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PWFL PowerFleet

Participants
Chris Wolfe CEO & Director
David Mahlab CEO and President
Ned Mavrommatis CFO, Treasurer & Corporate Secretary
Michael Nichols B. Riley FBR, Inc.
William Gibson Roth Capital Partners
Jeff Silver Corrado Financial
Glenn Mattson Ladenburg Thalmann & Co.
Matthew Galinko National Securities Corporation
Shawn Boyd Next Mark Capital
Call transcript
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Operator

Good morning. Welcome to I.D. Systems Conference Call to discuss its acquisition of Pointer Telocation. My name is Bridget, and I'll be your operator for today's call.

Joining us for today's presentation is I.D. I.D. Wolfe; Chris CEO, Systems' Systems' CFO, CFO, Mahlab; Pointer's CEO, Mavrommatis; Dorani. Pointer's Yaniv David and Ned Management a made during has available today's be which call. referencing we'll supplementary slide presentation,

Relations already, If slide done finally, presentation to hosts, before call to please I section remind the And I of turn everyone for note to regarding this forward-looking visit in would download you it. legal I.D. so like the the over made haven't I including will presentation. to Relations website Systems' section be replay you the Investor cautionary will website. your of disclosures, a the in that Investor the call statements for company's slide available the refer

CEO, Wolfe. Mr. proceed. Now please Chris call would I to Systems' turn Sir, like the I.D. over to

Chris Wolfe

Bridget. morning. everyone, you, Welcome, good and Thank

employees us our in global committed growth talented solutions and will multibillion profitability IoT market. the you mobile our the after release of sets as our Systems, acquisition issued close leading time new our for trajectory, and solutions. an Pointer strongly our supportive which we IoT accelerate our also shareholders. and well telematics software telematics as a Needless us of announcing even I.D. valued yesterday, partners, provider saw As more customers, a say, Pointer Telocation, marks acquisition on of very and exciting position a It entirely press dollar market the in the to

give to together. marks kind the Pointer personally and and on transaction entire excited I'd combined the like team David inflection to means they makes are its - Along this so turn first and covering - go this in makes to this can you your about If agenda. sense. our Yaniv important like why briefly on Slide how by and point are questions, would Porter answer also shareholders. their welcome also line, who look I'd journey words much I and you business. the I.D. Mahlab, agenda, X value-creation to we this start call the Systems Today Pointer's like of CEO, that for why to CFO, Dorani, the an welcome and and and and say at today's I'd available like deal to what

the will larger a look you why through why in going go the also talk company. really the rationale, opportunities, about as we're and through We'll brand. If as and deep and Then growth model. go cover well synergy outlook dive of and the at transaction the growing why to much into helps Pointer the transaction more Pointer, scale cover the do strategic through and rapidly a now, also the target competitive Ned us walk highlights the us about components

I'll Finally, as your to key briefly new discuss the combined the questions. brand to well takeaways at before the opening call as summarize business

If you turn I.D. Pointer. X, between why synergies talk many about Pointer, now? Slide and We'll to Systems why

rest We for the team known and years. many Yaniv the David, have of Pointer

have we Pointer, our on our and in Through award-winning in XXXX the visibility puts year through it recently logistics been for have strategic building products, more operations and as increasingly collaboration, providers, Top the trucking launched evident became won with values fact, rarified design, also group or Trimble award. which working of acquisition solution builds XXX,XXX our IoT us two relationship including improving than heavy-duty industrial-grade strategy innovative mobility, aligned customer In combination mission such that who solutions. XX TomTom subscribers. a were a codeveloping shared series, The closely business of our discipline engineering

go cost global over exciting but have on to with that, it from and turn think benefits will be about Pointer's facilitate if make be it we'll hear vertically I would it the importantly, a David. will you I'll perspective. we And space, the David footprint, the combination of in Hi, to and comments. pricing, integrated, can which brings, I more others unlike all a significant However, truly technology perhaps advantages. helpful couple

