Western Capital Resources, Inc. · OTC:WCRS
Western Capital Resources — Investor Presentation (October 2017)
16 slides from Western Capital Resources's investor presentation, Oct 26, 2017
Slide 1: WCR and Subsidiaries
WESTERNCAPITAL RESOURCES Wea WCR AND SUBSIDIARIES
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
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
Slide 4: Financial History (Western Capital Resources)
B. FINANCIAL HISTORY (WESTERN CAPITAL RESOURCES) Revenue (in thousands) Net Debt (in thousands) $140,000 $125,004 $1,500 $925 $1,000 $766 $120,000 $109,187 $500 $206 $100,000 $- $76,454 $(500) $80,000 $71,425 $(1,000) $55,608 $(1,500) $60,000 $(1,409) $(1,409) $40,760 $(2,000) $40,000 $32,889 $(1,78
Slide 5: Financial History (Western Capital Resources)
B. FINANCIAL HISTORY (WESTERN CAPITAL RESOURCES) Net Income Per Share Cash Earnings Per Share $0.70 $0.64 $0.64 $0.66 $1.60 $1.42 $0.60 $0.54 $1.40 $1.20 $1.14 $0.50 $0.45 $0.40 $0.42 $1.00 $0.40 $0.77 $0.81 $0.80 $0.30 $0.60 $0.49 $0.41 $0.20 $0.40 $0.10 $0.16 $0.20 $- $- FY2013 FY2014 FY2015 FY201
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 307 locations throughout the United States ‒ Retail Financial Services Division primarily in Midwestern
Slide 7: 2017 Update (PQH Wireless, Wyoming Financial Lenders, Express Pawn)
B. 2017 UPDATE (PQH WIRELESS, INC.; WYOMING FINANCIAL LENDERS, INC; & EXPRESS PAWN, INC.) ▪ Consumer Finance Division − Experienced revenue decline due to closure of six locations − South Dakota voters eliminated payday lending in state effective November 2016 − Pawn revenues and profitability remai
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
Slide 9: 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
Slide 10: 2017 Update (BCPII J&P, LLC)
B. 2017 UPDATE (BCPII J&P, LLC) ▪ Gains in J&P and Wayside offset by a decline in lower margin Wholesale division ▪ Reduced cancellations and labor while improving fulfillment and inventory (with new technology) ▪ Upgraded phone system and internet to fiber; will save approximately $35k annually ▪ R
Slide 11: 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
Slide 12: 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
Slide 13: 2017 Update (WCRS Restorers Acquisition Co., LLC)
B. 2017 UPDATE (WCRS RESTORERS ACQUISITION CO., LLC) Accomplishments ▪ Gross margin on plan at 53.0% YTD vs. 52.9% last year ▪ SG&A has been reduced to $2.35 million YTD vs. $2.65 million last year ▪ Reduced Inventory to $1.23 million YTD from $1.62 million last year ▪ Merchandising focus on Top 25
Slide 14: Exhibit B: Supplemental Financial Information
EXHIBIT B: SUPPLEMENTAL FINANCIAL INFORMATION
Slide 15: Descriptions
DESCRIPTIONS “Net Debt” is defined as Fund-Level debt and third party debt including capital lease obligations less cash. “Profit from Operations” is a non-GAAP measure. Profit from Operations equals pre-tax income, plus depreciation and amortization expenses and excludes interest expense (income),
Slide 16: Supplemental Financial Information
WESTERN CAPITAL RESOURCES, INC. SUPPLEMENTAL FINANCIAL INFORMATION (Dollars In Thousands) Western Capital Resources, Inc. FY2013 FY2014 FY2015 FY2016 TTM 6/30/17 YTD 6/30/16 YTD 6/30/17 Revenue $ 32,889 $ 40,760 $ 76,454 $ 109,187 $ 125,004 $ 55,608 $ 71,425 Gross Profit $ 20,762 $ 26,058 $ 48,144 $
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