Banyan Capital Initiates Coverage on NTUN
InvestorsEdge
bounce-investorsedge-1655339 at lyris.investorsedge.net
Tue Jul 10 13:42:44 PDT 2001
[BG Capital Group]
July 10, 2001 Volume 1 Issue 4
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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.
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* * * H I G H L I G H T S * * *
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.
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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, Neptunes 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
years 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 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 in excess of 60,000 active contracts and
approximately $37 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.
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 Companys 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
Companys ability to develop its brand name and effectively
market its services 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.
Neptune Society is a registered trademark of Neptune Society Inc.
###
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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
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Contact The Neptune Society
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.
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:
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company. Any information, opinions or analysis regarding the
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from time to time have either a long or short position in
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are not investment advisors and this report is not investment
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,
reiterated nor considered an inducement for investment.
Copyright © 2001 Investors Edge
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