NYSE AMERICAN: CTEK
CYNERGISTEK
I N V E S T O R P R E S E N TAT I O N
CYNERGISTEK I N V E S T O R P R E S E N TAT I O N NYSE AMERICAN: - - PowerPoint PPT Presentation
CYNERGISTEK I N V E S T O R P R E S E N TAT I O N NYSE AMERICAN: CTEK SAFE HARBOR STATEMENTS This presentation contains, and our officers and representatives may from time to time make, forward-looking statements within the meaning of the
NYSE AMERICAN: CTEK
I N V E S T O R P R E S E N TAT I O N
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This presentation contains, and our officers and representatives may from time to time make, “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements we make (herein or otherwise) regarding the size of the potential market for our services; the number of potential customers/clients for our services; plans and strategies of CynergisTek and its subsidiaries for future growth and performance; market acceptance of our business model; our ability to integrate acquisitions and merged companies; and timelines relating to growth, milestones, and strategic focus. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on management’s current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many
should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the risk factors discussed throughout Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and in Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2017; and throughout Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Quarterly Reports on Form 10-Q for the quarters ending March, June and September 31. Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. We expressly disclaim any obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, or otherwise.
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Pioneer and leader in healthcare cybersecurity Innovative service
in the industry Loyal national customer base with large upsell
Capitalizing on strong cybersecurity market growth
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#1 CYBERSECURITY AND INFORMATION ASSURANCE COMPANY IN HEALTHCARE
2018 Most Comprehensive Cybersecurity Services
TOP KLAS PERFORMER 3RD STRAIGHT YEAR
STRONG RELATIONSHIPS & TRACK RECORD THOUGHT LEADERS WELL-KNOWN INDUSTRY PLAYER TRUSTED ADVISOR MARKET DRIVEN TAILORED SOLUTIONS
CynergisTek has been recognized by KLAS in the 2016 and 2018 Cybersecurity report as a top performing firm in healthcare cybersecurity. CynergisTek won the 2017 Best in KLAS Award for Cyber Security Advisory Services
KLAS
Cybersecurity 2018Top Performer
KLAS
HIT Advisory Services 2018Top Performer
KLAS
Technical Services 2018Top Performer
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RELATED COMPANIES HEALTHCARE SPECIALIZED KLAS OVERALL SCORE CYBERSECURITY SERVICES CLASSIFICATION CynergisTek ✓ 92.6 Comprehensive Deloitte X 79.8 Comprehensive FireEye X 89.5 Comprehensive Fortified Health Security ✓ 85.7 Comprehensive Optiv X 87.8 Comprehensive Coalfire X 85.0 Broad PWC X 89.2 Broad EY X 91.1 Broad Clearwater Compliance ✓ 95.0 Advisory Focused
*All information from KLAS Cybersecurity Services 2018 Report - June 2018
To be that trusted partner that enables our healthcare clients to build the cybersecurity and information assurance programs they need to protect and support patient safety and care operations by delivering exceptional service, expertise and knowledge.
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GLOBAL HEALTHCARE CYBERSECURITY SPENDING EXPECTED TO EXCEED ~$65B OVER NEXT 5 YEARS
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Ransomware Internal and External Threats Privacy Threats Phishing Attempts Social Engineering IoT Threats
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THE SERVICES WE PROVIDE
CAPP
OPTIONAL SERVICES CynergisTek also offers optional services that can be customized to meet a compliance program’s unique needs. ANNUAL ASSESSMENT An annual extensive review to identify security gaps through the combination of the following:
INTERNAL & EXTERNAL TESTING CynergisTek will conduct regular internal and external testing to uncover potential threats.
CAPP COMMUNITY CynergisTek Advisory Service addresses questions, concerns, and advice covering technology, program development and maintenance, and regulatory compliance matters. PERIODIC EXECUTIVE REVIEWS CynergisTek’s executive team leads workshops that are designed to:
changes and security threats
81% OF REVENUE COMES FROM MANAGED SERVICES WHICH INCLUDE CAPP PROGRAMS
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MAKE THE MOST OF YOUR PRIVACY MONITORING PROGRAM
THE SERVICES WE PROVIDE
PATIENT PRIVACY MONITORING AS A SERVICE (PPMS) CynergisTek collaborates with your organization to support functionality of your patient privacy monitoring tool.
PPMS
DESCRIPTION PPMS SELECT PPMS ELITE Audit Program Development ü ü Current & Future State Analysis ü ü Optimization Plan & End User Training ü ü Validation and Testing of Audit Tool ü ü Proactive Audit Reporting Analysis ü ü Incident Documentation and Escalation of Findings ü ü Audit Tool Optimization ü ü Standard Program Reports ü ü Reactive Audit Reports, Advanced Analysis, Advanced Program Reports and Advisory Services ü
*Some services may vary based on monitoring tool capabilities.
