By: Randy Fields July 2010 Consumer Driven Sales … Statement. ... • Haagen Dazs up 16%, Ben &...

28
Park City Group: Vision Consumer Driven Sales Optimization™ Investor Presentation By: Randy Fields July 2010 OTCBB: PCYG www.parkcitygroup.com

Transcript of By: Randy Fields July 2010 Consumer Driven Sales … Statement. ... • Haagen Dazs up 16%, Ben &...

Park City Group: VisionConsumer Driven Sales Optimization™

Investor Presentation

By: Randy FieldsJuly 2010

OTCBB: PCYGwww.parkcitygroup.com

2

Forward-Looking StatementStatements in this presentation that relate to Park City Group's future plans, objectives,expectations, performance, events and the like are "forward-looking statements" withinthe meaning of the Private Securities Litigation Reform Act of 1995 and the SecuritiesExchange Act of 1934. Future events, risks and uncertainties, individually or in theaggregate, could cause actual results to differ materially from those expressed orimplied in these statements. Those factors could include changes in economicconditions that may change demand for the Company's products and services andother factors discussed in the "forward-looking information" section and the "risk factor"section of the management's discussion and analysis included in the Company's reporton Form 10-K and 10-Q or current reports on Form 8-K filed with the Securities andExchange Commission. This presentation is comprised of interrelated information thatmust be interpreted in the context of all of the information provided and care should beexercised not to consider portions of this presentation out of context. Park City Groupuses paid services of investor relations organizations to promote the Company to theinvestment community. Investments in any company should be considered speculativeand prior to acquisition, should be thoroughly researched. Park City Group does notintend to update these forward-looking statements prior to announcement of quarterlyor annual results.

Our Business

Park City Group is a Software-as-a-Service (“SaaS”) provider that brings unique visibility to the consumer goods supply chain, delivering actionable information that ensures product is on the shelf when the consumer expects it. Our service increases our customers’ sales and profitability while enabling lower inventory levels for both retailers and their suppliers.

3

2010 Anticipated Performance

2009 Goals for 2010 July 20 Preliminary Results (8-K)

Revenue $6 Million FY2010 Revenue of ≈$11 Million

FY2010 Revenue of ≈$10.9 Million

Adjusted EBITDA Breakeven

Adjusted EBITDA of $2.3 Million

Adjusted EBITDA of ≈ $2.6 Million

Generating Net Loss Positive Net Income Anticipated Positive Net Income

6 Hubs Add 6 Hubs in FY2010 Added 8 Hubs in FY2010

Transaction-based Revenue Model

Commence Recurring Revenue Model

Accelerating Recurring Revenue Model

4

We Specialize in Unique Supply Chain Solutions for Retailers and Suppliers

Reasons To Invest in Park City Group

Recurring revenue model with multiple year visibility

Only scan based trading platform in the world Marquis customer list Beneficiary of the current economy High margin information service provider –

approx. 75% contribution margin Most revenue growth in 2012 and beyond

originates from existing customers Adjusted EBITDA and EPS Positive in 2010

5

Randy Fields, Chairman & CEO - Co-founder, Mrs. Fields Cookies

Robert Allen – former CEO of Southern Belle Dairy and EVP of Borden, Inc.

Peter Brennan – private brand authority and Vice Chairman of Daymon Worldwide

James Gillis - Co-CEO of Source Interlink Companies, Inc., a marketing and fulfillment company of entertainment products

Bob Hermanns – Director of Food Industry Programs at the University of Southern California and former CEO of Associated Grocers

Manly Molpus – President of The Molpus Advisory Group and former CEO of Grocery Manufacturers Association

Richard Krause –CEO of New England Confectionery Company

Impactful Board of Directors

Industry Experts & Access to Customers

8

Core Issue #1 -- Lost Sales

• 40% is the cost to retailers of intended sales• 31% will purchase at a competitor• 15% will delay their purchase• 9% won’t purchase the item at all

Source: Out of Stock study funded by P&G, sponsored by FMA, FMI and NACDS and conducted by Thomas W. Gruen,Ph.D., University of Colorado at Colorado Springs, USA and Dr. Daniel Corsten, IE Business School Madrid

When customers cannot find products they want…

9

Balance sheets are highly leveraged and there is constant pressure to reduce inventory but…

