The Company
Who We Are
Ø The Company is an Internet "Portal" providing a Virtual Career Center
for thousands of technology job seekers and a Virtual Human Resource
Department for its corporate clients. The Company plans on becoming the
largest Virtual Technology Employer on the Internet! The Company operates
the IT*CareerNET on the web at, www.itcareernet.com.
What We Do
Ø The Company provides technology staffing, consulting and employee
leasing services via the internet, creating a global technical services
and human resource capability for its clients. The Company also provides
personal products and services to its customer base using internet
affiliation programs. Through use of the internet as its service delivery
platform, and the combination of technical, employment and internet
services, the Company becomes a "virtual employer" able to service
employees and clients on a global basis and, through efficiencies created
by the internet, reduce the delivery cost of these services.
Growth Through Acquisitions
Ø The Company operates as an industry consolidator acquiring regional
information technology staffing and employee leasing firms to create a
national market presence. Through efficiencies of scale, the Company
consolidates back room and redundant operations providing a more cost
effective method of service delivery.
Revenue Model
Ø Revenues are generated by fees derived from the placement of technology
job seekers, employee leasing services, banner advertising and through
internet products and services offered through its portal site. Revenues
are projected to reach $200 million within a 24 month period.
Return On Investment
Ø The Company expects its stock value to increase exponentially through
the success of its acquisition program, the integration of its human
resource services business and its unique use of the internet to expand
its operating margins through the marketing of value added products and
services to its captive audience.
The Opportunity
Ø The Company believes it is the first to create a "virtual technology
workforce" utilizing the Internet as its employee/employer interface.
The Internet has spawned an opportunity heretofore unachievable for the
interface of the workforce and the employer. With web enabled software
interfaces, people are able to access information from almost any place
and time in the world form a laptop computer. As it relates to the
workforce, timecard, benefits, payroll, vacation and other job related
information can be accessed, queried and processed at a low cost to the
employer through use of the internet.
This phenomenon, added to the fact that the technology workforce is more
mobile and flexible than ever, changing jobs regularly to stay abreast of
new technology, telecommuting instead of driving to work, has created an
opportunity for the employer focused on technology employment to offer new
opportunities to the to the technology worker at many different companies
and maintain an employee/employer relationship in the process.
The Company, recognizing this new phenomenon in workforce mobility, has
created a "virtual employee/employer" company enabling technology workers
to change assignments as desired, yet maintain the same employer
relationship. This opportunity, if delivered with the proper benefits to
the "Client and Worker" can be grown globally creating one of the largest
technology workforces on the planet.
Add to this the opportunity to market personal services, such as job
training, legal, financial, travel & vacation and shopping malls to the
benefit of the employee and you have a captive sales audience with
tremendous buying power.
By combining technical services and employee leasing outsourcing, this
goal can be realized by the Company. Technical services provides the job
opportunities and employee leasing services creates the employee/employer
relationship. The additional benefit is that both these industries are
growing at 15% or greater per year and are expected to continue in this
pattern for the foreseeable future.
The Company believes that it can seize the marketplace in this particular
niche combination by being the first to implement a "virtual technology
employment" company. By focusing on technology workers, the Company
believes that it has a "captive, mobile and flexible workforce", all
having access to the internet available at a moments notice to change job
assignments without changing employers.
The Marketplace
Ø The marketplace for technology workers is growing at a phenomenal pace.
According to industry analysts, the number of technology jobs will
continue to outstrip the number of available workers for the next five
years and companies will be forced to increase the utilization of
recruiting and outsourcing as a method of operation.
According to the 1998 Olsten forum: Staffing Strategies and Accustaff's
1998 salary & employment trends survey: "Outsourcing of certain human
resource functions and use of supplemental staffing are on the rise in the
business world. About one out of three surveyed businesses plan to
outsource benefits administration this year and 25% plan to outsource
payroll administration. Of those firms that currently do not outsource
these tasks, over 10% said they would consider outsourcing them in the
future.
Of the firms currently using supplemental staffing to meet personnel
requirements at managerial and professional levels, 27% plan to increase
such use to fulfill information systems needs, followed by human resources
12%, accounting 9% and legal and marketing 7% each.
According to the May 1999 "E-services: the web @work" report issued by
Robert W. Baird & Co., "We believe the emergence of the Internet has
created a massive opportunity for IT Services firms capable of
transitioning companies into this new age. The large and urgent need for
an Internet presence will fuel enormous growth in E-Services over the next
several years. We believe the demand for Internet application and
development support will fuel an acute shortage of skilled IT
professionals with Internet-related skills and consequently drive demand
for outside recruiters." Also mentioned in the report under Recruiting and
Retention and the need for outsourcing: "The IT workforce is highly
mobile, as companies pursue employed professionals looking to upgrade
their skills and few firms have the in-house talent and experience to
handle the development of an entire E-commerce application. This will
require companies to resort to Outsourcing for these services as more of a
necessity than a choice."
Forrester Research estimates that the size of the online recruiting market
will increase from $105 million in 1998 to $1.7 billion by 2003. Forrester
also projects the number of households with internet access will grow from
24.5 million at the beginning of 1998 to 52.8 million by the end of 2003.
