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

2. 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”

3. 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.

4. 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.

5. 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.

6. 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

7. 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

8. 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

9. 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

10. www.pcfcorp.com www.TrustDart.com
Questions?
Tom Dressler
PCF
VP of Growth & Development 10