Company
History
THE NEPTUNE SOCIETY SERVES ALL FAITHS, TRADITIONS,
AND CULTURES
The Neptune Society® (Pink Sheets: NTUN) is
a high visibility brand name that has become the logical option to the
traditional funeral and burial. The company has become synonymous with
the simplicity, dignity, and economic feasibility of cremation and the
scattering of ashes at sea. The company has been in operation since 1972
and has sold more than 80,000 Pre-Need contracts to date. All personnel
& facilities of the Neptune Society are licensed and inspected by the
governing state.
On October 14, 1999, the board of directors elected
Marco Markin to the positions of President and CEO. Mr. Markin
has an extensive background in the areas of operational management, business
development and mergers and acquisitions. Under Mr. Markins direction
the Neptune Society has posted a 100% increase in revenues. The company
currently operates 18 offices in seven states with gross sales approaching
$20 million. The Neptune Society has had extensive, positive press coverage
recently with archived stories in The Wall Street Journal, USA Today -
Money section, The New York Times On The Web, and the Los Angeles Business
Journal.
Neptune
Revenues
INCOME
RESULTS THAT ARE VERY POSITIVE, VERY PROFITABLE, AND VERY PREDICTABLE
The Society has four income streams: Recurring
trust fund fees and yields, Pre-Need contracts, At-Need contracts, and
Non-member contracts. Approximately 50% of the revenues of the Pre-Need
plans are placed in a state approved and regulated trust fund. Neptune
currently has close to $40 million held in trust from Pre-Need sales. That
trust will grow to nearly $50 million by the end of the year 2002. The
trust fund maintains its capital base and growth by serving At-Need fulfillment
withdrawals having been compensated by the interest generated. Neptune
also receives a 4.0% trust management fee. The company has guaranteed book
business for 13 years and interest income on Pre-Need sales accrue to Neptune
and is realized at the time of fulfillment. Neptune has sold 80,000 pre-need
contracts since its inception and its year-over-year sales rate has never
been in the red. The company currently has nearly 60,000 active contracts.
Currently, new members are being added at a rate of over 1,000 per month,
up from only 400 per month in 1998, and Neptune handles nearly 7,000 At-Need
cases annually, which makes them the largest cremation company in the U.S.
The Industry
THE NEPTUNE SOCIETY IS THE COUNTRY'S LARGEST
PUBLICLY TRADED COMPANY DEALING SOLELY IN CREMATION
The death-care industry generates approximately
$15 billion a year. It is however tremendously fragmented with 75% of the
market being privately owned and the 6 largest providers comprising less
than 25% of the industry. 24% of all Americans have pre-arranged some details
of their own funeral and 80% believe pre-arranging is a good idea. Cremation
accounted for 26.3% of all funeral services in 1999 with expectations of
two out of every five, or 42% by 2010 (according to the Cremation Society
of America). The average cost of a typical casket and burial funeral now
exceeds $7,000 and the cost of a direct cremation runs from $799 to $1,299.
The Market
"THERE ARE ONLY TWO CERTAINTIES; DEATH AND
TAXES"
-- Benjamin Franklin
The growth driver of the post-life market is the
U.S. death rate and 72 million aging baby boomers who are now in their
50’s. For the upscale market, some funerals can cost $30,000. The Neptune
Society can provide upscale goods and services as well including: memorial
services at a Neptune Society chapel and private service sea scattering
with clergy and family and friends present.
Cremation is the most common form of disposition
in England (70%), Japan (98%), and Hawaii (58%) and cremation rates will
steadily climb from 15% in 1987 to an estimated 50% by the year 2020. Cremation
is taking away market share from traditional burials, increasing from 6%
in 1975, to 24% in 1998 and projected to 38% by 2010. The Neptune Society
serves customers in 35 metro areas and currently has seven locations in
California (including its corporate offices), three in Florida, two in
New York, two in Iowa, two in Washington State, one in Arizona, and two
in Oregon. The company will be expanding its presence to Colorado, Idaho,
Texas, New Mexico, Illinois, Nebraska, and Kansas in the next three years.
Neptune
Marketing
NEPTUNE CONVERTS 25% OF ITS LEADS INTO CONTRACTS
With the cost of a cremation being up to one-seventh
less expensive than a traditional funeral, baby boomers tend to pre-pay
for services. The Neptune society sends out over 3.6 million mailers a
year and will send out 6 million in 2001. They receive a approximately
1% response of which 25-28% have been converted into a Pre-Need contract.
The company targets adults 54+ that have an income of $30k or more with
a mailer and follow up calls are made from a dedicated call center based
in Phoenix, AZ that has 20 representatives. Remarkably, statistics prove
a closure rate of 70-85% for in-home visits. They set up approximately
1,500 appointments a month through Neptune offices. There is no up selling
to traditional casket and burial arrangements.
| State of Incorporation |
Florida |
| Fiscal-year-end |
12/31/00 |
| Recent Price |
$3.93 |
| Market Cap |
$30,127,533 |
| Shares Out |
7,666,039 |
| Float |
6,056,170 |
| Auditors |
KPMG, LLP |
| Transfer Agent |
Interwest Transfer Co |
| Institutional Holdings |
15.2% |
| Officers/Directors |
5.5% |
Contact
The Neptune Society
Management:
Marco Markin,
President & CEO
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
Links to more information:
Recent SEC Filings click here
Click here
for Financial Chart
For Trading Technicals click here
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