STAF OTCQB Q I N V E S TO R FAC T SH EE T

Transcription

1 OTCQB Q I N V E S TO R FAC T SH EE T STAF

2 OTCQB STAF STAFFING 360 SOLUTIONS: An Emerging Global Staffing Company Executing a High-Growth Consolidation Strategy STAFFING 360 SOLUTIONS, INC. (OTCQB: STAF) is a publicly traded global staffing company rapidly expanding its reach through the acquisition of domestic and international staffing organizations with operations in the US and Europe. As part of its highly targeted consolidation model, Staffing 360 Solutions brings experienced management with extensive staffing sector and capital markets expertise, as well as a wealth of consultants and industry partners to effectively execute on various emerging opportunities within this high-growth sector of our economy. Staffing 360 Solutions Quarterly Revenue Growth Driven by the Company s Highly Accretive Acquisition Strategy (NUMBERS IN THOUSANDS) $40,000 HISTORICAL RESULTS* $33,459 $33,938 $30,000 $25,563 $20,000 $16,909 $10,000 $0 $557 $1,343 $1,964 May 2013 Aug 13 Nov 13 Feb 14 May 2014 Aug 14 Nov 14 *The fiscal year for Staffing 360 Solutions, Inc. ends May 31 st, thus quarters end in February, May, August, and November. 2

3 Q INVESTOR FACT SHEET GLOBALLY, staffing companies generate approximately $416 billion in annual revenue, according to Staffing Industry Analysts (SIA). There are approximately 70,000 private employment services agencies around the world, with the top 10 companies accounting for about a third of industry sales. Overall, the US is the country with the world s largest staffing market with $124 billion of revenue, while Europe remains the largest region, representing approximately 40% of global revenue. Staffing 360 believes that a consolidation strategy is ideally suited for the highly fragmented staffing industry, which has an estimated 15,000 companies each generating less than $20 million in revenues in the United States alone. Staffing 360 is pursuing several acquisition targets in the financial, accounting, engineering and IT industries. Within the last 24 months, the Company acquired five (5) staffing companies and now has combined estimated annual revenues of over $130 million. In addition, the Company has identified approximately 15 additional target companies in its M&A pipeline, representing aggregate revenues in excess of $600 million that management believes can be acquired on an accretive basis, although there are no assurances that the acquisition of any of these target companies will be consummated. As the Company implements its high-growth strategy, firms specializing in professional staffing are particularly attractive as acquisition targets, because of the higher margin and longer term nature of their business. Starting in September 2014, the Company embarked on what it has termed its Pathway to Profitability. As part of this plan, the Company s board of directors and executive management team are fully committed to becoming profitable as soon as possible. This is expected to be achieved through deleveraging the balance sheet and releveraging with new M&A funding, streamlining operating costs, continuing its high growth M&A activity, and uplisting to a national exchange such as NASDAQ. As part of this plan, the Company has already achieved Adjusted EBITDA profitability two quarters ahead of schedule, and is now focusing on EBITDA profitability by driving organic growth and M&A opportunities. With a highly experienced management team, strong branding, and a proven consolidation strategy focused on an industry that generates over $416 billion per year worldwide, Staffing 360 Solutions is being positioned to capitalize on the extraordinary demand for staffing services around the globe, with an unequivocal commitment to building long-term shareholder value. 3

4 STAFFING 360 MANAGEMENT BRENDAN FLOOD Executive Chairman Mr. Flood is the Executive Chairman of Staffing 360 Solutions, as well as the Chairman and CEO of its subsidiary, Staffing 360 Solutions Limited (f/k/a Initio International Holdings Limited). Prior to Initio, he spent seven years at Hudson Global, Inc. (Nasdaq: HSON) in various roles in Europe and the United States, culminating with Mr. Flood leading the company s IPO and listing of its common stock on the Nasdaq National Market in During 2004 and 2005 he was the CFO/COO for Hudson North America returning this business to profitability after several loss-making years. Prior to the IPO in 2003, Hudson was part of what is now Monster Worldwide, Inc., the parent company of Monster.com for which Mr. Flood was responsible in As part of the global realignment of Monster Worldwide, Inc. in November 2001, Mr. Flood became CFO for all of the company s operations in the Americas which amounted to $1.8 billion of annualized revenues. Prior to settling in the UK, he graduated from Dublin City University (Ireland) with a Bachelor of Arts degree in Accounting and Finance. MATT BRIAND Chief Executive Officer Mr. Briand is the President and Chief Executive Officer of Staffing 360 Solutions, as well as President and Chief Executive Officer of its subsidiary, Monroe Staffing Services. Mr. Briand is responsible for setting the vision and strategic direction of the Company, directing the Executive Management Team and building Company culture. Mr. Briand has more than 17 years of staffing industry experience, gaining extensive knowledge through recruitment, sales, management and executive roles. Since being named CEO of Monroe Staffing in 2009, Mr. Briand has led Monroe s organic growth from 35 employees, 8 offices and $34 million in revenues to become an $80 million company, employing 90 people, in 14 offices and 3 on-site programs throughout the Northeast and North Carolina. Under Mr. Briand s direction, Monroe has received numerous honors, including being named Best of Staffing in 2010, 2012 and Mr. Briand was a recipient of the Fairfield County Business Journal 40 Under 40 in He also gives financial support and time to numerous non-profits and charities. JEFF R. MITCHELL Chief Financial Officer Mr. Mitchell is the Chief Financial Officer of Staffing 360 Solutions. He has over 25 years of accounting and M&A expertise in the staffing industry. Prior to joining Staffing 360 Solutions, Mr. Mitchell was CFO of two publicly traded companies, AWG International Water Corporation (OTC: AWGI) from 2012 to 2014, and Command Center, Inc. (OTC: CCNI) from 2010 to Mr. Mitchell served as the CFO of Select Staffing from 2005 to 2010, where he led over 40 acquisitions in the staffing industry as part of their M&A strategy, which contributed $1.3 billion in revenue. Mr. Mitchell had prior experience at Rio Tinto PLC & Kennecott Exploration Company, where he served as a Director of Financial Services (North America) and Controller (North & South America) from 1998 to In his earlier career, he gained extensive audit experience while servicing the clients of Price Waterhouse (now PricewaterhouseCoopers) in Salt Lake City. Mr. Mitchell holds a BS degree in Accounting from the University of Utah and passed the Certified Public Accountant exam. DARREN MINTON Executive Vice President Mr. Minton is the Executive Vice President of Staffing 360 Solutions. In this capacity, he provides a depth of knowledge and expertise on private to public transactions, with a particular emphasis on capital raising, M&A, corporate messaging, branding strategies, and growth through consolidation. Prior to Staffing 360 Solutions, Mr. Minton was the President of Trilogy Capital Partners, a New York-based financial services company engaged in international merchant banking, strategic advisory services and financial communications, where he worked from 2009 to Mr. Minton served as Vice President of China America Financial Communications Group, as well as an Analyst at China US Venture from 2007 to 2009, where he consulted with numerous US-listed Chinese operating companies. From 2006 to 2007, Mr. Minton was an Analyst at Mesa West Capital, a privately held portfolio lender with a multi-billion dollar offering capability headquartered in Los Angeles, and he also worked at First Republic Bank in Palo Alto. Mr. Minton graduated with a B.A. in Economics from Stanford University. 4

