Okay. We're Water Intelligence. First of all, thank you all for attending and getting to know our company. I'm Patrick DeSouza, I'm the Executive Chair. That's Will Nell, he's the CEO of the company. Basically, in terms of what we do, we use technology to find, pinpoint, and fix leaks, water leaks. It could be any size pipe. We have a great operational footprint. We're solving real problems. Again, we're trying to transform a sleepy industry, water, into a tech business. Hopefully, as you see our presentation and how we roll out the information, you'll come to appreciate just really kind of how unique the set of assets that we have are.
The other thing I'd just quickly mention in terms of before we get started is, you know, just in coming to this presentation or this conference, I have learned a lot, including, you know, Ian was making a really good point yesterday, that sometimes, you know, there's like a Venn diagram out there, and there are three things that are always needed for companies. One is a great solution, you happen to be at the right time, and you have a great management team. As we go through these slides, hopefully, you know, we can illustrate how we have all the pieces of the Venn diagram, and this could be a great opportunity really to start cranking up both the company and its investor base. Just before we begin here, we are a company listed on AIM, so we have, of course, legal disclaimers, our lawyers insist.
Just really at the bottom there, just to make sure there's not a solicitation for securities or anything else, okay? You guys have been through a bunch of presentations, you already know this sort of stuff. Just in beginning, as I said, what the company does is it uses technology to pinpoint and fix leaks. If you look at kind of how the market landscape works, it really is to one side this notion of finding and fixing leaks, to the other side, plumbing and restoration. Really, if you look at it, it's proactive solutions, reactive solutions, right? If you look at the five points that we're going to talk about today, it really goes to the first idea that it's a big global market opportunity, and we have a footprint both across the U.S. and internationally.
Second, again, the reality is as simple as all pipes leak, okay? Just take that, and if you have aging infrastructure, you're not going to dig up the streets and the walls. You have to have a minimally invasive approach to a big issue. The issue is simply pipes leak, and they age. Next piece there, we have a unique set of assets, both in terms of scalable operations, technologies, and a critical mass of sales, $175 million. We have enough market penetration around which we can then add, in terms of at the end of the discussion, we're going to talk about capital allocation, add resources to continue to scale. The third point that we're going to cover in this presentation is that we have a track record of delivering. Some of, you know, our financials are in the booklets that you have.
The next thing is we have actually, we're very under-levered. To the extent that we care about earnings per share, our shareholders, we have, you know, dry powder around which to grow the company in a non-dilutive way. Finally, if you just look at, as I said, you know, I do think there's an opportunity just given the fundamentals. We're here really looking to think about, should we also have the listing on NASDAQ? I think there is a good opportunity to engage with investors and partners. All right, if we took that outline and you said, let's break it down into different sections, the first one is just really a couple of headlines on the market opportunity that we talked about.
These are somewhat eye-watering slides, as you know, but they are in the booklet. The presentation is being taped. We will make it available even on our website, okay? The big headlines here are that just water infrastructure globally is aging. There is a great need for spend. Most of the spend is going to have to come from the private sector because, you know, all around the world, government budgets are constrained. If you look at the reality of what I told you, all pipes leak, and it is largely because, you know, they age. When you have things that even like adverse climate conditions, if the ground shifts, the pipes move. If the pipes move, the joint, you know, comes loose, water begins to leak, okay?
If you look at then the next piece, the sense of urgency, all right, the price of water is only going up, right? There's both resource scarcity, and then as a collateral effect, if you look at the second biggest source of claims for insurance companies, it's water damage. To the extent that the economics around water and moving water from point A to point B are really being transformed and getting pricier, that's an opportunity for us to really provide the solutions that we're going to describe to you to really transform the industry. By the way, just as you guys might know, I don't want to take it for granted, you know, the market is especially fragmented. We're a nationwide provider and a national brand. There are very, there's almost none other, Roto-Rooter may be the only other national brand.