David Mahlab

Chris. is truly exciting This for shareholder Pointer, me, for our personally. for you, Thank an day and

many profitable Pointer has you built telematics As industry. of in a know, high-growth the and successful company

track growing our and I we We Systems create in vehicles. multibillion for the solutions, global entities. I.D. experience, mobile extremely am delivering this to Chris? way IoT our is together really leadership implement software for a and is goal. innovative in Car North brand Israel go and all digital shareholder IoT exceptional and that mobile step American comprehensive both our increased another a offering, customers as I of solutions, of a create Pointer remain technology long-term North it's and global the the long and great product into capabilities. - robust valued maintained. would have be and of engineering supported under established been expand telematics of in chain immediate well for software will We've in improving services, platform, enhanced IoT to do the the our I Israel's I the to to and IoT expanding the we skill to will offerings partnership leverage commitment and believe the impact our always additional product this as Connected the core subsidiary. product, a I part and the believe strengthened us. quality yet have combination strategy. our Israeli our penetration in I.D. done at will technical intact way share record being a value and position and the reliability. expert our - delivering that will reach By values, all proud still of development Combining and do work advanced know market right our market I we platform and - by and reputation in find services, expect a supply opportunity in create team appreciate brand Systems well. and and at with as industry innovation be Pointer expansion increased solutions continue has opportunity and American The empower strategy the to services and of of - in technology demand That

Chris Wolfe

Thanks, you, David. Thank David.

we'll really If the about to the the lays you But of acquisition accelerate Slide turn deeper help I'll moment. business. dig helps in a now to you strategic our strategic just think X, and slide foundation which ways talk benefits out the this in this the about acquisition, rationale and

subscribers. combined more XXX,XXX mentioned, As I the add business close at will than

number and is will it the how recurring generate into even revenue revenue. a impressive of impressive, $XX At XXX,XXX While more than translate high-margin alone subscribers, on subscription services more is million recurring solid that basis. combined on than exciting more reflecting And our is platform, growth we XXX,XXX combined what organic fiscal is for expect what with more run-rate end businesses. the subscribers by subscriber even the XXXX, forecasted of business

that business The us a the second portfolio generated globally. major product forma and million approximately the is perhaps - and only of the financial for will the fiscal combined to basis innovative scale year million Not On $XX particularly multinational, more revenue, win pro compete combination the scale globally, gives will resources $XX have XXXX, multimillion-dollar Size effectively necessary in deepest matter, EBITDA. tenders. benefit the $XXX in large enable technology of in business for and revenue to but recurring effectively portfolio million financial industry. we telematics adjusted most global including does us and compete

future we faster R&D especially In new aggressively technology strength as providing take collective development the and is and we This to differentiator, market. look in scale addition will market and a to in product verticals enable our share time to depth, serve. critical

footprint. I.D. also I.D. acquisition, our market Pointer's as for can X, Slide you but it Systems' is on for only in Systems a leadership see technology America leadership As combines broad transformational in North industry, with this international not

our Over expand the strategy executing to two Fleet both in been chain years, past means. through inorganic on and our position strengthen Management we've organic value and communicated

complete market Our joining solutions perfectly that needs for broader telematics well integrated values the foundational telematics vertically companies offering. by globally as been provider. This software two industry as create customers, asking have acquisition a customers the addresses to potential transformational a share bumper-to-bumper and

and strategic will analytics, sensor overview devices as stack, Resource encompass of With Software can a telemetry Pointer, or Our MXM, which foundation and set, MRM, into Mobile on this seen the take deeper let's X. solution full Management integration. or Service, dive be IoT a Slide

drivers, as Pointer's solid leading mentioned you organization's mission-critical services monthly million industries. before, and telematics provider can results subscriber and points. of Pointer's I of $XX vehicles, success actual technical company's optimizing market mobile interest, currently and includes As cargo. innovative extracts This encrypts and company insurance automotive, data solutions reflect units, from than and has routes, a employed of from EBITDA. continued XX% cloud-based this has Pointer's expertise with vertical worldwide customers' nearly acumen, deep analyze knowledge. into across data The light and then logistics, in technology and from a in points nine million and engineering is everything assets such deployed countries. profitability. of for the see, data the revenue, X XXXX intelligence, the networks, captures more in vehicles commercial heavy trailers, as offices IoT recurring recurring Pointer's as improving strong financial revenue, platform XXX,XXX $XX XXX XX logistics SaaS professionals platform, dedicated which mobility and million containers

