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Comprehensive software platform and Big Data analytics for contractors & building material suppliers
Solutions for the Home Improvement Industry
www.stagistics.com Created By
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Market Size Bridge will capture a piece of the efficiencies realized by its customers
$34.8
$158.5
5.4
16.3
0.0
5.0
10.0
15.0
20.0
$0.0
$50.0
$100.0
$150.0
$200.0
Exteriors All Home Renovations
2013 Professional Home Improvements
Expenditures ($ Billion) Projects (Million) Source: Joint Center for Housing Studies of Harvard University
Market Focus Next 2 Years - $35 Billion Exteriors Expenditures 5.4 Million Exteriors Projects Long-Term - $159 Billion Renovations Market 16 Million Renovation Projects
Competition • Traditional Way of Business – Pens, pencils, white boards, email, Excel, phone and fax • Software – Expensive, complicated and not integrated with distributors • Software has not been widely adopted by contractors and no company has a dominant market share
+ =
Stagistics Solution • We are an end-to-end contractor solution: CRM, scheduling, estimating, mobile applications and job
lifecycle tracking • We are the ONLY DMSI Agility-integrated product on the market
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Phase 1 Problem: Supplier Differentiation
• ABC Supply • SRS Distribution • RSG Supply • Richards Building Supply • Allied Building Supply
Suppliers • GAF • IKO • Owens Corning • CertainTeed • Tamko
Roofing Products Available
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Phase 2 Problem: Operational Inefficiencies
Delivery Notice = 3 Days
Manual Order Entry = Human Error
Limited Ability to Advertise = Lost Sales
No Contractor Sales Insight = Overstock
Weeks of Advance Notice
Automated Order Entry
Product Promotions Portal
Visibility Into Future Order Flow
Current Business Practice Stagistics Solution
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Revenue Model
Contractors FREE
Distributors
Base Monthly Fee plus
Transaction Fee (per order processed)
Fees
Data Aggregation Insurers, Lenders,
Real Estate
Data Analytics Enterprise Solutions
Data
Distributors Overstock Products
Manufacturers
New Products
Other Vendors Banks, Lead
Generation, etc.
Advertising
Go-To-Market Strategy
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Distribution Partners Product Partners
Agreements with key partners bolster access to contractors and provide enhanced product offering for distributors and their customers
• Dec. 2014 - Signed 6 month pilot to test Stagistics in 10 branches
• March 2015 - Invoiced 1st integrated deliveries
• May 2015 - SRS agreed to conclude pilot and roll out to all branches
• In the process of signing contract worth up to $400,000 with first payment expected in 3Q15
152 Branches in 38 U.S. States $1.2 Billion Sales in 2014
Sponsored by Berkshire Partners
• Jan 2015 - Integrated in 5 branches • April 2015 - Richards requested
additional 3 locations offer Stagistics
• August 2015 - Request to integrate in additional 14 branches
• In discussions for rollout to remaining targeted branches
60 Branches in 12 U.S. States Headquartered in Chicago, IL
Closely Held Private Company
June 2015 - RoofIQ formed
RoofIQ is powered by Stagistics and includes:
• SkyMeasure aerial measurement reports from CoreLogic
• Weather Fusion storm tracking from CoreLogic
• New business leads from Cole Information
Bridge will control sales and support and receive $40 per transaction
Leading Real Estate Info. Firm $1.4 Billion Sales in 2014
NYSE: CLGX / $3.6 Bn. Market Cap
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Case Study: Shake & Shingle, Colorado SRS Distribution’s Shake & Shingle branches in Colorado served as a pilot for a structured rollout
Results Through 6/30/2015
Contractors: 44 Companies 398 Users
Transactions: 93 Completed 221 Pending 558 Leads
0
20
40
60
80
100
January February March April May June
Contractor Signups & Transactions
Transac?ons Contractors
1/28/15 6/30/15
1/28: 1st branch visit
1/29: 1st signup. Rec’d contact list
2/5: Outbound phone and
email campaign
2/10: 1st order placed
3/17: Created first onboarding and training process
4/15: Formalized support process
5/15: Formalized onboarding and sales process
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Stagistics Adds Value
Results Show: Seamless ordering experience
leads to larger and higher margin orders for distributors
Contractors are spending more with Integrated Suppliers
$2,374
$3,499
$0
$1,000
$2,000
$3,000
$4,000
Non-Integrated Integrated
Average Order Size
+47%
Integrated Suppliers are receiving new business • 2015 pilot - 6 branches received 35 orders from new/secondary customers • Average new customer order size: $4,952
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Progress to Date
Results to date reflect contributions from only 14 integrated branches and 19 contractors
8 10 14 54 79 89 15 1 37
118 112 178
0
100
200
300
Jan Feb Mar Apr May Jun
Section Deliveries by Supplier Type January to June 2015
Integrated Non-Integrated
$1,250 $1,250 $1,903 $2,000 $2,000 $2,000 $27 $2
$329
$1,637 $1,955 $2,845
$0 $1,000 $2,000 $3,000 $4,000 $5,000
Jan Feb Mar Apr May Jun
Revenue Growth January to June 2015
Monthly Fee Transaction Fee
HIGH VISIBILITY GROWTH POTENTIAL 17 SRS/RBS branches integrated but not active
188 SRS/RBS branches not yet integrated
