-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BE672zpnCzUfvNfWwqf6ug8VX0rqpmJB2kvq6SizFJjtJ2mKrAerUC1feTrDWWv3 xiRsfg1yBHZymHEhNiR55w== 0000827056-03-000021.txt : 20030724 0000827056-03-000021.hdr.sgml : 20030724 20030716163814 ACCESSION NUMBER: 0000827056-03-000021 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030716 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20030716 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ZEVEX INTERNATIONAL INC CENTRAL INDEX KEY: 0000827056 STANDARD INDUSTRIAL CLASSIFICATION: ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845] IRS NUMBER: 870462807 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12965 FILM NUMBER: 03789715 BUSINESS ADDRESS: STREET 1: 4314 ZEVEX PARK LANE CITY: MURRAY STATE: UT ZIP: 84123 BUSINESS PHONE: 8012641001 MAIL ADDRESS: STREET 1: 4314 ZEVEX PARK LANE CITY: MURRAY STATE: UT ZIP: 84123 FORMER COMPANY: FORMER CONFORMED NAME: DOWNEY INDUSTRIES INC DATE OF NAME CHANGE: 19880811 8-K 1 f8k071603.txt ANNUAL SHAREHOLDER'S PRESENTATION SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OF 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 July 16, 2003 Date of report (Date of earliest event reported) ZEVEX INTERNATIONAL, INC. ------------------------- (Exact Name of Registrant as Specified in Its Charter) Delaware 001-12965 87-0462807 ----------------------- --------------- --------------- (State of Incorporation) (Commission (I.R.S.Employer File Number) Identification No.) 4314 Zevex Park Lane, Salt Lake City, Utah 84123 (Address of Principal Executive Offices) Issuer's Telephone Number, Including Area Code: (801) 264-1001 -------------- None (Former Name of Former Address, if Changed Since Last Report) Item 7. Financial Statements and Exhibits (c) Exhibits No. Description 99.1 Presentation materials to be used at the Annual Shareholder Meeting to be held July 17, 2003. Item 9. Regulation FD Disclosure The Chief Executive Officer of the Company will give a presentation to the shareholders of the Company at the Company's Annual Meeting to be held on July 17, 2003. A copy of the presentation materials to be used at the meeting, and which may be used from time to time thereafter, is included as Exhibit 99.1 hereto. Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. DATED, this 16th day of July, 2003. By: /s/ David J McNally -------------------------------------- David J McNally Chief Executive Officer EXHIBIT INDEX EXHIBIT NUMBER DESCRIPTION ------- ----------- 99.1 Presentation materials to be used at the Annual Shareholder Meeting to be held July 17, 2003. Exhibit 99.1 Slide 1 Text: Annual Meeting of Shareholders, July 17, 2003 Technology Transforming Life TM Photograph of: Father holding baby Slide 2 Text: Forward Looking Information The attached presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1993, as amended, and are subject to the Safe Harbor provisions created by such statutes. Such statements include statements about ZEVEX' plans, intentions and strategies, including ZEVEX' expectations about development of new products. Such statements are not guarantees of the future performance of ZEVEX. They are based on ZEVEX' current expectations, forecasts and assumptions resulting from information currently available to ZEVEX. These forward-looking statements involve risks and uncertainties that could cause actual outcomes and results to differ materially from the results and expectations described. With regard to the development of new products, ZEVEX may experience unexpected technical difficulties with designing or manufacturing new products or in producing such products that ultimately prove to be competitive in the marketplace. In addition to the foregoing, the economic, competitive, governmental, technological and other factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 2002, may cause actual results or events to differ materially from those described in the forward looking statements in the attached presentation. ZEVEX disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Slide 3 Text: Divisions Therapeutics Applied Technology Physical Evaluation Slide 4 Text: U.S. Market Sizes - Enteral Nutrition Delivery: $400 million (sources: Frost & Sullivan, Theta Corp., annual revenue) - Medical Contract Manufact.: >$1 billion (source: ZEVEX estimate of annual revenue) - Physical Evaluation: $500 million (source: ZEVEX estimate of total market opportunity) Slide 5 Text: Revenue Mix 2002 Graph showing revenue by division: Applied Technology - 38% Physical Evaluation - 14% Therapeutics - $48% Slide 6 Text: Portable EnteraLite Feeding Pump Photographs of: EnteraLite Feeding Pump Photograph of EnteraLite Feeding Pump in backpack Slide 7 Text: Disposables Photograph of: EnteraLite(R), EnteralEZ(R) & LifeGuard(TM) pump sets Slide 8 Text: Therapeutics Sales Organization - National sales manager - 8 employee territory managers - 3 independent manufacturer's representative groups - Marketing manager - National accounts manager - Inside sales manager & 2 inside sales representatives - 4 customer support/compliance specialists - 32 independent clinical coordinators for enteral support (Registered Dieticians) - U.S. and international distributors Slide 9 Text: Therapeutics Growth Drivers - Domestic EnteraLite sales grew at record 27% pace during 2002 - Contract awards from Premier and Innovatix (group purchasing organizations, over 4,000 members) - New international distribution agreements expected to produce $2 million in 2003 sales - Inside sales team created to grow stationary pump and disposables business - Launch of LifeGuard(TM) disposable sets under way Slide 10 Text: Physical Evaluation JTECH Medical, a ZEVEX company - Muscle strength - Range of motion Photographs of: JTech products JTech products in use by patient and health care provider Slide 11 Text: Physical Evaluation