Sample PE-Company Presentation from Robert Bartolacci - Copy

Facility and Business Services –y

•Infrastructure Management Services

Large enough to be a full-service provider,Small enough to be responsive to individual client needs.

1X-Company Proprietary as per the Confidentiality Agreement

X’s X’s Current PositioningCurrent Positioning

Premiere Intelligence Community (IC) reputation, key strategic contacts, t t di f d d l t t foutstanding performance record, and relevant past performance

In depth understanding of Agency facility support needs, relationships, budget structure, and sensitivities

Relationships and awareness at other IC player locations due to rotation of agency personnel

Large, talented and cleared workforce (Approximately 610+)g , ( pp y )

Several years remaining on FS contract to introduce new relationships and expand service offerings beyond X’s current offerings (construction, energy)

Profitable platform with excellent reputation good solid backlog provenProfitable platform with excellent reputation, good solid backlog, proven management, and opportunities to expand

Need to capitalize on current positioning and become part of a larger platform to seize immediate growth opportunities and position due to market changes

2

to seize immediate growth opportunities and position due to market changes

X-Company Proprietary as per the Confidentiality Agreement

Functional Relationship of Functional Relationship of XXCorporate

•Banking* •Consolidated Financials*•HR Policy*

•Payroll

•Expense Reimbursement

•Benefits Administration

•Insurance*

•Credit Cards

•Lease Obligations•Security Compliance (DOD)

•Contract Administration

•Lease Obligations

•AR/AP

•Customer Status Reports

X-Co. Regional

FS Contract

•Operations Management

•Recruiting FS Contract•Timesheet Authorization

•Marketing

•Target Acquisition/Evaluation

Proposal De elopment

•Stand Alone Per Contract Requirement Except for * Functions At Corporate

3

•Proposal Development •Locals 99 & 32 BJ

•GMS provides Recruiting & Security


Strategic Infrastructure OfferingStrategic Infrastructure OfferingOrganization’s Mission

Optimize Strategic Use of Assets to

A li h Mi iX-Co’s Offerings

•Asset Management•Work Management•Resource Assessment/Allocation

Accomplish Mission

Operate &

Identify Strategic Use/Impact of Assets

g

• Infrastructure Managementand upgradeA t O ti i ti Asset •Ops. & Maint.

Maintain Assets

Upgrade/Replace A t

• Asset Optimization• Logistics• Personnel Support

Asset Optimization

Life Cycle

Ops. & Maint.•Establish Process & Systems

•Manage/Execute

Assess Assets

Assets

•Program & Project Mgt•Program Execution•Optimization

“Dynamic Re Cap” C ti I t (P ti )

4

Dynamic Re-Cap •Continuous Improvement (Programmatic)•Infrastructure Evaluation

•Approach •Skills•Condition X-Co. Proprietary as per the Confidentiality Agreement

Our ServicesOur Services

Mission Support Outsourcing Services

Facilities, Operations and Maintenance Management

Inventory ManagementUtility Systems Operations and MaintenanceUtility Systems Operations and MaintenanceLogistics / Procurement Services Site Support ServicesHousekeepingRoads and GroundsTechnology ServicesInformation TechnologyFacility AssessmentConstruction Management / Owner RepresentationConstruction and RenovationConstruction and RenovationSecurity, Fire and Emergency Response Services and PlanningHuman Resource ManagementEngineering Design ServicesWaste Management



Operations and MaintenancePlant Maintenance Roads and Ground MaintenanceBuilding MaintenanceLandscaping ServicesHuman Resource ManagementHuman Resource ManagementFinancial ManagementPublic AffairsCommunications and PrintingMail Distribution Engineering Support ServicesHousing & Food ServicesTelephone and TelecommunicationsJanitorial

g g ppEngineering DesignConstruction ManagementProject ManagementProgram CoordinationgProduction ControlFacility ManagementEnvironmental ComplianceEnvironmental ProtectionNatural Resource Protection


Natural Resource ProtectionTelecommunications Engineering Support


T h i l S t S i

Security Fire & Emergency ServicesInstallation Security Police

PhotographyMachining and FabricationShop Planning & Construction

Technical Support ServicesInstallation Security PoliceIndustrial SecurityComputer SecurityElectronic Security SystemsFire Safety and Fire Protection

