NTUN Q1 Revenues up 68%
InvestorsEdge
bounce-investorsedge-1655339 at lyris.investorsedge.net
Wed Jun 27 16:40:42 PDT 2001
[BG Capital Group]
June 27, 2001 Volume 1 Issue 3
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Dear Investor
The Neptune Society Releases First Quarter Numbers
Wow! What A Great Quarter For NTUN!
There are great opportunities for investors in a lean and mean
market environment and The Neptune Society (OTC BB: NTUN) story
surpasses all standards.
The company is only now beginning to realize the strength of its
brand name and the positive results its management decisions have
brought about over the past two years. The eagerly awaited,
quarterly report that was just issued far exceeded our
expectations and we are truly excited and proud to bring this
stock to your attention.
Gaining market share, streamlining operations to peak capacity of
production, and a sales and marketing strategy that is paying off
with record response rates and contracts signed, has made the
Neptune Society the absolute leader in their niche -- the only
publicly traded company that deals solely in cremation.
Read On. Were Confident Youll Agree.
Recent Highlights
* For the last 5 days, made a new high in stock price 5 times
* From 6/8 at $2.15 a share, the stock made a 20-day run to
$6.20 on 6/26
* Relisted to the OTC BB from the Pink Sheets and will be
applying for a senior exchange listing
* Analyst coverage initiated by Banyan Capital Markets
* Multex Market Guide establishes ProVestor company report
6/23
Quarterly Highlights
1) Gross Profit Margin ratio 10% higher than industry average
2) Most recent quarter revenue growth up 67% over the same period
prior year
3) First quarter EBITDA increased 37% over same period prior year
4) Pre-Need contracts up 78%
Symbolic of management efficiency, all major categories of Neptunes
Operating
Statement improved as a percentage of revenue for the quarter ended
03/31/01.
Revenues Increased 68%
And As A Percentage Of Revenues...
Management and finance fees decreased
Direct cost and expenses decreased
Gross profit increased
General and administrative expenses decreased
Amortization and depreciation expense decreased
Professional fees decreased
Total general administrative expenses decreased
Interest expense decreased
We anticipate the Neptune Societys quarterly achievements in
financial ratios
and valuations will continue to improve in the next quarter and
the Company
will increase asset recognition, increase revenues, and reduce
costs.
HOT OFF THE PRESS !!!
FOR IMMEDIATE RELEASE
THE NEPTUNE SOCIETY ANNOUNCES FIRST QUARTER RESULTS
Burbank, CA., June 27, 2001 The Neptune Society, Inc., (OTC BB:
NTUN) one of the countrys largest publicly traded cremation
specialists, announced its significant strategic accomplishments
and financial results of operations during the three months ended
March 31, 2001.
On June 1, 2001, the staff of the Securities and Exchange
Commission (SEC) came to a position of no further comment with
respect to Neptune Societys Registration Statement Form 10 filed
with the SEC to register its common stock under the Securities
Exchange Act of 1934, as amended, completing an extensive and
expensive 18-month process. During the process, with guidance
from the staff of the SEC, Neptune Society developed its
accounting policies related to recognition of pre-need
merchandise revenue prior to the provision of cremation
services. Subsequently, Neptune Society implemented changes to
its pre need sales programs that will allow it to recognize
pre-need merchandise revenues at the point-of-sale in certain
states on a going forward basis.
Also with guidance from the staff of the SEC, Neptune Society
adopted new accounting policies, which resulted in the deferral
of pre-need merchandise revenues in the amounts of $1.6 million
and $4.3 million during the first quarter and the year ended
December 31, 2000, respectively. Under United States generally
accepted accounting principles, these deferrals are not
recognized in the revenues of Neptune Society. During the first
quarter ended March 31, 2001, Neptune Society recognized revenues
of $2.7 million.
Approximately two and one half years ago, Neptune Society
acquired a group of closely-held corporations and limited
partnerships loosely connected with virtually no standardized
policies and procedures for financial and managerial information
reporting. In 2000, Neptune Society invested heavily to
substantially retool these operations for the purposes of
realizing operating efficiencies. Neptune Society has attracted
talented management personnel, expanded its telemarketing
operations, updated and expanded its accounting and management
information systems (including networking office locations
together), made two strategic acquisitions, opened two new
offices and implemented the infrastructure and quality controls
necessary to support future growth and expansion.
