HouseHold Direct.com Concludes Acquisition of Personal Consumer Services
NEW YORK, Dec. 2 /PRNewswire/ -- HouseHold Direct.com, Inc. (OTC Bulletin Board: BYIT) is pleased to announce that it has successfully concluded the final payment requirements for the acquisition of Personal Consumer Services, Inc. (PCS). Under the terms of the agreement, the Company paid $100,000 in cash, and will contribute an additional $500,000 over time to retire certain PCS obligations. This all-cash deal involves no dilution to the Company stock owned by shareholders of HouseHold Direct.com. Furthermore, the acquisition is expected to bring annual revenues of approximately $3.3 million and a net income of about $440,000 to the bottom line in fiscal year 2000.
PCS currently has membership clubs in Atlanta, Georgia and Birmingham, Alabama with a membership base of just under 10,000 and total accounts receivable of $1.6 million. The Company believes the accounts receivable may have considerably lower value, after allowance for doubtful accounts, but this has been taken into account in the final purchase price. The value of the PCS acquisition lies not only in the significant cash flow from the physical locations but also from its valuable membership base. The Company believes it will convert 25% (or 2,500 members) to the $9.95 E-commerce monthly payment plan during its new membership telemarketing test program.
HouseHold Direct.com will continue this aggressive new marketing campaign to expand the existing PCS customer base leading into the first quarter of 2000. PCS's two service centers are located in the growing communities of Atlanta and Birmingham, with their 2.2 million and 805,000 households, respectively, which the Company believes gives them reasonable assurance of meeting or exceeding their growth targets. The retention of experienced PCS vendor and customer service management by HouseHold Direct.com will aid in this effort and assure a smooth transition and continued quality customer service.
John Folger, CEO and President states, "We are pleased to announce the completion of the PCS acquisition. It compliments perfectly the recent acquisition of Megappliance.com and the agreement with America's Home Town Brand Centers, Inc. (AHBC). PCS has relationships with hundreds of manufacturers and distributors, most notably in furniture and soft goods. AHBC has spent 25 years developing expertise in the distribution of appliances, hardware, tools, and lawn and garden products. Megappliance.com offers software that will allow for sophisticated shopping comparison features on HouseHold Direct.com's upcoming enhanced E-commerce site. Together these three entities will enable us to offer an extremely broad product range to members, while enabling them to search out the best values more easily and effectively. We expect this trio of affiliations will significantly help fuel membership growth and sales."
HouseHold Direct.com's key to success is the ability to rapidly grow its membership base. To this membership base HouseHold Direct.com will give the ability to purchase thousands of products direct from manufacturers at substantial savings. The Company plans on making announcements of other key acquisitions that meet appropriate cash flow and demographic criteria over the upcoming months.
Safe Harbor for Forward-Looking Statements: Except for historical information contained herein, the statements in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the company's actual results in the future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product price volatility, product demand, market competition, risk inherent in the company's domestic and international operations, imprecision in estimating product reserves and the company's ability to replace and expand its holdings.
SOURCE: HouseHold Direct.com, Inc.
CONTACT: Investor Relations - SmartStockAdvisor.com, toll free, 877-643-8821, smartstockadvisor@yahoo.com, or 1stnettech.com
Disclaimer: SmartStockAdvisor. com is a compensated agent of HouseHold Direct.com, Inc. SSA has been hired to perform investor relations for the company and is being compensated as follows monthly: $9,000 cash, 20,000 stock warrants with an exercise price of $0.10, 15,000 stock warrants with an excise price of $0.25, and 15,000 stock warrants with an exercise price of $0.50 for a three month period ending February 22, 2000. These warrants expire November 22, 2001. Some individuals comprising SmartStockAdvisor.com hold individually owned unrestricted shares of HouseHoldDirect.com, which collectively amounts to less than one half of one percent of outstanding shares. We are not a registered investment advisor and suggest that you consult with an independent registered advisor as well as do your own research before investing in any stock. The opinions and analysis included herein are based on sources believed to be reliable but no warranty, expressed or implied, is made as to their accuracy, completeness or correctness. Readers are advised that this communication is issued solely for information purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy any securities. The reader should verify all claims and do their own due diligence before investing in any securities mentioned. Investing in securities is speculative and carries a high degree of risk, of which may or may not be suitable for everyone. |