to forward their from base. benefiting collective looking knowledge We are

development Turning our specifically, overhead marketing. move fact our development, this enables the network. I.D. of leverage is in go-to-market same in the cost in part structure internationally the solutions IoT engineering, comments, XX our million and XXXX strength and the Cellocator enables effectively will faster Pointer cross-selling and $X.X to share control it and expedited software over hosting significant ability enable more stack first Slide synergies. logistics feature, and indirect Systems time to opportunities Realizing increased reduce X. to and sales months and my a we in Not enhanced profitably the More This aggressively to From earlier creates us price first will the XX our operational technological Pointer's the unification leverage only direct with environments. post-close, by through and approximately our delivery technology complementary with divisions market. product includes business both our provides sell us more product - optimize channel standpoint, on Building development overall chain, by that of supply R&D, to to solutions. combination

distribution plan established solutions to business Pointer's and American North also in to bring small massive to enterprise market. We our medium leverage channels the

be business, light-duty immediate in-car vehicle connected, and leverage which As - walk Connected to greatly and truck been and will Ned? I'll through has solutions target relates Connected combined solutions, connected like Fleet companies offering our the Management and call well our many to experience, the and outlook joining Car enhance accelerate years. financial for better developing create Ultimately, Ned Pointer optimize will the will now platforms to us what model. By our Car this a the expect it turn to and all we combined strategy. help vehicles vision. and as as track over facilitate combined from and perspective the company looks fast the combined

Ned Mavrommatis

own, newly couple $XX Thanks, a minutes a transaction million which spend approximately Slide of approximately Chris, be X. be cash on seen will PowerFleet and Pointer based structure, per comprised where good of each itself, valued cash Pointer's receive stock XX. share XX% - will on the price details Systems' and $XXX over considered The through of closing Pointer and million of morning, common $XX.X shares. at total approximately X.XXX acquisition company effected PowerFleet, $XX.XX in Systems approximately total can subsidiaries stock and share and wholly everyone. PowerFleet. The new implying holding become of in will operation owned I.D. common going XX% the XX consideration of they cash stock I'd for on I.D. to created shares stock like and million March is shareholders of consideration

be to NASDAQ Systems the be will of share Stock one on Exchange. I.D. of and part for stock, share transaction, which common was of PowerFleet dual-listed exchanged Aviv expected the Tel the As each

look of by stock issuing shareholders, firm Pointer also deal-related as Partners' CEO for to $XX from cash be expenses preferred the investment thank John assume the to a equity the addition to a International. new equity individuals Partner, In At like the more welcome contributions and closing, closing $XX would both connection like expect John, appoint board and will the funded and private their of entire insight this and convertible facilities. through of Ken David replace are a consideration combination Board who Anders and available to will transactions, $XX and Partners team, Ken of hand. growth we than the the David of the transaction summer. to of effective will to Abry seek Chris the experience opportunities join will over on of the Anders Hunt significant years. In be to The Directors million we debt Directors our The upon have approved total synergies by companies investment, Managing as to about of forward would debt from the by PowerFleet, bring a consideration the agreed Hapoalim. I.D. will that I Systems' Chris we well cash will three capitalize million been have we to in investment. in talk the and benefiting service hand company Bjork guidance combined On turns and the to investment by to also minute. credit the I and their behalf equity any of as of financing collective Formant, with position and Abry to million and process All available our preferred wealth funded transactions Bank to close business rebranded on and unanimously board. Principal, have Chris in Board the the Brakebill expected the be After combined which business. company closing and

seven of directors, the independent five these of Following Board will Directors and directors. consist directors including PowerFleet management two changes,

Now to walk company. combined like the I through would you

company, Slide combined which as on outlook post-closing, well our the like closing it X. looks at the XX first be as With months for seen can

last As many I.D. of its Systems reported results week, year know, financial fiscal XXXX. for you the

in was review study to I million adjusted amount, revenue, detail. summarize, haven't to But in in encourage From EBITDA our more we our recurring the a website opportunity a to over profitability XX% release you this you our XXXX. Of which had If breakeven. $XX we numbers, generated to record essentially visit earnings was XX% standpoint, up achieved nature.