In the first quarter of 2001, Neptune Society began to realize
positive results from the changes to its business infrastructure
and the addition of new offices. Neptune Societys first quarter
operations generated positive cash flows, after taking into
consideration certain prepaid expenses and certain payments
related to fiscal year 2000, which caused cash flows related to
operating activities to decrease. In addition, Neptune Society
incurred $176,000 in professional fees, primarily related to the
registration of its common stock under the Securities Exchange
Act to qualify its shares for listing on the NASD
over-the-counter bulletin board and, in the future, a listing on
a major exchange. The costs incurred for professional fees are
anticipated to begin to trend downward toward the end of the
second quarter.
Management believes that other indicators of growth and progress
of Neptune Societys performance include transaction volume and
non-refundable sales (sales for which the customer has no refund
or cancellation rights even though these sales may not be
recognizable as revenue under the new accounting policies and US
GAAP). Below are selected financial and operational results for
the quarter ended March 31, 2001 compared to the same period in
the prior year:
Pre-need contract sales volume up 76%
Total transaction volume up 58%
Revenues up
68%
Non-refundable sales (non-US GAAP) up 67%
Gross profit up
100%
Gross profit % up 17%
Earnings & deferred earnings before interest,
taxes, depreciation and amortization (non-US GAAP) up $796,099
While other major death-care industry companies reported
declining transaction volumes and top line revenues during the
first quarter compared to the same period in 2000 due in part to
declining mortality rates, Neptune Society experienced increased
transaction volume across all product lines. Pre-need contract
sales volume increased 76 percent overall, with existing offices
accounting for 41 percent of the overall increase. At-need case
volume increased 46 percent over the same period last year, with
existing offices accounting for 13 percent of the overall growth.
Revenues were $2.7 million for the for the three month period
ended March 31, 2001 compared to $1.6 million for the same period
in 2000. Non-refundable sales were $4.2 million for the three
month period ended March 31, 2001 compared to $2.5 million for
the same period in 2000. Non-refundable sales increased 67
percent due to increased at-need and pre-need activity, change in
product mix (from installment sales to paid-in-full sales) and
the introduction of a new travel assurance product offering. The
introduction of the Neptune Society Worldwide Travel Assurance
Plan, a new product offering, contributed $295,000 to the
increase in non-refundable sales and revenues during the first
quarter of 2001.
Gross profits doubled from $.65 million for the first quarter of
2000 to $1.3 million during for the same period in 2001. Gross
profit percentage increased 17 percent due to the increased
volume of activity and the resulting revenues, which covered
certain fixed costs related to cremation and telemarketing
operations.
Earnings and deferred earnings (deferred revenues and costs, net)
before interest, taxes, depreciation and amortization are
representative of the Companys operating performance if no
revenues or costs had been deferred. This non-US GAAP metric was
$387,000, up $796,099 in the first quarter of 2001 versus the
same period in 2000.
Management believes that the Neptune Society is well positioned
for growth in each of its core product lines: Pre-Need contract
sales and at-need case deposition. Neptune Society has
consolidated a group of companies into a strategically focused
public company serving the cremation segment of the death care
industry. Neptune Societys goal in 2001 is to continue to
integrate its product offerings, achieve higher organic and
expansion growth, maintain positive cash flows and maximize the
value that management believes to be inherent in Neptune Society
for the benefit of its shareholders.
The Neptune Societys complete Form 10 and Form 10Q for the
quarter ending March 31, 2001 is available for viewing at
www.neptunesociety.com or the Securities Exchange Commission
website at www.sec.gov.
RODNEY M. BAGLEY
CHIEF FINANCIAL OFFICER
NEPTUNE SOCIETY INC.
About The Neptune Society
Headquartered in Burbank, CA., The Neptune Society Inc. is one of
North Americas 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 close to 60,000 active contracts and nearly $40
million in trust in its unique Pre-Need program. The Neptune
Societys goal is to provide a simple, dignified and economic
alternative to the traditional funeral burial service system.
Disclaimer: 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 and future plans, continuing trends related to results
of operations, success of acquisitions and expansion efforts, its
ability to integrate its current business strategies into its
existing operations, its ability to successfully financing to
satisfy its obligations under promissory notes due during 2001,
regulatory or economic changes affecting the death care industry,
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, reiterated nor considered an
inducement for investment.
-xxx-
Click here for a PDF version of Neptune's First Quarter 10Q
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Contact The Neptune Society
Investor Relations
Gary R. Loffredo
(800) 535-7935
www.neptunesociety.com
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 invite you to investigate the Neptune Society, trading symbol
NTUN, by using the following links.
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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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,
reiterated nor considered an inducement for investment.
Copyright © 2001 BG Capital Group
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