Investor s Luncheon July 19, 2017 Tony Giovaniello, President, Shasta EDC
Try not to become a man of success, but rather try to become a man of value. Albert Einstein
Always do right. This will surprise some people and astonish the rest. Mark Twain
An optimist sees an opportunity in every calamity; a pessimist sees a calamity in every opportunity. Sir Winston Churchill
Two sales people from the shoe factory were dispatched to Africa. They each sent back a telegram:,
One said: Get me out of here, no one wears shoes here! The other said: Send me more inventory, no one owns shoes here!
Agenda Board Update Financials Startup Overview & Kick Start Program Events Recruitment Activity Airline Update Strategic Direction
Board Update
Board Update Joe Cerami Cerami & Browning Construction Vice Chairman Steve Williams InterWest Insurance Chairman Michele Goedert Commercial Real Estate Agent Executive Committee Keith Hunting D.H. Scott & Company At Large Board Member
Financials
TOTAL Total Budget YTD Budget YTD Actual YTD Over (Under) % Over (Under) Ordinary Income/Expense Income 4010 Contract - City of Anderson 20,000.00 20,000.00 0.00-20,000.00-100% 4020 Contract - City of Redding 76,000.00 76,000.00 76,000.00 0.00 0% 4025 - Contract - City of Redding CDBG 50,000.00 50,000.00 38,350.28-11,649.72-23% 4030 Contract - City of Shasta Lake 27,500.00 27,500.00 27,500.00 0.00 0% 4040 Contract - County of Shasta 57,500.00 57,500.00 57,500.00 0.00 0% 4120 Shasta EDC Campaign 120,000.00 120,000.00 117,900.00-2,100.00-2% 4160 Campaign Income - In-Kind 5,000.00 5,000.00-5,000.00-100% 4246 - Event Income 4246.1 - Gamechangers 10,500.00 10,500.00 11,375.55 875.55 8% 4246.6 - Start up Weekend 6,258.43 4246.4 - Sponsorships 5,000.00 5,000.00 3,000.00-2,000.00-40% 4410 Board Meeting Income 5,000.00 5,000.00 4,463.00-537.00-11% 4900 Interest Income 200.00 200.00 239.78 39.78 20% 4910 Miscellaneous Income 250.00 250.00 7,750.00 7,500.00 3000% Total Income 376,950.00 376,950.00 350,337.04-26,612.96-7%
TOTAL Total Budget YTD Budget YTD Actual YTD Over (Under) % Over (Under) Expense 6000 Operating Expenses 51,300.00 51,300.00 42,497.74-8,802.26 6120 Administrative Expenses Salaries and Fringes 225,319.00 225,319.00 197,580.68-27,738.32-12% 6210 General Marketing Expenses 19,560.00 19,560.00 12,298.97-7,261.03 6215 - External Marketing 6215.1 - Telemarketing 25,000.00 25,000.00 7,425.00-17,575.00-70% 6215.3 - Web Prospecting/Optimize 25,000.00 25,000.00 15,085.71-9,914.29-40% 6215.4 - PR Stories 14,000.00 14,000.00 0.00-14,000.00-100% 6351 Local Retention Marketing Expenses 6356 Business Development Local 2,500.00 2,500.00 12,729.37 10,229.37 409% 6359 - EDC - Airline Travel Bank 1,700.00 1,700.00-1,700.00-100% 6358 - Start-Up Development 6358.1 - Gamechangers 10,500.00 10,500.00 13,207.10 2,707.10 26% 6358.2 - B&B Pitch Breakfasts 7,480.00 7,480.00 2,880.23-4,599.77-61% 6358.3 - Website 155.00 155.00 0.00-155.00-100% 6358.4 - Startup Dev Curriculum 4,000.00 4,000.00 4,724.48 724.48 18% 6358.9 - Venture Hub Video 4,000.00 4,000.00 3,976.00-24.00-1% 6358.8 - Event Expenses 0.00 0.00 157.00 157.00 6380 Attraction Marketing 6381 Prospecting 5,000.00 5,000.00 1,027.05-3,972.95-79% 6384 Site Visits 8,000.00 8,000.00 643.88-7,356.12-92% 6385 - Trade Shows 1,000.00 1,000.00-1,000.00-100% 6387 Trade Shows/CREA Events 6389 CREA Conferences 5,000.00 5,000.00 4,362.61-637.39-13% 6391 Chapter Meetings 2,500.00 2,500.00 0.00-2,500.00-100% Total Expense 431,574.00 431,574.00 330,894.79-100,679.21-23%
Net Ordinary Income -54,624.00-54,624.00 19,442.25 74,066.25 Other Expense Shasta Venture Hub Net Income -3,813.00-3,813.00 4,346.99 8,159.99 Net Other Income -3,813.00-3,813.00 4,346.99 8,159.99 Net Income -58,437.00-58,437.00 23,789.24 82,226.24