revenue along XX, the services a results million revenue, and strategic approximately they on and in $XX of after the revenue Looking in EBITDA pro figures other or organic first ability growth year recurring forma XXXX, reported closing. which of revenue. generate and XX% adjusted at and high-margin significant in XX% totaled - of fiscal would was services was total million cross-selling million, XXXX. and company fiscal million Aggregating benefits recurring adjusted which, who for $XX revenue in Pointer's revenue double-digit to expanding full $XXX on combined basis, XX% generated February and for total these have the $XX is and confidence gives EBITDA with transaction This profitability financial operational us the opportunities scale our have

rate business combined that organic generate million, growth fact, at $XXX of has to than believe an the more representing we XX%. of revenue the In potential least

total the adjusted We expect over total in to acquisition non-GAAP accretive or first XX% to revenue recurring These commitment XX a EPS give months growth. meant numbers in sense of to are well scale the trajectory as and our as post-closing. to the of EBITDA anticipate of to services and XX% also over XX% to revenue and business the - preliminary profitable to XX%. generate margin XX-month We highlight of be planned investors

pro give Slide forma even you target Turning the lays chance of model, the company. Slide to operating better out an combined of XX. leverage should XX significant the which

EBITDA. million a and forma profit at model revenue, that million to closing expanded $XXX we million can turn in you'll for of to million high-margin and back perspective, As combined business recurring I.D. and generate $XX From the least gross margins service of now margin our $XXX for will 'XX see, closed $XXX Systems both notice the I target Chris expect pro fiscal Chris? of at remarks. results. for over call adjusted annual revenue you

Chris Wolfe

Ned. Thanks,

turn the success $XXX integration help The the months front that our first going post-closing. Ned of synergies out, operational of end, is vertical drive the pointed slide is us us value. combined today, and shareholder in significant the us; forward; of continued profits; you specifically opportunities ways The the within is growth million absolutely ahead. the in is cross-selling which the that forward: value. and acquisition, acquisition If it value, of second positions in capitalizing creates realizing will not To key XX revenue going years Slide only it to business third engines is and it fourth summarizes the scale, four to drive significant on the in as takeaways reach first shows will drive shareholder the XX, The attractive but value

in However, fact provides by at our of what by least earlier, mentioned opening I opportunities company the the our provides that subscriber from not XXX,XXX the accelerates increases for we pricing. costs more will profitability. we only operational IoT scale, bases. combined than believe acquisition and Slide both unique efficiencies, the XXXX. XX% position have cost XX telematics subscribers features, significant It strengthens to doesn't growth is and with significant and synergies our product further but vertical also grow also market, illustrate, integration, more and end savings our over our to Pointer control cross-selling base The also expect up what immediate XXX,XXX Pointer customer the which

that our telematics positioning and we what be portfolio - within great and possible our basically as after of peers the not which multibillion-dollar capture growth upscale fronts global, view this and into product are excited software will us value IoT acquisition, Having our finally considered many offerings today, and opportunities all am shareholders. look and our expansion. higher XX, in peer tomorrow. also significantly allows which expand our in and platform marketplace on brings Over market, a PowerFleet, for And should would Slide organic telematics wider to years, the us those that's be as the robust more leverage in Abry help strategic group for create solutions some closing expand about our business IoT equally I of the rebranded to to of strengthening do. and quarters coming combined business and we further we the and share will a greater

it software in is Exchanges under solutions, and rebranding think PowerFleet Tel in name excited Telocation or With to great Powerful PowerFleet. and this and symbol power will experts be NASDAQ a global establishing actually say, our Aviv this the Pointer about or dual-listed it's telematics So at. I are go-to-market we brands. international everyone represents Stock PWFL the and what continue Cellocator as will the was

the the security see slide, the circle Systems combines removal logo. you Pointer As of of of I.D. and logo richer field, the logo this broadens shield the the meaning The can the and the concept existing dog identification. with on location from the circle the adoption color globe new beyond

the So a solutions and IoT that, win integrated PowerFleet ready we truly to I.D. Systems the telematics Operator? vertically globally. be with questions. software open is in and Together, powerful your company share of and leading product and effectively portfolio Pointer with Not will compete combination a for scale are closing, take one. call to and a

