity
! Retained Communication Media
Advisors to Accelerate International
Expansion:
" Identify most attractive markets for
expansion.
" Identify potential partners and
licensees that best enable Lattice to
successfully win new business in
these markets.
! Phase I of the project will be
completed in Q2 of this year.
14. Device Agnostic
SECURE COMMUNICATIONS CLOUD
COMMISSARY
ORDERING
SCHEDULING
SERVICES
LEGAL
COUNSEL
INMATE
E
DEVICE
EMAIL
INTEGRATION
SERVICES
MUSIC
DOWNLOAD
EDUCATION
INVESTIGATION
VIDEO
VISITATION
SOCIAL
MEDIA
DEDICATED
INMATE
STATION
TEXT
MESSAGING
VOICE
MAIL
HOME
PC
SECURE
FIREWALL
15. Secure
Secure
Communica-on
Layer
ICON
will
consist
of
five
major
components:
• Products
and
Services
management
• Customer
Informa-on
Database
• Payment
Processing
• Accoun-ng/Billing
• Customer
Care
ICON
Core
All
communica-on
between
payments
and
services
will
u-lize
ICON’s
Secure
Communica-on
Layer.
Outside
development
firms
will
have
standard
interfaces
to
u-lize
Integrated
Correc-ons
Opera-ons
Networks
(ICON)
Communication
ICON
Application
Management
ICON
will
provide
centralized
database
management
and
payment
capability.
U-lizing
the
a
central
core
engine
will
allow
mul-ple
soMware
applica-ons
to
reuse
soMware
processes
saving
development
-me
and
producing
far
more
efficient
business
prac-ces.
Jail Management
System
16. Secure
Products
and
Services
managed
and
accounted
for
by
ICON
Communication
PIN Debit and PPC
Phone Accounts
ICON
Application
Management
Jail Management
System
17. Secure
The ICON JMS includes the
following features:
• Reporting
• Scheduling
• Multi-Facility/Multi Agency
Integration
• Special Diet/Meal Count
• Workflow
• Biometrics
• Booking
• Trust Accounting/General Ledger
• Medical Records
• Incident Reporting
• NCIC Background screening
Communication
ICON
Application
Management
The
ICON
Jail
Management
System
(JMS)
is
a
key
component
to
the
ICON
core.
The
JMS
stores
and
manages
correc-onal
facility
processes,
inmate
booking,
inmate
informa-on,
and
trust
accoun-ng
Jail Management
System
ICON
Jail
Management
System
18. Investment Highlights
! Rapid expansion of the Company’s
service and technology sales to drive
overall growth and margin improvement.
! Lattice offers industry leading proprietary
technology to traditionally underserved
area of the market—small and midsized
correctional facilities.
! International expansion with key
partnerships growing sales and margin
growth while increasing the Company’s
footprint.
! 700% revenue growth over the last 4
years. Early stages of growth potential.
