NamSys (OTCPK:NMYS.F) 2025 Conference Transcript

Summary of Conference Call Company Overview - Company: NamSys - Industry: Cash supply chain software solutions Key Points and Arguments 1. Unique Problem Addressed: NamSys focuses on the cash supply chain, highlighting the fixed costs associated with cash handling, including transportation, labor, compliance, and insurance costs [1][2][3] 2. Cash Payment Trends: Cash usage has declined over the past decade, currently accounting for 14% of all payments in the U.S., stable since COVID-19 [3][4] 3. Cash Circulation: Approximately $2.3 trillion in U.S. cash is in circulation, with 80% being $100 bills, indicating its role as a store of value [5][6] 4. Software Solutions: NamSys provides software for cash register balancing, cash-in-transit operations, and cash processing, operating on a software-as-a-service (SaaS) model [6][8] 5. Revenue Mix: The company’s revenue is derived from three main products, with cash-in-transit solutions comprising 22% of revenue, and the rest evenly split [10][11] 6. Market Focus: 96% of revenue is in U.S. dollars, with 75% coming from the U.S. market, making the company sensitive to exchange rate fluctuations [11][12] 7. Consistent Growth: NamSys has maintained a revenue growth rate of 10% to 20% over the past decade, with a current annual recurring revenue of $7.6 million [12][13] 8. Customer Retention: The company enjoys a low churn rate and strong customer loyalty, emphasizing organic growth and market share expansion [13][18] 9. Employee Efficiency: The company maintains a lean workforce of 20 employees, focusing on maximizing revenue per employee [16][17] 10. International Expansion: International sales grew by 16% in the past year, now accounting for 24% of business, with plans for further expansion into Europe and Australia [24][25] 11. Acquisition Strategy: NamSys is conservative in its acquisition approach, seeking compatible companies that are immediately accretive and within the same industry [26][27] 12. Market Positioning: The company positions itself against larger competitors by offering hardware-agnostic solutions, allowing customers flexibility in equipment choices [19][22] 13. Financial Health: The company has accumulated cash reserves of $8 to $9 million, focusing on growth through acquisitions rather than immediate shareholder returns [32] Additional Important Information - Cash-in-Transit Market: The U.S. market is consolidated, with 80% controlled by major players like Brinks, Loomis, and Garda, but NamSys targets the independent sector [24][29] - Customer Base: Brinks is noted as the largest customer by revenue, indicating a strong relationship with major players in the industry [30] - Operational Resilience: The company has successfully avoided disruptions during significant outages, showcasing its operational reliability [20][21] This summary encapsulates the essential insights from the conference call, providing a comprehensive overview of NamSys's business model, market dynamics, and strategic direction.