kernan ppt mlm 9-13-11
TRANSCRIPT
MISSION STATEMENT
DreamerTopia, LLC will excel in establishing an e-
commerce, online promotion, online
entertainment, and social networking environment
that will serve as an “evolution” to community-
based websites.
THE PROBLEM
These sites have predominantly limited their scope, offering only the opportunity to create connections and share updates. Users must bounce from shopping to news to video sites to social networking accounts and back, lacking a centralized hub.
While there are a large number of social networks available on the market today…
THE SOLUTION
DreamerTopia offers…DreamerTopia offers…
DreamerTopia will be the first social network that also DreamerTopia will be the first social network that also provides entertainment, shopping, and the latest news.provides entertainment, shopping, and the latest news.
Personal profile pages
News aggregator
Educational information
Advertising platform
Business networking
platform
Online auction
Marketplace
Streaming video Streaming television
Online gaming network
Streaming radio
MARKET OPPORTUNITY
Approximately 148 million Americans engage in social networking
Social network spending will reach $6 billion worldwide by the close of 2011
One in two Americans will have a smartphone by December 2011
83% of American Internet users access online videos each month
COMPETITION
Lack the ability to interface with all aspects of a person’s personal and professional life
Benefit from an established user base
None provides consumers with the opportunity to stream live television or read aggregated news from one source
Provides a better resource for today’s busy Internet user
Recognizes the need for accessibility across multiple platforms
Applications to balance work and life
Unique and innovative business model
Targeted niche that will grow over time
Current Social Networking Sites
COMPETITIVE ADVANTAGES
Browser-based application One-stop shop – everything in one place Variety of revenue streams Dedicated management team Committed to honesty, integrity, and professionalism Mobile application will become available Gives users the freedom to manage all their online
activities from one location
MANAGEMENT TEAM
Donald Alan Kernan Jr. Owner & Chief Executive Officer Creator of Banner Broker, Inc., an online banner ad and profit-sharing platform
Generated 12,000 users in two months and 2,500 active users within weeks of the company’s formal launch date; led advertising growth to $1.25 million in sales over just three months
Has raised more than $100 million to launch DreamerTopia with zero debt
Donald Alan Kernan Sr. Interim Vice President Accomplished career in numerous military and public safety positions
Currently serves as a police lieutenant; veteran of Operations Desert Storm and Desert Shield
MANAGEMENT TEAM, CONT’D
Kenneth T. WeilChief Financial Officer President of Consult Your CFO, Inc., an interim CFO company
Expertise includes analysis of internal accounting, finance processes, and accounting system implementations
Earned an MBA from Loyola University in Baltimore, Maryland
Madelyn EspirituChief Operations Officer 15 years of successful experience providing support to startup ventures,
independent business owners, and Fortune 500 companies regarding operations, supply chain management, and logistics
Core competencies include planning, purchasing, and management
FINANCIAL SUMMARY
Post-Funding Financial GoalsYear 1 Year 2 Year 3 Year 4 Year 5
Revenue $41,355,900 $117,500,000 $235,000,000 $352,500,000 $470,000,000
Gross Margin $40,626,090 $113,000,000 $226,000,000 $339,000,000 $452,000,000
Operating Expenses $24,214,811 $66,765,168 $131,292,544 $194,400,164 $256,149,025
EBITDA* $16,612,612 $46,436,166 $94,908,789 $144,801,170 $196,052,309
Net Profit $15,024,451 $46,198,430 $94,680,446 $144,582,898 $195,844,837
Profitability Ratios
Gross Margin/Revenue 98% 96% 96% 96% 96%
EBITDA/Revenue 40% 40% 40% 41% 42%
Net Profit/Revenue 36% 39% 40% 41% 42%
Debt Ratios
Debt Ratio (Total Debt/Total Assets) 1.50% 2.66% 3.51% 3.54% 3.27%
Interest Coverage Ratio 11.98 1275.64 3513.88 8548.78 31937.18
Debt Service Coverage Ratio 13.13 -496.51 -845.06 -1093.22 -1272.63
Days on Hand
Receivables 30 30 30 30 30
Inventory 0 0 0 0 0
Payables 30 30 30 30 30
Net Cash Flow $186,926,200 $175,870,882 $224,486,972 $315,244,607 $455,777,875
Cash Balance - Ending $175,870,882 $224,486,972 $315,244,607 $455,777,875 $647,450,544
*Earnings before interest, taxes, depreciation & amortization
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Year 1 Year 2 Year 3 Year 4 Year 5
Revenue $41,355,900 $117,500,000 $235,000,000 $352,500,000 $470,000,000
Gross Margin $40,626,090 $113,000,000 $226,000,000 $339,000,000 $452,000,000
Operating Expenses $24,214,811 $66,765,168 $131,292,544 $194,400,164 $256,149,025
EBITDA* $16,612,612 $46,436,166 $94,908,789 $144,801,170 $196,052,309
Net Profit $15,024,451 $46,198,430 $94,680,446 $144,582,898 $195,844,837
Profitability Ratios
Gross Margin/Revenue 98% 96% 96% 96% 96%
EBITDA/Revenue 40% 40% 40% 41% 42%
Net Profit/Revenue 36% 39% 40% 41% 42%
Debt Ratios
Debt Ratio (Total Debt/Total Assets) 1.50% 2.66% 3.51% 3.54% 3.27%
Interest Coverage Ratio 11.98 1275.64 3513.88 8548.78 31937.18
Debt Service Coverage Ratio 13.13 -496.51 -845.06 -1093.22 -1272.63
Days on Hand
Receivables 30 30 30 30 30
Inventory 0 0 0 0 0
Payables 30 30 30 30 30
Net Cash Flow $186,926,200 $175,870,882 $224,486,972 $315,244,607 $455,777,875
Cash Balance - Ending $175,870,882 $224,486,972 $315,244,607 $455,777,875 $647,450,544
*Earnings before interest, taxes, depreciation & amortization
FIN
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FUNDING
DreamerTopia will be capitalized by a combined
~$191.8 million from multiple sources of funding
including loans, investment, and PPP
financing.
DreamerTopia.co $700,000
Fractal Dimensions - Loan $20,000,000
Fractal Dimensions - Investment $15,000,000
Skyline Financial $100,000
Corporate Venture Partners $225,000
BMT $50,000
Tradeline $225,000
Gemini Small Cap $80,000,000
MT-799 Small Cap PPP $476,000
Miscellaneous PPP $75,000,000
Total Sources $191,776,000
Start-up Expenses
Operating Costs $78,500
Server Costs $69,000
Salaries $399,300
True Global $1,283,000
Total Start-up Expenses $1,829,800
Start-up Assets
Starting Cash Balance $186,926,200
Inventory $0
Other Current Assets $0
Equipment $20,000
Property/Equipment/Buildout $3,000,000
Other Long-term Assets $0
Total Start-up Assets $189,946,200
Total Uses $191,776,000
SOURCES OF FUNDS
USES OF FUNDS
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