According to data from interbiznet.com's 1999 Electronic Recruiting Index,
it was estimated that businesses in the United States spent approximately
$11 billion on recruitment advertising during 1997.
Company
Financial Investment
&
Exit Strategy
Initial Funding Requirement
Ø The company is seeking to raise $5 million in financing to complete its
first round of acquisitions, provide working capital and move to a major
stock exchange. These events are scheduled to take place over the next six
months.
Initial Acquisitions & Time-Table
Ø The Company has reached agreements in principle to acquire its first
round of companies. These acquisitions total approximately $22 million in
revenue and an EBITDA of approximately $1 million. Closing is to be
arranged following the Company's commitment on available financing.
Consolidated Post Acquisition Projections.
Sales $22 million EBITDA $1,000,000
Exit Strategy
Ø The Company is planning a secondary offering to raise $20 million as
soon as possible following the closing of its first round of acquisitions.
Proceeds would be used to pay down initial financing, future acquisitions
and working capital. Investor exit options are convertible debt and
warrants.
Five year Pro-Forma
Ø The Company has a five year growth plan to reach revenues of over $250
million in the next five years through a series of strategic acquisitions
and internal growth. Below is a pro-forma projection of revenues and
EBITDA for the next five years. This pro-forma is predicated on the
Company executing a successful secondary public offering to raise $20
million to fund the anticipated acquisitions.
Ø
Five Year Pro-Forma Projections*
( in millions)
Year 1 Year 2 Year 3
Revenues $ 90.0 $203.8 $230.0
Cost of Sales 81.3 185.8 205.6 Gross Profit 8.7 18.0
24.4
Expenses 6.4 13.8 13.3
Pre-Tax Inc. 2.3 4.2 11.1
EBITDA 4.3 9.6 13.9
*The above pro-forma includes the acquisitions of three staff leasing companies and 5-10 IT Companies.
Infocall Communications Corp.
NASD-BB-INFE
Executive Summary
The Company is an Internet "Portal" providing a Virtual Career Center for thousands of technology job seekers and a Virtual Human Resource Department for its corporate clients. The Company plans on becoming the largest Virtual Technology Employer on the Internet! The Company currently operates the IT*CareerNET on the web at, www.itcareernet.com.
Company Operations
The Company operates three service groups, Information Technology, (IT), Staffing & Consulting, Employee Leasing and Internet Products and Services, providing a "total outsourced" employment center for job seekers and clients. Employee Leasing, also known as Professional Employer Organizations (PEO) is the Outsourcing of payroll, benefits, 401k plans and other human resource administration functions through co-employment contracts clients.
Internet Service Delivery
The Company uses the internet as its service delivery platform, greatly increasing operating efficiency resulting in reduced costs for its clients. By using the internet and its integrated human resource service groups, the Company functions as a virtual technology employer and solutions provider on a global basis.
Customer Contracts
The Company has recruiting contracts with IBM, Cable&Wireless, Digital Focus, IBT, and other regional and national companies.
DOTCOM Image
The Company plans to change its name from Infocall to
PersonnelHeadquarters.Com and position itself as a DOTCOM company. To facilitate this, the Company has reserved the URL www.PersonnelHeadquarters.com for this purpose. This portal site will be the internet headquarters for the Company's operations providing links to its other services.
Growth Through Acquisitions
As an industry consolidator, the Company's goal is to reach $200 million in revenue by fiscal year end 2,000 through a series of strategic acquisitions. The Company has reached agreements to purchase its "platform operations" companies consisting of approximately $22 million in revenues producing an EBITDA of $1 million. These acquisitions include two IT staffing and one Staff Leasing company.
Funding Requirements
To accomplish this the Company is seeking to raise $5 million in financing through to secure its first round of acquisitions, become fully reporting and move to a major stock exchange. The company then plans to do a secondary offering and raise $20 million for additional acquisitions.
Company Contact Information
For additional information regarding the company concerning its acquisitions and investment opportunity, contact Mr. T. Richfield, CEO, 703-734-5650 or email: trichfield@infocall.com.
Infocall Communications Corp.
Organization and Capitalization
Management Team
The Company boasts a strong management team consisting of a Board of Directors, President & CEO, V.P. of Finance, V.P. of Operations, V.P. of Mergers and Acquisitions, and a Chief Technology Officer.
Organization Chart
Corporate Management
ITRecruitingStaffing &TechnicalServices InternetProducts
&Services Staff Leasing &Human ResourceServices
Capitalization (as of June 1999)
Authorized Shares 20,000,000
Total Shares Outstanding (Approx.) 8,666,930
Public Float (Approx.) 3,316,930
Insider Ownership (Restricted) 4,850,000
Other Restricted under lock-up 500,000
INFE - Sales and Earnings History* (Unaudited)
1998 Sales $0.060 million. Pre-Tax Income ($236.146).
1997 Sales $1.80 million. Pre-Tax Income $213,315
Consolidated Post Acquisition Projections.
Sales $22 million EBITDA $1,000,000
*In December, 1997, the Company sold its interest in its temporary help companies to focus on developing a significant presence in the Information Technology staffing industry. See financial statements for detail.
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