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Leisure Direct Inc. Signs LOI With "MODEL" Industry Leader Thursday September 6, 9:58 am ET
PERRYSBURG, OH--(MARKET WIRE)--Sep 6, 2007 -- Leisure Direct, Inc. (OTC BB:LDTI.OB - News) announced today that it has signed a Letter of Intent (LOI) with a dealer that will become its "MODEL DEALER" as the company rolls out its plan to acquire 50-60 dealers over the next 3-5 years. With sales of over $5 million and an EBITDA of between 15-20%, this will become the Flagship Dealer against which all other acquisitions will be measured. The standardization and processes under which this dealer operates, will shorten the due diligence time for other acquisitions. ADVERTISEMENT
John R. Ayling, Leisure Direct's Chairman and CEO, stated, " We have been in negotiations with the principal for over 1 1/2 years and share the same vision for the consolidation of our industry per our Business Plan. He has agreed to stay with the company and train LDI's personnel. He will also help LDI source and analyze other possible dealer acquisitions. Utilizing the expertise obtained with this acquisition, we believe we will be able to acquire other strategically placed dealers with mediocre results and increase their margins. Most dealers can be purchased for between 1-3 times EBITDA; however, the added expertise from this acquisition will enable LDI to operate with a Return on Investment (ROI) over 50%."
Leisure Direct Inc. has been approached and is in discussions with several financing sources, including two institutional companies that will allow LDI to execute its Business Plan. These potential financings will include both debt and equity.
Leisure Direct Inc. is in different stages of due diligence for several acquisitions of other dealers and manufacturers of related products which include swimming pools, spas, infrared saunas, grills and fireplaces.
For information about Leisure Direct's Business Plan, please click on the following link. Potential investors should pay particular attention to the section (Rational For Investment) on the bottom of page 3.
It is the mission of LDTI to become the premier, highest quality and most nationally recognized manufacturer and direct marketer of pool, spa/hot tub, and outdoor recreational products in the United States. LDI will implement its strategy by acquiring existing dealers and manufacturers of backyard entertainment products and building a direct marketing distribution network.
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 27E of the Securities Act of 1934. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approvals for anticipated actions.
Contact: Contact: John R. Ayling Chairman and CEO Leisure Direct, Inc. (419) 873-1111 1070 Commerce Drive, Building II - Suite 303 Perrysburg, OH 43551 http://www.leisuredirectinc.com
-------------------------------------------------------------------------------- Source: Leisure Direct, Inc.
Posts: 443 | From: st.louis | Registered: Dec 2003
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Profit from a Unique Player in a $30 Billion Industry
-- Leisure Direct, Inc. (OTCBB: LDTI) is a unique and innovative company in the $30 billion pool, spa and backyard recreation industry concentrating its efforts in specializing in direct marketing of its product lines.
-- Leisure Direct's expansion strategy is to achieve consolidation in a highly fragmented industry through strategic accretive acquisitions and utilizing centralized Customer Service Centers to incorporate a Direct Marketing approach to maximize sales and profits.
-- Leisure Direct is in the final stages of completing several retail acquisitions, including the "Model" retail store that will be used as a prototype to acquire its entire distribution base. This store has sales of $4.8 million with an EBIT of almost $1.0 million. In addition, LDI is currently in advanced talks with several other potential acquisitions targets which would bring the first year sales total to $34.8 million with a total EBIT of $5.3 million.
Ground-Floor Opportunity
Leisure Direct, Inc. (OTCBB: LDTI) is poised to become a national leader in the manufacture and installation of pools, spas and backyard leisure products within this $30 billion industry. There are currently over 10,000 dealerships nationwide for pool and spa products, the vast majority of which are disconnected and compete for business at high cost. The highly fragmented nature of the industry has made it exceptionally difficult for current players to streamline sales, operations, and services for their customers. The result has more often than not led to expensive products and mediocre service from the customer perspective. From the manufacturing and sales perspective a great deal of energy and resources are lost and a considerable amount of time is needed to try to build customer relationships at the local level only. However, the level and depth of these local customer relationships offers tremendous opportunity for Leisure Direct, who can acquire these local stores which have typically been in business for 15-25 years and use the customer relationships that they have built to cross sell a large number of additional products.