The reason is plumbing is really local and fragmented, largely because of their licensing requirements. The fact that we have operations in 46 states of the U.S. allows us to really kind of become the nationwide provider for these kinds of solutions. If you look there, just a quick summary of, you know, both what our mission is as a company, and then separately just where we are currently and how we are, we can head up the industry as it transforms itself. If you look at the current situation, we are the leaders in minimally invasive leak detection. We actually use AI and drive a lot of data insights. We actually have world-class customer service.
I think just in general, the base business is both consistent in terms of delivering solutions, but then also we've made investments over the last, say, five years, which really catapults us to the front in terms of how the industry is moving. To the extent that we have added new capabilities for preventive maintenance, it really ties into the changing economics. As the price of water gets more expensive, nobody's waiting to be reactive. Whether it's insurance companies or utilities, they want to get ahead of the curve. Basically, as Will is going to describe, we have a variety of solutions that are both coming online and that we're driving with partners to really define this preventive maintenance aspect of water infrastructure.
Then again, you know, for the purpose of this presentation, I know Raymond James was thinking of coming and they may be here, but they have a great water quarterly to the extent that they do try to value the different companies in the space. I do think that that's worthwhile look-see. All right, before I turn over to Will, just some fast facts to really drill down the basic framework of our operations against the market opportunity. If you look at it, the company started with a core business, American Leak Detection. In fact, we're in 46 states. Some of you may have even seen our trucks rolling around.
It started 50 years ago, and as Will is going to describe, the business has evolved from a point solution, minimally invasive leak detection, swimming pools, et cetera, now into a full-size distribution platform with, you know, solutions for every size pipe, meaning residential, commercial, municipal, clean water, dirty water. The growth of the business and its arc has really, you know, really been a point of satisfaction for both Will and myself. We have the business Water Intelligence PLC has two operating subsidiaries that are wholly owned. Basically they divide up into American Leak Detection, 46 states of the U.S., 150 locations, really the U.S., and then Water Intelligence International, which is anything outside of the U.S. If you see our operating footprint there, we have locations in Canada, the U.K., Ireland, Australia.
These are physical locations around which we can deploy more trucks, but we've also used the Irish footprint to deploy trucks even in the European Union, okay? If you go to our, you know, critical mass of sales, it's $175 million and growing. Just to make sure it's clear, we have both direct sales and then we have indirect sales, again, from the franchise system around which we get royalty. In both cases, the trucks operate under the same brand, text with the same uniform. The customer doesn't know it's a franchise truck or a corporate truck. Our market penetration is about $175 million. In terms of the go-to-market traction, we go to about 200,000 homes annually. We have B2B channels set up with the largest insurance companies.
Again, mapping to our nationwide footprint, they only want one company to go to really look at all these water-related claims. We also have your typical direct-to-consumer digital marketing. If you really look at the shaping of our brand based on the set of assets, it really is to strike out not only our current leadership in terms of minimally invasive solutions, but, you know, step which was really shaped the market for preventive maintenance relative to water infrastructure. All right, let me turn it over to Will just in terms of really drilling down into our business and so everybody here can understand, you know, what a great company we are. Will?
Yeah, thank you, Pat. Yeah, I'm going to kind of speak to the operational side, specifically American Leak Detection, but how we incorporate technology into what has always traditionally been a relatively non-technology-driven industry. This goes back to our humble beginnings. You know, we're a 50-year-old company. In the early days, our founder identified a problem in the way that traditional plumbing companies went about finding leaks and how destructive that was. He developed proprietary technology that used ultrasonics to identify the leak's location. We have, you know, that is really our, you know, it's where our foundation came from. We have always kept that top of mind as we start to try to leverage our position in the market and really try to position ourselves as leaders within this industry and pioneers of the industry.
I'll kind of speak to some other technologies that we have incorporated over the last 50 years to maintain that market leadership. You know, I mentioned in the beginning, really our methodology, our proprietary listening devices that we developed early on, and that goes along with the training of our technicians. You know, all of our technicians go through an extensive training period to learn our methodology that we utilize to non-invasively locate water leaks of any kind. We have also, over the years, developed other technologies. We have a pulse acoustic device, which allows us to determine the flow rate of sanitary sewer systems on a municipal level, rainwater, you know, drainage, storm drainage systems. It also uses ultrasonics to do that same analysis of the flow rate of those pipes.