Shasta Venture Hub Total Budget Month Budget June YTD Budget YTD Actual Over/Under Ordinary Income/Expense Income 4125 Shasta Venture Hub 49,708.00 4,142.33 2,800.00 49,708.00 47,600.00-2,108.00 4127.1 - Sublease Tegile 37,116.00 3,093.00 4,268.34 37,116.00 38,291.34 1,175.34 4127.2 - Sublease EDC 10,800.00 900.00 900.00 10,800.00 10,800.00 0.00 4246 Event Income 1,950.00 162.50 0.00 1,950.00 300.00-1,650.00 Total Income 99,574.00 8,297.83 7,968.34 99,574.00 96,991.34-2,582.66 Expense 7010 - Bad Debt 5,160.00 430.00 0.00 5,160.00 650.00-4,510.00 6085 - Rent 60,216.00 5,018.00 5,018.40 60,216.00 60,220.80 4.80 6061 - Internet 14,376.00 1,198.00 1,198.00 14,376.00 14,376.00 0.00 6238 - Tech Support 1,500.00 125.00 1,500.00-1,500.00 6239 -Utilities/Common Area Supplies 4,000.00 333.33 205.80 4,000.00 2,562.60-1,437.40 6071 - Janitorial 6,000.00 500.00 600.00 6,000.00 7,568.51 1,568.51 6086 - Repairs & Maintenance 2,000.00 166.67 8.04 2,000.00 5,939.56 3,939.56 6083 - Office Supplies 2,500.00 208.33 0.00 2,500.00 0.00-2,500.00 6235 - Marketing 7,635.00 636.25 7,635.00 6021 Bank Service Charges 0.00 0.00 110.65 0.00 1,326.88 1,326.88 Total Expense 103,387.00 8,615.58 7,140.89 103,387.00 92,644.35-10,742.65 Net Ordinary Income -3,813.00-317.75 827.45-3,813.00 4,346.99 8,159.99
Balance Sheet Summary June 17 Jul-16 ASSETS. Current Assets Checking/Savings 1005 Cash in Tri Counties Checking 28,077.45 34,362.91 1015 Pay Pal 0.00 114.54 1040 Cash in RBC-CD 154,601.17 154,388.51 Total Checking/Savings 182,678.62 188,865.96 Accounts Receivable 1200 Accounts Receivable 100.00 5,524.00 1220 Pledges Receivable 29,850.00 6,750.00 1230 Grants Receivable 31,416.57 34,051.66 Total Accounts Receivable 61,366.57 46,325.66 Total Current Assets 261,602.59 247,768.87 Total Fixed Assets 107,865.30 121,463.39 TOTAL ASSETS 369,467.89 369,232.26 LIABILITIES & EQUITY Liabilities Total Current Liabilities 27,221.37 34,956.50 Total Liabilities 27,221.37 34,956.50 Equity 3000 Opening Bal Equity 233,753.69 233,753.69 3900 Retained Earnings 72,404.62 89,872.76 Net Income 36,088.21 10,649.31 Total Equity 342,246.52 334,275.76 TOTAL LIABILITIES & EQUITY 369,467.89 369,232.26
Recruitment Activity
Recruitment Update Larger Projects in 2016/2017: Project Flicker Project Red Fox Project Spectrum Project Eagle Project Yellow Shoes Project Falcon Employees 375 27 70 4,415 150 450
Recruitment Update Current Projects: Project H2 Project Bull Project Electric Project D&S Family Project Liquid Project Varietals Employees 22 10 XX 50-100 50-70 125-450
Startup Overview & Kick Start Program
Airline Update
SKYWEST/UNITED EXPRESS The Jet Service load factor for June 2017 is: Departures = 81.54% Arrivals = 73.29% Cancellations = 6 PENAIR The load factor for the month of June 2017 is: Departures = 56.75% Arrivals = 59.52% Cancellations = 4 The Jet Service load factor 2017 YTD: Departures = 75.41% Arrivals = 68.90% Cancellations = 72 The load factor for 2017 YTD is: Departures = 49.42% Arrivals = 45.44% Cancellations = 73
Airline Update Corporate Headquarters Meeting Requests: United - August 9 th Chicago SkyWest - August 17 th St. George
Events
June 27, 2017
Events in June June 1 st June 8 th June 11 th June 15 th June 16 th June 23/24 th June 26th June 27th June 27th - JEDI Women in Business Conference Pitch Breakfast - Presentation to Chinese Delegation of 30+ Chairmen & CEOs - Beer & Bytes Reverse TED zmad Leadership Experience - Marketing and E-Commerce Boot Camp for International Trade - Elephant Eater s (AdForce Local) - Elephant Eater s Lunch (RADD) - Global Relations Fellowship (Leadership Training)
Events Planned/Scheduled for July Scheduled: July 6 th July 13 th July 19 th July 20t h July 27 th - CAL Competes Conference - Chamber of Commerce Greeters Meeting Hosted by AdForce Local - Investor s Brown Bag Pitch Breakfast - Beer & Bytes Planned: Shasta County District Attorneys Town Hall GMI Shasta Meeting Project Hometown Kick-off Meeting
Strategic Direction
Strategic Direction Headwinds: City of Anderson $20K CDBG Grant $50K??? Lease Renewal Increasing Occupancy Costs $22K Breakeven at SVH is Not Really Breakeven ($25-55K) Startup Support Alternatives Migration Downtown Funding Competition in Startup Support Startup Funding Challenges (Seed Money) More Recruitment Activity
Ahead Full Speed Full Focus on Recruitment, Expansion, and Retention Open Approach, Telecommuters, Free Lancers Open Approach, Telecommuters, Free Lancers
EDC Accomplishments and Goals