Leisure Direct will utilize these customer relationships, along with its existing manufacturing, products, and services infrastructure to maximize savings and quality of service to customers. Simultaneously the company will profit from lower price of manufacturing, more efficient and pervasive sales capabilities, and stronger connection to broad customer networks previously established over the many years of development of the industry by independent dealerships. The company's core competency in direct marketing and sales will fit ideally with its current business plan, as it will efficiently reach regional and local consumers and modify its product offering according to their individual needs. More importantly, this business approach will make immediate use of already existing dealerships to showcase its products without having to invest further in new building structures.
The payoff from this significant consolidation results from lower set up costs, more efficient use of manufacturing operations and distribution through access to improved economies of scale, and an immediate broad source of customers. Leisure Direct will quickly establish a national marketing presence and the capacity to provide local delivery and service. Fragmented and disconnected competitors will find it difficult to compete under the pressure established by the Leisure Direct business model. Thus potential investors may stand to profit significantly from owning a part of this company at this early stage.
Risk Reduction
Leisure Direct mitigates risks whenever and wherever possible in order to contribute to the success of both the Company, and more importantly, its investors. The Company business plan boils down to the following focal points: Consolidation of an extremely fragmented market Employment of a direct marketing and direct sales strategy Establishment and building of a national brand name Cross-selling of a multitude of related products Establishment of a one-stop shopping source for consumers Creation of greater value by a lower cost to consumers and larger profits for Leisure Direct share holders
Significant and Real Growth Opportunity
Leisure Direct has identified acquisitions with combined sales of over $150 million. These acquisitions are a combination of dealers and manufacturers. With over 10,000 dealers nationally and 6,300 East of the Mississippi River, Leisure Direct will be able to quickly grow its distribution base through acquisitions. It is anticipated that the dealer acquisitions will be purchased at $.25 - $.35 on the sales dollar and two (2) times EBITDA.
Quality Product Offerings
Leisure Direct will continue to expand its backyard leisure offering to include furniture, fireplaces, barbecues, ponds, games, equipment and other backyard leisure products with customer demand and profitability. This will be a means of giving consumers a balanced and expansive quality product offering at a reasonable cost. Other products will include but are not limited to:
- Above Ground and Below Ground Pools and Spas - Portable Saunas - Air Domes for Pools - Spa Covers - Automated Pool Cleaners - Saunas - Automatic Pool Controls - Swim Spas - Pool Chlorinating Systems - Chemicals - Pool Heaters Pool - Pool Tables - Pool Pumps
Competitive Advantages
Leisure Direct will manufacture and direct market pools, spas and other backyard leisure products with a national and international presence. It will offer consumers the distinct advantage of buying low cost from a single reliable source. The company will continue to build its product offering making its level of service and product availability very difficult to duplicate by competitors. The company will take advantage of a lower cost, more efficient distribution channel from which it can ship its growing number of products. Products will be delivered directly to consumer's site. Growing high quality product offering gives consumers access to pool, spa and backyard leisure products not normally available from one location. Direct factory to consumer approach offers better client contact and potential for strong, loyal relationship formation. Establishing a direct relationship with consumers is by far the most efficient way to serve them, eliminating confusion resulting from interaction with the middle person and reseller intermediaries. Consumers interact more comfortably in this streamlined process where they have more reliable and quick access to resources. Leisure Direct will use state of the art technology to help a customer design their backyard from the comfort of their living room. Using satellite feeds, GPS technology and videos/pictures of the property uploaded by the consumer, Leisure Direct can help design a backyard based on the soil content of the area, size and shape of the property and the consumer's input.
Leisure Direct's Projected Sales and EBIT
The following table sets forth Leisure Direct's estimates for revenue and earnings before interest and taxes. These estimates are for the first three (3) full years of operation after acceptable financing is sourced. These estimates are based on potential acquisitions LDI has identified. These estimates are forward looking and are based on acquiring and closing the identified acquisitions and the availability of financing.
