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Thanks Stocktrader - MrGwumpy - I thought this would move a little igher then this with the news but it's still early.
Posts: 1086 | Registered: Oct 2005
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News for 'NEXH' - (Nexia Announces Plans to Open Second Landis Lifestyle Salon -Expects to Generate $1 Million in Sales within Its First Year of Operations-)
SALT LAKE CITY, Jan 19, 2007 /PRNewswire-FirstCall via COMTEX/ -- Nexia Holdings, Inc. (OTC Bulletin Board: NEXH), announced today that Landis LLC has signed a letter of intent to open a second Landis Lifestyle Salon location in the Park Centre Development in Cottonwood Heights during the spring of 2007. This new location would consist of approximately 2,600 square feet and would be a full service Aveda(TM) salon. This size would accommodate 12 stations, two treatment rooms and a full retail outlet for Aveda(TM) products. This new location would provide additional placement opportunities for graduates of the current training program at the Landis headquarters.
The second location is expected to add $1 million in gross revenues during its first year of operations. This additional location will be the second of at least three new locations to be opened in the Salt Lake Valley over the next 24 to 36 months. "Looking forward to a total of five locations, the Landis operations are expected to contribute about $6 million in gross revenues within three years," according to Richard Surber, President of Nexia Holdings, Inc.
Matthew Landis, founder of Landis Lifestyle Salon, stated, "The entire staff at Landis is looking forward to bringing our high quality Aveda(TM) based services into the southeast portion of the Salt Lake Valley. The construction and build-out of the new space will be completed with an awareness of our responsibility to the environment. This means we will be using healthy and sustainable building materials and processes in completing this new location."
Mr. Surber released estimated costs related to the opening of the new salon would include, $214,700 for furniture, equipment and set up costs, $73,000 to stock the location with inventory and the full range of Aveda(TM) products carried by Landis Lifestyle Salons, anticipated new advertising and marketing costs related to the opening would be $45,000 and other one time expenses of $20,000. Total costs related to the opening of the salon would be $352,700. Mr. Surber further noted that, "Over $100,000 of the cost will be contributed in the form of tenant improvements by the landlord."
The goal for Landis Salons will be to increase same store revenues by 40% during 2007. To meet that goal, gross revenues for the current location would need to increase from $1.33 million in 2006 to $1.9 million for 2007.
Mr. Surber had earlier observed that, "Landis began operations in November of 2005, giving us comparable sales information for the month of December to consider. Landis generated $80,663 in sales in December 2005 compared to $151,027 for December in 2006, giving us an incredible 87% increase in sales."
Mr. Landis concluded, "Revenues for January are already up over 70% over last year. We are off to a fantastic start!"
Nexia strongly encourages the public to read the above information in conjunction with its Form 10-KSB for December 31, 2005 and for the subsequent quarters during 2006. Nexia's disclosures can be viewed at www.nexiaholdings.com and www.sec.gov.Posts: 1086 | Registered: Oct 2005
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