Operator

Instructions]. [Operator

Our FBR. line from first of with question comes Nichols B. Josh the Riley

Michael Nichols

have of ARPU subscriber and churn behavior you entity? has with driver could any would whatnot be ARPU? some commentary as I for historically such Just combined since was it about big scale. race I the now Well, and think the entity solutions in see to such wondering, provide Nice combined the that commended. I a jump accretive high-value Pointer high-level

Chris Wolfe

your take products? to want ARPU you that from do one on your David, perspective

David Mahlab

basic Yes. average about subscriber XXX Basically, Pointer, at in globally. of XXX it's ARPU you if per the look to

ARPU from Of a guide. the it varies to high course, ARPU low

of ARPU ARPU, of some provide double on Some are added paying we the that - the depends the clients the value them.

a low are basis. some number on I of course, mentioned, yearly that The ARPU. And is

Chris Wolfe

to David, on perspective. him that too to add side a for Josh let on the me give U.S.

contract. ARPU we side, than our - lower units, Car they acquisition, which be. we to some as have lastly historically Xx on what on the actually for the we've like the our of new Connected there with in on scale in-cab CarrierWeb new So just ARPU, the And products, the On would with products but products date those don't in-cab like of a LVS our launched, Avis point on have pay our are that X obviously, units, ARPU codeveloped. like that higher the normal

So like, $XX the to in $XX range.

is see product So - products those and of lot that a that opportunities. product, cross-market one the CarrierWeb of we

Michael Nichols

wanted follow cross-selling in more a has a more internationally then up bit. domestically ask of little strong been domestically, you And just abroad? obviously could you on focused bit a some see the I to to Pointer's whereas little about dive that, IDSY footprint both and opportunities

Chris Wolfe

to love that. do Yes, I'd

And the diligence of have and some I part to opportunity phenomenally Pointer subsidies visit the actually great the as have know impressed. had their obviously and getting the they So due team, geographies. to talent,

in which So at in interesting FEMSA, the we're is done kind Mexico, it's They largest solutions phenomenal doing you some of there at and gotten what actually if look work the Latin distributors with telemetry you one that of in America. done if what you're own have Coca-Cola look they've very work a Walmart CarrierWeb they're in Mexico the as U.S, have lot distribution acquisition side a in customer, models. or similar a they a model model we like and - of if logistics in doing distribution great you're in that there's in with overlap the the with visibility

what done solution the cross in into they've for built be they've brought States with FEMSA brought the market. Brazil. be solutions down selling in we and so United through are the Simultaneously, CarrierWeb can the is Mexican have with can actually and very similar up there Walmart that that is And the

look actually fleet you similar is base Cielo a customer have in they space, acquired at distribution CarrierWeb. foothold. what Cielo. Basically, done Brazil, grocery, like is in strong private the they've very if improving they their So

was way for two So way what they command by Cielo, control lacked refrigerated. in the and

we what acquisition. And with the CarrierWeb got so that's actually

and do as platforms the been Mexico technologies because multinational truck solutions we've lot as had ground. but Brazil, boots on to of that we've into effectively truck to well our customers and industrial able down solutions, CarrierWeb our the the into don't a we have want take Brazil the industrial taking So not

be kind the platforms that So and let's pursue brought of United reverse into Cellocator the States. question can

you out to If Cellocator our have chance to similarities site actually a go a you and you'll if XX,XXX teams our Avis But the on and look Avis the order. on at this, and platform platform under the of and at been their have look CMing those products, lot in working products. covers that's our see Pointer's unit actually ODMing for

to Connected working Management a Fleet after take So to able already and to future, XX a to feature from Class want space United started in in further do million vehicles systems. vehicles. needs we've the X that XXXX. everybody call X that about on now, it There's and the the the penetration with to and combined Right about change to we Car set, We're combined in going take we there XG Gartner platform, in the LTE. what expects be States. even to XX%

side it's So in U.S. similarly, call vehicle with we're the LVS side in we to the what going doing the products, what do on - lower codeveloped the we're

our there can But historically, that facilitate Cellocator U.S. been So market we has that. to because low use actually there's answers. that penetrate a not help end. Hopefully, able the opportunity huge to infrastructure at

