PLNI - Basic DD Post:
CEO Interview: See moneytv.net
PLNI has been in the recycled plastics business for 10 years. The company's line of patented, plastic concrete accessories has been approved or accepted in all 50 states and several foreign countries including Poland, Israel, Canada, Mexico, and Egypt. In addition, its transportation signage has received DOT approval in all 50 states. Specifically, the company offers for resale:
Current O/S and A/S info:
There are around 1.4 billion shares outstanding with a authorized amount of 2 billion shares. Mgmt owns most of the shares and there are only around 400 million in the float.
Products:
Rebar supports
Plastic lumber
Plastic signage (i.e.; highway and state signs)
Office products including file folders and binders
Impermeable concrete-like products made from recycled glass.
A unique feature of all WHC products is that they are of the highest quality, yet do not require virgin raw material. Using recycled materials significantly reduces the cost of manufacturing thus; WHC is considered a "green company." WHC's use of environmental waste as raw material in the production of new and innovative products will continue to reduce waste since the new products are themselves, recyclable.
The company's primary products (80% of revenue) are concrete accessories and until now the company has focused on the development of necessary molds and patents and obtaining approval in each of the fifty states for the use of these concrete products, WHC's patented products are recognized as the "Cadillac" in the industry and are without serious competition.
Examples where these products are in place include:
Toronto SkyDome
Chattanooga Aquarium
Tampa Convention Center
Nuclear Regulatory Facility at Los Alamos
WHC was chosen for these showcase structures because their products are well designed and are constructed from strong, flexible, dielectric, non-corrosive, recycled and engineered plastic materials. These concrete products do not rust, do not absorb water, and avoid the chloride ion attack. The slab and beam bolster products can be snapped together easily, saving labor and material expenses. These building accessories are marketed by the company's sales force through distribution agreements with more than 150 distributors including Dayton Superior, Richmond Screw Anchor, and Meadow Steel Products. The concrete construction market for Rebar supports was approximately $27 billion in 1993 (Concrete Reinforcing Steel Institute).
Our second major product is plastic lumber. Plastic lumber sales in the United States are growing at 40% per year, topping 16 million board feet, or about 40 million pounds last year. That compares with 81.5 billion board feet of wood used in the United States in 1995 (National Lumber Building Material Dealers Assoc. In Washington, D.C.). The market is out there and new applications are being discovered each year. Some advantages of plastic lumber over wood are that it does not rot, crack, splinter, decompose, or degrade. Plastic lumber can withstand moisture and changes in temperature as well as attacks by insects such as termites. It is also impervious to salt water and marine infestations that will destroy wood, Plastic lumber can be drilled, nailed, sawed, and routed like wood and requires very little maintenance. It is available in a variety of colors and textures and needs no painting,
Our plastic signs are stronger and more durable than aluminum signs, are UV-stable, and will not sustain damage from the sun's rays. They are also unattractive to thieves who remove aluminum signs for salvage value. Also, they are easily patched, in the event of bullet holes and other damage.
The company's office supply products are the most recent addition to WHC's product line. Again all supplies are manufactured from recycled plastic. WHC has received approval by the General Service Administration (GSA) for their inclusion in its catalogue of products from which all government agencies may purchase from the GSA by simply placing an order. Competitive bidding is not required. Government buyers are encouraged to support environmentally safe products.
The company's sales and distribution activities are managed from its Kentucky and Florida locations. The company's Rebar supports are manufactured at a custom molding company in Lexington, Kentucky and are held in inventory at both locations on a consignment basis. The company produces plastic lumber and signage products on a contract basis according to the order's precise specifications fabricated at the Kentucky facility. In addition to equity capital, financing has been provided by a large loan advanced by the company's major supplier.
WHC has succeeded in establishing itself as one of the oldest companies in the emerging and expanding recycled plastics business. Now the company needs to build on its successful history and move to the next level by developing an aggressive marketing program. This program includes increasing inventory, additional working capital to support increasing sales, expanding our marketing initiative, and acquiring additional manufacturing equipment. This new financing would help secure an increase in sales, resulting from an increase in working capital, dramatically improving the net income. Since net loss carry forwards are available, this increase in income could be reinvested in the company and/or reduce debt as appropriate. These reasons mentioned here describe the need and benefits of new financing.
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