Investor Presentation February 2007
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Transcript Investor Presentation February 2007
BPO On Demand
May 2009
On-Demand Sourcing Solutions
for Middle Market Enterprises
Safe Harbor Statement
Certain statements in the following presentation relate to future results that are
forward looking statements as defined in the Private Securities Litigation Reform Act
of 1995. Actual results may differ materially from those projected as a result of
certain risks and uncertainties, including but not limited to those noted in our forms
and other filings with the SEC. This presentation includes historical and forwardlooking pro forma information. The Company assumes no responsibility to update
the information contained in this presentation.
This presentation and the information contained herein is the property of BPO
Management Services, Inc.
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Company Profile
Mission Statement - Mid-Market BPO Play
To be dominant provider of back-office sourcing solutions,
offered on a recurring revenue basis,
to middle market enterprises located throughout North America.
Ticker: OTCBB:HAXS
Founded: July 2005
Public: Reverse merger in December 2006
Customers: 400+ in North America
Employees: 300
Headquarters: Anaheim, CA
Pennsylvania Corporation: Post HAXS merger December 2008
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Company Profile
Mission Statement - Mid-Market BPO Play
To be dominant provider of back-office sourcing solutions,
Mission Statement - Mid-Market BPO Play
offered on a recurring revenue basis,
be dominant
to middle market enterprises locatedTo
throughout
Northprovider
America. of back-office
sourcing solutions, offered on a recurring
Financial Overview:
revenue basis, to middle market enterprises
Recurring revenue model with strong operating leverage
located throughout North America.
Q1 2009 Revenue run rate $40M – with EBITDA margins expanding to +25% as we
integrate business functions, grow critical mass and leverage existing IP/infrastructure
Growth Strategy:
Vertical solutions that leverage our core IP/infrastructure
Middle market focus Huge marketplace opportunity
Generate Significant Organic growth projections
CFO sell plays well in uncertain economic times
Significant customer cost savings – on-demand model
Accretive acquisitions with strong operating leverage
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Founders/Management Team
Patrick Dolan, Chairman and CEO
Co-Founder
Prior to co-founding BPOMS, Mr. Dolan served as president and chief operating officer of
Infocrossing Inc. [Nasdaq: IFOX], chairman and chief executive officer of Systems Management
Specialists (SMS) and spent the early years of his career with Affiliated Computer Services (ACS)
and SHL Systemhouse
25 years outsourcing industry experience
Jim Cortens, President
Co-Founder
Prior to co-founding BPOMS, Mr. Cortens served as executive vice president of Infocrossing Inc.
[Nasdaq: IFOX], president and director of Systems Management Specialists (SMS), and spent
the early years of his career with SHL Systemhouse
25 years outsourcing industry experience
John Carradine, COO
Former CEO, Healthaxis
Mr. Carradine’s prior experience includes acting as CFO and a member of the Board of Directors
of Micrografx, Inc. until its sale to Corel Corporation in 2001, CFO of Intellicall, Inc. a
telecommunications company and treasurer of Computer Language Research, Inc. a data
services company for the accounting industry.
25 years in the software and data services industry
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Founders/Management Team
Nick Curry, SVP – Head Canadian Operations
Leads Canadian business activities
Former CFO,CIO at major Canadian telecommunications and financial services corporations
Significant business development expertise - +25 years industry experience
Ron Herbert, CFO
Former, CFO Healthaxis
Brent Webb, General Counsel and Assistant Corporate Secretary
Former, General Counsel HAXS
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Milestones to Date
$4.2 million founders investment
Q4 2006 – Reverse merger to become public company
Q2/Q3 2007 – Closed $21 Million in financing with 4 Institutional investors
Q2 and Q3 2007 – Completed 3 Acquisitions to accelerate growth, strengthen product and
service offerings, expand client base and enhance cross selling opportunities
Q2 2008 – Raised $6 Million through a warrant exercise with 2 existing institutional
investors to pursue the HAXS transaction
Q4 2008 – Closed HAXS merger
Strong/growing pipeline – Current economic situation accelerates middle market BPO track
Completed initial growth platform to support delivery of back-office business functions on
an outsourced/recurring revenue basis – vertical solutions that leverage core
IP/infrastructure capability
HR
ECM
ITO
FAO
Healthcare