Michael Nichols

scale me, with based I'll about model rate, is out X $XXX it really growth the forma growth, expansion like, EBITDA see target then to $XXX I is seems pro laid you're for fair thank in of XX% margins. nice pass that revenue million last scale want Chris. years XX% like No, at maybe EBITDA detail to towards, margin question to you, A with ask that with the insight, great The to achieving that there. get the talking just million, it X on assessment? lot that

Ned Mavrommatis

I great that's a think assessment.

and David both think we think, share I, I I that.

is right front in the of I think us. opportunity

Operator

[Operator Instructions].

Our the William Gibson next of question Capital. from comes with line Roth

William Gibson

interest in The rate. mentioned approximate I've credit that or fixed got Is for line question a floating? X% you new Ned.

Ned Mavrommatis

million loans those average So line floating. Those be is expect a have on million. to loans those combined there X%. are would not A three $XX there $XX but we a be loans, There available, we've it, Loan then B in credit - use that fixed lower X will for and we Loan that rate. got will a And be are Bill. it will reach combined And approximately do

Operator

Jeff comes next line Corrado of the Our with Financial. Silver question from

Jeff Silver

acquisition parties involved. Congrats on the to all

that I all business incredibly this all important. scale but in throughout think economy, - the is in especially

then, on how answered sort and of I bit answered and just Chris, two But - development with of a You spend of the couple could little well? maybe about will integrated you talking wondering had. questions integration you've the I'm maybe a time specifically, effort integration integration, the sales businesses of as be research

Chris Wolfe

Absolutely.

and this our do David smaller do I but being and to a have So of acquisition, been unsuccessful. of first I've record obviously, of remember you all, - past locked lot in track think I able are with if I up my kind is, had what I have telling actually successfully, our and a employees, it's this

past, kind is But have strategic already our companies Because have to which on need to objectives from the good started thing need learn. plates is in not we don't a to integrated. intertwined I know what what's of our to both to we today. what here plates. mistakes missions, execute do and both companies on So Tactically, have do just be

over years thing developing and our good been working for with teams team David's partnering we've logistics two and the acquisition that engineering about and Pointer their platform. So is visibility our this

you far if U.S. their the logistics cetera. engineering our as space about more is the and team on the behind house et team it in think is So experts sensors, the it, basically hardware, of a content in the as

already we've way. integration in the So a started

a this of deeper is just follow-on integration going to So a be capability.

- as them we We groups could Avis the NextGen I also, the our platform. specifically start so gave integrating on of basically mentioned earlier, contract

let's the then if we're that you combine cost CANiQ do two our at at, So look platforms feature XX,XXX teams WOM product XX% But okay, you busy probably look and started ramping the to already sets our product, same the between you units. of under those a up lot savings and working working pulled the and say, covers, and at production together. look is UTP and we because our of on shared time, the how there's their just need platforms for be have Avis means

So but it's answer a long started I question, already integration. know your again, that to we've

methodical now how as been much fully out plan I teams map between closing pull far that it lot a things and of we as exactly to deeper. actually integrate companies and us think put now both aware, very have enables the a together kind

sales we side, marketing be a of obviously, PowerFleet. have the as On rebranding and very Systems corporate will company I.D. itself quickly, the and rebranded

We sell we a will from but a we're Cellocator way, the brands Pointer and sales in if channel think going of Telocation Cellocator before, you Cellocator keeping, about to a today, just another the be their globally. internationally, they perspective, part mentioned be as And products in way.

So under Company. think integration ultimately that chain of supply the shift and production manufacturing will I that and of all Cellocator and our

So tomorrow. more of they're doing it be to going today they're just doing it It's for us. lot a

hopefully, So your addressed I question.