Shop Planning & ConstructionShop ManagementInstrument CalibrationEquipment Service & RepairInventory Management

Emergency Fire ResponseEmergency Medical ResponseEnvironmental Health & SafetyIndustrial HygieneDisaster Preparedness y g

Technical TrainingGraphics ProductionLibrary ManagementManagement Information Systems

Disaster Preparedness


Our ServicesOur ServicesInfrastructure Support Services

Computer Aided Facility Management (CAFM)Computer Integrated Facility Management (CIFM)Computerized Maintenance Management

Systems (CMMS)Knowledge ManagementSpace PlanningSpace PlanningComputer Aided Drafting (CAD)

LogisticsProcurement and PurchasingContract AdministrationWarehouse ManagementWarehouse ManagementInventory Management Inventory Distribution and SupplyTransportationVehicle Maintenance


Our ServicesOur ServicesAdministrative Support Services

Finance and Contract: Budgeting/Funds Management, Accounting, Payroll, Financial Systems, Acquisition Support, Internal Audits

Work Control: Planning and Scheduling, Cost Estimating CE Programs (Long-RangeEstimating, CE Programs (Long-Range Planning, Real Property Administration, Project Documentation, Site Plans and Surveys), Program Management, Customer Service, Material Control, Operations Center

Health & Safety ServicesHealth & Safety Procedure DevelopmentHealth and Safety Manual DevelopmentHuman Resources: Labor Relations;

Compensation: Benefits: Training/EEO: Staffing: Office Operations

Health and Safety Manual DevelopmentFacility and Program Audits & AssessmentsSafety Committee Development and

Implementation OSHA Compliance Support ServicesTraining ServicesEmergency Response Planning And TrainingDrill And Exercise Development & FacilitationWorkplace Violence Programs


Current ContractsCurrent Contracts

nce

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l ms t nt ing

rt

Current Contracts

ON-SITE SUPPORT SERVICES CONSULTING & TECHNOLOGY INFRASTRUCTURE SERVICES

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C-77 X X X X X X X X X X X X X X X X X X X X X X X X X X X X X XC-80 X XC-83 X X X X X XC-86 XC-88 X XC-89 X XC-92 XC-94 X X X X X XC-96 XC-97 XC-98 XC-99 XC-100 X X X X X X X X X XC-101 X


C-102 X

Historical Synopsis of Historical Synopsis of XX--CompanyCompany

1989 – 1995DOD Focus

•Arnold Engineering

1996 – 2000•Impact of Tribally Owned Market Forces

2001 – 2006•Major Expansion with Agency Both FS and New Awards

2007•ODNI Budget Pressure “Tax”

2008•Decision to Explore Strategic Options Due to Market Changes

Development Center

•Charles Melvin Price Support Center

•DOI – Bureau of Mines

•Pressure From “Hardware” Players Emerging Into Services Arena

•Concentration on Classified Environment

Awards

•Developed International Support Capability

•CLINS Increase From 2 to 9 to Give Agency Flexibility

Expand into FBI

•CLIN Funding Shift to Increased Customer Funded Within Working Capital Contract

•Trend of Large Contracts

•Opportunity to Partner with Several Major Companies due to SSI Performance History and Expertise (BAH, General Dynamics, Raytheon, Boeing, Versar•Invited to Bid With

Agency

•Successful on Facility Support Contract

•Expansion of Agency Contract And Relationships With NGA (DMA/NIMA), USMS

•Expand into FBI

•Develop Large and Multi-Skilled Cleared Workforce

•Market/Contract Consolidation

•Teaming on NROVersar

•Focus on Developing Expertise in Regional Office

•Focus on Adding Depth and Competency to FS Staffp yGrowth in Renovation and Furniture Management


