Investors Edge Newsletter
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bounce-investorsedge-1655339 at lyris.investorsedge
Wed Jun 20 15:12:16 PDT 2001
[BG Capital Group]
June 20, 2001 Volume 1 Issue 2
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Dear Investor
Over the last year, investors have often suffered through the
daily roller coaster of the stock market, a roller coaster whose
wheels rest soundly in the tech sector. Investors have been
watching their positions dwindle as common sense returned to the
market and words like revenues and earnings once again had
meaning.
Today, the market seems abuzz with the pursuit of a catchy
phrase, upside potential. We assume that means future
profitability and growth. In contrast to the carefree tech run of
the recent past, upside potential must now be combined with a
sturdy business plan tested over more than a quarter. You just
cant add dot com to a word and hand it to the public.
So, while investors still welcome the sex appeal of a story that
could be the next eBay, logical investors are also finding
enthusiasm for companies with balance sheets that confirm their
business plans. We believe weve found a company with just that
sort of promise.
The Neptune Society (OTC: BB: NTUN) is a company entrenched in an
industry that many of us never realized was quite so profitable,
though ultimately, all of us will eventually need.
What does this company do? Well, more than likely youve seen the
ads on television. The Neptune Society provides cremation
services in the death care industry; an industry that locks in
profits on Pre-Need revenues, an industry on the cusp of the
aging Baby Boomer generation.
The Neptune Society is a company with a record of predictable,
positive income results based on a $40 million trust, 55,000
active contracts, and nearly 1,500 appointments scheduled for
goods and services every month.
According to Neptune chief operating officer (COO) David
Schroeder, The Neptune Society has come a very long way. As a
whole, we are very encouraged by our sales. Our revenues are up,
our operating efficiency has improved, and we set a record in May
for Pre-Need sales and cash collected. Another important factor
in our success is in our market share. Across the industry, some
companies have experienced up to a 12 percent drop in market
share while our market share has increased two to five percent.
Our unique management and marketing structure has been extremely
effective in delivering results.
Lou Fischler, a top analyst at Banyan Capital Markets, has
written an in-depth research report his firm has issued to
initiate coverage on The Neptune Society. He took time to talk to
us this week. The company has a good story to tell. Management
took a fragmented group of partnerships and unified them into one
efficient, consolidated, public company. Taking over the
operations and financially engineering them into one operating
company is impressive. They can now start to focus on
accelerating their marketing, producing growth, and implementing
their business model.
The companys true operating adjusted cash-flow for the first
quarter was approximately $500,000. Now with its operating
structure firmly in place, it is positioned to concentrate more
of its resources to drive Pre-Need sales and generate more and
more cash flow. Because of Neptunes revenue recognition policy
and significant non-cash expenses, its reported financial results
tend to understate its real operating performance. As a result,
cash flow is more relevant in determining value than net earnings
for this company. The management at the Neptune Society has
jumped some very high hurdles and landed on its feet. The company
is a major player in its industry and its year-over-year numbers
are outstanding.
Sound Interesting? Take a look at these bullet points:
The Neptune Society offers new investors and current shareholders
a fundamentally sound business model and four unique elements
that are significant to growth.
EXISTING ASSETS
When the trust was established in 1988 its beginning marker was
$0. In 1994 it had risen to $16 million and now, in 2001, the
total pre-funded cremation arrangements exceed $40 million. With
Neptune's continued expansion, estimates for the fund are $74
million by 2004.
SALES
The trust supports a growing bottom line. Cremation costs 50-80%
less than traditional burials and Pre-Need contracts at the
Neptune Society have grown at an annual compound rate of 32.7%
from 1998 to 2000 with a historical cancellation rate for
Pre-Need services at less than one percent.
REVENUES
In addition to the companys main channels of revenues, the
Neptune Society also benefits from sales that include
registration services like a travel rider that ranges from
$50-300, and is immediately recognized as revenue and an 8%
interest charge in California and Oregon on Pre-Need installment
programs
SOLID MANAGEMENT
During the past two years, a talented group of four senior
executives has been recruited to operate Neptune. Collectively,
these executives possess substantial functional expertise and
over 100 years of combined experience in the cremation industry.
Marco Markin became the first member of Neptune current
management team when he became a member of Neptunes Board of
Directors in June 1999 and its President and Chief Executive
Officer (CEO) in September 1999.
David L. Schroeder was recruited to be Neptunes Chief Operating
Officer (COO) on June 1, 2000, and became a Director and its
Secretary in November 2000.
Rodney M. Bagley became a Director, the Chief Financial Officer
and the Treasurer of Neptune in November 2000.
Gary I. Harris became Neptunes National Sales Manager and a
Director in March 2000.
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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 at neptunesociety.com
Visit The Neptune Society on the Web:Click here
We welcome investors to keep an eye on the Neptune Society. Watch
for a research report to be issued by Banyan Capital Markets. 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
Disclaimer:
The information contained herein is based on news releases or
other reports written and disseminated entirely by the subject
company. Any information, opinions or analysis regarding the
subject company to which Investors Edge has provided a link or
other detail are provided by sources believed to be reliable but
no representation, expressed or implied, is made as to its
accuracy, completeness or correctness. This report is for
information purposes only and should not be used as the basis for
any investment decision. Although Investors Edge has not been
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Investors Edge, its owners, agents affiliates and employees may
from time to time have either a long or short position in
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to our ability to remain objective in our communication regarding
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advice. This information is neither a solicitation to buy nor an
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forward-looking statements and is subject to significant risks
and uncertainties, which will affect the results. The opinions
contained herein reflect our current judgment and are subject to
change without notice. Information contained herein may not be
reproduced in whole or in part without the express written
consent of Investors Edge (Copyright 2001.)
Safe Harbor Statement: 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 Companys business strategy, success of its acquisitions,
its ability to integrate its current business strategies into its
existing operations and the Companys 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 Companys 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,
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Copyright © 2001 Investors Edge
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