On-Demand HRIS system for the middle market
Enterprise Content Management solutions
IT Outsourcing – Tier 1 Data Center/Network Services
A/P outsourcing solution
Claims processing engine with HAXS merger
Any-shore
On-Demand
delivery model
Track record of rapid organic growth
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Vision for Growth/Value Creation
•Target +$250M recurring revs
•1.5* Revs $375M valuation
Revenue
$200m
$150m
$100m
Operating Platform Completed
Reached inflexion point
Growth/profitability acceleration
Operating platform leverage
$50m
Pre-HAXS
Rev $30m
$30m
$10m
Reverse Merger
Rev $9m
*
*
*
*
Post – HAXS merger
Rev $43m
•Accelerated Organic Growth
•Accretive Acquisitions
Private
Rev $5m
Dec’06
Dec’08
Dec’10
Dec’12
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What We Do
•We are IBM/Accenture for the Middle Market
Comprehensive Set of Outsourced Back-Office Solutions - Middle Market Focus
Comprehensive Offering – One Stop Shop
Services Provided on Standardized
Platforms
Global Delivery Capability – Best Shore
Delivery Model
BPOMS
Products and Services Verticals
ITO
Infrastructure
and
Outsourcing
Services
Enterprise
Content
Management
Human
Resources
Outsourcing
Satisfied Customers – High BPO Contract
renewal rates
Healthcare
Plan IT &
Administration
Corporate
Accounts
Payable
Outsourcing
Direct Sales Force and Channel Partners
Software as a Service Delivery ‘SaaS’
Leverage Data Center Infrastructure &
Intellectual Property
Healthaxis
Products and Services Verticals
Cross Selling
Opportunities
Target Markets
Target Markets
Middle Market Companies
$500 million to $3 billion in sales
Large TPA’s, Insurance Companies,
Managed Care Organizations,
Middle Market Companies
Our platform provides economies of scale/delivery capability similar to Tier 1 providers
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Business Model
BPOMS business model based on recurring revenue,
critical mass and strong operating leverage.
Recurring
Revenue
Over 80% of revenue is contracted and recurring grow
Opportunity to cross-sell solutions into existing clients
High renewal rates on contracts
Operating
Leverage
Highly leverageable IP/infrastructure
Software/infrastructure unit costs decrease with scale
Fewer resources needed for each incremental client
Cross-utilization of resources across data centers/facilities
Infrastructure
in Place
Tier 1 data center – significant available capacity
Imaging/capture/scan – off/near/on-shore capability
North American geographic coverage
Facilities at about 25% capacity
Revenue above $50 million accelerates profitability
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Comprehensive Services
Healthcare IT and Administration
Information Technology Outsourcing
Tier 1 capable data center
Managed Services
Applications Services
Multi-platform Managed Hosting
Professional Services and Staffing
IT Consulting
7X24X365 operations
Network Management
Business Recovery
Front-end Claims BPO Services
SaaS based Claims and Admin Software
Web Portals
Provider Database Management
Vendor Integration and Data Management
BPOMS
IBM/Accenture for
the Middle Market
Enterprise Content Management
Custom ECM Solutions
Document Management Software
Data Capture/Scan/Index
Document Media Conversion
Hosted Image Retrieval Systems
eReview Collaboration Software
Systems Integration/Implementation
Finance/Accounting Outsourcing
Accounts Payable SaaS Systems
Accounts Payable Outsourcing
Scanning and Indexing
Human Resource Outsourcing
HRIS Systems and Self-Service Portal
HR Consulting
Payroll and System Integration
Compliance Administration
Reporting and HR Metrics
Performance Management
Vendor Management
HR Process Redesign
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Across Industry Verticals
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IT Outsourcing Solutions
We are a Leading Provider of
Managed IT Infrastructure Services
Cost effective managed services as an alternative
to traditional in-house or other outsourced
solutions.
SAS 70 Type II Certified
Class A Rated Data Center Facilities
7X 24 X 365 Operations
Management and applications services tailored to
customers' demands allowing them to focus on
their core business.
We offer complete multi-platform managed hosting
solutions on a 24*7 basis.
Data Warehousing and ETL Tools
Network and Remote Desktop Management
Business Recovery
We are product and supplier independent and support all well
established multi-platform computing technologies
Mainframe
Mid-Range (AS/400 iSeries, all flavors of Unix)
Open Systems (Intel) Servers
Remote Server and Desktop Support
Professional Services
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Enterprise Content Management
Our Enterprise Content Management products,
services and solutions are aimed at helping
business and government capture, index,
access, deliver and preserve their documents.