Future ExpansionFuture Expansion

Re-capitalization Support

Increased Renovation & Construction

Furniture program

Increased strategic training

Expansion of FBI relationship

Expansion of Multiple Award Schedule activity


S.W.O.T. AnalysisS.W.O.T. AnalysisStrengths•Broad and successful

i i ll f t f

Weaknesses•Rapid growth of major

Opportunities•Continued expansion in

Threats•Increased competition

experience in all facets of Infrastructure Management

•Key strategic contract and relationship in IC

contract has created profitable but unbalanced portfolio

•Rapid growth of major t t h di t d

Agency and within IC

•Growth opportunities in renovation, OCONUS construction and

f

by large players in cleared facility market

•Consolidation of contracts into mega

ff t ld l tand relationship in IC

•Large contingency of cleared Facility Support personnel

contract has diverted resources from Business Development and diversification

B i

renovation, furniture program, and re-cap execution and support

•Expansion into cleared t f DOD

efforts could relegate SSI into Sub-K role

•Increased Sub-K role creating commodity

iti d fit•Strong reputation for integrity and performance in Agency and related organizations

•Business Development/Capture approach begins too late in opportunity cycle

components of DOD

•Teaming relationships presenting new opportunities

position and profit reduction

•Future commodity market could adversely impact current•Nimble and dedicated

workforce

•Proven management at all levels of the

•Suitors wanting to develop strong IC position recognize value of FS contract and working relationships

impact current successful culture

13

organization

•Performance oriented culture & satisfied workforce

relationships


Strengths of Strengths of XX--CompanyCompany

Access to over 600 cleared, highly skilled resources

Moreover, X’s unique ability to backfill internal transfers with non-cleared personnel allows for continuity of revenue and immediate organizational growth

X-Co. has experience in recruiting, screening, and processing personnel for security clearances. For example, based on 13 years of Agency experience and i t ti h i d l d f d l i f i linteraction, we have received numerous accolades for developing a professional and effective clearance process

X’s recruitment staff screens an average of 366 new candidates per month

X’s holding pool has 4 354 candidates of which over 500 already possess a


X s holding pool has 4,354 candidates of which over 500 already possess a security clearance.

X-Co’s ServicesFederal Services Revenue History & Growth

$250,000,000

$300,000,000

X provides emergency planning services to FBI

X builds / staffs FBI's Building Op Center

X teams on mulitple 10-year projects

X begins multi-year FS-facility recapitalization support

$200,000,000

Overseas logistics contract awarded

X Center wins contracts for majority of Penna.

X begins agency-wide, multi-million dollar turn-key furniture procurement

X wins 3 "teamed" personnel svcs contracts with defense firms

X Center wins multi-million dollar FEMA award

$150,000,000Shuttle Contract increases by 50%

g

X's X Center supports DHS for the 2006 All Star Game

FS contract's award fee increases by 65% for current & future years

X begins multi-million dollar construction projects

$100,000,000

Re-win of 5 year LOC contract.

Re-win of 5 year USMS contract.

X begins overseas contracts which renews for 3 terms

Develops the X Center and wins $3M award with PEMA

X purchases an automated controls entity with multi-state territories

$0

$50,000,000 Re-win of 10 year FS contract.

X is listed on the MASC purchasing schedule

15

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009e 2010e 2011e 2012e 2013e

XX--Company Company Federal ServicesFederal ServicesRevenue Composition & HistoryRevenue Composition & Historyp yp y

$120,000,000

$140,000,000

Avg. Annual

Pre- Corp. Overhead Operating

$100,000,000

Annual Growth

Operating Margin

17.0% 8.4%

17.0% 7.1%

$60,000,000

$80,000,000

$40,000,000

$0

$20,000,000

2002 2003 2004 2005 2006 2007 2008

26.0% 17.3%

2002 2003 2004 2005 2006 2007 2008

Non-FS ContractsFS ContractTotal X-Co Federal Services

XX--Company’s Company’s Government ServicesGovernment Services2008 Improvements to Receivables & Invoice Processing Days2008 Improvements to Receivables & Invoice Processing Days

$10,889,084

57

56

58$12,560,000

Average Invoice isAverage Invoice is $52

54$9,420,000

Average Invoice is

$3,140,000

Average Invoice is

$3,140,000 Average Invoice isAverage Invoice is

$7,817,390

50$6,280,000

$ , ,$3,140,000$3,140,000

48

46

48

$3,140,000

42

44

$0

17

Pre-effort Post-effort

Average Invoice is

$3,140,000

Average Invoice is

$3,140,000 Avg Monthly Receivables Operating Cycle

XX--Company Company Government ServicesGovernment ServicesEffects of the 2008 Improvements on borrowings and capacity to finance growthEffects of the 2008 Improvements on borrowings and capacity to finance growth

