![]() ClearPoint Business Resources, Inc. (Nasdaq: CPBR) Business Strategy Update August 2007 Exhibit 99.2 |
![]() Forward Looking Statements This presentation contains 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, as amended.
Forward-looking statements involve risks and uncertainties that could cause results or outcomes to differ materially
from those expressed in the forward-looking statements.
Forward-looking statements may include, without limitation, statements relating to ClearPoint's plans, strategies, objectives, expectations and intentions and are intended to be made
pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Some of the
forward-looking statements can be identified by the use of forward-looking terms such as "believes," "expects," "may,"
"will," "should," "could," "seek," "intends," "plans," "estimates," "anticipates" or other
comparable terms. The risks and uncertainties discussed
in the section "Risk Factors" included in the reports
filed by ClearPoint with the SEC should be considered in evaluating ClearPoint's forward- looking statements. Such risk factors could cause actual results to differ materially from those in the forward-looking statements. You should not place undue reliance on ClearPoint's forward-looking statements. Further, any forward-looking
statement speaks only as of the date on which it is made, and ClearPoint undertakes no obligation to update or revise any forward-looking statements.
|
![]() Overview ClearPoint ahead of plan to expand base of recurring revenue Substantial portion of business recurring revenue by end of Q3 Transformation of staffing business to Franchise model Recurring 4-8% license fee Integration and transformation of recent acquisitions provide compelling
mix of workforce solutions for large and mid-market
customers long term contracts 12-20% gross margin Increased HRO business to small businesses 2-4% recurring fee Franchise and affiliates offer new outlet for VMS product Additional benefit of focusing sales channels and freeing management
resources to expand and shift to consultative and
technology/VMS/portal services Financial trends Substantial increase in system revenue coupled with significant decrease
in S,G, & A through office consolidation and franchising
of CA and transportation business Short term lack of profitability to achieve model implementation
In the first 2 quarters we recorded a loss, which largely reflects one time charges and integration and transaction costs related to the ASG
acquisition. With integration complete and subsequent off load of lower margin
staffing business to franchises, should see return to profitability by Q1 2008 |
![]() Initial Business Roadmap Projected 24 month roll- out Identifying, hiring and managing an entire workforce for a specific 24-month project Call center marketing 1,000 outgoing calls per day Dedicated, performance based workforce assigned to complete defined deliverables Local lead generation Customized client solutions and flexible, performance-based pricing Full-scale Managed Services Program, including proprietary workforce-optimization technology to coordinate the purchase and delivery of all contingent labor and professional services Senior management consultative team selling to regional and national prospects. Partnering with ClearPoint to outsource critical business function, such as call centers, third-party logistics, human resources, and claims administration 25-POINT ENGAGEMENT 50-POINT ENGAGEMENT 75-POINT ENGAGEMENT 100-POINT ENGAGEMENT |
![]() ClearPoint Roadmap: Update Revenue growth allows ClearPoint to expedite business plan 100% Consultative in 6 months ClearPoint brand consultative workforce solutions in higher demand
Opportunity shift out of lower margin contingent workforce business by franchising branches and direct full sales focus on higher margin
consultative business Retention of access to network maintains customer feeder base
Benefits: 1) Reduction of operating expenses 2) Increase of gross margin 3) Increase of overall customer stickiness in all economic cycles 4) Reduce cyclicality |
![]() Our Business Roadmap - Today Dedicated, performance based workforce assigned to complete defined deliverables Identifying, hiring and managing an entire workforce for a specific 24-month project Full-scale Managed Services Program, including proprietary workforce-optimization technology to coordinate the purchase and delivery of all contingent labor and professional services Partnering with ClearPoint to outsource critical business function, such as call centers, third-party logistics, human resources, and claims administration Customized client solutions and flexible, performance-based pricing Franchised Contingent Workforce Senior management consultative team selling to regional and national prospects. iLabor eMgate Technology, HRO/PEO and Workforce Solutions |
![]() Franchise Business Overview iLabor Network Franchisees license our technology and sales support for 4-8%
royalty fees on system revenue Technology Benefit: Front office CRM Back office processing Increased sales opportunities 50 branches converted to franchises Completion of franchise network by end of Q4 Expansion plans for network in 2008 |
![]() Solutions Business Insight eMgate Solutions: HRO/PEO Small client solutions Small hotel chain VMS large client solutions Phillip Morris Targets consultative deliverable for mid-size and large businesses Backbone of Workforce RoadMap Dual Revenue Streams Pay for Technology: 2.5% Gross margins Pay for Consulting: 12-20% Gross margins
|
![]() Financial Model and Implications Franchisee VMS and other Technology Solutions HRO/PEO Solutions Workforce Solutions System Revenue $10,000,000 $10,000,000 $10,000,000 $10,000,000 Net Revenue $500,000 $250,000 $3,000,000 $10,000,000 As a % of System Revenue 5% 2.5% 30% 100% Gross Profit $500,000 $250,000 $300,000 $1,500,000 GP of Net 100% 100% 10% 15% For clarification purposes, we feel it is necessary to delve into what we
mean when we say system revenue versus net revenue. System revenue refers to the total revenue billed through ClearPoint and its subsidiaries and franchisees, not necessarily a GAAP measurement of
revenue. Internally, the company also refers to system
revenue as Weekly Managed Spend. Net revenue
is a GAAP measurement once adjustments are made for pass-through costs. This hypothetical table is meant to assist the reader in further understanding
the business model and not to project GAAP based net revenue
or gross profit. |