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Wednesday September 29, 3:20 pm Eastern Time
Company Press Release
SOURCE: Toups Technology Licensing, Inc.
Toups Technology Presents A Company Report And Outlook For The New Millennium
LARGO, Fla., Sept. 29 /PRNewswire/ -- Toups Technology Licensing, Inc. (OTC Bulletin Board: TOUP - news; ``TTL;') released a Company status report including an outlook for operations in the year 2000 today:
On November 1, 1997, TTL began operations with three employees, $100,000, 350 square feet of office space and one Letter of Intent to enter a technology licensing agreement. In less than two years, the Company has built a fundamentally sound, relatively debt-free balance sheet, operates from a 50,000 square-foot manufacturing facility with 90 employees, and has developed three revenue-generating operating divisions.
The following Company report reflects on its fundamentals as well as a brief outlook for the three revenue-generating divisions. After just 23 months of operations, we can now report:
Our fundamentals are sound:
Our balance sheet reflects relatively debt-free assets of $9,221,639 and stockholders' equity of $6,432,928. With approximately 24,908,974 common shares outstanding, our market capitalization is approximately $9.216,320.
For the second quarter of this year, we reported net income of $1,107,021 resulting in a $.04 per share in positive earnings and at the six- month period, we posted a loss of only $0.02 per share. This compares to a year ago when our second quarter results were a loss of $0.04 per share and a loss of $0.05 per share at the six-month period ending June 1998.
TTL turned the cash-flow corner this year and we are now cash-flowing positive with a strong outlook for the year 2000.
TTL has remained responsive to its shareholder base and has been rewarded with strong support:
The Company has in excess of 1,400 shareholders of record and during our annual meeting this year, approximately 80% of our shareholders voted for the Board of Directors with 98% voting unanimously for all current directors.
TTL became a public company in June, 1998 and in less than 15 months, we can report our stock is sponsored by 19 market makers and enjoys an average trading volume in excess of 100,000 shares daily.
TTL now conducts an open shareholder conference call on the last Thursday of each month and we have published a series of President's Letters to informally keep our shareholders up to date on our progress.
Our operational posture is focused in that:
During the second quarter of this year, the Company focused its operations into three primary groupings, Environmental Solutions, Manufactured Products and E-Commerce.
Our successes with MagneGas(TM) and the BORS Lift demonstrated our ability to take development-stage technologies from conception through commercialization.
As we now turn our sights to the start of our third year and consider our outlook for on-going, profitable operations, we can report:
Our Environmental Solutions division is at the early stages of commercialization through the company's MagneGas(TM) and PCE(TM) technologies:
TTL has matured our alternative fuels by achieving an over-unity rate of production with MagneGas(TM). By ``over-unity' we are referring to the scientific breakthrough of our technique to manufacture MagneGas(TM), a process that is now verified to produce more energy than it consumes. We have demonstrated an ability to produce a clean burning combustible gas using an electric arc, a highly intense magnetic field and a magnetically treated liquid combined with virtually any carbon source such as sewage, industrial solvents, waste oils or antifreeze.
After 23 months of development, our methods to manufacture a clean- burning, alternative fuel are poised to enter the market place starting in four primary areas: (1) as a cutting gas to replace acetylene (we note here that of three acetylene plants in the State of Florida, only one remains open); (2) recycling of liquid sewage, particularly handling the international problems of animal waste (we note here that a common means of disposing of animal waste is creating ``ponds' of waste with its inherent environmental problems); (3) recycling of automotive liquid waste such as waste oils and antifreeze, and; (4) automotive uses.
During July, we unveiled our Pyrolytic Carbon Extraction or PCE technology that became the primary subject of an exclusive licensing agreement we now have with parties in Australia. To date, our Australian Licensee has submitted a number of requests for quotes for PCE units ranging from our 5-ton per day unit similar to the prototype operating at our headquarters up through a 40-ton per day unit. As these quotes are delivered and accepted, the Licensee is required to post a Letter of Credit from which we can draw to cover manufacturing costs.
During the second quarter we also announced the sale of a license to a consortium in the Dominican Republic for $5.5 million as a part of our involvement with a 2,500 Public Urban Development (PUD) project. Payment for our license fees is scheduled to come over a 24-month period as the 2,500 home-lots are sold. Our involvement with the PUD foresees the sale of our PCE unit to recycle their municipal solid waste. TTL is scheduled to earn revenues in this project from the initial sale of hardware and then to share in revenues generated from the recycling of waste and sale of the gas primarily to generate electricity.
The Dominican Republic government recently announced a substantial shortage in housing units throughout the country and their backing of projects such as the Public Urban Development puts them on the forefront of addressing this critical issue. Based on this need and the affordability of the Public Urban Housing home-lots, our Dominican Republic Licensee reports they estimate the 2,500-home site will be sold in a period significantly less than the original estimation of 24 months.