Year (1) Year (2) Year (3) Revenue $34.8 Mil $58.4 Mil $86.2 Mil EBIT $5.3 Mil $6.8 Mil $12.7 Mil
Rationale for Leisure Direct Investment
We are Public (Exit Strategy). LDI's stock is trading at an all-time low (3 yr. range; $3.74 - $.021) Tight Capital Structure (1,500,000 shares in Trading Float—about half of those have a cost basis above $2.00). Management is shareholder and market conscious. Low operating cost (About $10,000 a month operating cost including being public cost). We have a mature, believable, scaleable Business Plan. We have identified acquisition candidates (over $150 million in combined sales). Seasoned management that has had Public Market experience. We have identified our opportunities and our problems. Management is committed and has invested in the company. Low debt and burn rate. Acquisitions are accretive. Can purchase companies for $.25 - .50 on sales dollar and finance them for $2-3 sales dollar (4-12 times leverage).
Experienced Management
Officers and Executive Management
John R. Ayling – Chairman of the Board John R. Ayling is Leisure Direct's Chairman of the Board, its largest shareholder, and co-founder. Since 1989, he has served as president of Continental Capital Management, Inc., a Sylvania, Ohio, money management firm. From 1983 to 1988, he served as a Vice President at Oberweis Securities. From 1969 to 1982, he managed accounts for individuals and institutions with Bell & Beckwith, a Toledo, Ohio broker dealer. Mr. Ayling is a NASD registered representative and holds Series 7, 24, and 63 licenses. From 1966 to 1968, he served as a Captain with the U.S. Army. Mr. Ayling has helped launch several start-up operations, financed several business enterprises, and provided management support and development for all phases of management, with an emphasis on business integration and financial controls. Mr. Ayling is a graduate of the University of Toledo.
Robert Dapper – President Robert Dapper is the founder of Royal Spa Manufacturing, based in Indianapolis, IN. He started Royal Spas as an engineering student at Purdue University, incorporated in 1983, and has grown the company to one of the most successful spa manufacturing and distribution companies in the industry, with its wholly owned stores, and over 60 affiliated dealers in 17 states.
David Clark – Vice President of Business Development David Clark has over 25 years of experience in planning, launching and growing businesses with both large public companies and entrepreneurial ventures. He has proven international expertise in strategic planning, business and product development, sales and marketing and strategic alliances with several companies including Mellon Bank, Ernst & Young and Hogan Systems. As CEO of an early stage venture, he received the Growth 100 Award from Kelley School of Business at Indiana University.
Ernie Stevens – Vice President of Operations Ernie Stevens has 29 years of senior operations experience in the pool and spa industry. In 1987, Mr. Stevens joined Clark Manufacturing, d/b/a/ Sundance Spas, as Director of Operations. At the time, Clark Manufacturing was the U.S.'s second largest spa manufacturer. From 1979 to 1987, he served as Manufacturing Manager of Printronix, a manufacturer of advanced dot matrix printers. From 1975 to 1979, Mr. Stevens was Plant Manager for Far West, Inc. Leisure Time Products, and a custom and recreational vehicle manufacturer. From 1973 to 1975, he was Operations Manager of Imperial Vans, a manufacturer of recreational vehicles. Mr. Stevens received his advanced management training at Long Beach City College, Orange Coast College and the University of California Irvine School of Management.
In addition to the officers and management, Leisure Direct intends to put into place two advisory boards; a Business Advisory Board, and a Technology Advisory Board.
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 27E of the Securities Act of 1934. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approvals for anticipated actions.
Contact: John R. Ayling, Chairman Leisure Direct, Inc. 1070 Commerce Drive, Building II – Suite 303 Perrysburg, OH 43551
Ummmm......buy low, sell high? LOL J/K I'd wait for it to fall below .05...jmo
-------------------- Please DON'T invest on JMO. Do YOUR research. Invest UR money the way YOU would like to! Thanks! ;) Posts: 936 | From: Virginia | Registered: Aug 2007
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It may take you long time to get shares at 0.04.Price is holding at 0.05 for months.
Posts: 443 | From: st.louis | Registered: Dec 2003
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quote: Ummmm......buy low, sell high? LOL J/K I'd wait for it to fall below .05..
(Patting self on back) Patience is a virtue....Now may be the time to get in on it! I would have to agree as well...in at 4 out at 7....maybe 8.
-------------------- Please DON'T invest on JMO. Do YOUR research. Invest UR money the way YOU would like to! Thanks! ;) Posts: 936 | From: Virginia | Registered: Aug 2007
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With some good news this could go to 0.20 or maybe even more.Level II is very thin.
Posts: 443 | From: st.louis | Registered: Dec 2003
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