Core Issue #2 -- Supply Chain Complexity

Current Supply Chain Model Creates Problems for Both Retailers and Suppliers

10

11

Uniquely Solving the Industry’s Core Issues

Synchronize retailers/suppliers so they can actually exchange information

Align their financial interests with payment/invoicing protocols and systems

Enlist brain power of suppliers to help retailers manage complex businesses

Provide information to each side to identify and fix out of stocks and overstocks

Provide forecasting technology to improve store orders

Provide forecasting to help suppliers replenish retailer warehouses

Provide systems for suppliers to actually manage inventory flow to retailers

Help suppliers with overall demand planning and line sequencing

PCG’s Suite of Technology and Services That Tame the “Supply Chain Beast”

Actual PCG Customer Results

12

Park City Success Comparison – The DSD Categories

PCG dominant in these segments

13

Scan Based Trading• Routing efficiencies, waiting to be received at the back-door has been eliminated• Shrink running at 1%• Invoice discrepancies / post audits eliminated• Cost / Promo discrepancies decreased

Store Level Replenishment• 37% increase in unit sales to date• Haagen Dazs up 16%, Ben & Jerry’s up 45%, Deans/Edy’s/Breyers down 1%• Inventory reduction at store 50-66% while increasing sales and service• Less inventory/less carts = Less capital expenditure• BOTTOM LINE: Liberty exceeded Meijer’s expectations

Dean Foods / Liberty Ice Cream

14

Retailer Services

Retailer Benefits:

Improved Balance Sheet

Higher sales

Lower costs

Better visibility

15

Supplier Services

Supplier Benefits:

Improved Sales

Leaner supply chain

Lower costs

Better visibility

Improved ability to gain distribution

16

Retailer & Supplier ServicesPCG’s products and services come together to create a true partnership

between Retailers and Suppliers

17

Expansion to Retailer/Supplier Network

18

50 Retailers with average 250 spokes @ $700/mo each = addressable market of $105M/yr.

19

20

Recurring Revenue Model – Retail Hub

Average Recurring Revenue (Per Retail Hub)

Year-over-year revenues grow from the addition of new spokes each year

21

Recurring Revenue Model – Mega Hub

Average Recurring Revenue (per Mega Hub)

Financial Impact of Retail Hub Growth

3 Year Retail Hub Cumulative Growth Model

22

Financial Impact of Mega Hub Growth

3 Year Mega Hub Cumulative Growth Model

23

Consolidated Financial Impact of Hub Growth

3 Year Consolidated Hub Cumulative Growth Model

Revenues for illustration purposes onlyYear #’s are not fiscal periods24

Contribution Margin

25

26

One-of-a-Kind Technology Platform

Superior Sales and Operational Management Team

Deep Consumer Packaged Goods and Retailer Experience

Access to Many Global C-Level Decision Makers

Entrenched relationships with increasing number of well-known retailers and suppliers

Market Credibility and Experience Through Our Founder, Randy Fields of Mrs. Fields Cookies

Our Business is Strong and Growing

Summary: Our Competitive Advantages

Company SnapshotSymbol - OTCBB: PCYGCorporate Headquarters: Park City, UT 6/30/10 6/30/09

Stock Price: 52-Wk Range $1.35 – 4.50 ----

Stock Price 7-20-10 || $3.98 6-30-09 || $1.50

Total Common Shares Outstanding 10.9 Million 10.6 Million

Fully Diluted Shares Outstanding 13.9 Million 13.7 Million

Market Capitalization (Fully Diluted) $55 Million $21 Million

Enterprise Value (Fully Diluted) $69 Million $35 Million

Total Revenue $10.9 Million $6.0 Million

Recurring Revenue 79% 81%

Adjusted EBITDA $2.6 Million ($0.7) Million

Cash $1.2 Million $0.7 Million

Debt + LT Liabilities $4.4 Million $8.8 Million

Insider Ownership 58% ----

Institutional Ownership 11% ----

Fiscal Year End June 30 ----

27Note: Preliminary and subject to change pending the Company’s annual audit

Park City Group: VisionConsumer Driven Sales Optimization™

Thank You

OTCBB: PCYGwww.parkcitygroup.com