The Leak View, which is a piece of technology that we developed that allows us to determine whether or not a swimming pool is losing any water within 15 minutes. Seen as a Video Moment Technology that we invested in to aid us in training our technicians, but also, you know, for marketing our different services and products through Video Moment Technology with our clients and potential clients. Most recently, we have also started integrating or utilizing a Salesforce platform. We developed a Salesforce platform. We started about five years ago.
There's not many plumbing companies out there that can say they have adopted Salesforce as their CRM, but we did that just because we were able to identify the benefits driven by the data that we can capture through the utilization of that platform and how we can improve our customers' experience and our engagements with our customers through their entire life cycle, even after our work is complete. This next slide kind of gets into that customer life cycle. You know, early on, we were very focused on how can we non-invasively solve this problem and reduce the overall costs associated with addressing the issue that the client has. That was a very reactive approach. People would call us when they had a problem, and then we would go out and address it. We'd take care of it.
They were very happy because they knew that we minimized their overall costs and we made it a very clean process. We have started to incorporate other elements within that life cycle of the customer to where we are developing technologies that allow us to determine the ability of the, or the, how that infrastructure is, you know, performing and where there are issues with the infrastructure that allow us to identify those things and then get involved and actually repair those before it becomes a real issue. On the technologies, you know, on the detecting leaks, that would be like our proprietary listening equipment, our Leak View that I mentioned before, our Pulse Acoustic Device. We have leveraged relationships with all the national insurance carriers throughout the country.
Top 20 carriers in the country, we have a master services agreement with where they call on us to go out and address any issues related to water loss to mitigate those claims for the insurance clients. That, you know, obviously enables us to pinpoint the leaks for the clients. And then we go in and we actually address and we fix the leak with minimal damage because we were able to non-invasively determine where the leak is. We have the ability to assess the infrastructure, like I mentioned before, with the Pulse Acoustic Device. Most recently, we have incorporated a technology through a company called Streamlabs, which allows us to monitor the flow rate of water into a property and determine when there's flow that there doesn't need to be, meaning there's obviously a leak issue that needs to be addressed.
That technology has really kind of taken, allowed us to approach the whole preventive maintenance solution for these customers so that we are able to notify them if there's a problem before they even know a problem exists. This final piece of that puzzle was able to give us the ability to really complete that customer life cycle. Now we're able to come out, find their problem, solve their problem in a non-invasive manner, fix the problem, and then install a device that will allow them to be notified when a problem reoccurs or a problem comes back and minimize the damage that that problem would create. It really is a much more preventive maintenance approach as opposed to a reactive approach.
It is very favorable with the insurance industry because it allows them to mitigate the loss, that water loss, which, like Pat had said, water-related claims, ones that have nothing to do with natural disasters, non-natural disaster claims, is the most expensive claims that the insurance industry pays out annually. This slide just kind of speaks to that Salesforce platform that I was referring to. You know, it just kind of shows the different steps as we follow through. We, you know, along with Salesforce, were able to incorporate reporting methods, you know, that engagement with the client through the entire job process. Our reporting methods, you know, are really industry-leading. We were one of the first companies out there to digitize their reporting, plumbing companies to digitize their reporting.
Just acknowledging how we can incorporate technology to improve our efficiencies and the experience that our clients have.
Just to supplement what Will is saying with just a couple of headlines on our financials. Again, you'll see this as we go through it. First, in terms of revenue, as Will is saying, we have multiple channels of revenue: municipal business, commercial business, property management, insurance companies, and then the direct homeowners. You know, what we'll discuss in the next few slides is certain capabilities that we have that are really barriers to entry. One, because of our nationwide footprint, we're really a distribution platform. That, as Will was describing, as we begin to provide for the customer, we can sell more to the same. That allows us to really develop a subscription model, which would be unique in the industry. Because if you think about it, most times it's the homeowner calling the plumber, "I've got a leak," right?