We help our customers
Improve their back-office performance
Make better decisions faster by finding the right
information when it is needed
Process documents more effectively
Reduce the need for handling and filing paper
documents
Streamline the ability to find, manage and access
documents in or out of the office
Capture
Classify
Extract
Validate
Our end-to-end solutions touch every aspect of
enterprise content management
Deliver
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Healthcare Solutions
We Combine Technology and Service to Deliver Value
For more than 40 years, we've helped TPAs,
insurance
companies,
MCOs
and
selfadministered
employers
relentlessly
attack
inefficiencies and reduce costs.
Healthaxis wide array of products and services
help payers drive down costs and improve
operational efficiencies.
Our ability to integrate and automate critical
administrative processes enables customers to
focus on their core competencies while providing
their customers with a higher level of service.
TPA’s reduce administrative expenses,
improve operational efficiencies.
and
Insurance companies and MCOs maximize
margins, reduce medical claims processing costs,
improve operational efficiencies and mitigate risk.
Smart Front End – A unique package of data
conversion and pre-adjudication technology
products
Web-Based Solutions – A suite of four Web
tools that facilitate member self-service,
broker information and employee enrollment.
Benefit Administration Systems – Mature,
time-tested ASP solutions for enrollment, plan
administration, billing, claims, consumerdriven health plans (HRA/FSA) and fulfillment.
Provider Management – A combination of
proprietary technologies and services
delivering clean provider data and flexible
eligibility matching and data transmission.
Post Adjudication Services – Services that
simplify fulfillment, payment, reporting and
analysis
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A/P Outsourcing
Accounts Payable departments are constantly
challenged by the rising costs of processing
and handling paper invoices.
The Solution - Automate Accounts Payable Processes
We help improve A/P work processes by eliminating
paper forms and automating workflow.
Our A/P invoice processing solutions enable our
customers to capture, route, and track information
electronically and delivering invoice data automatically
to your back-end system.
We scan incoming invoices and capture all relevant
information from the image (for example: invoice date,
invoice number, purchase order number, and invoice
total). Our A/P solutions also give our customers the
ability to automatically match purchase orders with
invoices, eliminating labor intensive manual matching.
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HR Outsourcing
Comprehensive Products & Services
HRIS
Self-Service Portal
Recruiting
Payroll and System Integration
Benefits Administration
Compliance Administration
Reporting and HR Metrics
Succession Planning
Training Administration
System Security
Employee Relations
Staffing
Legal Compliance
Performance Management
Compensation Planning
Vendor Management
HR Process Redesign
We are both a human resource BPO direct service
provider and an expert BPO human resource project
manager
We support businesses
New to the human resource BPO market
Established businesses already
outsourcing human resources
Businesses that want to maximize the
ROI of their in-house workforce
HRAdvocate, our HRIS solution, is provided on a
hosted, SaaS, or licensed basis
Senior customer executives take great comfort from the
fact that the ongoing management of their critical human
capital resources will be handled by our human resource
business experts who are well versed in the who, what,
where, and why of human resource BPO
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Rapidly Expanding Marketplace
Market rapidly expanding to
include processes that cut
across all business sectors
and industries
Market size in 2015 projected
at $750B
Globalization and economic
uncertainty will accelerate
BPO growth – especially in
the middle market
Today’s
Global BPO Market
is $400B
growing at 10% CAGR
Middle market demands price
competitive, comprehensive
flexible service offering with
on-shore touch points
Significant portion of new
growth coming from middle
market – since there is low
penetration to date
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Middle Market Focus
Enormous Market Opportunity
Enterprise
Size
IBM
Accenture
HP
CAGR=+15%
Our Target Market
Middle Market Companies
typically between $500 million
& $3 billion in sales
Small,
Niche
Providers
Capability/Global Presence
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Peer Group Analysis
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Investment Highlights
Significant market opportunity
“Green Field” - Largely untapped middle market
Low BPO penetration
target
Significant cost savings opportunity for outsourcing Plays well in uncertain
customers
economic times
Cross selling initiatives
CFO focus
BPOMS + HAXS
BPOMS comprehensive service platform
“One Stop Shop” offers a scalable comprehensive
outsourced back-office solution for middle market
enterprises
Building SaaS enabled BPO –
comprehensive service
offering
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Investment Highlights
Strong management team
“Cash In” investors
Significant combined business process
outsourcing experience
Acquisitions and business integration
experience
Tremendous shareholder value creation
opportunity
Initial growth platform already built
BPOMS + HAXS – building critical mass
Low Risk Investment
Marketplace Credibility
Currently under-valued
Transform into impressive On
Demand Multiples
Business model yields significant operating
leverage
High Incremental Margins
Cost savings sell to customers – no additional
spend
Plays well in uncertain
economic times
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