some info on RDNK:
Redneck Foods, Inc.
("RDNK" on Pink Sheets)
Redneck Foods, Inc. ("RDNK" on Pink Sheets) is a profitable and rapidly growing company which is in the business of acquiring, franchising and managing existing BBQ restaurants, many of which will ultimately be renovated and reopened as upscale "Foxworthy's Smoke House Grills" or "Foxworthy's Backyard Bar-B-Q's". The Company is also preparing to market and distribute nationwide a line of BBQ sauces to consumers through traditional retail outlets (Wal-Mart, etc.) under the "Jeff Foxworthy" brand name based on licensing agreements with Mr. Foxworthy.
In April 2001, RDNK acquired a controlling interest in Love's BBQ, a popular chain of barbecue restaurants based on Southern California that has been in business since 1948. The average Love's BBQ store does $1.2 million in annual sales with EBITDA of about $350,000, and RDNK intends to aggressively expand the Love's BBQ chain in the coming years.
William E. Eskew, President & CEO of Redneck Foods, has an incredible record in building large and profitable nationwide BBQ-themed restaurants.
As President & CEO of Damon's, Inc., the second-largest BBQ restaurant chain in the United States, Mr. Eskew turned around a chain that had been losing money for four straight years, restoring Damon's to profitability within three months and increase sales by almost 300% within three years. Today, Damon's has over 50 locations and system-wide sales of $120 million. Mr. Eskew also served as the Senior VP & COO of Roma Corp., the owner and franchiser of the Tony Roma's - A Place for Ribs chain of restaurants, where he turned around a company that had lost money for five straight years. Today, Tony Roma's is the leading BBQ theme restaurant chain in the nation with over 100 restaurants and $300 million in annual sales, generating about $15 million in EBITDA. Three years ago, Tony Roma's was acquired by an LBO fund in a transaction valued at over $100 million.
Redneck Foods has entered into promotional and licensing agreements with Jeff Foxworthy, a successful and well-known comedian, recording artist and TV star. Mr. Foxworthy is a well-known barbecue fanatic who, in addition to being a major shareholder, has licensed his BBQ sauce recipes to RDNK. Mr. Foxworthy has also agreed to record TV and radio advertisements on behalf of Redneck Foods.
Looking down the road a year or two, RDNK intends to follow up on its recent Reno (NV) Love's BBQ acquisition and buy up several more Love's BBQ franchised restaurants. Several of the older Love's BBQ locations will probably be converted to more upscale "Jeff Foxworthy" venues, which are projected to do much higher sales volumes ($2 to $3 million per year with EBITDA of $300,000 to $500,000). A number of new, stand-alone Jeff Foxworthy restaurants are also planned.
We understand that the Company is also looking to introduce a new Love's BBQ prototype restaurant in the near future. Lastly, the Company is looking at quickly expanding coast-to-coast by placing franchised BBQ restaurants in high-volume travel locations.
The Company is aggressively moving forward with the necessary SEC filings for an re-listing on the OTC-BB, and expects to achieve this objective within the next 30 days.
Further details on the Company business plans and objectives can be found in RDNK's recent SEC filings (see: www.PinhkSheets.com/quote/filings.jsp?symbol=rdnk). A brief business profiles of Redneck Foods can be found at: biz.yahoo.com.
WILLIAM E. ESKEW, REDNECK FOODS' PRESIDENT, HAS A DISTINGUISHED CAREER
RECORD IN BUILDING LARGE, PROFITABLE, NATIONAL BBQ-THEME RESTAURANT CHAINS
No matter how good the product or concept, a business cannot grow without top-quality management.
Redneck Foods' President & CEO brings an incredible record of success with RDNK's major competitors to a new company that is poised to become a national chain.
Prior to joining RDNK, William E. Eskew was President, CEO & Franchisee of Damon's, Inc., the second-largest BBQ restaurant chain in the United States. Mr. Eskew turned around a chain that had been losing money for four straight years, restoring Damon's to profitability within three months. Between 1991 and 1994, chain-wide sales increased from $37 million in 1991 to $108 million in 1994. Today, Damon's is the second-largest BBQ theme restaurant chain in the United States with over 50 locations and system-wide sales of $120 million.
Mr. Eskew also served as the Senior VP & COO of Roma Corp., the owner and franchiser of the Tony Roma's - A Place for Ribs chain of restaurants. At Roma Corp, Eskew directed the turnaround of a company that had lost money for five straight years. Within six months, the company became and remained profitable. Sales increased from $60 to $270 million while the number of restaurants in the Tony Roma's chain grew from 48 to 160. Today, Tony Roma's is the leading BBQ theme restaurant chain in the nation with over 100 restaurants and $300 million in annual sales, generating about $15 million in EBITDA. Three years ago, Tony Roma's was acquired by an LBO fund in a transaction valued at over $100 million.
LOVE's BBQ IS A KEY PART OF THE FUTURE GROWTH OF REDNECK FOODS
Love's BBQ (www.LovesBBQ.com/home.html) is popular, profitable and respected regional restaurant chain that has been in business since 1948. Love's currently operates one company-operated and eleven franchised restaurants; most of these restaurants are located in Southern California, with one unit in Reno, Nevada and another in Jakarta, Indonesia.