10%

t 33% drop

8%

f Con

trac

t Cos

t

Average

Good

33% drop

4%

6%

lanc

e as

a %

of

GreatExceptional

2%

4%

onth

ly L

OC

Ba

Lowest (if technologically possible)

0%One month (1/12) Pre-Improvement Post-Improvement Lowest Possible

Requirement

M

18Financing needs as a % of Contract Cost (LOC balance divided by Annual Contract Value)

XX--Company Company Government ServicesGovernment Services2008 Improvements to Receivables & Invoice Processing Days2008 Improvements to Receivables & Invoice Processing Days

60$12 560 000Billing cycle days, 57

48

60$12,560,000

X-Co. improved its billing cycle* in 2008 by reducing invoice-generation time 16%

from 57 to 48 daysAverage Invoice is

$3,140,000

Average Invoice is

$3,140,000Billing cycle days, 48

36

48

$9,420,000

vabl

es

from 57 to 48 days.

Average Invoice isAverage Invoice is Average Invoice isAverage Invoice is

$1,469,084$1,469,084 $1,537, 930$1,537, 93036

$6,280,000

lling

Cyc

le D

ays

tsta

ndin

g R

ecei

v

The improvement reduced X’s monthly:•Receivables by $3.1M, (one whole FS invoice!)•Monthly interest costs by $5,900 per month

The improvement’s effect is the same as tweaking a car’s engine to drive 16% faster while using 30% lessg

$3,140,000$3,140,000g

$3,140,000$3,140,00024

$3,140,000

Bi

Avg

. Out car s engine to drive 16% faster while using 30% less

gas. Moreover, equating interest cost to gas octane, the car now operates on cheaper 87 octane instead of the more costly 93 octane-gas. Win-win-win.

The improvement’s effect to X-Co:• Increased borrowing capacity for new growth

Average Invoice is

$3,140,000

Average Invoice is

$3,140,000Average Invoice is

$3,140,000

Average Invoice is

$3,140,000

12c eased bo o g capac ty o e g o t

•Less interest costs mean more financial health

•Less cash needs despite growing operations

•Savings redeployed to further reduce borrowings

19

0$0Before Improvement After Improvement

* The total number of days beginning on the first day of a new invoice period, through internal generation of the customer invoice, through receipt of payment from the customer

XX-- Company Government Company Government ServicesServicesEffects of the 2008 Improvements on borrowings and capacity to finance growthEffects of the 2008 Improvements on borrowings and capacity to finance growth

Additional b i

Additional borrowing AdditionalAdditional

apac

ity

city

$15,000,000

Administrativeborrowing capacity to

support $113Min new

borrowing capacity to

support $113Min new

Additional borrowing capacity to

support

borrowing capacity to

support $203Mni

ng B

orro

win

g C

a

g B

orro

win

g C

apac

$12,000,000

g Li

ne o

f Cre

dit Administrative

improvements caused a drop in the amount of capital (cash) required to operate. That drop, in in new

contractsin new

contracts $203Min new

contracts

$203Min new

contracts

Rem

ain

Rem

aini

ng

$9,000,000

pany

's O

pera

ting

conjunction with its resultant $2.2M reduction in borrowings, has virtually DOUBLED X’s capacity

Slower administration

caused a higher need for monthly

line of credit borrowings ($6.6M)

&Higher invested

Slower administration

caused a higher need for monthly

line of credit borrowings ($6.6M)

&Higher invested

Faster administration

caused a 33% lower need for monthly

Faster administration

caused a 33% lower need for monthly n

Bal

ance

ce

$6,000,000

Valu

e of

X-C

om

DOUBLED X s capacity to finance new contracts or growth.

Higher invested capital required to

support the FS project’s annual

revenue of (7.4%)

capital required to support the FS

project’s annual revenue of (7.4%)

need for monthly line of credit

borrowings ($4.4M)&

lower invested capital required to


revenue of (5.2%)

yline of credit

borrowings ($4.4M)&

lower invested capital required to


revenue of (5.2%)

Loan

Loan

Bal

an

$0

$3,000,000 Under its current structure and financial administration, X is capable of growing to $300M/year in revenue.

