Frm deal brief 110611 v2

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  • Today you will hear about an opportunity with significant upside potential Uses existing technology capitalizing on existing distribution channels Albeit uniquely captive distribution methods Introduce fully integrated marketing products Potential ROI of many times the initial investment Presented in two phases Each with its own significant ROI
  • Hereinafter referred to as full integrated product offering
  • Hereinafter referred to as full integrated product offering
  • Frm deal brief 110611 v2

    1. 1. 11/08/11 Profitable Growth Plan For Front Row Media Presented by Jim Striplin November 2011 Front Row Media
    2. 2. Contents <ul><ul><li>Welcome </li></ul></ul><ul><ul><li>Brief Introductions </li></ul></ul><ul><ul><li>The Opportunity </li></ul></ul><ul><ul><li>The Industry </li></ul></ul><ul><ul><li>Existing Business Analysis </li></ul></ul><ul><ul><li>Growth Plan </li></ul></ul><ul><ul><li>Future Consideration </li></ul></ul><ul><ul><li>Deal Terms </li></ul></ul><ul><ul><li>ROI </li></ul></ul>Confidentially presented by Jim Striplin
    3. 3. Introductions <ul><li>Fred Mullins </li></ul><ul><li>Founded Front Row Media in 1985; sold to Landmark in 1993; began publishing again in 1998 </li></ul><ul><li>Former HBO executive instrumental in securing key hotel placement in the early days for the company </li></ul><ul><li>Existing key relationships in the industry </li></ul><ul><li>Jim Striplin </li></ul><ul><li>Successful executive with a 25 yr. track record of exponential growth in companies from $1MM - $50MM </li></ul><ul><li>Former President & CEO of One Source Phone Guides </li></ul><ul><ul><li>Recruited a team of over 100 in six-months while revenue grew organically from $1MM to $13MM </li></ul></ul><ul><ul><li>Sold to McLeod USA (Yellow Book) for $24MM, one year ahead of plan </li></ul></ul><ul><ul><li>Total of 30 months start to exit </li></ul></ul>Confidentially presented by Jim Striplin
    4. 4. Video <ul><ul><ul><li>Play video here </li></ul></ul></ul>Confidentially presented by Jim Striplin
    5. 5. The Opportunity <ul><li>Front Row Media publishes hard-cover visitor books with in-room distribution at better hotels in six* second-tier markets currently </li></ul><ul><li>FRM’s current markets : </li></ul><ul><ul><li>Anna Maria Island </li></ul></ul><ul><ul><li>Ashville* </li></ul></ul><ul><ul><li>Chattanooga </li></ul></ul><ul><ul><li>Greenville* </li></ul></ul><ul><ul><li>Lexington </li></ul></ul><ul><ul><li>Louisville </li></ul></ul><ul><li>$260B visitor destination travel and tourism space </li></ul><ul><li>FRM to add fully integrated marketing products to fuel growth </li></ul><ul><ul><ul><ul><ul><li>Website and optimized applications for mobile devices, iPad, smart phones, digital marketing, social media </li></ul></ul></ul></ul></ul><ul><li>It is anticipated organic growth will take the company to a valuation approaching $5MM within 5 years </li></ul><ul><li>*Mullins owns 50% of Ashville and Greenville; a proprietary acquisition of 100% of each is anticipated in Q1 2012 </li></ul>Confidentially presented by Jim Striplin
    6. 6. Future Consideration <ul><li>In addition, Mullins, has a one-of-a-kind opportunity with airlines to become the exclusive provider of in-flight destination video </li></ul><ul><ul><li>Referred to as JetTV </li></ul></ul><ul><li>Mullins was within five days of signing a contract with Delta Airlines when the 9/11 disaster devastated the industry in 2001 </li></ul><ul><li>He has been recently invited back to the table to renegotiate the JetTV deal </li></ul>Confidentially presented by Jim Striplin
    7. 7. The Market Industry Forecast <ul><li>Communications will be the 3rd Fastest-Growing economic sector going forward; rising from the 4th position </li></ul><ul><li>Communications industry forecast to grow 20% faster than GDP over next 5 years </li></ul><ul><li>Marketing services spending to grow, primarily in alternative marketing segments </li></ul><ul><ul><li>3.4% annually </li></ul></ul><ul><li>Some of the segments which are forecast to grow </li></ul><ul><ul><li>Internet Media </li></ul></ul><ul><ul><li>Digital Marketing </li></ul></ul><ul><ul><li>Mobile Advertising and Content </li></ul></ul><ul><li>Source: Veronis Suhler Stevenson Communications Industry Forecast; 8/3/09; www.vss.com/forecaset09 </li></ul>Confidentially presented by Jim Striplin