Pilot with ABC Supply started in July 2015
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Target Raise: $1,000,000 at $6 Million Pre-Money Value • Seed capital raised to date: ~ $1,000,000 • Funds to support employee payroll, mobile app development and increased travel and marketing expenses
• Preference for experienced tech investor to take an active role on the board
Exit Prospects • Real Estate Data Aggregator
e.g., CoreLogic / Verisk Analytics • Construction Software Developer • Home Remodeling Website/App
e.g., Porch.com / Houzz / Angie’s List • Private Equity • Distribution Company • Manufacturing Company • Insurance Company
Financials
Investment Return Potential Investment ReturnInvestment Date 15-Sep-15 15-Mar-16 15-Jan-17Pre-Money Valuation 6,000,000$ 12,000,000$ 30,000,000$ Investment Amount 1,000,000$ 2,000,000$ 2,000,000$ Post-Money Ownership (All Rounds) 11.5% 13.4% 6.3%2019 EBITDA 18,132,594$ 18,132,594$ 18,132,594$ Terminal Year Firm Equity Value 177,553,252$ 177,553,252$ 177,553,252$ Terminal Year Investor Equity Value 20,382,389$ 23,779,453$ 11,097,078$ Return on Investment 19.4X 10.9X 4.5X Internal Rate of Return 102% 92% 78%
3Q15 4Q15 2015 2016 2017 2018 2019Integrated Supplier Branches (EOP) 24 84 84 324 684 1,164 1,764
Stagistics Transaction Fees - Cash $47,295 $122,375 $176,465 $1,979,520 $10,054,712 $21,495,450 $36,214,410
RoofIQ Transaction Fees $0 $0 $0 $1,525,154 $6,972,372 $11,252,736 $14,248,872
Revenue - Cash Basis
Payroll Expense
Headcount
$53,964 $129,800 $200,962
$124,594 $219,831 $558,615
10 13 13
$3,634,124
$3,563,114
55
$17,646,284
$9,384,019
92
$34,123,386
$14,918,397
135
$52,810,482
$21,375,228
184
Free Cash Flow (Cash Burn) ($117,862) ($322,081) ($676,272) ($2,391,684) $3,634,285 $11,243,256 $19,656,784
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The Evolution of an Industry
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Disclaimer IMPORTANT NOTICES Bridge Software, LLC (“Bridge” or the “Company”) has developed Stagistics, a construction management software program to connect supply houses, contractors and subcontractors in one, innovative and user-friendly software program. The information contained in the preceding Slide Deck is presented to inform potential investors and interested parties of the beneficial functions of Stagistics and the Company’s plan to market and sell the software program. It summarizes the current market, the Company’s opportunity and strategy for growth, and the Company’s financial projections. Bridge is attempting to raise one million dollars ($1,000,000). The Units are being offered only to “accredited investors” (as defined by Regulation D of the Securities Act of 1933, as amended (the “Act”). There is no public market for the Units and no public market will develop as a result of this offering. THE UNITS HAVE NOT BEEN REGISTERED UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS, AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THESE LAWS. THE SHARES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES EXCHANGE COMMISSION OR ANY STATE REGULATORY AUTHORITY NOR HAS THE COMMISSION OR ANY STATE REGULATORY AUTHORITY PASSED UPON OR ENDORSED THE MERITS OF THE OFFERING OR THE ACCURACY OF THIS PRIVATE PLACEMENT MEMORANDUM. ANY RESPRESENTATION TO THE CONTRARY IS UNLAWFUL. THE UNITS MAY NOT BE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED. Cautionary Note Regarding Forward-Looking Statements and Future Prospects:
Certain statements made in this document, or made by the Company in other reports, press releases, conferences or otherwise, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words “believe,” “anticipate,” “expect,” “estimate,” “project,” “will be,” “will continue,” will likely result,” “plan,” or words of similar meaning. Forward-looking statements involve risks, uncertainties or other factors which may cause actual results to differ materially from the future results, performance or achievements expressed or implied by the forward-looking statements. These statements are based on the Company management’s beliefs and assumptions, which in turn are based on currently available information. Examples of forward-looking statements in this document include, but are not limited to, our expectations regarding our ability to generate operating cash flows and to fund our working capital and capital expenditure requirements. Important assumptions relating to the forward-looking statements include, among others, assumptions regarding demand for the Company’s products, pricing levels, the timing and cost of capital expenditures, competitive conditions and general economic conditions. These assumptions could prove inaccurate. Although we believe that the estimates and projections reflected in the forward-looking statements are reasonable, our expectations may prove to be incorrect. The following contains proprietary information of Bridge Software, LLC. It is intended solely to provide information to potential investors and interested parties. Such proprietary information may not be used, reproduced or disclosed to any other parties for any other purpose without the express consent of Bridge Software, LLC.
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Contact Information
Bridge Software LLC 2240 S. Brentwood Blvd. Brentwood, MO 63144
(630) 313–9181
(917) 400–0757
Geoffrey G. Jones Michael D. Braun
