Pbs Holding, Inc. · OTC:PBHG
Pbs — Investor Presentation (March 2006)
21 slides from Pbs's investor presentation, Mar 16, 2006
Slide 1: PBS Holding, Inc.
Slide 2: Safe Harbor Statement
Hie Safe Harbor Statement This presentation may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934. We have based these forward-looking statements on our current expectations and projec
Slide 3: Company Overview
Company Overview PBS is a holding company that through its subsidiaries provides comprehensive, value-added human resource services.
Slide 4: Investment Summary
Investment Summary » Large, High Growth PEO Market « $51 Billion in Revenues/Year (NAPEO) » Avg. NAPEO Member Grew 20%/yr in Recent Years > Strategic Acquisition > Fragmented Industry - 700 PEO's in 50 States >» Recouping Revenue from Strategic Relationships > Aggressive Expansion into New Markets >
Slide 5: PBS Key Facts
PBS Key Facts Symbol _ OTCBB: PBHG Corporate Headquarters Universal City, TX Stock Price! $0.60 bid - $0.65 ask 52:Week Trading Range $0.09 $1.01 Shares (basic & fully diluted) 10,893,367 Float (shares) 652,379, Market Cap? $7,080,688 Insider Ownership 94%
Slide 6: Management & Board
Management & Board > Rick Matthews — Chairman, President & CEO: + 13 years PEO industry experience; 22 years Insurance industry experience; Founded Primary Business Systems LLC 1999, 10 years corporate executive, » Amanda Sinclair? - COO & Director: + 6 years PEO industry experience; 2001 PBS Payrol
Slide 7: Competitive Advantages
Competitive Advantages >» Comprehensive Service Offering + HR Outsourcing + Permanent/Temporary Staffing + Insurance > Cross selling opportunities between subsidiaries + Strengthens Customer Relationships + Keeps the “Fox out of the Henhouse” > Personalized “Hands-On” Service a Industry Leading Accu
Slide 8: PBS Structure
PBS Structure > Outsourcing: Primary Business Systems, LLC Primary HR Services > Staffing: Concord Staffing Services > Insurance: Consumer Insurance Agency* wig + Ata wh paps PBS, Exeetese mete C2008
Slide 9: PBS Operating Units
PBS Operating Units » Primary Business Services LLC (Est. 1999) + PEO - Professional Services Organization — + Licensed in Texas + Focuses on business with 5-50 employees « Net Revenues of $4.8 mm Services: Payroll Processing & Tax Compliance, HR & Benefit fety and Risk Management mncord Staffing Se
Slide 10: PBS Operating Units (cont'd.)
(cont’d.) PBS Operating Units » Primary HR Services LLC (Est. 2004) "Scale-up’ PEO services in Mississippi Net Revenues $54k > Consumers Insurance Agency LLC (Est. 2002) Hie Full Lines Agency — General Liability, Commercial Auto, Property & Equipment and Umbrella Privately owned by Affiliates Rick M
Slide 11: PBS Historical Performance
PBS Historical Performance > Growth Company Focused on Expanding Market Share » Successive Year-to-Year Quarterly Growth + Net Revenues Increased 9 quarters through 4Q 05 > Enhanced Profit Margins + Gross Profit Increased 10 Quarters through 4Q 05 ($in000's) || 10042004 | saos | aa4 | Fvos || 1005 |
Slide 12: Historical Performance
Historical Performance
Slide 13: PBS Growth Strategy
PBS Growth Strategy > Maintain Strong Internal Growth + Grew Revenue Up 24% in FY 2004 « Grew Net Revenue 47% in FY 2005 > New Market Development - Entered Mississippi Market 2004 « Entered Houston Market Late 2005
Slide 14: Growth Strategy (cont'd.)
{cont’d.) Growth Strategy > Strategic Acquisitions Focusing on the Southern States along the I-10 Corridor « Provide Operational Economies « Improves Cost Structure + Staffing Synergies + Increase Market Share
Slide 15: Heart Acquisition
Heart Acquisition > Definitive LOI Acquire Heart Employee Leasing + Acquisition Benefits Operational economies Improves cost structure Staffing synergies Increases Company Net Revenues to + $10 mm Redeemable Gon + Targeting April 26 Close Tie
Slide 16: Heart Acquisition: Impact on Financial Performance
Heart Acquisition Impact on Financial Performance Heat || Historical Projected Historical ProForma Proforma (combines || (Combined) Ginoo0') || Fvos | Fos || rvos | Fros || Fros | FYo7 [Net Revenue seaei | ssari || s9se0 | si0200) | siaase [siaat0 [ross Proft $2,192 | $2416 | | $3650 | saeos | | $55
Slide 17: Projected Growth
Projected Growth #1899900/"| Net Revenue » Gross Profit $12800.000] HUG. Axecpaesconbinson of Heat Employee Leaing, nc and 20% sowh
Slide 18: Capital Structure
Capital Structure Current Pro Forma® Common Shares Issued & Outstanding 10,839,367 10,839,367 Cashless Warrants, 2 yrs @ $0.12 405,000 405,000 Warrants, 2 yrs @ $0.40 134,375, 134,375 Cashless Warrants, 2 yrs @ $0.43 210,000 210,¢ Cashless Warrants, 5 yrs @ $0.60 450,000 460,000 Private Placement 8,
Slide 19: Comparable Analysis
Comparable Analysis HR Companies HR Category PE Ratio” Gevity HR (GVHR) HR Outsourcing 18 Spherion (SFN) Staffing Services 52 ‘Administaff Inc. (ASF) HR Outsourcing 45 Kelly Services (KEYLA) Staffing Services 24 HR Outsourcing 20 Barrett Business Systems (BBS!) HR Services Industry? ses 30
Slide 20: Summary
Summary > High-Growth HR Provider » Comprehensive Value-Add Services > Negotiating Major Acquisition « Heart Employee Leasing Inc. + Anticipated Doubling Net Revenues of PBS. > Implement Strategic Acquisition Plan
Slide 21: Searchable text section of graphics
Searchable text section of graphics shown above [G RAPHIC] PBS HOLDING, INC. PBHG March 2006 Sa fe Harbor Statement This presentation may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1