    8. 8. Business Analysis: Front Row Media <ul><ul><li>FRM has been a bootstrap, entrepreneurial effort since 1985 </li></ul></ul><ul><ul><li>In 2011 current revenue in some books was sacrificed to chase potential investors for a </li></ul></ul><ul><ul><li>Front Row Media requires professional management to lead it moving forward </li></ul></ul><ul><ul><ul><li>Shore up current publishing efforts </li></ul></ul></ul><ul><ul><ul><li>Optimize growth with the introduction of fully integrated marketing products </li></ul></ul></ul><ul><ul><ul><ul><li>Website and optimized applications for mobile devices, iPad, smart phones, digital marketing, social media </li></ul></ul></ul></ul><ul><ul><ul><li>Launch new strategically targeted markets with fully integrated product offering </li></ul></ul></ul>Confidentially presented by Jim Striplin
    9. 9. Growth Plan <ul><ul><li>Secure $500K of invested capital </li></ul></ul><ul><ul><li>Form a new company (Front Row Media) owned by Mullins, Striplin, key employees / investors </li></ul></ul><ul><ul><li>Engage Striplin as FRM’s CEO </li></ul></ul><ul><ul><ul><li>Make sure the right people are on board </li></ul></ul></ul><ul><ul><ul><li>Develop appropriate organizational structure, systems, and processes </li></ul></ul></ul><ul><ul><ul><li>Introduce fully integrated digital marketing products </li></ul></ul></ul><ul><ul><ul><li>Create a scalable company </li></ul></ul></ul><ul><ul><li>Acquire 100% of Ashville and Greenville from current partners </li></ul></ul><ul><ul><ul><li>Yellow Jacket Publishing </li></ul></ul></ul>Confidentially presented by Jim Striplin
    10. 10. Future Consideration <ul><ul><li>Engage Michael Breeding to produce a professional video in order to “pitch” Jet TV </li></ul></ul><ul><ul><ul><li>Accomplished producer, associate producer and executive producer </li></ul></ul></ul><ul><ul><ul><li>Thirty years experience in film/video production </li></ul></ul></ul><ul><ul><ul><ul><li>Television programs, commercials, marketing films, tourism films and commercials, live events, multi-camera entertainment venues and long form documentaries </li></ul></ul></ul></ul><ul><ul><li>Pitch Jet TV to airlines </li></ul></ul><ul><ul><ul><li>Test the waters </li></ul></ul></ul><ul><ul><ul><li>Execute exclusive contract with airlines </li></ul></ul></ul>Confidentially presented by Jim Striplin
    11. 11. FRM Projections Confidentially presented by Jim Striplin
    12. 12. FRM Projected ROI FYI 2016 <ul><li>Total Revenue </li></ul><ul><ul><li>Over $6.1M </li></ul></ul><ul><li>EDITDA Margin </li></ul><ul><ul><li>27% </li></ul></ul><ul><li>Total Debt and Equity Capital Deployed: </li></ul><ul><ul><li>$500K </li></ul></ul><ul><li>Potential Future Value: </li></ul><ul><li>$7M - $8M </li></ul>Confidentially presented by Jim Striplin
    13. 13. Future Consideration <ul><ul><li>Time is of the essence with JetTV! </li></ul></ul><ul><ul><ul><li>It is a true “first-to-market play” </li></ul></ul></ul><ul><ul><li>Secure JetTV investment of $1.5MM </li></ul></ul><ul><ul><li>Recruit the right people </li></ul></ul><ul><ul><li>Develop an appropriate infrastructure </li></ul></ul><ul><ul><li>Develop world class production </li></ul></ul><ul><ul><li>Build a scalable branch management sales organization </li></ul></ul><ul><ul><li>Combined projections runs to potential valuation in excess of $25MM </li></ul></ul><ul><ul><ul><li>The “sky is the limit”! </li></ul></ul></ul>Confidentially presented by Jim Striplin
    14. 14. Terms of the Deal <ul><li>FRM: $500K capital invested from one or more private investors </li></ul><ul><ul><li>25% equity stake </li></ul></ul><ul><ul><ul><li>Anticipated to approach $2M value by 2016 </li></ul></ul></ul><ul><li>JetTV: $1.5MM in capital invested </li></ul><ul><ul><li>FRM investors get first right of refusal on the additional investment required </li></ul></ul><ul><ul><li>25% equity stake </li></ul></ul><ul><ul><ul><li>Anticipated to approach $6M value by 2016 </li></ul></ul></ul>Confidentially presented by Jim Striplin

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