Operator

the from comes Ladenburg. And Glenn of Instructions]. [Operator Mattson from line question

Glenn Mattson

a perhaps opportunities kind cross a that much a of as base logistics. was you of - this like for type of negative projecting more And just business, more you're in Chris, weak result truck. kind of to story acquisition, had confidence more and hit weighted growth logistics investors but hoping give - a achievable? go I.D. heavily shifts that little like was industrial sell lofty two in struggled. changes stuff dramatically historically this I the lot the just story I this what's - and side the XX has you segment. I'm past that those of on which subscriber toward that, solid ago, want bit the the and hours more, entire can targets the are good to a growth of with of segments turn company the those maybe, really trends of wrong And the now, like this a that been of weaker - And kind

Chris Wolfe

Okay.

division took that think was the you it mentioned happening, our having I this prior critical that and was a because we calls. recognized product strategic CarrierWeb to timing and again and to I'd acquisition will and I've solid at had decisions make The just cow. we stasis was assess the that the if we say, that other from do of cash was and what of LTE pilots phenomenally right by control. acquisition, in think segment, field earnings because visibility or actually the of a trials capability It's look We're observe less, a I actually that was that just prospects that, and that. - bumper-to-bumper change logistics with to again, in really actually we was lot getting industry, When of launched, XG more refrigerated launch a now business because couple So mode. to traction

have And So a a of and companies lot not have trucking even container their and of full van if don't of carriers, refrigerated both businesses you right considered. lot business. you're parts suite, dry or now, a

we're many, right units. thousands actually are of many that like pilots tens So now, of in

vehicles, favorable X actually what the those, how phenomenally - products the that's or and The the to to the came Cellocator why visibility important commercial what for we're Now The what know Class with. is fleets - segments. but brings call us. are X what X and high-end, to class seeing to to the we again, we smaller vehicle we X the the everybody for CarrierWeb on that more call fleets, logistics it's class that's the table have is market out I execute this win

that's - globally. they So do what and

area a the market that's for in brand So to penetrate U.S. us new

visibility So a in it's brush broader it's logistics not actually that. down the on side, doubling just

Xs. example, even in basically automobiles an what want Connected Car there's as the in X I to Class to call don't those million, XX space play number. in We typically you for except aren't in that if the there. considered U.S. Just But serve even that Avis in

side Cellocator is States. opportunity new the the us on to coming this brand So greenfield for

Glenn Mattson

Chris. then has performing That's very helpful, well. been the perhaps And - maybe, business

kind executing eye you you your large - rather you've management's focus integration. announcements of that and the on you're the You just to current had. why large this the of keep like had between doing close ability But talk CarrierWeb, on the now mentioned opportunity business other that recent about can

Chris Wolfe

important companies we Yes, I'm think great - more that we've mentioned XX% aware, what's I but we been and last I companies, where much grew both - very earlier, is think growing got it's I two executing. we're year,

to If integrating, is it this at there think a we Dave at XX%, stop Keytroller a acquisition, do relationship. and way actually the you look I didn't right? I great And in that right. So again, have of working growing middle smaller, much do and but the and they're

good in have short know what We teams get done working very relationship to we a today. have Our the term.

we XXXX, if be plans our literally, both for we're just to execute just business going fine. So on

pressing us There's to jeopardy I together we methodically, business gives today. - chance put there's no strategy said bring execute nothing that could put reason a again, us that to the can and on do to to time. plan in something a over that So a integration

it discuss these we making we've value and on of execute. same So - to the programs, I sure need and think right basis, be prop, us this been now, doing, working which time, means we'll it's and just get really on like doing net and what we everybody customer doing to transformational this at need our hand-in-hand everybody we're today in I'm the our because And is educating both for customers. understands out many are what to

Operator

the Galinko line comes question Securities. National Matthew from next Our with of

Matthew Galinko

and this guess, truck, of you logistics? more from in cloud I then of all? conference little being, of couple a the so there at about questions benefit I I little think stack there last call, might - bit curious that maybe some mentioned your detail So you industrial acquisition is there how me. talk distribution going One A between secondly, can that on the the and kind you for about talked was any a commonality if bit cross-pollination into commonalities because or