Because of the collection of assets that we have, including our footprint, you know, the network effect of signing up the 20 biggest insurance companies and just really even these information products that we have, we really have the ability to take care of the customer through a life cycle and then continue to sell more to the same, right? Low customer acquisition costs. If you look at that, because of those characteristics, it's not only top-line growth, but we're able to do things efficiently in terms of EBITDA and then just really in terms of, because we have dry powders, as I said before, preserving EPS growth. I'm sorry. This you can look at in terms of the booklets that you have.
If you just look at the headline, you'll just see that, you know, we are consistent over the last five years in terms of double-digit growth, top-line all the way to bottom line. We've done a good job in terms of the last three years' inflation in terms of managing EBITDA margins. In terms of just everything Will has described, we've backed it up with the right type of financial metrics. Please, if you don't mind.
Yeah, yeah, this one just kind of goes through the revenue breakdown. You know, Pat had kind of alluded to before that we do have a royalty base because we are about a 60%, 40%, 60% franchise locations, 40% corporate store locations. We do have a pretty large royalty income component. The rest of it just kind of shows you what percentage of revenue is based on residential service, commercial service, our insurance clients that I was referring to before where we're going out and doing that work for those insurance carriers, swimming pools. That was really our where it goes back to our original roots, locating leaks in swimming pools. Of course, municipal, we do a considerable amount of work for different municipalities around the country, really around the world. Water Intelligence International is really focused on municipal leak location and infrastructure analysis.
We do have some, you know, equipment sales. A lot of that equipment that I was referring to before is all proprietary. We do sell that equipment back to our franchise system. This next slide just kind of goes through our revenue performance. A lot of that is centered around a distribution platform. Pat was, you know, referring to that before. I just said, you know, 60% franchise locations, 40% corporate stores. You know, we do have 150 locations, you know, throughout the country, 46 states. We do about 200,000 visits per year to different homeowners. It just kind of speaks to the opportunity that we have.
That footprint is really what's enabled us to leverage our opportunities with, you know, whether it be that Streamlabs device that we are now offering through Chubb Insurance or, you know, the different insurance carriers, which, you know, that number two kind of talking about the network effect, you know, all those different insurance companies that are utilizing our services to solve that problem and mitigate that risk for them. That kind of last component is utilizing that Salesforce data to constantly be engaged with our clients and position ourselves to where we can market back to those clients after the work is initially complete, both with the Streamlabs device and then using that Video Moment Technology to constantly be engaged with that client. How are we doing on time? Okay, yeah, this slide has a lot on it as well.
It's really kind of focused on showing how we utilize that data, that Salesforce data to market towards, you know, all different kinds of clientele that we have. I won't spend a ton of time on this because I think we're getting kind of low on time. Really, the root of it is that we are able to manage the client experience and, you know, really create like an aftercare type model to where we can provide them solutions long after we're there by monitoring the success and the health of their plumbing system and notifying them when there's an issue. Do you want to stop there and take questions or?
Just, yeah, just in the interest of time, let me just go to the punchline of capital allocation. If you look at the business we've described, several things. First, on the balance sheet, we have cash. If you look at our audit statement for the, or at least the unaudited statement for December 31, we had $12 million on the balance sheet. If you look at our EBITDA, we generated EBITDA just $15 million. We have cash, we generate cash, and our net debt to EBITDA ratio is 1.48. If you look at it, we can still, we have a bunch of private equity, private credit providers willing to, you know, provide us money to just go and put more money to work.
If you look at the capital allocation strategy, it's first, everything Will said about, you know, feeding organic sales growth, especially through our insurance channel. The second one is Will's described the variety of technologies that we've invested in have come online. The first two are really feeding organic growth. Again, the nice thing is it's a big addressable market and infrastructure is always a problem. The last two, one is, again, as Will pointed out, we're 60% franchise, 40% corporate. The franchise.
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The first two are really feeding organic growth. Again, the nice thing is it's a big addressable market and infrastructure is always a problem. The last two, one is, again, as Will pointed out, we're 60% franchise, 40% corporate. The franchisees do about $100 million of sales and about 25% EBIT margin. To the extent that.
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