5 MARKET DRIVERS Globally, staffing companies generate $416 billion in annual revenue, according to Staffing Industry Analysts (SIA). There are 70,000 private employment services agencies around the world, with the top 10 companies accounting for about a third of industry sales. The staffing industry is highly fragmented, with an estimated 15,000 companies generating less than $20 million in revenues in the United States alone. The Bureau of Labor Statistics shows that information security professionals can expect a 53% increase in job opportunity through 2018 equivalent to five times the growth of all other industries combined. 5

6 CORPORATE DRIVERS Staffing 360 has developed a significant pipeline of acquisition targets with the overriding objective of obtaining $300 million in annualized revenues. Experienced management with extensive staffing sector and capital markets expertise to effectively execute on various emerging opportunities. On April 26, 2013, the Company completed its initial acquisition of Cyber 360, a Wakefield, Massachusetts-based company. This business was subsequently sold as part of the Company s Pathway to Profitability, eliminating over $1.6 million of liabilities in the process. On November 4, 2013, the Company completed its acquisition of Control Solutions International, a Boston-based company providing risk management, consulting and IT solutions to clients in over 35 countries. On January 3, 2014, the Company completed its game changing acquisition of Initio International Holdings Limited, a UK domiciled staffing company with an established brand in the United States and UK, generating $80 million in revenues in On February 28, 2014, the Company, through its wholly-owned subsidiary, completed its acquisition of Poolia UK Ltd., a tuck-in acquisition for existing operations in London. On May 17, 2014, the Company completed its acquisition of PeopleSERVE, a highly-respected IT staffing company assisting government and commercial organizations. Furthermore, Staffing 360 Solutions has identified a significant pipeline of additional target companies that management believes can be acquired on an accretive basis. 6

7 STAFFING 360 VITAL STATISTICS 3/5/2015 STAF Interactive Stock Chart Yahoo! Inc. Stock Yahoo! Finance $0.30 $ $2.20 Staffing 360 Solutions, Inc. (STAF) Watchlist Recent Share Price 52-Week Range (+6.35%) OTC BB As of 3:20PM EST 1d 5d Open Close Low High Vol % Chg OTCQB 1m 3m 5.7K 46.83% 6m YTD 1y 2y 5y 10y Max Custom 41.7 million Approximate Shares Outstanding Indicator Comparison STAF $12.5 million Approximate Market Cap Reset Go To Symbol 0.80 STAF Dec 15, 2014 Jan 5, 2015 Jan 26, 2015 CONTACT Feb 13, 2015 Investor Relations Darren Minton, Executive Vice President investors@staffing360solutions.com Mar 5, 2015 Linear

8 Q I N V E S TO R FAC T SH EE T LEGAL NOTICE AND SAFE HARBOR STATEMENT OTCQB STAF This summary contains forward-looking statements. All statements, other than statements of historical fact, including, without limitation, those with respect to the objectives, plans and strategies of the Company set forth herein and those preceded by or that include the words believes, expects, given, targets, intends, anticipates, plans, projects, forecasts or similar expressions, are forward-looking statements. Although the Company s management believes that such forward-looking statements are reasonable, it cannot guarantee that such expectations are, or will be, correct. These forward-looking statements involve a number of risks and uncertainties, which could cause the Company s future results to differ materially from those anticipated. The Company disclaims any obligation to update any of the information contained or referenced in this summary.