Western Capital Resources, Inc. · OTC:WCRS

Western Capital Resources — Investor Presentation (October 2016)

16 slides from Western Capital Resources's investor presentation, Oct 25, 2016

  1. Slide 1: WCR and Subsidiaries

    Wea WESTERNCAPITAL RESOURCES WCR AND SUBSIDIARIES

  2. Slide 2: Disclosure

    DISCLOSURE Some of the statements made in this report are “forward-looking statements,” as that term is defined under Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based upon our current expectations and projections abo

  3. Slide 3: Company Overview (Western Capital Resources, Inc.)

    A. COMPANY OVERVIEW (WESTERN CAPITAL RESOURCES, INC.)  Acquired a controlling interest in 2010 in Western Capital Resources, Inc. (“WCR”), a publicly held company by purchasing the preferred stock and part of the common stock for $5.4 MM − Small, orphan public company operating in a heavily regulat

  4. Slide 4: Financial History (Western Capital Resources)

    B. FINANCIAL HISTORY (WESTERN CAPITAL RESOURCES) Revenue (in thousands) Net Debt (in thousands) $120,000 $2,500 $2,242 $104,824 $2,000 $100,000 $1,500 $925 $76,454 $766 $80,000 $1,000 $55,608 $500 $206 $60,000 $40,760 $- $40,000 $32,889 $(500) $27,238 $(1,000) $20,000 $(1,500) $- $(2,000) $(1,786) $

  5. Slide 5: Financial History (Western Capital Resources)

    B. FINANCIAL HISTORY (WESTERN CAPITAL RESOURCES)  Based on the stock price of $4.00 as of 9/30/16, the Company is trading at a P/E of 6.3x Net Income Per Share Cash Earnings Per Share $0.70 $0.64 $0.64 $1.60 $1.42 $0.60 $0.54 $1.40 $0.50 $0.45 $1.20 $0.40 $0.97 $1.00 $0.40 $0.77 $0.80 $0.30 $0.21 $

  6. Slide 6: Company Overview (PQH Wireless, Wyoming Financial Lenders & Express Pawn)

    A. COMPANY OVERVIEW (PQH WIRELESS, INC.; WYOMING FINANCIAL LENDERS, INC; & EXPRESS PAWN, INC.)  Provider of retail financial services and retail cellular phones to consumers through a network of 160 locations from central to western United States ‒ Retail Financial Services Division primarily in Mi

  7. Slide 7: 2016 Update (PQH Wireless, Wyoming Financial Lenders & Express Pawn)

    B. 2016 UPDATE (PQH WIRELESS, INC.; WYOMING FINANCIAL LENDERS, INC; & EXPRESS PAWN, INC.)  Consumer Finance Division − Experienced revenue decline due to closure of four payday advance locations in Utah − Pawn revenues increased with 3rd location opened in July 2014 and continues to ramp up sales;

  8. Slide 8: Results (PQH Wireless, Wyoming Financial Lenders & Express Pawn)

    C. RESULTS (PQH WIRELESS, INC.; WYOMING FINANCIAL LENDERS, INC; & EXPRESS PAWN, INC.)  Purchased majority interest in the business in April 2010  Purchase price of $5.4 MM including fees and expenses ‒ BCP II investment of $3.0 MM ‒ Bridged the remaining $2.4 MM through Fund’s EagleBank line of cr

  9. Slide 9: Company Overview (AlphaGraphics, Inc.)

    A. COMPANY OVERVIEW (ALPHAGRAPHICS, INC.)  Franchisor of B2B quick printing locations specializing in the planning, production and management of document and marketing solutions for businesses of all sizes − Company also collects and administers marketing fund  45+ year brand; Top 200 Franchisor 

  10. Slide 10: 2016 Update (AlphaGraphics, Inc.)

    B. 2016 UPDATE (ALPHAGRAPHICS, INC.)  Recruited new President, Chief Technology Officer and Chief Marketing Officer in last 18 months  Promoted Director agSigns to VP Franchisee relations to improve franchisee communications  5.1% U.S. System-wide sales and 3.4% U.S. Same Center sales growth as o

  11. Slide 11: Results (AlphaGraphics, Inc.)

    C. RESULTS (ALPHAGRAPHICS, INC)  Acquired on January 18, 2012  Allocated $7.6 MM purchase price (with CMG $8.021 MM) ‒ BCP II investment of $3.6 MM ‒ $4.0 MM senior bridge on Fund’s EagleBank Line of Credit (now $0)  Dividend Recap in August of 2013 with East West Bank  Gross realized cash multi

  12. Slide 12: Company Overview (BCPII J&P, LLC)

    A. COMPANY OVERVIEW (BCPII J&P, LLC)  Catalog and internet retailer/wholesaler of branded roses, plants, seeds and other horticultural- related products based in Greenwood, SC with three brands: – Jackson & Perkins— Founded 1872; sells premium bare-root roses, live trees and perennials with a stron

  13. Slide 13: 2016 Update (BCPII J&P, LLC)

    B. 2016 UPDATE (BCPII J&P, LLC)  Strengthened organizational chart by adding dedicated Chief Technology Officer and Chief Marketing Officer  In 2Q16, created a cross functional savings task force teams – goal to achieve $100k reduction in annual expenses  Sales increase YTD driven by Wayside Gard

  14. Slide 14: Results (BCPII J&P, LLC)

    C. RESULTS (BCPII J&P, LLC)  Acquired the business on August 25, 2010  Purchase price of $8.7 MM inclusive of fees and expenses ‒ BCP II investment of $6.0 MM  Distributed $3.6 MM from company and $1.8 MM on real estate for a total of $5.4 MM  Since July 1, 2015, JPPA and JPRE are now owned by a

  15. Slide 15: Company Overview (WCRS Restorers Acquisition Co., LLC)

    A. COMPANY OVERVIEW (WCRS RESTORERS ACQUISITION CO., LLC)  Catalog and internet retailer of reproduction vintage home restoration and renovation products  Revenue generated through two channels: ─ Residential – 85% ─ Contractor/Trade – 15%  Utilizes third party 3PL for call center, operations, an

  16. Slide 16: 2016 Update (WCRS Restorers Acquisition Co., LLC)

    B. 2016 UPDATE (WCRS RESTORERS ACQUISITION CO., LLC) Accomplishments  Gross margin improved to 52.9% YTD vs. 47.9% last year  SG&A has been reduced to $2.6 million YTD vs. $2.9 million last year  EBITDA improved to $1.1 million YTD vs. $686k plan and $670k last year  Merchandising focus on Top 3

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