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THE SERVICES WE PROVIDE
VENDOR SECURITY MANAGEMENT Evaluate and monitor vendors on a regular and ongoing basis. VSM ASSESSMENT APPROACH
updated/monitored.
within RiskSonar
Exception process
renewal VSM DELIVERABLES
VSM
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THE SERVICES WE PROVIDE
MEDICAL DEVICE SECURITY TECHNICAL ASSESSMENT A comprehensive inventory of networked medical devices and the associated vulnerabilities. MEDICAL DEVICE SECURITY ASSESSMENT An evaluation of security controls and an identification of gaps or vulnerabilities in the management practices for medical device security. MEDICAL DEVICE SECURITY MANAGEMENT STRATEGY A strategy articulating different risk categories and a remediation roadmap to address the different categories and the unique issues/vulnerabilities. MEDICAL DEVICE SECURITY PROGRAM MANAGEMENT Our service is built to address the security aspects, as it relates to each component of the medical device lifecycle including policy development, pre-acquisition procedures, implementation and security control setup, identifying and reporting vulnerabilities, and coordinating remediation in conjunction with the device maintenance schedule.
Medical Device Security
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THE SERVICES WE PROVIDE
CYBERSECURITY REMEDIATION
CYBERSECURITY PROGRAM DEVELOPMENT
security program
ensuring the alignment of policy charters, program playbooks, and process and procedure documents are a solid foundation STRATEGIC SECURITY STAFFING Alleviate the efforts to source and employ skilled talent for projects that are high priority.
project specific, long-term, or temp-to-hire cybersecurity and privacy engagements
Professional Services
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THE SERVICES WE PROVIDE
MPS
FINANCIAL MANAGEMENT SERVICES
client contracts to ensure validity of charges
comprehensive review of third- party contracts and provide opportunities for improvement ONE-STOP SOLUTION For all service, supplies, and acquisition requests
agnostic
and create remediation plan STANDARD ENGAGEMENT
OPTIMIZATION & WORKFLOW SERVICES
your fleet
impact print utilization
application and technology
PERFORMANCE-BASED REPORTING SERVICES
reduce unnecessary print volume
Recurring Revenue model with 3-5-year contracts
MANAGED PRINT SERVICE PROGRAM WITH SECURITY AND COMPLIANCE IN MIND
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Increase Sales Reach, Accelerate Land and Expand Non-Organic Growth Expand into New Markets
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Covered Entities* - over 1,400 healthcare provider locations and business associates
*Covered entities are defined in the Health Insurance Portability and Accountability Act (HIPAA) rules as (1) health plans, (2) health care clearinghouses, and (3) health care providers who electronically transmit any health information in connection with transactions for which the department of Health and Human Services (HHS) has adopted standards.
Partnered with 4 of the top 10 largest health systems in the US
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73.4% 11.1% 6.8% 5.8% 1.0% 0.5% 0.5% 0.5%0.5% Health Care Information Technology Financials Consumer Discretionary Energy Consumer Staples Industrials Materials Telecommunication Services
Technology Industry
Discretionary Industry Current Client Mix by Industry
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COMPANY TICKER NYSE: CTEK UNITS: USD
Price (as of 11/27/18) $4.75 FD Shares Outstanding** 9.8M Market Cap $45M LTM Revenue $71.2M Cash** $6.4 Long- and Short-Term Debt** $22.8M Total Enterprise Value $67M
** Data as of Q3 ending September 30th, 2018
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REVENUE & GROSS MARGIN
2015 2016 2017 9M 2017 9M 2018
Managed Services Professional & Consulting Services Equipment & Software
17% 20% 29% 28% 27% $61 $60 $72 $53 $53
FY’13 – FY’17 Total Revenue CAGR: 11% Financial Highlights ($Millions) – Expanding New Revenue Lines to Increase Gross Margins
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ADJUSTED EBITDA
$1.8 $3.4 $7.8 $5.3 $4.9 $1.7 $3.3 $6.1 $4.0 $3.6
2015 2016 2017 9M 2017 9M 2018
Adjusted EBITDA Adjusted Earnings
Financial Highlights ($Millions) – Profitable While Investing in Growth
1 Adjusted EBITDA: adjusting EBITDA for stock-based compensation and non-recurring charges related to our recent debt refinancing and the departure of a senior executive. 2 Adjusted Earnings: adjusting net income for estimated cash tax adjustment, adjustment in contingent consideration from acquisition, amortization and impairment of intangibles, non-recurring charges related to our recent debt refinancing and the departure of a senior executive, stock-based compensation and depreciation.
23 InvestorRelations@cynergistek.com cynergistek.com
NYSE AMERICA: CTEK