Sales Organization - VP of sales and marketing - 6 territory managers - 20 U.S. dealers & manufacturer's representatives - Marketing manager - 6 telemarketing & customer support specialists - Seminar coordinator - 7 international dealers - U.S. catalog distributors Slide 12 Text: Physical Evaluation Growth Drivers - Direct sales force expanded from 3 to 6 employees - Launched an independent dealer network during fourth quarter of 2002 - Inside sales team and international marketing efforts proving effective for generating sales Slide 13 Text: Applied Technology Photographs of: Ultrasonic Sensors Organ Perfusion System Optoelectronic Components Ultrasonic Handpieces for Soft Tissue Aspiration Surgical Systems Slide 14 Text: Applied Technology Sales Organization - Sales manager - Marketing manager - OEM programs manager - Customer service manager Slide 15 Text: Applied Technology Growth Drivers - Optoelectronic engineering team has successfully transferred designs to production for two "blue-chip" OEM customers - Two new ultrasonic sensor programs entering production mid-year - Engineering team is nearing completion of a mobile organ perfusion system and is completing development of two other systems products for new customers - Battelle relationship for business development Slide 16 Text: Battelle Charitable trust founded by Gordan Battelle in 1923 - Battelle annual revenues $2 billion - Managers four DOE facilities: (picture of facility) NREL (National Renewable Energy Laboratory) Pacific Northwest National Laboratory Brookhaven National Laboratory ornl (Oak Ridge National Laboratory) - Battelle Health Care Products - 170 Biomedical, engineering & product development experts - Experience with Class I, II, and III medical devices Photographs of: Battelle facility Founder Gordon Battelle Slide 17 Text: Headquarters Photograph of: ZEVEX headquarters (exterior) Slide 18 Text: Management Team and Employees - Dave McNally: CEO, Chairman and co-founder MBA, BSME, 20 yrs. Industry experience - Phill McStotts: CFO and co-founder CPA, MBA, BS Accounting, 23 yrs. Financial experience - Tim Govin: V.P. of Manufacturing BSEE, 25 yrs. Manufacturing experience - Fred Quandee: V.P. of Engineering BSME (completing MBA, MS Biomed. Eng.), 22 yrs. R&D exp. - 155 employees Slide 19 Text: Manufacturing - ISO9001 - FDA-Registered - EN46001 Photographs of: Zevex manufacturing operation (interior) Employee at computer Slide 20 Text: Operational Focus - Lean manufacturing for greater efficiency and improved margins - Cross-utilization of manufacturing resources for all product lines - Quality and productivity metrics for continuous improvement Slide 21 Text: Research & Development - Experienced technical teams - State-of-the-art CAD tools - Battelle R&D relationship - Technical Advisory Board Photograph of: Product schematic Slide 22 Text: R&D Initiatives - New product launches planned for Therapeutics and Physical Evaluation divisions - Development of proprietary components for OEM product line - 30 U.S. and international patents issued - 22 patents pending Slide 23 Text: Total Revenue 9% first quarter growth in 2003 Graph showing total revenue:
1Q '02 2Q '02 3Q '02 4Q '02 1Q '03 ---------- -------- -------- -------- ---------- Applied Tech. $2,577,940 $1,997,000 $2,471,000 $2,675,000 $2,538,000 Therapeutics 2,635,534 2,926,000 3,191,000 3,382,000 3,349,000 Physical Eval. 882,178 881,000 863,000 1,024,000 761,000
Slide 24 Text: Total Debt Graph showing total debt: Year-end 2000 Year-end 2001 Year-end 2002 Mar. 31, 2003 ------------- ------------- ------------- ------------- $17,600,000 $12,600,000 $7,600,175 $7,091,384 Slide 25 Text: Inventories Graph showing inventory levels: Year-end 2000 Year-end 2001 Year-end 2002 Mar. 31, 2003 ------------- ------------- ------------- ------------- $9,700,000 $7,300,000 $6,348,856 $6,218,880 Slide 26 Text: Accounts Receivable Graph showing accounts receivables: Year-end 2000 Year-end 2001 Year-end 2002 Mar. 31, 2003 ------------- ------------- ------------- ------------- $7,500,000 $5,700,000 $4,522,785 $4,738,524 Slide 27 Text: Days Sales in A/R Graph showing days sales in accounts receivables: Year-end 2000 Year-end 2001 Year-end 2002 Mar. 31, 2003 ------------- ------------- ------------- ------------- 91.5 74.3 64.7 58.5 Slide 28 Text: Cash Flow From Operations Graph showing cash flow from operations: Year 2000 Year 2001 Year 2002 Q1 2003 --------- --------- --------- ------- ($3,000,000) $4,600,000 $4,031,917 $266,424 Slide 29 Text: Balance Sheet Highlights 3/31/03 (millions) Cash, marketable sec. $- Working capital $6.4 Total assets $28.5 Long term debt $1.5 Stockholders' equity $21.4 Slide 30 Text: Progress Achieved 2001 to 2002 - Total debt reduced by $5 million (40%) - Inventory reduced by $1 million (13%) - Accounts receivable reduced by $1 million (21%) - Days sales in A/R reduced from 75 to 65 (13%) - Cash flows from ops exceed $4 million, both years - Gross profit increased by 2%, to 39% in 2002 - S, G & A expenses reduced by 8% - Net income of $214,303 in 2002 vs. loss in 2001 Slide 31 Text: Changes for 2003 - Changes in management team include experienced V.P. of Ops. and VP of R&D - Changes to board; 5 outside & 2 inside directors - Sales growth demonstrated in first quarter - Lean manufacturing initiative - New products from R&D - New customers - New contracts Slide 32 Text: Growth Strategy - Grow contract manufacturing and proprietary product revenues - Leverage Applied Technology for OEM and proprietary product development - Invest in sales resources and distribution partners for proprietary products - Focus on quality partners to expand contract manufacturing business Slide 33 Second quarter 2003 earnings announcement planned for June 30th Technology Transforming Life TM Photograph of: Father holding baby -----END PRIVACY-ENHANCED MESSAGE-----