Chris Wolfe

between interesting. the of the And of historically, approaches interplay this going kind me really your that's market - lot first, players is if and the that forward. space, of visibility. you A strategic part our second and vertical in question one were haven't address big fleet private Let the industrial - truck it's of and we logistics

So what If in you about really the they these FEMSA does Brazil, they if look is ultimate And look the the they private our side, thing large have distribution all fleets. those goal other the about the have also care and at is, stores they're what is, care about have time. Pointer equipment. they key driver, care and I our right? vision our about distribution freight and is centers doing at private the bend and fleet truck, centers, care right? trailer, with fork, what it's material they fleet They down the about about and Mexico, which and call in you the our stores distribution centers And handling private

the trailer times, and So been to times to to times trailer, been. times

think So if about it, from been-to-been. you it's

the freight. people we touch freight. able to track the the be assets touch that should the freight be touch assets track able able So We to that the should be track should to and the and

that actually that's pilots going so the right we technology traction have logistics seeing side. And in visibility we're with this vision. - our with some now some ultimate And

actually manufacturing And think all All forklift going to station the cross-pollination the is, platform We're than of space and almost fleets. truck almost and the committed and the take entire is people visibility trucks should now just that you're facility. the transportation to model industrial with but actually facility. in up distribution that I have - support in forklift, Also what I great over-the-road the a the that us in a all from about our could was is call. happen Jungheinrich can parts plants and That's about first out though of have we all private of don't think also itself, hopefully, U.S. to just U.S. opportunity the the plants the a the volume, here Toyota Cellocator is every Like chain supply transformational the in is it same the recently to our manufacturing that behind can I if Jungheinrich exact - scale reason in your chain. ratchet global to successful GM the of to help distribution in is remember deal doing there faster be at or with the announced then the and at really we're you through in get no in and center what's for they've QX we think manufacturing do when we're if velocity day. part we can't globally reach and deal - by will There's - it, So at There the question, asset and what support, with the lot before. the

Matthew Galinko

I Got it, [indiscernible] the that's Yes, very stack. cloud on helpful.

Chris Wolfe

you. Okay. Yes. Thank

the both we technology stack, So use stack. Microsoft the

foundation we're the tools that - services, what's team, lot exact using on the to a Server, the already codevelop the stack. development way globally and from that it is to look all it together today when if itself, easier great the on work a you're So so lot of same development for the same you're teams team makes so at SQL about technologies if Azure - you our and

Operator

[Operator Instructions].

line from Shawn question next Capital. of Mark the comes with Next Our Boyd

Shawn Boyd

okay? hear Can you me

Chris Wolfe

Yes.

Shawn Boyd

combination. quick back on for Congrats come Ned, one if want you, And I the to then Chris, just and could. a I to

On convertible preferred what conversion period from VWAP the prices, was that? above XX%

Ned Mavrommatis

whichever signing XX-day seven the at VWAP closing, at It's days of the is or lower. VWAP

you the now right day signing, at was it so XXX. as conversion, look VWAP If seven at the is XXX, is

Shawn Boyd

specific are very of going getting but or there's the you're both a just XXX,XXX term, XXX,XXX to to more that is to to in by leaning kind about talk XXX,XXX And to year, cross-sells, you that over that this companies of getting Chris, in-hand cross-sells already subscribers, combined, going at number been helpful. I'm some it, very over guessing, targeting to of lot on the near end of related business Got also the that?

Chris Wolfe

XXX,XXX. you think what's Avis contract us delivering about about great be if our hand, which this a No, it's so that, gets to on contract, year, we'll in

Operator

And the closing remarks. for to Wolfe I'll call Mr. over now turn back

Chris Wolfe

closing, building represents about - monumental and call welcome working today's would to I Pointer partners history into shareholders, and And in employees beyond. to participating and Operator? company forward and our Thank you. in the acquisition, in for of for very which look to are a I.D. thank and Pointer personally Pointer. day future. I much together evolution support, our the Systems want the company, and you team very to Thank a to successful and like we look forward XXXX their great the I a our In truly

Operator

joining us Thank today you for for our presentation.

You may disconnect. now