Www.pcfcorp.com www.TrustDart.com NEACE Spring Conference Tom Dressler May 21, 2018 www.pcfcorp.com.

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Presentation transcript:

www.pcfcorp.com www.TrustDart.com NEACE Spring Conference Tom Dressler May 21, 2018 www.pcfcorp.com www.TrustDart.com

www.pcfcorp.com www.TrustDart.com Who is PCF? Founded in 1984, based in Towson, MD Merged with Community Newsdealers Inc. (CNI) 2001 Serving over 60 print clients―from national publications to targeted specialty products Deliver over 10 million subscriber copies each week PCF is the key independent newspaper distributor in the U.S. Over 30 years of industry experience and subscriber dedication PCF simultaneously, is the parent company of Dart Cloud Based Delivery Solutions. Dart = “Deliver Smarter” www.pcfcorp.com www.TrustDart.com

Business Model Evolution - BME Recognizing the environment of a shrinking print media industry, PCF has evolved its business model to ensure a sustainable future, which includes competitive pricing and profitable service execution.   PCF has recently transitioned to a distributor*/independent service provider (ISP) model, in which most all distribution activities will be performed by contracted entities, obligated to provide services and deliver specified results. Evolving to this model has been incremental and began in early 2017. * The term “agent” is a common term of art within the newspaper industry and generally refers to an independent service provider (ISP), responsible to provide services up to the levels and standards detailed in a contract, and includes managing day-to-day business operations, processes, vehicles, staff, and schedules, independent of PCF. Term Distributor is preferred. www.pcfcorp.com www.TrustDart.com

BME Rationale The Distributor/ISP Model: To sustain the financial health of the company under a flexible model that more efficiently meets the current and foreseeable needs of the print media industry. The Distributor/ISP Model: Provides greatest flexibility to profitably manage fluctuating circulation Significantly reduces overhead in field and support operations Reduces PCF’s business and financial risk Dart expansion and further PCF diversification: Make available the most up-to-date last mile technology solutions the print media industry. Limit Dart growth to North America hand delivered publications, while building critical mass Merge the strength of Dart into the rapidly expanding parcel delivery community. www.pcfcorp.com www.TrustDart.com

Operational Overview PCF maintains communications, relationships and contracts with print clients. PCF manages service results and client satisfaction through the distributor contract. PCF manages client data, systems and routing. Distributors operate out of PCF leased buildings and are contractually obligated to use PCF’s, Dart, distribution technology platform. As independents, distributors are responsible for their own staffing, scheduling, operating equipment, connectivity, payroll/finances, taxes, contracted delivery service providers, etc. Distributor failure or abandonment will be mitigated by the PCF distribution team. www.pcfcorp.com www.TrustDart.com

Evolving to the New Model For PCF print clients, there is no material change. PCF is contracted to provide service & performance; relationship remains between client & PCF All subscriber & delivery data is provided by the client, directly to PCF Transportation/trucking continues as contractually agreed upon between PCF and the client PCF is accountable for clean, dry, on-time delivery to the clients’ subscribers For PCF, this represents a major shift in structure and focus. Organizational structure, headcount, roles & responsibilities have changed Operational control shifts, now require greater relationship & contract management skills Processes to implement client requests, improve performance & resolve issues have changed Client reaction & angst over the transition have subsided. In most areas service has improved with the implementation of a local ISP www.pcfcorp.com www.TrustDart.com

Distributors REQUIREMENTS Distributor incorporation required Bolsters independent status Distributor should have multiple actual employees Financial Requirements: Security deposit against use of facility, PCF owned equipment, abandonment, etc. Enough cash in corporate accounts to meet employee/carrier obligations for a period of time Liability insurance of $1M PCF be included as a named insured www.pcfcorp.com www.TrustDart.com

Distributor Liability Contract includes indemnification language for adherence to local laws, ordinances or payment of associated fines, etc. Depending on facility sublease or license, contract to address distributor responsibility: Distributor gets hurt onsite Visitor gets hurt onsite Minor is present and/or gets hurt onsite Distributor’s employee or contracted carrier gets hurt onsite PCF employee gets hurt on site Contract addresses subscriber property damage responsibility and process: Client>PCF>Distributor www.pcfcorp.com www.TrustDart.com

www.pcfcorp.com www.TrustDart.com Why this model? Flexibility Improved Service Operational Efficiency Lower Overhead Moves PCF’s focus to now include down-stream diversification Dart Parcel Delivery www.pcfcorp.com www.TrustDart.com

www.pcfcorp.com www.TrustDart.com Questions? Tom Dressler PCF VP of Growth & Development 631 270-3133 Tom.Dressler@pcfcorp.com https://vimeo.com/260135880 www.pcfcorp.com www.TrustDart.com 10