20

$0Pre-Improvement Post-Improvement

$300M/year in revenue.

XX--Company Company Government ServicesGovernment ServicesMeasures of Growth, Strength & SustainabilityMeasures of Growth, Strength & Sustainability

20%25%30%35%40%

Return on Assets

Diligent efforts to improve receivables cycles and strategically deploy cash have

Profits, bolstered by improved fee at X’s largest contract are redeployed into new

$3,000,000

$4,000,000

$5,000,000Net Profit

0%5%

10%15%

2004 2005 2006 2007 2008

Return on Assets

deploy cash have optimized X’s use of assets

redeployed into new staffing for future growth.

$0

$1,000,000

$2,000,000

2006 2007 2008 2009est

Profit Profits Redeployed into New, Strategic Hires

300%

400%

500%Return on Equity

$150 000 000

$200,000,000

$250,000,000

$300,000,000Financial Capacity to Support Growth

Although not traded on the stock market, X has exceeded the market expectations for our

Strong fiscal management and increasing lender confidence has

— Non-FS contract profits

0%

100%

200%

2004 2005 2006 2007 2008

Return on EquityIndustry Average

$0

$50,000,000

$100,000,000

$150,000,000

2004 2005 2006 2007 2008

Financial Capacity to support growth

expectations for our industry over the last 3 years

raised X’s ability to finance a 6-fold growth in its revenue since 2004.

8%

9%

10%Gross Margin

$1.00

$1.50

Current Ratio

Growth in the higher-margin non-FS contracts, combined

ith hi h i fi d

X’s conservative fiscal policy is to keep more

215%

6%

7%

2004 2005 2006 2007 2008

Gross Margin

$0.00

$0.50

2004 2005 2006 2007 2008 2009

Current RatioSafe Limit

with higher-margin fixed price jobs within the FS contract result in an increasing gross margin

policy is to keep more than sufficient funds available to pay its obligations

Net Profit

$4,000,000

$5,000,000

$2,000,000

$3,000,000

$0

$1,000,000

2006 2007 2008 2009est

Profit Profits Redeployed into New, Strategic Hires— Profits from Non-FS contracts

FS ConsiderationsCLIN 07 to 08 Expected 09+O&M Down ($3.4M) Up

22

($ ) pO&M Other Up FlatRecap Up UpCust Fund. Flat DownTiger Team Down DownFurniture Up Up3rd Shift Up Up

Non-OFM Revenue Trend & Growth

12,000,000

14,000,000

8 000 000

10,000,000 Trend of 31% avg Growth

6,000,000

8,000,000

2,000,000

4,000,000

02003 2004 2005 2006 2007Unaudited 2008

Risk of revenue variability is very low and completely explained in 1.3 Std. Dev. Moreover the Std. Dev. would be even lower but for X's tremendous growth.

23

Actual Non-OFM Revenue Linear (Actual Non-OFM Revenue)

300,000,000

X-Company ServicesRevenue Composition, History & Projection

250,000,000

18%1%

Higher-margin, consistently growing non-FS activities represented 20% of the revenue, but 40% of 2008's Pre-OH Net Margin.

150,000,000

200,000,000

18%

22%59%

2008 Pre-OH Net Margin

100,000,000

0

50,000,000

2002 2003 2004 2005 2006 2007 2008 2009e 2010e 2011e 2012e 2013e 2014e 2015e 2016e 2017e 2018e

Non-FS Contracts X-Co Sibling X-Company Start-up FS Contract

Non-FS contracts: 26% avg growth, 17.3% X Co Sibling: 14% avg growth 6% operating margin

FS contracts: 17% avg growth, 7.1% operating Contractual backlog of approx. $270M (and more than $25M corresponding pre-overhead margin) is expected to yield over $487M in backlog and $44.5M in pre-OH margin, based on

t l FS l i i b 5% l N FS i i b

24

X-Co Sibling: 14% avg growth, 6% operating marginX-Co Startup: 200% growth since start-up, 50% op. margin

actual FS volume increasing by 5% plus Non-FS increasing by its historical 26%.Pending 2009 proposals could Non-FS revenue and margins by 200% increase with a backlog over $100M

Documents

Sample PE-Company Presentation from Robert Bartolacci - Copy