Creative Realities, Inc.

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Welcome to the CRI 2020 Financial Results and Earnings Call. All lines have been placed on mute to prevent any background noise. The company's prepared remarks will include a brief presentation of company materials, which can be viewed during this webcast through the webinar by joining joinwebinar.com and entering the meeting ID 587- 674-747. Following the company's prepared remarks, there will be a live question and answer session. If you would like to ask a question during that time, please hit the raise hand button within the webcast control panel. Alternatively, questions can be submitted during the call via email to ir at cri.com. This call, including the presented materials, will be recorded and a copy will be available on our website at CRI.com following completion of the call. Joining me on the call today will be Rick Mills, CEO of CRI. Before we get started, I would like to take this opportunity to remind you that our remarks today will include forward-looking statements. The words anticipates, believes, expects, intends, plans, estimates, projects, Should, may, propose, and similar expressions or the negative versions of such words or expressions, as they relate to us or our management, are intended to identify forward-looking statements. Actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are set forth in our risk factor section on Form 10-K in our annual report. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events. During this call, we may present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in our public filing. It is now my pleasure to introduce Rick Mills, CEO of CRI.

Thanks, Will, as part of this call. we will be presenting a brief series of slides that provide an overview of 2020 and our current outlook and consideration for 2021. If you have not already, we encourage you to join the webinar so that you may follow along on screen. As a reminder, the slides will be filed and posted to our website following the meeting for reference. I want to start with some quick industry facts. You know, we as CRI are lumped in the out of home space. It's how we're viewed and measured in the sector. And as you see, the pandemic was a setback for the industry. The consistent annual growth and momentum stopped and there was significant shrinkage in all of the public entities out there. CRI had the same type of reduction in 2020. The good news is, as we move forward, we feel like the industry is coming out of COVID as we move into 2021, and we're very optimistic for as we move forward. I want to cover some quick 2020 highlights. I'll go through these. January, first part of the year, we added Mike McKim as VP of Operations to bring some real international operational expertise. We changed our auditors to one of the big four providers, Deloitte and Touche. March, of course, COVID hit. Many of our customers specifically in the theater, industry, retail were very hard hit. We enacted some Cost controls, very, very quickly. Bottom line is we reduced our core operating expenses from Q1 to Q4 by a 26% reduction, and that was fully implemented by June. 2Q, we had bankruptcy of a theater customer. It's about 500K hit. By the way, we did a significant recovery of that in Q1, and Will will talk about that. a little bit later we did receive a ppp loan of approximately 1.6 million and in q2 we did pivot and launched the safe space product that has been purchased by over 200 unique customers some of these customers have 40 to 60 units deployed across multiple facilities multiple states And we also established distributor relationships for our safe space solution with the three largest IT distributors in the United States today. September, we did complete one of the projects that we had been awarded, which was SoFi Stadium. Our CMS is currently being used to control over 550 menu boards whenever that facility reopens. We did exit a lease in Atlanta. The lease had come up. We rented some short-term space for our folks as we continued to evaluate a return to work. But elimination of that lease was a reduction of $25K in monthly expenses. Q3 and Q4, we generated approximately $5 million per quarter in revenue with positive EBITDA in each of those two periods. We also did an expansion of our automotive software into the Middle East. We executed a license for eight additional countries. We also relocated our Windsor office and we exited our Dallas, Texas lease. There were some subsequent events that rolled into Q1. Will, do you want to cover those?