BBQ SAUCES ARE ALSO EXPECTED TO PROVIDE SIGNIFICANT FUTURE REVENUES FOR RDNK
Redneck Foods expects to shortly resume production and national retail distribution of the full line of Jeff Foxworthy's Bar-B-Que Sauces, including the National BBQ Association award-winning "Jeff Foxworthy Original BBQ Sauce".
RDNK has arranged for Krogers to manufacture the BBQ sauces, using recipes developed personally by Jeff Foxworthy. Within the next three months, RDNK expects to begin distributing the products nation-wide through Wal-Mart / Sam's Club (who are rapidly becoming the largest grocery retailer in the United States). We understand that the Company also has shelf space commitments at other major retailers such as Sam's Club, K-Mart, Target, etc.
The company has not released estimated sales figures for the retail BBQ sauce side of the business, but we believe that sales on the order of $5 million are very doable in 2002, increasing to $10 to $15 million within a few years as the products gain increased retail shelf space.
RDNK OFFERS INVESTORS STRONG EARNINGS & EXCELLENT FUTURE POTENTIAL
RDNK is no longer a development stage company – rather, it's a profitable, revenue-generating business with solid earnings.
With the acquisition of Love's BBQ, RDNK gained $1.8 million in revenues and about $350,000 in EBITDA. These are FY 2000 numbers that are currently being audited in preparation for filing a Form 10-SB as part of the OTC-BB re-listing process.
RDNK has also just acquired the Reno, Nevada Love's BBQ restaurant – this location has only been open since December 2000, but is on track to do about $1.3 million in revenues and $150,000 in EBITDA for 2001. We understand that RDNK is currently working on the acquisition of a third Love's BBQ franchisee restaurant that will reportedly add another $1.2 to $1.4 million in revenues and $150,000 in EBITDA; this deal could close in October.
Combined, these acquisitions will give RDNK approximately $4.5 million in revenues and $650,000 in EBITDA for 2001 - a fantastic turnaround for a company with $0 revenues and $0 earnings just a few weeks ago.
RDNK HAS LONG-TERM PROMOTIONAL & LICENSE AGREEMENTS WITH JEFF FOXWORTHY
In February 1997, Redneck Foods entered into long-term promotional and licensing agreements with Jeff Foxworthy. The license agreement allows RDNK to use Jeff Foxworthy's name and likeness for a 50-year period. Through at least 2002, Mr. Foxworthy has agreed to serve, without charge, as the feature actor in four commercials per year promoting the Company's restaurant business (the commercials may be aired on local or national television or radio or both).
RDNK'S LATEST BBQ RESTAURANT ACQUISITION
On September 7, 2001, Redneck Foods announced that it had acquired an additional Love's BBQ restaurant in Reno, Nevada along with the Love's BBQ franchise territory rights to the states of Arizona, Colorado, Florida, Nevada and New Mexico. The Reno restaurant has been open since December 2000 and is on track to do about $1.3 million in revenues and $150,000 in EBITDA this year
This acquisition gives Redneck Foods and the Love's BBQ brand the ability to expand into new areas and open new restaurants in some of the most desirable restaurant markets in the U.S.
A RECENT FINANCING PROVIDES RDNK WITH CAPITAL FOR MORE ACQUISITIONS
On September 6, 2001 RDNK announced that it had secured a $3,000,000 Equity Credit Line financing commitment from Ora Enterprises Ltd. RDNK intends to register the shares underlying the Equity Credit Line in an SB-2 Registration. Proceeds will be used to expand RDNK's core business.
SO, HOW DID JEFF FOXWORTHY GET INVOLVED IN THE BBQ RESTAURANT BUSINESS ??
Celebrity products are nothing new. High profile celebrity names are on everything, and it was only a matter of time before they'd discover BBQ…
About five years ago, David Womick, the previous CEO of Redneck Foods, was approached by Jeff Foxworthy's agent about starting a BBQ restaurant with Jeff Foxworthy's name on it. The concept was well-received, and thus Jeff Foxworthy's Backyard Bar-B-Q was born, along with a line of award-winning barbecue sauces including "Redneck Hot" and "Extreme Hot" developed from Jeff Foxworthy's own recipes. Mr. Foxworthy has also been on the promotional trail, helping market the Company's products.
Jeff Foxworthy is a nationally-known comedian, author and entertainer who is perhaps best-known for his trademark "you know you're a Redneck if…." line (www.JeffFoxworthy.com/homepage.shtml). Currently, he hosts the syndicated "Foxworthy Countdown" show, which is broadcast in over 120 markets, and features Top 20 country hits and interviews with country music stars.
RDNK SHARE STRUCTURE & RECENT TRADING RANGE
Shares Outstanding: 35,098,634 common
Public Float: Est'd @ 10.9 million
52-Week Range: $0.01 by $0.16
Last Trade (Sept 10, 2001): $0.039
Officers, directors and other key employees / insiders own approximately 70% of RDNK.
Redneck Foods is a fully-reporting company with the SEC. All public filings (including current 10-K & 10-Q reports) can be accessed through www.PinhkSheets.com/quote/filings.jsp?symbol=rdnk
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
Gene Eskew, President & CEO - Redneck Foods, Inc.
Phone: (310) 207-9881 |