As we turn to our Manufactured Products Division, we look forward to more immediate sources of revenues and profits in that:
Our lead product is our Balanced Oil Recovery System Lift or BORS Lift. After 21 months of development, our most ardent critics now agree the BORS Lift is state-of-the-art and we have spent the past sixty days working to improve our methods and policies relating to the BORS Lift selling program. In fact, perhaps our most significant change to our BORS program was from a sales perspective in the restructuring of the distributorship network.
Under the terms of our previous agreements, a distributor would receive the BORS lift literally on a consignment basis. We found this technique left us unable to predict with any certainty meaningful levels of sales on the part of our distributors. While there were agreements for the sale of BORS Lifts, there really wasn't any incentive to either make the purchase or, if a BORS lift was shipped, to complete a sale. Since our previous agreements didn't obligate the distributor to pay until the unit was sold, there was no sense of urgency and no real effort to overcome sales objections typical for a new product.
Under our new structure, each distributor agrees to purchase a certain number of lifts and pays TTL within thirty days following delivery. The distributor can then take one week or several months to sell their inventory and the company is no longer acting as a bank. Under our new format, we have contracted for the sale of the BORS Lift at a price of $13,000 each with 200 more units scheduled for delivery during the fourth quarter of this year and, at last count, 1,200 scheduled for delivery and payment during 2000. We have executed agreements with five distributors covering territories in Oklahoma, Kansas, Colorado, South Dakota, Wyoming, Nebraska, Missouri, all of continental South and Central America, Aruba and Trinidad, Canada, Indonesia, Singapore, N. Sumatra, Brunei, S. Sumatra, Philippines, China, Thailand, Korea and Vietnam.
As we have previously discussed, we have focused TTL Manufacturing as the outsource vendor for Fortune 1000 companies and this technique is proving very effective. Our manufacturing division now holds a backlog in excess of $1,300,000. We can boast satisfied clients such as Raytheon, Johnson and Johnson, Unipress and other similar-size companies. More encouraging, we have seen TTL Manufacturing grow from contributing approximately $10,000 per week during the summer of this year to now averaging in excess of $60,000 per week and growing. As we focus intently on follow-through and quality combined with our targeting Fortune 1000 companies, we are confident our manufacturing efforts will continue to grow making an ever-increasing impact to our bottom line.
Rounding out our mix of balanced, profitable on-going operations is our E- Commerce division featuring InterSource and our own TTLOnline.com.
For those new to TTL, InterSource is an on-line provider of used and new medical equipment, pharmaceuticals and related products. During the third quarter of this year, InterSource became the exclusive distributor for the AmeriGel product line. The AmeriGel product line has been picked up by American Stores (recently acquired by Albertson's) and starting November of this year, the AmeriGel line will launch a national roll-out in 1,100 stores and is envisioned to eventually be carried by all 4,000 Albertson's locations. This national rollout will allow InterSource to earn revenues for each initial store set-up and we are estimating an annual turnover rate of approximately six times.
TTLOnline.com is undergoing the final stages of formatting and will carry all of our current technologies as well as serve as a sales conduit for third-party products. In the early stages, you'll see an emphasis on our medical-related items available through InterSource including the entire AmeriGel line. We will add other products as opportunities and resources permit.
In recapping our first two years in business as a technology developing Company, we believe our fundamentals and operations have positioned the Company for consistently profitable operations as we enter the new millennium. As our operations are now maturing, we expect to post a well-rounded mix of revenues with positive contributions from each division.
In comments made in light of the Company Report, TTL Chairman and CEO Leon Toups said, ``We have weathered the development or start-up cycle of our business and demonstrated the discipline necessary to achieve our mission of evolving new technologies from conception through commercialization. Our challenges now center on consistent follow-through, dedication to quality and timeliness and expanding our market share for each of our three divisions. Our Corporate Charter charges us 'To better our environment and extend the life of the world's natural resources through profitably facilitating innovative technologies'...we believe our performance is turning that challenge into a profitable reality.'
More information on TTL and its products is available through its website at www.toupstech.com or by contacting the Company.
Company Contacts
Mark Clancy, Executive V.P, (mclancy@toupstech.com) or James Doulgeris, V.P., Marketing, (jdoulgeris@toupstech.com), tel 727-548-0918, fax 727-549-8138
This 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. Many factors may cause actual results to differ from forward-looking statements. These factors include orders which are received and can be shipped in a quarter; whether and when order options are exercised; customer order patterns and seasonal variables; contract mix and shifting production and delivery schedules; manufacturing capacity and yield; cost of labor, raw materials, supplies and equipment; technological changes; competition and competitive pressures on pricing; economic conditions in the United States and worldwide, and other risks that are detailed from time to time in the Company's filings with the Securities and Exchange Commission.
SOURCE: Toups Technology Licensing, Inc.
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