disclaimer the views expressed here contain information derived from publicly available sources and...
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DisclaimerThe views expressed here contain information derived from publicly available sources and have not been independently verified. No representation or warranty is made as to
the accuracy, completeness or reliability of the information. Any forward looking information in this presentation has been prepared on the basis of a number of
assumptions which may prove to be incorrect. For additional information on these or other factors, please see the Company's fillings on SEDAR. This presentation should
not be relied upon as a recommendation or forecast by Hodgins Auctioneers.
Nothing in this presentation should be constructed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.
Investment Highlights
An Established Auction Company In A Big Marketplace With The Right Management & Board And Support Team Providing World Class Services In Three Big Markets With A Great Growth Strategy In a Great Industry with Great Competitors Only A Few Are Public Our Past Performance Grow Revenues with Online Auctions What We Need Use of Proceeds A Tight Structure
An Established Auction Company
Hodgins family first entered the industry in 1957
6000 plus auctions conducted Gross annual system sales between 40 and
50 million Gross revenues between 3.5 and 4.5 million
In a Big Marketplace
2007 North American system sales ~ $270.7 billion USD (Live auctions only).
Largest competitor commands only 1% of the total market
Lots of room for growth
With The Right Management & Board
Barrie Jung • President/CEO ~ 25 years +
Grant Hodgins • General Manager ~ 30 years +
Todd Bennett• New Business Development Manager ~ 2 years
Larry Buchinski • Industrial Sales Manager ~ 25 years +
Lyle Gradin • Agricultural Manager ~ 10 years +
Myles Taylor • E-Commerce Sales Manager ~ 5 years +
Gordon Anderson • Chairman of the Board
And The Right Support Team
Marketing Experts Call-Center Staffing Trust Administrators Operational Technicians
ProvidingWorld-Class Services
Professional, Comprehensive Marketing Campaigns
100,000 + Customers in Database Complete Set-up Services and Equipment Capacity to do 100 - 200 Auctions per Year
A Great Industrywith Great Competitors
Local, Regional, National Ritchie Bros. – World’s Largest Industrial
Auctioneer Listed NYSE Adesa – Formerly Owned by Minnesota Light
& Power Manheim – Owned by Cox Enterprises
– 15 Billion in Revenues– 77,000 Employees
Few Publicly ListedAuction Companies
Very Few Auction Companies Publicly Listed Most Held Closely in Private Structures Opportunity For Investors in Hodgins
A GreatGrowth Strategy
Increase Margins With More Bought Deals Bought Deals
– Financial Guarantees– Out-right Purchases– Recent Bought Deals
Diversify By Market Segment & Geography
Diversify By Segment– Heavy Construction– Industrial Plant– Automobiles
Diversify By Geography– Ontario– Alberta
Grow Revenues with Online Auctions
New Technology Wholesale Auto Auction Revenue Potential
– 6000 Auto Dealers in Canada– 10% at $349 per month = $2.5 million annually– USA Market
• 60,000 Dealers• 10% at $349 per month = $25 million Annually
What We Need
This is an IPO for Hodgins Private Placement by Accredited Investors Initial Raise of $750,000 to $1,000,000
Use of Proceeds
50% Bought Deal – $500,000 Equity Levers $1,500,000
50% Working Capital– Marketing– Expand Sales Force– Seasonal Cash Flow
A Tight Structure
8,598,500 Shares Issued & Outstanding 9.2 Million Fully Diluted 55% Owned by Management Public Float Less than 4 Million Shares