Dear Investor
A top analyst at an equity research firm has initiated independent coverage
on the Neptune Society and we at Investors Edge believe the Neptune story
and the company's success is well worth a little investigation. Key among
the analysts findings were:
A 67 % Increase In Revenues
Over The Same Period In The Prior Year
A 55 % Increase In Gross
Margins Over The Same Period In The Prior Year
An $8 Target Price, $9
Takeover Price, And An 'Aggressive Buy' Recommendation
The Neptune Society is a solid company with experienced management,
predictable profits, 'Pre-Need' contracts that have an annual compound
rate of 32.7% from 1998 to 2000, and a $40 million trust fund that is expected
to exceed $74 million by 2004.
The Neptune Society was recently relisted on the OTC BB with the trading
symbol NTUN and is now seeking to be listed on the NASDAQ for higher visibility
and broader market exposure.
Banyan Capital Markets LLC, an equities research firm, has issued an
in-depth report on the Neptune Society. Highlights of the report are listed
below followed by Banyan's press release and contact information.
Of The Research Report
And Key Investment Considerations
-
The Neptune Society® is the only public “pure play” in the cremation
segment of the death-care services industry and the company benefits from
extensive goodwill from its reputation and high visibility brand name built
during its 27-year history.
-
The compelling value proposition for cremation is its simple, dignified,
environmentally friendly and economical ($799 to $1,299) alternative to
traditional burial service ($5,000+). The cremation industry is taking
market share away from traditional burials, increasing from six percent
in 1975 to 24 percent in 1998 (0.55 MM cremations) and projected to reach
38.2 percent by 2010 (1.0 MM cremations). The $15 billion annual death
care services industry is highly fragmented with the top six companies
having a 25% market share and numerous acquisition opportunities available.
-
The Neptune Society serves customers in 35 major metro areas with 16 offices
located in 6 states (CA, FL, WA, OR, NY and IA), excluding the corporate
offices and a dedicated “call center” with 20 telemarketers in Tempe, AZ.
One part of the company's business model includes opening offices in new
locations (that meet stringent growth criteria) and making selective acquisitions.
-
The Neptune Society's new management team, assembled since 1999, has substantial
industry expertise. The management has implemented a multi-pronged marketing
strategy focused on selling “Pre-Need” cremation plans. Including direct
sales over their Web site, the strategy also includes direct mail of approximately
six million pieces being sent in 2001 and the support of five sales managers
with approximately 200 independent, commission- only sales representatives
providing follow-up.
FOR IMMEDIATE RELEASE
COMPANY CONTACT:
Gary R. Loffredo, Director
(800) 535-7935
BANYAN CAPITAL INITIATES COVERAGE ON THE NEPTUNE SOCIETY WITH AN
$8 TARGET PRICE, $9 TAKEOVER PRICE
AND AN ‘AGGRESSIVE BUY’ RATING
-Top Analyst Reports On Strong
Brand Name, Effective Marketing And Growth In Cremation Demand-
Deerfield Beach, FL, July 10, 2001 – Banyan Capital Markets,
LLC announced today that it has initiated coverage of The Neptune Society®,
(OTC BB: NTUN), with a 12-month, $8.00 per share target price, a $9.00
per share takeover price, and an ‘Aggressive Buy’ rating.
“The Neptune Society is the only ‘pure play’ public company focused
solely on the cremation segment of the death care services industry,” said
Louis M. Fischler, CFA, and VP of Investment Banking And Research at Banyan.
“We feel that The Neptune Society® name has tremendous brand equity
due to its industry leadership over its 27-year history.
“Also, Neptune’s fiscal first quarter results showed strong revenue
growth and a significant improvement in operating cash flow, net of non-recurring
and non-cash expenses, versus last year’s first quarter. The Neptune Society
has developed a highly-effective, multi-pronged marketing program for selling
“Pre-Need” cremation contracts that consists of direct mail campaigns,
telemarketing (using its own call center), direct sales by independent
contractors, and a new Web site.”
The $15 billion death care services industry is highly fragmented with
the top six companies holding only a 25 percent market share. Traditional
burials, which actually declined in the first quarter of 2001, are losing
market to cremations. The Cremation Association of North America estimates
the market share for cremation will increase from approximately 26 percent
to over 36 percent in 2010, or approximately 1 million cremations per year.
“This growth can be attributed, in large part, to the average cost of
a cremation only being 15 to 25 percent of the average cost of a traditional
burial, as well as to greater acceptance by the general public based upon
religious, environmental and other considerations,” said Mr. Fischler.
According to the report, The Neptune Society achieved a 67 percent increase
in revenues in Q1-2001 versus Q1-2000. As a percentage of revenue, the
company also increased its gross profit margin by 55 percent and improved
its EBITDA by $742,000.
About Banyan Capital
Banyan Capital Markets, LLC is an NASD member broker-dealer that provides
investment-banking services to middle market and early stage private and
public companies. It recently started a division to provide equity research
for its clients including the portfolio companies of Banyan Capital Partners,
Inc., an affiliated “principal venture capital(TM)”
firm.
About the Neptune Society
Headquartered in Burbank, CA., The Neptune Society Inc. is one of North
America’s largest cremation specialists, and is the only publicly traded
company dealing solely in cremation services. The Neptune Society, operating
for nearly three decades with locations in California, Florida, New York,
Washington, Iowa, Oregon and Arizona has provided thousands of cremation
services and currently has in excess of 60,000 active contracts and approximately
$37 million in trust in its unique Pre-Need program. The Neptune Society’s
goal is to provide a simple, dignified and economic alternative to the
traditional funeral burial service system.
Safe Harbor
This press release may contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Readers/Investors
are cautioned that the forward- looking statements are inherently uncertain,
including statements related to the Company’s business strategy, success
of its acquisitions, its ability to implement its current business and
growth strategies, the ability to implement acquisitions and start up offices
into its existing operations, its ability to obtain sufficient financing
to fund its proposed growth, the Company’s ability to develop its brand
name and effectively market its services and the Company’s expectations
for future success. Actual performance and results of operations
may differ materially from those projected or suggested. The forward-looking
statements contained herein represent the Company’s judgment as of the
date of this release, and the Company cautions the reader not to place
undue reliance on such statements. These forward-looking statements
should not be reprinted, reiterated nor considered an inducement for investment.
Neptune Society is a registered trademark of Neptune Society Inc.
###
For a complete copy of the research report Click
Here
or
Banyan Capital Markets (954) 571-7900
12403 Rockledge Circle, Boca Raton, FL 33428
or
Gary R. Loffredo (800) 535-7935
Corporate Investor Relations
Contact
The Neptune Society
Corporate Headquarters
3500 W. Olive
Suite # 1430
Burbank, CA 91505
Telephone: 888-637-8863
E-mail: info@neptunesociety.com
Visit The Neptune Society on the Web: Click
here
We invite you to investigate the
Neptune Society, trading symbol NTUN, by using the following links.
Links to more information:
Recent SEC Filings click here
Click here
for Financial Chart
For Trading Technicals click here
For current stock quote click here
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