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Madison Bay Holdings, Inc. Announces 2006 First Quarter Business Update and Overview Report March 31, 2006 Friday March 31, 9:30 am ET Business Overview
SEATTLE, March 31 /PRNewswire-FirstCall/ -- Madison Bay Holdings, Inc. (Pink Sheets: MDBY - News) is a holding company engaged in the acquisition or merger of operating companies primarily in the marine, recreational vehicle (RV) or leisure product business.
On occasion an acquisition or business venture with a company outside the marine or leisure product industry will be completed depending upon the capability of management to understand and operate the business and the financial ability of MDBY to finance the venture without jeopardizing ongoing operations or other opportunities. The prime consideration for all acquisitions shall be based on return on investment, fit within the company, cash flow and other financial considerations to assure continued increase in shareholder value.
In 2005 a merger was completed with Summit Coaches and Madison Bay Marine Development, which ultimately led to a change in name to Madison Bay Holdings, Inc. Prior to the merger Madison Bay operated for many years as a private company providing business development services, consulting, marketing and direct sales services to growth oriented small cap companies, or distressed and start up companies.
Madison Bay acquired, or was responsible for the acquisition of four boat companies in the past four years. These acquisitions were completed in conjunction with other companies and Madison Bay generated earnings through fees, commissions, or equity earnings.
The plan for MDBY is to continue to capitalize on the resources and experience to acquire or "roll up" a number of marine, RV, or other leisure product companies. Currently the company owns the molds, equipment and prototype to manufacture the state of the art 38 foot Stiletto fifth wheel trailer. The company also owns the exclusive distribution rights for Warlock Power Boats and has a first right of refusal to acquire Warlock Power Boats.
There are increasing opportunities within the marine, RV, aviation and other leisure product sectors in manufacturing and retailing as a result of the maturing of many companies and the increasing size of companies that were founded over the past ten to thirty years. The owners are becoming of "baby boomer" age and are looking for an exit strategy. In many cases the companies have grown beyond the ability, or desire of the owners to manage, or finance the business.
This was one of the prime considerations for acquiring a public company. With the ability to raise capital through the public markets MDBY can offer an exit strategy to many privately held companies, acquire "spin offs" of divisions, or complete asset purchases in distress situations.
As progress is made it shall be a goal to ultimately become listed as a fully reporting Bulletin Board company as soon as possible. It is feasible that this could occur within a one year period. At this point larger multi-million dollar companies may be acquired and revenues and profits will increase accordingly.
With multiple acquisitions and continued a continued "roll up" strategy, revenues in the range of $70 million to over $100 million may be reached. In addition to increasing revenues through acquisition and merger, the fact that the company is operating in markets and products that can sell in excess of $200,000 per unit and when a yacht project is completed unit sales can be $3 million to $15 million per unit.
-------------------- "Whether you think that you can, or that you can't, you are usually right." - Henry Ford
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thanks, seems to be a good pick. I'll wait till the pps comes back down after the hype, then I intend to scoop some up. This might be a sleeping giant like MOTG, if they can produce what they say... Thanks
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