EDC s Selected Accomplishments May Dec 2016 Expansion such as Captive Aire, 30 New Employees Recruitment such as Alta California Roundwork 20 New Employees Valley Pacific Purchase from Walt Schneider Two Offers on Stillwater Developing Opportunities such as D & S Family, LLC Will re-engage at end of Q1 RFI Activity from State Accelerating Responded to 3 Last Year, Multiple Site Responses, 2 Last Week Still Working on Project Varietals Since April 2016, 5 Visits in 2016 Eight (8) Meetings with CEO/CFO/VP from Telemarketing Increased Offices Rented from 5 to 11, Put two more Offices in Service Game Changers 2016 300+ People, 20 Exhibitors Incubated and Accelerated Cloud Wise Academy (3 New Employees), 3 Others landed tech jobs Helped start Tuition Fund to Provide Tuition Assistance to Needed Second Annual Startup Weekend ATB Extension, 3 Airline Meetings, Portland Service Added, 3 rd United Flight Working to mitigate Emerald Kingdom, New Process for Managing Offers Met with 30 Board Members and Investors for Updates and Input
EDC s Selected Accomplishments January June 2017 Alta California Roundwork 20 New Employees, Fire Support Secured Job credits for Bullert Electric s New Build by Airport Valley Pacific Increase Rail Service Availability, Use Permitting Continued Pursuit of D & S Family, LLC RFI Activity from State Accelerating 3 last year, 4 already this year Developing Project Liquid, Project H2O Still Working on Project Varietals Since April 2016, 7 Visits Down to Under 10 Sites Replaced Hope Seth with Split Approached, Todd Jones.5 FTE, Cloud Potential Contract Secured $10K/month free Google Adwords Started Grow Manufacturing Initiative Shasta 4 Meetings to date, Cloud Wise developing soft skill training Accelerated Expansion Use of SVH for Community Events Third Annual Startup Weekend Planning, Building up Startup Redding Organization Mead Hunt Conference Speed Dated 5 Airline, Strategy Development for UA, AA, and Alaska Planning for Project Hometown Negotiated/Contracted with Oppsites Web-based Site Marketing Database to generate leads EDC Website Content Articles Local Businesses, SEO, Growing Hits, Website Redesign Tony Giovaniello Manufacturing Conference Articles on Robotics, Insourcing Supply Chain GC Social Media campaigns: EDC and SVH; FB, LI, Twitter One of 6 EDOs to present to Chinese Business Delegation in Sacramento Commercial Real Estate Broker s Meeting @ SVH February, Engaged Panattoni Development Partner Building Brand with Go-Biz, Engaging with Assemblyman Dahle and Senator Ted Gaines Collaboration with Chamber, SBE, and Visit Redding/Shasta Cascade Wonderland Amplify Business Conference, Mexico Import/Export Symposium Many Community Presentations: Realtors, Rotary, Lions, NBA, more Joined Workforce Development Boards: RHS, Simpson Shasta Angels/SVH Process Alignment and Coordinated Mentoring Total Mentoring Hours = 75 Hours 4 Pitch Breakfasts, 3 Beer & Bytes with Programs
EDC s Objectives July 2017/June 2018 Close on Lease - 2017/2018 Assist Captive Aire with Incentive Agreement, Assist Bullert Electric in New Construction Valley Pacific Continue Building Rail Service Availability for Other Businesses Further Develop Opportunity with D & S Family, LLC Close on Project Varietals, Project Eagle, Project H20, Project Liquid, Project Spectrum Next Round of Telemarketing Calls (Lead Development) Continue to Expand Use of SVH for Community Events Third Annual Startup Weekend, Start Migration to Startup Redding, New CDBG Program/Marketing ATB Extension, 3 Airline Meetings, Adopted into Long Term, Multi-Destination Strategy of United or American In person meetings with all Board Members and Investors (2017) New Management System for Colliers and New EDC Driven Marketing Strategy for Stillwater Telecommuting-Free Lancer Strategy, Meetings with Google, Facebook, HP, Others Marketing Material/Web Sales Core Competency Development and Marketing Project Hometown Development and Deployment Re-architect Website, Mentor Database Continue Development of Grow Manufacturing Initiative New Marketing Material: Redding MSA/Shasta County, Come Home, Video/Granzellas State Incentive Lobbying
Other Initiatives: GMI Shasta Project Hometown Inside Sales Core Competency